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CIVIL PROCEDURE
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[12]
[13]
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after the approval of said loan which was intended for the
purchase of PUB bus trucks, Citiwide offered to supply it with
the equipment and had actually delivered 14 units of Chevrolet
trucks to the latter; that the amount of the equipment loan
acquired by Rassagi from FNCB is P1,960,000.00 which amount
was released and paid to Citiwide in payment of the fourteen
(14) units with a unit price of P140,000.00 including the body
building; that since the loan was already approved, there was no
necessity for the deed of assignment made by Citiwide in favor
of FNCB; that what FNCB did was to require Rassagi to sign blank
forms, which the latter understood to be documents
representing the obligation directly to the former and not to
Citiwide; that after Rassagi paid the amount of P61,877.31 as
amortization payments, it had requested FNCB to apply the
amount of P100,000.00 which was a hold back of the proceeds
of the loan which the latter favorably applied and now Rassagi
had actually paid P161,877.31 as total amortization payments
and that considering that the 14 buses could only possibly earn
the amount of P110.00 per unit a day and could not come up
with the P210.00 per unit a day equivalent to P20,625.77 a week
amortization, Rassagi requested for a restructuring of its
amortization payments from weekly amortizations to monthly
amortizations and a re-adjustment of the period of payment
from three (3) to five (5) years, but instead of re-adjusting the
same, FNCB after Rassagi failed to pay only one weekly
installment tried to collect the entire obligation and to pursue its
claim against the bonding company, so much so that it refused
to accept the payments made by Rassagi and it was for this
reason that the latter stopped its amortization payments.
Rassagi also alleged usury on the part of FNCB stating that after
realizing that the amount of its obligation was so excessive
considering that only P1,960,000.00 was actually released and
approved, it formally demanded a statement of account from
FNCB and that was the only time that defendant knew that its
entire obligation to said plaintiff is P3,003,231.12.
Defendants R & B and Towers filed their own answer, putting up
the same defenses made by Rassagi. They denied the
genuineness and due execution of the promissory note alleging
that Rassagi was made to sign only blank documents and that
the latter obtained a direct loan from FNCB but did not obtain
credit facilities from Citiwide; that FNCB had illegally and
usuriously charged Rassagi excessive interest upon the loan; and
that what the latter knows is that FNCB shall only charge an
interest of 14% per annum diminishing balance on the
P1,960,000.00 but that there was no agreement to pay three
years interest in advance and surcharges for late amortization
payments. Defendant sureties admitted that Rassagi had
accepted delivery of the fourteen (14) Chevrolet trucks
purchased out of the loan of P1,960,000.00:
On July 3, 1975, FNCB filed its reply and answer to the
counterclaim by defendants R & B and Towers.
When the case was caged for pre-trial, the counsel for Rassagi
moved that the pre-trial be postponed in order to enable the
parties to try to settle the case amicably. Upon inquiry by the
court as to the defense of Rassagi, the latter's counsel informed
the court that Rassagi does not deny its obligation as evidenced
by the promissory notes and that it would just approach FNCB
for the restructuring of said obligation. The counsel for the
defendant sureties likewise manifested that the latter are willing
to enter into a settlement and ready to assign collaterals in favor
of FNCB.
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admit the same was made prior to the termination of the pretrial.
After a careful consideration of the case, we find the
contentions of the petitioners impressed with merit. The instant
petition, therefore, should be granted.
While it is true that in their amended answer, petitioners sought
to alter their own admission in their original answer by alleging
that fourteen (14) Chevrolet trucks were not actually delivered
to Rassagi, such allegation did not really alter the theory of their
defense which is, that they are not liable to FNCB.
In their original answer, petitioners and defendant Rassagi
denied the fact that the latter obtained credit facilities from
Citiwide, they instead alleged that Rassagi obtained a direct loan
from FNCB. In essence, therefore, petitioners were already
raising the defense of non-liability not on the basis of nondelivery of the subject matter of the promissory notes but on
the basis of the fact that since Rassagi obtained a direct loan
from FNCB, there was no longer any need for Citiwide to extend
credit facilities in favor of Rassagi as the former was paid
immediately upon the release of the said loan. Thus, petitioners
as sureties can no longer be bound under the contract of surety
wherein they obligated themselves solidarily with Rassagi in
favor of Citiwide, in consideration of the credit facilities that the
latter was supposed to extend to defendant Rassagi.
In essence, therefore, there was no change in the theory of
herein petitioners when they tried to amend their answer by
stating that they were not liable to FNCB because the fourteen
(14) trucks which were the subject matter of the questioned
promissory notes were never delivered by Citiwide to Rassagi
although this defense was not present in their original answer
where the petitioners virtually adopted the allegations made by
Rassagi which however admitted the delivery of the
abovementioned trucks. Although as a general rule, facts alleged
in a party's pleading are deemed admissions of that party and
binding upon it, this is not an absolute and inflexible rule
because an answer is a mere statement of fact which the party
filing it expects to prove, but it is not evidence. (See Gardner v.
Court of Appeals, 131 SCRA 600).
Rule 34 of the Rules of Court authorizes the rendition of a
summary judgment when, on motion for the plaintiff after the
answer to the complaint has been filed, it would appear, during
the hearing of the motion for such judgment, from the
pleadings, depositions and admissions on file, together with the
affidavits that, except as to the amount of damages, "there is no
genuine issue as to any material fact and that the winning party
is entitled to a judgment as a matter of law." (Section 3, Rule 34,
Rules of Court). Conversely, the rendition of summary judgment
is not justified when the defending party tenders vital issues
which call for the presentation of evidence. (Guevarra v. Court
of Appeals, 124 SCRA 313).
It is evident from the records that the original answer filed by
the petitioners tendered a genuine issue and thus, the partial
summary judgment by the respondent court should not have
been rendered.
And, even assuming that the amendment altered the theory of
the defense, justice and equity still dictate that such amendment
be allowed for if the allegations therein are proven, then the
same would altogether negate liability on the part of the
petitioners, a fact which may no longer be ventilated should we
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AQUINO, J.:p
Keramik Industries, Inc. (Keramik for short), in this special civil
action for certiorari, seeks to annul the order dated May 31,
1974 of the Court of First Instance of Rizal, Pasig Branch XXIV,
denying its motion to file an amended complaint in Civil Case
No. 16540. The certiorari action is based on the following salient
allegations of the petition and its annexes:
On October 7, 1964, Keramik obtained a loan of two million four
hundred thousand pesos (P2,400,000) from the Government
Service Insurance System (GSIS). As security, it mortgaged to the
GSIS certain lands, buildings, machineries and equipment used in
its ceramic business.
After Keramik's default, the GSIS extrajudicially foreclosed the
real and chattel mortgages. The mortgaged properties were sold
at public auction on March 2, 1971 to satisfy the claim of the
GSIS amounting to P3,461,138.09. The GSIS, as the highest
bidder, bought them for P5,129,145.
On August 17, 1972 Keramik sued the GSIS. It asked for the
nullification of the extrajudicial foreclosure due to supposed
irregularities. In the alternative, it prayed that the GSIS be
ordered to pay to it the sum of P1,668,006.91 which amount
allegedly constitutes the difference between the GSIS bid of
P5,129,145 at the foreclosure sale and the actual mortgage debt
of P3,461,138.09. Other minor reliefs were sought. The GSIS
answered the complaint. No pre-trial has as yet been held.
On March 26, 1974 Keramik filed a motion for the admission of
its amended complaint. The amendment refers to the insurance
in the sum of P2,400,000 which Keramik had allegedly secured
from the GSIS for the mortgaged buildings, machineries and
equipment. The insurance was an additional security for the
loan. Keramik alleged that through inadvertence it failed to
mention in its original complaint the insurance and the
circumstance that the typhoon Yoling totally damaged the
insured properties. Its alternative contention was that the
proceeds of the insurance and the excess premiums paid should
be deducted from its indebtedness because the GSIS was in
effect both the insurer and the insured.
The GSIS opposed the admission of the amended complaint on
the ground that the amendment altered the plaintiff's causes of
action by supposedly injecting "new, distinct and entirely foreign
causes of action".
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The lower court, in its minute order dated May 31, 1974,
sustained the opposition and denied the admission of the
amended complaint.
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The bank was indeed grossly negligent when it allowed the sum
of P220,000.00 to be withdrawn through falsified withdrawal
slips without petitioners authority and knowledge and its failure
to comply with petitioners instruction to apply their deposits on
their loan. In so doing, respondent bank breached the trust that
petitioners reposed on it.
We agree in the findings of the two courts below that the
unauthorized transactions were committed by one or some of
the employees of respondent bank for which it should be liable.
The evidence showed that respondent did not exercise the
degree of diligence it ought to have exercised in dealing with its
clients -- diligence higher than that of a good father of a family.
If only respondent exercised such diligence, no anomaly or
irregularity would have happened.
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February 3, 2000
ASSET
PRIVATIZATION
TRUST, petitioner,
vs.
COURT OF APPEALS, HON. JESUS F. GUERRERO, Judge of the
Regional Trial Court of Makati, Branch 148, STA. INES MELALE
FOREST PRODUCTS CORPORATION, RODOLFO M. CUENCA and
MANUEL I. TINIO,respondents.
PURISIMA, J.:
May the proscription against multiplicity of suits be properly
invoked to allow the filing of a supplemental complaint involving
basically the same parties as those in the original complaint but
with a cause of action arising from a transaction distinct from
that sued upon in the original complaint? This is the issue posed
in the present petition for review on certiorari of the Decision of
the Court of Appeals.
At the outset, it should be clarified that the Development Bank
of the Philippines (DBP), not the Asset Privatization Trust (APT),
was the original petitioner in the case. APT was first impleaded
1
as a party-respondent in the Resolution of August 14, 1989 on
account of the fact that respondent Sta. Ines Melale Forest
Products Corporation (SIM) "has been taken over" by the APT.
However, in its reply to the manifestation and comment of APT,
the DBP asserted that the transfer of SIM's rights and interests
to the APT cannot be valid ground for the dismissal of the
petition because the said transfer was effected pendente lite.
The case could prosper only if the Court would direct "APT, as
transferee (of SIM's interests), to be substituted in the action or
joined with petitioner" in accordance with Sec. 20, Rule 3 of the
2
Rules of Court. Thus, pursuant to the said rule, in the Resolution
3
of March 26, 1990, the Court ordered that the DBP "be
4
substituted" as party-petitioner in this case by APT.
The petition originated from a transaction between the DBP and
Galleon Shipping Corporation sometime in 1979. Galleon
obtained several "foreign loan guarantee accommodations"
from DBP in the total amount of US$87.233 Million for the
acquisition of five (5) brand-new vessels and to finance twenty
percent (20%) of the acquisition cost of two (2) second-hand
vessels. To secure payment thereof, Galleon mortgaged the
vessels to DBP. Named joint and solidary debtors with Galleon in
such transaction were SIM, Rodolfo M. Cuenca and Manuel I.
Tinio. Due to Galleon's default in the payment of its obligations,
DBP had to "make good its guarantees to Galleon's foreign
creditors." In June 1984, DBP forclosed the mortgage but the
proceeds of the auction sales conducted after the extrajudicial
foreclosure of the mortgage on the vessels, yielded a deficiency
5
in the amount of P2,700,960,412.60.
Apparently in anticipation of DBP's claim for the said deficiency,
private respondents SIM, Cuenca and Tinio lodged a complaint
against DBP, National Development Corporation (NDC) and
Galleon (which had become the National Galleon Shipping
Corporation (NGSC) before Branch 148 of the Regional Trial
Court of Makati, alleging that under Letter of Instruction No.
1155, July 21, 1981, the then President of the Philippines
directed NDC to take over the ownership and operation of
Galleon. In compliance with such directive, on August 10, 1981
Galleon, represented Cuenca, entered into a Memorandum of
Agreement with NDC whereby the latter acquired 100% of
Galleon's equity. However, without paying a single centavo in
accordance with the "share purchase agreement," NDC took
over absolute ownership of Galleon but mismanaged its
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The DBP questioned the said Order before the Court of Appeals
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via a petition for certiorari dated November 19, 1985.
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VII
The only instrument signed by the plaintiff SIM in favor
of the defendant DBP is a mortgage dated November
8, 1984, which does not provide extrajudicial and
forcible taking over of the mortgaged properties by
defendant DBP, a copy of which is hereto attached as
Annex "C" and made an integral part hereof;
VIII
The forcible and extrajudicial taking over possession of
the Magallanes plant of the plaintiff SIM is null and
void ab initio and unlawful, considering inter alia:
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