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Rules on Cause of Action (Rule 2)

1. Basis of Ordinary civil action - Sec. 1, Rule 2. “Every ordinary civil action must be based in a
cause of action”
2. What is Cause of Action – Sec. 2, Rule 2. “A cause of action is the act or omission by which a
party violates the right of another.”
a. Purpose: To establish the relevance of a cause of action only as to ordinary civil
action in obtaining redress for the violation of one’s right. Unlike in a special
proceeding where the party merely seeks to establish a right. Status or particular
fact and there is normally no violation of a right to speak of.
b. It is well-settled that the existence of a cause of action is determined by the
allegations in the complaint.
3. Elements of Cause of Actions
a. A right in favor of the plaintiff by whatever means and under whatever law it arises
or is created.
b. A correlative obligation on the part of the named defendant to respect or not to
violate such right; and
c. The act or omission of the defendant violates the right of the plaintiff. ---most
important element
4. Test of sufficiency of cause of action – “Whether or not admitting the facts alleged, the court
could render a valid judgment in accordance with the prayer of said complaint.
5. Nature of cause of action – it is formal statement of the operative facts that give rise to a
remedial right. As such, the failure to make a sufficient allegation of a cause of action in the
complaint warrants its dismissal.
6. The cause of action does not accrue until the party obligated refuses, expressly or impliedly,
to comply with its duty.
7. Sec. 3, Rule 2. “A party may not institute more than one suit for a single cause of action”.
8. Failure to state a cause of action vs. Lack of cause of action

Failure to state a cause of action Lack of cause of action

Motion to dismiss based on failure to state a cause
of action under Rule 16 is made “Within the time
for but before filing an answer.”
Failure to state a cause of action is determined
simply on the basis of the allegations in the
complaint of the plaintiff.
Failure to state a cause of action may still be
curable by an amendment of the pleading (Sec. 3,
Rule 16) as a matter of right before a responsive
pleading has been filed, even when a motion to
dismiss on such ground has been made by the
defendant, the same not being a “responsive
pleading” under the rules
If the motion to dismiss is denied the movant shall If a demurrer is denied, the defendant shall have the
be required to file his answer within the balance of right to present evidence.
the period to which he is entitled at the time such
motion was filed, but in no case shall be less than
five (5) days. (Sec. 4, Rule 16)
A demurrer is filed “after the plaintiff has completed
the presentation of his evidence/rested its case.”
Lack or insufficiency of cause of action is
predominantly based on the appreciation of evidence
The court may however require an amendment
during the presentation of evidence of the plaintiff, if
evidence that is not in issue is not objected to by
defendant, in which case the evidence is deemed
“impliedly admitted” so an amendment is not really
necessary to appreciate the evidence; or when an
objection was in fact made, but at the liberal
discretion of the court “if presentation of the merits
of the action and the ends of substantial justice will
be sub-served thereby.” (Sec. 5, Rule 10)
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If a motion to dismiss on the ground of failure to
state a cause of action has been granted, the
dismissal is without prejudice to the refilling of
action.
The ground of failure to state a cause of action
may be invoked in a motion to dismiss or as an
affirmative defense in the pleading (Sec. 6, Rule
16)
If a demurrer to evidence is granted, the dismissal is
with prejudice, as the same is considered a judgment
on the merits of the case, hence, the remedy of the
plaintiff is to appeal from such judgment.
Consequently, on appeal, if the judgment was
reversed, the defendant shall be deemed to have
waived his right to present his evidence
The ground of insufficiency of evidence may be
invoked in a motion for demurrer to evidence (Rule
33), in a motion for reconsideration (Rule 37) or in an
appeal memorandum.

9. Rule on Splitting of Cause of Action – Sec. 4, Rule2. “If two or more suits are instituted on
the basis of the same cause of action, the filing of one or a judgment upon the merits in any
one is available as aground for the dismissal of the others.
a. Splitting a cause of action – it is the act of dividing a single or indivisible cause of
action into several parts of the claims and instituting two or more actions upon
them.
10. Same evidence test
a. To determine identity of cause of action, it must be ascertained whether the same
evidence which is necessary to sustain the second cause of action would have been
sufficient to authorize a recovery in the first.
b. Whether the cause of action in the second case existed at the time of the filing of
the first complaint.
11. Effects of Splitting Cause of Action
a. In case a single cause of action was split into two or more cases, it will result in the
dismissal of the action on the ground of litis pendentia or bared by prior judgment
under Rule 16.
b. The defendant may file a motion to dismiss (Must be filed within the time for but
before the filing of the answer) on the ground of:
i. If the ground is still pending the ground is litis pendentia.
ii. Barred by prior judgment
iii. File an answer alleging as affirmative defense either both grounds and a
preliminary hearing may be had thereon as if a motion to dismiss was filed.
c. It may be dismissed motu propio by the court under Sec. 1, Rule 9.
12. When actions involving a common question of law or fact are pending before the court, it
may:
a. Order a joint hearing or trial of any or all the matters in issue in the actions
b. Order all the actions consolidated; and
c. It may make such orders concerning proceedings therein as may tend to avoid
unnecessary costs or delay.
13. Joinder of causes of actions – Sec. 5, Rule 2. A party may in one pleading assert, in the
alternative or otherwise, as many causes of action as he may have against an opposing
party, subject to the ffg. conditions:
a. The party joining the causes of action shall comply with the rules on joinder of
parties;
b. The joinder shall not include special civil actions or action governed by special rules;
c. Where the causes of action are between the same parties but pertain to different
venues or jurisdictions, the joinder may be allowed in the RTC, provided one of the
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cause of action falls within the jurisdiction of said court and the venue lies therein;
and
d. Where the claims in all the causes of action are principally for recovery of money,
the aggregate amount claimed shall be the test of jurisdiction. (TOTALITY RULE)
14. Rule on joinder of claims on small claims cases – Sec. 8 of the Rules on Procedure on Small
Claims. Plaintiff may join in a single statement of claim one or more separate small claims
against a defendant provided that the total amount claimed, exclusive of interest and cost
does not exceed Two Hundred Thousand Pesos (P200,000.)
15. Misjoinder of Causes of Action – Sec. 6, Rule 2. “Misjoinder of causes of action is not a
ground for dismissal of an action. A misjoined cause of action may on motion of a party or
on the initiative of the court, be severed and proceeded with separately.”
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Parties in General (Rule 3)

1. Who may be parties in a civil action?

a. Natural persons
b. Juridical persons
c. Entities authorized by law may be parties in a civil action
i. State or political subdivision
ii. Labor organization
iii. Partnerships by estoppel (Art. 1825, NCC)
iv. Corporation by estoppel (Sec. 21, Corpo Code)
v. Foreign Corporations (accdg to IP Code)
2. Who are included under the term “plaintiff”?
a. Claiming party
b. Counter-claimant
c. Cross-claimant
d. Third (fourth, etc.) party-plaintiff; or
e. It may also include plaintiff intervenor
3. Who are included under the term “defendant”?
a. Original defending party
b. Defendant in a counterclaim
c. Cross-defendant
d. Third, (fourth, etc.) party-defendant
4. Classification of parties in a civil action
a. Real parties in interest – is the party who stands to be benefited or injured by the
judgment in the suit, or the party entitled to the avails of the suit. (Sec. 2, Rule 3).
The party must have a real, actual, material or substantial interest in the subject
matter of the action.
b. Representative parties – where the action is allowed to be prosecuted or defended
by a representative or someone acting in a fiduciary capacity, the beneficiary shall
be included in the title of the case and shall be deemed to be the real party-in-
interest (Sec. 3, Rule 3)
c. Indispensable parties
d. Necessary parties
5. Real party-in-interest vs. Indispensable party vs Necessary party
Real party-in-interest Indispensable party Necessary party
is the party who stands to be Is a party without whom no One who is not
benefited or injured by the final determination can be had indispensable but who
judgment in the suit, or the of an action ought to be joined as a
party entitled to the avails of party if complete relief is
the suit. to be accorded as to
those already parties, or
for a complete
determination or
settlement of the claim
subject of the action.

6. Case brought not in the name of or against the real party in interest may be dismissed on the
ground of failure to state a cause of action. However, the dismissal on this ground entails an
examination of whether the parties presently pleaded are interested in the outcome of the
litigation, and not whether all persons interested in such outcome are actually pleaded.
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7. Two requirements of real parties-in-interest

a. To institute an action, the plaintiff must be real party-in-interest;
b. The action must be prosecuted in the name of the real party-in-interest
8. Purpose of the rule
a. To prevent the prosecution of actions by persons without any right, title or interest
in the case
b. To require that the actual party entitled to legal relief be the one to prosecute the
action
c. To avoid multiplicity of suits
d. Discourage litigation and keep it within certain bounds, pursuant to public policy
9. “Interest- means material interest, an interest in the issue and to be affected by the decree
or judgment of the case, as distinguished from mere curiosity about the question involved.”
10. Accordingly, the interest of a party assailing the constitutionality of a statute must be
directed and personal. Such party must be able to show, not only that the law or ay
government act is invalid, but also that he has sustained or is in imminent danger of
sustaining some direct injury as a result of its enforcement, and not merely that he suffers
thereby in some indefinite way.
11. Party-in-interest under Rule 45 must be the original aggrieved party in the case otherwise,
the one who has not been an original party in the main case has no personality to file a
petition under the said rule.
12. Who may file a civil action for the enforcement or violation of environmental laws?
a. Any real party-in-interest
b. Government
c. Juridical entities authorized by law
13. Class suit vs. Derivative Suit vs. Citizen Suit
Class suit Derivative Suit Citizen Suit
A class suit is filed regarding A derivative suit is a suit in A citizen suit is an action filed
a controversy of common or equity that is filed by a by any Filipino citizen in
general interest in behalf of minority shareholder in representation of others,
many persons so numerous behalf of a corporation to including minors or
that it is impracticable to join redress wrongs committed generations not yet born to
all parties, a number of against it, for which the enforce rights and
which the court finds directors refuse to sue, the obligations under
sufficiently representative real party-in-interest being environmental laws.
who may sue orr defend for the corporation itself.
the benefit of all. (Sec. 12,
Rule 3)
It is filed by sufficient It is filed by a minority It is filed by any Filipino
number of parties for the stockholder for and in behalf citizen.
benefit of all. of the corporation.

14. The real party-in-interest in a derivative suit is the corporation while the stockholder filing
the suit for the corporation’s behalf is only a nominal party, the corporation should
therefore be included as a party in the suit.
15. Remedy of the Defendant if He failed to File a Motion to Dismiss
Sec. 5, Rule 16. “Within ten days from service of summons, the defendant shall file
his answer to the complaint and serve a copy thereof on the plaintiff. Affirmative and
negative defenses not pleaded therein shall be deemed waived, except for lack of jurisdiction
over the subject matter”.
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16. Remedy of the plaintiff in case a motion to Dismiss was filed on the Ground of Failure to
State a Cause of Action – the plaintiff may amend the complaint as a matter of right before
the filing of a responsive pleading.
17. Remedy of the plaintiff in case of dismissal due to failure to State a Cause of Action – refiling
of the case since the nature of the dismissal of the action based on a complaint that states
no cause of action is without prejudice.
18. Who may act as a representative party?
a. A trustee of an express trust
b. Guardian
c. Executor or administrator
d. A party authorized by law or these Rules
e. An agent acting in his own name and for the benefit of an undisclosed principal may
sue or be sued without joining the principal except when the contract involves
things belonging to the principal
19. Who may file a Citizen Suit?
a. Any Filipino citizen in representation of others, including minors or generations yet
unborn, may file an action to enforce rights and obligations under environmental
laws.
20. Pro-forma parties – Sec. 4, Rule 3. “Husband and wife shall sue or be sued jointly, except as
provided by law.”
a. XN: 1. Action involving the exclusive party of the spouse, to wit:
i. Property brought to the marriage as his or her own
ii. That which each acquires during the marriage by gratuitous title
iii. That which is acquired by right of redemption, by barter or by exchange with
property belonging to only one of the spouses; and
iv. That which is purchased with exclusive money of the wife or of the husband
21. Minor or incompetent persons- Sec. 5, Rule 3 “A minor or a person alleged to be
incompetent, may sue or be sued with the assistant of his father, mother, guardian, or if he
has none, a guardian ad litem.”
22. When is permissive joinder allowed? Requirements. – Sec. 6, Rule 3 “All persons in whom or
against whom any right to relief in respect to or arising out of the same transaction or series
of transactions is alleged to exist whether jointly, severally, or in the alternative, may except
as otherwise provided in these Rules, join as plaintiffs or be joined as defendants in one
complaint subject to the following requirements:
a. Where any question of law or fact common to all such plaintiffs or to all such
defendants may arise in the action;
b. The court may make such orders as may be just to prevent any plaintiff or defendant
from being embarrassed or put to expense in connection with any proceedins in
which he may have no interest.”