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Pre-trial brief.

—The parties shall file with the court and serve on


the adverse party, in such manner as shall ensure their receipt
THE ROMAN CATHOLIC BISHOP OF JARO, plaintiff and thereof at least three (3) days before the date of the pre-trial,
appellee, vs. GREGORIO DE LA PEÑA, administrator of the their respective pre-trial briefs which shall contain, among
estate of Father Agustin de la Peña, defendant and others: x x x x Failure to file the pre-trial brief shall have the same
appellant. effect as failure to appear at the pre-trial. Contrary to the
1.TRUST FUNDS; LIABILITY OF TRUSTEE.—One who, having foregoing rules, petitioner and its counsel of record were not
in his possession trust funds, deposits them in his personal present at the scheduled pre-trial conference. Worse, they did
account in a bank and mixes them with his own funds, does not not file a pre-trial brief. Their non-appearance cannot be
thereby assume an obligation different from that under which he excused as Section 4, in relation to Section 6, allows only two
would have lain if such deposit had not been made; nor does he exceptions: (1) a valid excuse; and (2) appearance of a
thereby become liable to repay the money at all hazards; and representative on behalf of a party who is fully authorized in
where such funds are taken from the bank by fuerza mayor, he writing to enter into an amicable settlement, to submit to
is relieved from responsibility in relation thereto. alternative modes of dispute resolution, and to enter into
stipulations or admissions of facts and documents.
2.ID.; ID.; ENGLISH AND AMERICAN LAW OF TRUSTS NOT Contract of Deposit; Hotels and Inns; The contract of deposit
APPLICABLE.—That branch of the law, known in England and was perfected when the hotel guest handed over to the hotel’s
America as the law of trusts, has no counterpart in the Roman parking attendant the keys to his vehicle, which the latter
law and none under the Spanish aw. Roman Catholic Bishop of received with the obligation of safely keeping and returning it.—
Jaro vs. De la Peña., 26 Phil., 144, No. 6913 November 21, 1913 Article 1962, in relation to Article 1998, of the Civil Code defines
a contract of deposit and a necessary deposit made by persons
DURBAN APARTMENTS CORPORATION, doing business in hotels or inns: Art. 1962. A deposit is constituted from the
under the name and style of City Garden Hotel, petitioner, moment a person receives a thing belonging to another, with the
vs. PIONEER INSURANCE AND SURETY CORPORATION, obligation of safely keeping it and returning the same. If the
respondent. safekeeping of the thing delivered is not the principal purpose of
Appeals; Well-entrenched in jurisprudence is the rule that factual the contract, there is no deposit but some other contract. Art.
findings of the trial court, especially when affirmed by the 1998. The deposit of effects made by travelers in hotels or inns
appellate court, are accorded the highest degree of respect and shall also be regarded as necessary. The keepers of hotels or
are considered conclusive between the parties; Exceptions.— inns shall be responsible for them as depositaries, provided that
Well-entrenched in jurisprudence is the rule that factual findings notice was given to them, or to their employees, of the effects
of the trial court, especially when affirmed by the appellate court, brought by the guests and that, on the part of the latter, they take
are accorded the highest degree of respect and are considered the precautions which said hotel-keepers or their substitutes
conclusive between the parties. A review of such findings by this advised relative to the care and vigilance of their effects. Plainly,
Court is not warranted except upon a showing of highly from the
meritorious circumstances, such as: (1) when the findings of a 443
trial court are grounded entirely on speculation, surmises, or
conjectures; (2) when a lower court’s inference from its factual VOL. 639, JANUARY 12, 2011
findings is manifestly mistaken, absurd, or impossible; (3) when 443
there is grave abuse of discretion in the appreciation of facts; (4) Durban Apartments Corporation vs. Pioneer Insurance and
when the findings of the appellate court go beyond the issues of Surety Corporation
the case, or fail to notice certain relevant facts which, if properly facts found by the lower courts, the insured See deposited his
considered, will justify a different conclusion; (5) when there is a vehicle for safekeeping with petitioner, through the latter’s
misappreciation of facts; (6) when the findings of fact are employee, Justimbaste. In turn, Justimbaste issued a claim stub
conclusions without mention of the specific evidence on which to See. Thus, the contract of deposit was perfected from See’s
they are based, are premised on the absence of evidence, or delivery, when he handed over to Justimbaste the keys to his
are contradicted by evidence on record. None of the foregoing vehicle, which Justimbaste received with the obligation of safely
exceptions permitting a reversal of the assailed decision exists keeping and returning it. Ultimately, petitioner is liable for the
in this instance. loss of See’s vehicle.
Same; Same; Damages; Attorney’s fees may be awarded when
Pre-Trial; Appearance of parties and their counsel at the pre-trial a party is compelled to litigate or incur expenses to protect its
conference, along with the filing of a corresponding pre-trial interest, or when the court deems it just and equitable.—
brief, is mandatory, nay, their duty—their non-appearance Petitioner assails the lower courts’ award of attorney’s fees to
cannot be excused as Section 4, in relation to Section 6, allows respondent in the amount of P120,000.00. Petitioner claims that
only two exceptions: (1) a valid excuse; and (2) appearance of the award is not substantiated by the evidence on record. We
a representative on behalf of a party who is fully authorized in disagree. While it is a sound policy not to set a premium on the
writing to enter into an amicable settlement, to submit to right to litigate, we find that respondent is entitled to reasonable
alternative modes of dispute resolution, and to enter into attorney’s fees. Attorney’s fees may be awarded when a party is
stipulations or admissions of facts and documents.—Rule 18 of compelled to litigate or incur expenses to protect its interest, or
the Rules of Court leaves no room for equivocation; appearance when the court deems it just and equitable. In this case,
of parties and their counsel at the pre-trial conference, along petitioner refused to answer for the loss of See’s vehicle, which
with the filing of a corresponding pre-trial brief, is mandatory, was deposited with it for safekeeping. This refusal constrained
nay, their duty. Thus, Section 4 and Section 6 thereof provide: respondent, the insurer of See, and subrogated to the latter’s
SEC. 4. Appearance of parties.—It shall be the duty of the right, to litigate and incur expenses. However, we reduce the
parties and their counsel to appear at the pre-trial. The non- award of P120,000.00 to P60,000.00 in view of the simplicity of
appearance of a party may be excused only if a valid cause is the issues involved in this case.
shown therefor or if a representative shall appear in his behalf Durban Apartments Corporation vs. Pioneer Insurance and
fully authorized in writing to enter into an amicable settlement, Surety Corporation , 639 SCRA 441, G.R. No. 179419 January
to submit to alternative modes of dispute resolution, and to enter 12, 2011
into stipulations or admissions of facts and documents. SEC. 6.

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