Rule 73 Venue and Process Digests

8/20/2019 Rule 73 Venue and Process Digests

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(11)PACIFIC BANKING CORP EMPLOYEES ORG AND PAULA PAUG V. COURT OF APPEALSAND VITALIANO NANAGAS as liquia!"# "$ PACIFIC BANKING CORP% &'& SCRA '&(1) G.R. N". 1*+,+. Ma#- &,% 1/PRESIDENT OF PDIC as liquia!"# "$ PACIFIC BANKING CORP V. CA% 0ON. REGINOVERIDIANO% DEPUTY S0ERIFF RAMON ENRIUE2 AND ANG ENG34OO% ANG KEONG

LAN AND E.4. ANG INTL LTD #56#5s57!5 89 a!!"#759 i7 $a-! GON2ALO SY G.R. N".11&1. Ma#- &,% 1/2ND DIVISION: CJ Narvasa, Bidin, Regalado, Puno, concurringPONENTE: J. endo!a

"##$. Po#enciano ". %lores, Jr. &or 'e#i#ioner in (.R. )*+-.Puruganan Ca#o Tan / (eroni0o &or 'e#i#ioner in (.R. ))2++).Balane Ta0ase "la0'a$ 1a O3ce &or PDIC.iguel . (on!ales and Nor4er#o 1. ar#ine! &or res'onden# 1and Ban5 o& #e Pils.

NATURE: Pe#i#ion &or revie on Cer#iorari under Rule 67

FACTS: Paci8c Ban5ing Cor' 9PaBC as 'laced under receiversi' 4$ #e Cen#ral Ban5'ursuan# #o resolu#ion o& #e one#ar$ Board. " &e 0on#s la#er, i# as 'laced underli;uida#ion and a li;uida#or as a''oin#ed.

). In "'ril )+in#erven#ion see5ing 'a$0en# o& olida$ 'a$ )# 0on# 'a$ di?eren#ial, and o#er4ene8#s. Te RTC ordered #e 'a$0en# o& #e 'rinci'al clai0s o& #e =nion in Se'#), )++)

@. Aen #e li;uida#or received a co'$ o& #e order on Se'# )6, )++), e 8led a o#ion&or Reconsidera#ion and Clari8ca#ion o& #e Order. In In is order da#ed Dec 6, )++),#e udge 0odi8ed is Se'# ) order 4u# in e?ec# denied #e R. Tis order asreceived 4$ #e li;uida#or on Dec +, )++) and #e ne# da$, e 8led a no#ice o& a''eal and 0o#ion &or addi#ional #i0e #o su40i# record on a''eal. On Dece04er 2,)++), ano#er no#ice o& a''eal as 8led 4$ OS( in 4eal& o& Nanagas

7. Res'onden# udge disalloed #e li;uida#ors no#ice o& a''eal on #e ground i# as8led la#e 90ore #an )7 da$s aer recei'# o& decision. Te udge declared is Se'#) order and su4se;uen# orders #o 4e 8nal and eecu#or$ and denied reconsidera#ion

6. Priva#e res'onden#s "ng eong e# al, 8led clai0s &or #e 'a$0en# o& inves#0en# inPaBC, alleging #a# #eir clai0 cons#i#u#ed &oreign ecange ca'i#al inves#0en#en#i#led #o 're&erence o& 'a$0en# under %oreign Inves#0en#s 1a. Res'onden#

udged gran#ed #e 'e#i#ion da#ed Se'# )), )++2-. Te li;uida#or received #e order on Se'# )6, )++2. On Se'# *, e 8led an R 4u#

#e sa0e as denied. Te li;uida#or 8led a no#ice o& a''eal &ro0 #e orders o& Se'#)6, 4u# #e udge ordered #e no#ice o& a''eal 4e s#ric5en o? #e records &or aving4een 8led i#ou# #e au#ori#$ o& #e Cen#ral Ban5 and 4e$ond )7 da$s


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R=1IN(: Ges.

RATIO: "c#ion is #e ac# 4$ ic one sues ano#er in a cour# o& us#ice &or #e en&orce0en#or 'ro#ec#ion o& a rig#, or #e 'reven#ion or redress o& a rong ile s'ecial 'roceeding is#e ac# 4$ ic one see5s #o es#a4lis #e s#a#us or rig# o& a 'ar#$, or a 'ar#icular &ac#.

Aere a 'ar#$ li#igan# see5s #o recover 'ro'er#$ &ro0 ano#er, is re0ed$ is #o 8le an ac#ion.Aere is 'ur'ose is #o see5 #e a''oin#0en# o& a guardian &or an insane, is re0ed$ is as'ecial 'roceeding #o es#a4lis #e &ac# or s#a#us o& insani#$ calling &or an a''oin#0en# o& guardiansi'.

" li;uida#ion 'roceeding rese04les #e 'roceeding &or #e se##le0en# o& #e es#a#e o& deceased 'ersons under Rules - #o +) ROC. Te #o ave a co00on 'ur'ose: #ede#er0ina#ion o& all #e asse#s and #e 'a$0en# o& all de4#s and lia4ili#ies o& #e insolven#cor'ora#ion or #e es#a#e. Te li;uida#or and ad0inis#ra#or or eecu#or are 4o# carged i##e asse#s &or #e 4ene8# o& #e clai0an#s. In 4o# ins#ances, #e lia4ili#$ o& #e cor'ora#ionand #e es#a#e is no# dis'u#ed. Te cour#s concern is i# #e declara#ion o& credi#ors and#eir rig#s and #e de#er0ina#ion o& #eir order o& 'a$0en#.

%ur#er0ore, as in #e se##le0en# o& es#a#es, 0ul#i'le a''eals are alloed in 'roceedings &orli;uida#ion o& an insolven# cor'ora#ion.

" 'e#i#ion &or li;uida#ion o& an insolven# cor'ora#ion sould 4e classi8ed as a s'ecial'roceeding and no# an ordinar$ ac#ion. Suc 'e#i#ion does no# see5 #e en&orce0en# or'ro#ec#ion o& a rig# nor #e 'reven#ion or redress o& a rong agains# a 'ar#$. I# does no#'ra$ &or a3r0a#ive relie& &or inur$ arising &ro0 a 'ar#$s rong&ul ac# or o0ission nor s#a#ea cause o& ac#ion #a# can 4e en&orced agains# an$ 'erson.

Aa# i# see5s is 0erel$ a declara#ion 4$ #e #rial cour# o& #e cor'ora#ions insolvenc$ so#a# i#s credi#ors 0a$ 4e a4le #o 8le #eir clai0s in #e se##le0en# o& #e cor'ora#ions de4#sand o4liga#ions.

1i;uida#ion 'roceedings do no# rese04le 'e#i#ions &or in#er'leader. "n ac#ion &or in#er'leaderinvolves clai0s on a su4ec# 0a##er agains# a 'erson o as no in#eres# #erein. Tis is no##e case in a li;uida#ion 'roceeding ere #e li;uida#or, as re'resen#a#ive o& #ecor'ora#ion, #a5es carge o& #e asse#s and lia4ili#ies o& #e cor'ora#ion &or #e 4ene8# o& #ecredi#ors.

" li;uida#ion 'roceeding is a single 'roceeding ic consis#s o& a nu04er cases 'ro'erl$classi8ed as clai0s. I# is 4asicall$ a #o>'ased 'roceeding. Te 8rs# 'ase is concernedi# #e a''roval and disa''roval o& clai0s. ='on #e a''roval o& #e 'e#i#ion see5ing #eassis#ance o& #e 'ro'er cour# in #e li;uida#ion o& a close en#i#$, all 0one$ clai0s agains##e 4an5 are re;uired #o 4e 8led i# #e li;uida#ion cour#. Tis 'ase 0a$ end i# #edeclara#ion 4$ #e li;uida#ion cour# #a# #e clai0 is no# 'ro'er and i#ou# 4asis. On #eo#er and, i# 0a$ also end i# #e li;uida#ion cour# alloing #e clai0. In #e la##er case,#e clai0 sall 4e classi8ed e#er i# is ordinar$ or 're&erred, and #ereaer included

li;uida#or. In ei#er case, #e order alloing or disalloing a 'ar#icular clai0 is 8nal order,and 0a$ 4e a''ealed 4$ #e 'ar#$ aggrieved #ere4$. Te second 'ase involves #ea''roval 4$ #e cour# o& #e dis#ri4u#ion 'lan 're'ared 4$ #e li;uida#or. Te dis#ri4u#ion'lan s'eci8es in de#ail #e #o#al a0oun# availa4le &or dis#ri4u#ion #o credi#ors ose clai0ere earlier alloed.

C"B: In #e case o& #e s#oc5oldersFinves#ors, #e li;uida#ors no#ice o& a''eal as 8led on#i0e, aving 4een 8led on #e 2rd da$ o& recei'# o& #e order gran#ing #e clai0s o& #es#oc5oldersFinves#ors. Hoever, #e li;uida#or did no# 8le a record on a''eal and as a


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resul#, e &ailed #o 'er&ec# is a''eal. " record on a''eal is re;uired under #e In#eri0 Rulesand (uidelines in s'ecial 'roceedings and &or cases ere 0ul#i'le a''eals are alloed. Tereason &or #is is #a# #e several clai0s are ac#uall$ se'ara#e ones and #e decision or 8nalorder i# res'ec# #o an$ clai0 can 4e a''ealed. Necessaril$, #e original record on a''eal0us# re0ain in #e #rial cour# ere o#er clai0s 0a$ s#ill 4e 'ending. Because o& #eli;uida#ors &ailure #o 'er&ec# is a''eal, #e order gran#ing #e clai0s o& #e

s#oc5oldersFinves#ors 4eca0e 8nal. C"s decision dis0issing #e li;uida#ors 'e#i#ion &orcer#iorari 0us# 4e a3r0ed 4u# &or a di?eren# reason.

In #e case o& #e =nion, #e C" 7# division correc#l$ gran#ed #e li;uida#ors 'e#i#ion &orcer#iorari. Te li;uida#or 8led a no#ice o& a''eal and 0o#ion &or e#ension #o 8le a record ona''eal on Dec )*, )++), i#in * da$s &ro0 recei'# o& #e order gran#ing #e =nions clai0.Ai#ou# ai#ing &or #e resolu#ion o& #e 0o#ion &or e#ension, e 8led on Dec 2*, )++)i#in #e e#ension soug# a record on a''eal.

DISPOSITIVE: Pe#i#ioners O0ni4us o#ion is denied &or lac5 o& 0eri#. ani&es#a#ions da#eda$ 2*, )++6 and Oc# -, )++6 4$ 1and Ban5 are no#ed.

). REEDI"1 1"A EVIDENCE B=RDEN O% PROO% IN CIVI1 C"SES C"SE "T B"R. Incivil cases, #e 4urden o& 'roo& is on #e 'ar#$ o ould 4e de&ea#ed i& no evidence is givenon ei#er side. Plain#i? 0us# #ere&ore es#a4lis is case 4$ a 're'onderance o& evidence,i.e., evidence as a ole ic is su'erior #o #a# o& #e de&endan#. In o#er ords, #e 'ar#$o alleges a &ac# as #e 4urden o& 'roving i#. In #is case, 'e#i#ioner, as #e 'ar#$ clai0inga3r0a#ive relie& &ro0 #is Cour# 4$ con#ending #a# ad 8led a record on a''eal in #e #rialcour#, 0us# discarge #e 4urden o& convincingl$ 'roving is clai0.

2. ID. ID. PRES=PTIONS (OOD %"ITH PRES=ED "BSENT TO THE CONTR"RG. (ood&ai# is 'resu0ed and #e co0'lainan# as #e 4urden o& 'roving an$ rongdoing. Pe#i#ionersi0'l$ &ailed #o 'rove #a# #e 4ranc cler5 ei#er su''ressed #e record on a''eal allegedl$8led 4$ 'e#i#ioner in #e #rial cour#, or #a# e as guil#$ o& rongdoing in cer#i&$ing #a#'e#i#ioner did no# 8le #e said record. Te Cour# canno# 8nd #e 4ranc cler5 guil#$ o& an$rongdoing in cer#i&$ing #a# 'e#i#ioner &ailed #o 8le a record on a''eal in #e #rial cour# in#e &ace o& 'e#i#ionerKs &ailure #o adduce convincing 'roo& #a# suc a record as in &ac# 8led#erein.

SYNOPSIS: On arc 2*, )++7, #e Cour# rendered a decision olding #a# a 'e#i#ion &orli;uida#ion under Sec 2+ o& #e Cen#ral Ban5 "c#, R.". No. 267, is a s'ecial 'roceeding and,#ere&ore, #e rules 'rescri4ing a 'eriod o& * da$s &or a''ealing and re;uiring a record ona''eal a''l$. "ccordingl$, #e a''eal in (.R. No. )*+- as eld #o ave 4een dul$'er&ec#ed 4u# #e a''eal in (.R. No. ))2++) ad no# 4een 'er&ec#ed 4ecause o& 'e#i#ionerKs&ailure #o 8le a record on a''eal. Hoever, 'e#i#ioner insis#s #a# e 8led a record on a''eal."s 'roo&, e 'resen#s a 'o#oco'$ o& #e record on a''eal allegedl$ received 4$ #e 4ranccler5 o& #e #rial cour# 4earing #e andri##en LReceived, )*>)7>+2, :@7 PL and #ealleged ini#ials o& #e said cler5. He e'lained #a# #e #rial cour# does no# use a s#a0'LRECEIVED,L 4u# recei'# o& 'leadings is ac5noledged si0'l$ 4$ no#ing #is &ac# 4$ and. On#e o#er and, #e 4ranc cler5 o& cour# 0ain#ains #a# no record on a''eal as 8led and

#ere&ore none could 4e &ound in #e e'edien#e. He clai0s #a# #e record on a''ealallegedl$ 8led in #e #rial cour# could no# ave 4een unla&ull$ re0oved &ro0 #e records4ecause all 'leadings received 4$ #e cour# are i00edia#el$ a##aced #o #e records. Hedenies #a# #e signa#ure a''earing on #e alleged record on a''eal as is. Aen re&erred#o #e O3ce o& #e Cour# "d0inis#ra#or &or inves#iga#ion and reco00enda#ion, #e saido3ce &ound #a# indeed, #ere as no Record on "''eal ac#uall$ 8led.

Pe#i#ioner, as #e 'ar#$ clai0ing a3r0a#ive relie& &ro0 #is Cour# 4$ con#ending #a# e ad8led a record on a''eal in #e #rial cour#, 0us# discarge #e 4urden o& convincingl$ 'roving


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is clai0. "s &ound 4$ #e OC", oever, #e evidence o& #e res'onden#s even ou#eigs#a# o& 'e#i#ioner. Priva#e res'onden#s 'resen#ed 'roo& ic are a3r0a#ive, une;uivocal,convincing and consis#en# #a# no record on a''eal ad 4een 8led. Pe#i#ioner no# onl$ &ailed#o 'resen# #e PDIC e0'lo$ee o allegedl$ 8led #e record on a''eal in #e #rial cour# 4u#0ore i0'or#an#l$, e &ailed #o 'rove #a# au#en#ici#$ o& #e alleged signa#ure o& #e 4ranccler5 a''earing in is co'$ o& #e record on a''eal.

(1&)ANGEL T. LIM4OCO V. INTESTATE ESTATE OF PEDRO O. FRAGRANTE% /* P0IL ,,;(1'/)(.R. NO 1>--*. "'ril 2-, )+@<EN B"NC: Paras, Pa4lo, Beng!on, Briones, Padilla, Tuason, %eria, Per&ec#o 9dissen#ing

PONENTE: J. Hilado

Counsel &or 'e#i#ioner: "ngel 1i0oco Jr. and Del8n 1. (on!alesCounsel &or res'onden#: Bienvenido ". Tan

NATURE: Pe#i#ion &or revie on 'ure ;ues#ions o& la


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FACTS: In i#s decision da#ed a$ 2), )+@6, #e Pu4lic Service Co00ission 9PSC au#ori!ingPedro O. %ragran#e #e o'era#ion and 0ain#enance o& ano#er ice 'lan# o& 2 M #ons in San

Juan, Ri!al and #a# Pedro %ragran#e as a %ili'ino a# #e #i0e o& is dea#). Te a''lica#ion as o''osed 4$ 'e#i#ioner "ngel 1i0oco 4u# as overruled 4$ PSC. I#

eld #a# under Sec )7 C" no )@6, a cer#i8ca#e o& 'u4lic convenience 4e issued #o #ein#es#a#e es#a#e o& #e deceased au#ori!ing #e es#a#e o& #e deceased %ragran#e

#roug i#s s'ecial or udicial ad0inis#ra#or, # 0ain#ain and o'era#e an ice 'lan# inSan Juan, andalu$ong and ue!on Ci#$2. 1i0oco raised #e &olloing errors:

a. Te decision o& PSC is no# in accordance i# la4. Te decision o& PSC is no# reasona4l$ su''or#ed 4$ evidencec. PSC erred in no# giving 1i0oco and #e Icea and Cold S#orage Indus#ries o& #e

Pils. Inc, as eis#ing o'era#ors, a reasona4l$ o''or#uni#$ #o 0ee# #e increasedde0and

d. Te PSC deision is an unarran#ed de'ar#ure &ro0 i#s announced 'olic$ i#res'ec# #o #e es#a4lis0en# and o'era#ion o& ice 'lan#

. Pe#i#ioner con#ends i# as an error on #e 'ar# o& PSC #o allo #e su4s#i#u#ion o& #elegal re'resen#a#ive o& #e es#a#e o& Pedro %ragran#e &or #e la##er as 'ar#$ a''lican#in #e case #en 'ending 4e&ore #e PSC, and in su4se;uen#l$ gran#ing #o said es#a#e#e cer#i8ca#e a''lied &or

ISSUE: AON #e PSC erred in gran#ing #e a''lica#ion &or cer#i8ca#e o& 'u4lic convenience

R=1IN(: No.

RATIO: Te a&oresaid rig# o& Pedro %ragran#e #o 'rosecu#ion said a''lica#ion #o i#s 8nalconclusion as one ic 4$ i#s na#ure did no# la'se #roug is dea#. Hence, i# cons#i#u#esa 'ar# o& #e asse#s o& #e es#a#e, &or suc a rig# as 'ro'er#$ des'i#e #e 'ossi4ili#$ #a# in#e end #e co00ission 0ig# ave denied #e a''lica#ion, al#oug under #e &ac#s o& #ecase, PSC gran#ed #e a''lica#ion in vie o& #e 8nancial a4ili#$ o& #e es#a#e #o 0ain#ainand o'era#e #e ice 'lan#. Suc cer#i8ca#e ould cer#ainl$ 4e 'ro'er#$, and #e rig# #oac;uire suc a cer#i8ca#e, 4$ co0'l$ing i# #e re;uisi#es o& #e la, 4elonged #o #edeceden# in is li&e#i0e, and survived #o is es#a#e and udicial ad0inis#ra#or aer is dea#.

Rule


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i#ou# #e cons#i#u#ional guaran#ee agains# 4eing de'rived o& 'ro'er#$ i#ou# due 'rocesso& la, or #e i00uni#$ &ro0 unreasona4le searces and sei!ures. I# as #e in#end0en# o& #e &ra0ers #o include ar#i8cial or uridical, no less #an na#ural, 'ersons, in #esecons#i#u#ional i00uni#ies and o#ers o& si0ilar na#ure. "0ong #ese ar#i8cial or udicial'ersons 8gure es#a#es o& deceased 'ersons. Hence, i#in #e &ra0eor5 o& #eCons#i#u#ion, #e es#a#e o& Pedro %ragran#e sould 4e considered an ar#i8cial or uridical

'erson &or #e 'ur'oses o& #e se##le0en# and dis#ri4u#ion o& #e es#a#e ic, include #eeercise during #e udicial ad0inis#ra#ion #ereo& o& #ose rig#s and &ul8ll0en# o& #oseo4liga#ions o& is ic survived aer is dea#.

I# as 4een #e cons#an# doc#rine #a# i# is #e es#a#e or #e 0ass o& 'ro'er#$, rig#s andasse#s le 4$ #e deceden#, ins#ead o& #e eirs direc#l$, #a# 4eco0es ves#ed and cargei# is rig#s and o4liga#ions ic survive aer is de0ise.

ISSUE: AON #e es#a#e o& Pedro %ragran#e is a %ili'ino ci#i!en

R=1IN(: Ges.

RATIO: I& 4$ legal 8c#ion is 'ersonali#$ is considered e#ended so #a# an$ de4#s oro4liga#ions le 4$, and surviving i0, 0a$ 4e 'aid, and an$ surviving rig#s 0a$ 4eeercised &or #e 4ene8# o& is credi#ors and eirs, #ere is no sound and cogen# reason &orden$ing #e a''lica#ion o& #e sea0 8c#ion #o is ci#i!ensi', and &or no# considering i# asli5eise e#ended &or #e 'ur'oses o& #e un8nised 'roceeding 4e&ore PSC.

Te 8c#ion is 0ade necessar$ #o avoid #e inus#ice o& su4ec# is es#a#e, credi#ors and eirs,solel$ 4$ reason o& is dea#, #o #e loss o& #e inves#0en# a0oun#ing #o P7,***, ic ead alread$ 0ade in #e ice 'lan#, no# coun#ing o#er e'enses occasioned 4$ #e ins#an#'roceeding.

4. PERFECTO% DISSENTING:Co00oneal# "c# no )@6 reserves #e rig# #o %ili'ino ci#i!ens #e rig# #o o4#ain acer#i8ca#e o& 'u4lic convenience #o o'era#e an ice 'lan# in San Juan, Ri!al. Te li0i#a#ion isin accordance i# Sec < "r# QIV o& #e )+7 Cons#i#u#ion.

Te 0ain ;ues#ion in #is case is e#er #e es#a#e o& Pedro %ragran#e &ul8lls #e ci#i!ensi're;uire0en#. Te ;ues#ion can 4e res#a#ed 4$ as5ing e#er #e eirs o& Pedro %ragran#e&ul8ll #e ci#i!ensi' re;uire0en# o& #e la.

Te es#a#e is an a4s#rac# en#i#$. "s suc, i#s value de'ends on a# i# re'resen#s. Tere isno#ing in #e record #o so conclusivel$ #e ci#i!ensi' o& #e eirs o& %ragran#e. I& #e$are %ili'ino ci#i!ens, #e ac#ion #a5en 4$ PSC sould 4e a3r0ed. I& #e$ are no#, i# sould 4ereversed.

Pe#i#ioner alleges #a# #e es#a#e is us# a &ron# or du00$ &or aliens #o go around #eci#i!ensi' cons#i#u#ional 'rovision. I# is alleged #a# (a Su$ #e s'ecial ad0inis#ra#or o& #e es#a#e, is an alien. Te ci#i!ensi' o& #e eirs o& %ragran#e sould 4e de#er0ined 4$ PSC

u'on evidence #a# #e 'ar#$ sould 'resen#. I# sould also de#er0ine #e du00$ ;ues#ionraised 4$ 1i0oco.

). P=B1IC SERVICE COISSION CERTI%IC"TE O% P=B1IC CONVENIENCE RI(HT O%EST"TE O% DECEDENT TO PROSEC=TE "PP1IC"TION C"SE "T B"R. I& P. O. %. ad no# died,#ere can 4e no ;ues#ion #a# e ould ave ad #e rig# #o 'rosecu#e is a''lica#ion &or acer#i8ca#e o& 'u4lic convenience #o i#s 8nal conclusion. No one ould ave denied i0 #a#rig#. "s declared 4$ #e co00ission in i#s decision, e ad inves#ed in #e ice 'lan# in;ues#ion P7,***, and &ro0 a# #e co00ission said regarding is o#er 'ro'er#ies and


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4usiness, e ould cer#ainl$ ave 4een 8nanciall$ a4le #o 0ain#ain and o'era#e said 'lan#ad e no# died. His #rans'or#a#ion 4usiness alone as ne##ing i0 a4ou# P),@@* 0on#l$.He as a %ili'ino ci#i!en and con#inued #o 4e suc #ill is de0ise. Te co00ission declaredin i#s decision, in vie o& #e evidence 4e&ore i#, #a# is es#a#e as 8nanciall$ a4le #o0ain#ain and o'era#e #e ice 'lan#. Te a&oresaid lig# o& P. O. %. #o 'rosecu#e saida''lica#ion #o i#s 8nal conclusion as one ic 4$ i#s na#ure did no# la'se #roug is

dea#. Hence, i# cons#i#u#es a 'ar# o& #e asse#s o& is es#a#e, &or suc a rig# as 'ro'er#$des'i#e #e 'ossi4ili#$ #a# in #e end #e co00ission 0ig# ave denied #e a''lica#ion,al#oug under #e &ac#s o& #e case, #e co00ission gran#ed #e a''lica#ion in vie o& #e8nancial a4ili#$ o& #e es#a#e #o 0ain#ain and o'era#e #e ice 'lan#. Pe#i#ioner, in is0e0orandu0 o& arc )+, )+@-, ad0i#s 9'. #a# a cer#i8ca#e o& 'u4lic convenience oncegran#ed Las a rule, sould descend #o is es#a#e as an asse#.L Suc cer#i8ca#e ouldcer#ainl$ 4e 'ro'er#$, and #e rig# #o ac;uire suc a cer#i8ca#e, 4$ co0'l$ing i# #ere;uisi#es o& #e la, 4elonged #o #e deceden# in is li&e#i0e, and survived #o is es#a#e and

udicial ad0inis#ra#or aer is dea#.

2. ID. ID. ID. EST"TE O% DECEDENT, " PERSON C"SE "T B"R. Ai#in #e 'iloso'$o& #e 'resen# legal s$s#e0 and i#in #e &ra0eor5 o& #e cons#i#u#ion, #e es#a#e o& P. O.%. sould 4e considered an ar#i8cial or uridical 'erson &or #e 'ur'oses o& #e se##le0en# anddis#ri4u#ion o& is es#a#e ic, o& course, include #e eercise during #e udicialad0inis#ra#ion #ereo& o& #ose rig#s and #e &ul8ll0en# o& #ose o4liga#ions o& is icsurvived aer is dea#. One o& #ose rig#s as #e one involved in is 'ending a''lica#ion4e&ore #e Pu4lic Service Co00ission in #e ins#an# case, consis#ing in #e 'rosecu#ion o& said a''lica#ion #o i#s 8nal conclusion. "n inus#ice ould ensue &ro0 #e o''osi#e course.

. ID. ID. ID. ID. CITIENSHIP O% DECEDENT EQTENDED TO HIS EST"TE C"SE "T B"R. I& 4$ legal 8c#ion #e 'ersonali#$ o& P. O. %. is considered e#ended so #a# an$ de4#s oro4liga#ions le 4$, and surviving, i0 0a$ 4e 'aid, and an$ surviving rig#s 0a$ 4eeercised &or #e 4ene8# o& is credi#ors and eirs, res'ec#ivel$, #ere is no sound andcogen# reason &or den$ing #e a''lica#ion o& #e sa0e 8c#ion #o is ci#i!ensi', and &or no#considering i# as li5eise e#ended &or #e 'ur'oses o& #e a&oresaid un8nised 'roceeding4e&ore #e Pu4lic Service Co00ission. Te ou#co0e o& said 'roceeding, i& success&ul, ouldin #e end inure #o #e 4ene8# o& #e sa0e credi#ors, and #e eirs. Even in #a# even#'e#i#ioner could no# allege an$ 'reudice in #e legal sense, an$ 0ore #an e could avedone i& %. ad lived longer and o4#ained #e desired cer#i8ca#e. Te 8c#ion o& suc e#ensiono& is ci#i!ensi' is grounded u'on #e sa0e 'rinci'le, and 0o#iva#ed 4$ #e sa0e reason,as #e 8c#ion o& #e e#ension o& is 'ersonali#$. Te 8c#ion is 0ade necessar$ #o avoid #einus#ice o& su4ec#ing is es#a#e, credi#ors and eirs, solel$ 4$ reason o& is dea#, #o #eloss o& #e inves#0en# a0oun#ing #o P7,***, ic e alread$ 0ade in #e ice 'lan#, no#coun#ing #e o#er e'enses occasioned 4$ #e ins#an# 'roceeding, &ro0 #e Pu4lic ServiceCo00ission #o #is cour#.

(1+)

SULPICIA VENTURA V. 0ON. FRANCIS 4. MILITANTE% as P#5sii7< 4u


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NATURE: Pe#i#ion &or cer#iorari assailing #e Order o& 'u4lic res'onden# ili#an#e direc#Ven#ura #o 8le an anser #o #e co0'lain# &or a su0 o& 0one$ i# da0ages 8led 4$ 'riva#eres'onden# Jon =$ aer den$ing er 0o#ion #o dis0iss. R also denied

FACTS: Priva#e res'onden# Jon =$ 8led a co0'lain# &or su0 o& 0one$ and da0agesagains# 'e#i#ioner Sul'icia Ven#ura, #e s'ouse o& #e deceased Carlos Ngo

). =$ alleged #a# Ngo as inde4#ed #o i0 during is li&e#i0e in #e a0oun# o& P@


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de&endan# is a ;ues#ion o& su4s#ance going #o #e urisdic#ion o& #e cour# and no# one o& 'rocedure.

Nei#er a dead 'erson nor is es#a#e 0a$ 4e a 'ar#$ 'lain#i? in a cour# ac#ion. Considering#a# ca'aci#$ #o 4e sued is a correla#ive o& #e ca'aci#$ #o sue, #o #e sa0e e#en#, adeceden# does no# ave #e ca'aci#$ #o 4e sued and 0a$ no# 4e na0ed a 'ar#$ de&endan# in

a cour# ac#ion.

ISSUE: AON #e #rial cour# ac;uired urisdic#ion over #e es#a#e o& Carlos Ngo

R=1IN(: No.

RATIO: I# is clear #a# #e original co0'lain# o& =$ agains# #e es#a#e o& Carlos Ngo as asui# agains# Ngo i0sel& o as alread$ dead a# #e #i0e o& #e 8ling o& said co0'lain#. =$i0sel& ad0i##ed #a# no s'ecial 'roceeding #o se##le is es#a#e ad 4een 8led in cour#. "ssuc, #e #rial cour# did no# ac;uire urisdic#ion over ei#er #e deceased Carlos Ngo or ises#a#e.

=$s su4se;uen# a0end0en# o& is co0'lain# does no# cure #e &a#al de&ec# o& isco0'lain#. "0end0en#s canno# 4e alloed so as #o con&er urisdic#ion u'on a cour# #a#never ac;uired i# in #e 8rs# 'lace. Aen i# is eviden# #a# #e cour# as no urisdic#ion over#e 'erson and su4ec# 0a##er and #a# #e 'leading is so &a#all$ de&ec#ive as no# #o 4esusce'#i4le o& a0end0en#, or #a# #o 'er0i# suc a0end0en# ould radicall$ al#er #e#eor$ and #e na#ure o& #e ac#ion, #en #e cour# sould re&use #e a0end0en# o& #ede&ec#ive 'leading and order #e dis0issal o& #e case.

ISSUE: Aa# re0ed$ sould 4e availed o& 4$ =$R=1IN(: %ile a clai0 agains# #e es#a#e in #e #es#a#e or in#es#a#e 'roceedings o& #edeceased 'erson

RATIO: "s correc#l$ 'oin#ed 4$ 'e#i#ioner, #e CP( #er0ina#es u'on #e dea# o& ei#ers'ouse. "er #e dea# o& one o& #e s'ouses, in case i# is necessar$ #o sell an$ 'or#ion o& #e conugal 'ro'er#$ #o 'a$ an$ ou#s#anding o4liga#ions o& #e 'ar#nersi', suc sale 0us#4e 0ade in #e 0anner and i# #e &or0ali#ies es#a4lised 4$ #e ROC &or #e sale o& #e'ro'er#$ o& deceased 'ersons. Aere a co0'lain# is 4roug# agains# #e surviving s'ouse &or#e recover$ o& an inde4#edness cargea4le agains# said conugal 'ro'er#$, an$ udg0en#o4#ained #ere4$ is void. Te 'ro'er ac#ion sould 4e in #e &or0 o& a clai0 #o 4e 8led in #ein#es#a#e or #es#a#e 'roceedings o& #e deceased 'erson.

=nder Rule -< Sec 6 ROC, =$ 0a$ a''l$ in cour# &or le##ers o& ad0inis#ra#ion in is ca'aci#$as a 'rinci'al credi#or or #e deceased Carlos Ngo i& aer * da$s &ro0 is dea#, Ven#ura&ailed #o a''l$ &or ad0inis#ra#ion or re;ues# #a# ad0inis#ra#ion 4e gran#ed #o so0e o#er'erson.

DISPOSITIVE: Pe#i#ion &or cer#iorari gran#ed. Co0'lain# 8led 4$ =$ is dis0issed.

). REEDI"1 1"A CIVI1 PROCED=RE P"RTIES TO CIVI1 "CTIONS P1"INTI%% ESSENTI"1 TO CON%ER J=RISDICTION TO CO=RT. Par#ies 0a$ 4e ei#er 'lain#i?s or de&endan#s. Te'lain#i? in an ac#ion is #e 'ar#$ co0'laining, and a 'ro'er 'ar#$ 'lain#i? is essen#ial #ocon&er urisdic#ion on #e cour#. In order #o 0ain#ain an ac#ion in a cour# o& us#ice, #e'lain#i? 0us# ave an ac#ual legal eis#ence, #a# is, e, se or i# 0us# 4e a 'erson in laand 'ossessed o& a legal en#i#$ as ei#er a na#ural or an ar#i8cial 'erson, and no sui# can 4ela&ull$ 'rosecu#ed save in #e na0e o& suc a 'erson.


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2. ID. ID. ID. DE%END"NT 1E("1 PERSON"1ITG =ESTION O% S=BST"NCE. I# isincu04en# u'on a 'lain#i?, en e ins#i#u#es a udicial 'roceeding, #o na0e #e 'ro'er'ar#$ de&endan# #o is cause o& ac#ion. In a sui# or 'roceeding in 'ersona0 o& an adversar$carac#er, #e cour# can ac;uire no urisdic#ion &or #e 'ur'ose o& #rial or udg0en# un#il a'ar#$ de&endan# o ac#uall$ or legall$ eis#s and is legall$ ca'a4le o& 4eing sued, is4roug# 4e&ore i#. I# as even 4een eld #a# #e ;ues#ion o& #e legal 'ersonali#$ o& a 'ar#$

de&endan# is a ;ues#ion o& su4s#ance going #o #e urisdic#ion o& #e cour# and no# one o& 'rocedure.

. ID. ID. ID. NEITHER DE"D PERSON NOR HIS EST"TE "G BE " P"RTG IN CO=RT"CTION. Nei#er a dead 'erson nor is es#a#e 0a$ 4e a 'ar#$ 'lain#i? in a cour# ac#ion. "deceased 'erson does no# ave suc legal en#i#$ as is necessar$ #o 4ring ac#ion so 0uc so#a# a 0o#ion #o su4s#i#u#e canno# lie and sould 4e denied 4$ #e cour#. "n ac#ion 4egun 4$a deceden#Ks es#a#e canno# 4e said #o ave 4een 4egun 4$ a legal 'erson, since an es#a#e isno# a legal en#i#$ suc an ac#ion is a nulli#$ and a 0o#ion #o a0end #e 'ar#$ 'lain#i? illno# li5eise lie, #ere 4eing no#ing 4e&ore #e cour# #o a0end. Considering #a# ca'aci#$ #o4e sued is a correla#ive o& #e ca'aci#$ #o sue, #o #e sa0e e#en#, a deceden# does no# ave#e ca'aci#$ #o 4e sued and 0a$ no# 4e na0ed a 'ar#$ de&endan# in a cour# ac#ion.

@. ID. ID. P1E"DIN(S "ENDENTS NOT "11OAED AHEN THE P=RPOSE IS TOCON%ER J=RISDICTION TO CO=RT. I# is #rue #a# a0end0en#s #o 'leadings are li4erall$alloed in &ur#erance o& us#ice, in order #a# ever$ case 0a$ so &ar as 'ossi4le 4ede#er0ined on i#s real &ac#s, and in order #o s'eed #e #rial o& causes or 'reven# #e circui#r$o& ac#ion and unnecessar$ e'ense. Bu# a0end0en#s canno# 4e alloed so as #o con&er

urisdic#ion u'on a cour# #a# never ac;uired i# in #e 8rs# 'lace. Aen i# is eviden# #a# #ecour# as no urisdic#ion over #e 'erson and #e su4ec# 0a##er and #a# #e 'leading is so&a#all$ de&ec#ive as no# #o 4e susce'#i4le o& a0end0en#, or #a# #o 'er0i# suc a0end0en#ould radicall$ al#er #e #eor$ and #e na#ure o& #e ac#ion, #en #e cour# sould re&use#e a0end0en# o& #e de&ec#ive 'leading and order #e dis0issal o& #e case.

7. ID. SPECI"1 PROCEEDIN( SETT1EENT O% EST"TE O% DECE"SED PERSONINC1=DES ONEG C1"IS "("INST DECE"SED PERSON. oreover, as correc#l$ argued 4$'e#i#ioner, #e conugal 'ar#nersi' #er0ina#es u'on #e dea# o& ei#er s'ouse. "er #edea# o& one o& #e s'ouses, in case i# is necessar$ #o sell an$ 'or#ion o& #e conugal'ro'er#$ in order #o 'a$ ou#s#anding o4liga#ions o& #e 'ar#nersi', suc sale 0us# 4e 0adein #e 0anner and i# #e &or0ali#ies es#a4lised 4$ #e Rules o& Cour# &or #e sale o& #e'ro'er#$ o& deceased 'ersons. Aere a co0'lain# is 4roug# agains# #e surviving s'ouse &or#e recover$ o& an inde4#edness cargea4le agains# said conugal 'ro'er#$, an$ udg0en#o4#ained #ere4$ is void. Te 'ro'er ac#ion sould 4e in #e &or0 o& a clai0 #o 4e 8led in #e#es#a#e or in#es#a#e 'roceedings o& #e deceased s'ouse.

6. ID. ID. ID. PRINCIP"1 CREDITOR O% DECE"SED PERSON "G "PP1G IN CO=RT %OR1ETTERS O% "DINISTR"TION. In 0an$ cases as in #e ins#an# one, even aer #e dea#o& one o& #e s'ouses, #ere is no li;uida#ion o& #e conugal 'ar#nersi'. Tis does no#0ean, oever, #a# #e conugal 'ar#nersi' con#inues. "nd 'riva#e res'onden# canno# 4esaid #o ave no re0ed$. =nder Sec. 6, Rule -< o& #e Revised Rules o& Cour#, e 0a$ a''l$ in

cour# &or le##ers o& ad0inis#ra#ion in is ca'aci#$ as a 'rinci'al credi#or o& #e deceasedCarlos Ngo i& aer #ir#$ 9* da$s &ro0 is dea#, 'e#i#ioner &ailed #o a''l$ &orad0inis#ra#ion or re;ues# #a# ad0inis#ra#ion 4e gran#ed #o so0e o#er 'erson.

SYNOPSIS: Priva#e res'onden# Jon =$ 8led a Co0'lain# &or Su0 o& one$ and Da0agesagains# #e Es#a#e o& Carlos Ngo as re'resen#ed 4$ is surviving s'ouse s. Sul'iciaVen#ura. Pe#i#ioner Sul'icia Ven#ura 0oved #o dis0iss #e &oregoing co0'lain# on #e ground#a# #e es#a#e o& Carlos Ngo as no legal 'ersonali#$. Priva#e res'onden# o''osed #e said0o#ion #o dis0iss and 0ani&es#ed #a# e as going #o a0end #e co0'lain#. Pu4lic


11/44

res'onden# #en gave 'riva#e res'onden# 8een da$s #o 0a5e a0end0en#s in #eco0'lain#. Pe#i#ioner 8led a 0o#ion &or reconsidera#ion o& #e said Order on #e grounda0ong o#ers, #a# 'u4lic res'onden# never ac;uired urisdic#ion over #e su4ec# 0a##er o& #e case considering #a# an ac#ion #o recover a su0 o& 0one$ &ro0 a deceased 'erson 0a$onl$ 4e eard 4$ a 'ro4a#e cour#. Tereaer, 'riva#e res'onden# 8led is "0endedCo0'lain# ic su4s#i#u#ed Sul'icia Ven#ura as de&endan#, and clai0ing #a# i# as Carlos

Ngo and Sul'icia Ven#ura o incurred an inde4#edness &ro0 i0. "c#ing on 4o# issues,'u4lic res'onden# denied #e o#ion &or Reconsidera#ion and ad0i##ed #e "0endedCo0'lain#.

Te Cour# ruled #a# nei#er a dead 'erson nor is es#a#e 0a$ 4e a 'ar#$ 'lain#i? in a cour#ac#ion. " deceased 'erson does no# ave suc legal en#i#$ as is necessar$ #o 4ring ac#ion so0uc so #a# a 0o#ion #o su4s#i#u#e canno# lie and sould 4e denied 4$ #e cour#. "n ac#ion4egun 4$ a deceden#Ks es#a#e canno# 4e said #o ave 4een 4egun 4$ a legal 'erson, since anes#a#e is no# a legal en#i#$ suc an ac#ion is a nulli#$ and a 0o#ion #o a0end #e 'ar#$'lain#i? ill no# li5eise lie, #ere 4eing no#ing 4e&ore #e cour# #o a0end. Considering #a#ca'aci#$ #o 4e sued is a correla#ive o& #e ca'aci#$ #o sue, #o #e sa0e e#en#, a deceden#does no# ave #e ca'aci#$ #o 4e sued and 0a$ no# 4e na0ed a 'ar#$ de&endan# in a cour#ac#ion.

oreover, as correc#l$ argued 4$ 'e#i#ioner, #e conugal 'ar#nersi' #er0ina#es u'on #edea# o& ei#er s'ouse. "er #e dea# o& one o& #e s'ouses, in case i# is necessar$ #o sellan$ 'or#ion o& #e conugal 'ro'er#$ in order #o 'a$ ou#s#anding o4liga#ions o& #e'ar#nersi', suc sale 0us# 4e 0ade in #e 0anner and i# #e &or0ali#ies es#a4lised 4$#e Rules o& Cour# &or #e sale o& #e 'ro'er#$ o& deceased 'ersons. Aere a co0'lain# is4roug# agains# #e surviving s'ouse &or #e recover$ o& an inde4#edness cargea4le agains#said conugal 'ro'er#$, an$ udg0en# o4#ained #ere4$ is void. Te 'ro'er ac#ion sould 4ein #e &or0 o& a clai0 #o 4e 8led in #e #es#a#e or in#es#a#e 'roceedings o& #e deceaseds'ouse.

(1')PEDRO ERMAC a7 is -il#57% ELENA% CARLOS% ANTONIO% LUCIANO% 0ILARIO%INDALECIO a7 NARCISA (all su#7a>5 ERMAC) V. CENON MEDELO AND 0ON.0ERNANDO PINEDA as 6#5sii7< ?u


12/44

). Cenon edelo, one o& #e grandcildren o& #e deceden# s'ouses 9one o& #e cildreno& #e 're>deceased daug#er Digna Er0ac 8led a 'e#i#ion &or su00ar$ se##le0en#o& said es#a#e

2. "ll re;uire0en#s aving 4een co0'lied i# and #ere 4eing no o''osi#ion, #e cour#,on Jul$ 2), )+-*, issued an order gran#ing #e sa0e, enu0era#ing all #e eirsen#i#led #o 'ar#ici'a#e in #e ineri#ance and ordering edelo #o 'resen# #e 'ro'er

'roec# o& 'ar#i#ion &or #e su4ec# 'ro'er#$. Hoever, on %e4 2, )+-*, 'e#i#ioner Pedro Er0ac 9one o& #e cildren o& deceaseds'ouses 0oved &or reconsidera#ion o& #e order o& se##le0en#, 'ra$ing &or #eeli0ina#ion o& su4ec# 'arcel o& land 91o# )2- &ro0 #e es#a#e on #e ground #a# i#4elongs #o i0 and is i&e.

@. Te cour# denied #e 0o#ion, ruling #a# #e 'ro'er re0ed$ is #o 8le a se'ara#e sui#7. "s suc, Pedro Er0ac 8led a civil case 4e&ore C%I 1anao del Nor#e6. ='on su40ission o& #e 'roec# o& 'ar#i#ion, #e res'onden# cour# a''roved #e sa0e

over Er0acs o4ec#ion. Pedro Er0ac 0oved &or reconsidera#ion 4u# #e sa0e asdenied

ISSUE: AON res'onden# cour# eceed i#s urisdic#ion or gravel$ a4used i#s discre#ion ina''roving #e 'roec# o& 'ar#i#ion cover 1o# )2- des'i#e i# 4eing clai0ed 4$ Pedro Er0ac ina se'ara#e civil ac#ion #o 4e #eir 'ro'er#$ and no# o& #e es#a#e

R=1IN(: No.

RATIO: Te 'ro4a#e cour# is no# #e 4es# &oru0 &or #e resolu#ion o& adverse clai0s o& onersi' o& an$ 'ro'er#$ os#ensi4l$ 4elonging #o #e deceden#s es#a#e. Aile #ere arese##led ece'#ions #o #is rule as a''lied #o regular ad0inis#ra#ion 'roceedings, i# is no#'ro'er #o dela$ #e su00ar$ se##le0en# o& a deceased 'erson us# 4ecause an eir or a#ird 'erson clai0s #a# cer#ain 'ro'er#ies do no# 4elong #o #e es#a#e 4u# #o i0. Suc clai00us# 4e ven#ila#ed in an inde'enden# ac#ion, and #e 'ro4a#e cour# sould 'roceed #o #edis#ri4u#ion o& #e s#a#e, i& #ere are no o#er legal o4s#acles #o i#, &or aer all, sucdis#ri4u#ion 0us# ala$s 4e su4ec# #o #e resul#s o& #e sui#. %or #e 'ro#ec#ion o& #eclai0an#, #e a''ro'ria#e s#e' is #o ave #e 'ro'er anno#a#ion o& lis 'endens en#ered.

DISPOSITIVE: Ins#an# 'e#i#ion dis0issed i#ou# 'reudice #o 'e#i#ioner aving #e 'ro'eranno#a#ion o& lis 'endens regarding Civil case 0ade on #e #i#le cover 1o# )2-.

). SPECI"1 PROCEEDIN(S SETT1EENT O% EST"TES S="RG PROCED=RE %ORSETT1EENT O% S"11 EST"TES. Te 'olic$ o& #e la is #o #er0ina#e 'roceedings &or #ese##le0en# o& #e es#a#e o& #e deceased 'ersons i# #e leas# loss o& #i0e. Tis ises'eciall$ #rue i# s0all es#a#es &or ic #e rules 'rovide 'recisel$ a su00ar$ 'roceduredis'ensing i# #e a''oin#0en# o& an ad0inis#ra#or #oge#er i# #e o#er involved andcu04erso0e s#e's ordinaril$ re;uired in #e de#er0ina#ion o& #e asse#s o& #e deceasedand #e 'ersons en#i#led #o ineri# #ere&ro0 and #e 'a$0en# o& is o4liga#ions.

2. ID. ID. PROB"TE CO=RT NOT THE %OR= %OR RESO1=TION O% "DVERSE C1"IS O%OANERSHIP. Te 'ro4a#e cour# is no# #e 4es# &oru0 &or #e resolu#ion o& adverse clai0s

o& onersi' o& an$ 'ro'er#$ os#ensi4l$ 4elonging #o #e deceden#Ks es#a#e. Aile #ere arese##led ece'#ions #o #is rule as a''lied #o regular ad0inis#ra#ion 'roceedings, i# is no#'ro'er #o dela$ #e su00ar$ o& a deceased 'ersonKs es#a#e us# 4ecause an eir or a #ird'erson clai0s #a# cer#ain 'ro'er#ies do no# 4elong #o #e es#a#e 4u# #o i0.

. ID. ID. ID. INDEPENDENT "CTION AITH S"%E(="RD %OR THE PROTECTION O%"DVERSE C1"I"NT, PROPER REEDG. "dverse clai0s o& onersi' over 'ro'er#$4elonging #o #e deceden#Ks es#a#e 0us# 4e ven#ila#ed in an inde'enden# ac#ion, and #e'ro4a#e cour# sould 'roceed #o #e dis#ri4u#ion o& #e es#a#e, i& #ere are no o#er legal


13/44

o4s#acles #o i#, &or aer all, suc dis#ri4u#ion 0us# ala$s 4e su4ec# #o #e resul#s o& #esui#. %or #e 'ro#ec#ion o& #e clai0an#, #e a''ro'ria#e s#e' is #o ave #e 'ro'er anno#a#iono& lis 'endens en#ered.

SYNOPSIS: In 'roceedings &or #e su00ar$ se##le0en# o& #e in#es#a#e es#a#e o& #edeceased s'ouses Po#enciano Er0ac and "nas#acia ari;ui#, res'onden# cour# a''roved #e

'roec# o& 'ar#i#ion, su40i##ed 4$ erein 'riva#e res'onden#, covering a lo# 4eing clai0ed 4$'e#i#ioners in a se'ara#e civil ac#ion #o 4e #eir 'ro'er#$, and no# o& #e es#a#e. Tis a''roval4$ #e cour#, as ell as #e orders den$ing i#s reconsidera#ion and &or su00ar$ se##le0en#o& #e es#a#e are ;ues#ioned in #is 'e#i#ion &or cer#iorari.

Te Cour# eld #a# #e res'onden# cour#, in issuing #e a&oresaid orders, did no# eceed i#s urisdic#ion nor gravel$ a4used i#s discre#ion. Par#i#ion and dis#ri4u#ion ere 'ro'er and an$adverse clai0 o& 'e#i#ioners 0us# 4e ven#ila#ed in an inde'enden# ac#ion.Pe#i#ion dis0issed.

(1)

CYNT0IA C. ALABAN% FRANCIS COLLADO% 4OSE P. COLLADO% 4UDIT0 PROVIDO%CLARITA PROVIDO% ALFREDO PROVIDO% MANUEL PROVIDO 4R.% LORNA DINA E.PROVIDO% SEVERO ARENGA 4R.% SERIO ARENGA% EDUARDO ARENGA% CAROLARENGA% RUT0 BABASA% NORMA 0I4ASTRO% DOLORES M. FLORES% ANTONIO MARIN

4R.% 4OSE MARIN SR. a7 MAT0ILDE MARIN V. COURT OF APPEALS a7 FRANCISCO0. PROVIDO% ',* SCRA ;, (&**)2ND DIVISION: Puno 9Cair, "us#ria>ar#ine!, Calleo Sr., Cico>Na!ario, concurringPONENTE: J. Tinga


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elcor R. %lores &or 'e#i#ionersodes#o ar#in G. a0on III &or 'riva#e res'onden#

NATURE: Pe#i#ion &or revie o& #e resolu#ions o& C" in C">(R SP no 6+22), dis0issing'e#i#ioners 'e#i#ion &or annul0en# o& udg0en#

FACTS: On Nov


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could ave 8led a 'e#i#ion &or relie& &ro0 udg0en# since #e$ learned o& #e RTC udg0en# onl$ M 0on#s aer i#s 'ro0ulga#ion. %rancisco also carged 'e#i#ionerso& &oru0 so''ing since #e la##er ave 'ending sui# involving #e sa0e issuese4&ore RTC (eneral San#os Ci#$ Br 2 and su4se;uen#l$ 'ending on a''eal 4e&ore C"in C">(R no -@2+

)). I# a''ears #a# one o& #e 'e#i#ioners, Dolores %lores, o is a niece o& #e deceden#,

8led a 'e#i#ion &or le##ers o& ad0inis#ra#ion in RTC (en San#os, clai0ing #e deceden#died in#es#a#e i#ou# an$ issue, survived 4$ 7 grou's o& colla#eral eirs. %loreso4#ained an SP" &ro0 0os# o& #e 'e#i#ioners. RTC dis0issed #e 'e#i#ion on #eground o& lac5 o& urisdic#ion since #e deceden# died in Janiua$, Iloilo

)2.Pe#i#ioners 0ain#ain #a# #e$ ere no# 0ade 'ar#ies #o #e case in ic #edecision soug# #o 4e annulled as rendered and, #us #e$ could no# ave availed o& #e ordinar$ re0edies o& NT, a''eal, 'e#i#ion &or relie& &ro0 udg0en# and o#era''ro'ria#e re0edies. Te$ averred #a# %ranciscos &alse co0'ro0ise and is &ailure#o no#i&$ #e0 o& #e 'ro4a#e o& #e ill cons#i#u#e e#rinsic &raud

ISSUE: AON 'e#i#ioners "la4an e# al ave 4eco0e 'ar#ies #o #e 'ro4a#e 'roceedingsins#i#u#ed 4$ %rancisco

R=1IN(: Ges.

RATIO: =nder #e ROC, an$ eecu#or, devisee, or lega#ee na0ed in a ill, or an$ o#er'erson in#eres#ed in #e es#a#e 0a$, a# an$ #i0e aer #e dea# o& #e #es#a#or, 'e#i#ion #ecour# aving urisdic#ion #o ave #e ill alloed. No#ice o& #e #i0e and 'lace &or 'roving#e ill 0us# 4e 'u4lised &or consecu#ive ee5s in a nes'a'er o& general circula#ion in#e 'rovince, as ell as &urnised #o #e designa#ed or o#er 5non eirs o& #e #es#a#or.

Tus, i# as 4een eld #a# a 'roceeding &or #e 'ro4a#e o& #e ill is one in re0, suc #a#i# #e corres'onding 'u4lica#ion o& #e 'e#i#ion #e cour#s urisdic#ion e#ends #o all'ersons in#eres#ed in said ill or in #e se##le0en# o& #e es#a#e o& #e deceden#.

Pu4lica#ion is no#ice #o #e ole orld #a# #e 'roceeding as &or i#s o4ec# #o 4arinde8ni#el$ all o 0ig# 4e 0inded #o 0a5e an o4ec#ion agains# #e rig# soug# #o 4ees#a4lised. I# is #e 'u4lica#ion o& suc no#ice #a# 4rings in #e ole orld as a 'ar#$ in#e case and ves#s #e cour# i# urisdic#ion #o ear and decide i#. Tus, even #oug'e#i#ioners ere no# 0en#ioned in #e 'e#i#ion &or 'ro4a#e, #e$ even#uall$ 4eca0e 'ar#ies#ere#o as a conse;uence o& #e 'u4lica#ion o& #e no#ice o& #e earing.

ISSUE: Aa# re0edies could #e 'ar#ies avail in #is case

R=1IN(: o#ion &or Ne Trial or Reconsidera#ion or 'e#i#ion &or relie& &ro0 udg0en#

RATIO: "s 'ar#ies #o #e 'ro4a#e 'roceedings, 'e#i#ioners could ave validl$ availed o& #ere0edies o& NT, R or 'e#i#ion &or relie& &ro0 udg0en#. In &ac#, 'e#i#ion 8led essen#iall$ aNT, i# 'e#i#ioners 'ra$ing &or #e reo'ening o& #e case and se##ing o& &ur#er'roceedings. Hoever, #e 0o#ion as denied &or aving 4een 8led ou# o& #i0e, long aer#e decision 4eca0e 8nal and eecu#or$.

(ran#ed #a# 'e#i#ioners ere aare o& #e decision aer i# ad 4eco0e 8nal, #e$ couldave s#ill 8led a 'e#i#ion &or relie& &ro0 udg0en# aer #e denial o& #e 0o#ion #o reo'en.Pe#i#ioners clai0 #e learned o& #e decision onl$ on Oc# @, 2**) or al0os# @ 0on#s &ro0#e #i0e #e decision 4eca0e 8nal. Bu# #e$ &ailed #o avail o& #e re0ed$.

%or &ailure #o 0a5e use i#ou# su3cien# us#i8ca#ion o& #e said re0edies availa4le #o #e0,'e#i#ioners can no longer resor# #o a 'e#i#ion &or annul0en# o& udg0en# o#erise, #e$ould 4ene8# &ro0 #eir on inac#ion or negligence.


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ISSUE: AON an ac#ion &or annul0en# o& udg0en# is #e 'ro'er re0ed$ in #is case

R=1IN(: No.

RATIO: "n ac#ion &or annul0en# o& udg0en# is a re0ed$ in la inde'enden# o& #e case

ere #e udg0en# soug# o# 4e annulled as rendered. Te 'ur'ose o& suc ac#ion is #oave #e 8nal and eecu#or$ udg0en# se# aside so #a# #ere ill 4e a reneal o& li#iga#ion.I# is resor#ed #o in cases ere #e ordinar$ re0edies o& NT, a''eal or relie& &ro0 udg0en#are no longer availa4le #roug no &aul# o& #e 'e#i#ioner, and is 4ased onl$ on 2 grounds:e#rinsic &raud, and lac5 o& urisdic#ion or denial o& due 'rocess. " 'erson need no# 4e a'ar#$ #o #e udg0en# soug# #o 4e annulled, and i# is onl$ essen#ial #a# e can 'rove isallega#ion #a# #e udg0en# as o4#ained 4$ #e use o& &raud and collusion and e ould 4eadversel$ a?ec#ed #ere4$.

"n ac#ion #o annul a 8nal udg0en# on #e ground o& &raud lies onl$ i& #e &raud is e#rinsic orcolla#eral in carac#er. Pe#i#ioners alleged #a# %ranciscos deli4era#e o0ission orconceal0en# o& #eir na0es as eirs in #e 'e#i#ion &or #e alloance o& #e ill, #e$ ereno# no#i8ed o& #e 'roceedings, and as suc #e$ ere denied o& #eir da$ in cour#.

C"B: " 'erusal o& #e ill sos #a# %rancisco as ins#i#u#ed as #e sole eir o& #edeceden#. Pe#i#ioners, as ne'es and nieces o& #e deceden#, are nei#er co0'ulsor$ nor#es#a#e eirs o are en#i#led #o 4e no#i8ed o& #e 'ro4a#e 'roceedings under ROC. %ranciscoad no legal o4liga#ion #o 0en#ion 'e#i#ioners in #e 'e#i#ion &or 'ro4a#e, or #o 'ersonall$no#i&$ #e0 o& #e sa0e.

"ssu0ing arguendo #e$ are en#i#led #o 4e no#i8ed, #e 'ur'or#ed in8r0i#$ is cured 4$ #e'u4lica#ion o& #e no#ice.

ISSUE: AON 'e#i#ioners are guil#$ o& &oru0>so''ingR=1IN(: Ges.

RATIO: %oru0>so''ing consis#s o& 8ling 0ul#i'le sui#s in di?eren# cour#s, ei#ersi0ul#aneousl$ or successivel$, involving #e sa0e 'ar#ies, #o as5 #e cour#s #o rule on #esa0e or rela#ed causes andFor #o gran# #e sa0e or su4s#an#iall$ sa0e relie&s, on #esu''osi#ion #a# one o#er #e o#er cour# ould 0a5e a &avora4le dis'osi#ion. O4viousl$,#e 'ar#ies in #e ins#an# case, as ell as in #e a''ealed case 4e&ore C", are #e sa0e. Bo#cases deal i# #e eis#ence and validi#$ o& #e alleged ill o& #e deceden#. Clearl$, #ereis &oru0 so''ing.

oreover, 'e#i#ioners &ailed #o in&or0 #e cour# o& #e said 'ending case in #eir cer#i8ca#ionagains# &oru0 so''ing. Nei#er ave #e$ done so a# an$ #i0e #ereaer.

DISPOSITIVE: Pe#i#ion denied.

). REEDI"1 1"A CIVI1 PROCED=RE "NN=1ENT O% J=D(ENTS REEDIES

"V"I1"B1E TO "N "((RIEVED P"RTG. Sec#ion - o& #e Rules o& Cour# allos an aggrieved'ar#$ #o 8le a 0o#ion &or ne #rial on #e ground o& &raud, acciden#, 0is#a5e, or ecusa4lenegligence. Te sa0e Rule 'er0i#s #e 8ling o& a 0o#ion &or reconsidera#ion on #e groundso& ecessive aard o& da0ages, insu3cienc$ o& evidence #o us#i&$ #e decision or 8nalorder, or #a# #e decision or 8nal order is con#rar$ #o la. Bo# 0o#ions sould 4e 8ledi#in #e 'eriod &or #a5ing an a''eal, or 8een 9)7 da$s &ro0 no#ice o& #e udg0en# or8nal order. eanile, a 'e#i#ion &or relie& &ro0 udg0en# under Sec#ion o& Rule < isresor#ed #o en a udg0en# or 8nal order is en#ered, or an$ o#er 'roceeding is #ereaer#a5en, agains# a 'ar#$ in an$ cour# #roug &raud, acciden#, 0is#a5e, or ecusa4le


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negligence. Said 'ar#$ 0a$ 8le a 'e#i#ion in #e sa0e cour# and in #e sa0e case #o se#aside #e udg0en#, order or 'roceeding. I# 0us# 4e 8led i#in si#$ 96* da$s aer #e'e#i#ioner learns o& #e udg0en# and i#in si 96 0on#s aer en#r$ #ereo&. " 0o#ion &orne #rial or reconsidera#ion and a 'e#i#ion &or relie& &ro0 udg0en# are re0edies availa4leonl$ #o 'ar#ies in #e 'roceedings ere #e assailed udg0en# is rendered. In &ac#, i# as4een eld #a# a 'erson o as never a 'ar#$ #o #e case, or even su00oned #o a''ear

#erein, canno# avail o& a 'e#i#ion &or relie& &ro0 udg0en#.

2. ID. ID. ID. EVEN THO=(H PETITIONERS AERE NOT ENTIONED IN THEIR PETITION%OR PROB"TE, THEG BEC"E P"RTIES THERETO "S " CONSE=ENCE O% THE P=B1IC"TIONO% THE NOTICE O% HE"RIN(. =nder #e Rules o& Cour#, an$ eecu#or, devisee, or lega#eena0ed in a ill, or an$ o#er 'erson in#eres#ed in #e es#a#e 0a$, a# an$ #i0e aer #edea# o& #e #es#a#or, 'e#i#ion #e cour# aving urisdic#ion #o ave #e ill alloed. No#ice o& #e #i0e and 'lace &or 'roving #e ill 0us# 4e 'u4lised &or #ree 9 consecu#ive ee5s, ina nes'a'er o& general circula#ion in #e 'rovince, as ell as &urnised #o #e designa#ed oro#er 5non eirs, lega#ees, and devisees o& #e #es#a#or. Tus, i# as 4een eld #a# a'roceeding &or #e 'ro4a#e o& a ill is one in re0, suc #a# i# #e corres'onding'u4lica#ion o& #e 'e#i#ion #e cour#Ks urisdic#ion e#ends #o all 'ersons in#eres#ed in said illor in #e se##le0en# o& #e es#a#e o& #e deceden#. Pu4lica#ion is no#ice #o #e ole orld#a# #e 'roceeding as &or i#s o4ec# #o 4ar inde8ni#el$ all o 0ig# 4e 0inded #o 0a5e ano4ec#ion o& an$ sor# agains# #e rig# soug# #o 4e es#a4lised. I# is #e 'u4lica#ion o& sucno#ice #a# 4rings in #e ole orld as a 'ar#$ in #e case and ves#s #e cour# i#

urisdic#ion #o ear and decide i#. Tus, even #oug 'e#i#ioners ere no# 0en#ioned in #e'e#i#ion &or 'ro4a#e, #e$ even#uall$ 4eca0e 'ar#ies #ere#o as a conse;uence o& #e'u4lica#ion o& #e no#ice o& earing.

. ID. ID. ID. PETITIONERS CO=1D NO 1ON(ER RESORT TO " PETITION %OR"NN=1ENT O% J=D(ENT D=E TO THEIR %"I1=RE TO "E =SE AITHO=T S=%%ICIENT

J=STI%IC"TION O% THE REEDIES "V"I1"B1E =NDER THE R=1ES "ND TO R=1E OTHERAISEAO=1D "11OA PETITIONERS TO BENE%IT %RO THEIR OAN IN"CTION OR NE(1I(ENCE. "s 'ar#ies #o #e 'ro4a#e 'roceedings, 'e#i#ioners could ave validl$ availed o& #e re0edieso& 0o#ion &or ne #rial or reconsidera#ion and 'e#i#ion &or relie& &ro0 udg0en#. In &ac#,'e#i#ioners 8led a 0o#ion #o reo'en, ic is essen#iall$ a 0o#ion &or ne #rial, i#'e#i#ioners 'ra$ing &or #e reo'ening o& #e case and #e se##ing o& &ur#er 'roceedings.Hoever, #e 0o#ion as denied &or aving 4een 8led ou# o& #i0e, long aer #e Decision4eca0e 8nal and eecu#or$. Conceding #a# 'e#i#ioners 4eca0e aare o& #e Decision aeri# ad 4eco0e 8nal, #e$ could ave s#ill 8led a 'e#i#ion &or relie& &ro0 udg0en# aer #edenial o& #eir 0o#ion #o reo'en. Pe#i#ioners clai0 #a# #e$ learned o& #e Decision onl$ on @Oc#o4er 2**), or al0os# &our 9@ 0on#s &ro0 #e #i0e #e Decision ad a##ained 8nali#$. Bu##e$ &ailed #o avail o& #e re0ed$. %or &ailure #o 0a5e use i#ou# su3cien# us#i8ca#ion o& #e said re0edies availa4le #o #e0, 'e#i#ioners could no longer resor# #o a 'e#i#ion &orannul0en# o& udg0en# o#erise, #e$ ould 4ene8# &ro0 #eir on inac#ion or negligence.

@. ID. ID. ID. "N "CTION %OR "NN=1ENT O% J=D(ENT IS " REEDG IN 1"AINDEPENDENT O% THE C"SE AHERE THE J=D(ENT SO=(HT TO BE "NN=11ED A"SRENDERED "ND " PERSON NEED NOT BE " P"RTG TO THE C"SE "ND IT IS ON1G ESSENTI"1

TH"T THE "SS"I1ED J=D(ENT A"S OBT"INED BG %R"=D "ND CO11=SION "ND THEPETITIONER AO=1D BE "DVERSE1G "%%ECTED THEREBG. "n ac#ion &or annul0en# o&

udg0en# is a re0ed$ in la inde'enden# o& #e case ere #e udg0en# soug# #o 4eannulled as rendered. Te 'ur'ose o& suc ac#ion is #o ave #e 8nal and eecu#or$

udg0en# se# aside so #a# #ere ill 4e a reneal o& li#iga#ion. I# is resor#ed #o in casesere #e ordinar$ re0edies o& ne #rial, a''eal, 'e#i#ion &or relie& &ro0 udg0en#, or o#era''ro'ria#e re0edies are no longer availa4le #roug no &aul# o& #e 'e#i#ioner, and is 4asedon onl$ #o grounds: e#rinsic &raud, and lac5 o& urisdic#ion or denial o& due 'rocess. "'erson need no# 4e a 'ar#$ #o #e udg0en# soug# #o 4e annulled, and i# is onl$ essen#ial


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#a# e can 'rove is allega#ion #a# #e udg0en# as o4#ained 4$ #e use o& &raud andcollusion and e ould 4e adversel$ a?ec#ed #ere4$.

7. ID. ID. ID. THE OVERRIDIN( CONSIDER"TION AHEN EQTRINSIC %R"=D IS "11E(EDIS TH"T THE %R"=D=1ENT SCHEE O% THE PREV"I1IN( 1ITI("NT PREVENTED " P"RTG %ROH"VIN( HIS D"G IN CO=RT. "n ac#ion #o annul a 8nal udg0en# on #e ground o& &raud lies

onl$ i& #e &raud is e#rinsic or colla#eral in carac#er. %raud is regarded as e#rinsic ere i#'reven#s a 'ar#$ &ro0 aving a #rial or &ro0 'resen#ing is en#ire case #o #e cour#, or erei# o'era#es u'on 0a##ers 'er#aining no# #o #e udg0en# i#sel& 4u# #o #e 0anner in ic i#is 'rocured. Te overriding considera#ion en e#rinsic &raud is alleged is #a# #e&raudulen# sce0e o& #e 'revailing li#igan# 'reven#ed a 'ar#$ &ro0 aving is da$ in cour#.

6. ID. ID. ID. THE NON>INC1=SION O% PETITIONERKS N"E IN THE PETITION "ND THE"11E(ED %"I1=RE TO PERSON"11G NOTI%G THE O% THE PROCEEDIN(S DO NOTCONSTIT=TE EQTRINSIC %R"=D PETITIONERS AERE NOT DENIED THEIR D"G IN CO=RT, "S

THEG AERE NOT PREVENTED %RO P"RTICIP"TIN( IN THE PROCEEDIN(S "ND PRESENTIN( THEIR C1"I BE%ORE THE PROB"TE CO=RT. "ccording #o #e Rules, no#ice is re;uired #o4e 'ersonall$ given #o 5non eirs, lega#ees, and devisees o& #e #es#a#or. " 'erusal o& #eill sos #a# res'onden# as ins#i#u#ed as #e sole eir o& #e deceden#. Pe#i#ioners, asne'es and nieces o& #e deceden#, are nei#er co0'ulsor$ nor #es#a#e eirs o areen#i#led #o 4e no#i8ed o& #e 'ro4a#e 'roceedings under #e Rules. Res'onden# ad no legalo4liga#ion #o 0en#ion 'e#i#ioners in #e 'e#i#ion &or 'ro4a#e, or #o 'ersonall$ no#i&$ #e0 o& #e sa0e. Besides, assu0ing arguendo #a# 'e#i#ioners are en#i#led #o 4e so no#i8ed, #e'ur'or#ed in8r0i#$ is cured 4$ #e 'u4lica#ion o& #e no#ice. "er all, 'ersonal no#ice u'on#e eirs is a 0a##er o& 'rocedural convenience and no# a urisdic#ional re;uisi#e. Te non>inclusion o& 'e#i#ionersK na0es in #e 'e#i#ion and #e alleged &ailure #o 'ersonall$ no#i&$#e0 o& #e 'roceedings do no# cons#i#u#e e#rinsic &raud. Pe#i#ioners ere no# denied #eirda$ in cour#, as #e$ ere no# 'reven#ed &ro0 'ar#ici'a#ing in #e 'roceedings and'resen#ing #eir case 4e&ore #e 'ro4a#e cour#.

-. ID. ID. %OR= SHOPPIN( COITTED IN C"SE "T B"R. One o#er vi#al 'oin# is#e issue o& &oru0>so''ing agains# 'e#i#ioners. %oru0>so''ing consis#s o& 8ling 0ul#i'lesui#s in di?eren# cour#s, ei#er si0ul#aneousl$ or successivel$, involving #e sa0e 'ar#ies, #oas5 #e cour#s #o rule on #e sa0e or rela#ed causes andFor #o gran# #e sa0e orsu4s#an#iall$ sa0e relie&s, on #e su''osi#ion #a# one or #e o#er cour# ould 0a5e a&avora4le dis'osi#ion. O4viousl$, #e 'ar#ies in #e ins#an# case, as ell as in #e a''ealedcase 4e&ore #e C", are #e sa0e. Bo# cases deal i# #e eis#ence and validi#$ o& #ealleged ill o& #e deceden#, i# 'e#i#ioners ancoring #eir cause on #e s#a#e o& in#es#ac$.In #e 'ro4a#e 'roceedings, 'e#i#ionersK 'osi#ion as ala$s 4een #a# #e deceden# le noill and i& se did, #e ill does no# co0'l$ i# #e re;uisi#es o& a valid ill. Indeed, #a#'osi#ion is #e 4edroc5 o& #eir 'resen# 'e#i#ion. O& course, res'onden# 0ain#ains #econ#rar$ s#ance. On #e o#er and, in #e 'e#i#ion &or le##ers o& ad0inis#ra#ion, 'e#i#ioner%lores 'ra$ed &or er a''oin#0en# as ad0inis#ra#ri o& #e es#a#e on #e #eor$ #a# #edeceden# died in#es#a#e. Te 'e#i#ion as dis0issed on #e ground o& lac5 o& urisdic#ion, andi# is #is order o& dis0issal ic is #e su4ec# o& revie in C">(.R. No. -@+2@. Clearl$,#ere&ore, #ere is &oru0>so''ing. oreover, 'e#i#ioners &ailed #o in&or0 #e Cour# o& #e

said 'ending case in #eir cer#i8ca#ion agains# &oru0>so''ing. Nei#er ave #e$ done so a#an$ #i0e #ereaer. Te Cour# no#es #a# even in #e 'e#i#ion &or annul0en# o& udg0en#,'e#i#ioners &ailed #o in&or0 #e C" o& #e 'endenc$ o& #eir a''eal in C">(.R. No. -@+2@,even #oug #e no#ice o& a''eal as 8led a$ 4e&ore #e 'e#i#ion &or annul0en# o&

udg0en# as ins#i#u#ed.


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(1;)P0ILIPPINE SAVINGS BANK V. 0ON. GREGORIO LANTIN% 6#5sii7< ?u


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RATIO: Te 'roceedings in #e C%I do no# 'ar#a5e o& #e na#ure o& insolvenc$ 'roceedings orse##le0en# o& a deceden#s es#a#e. Te ac#ion 8led 4$ Ra0os as onl$ #o collec# #e un'aidcos# o& #e cons#ruc#ion o& #e a'ar#0en#. I# is &ar &ro0 4eing a general li;uida#ion o& #ees#a#e o& Ta4ligan s'ouses.

Insolvenc$ 'roceedings and se##le0en# o& a deceden#s es#a#e are 4o# 'roceedings in re0ic are 4inding agains# #e ole orld. "ll 'ersons aving in#eres# in #e su4ec# 0a##erinvolved, e#er no#i8ed or no#, are e;uall$ 4ound. Conse;uen#l$, a li;uida#ion o& si0ilari0'or# or o#er e;uivalen# general li;uida#ion 0us# also necessaril$ 4e a 'roceeding in re0.

C"B: Ra0os i0sel& ad0i##ed #a# #e 4an5 ad no ac#ual or cons#ruc#ive 5noledge o& an$lien agains# #e 'ro'er#$ en i# gran#ed #e loan #o #e s'ouses.

Since #e ac#ion 8led 4$ Ra0os is no# one ic can 4e considered as e;uivalen# generalli;uida#ion, #e 'rinci'le #a# a 'urcaser in good &ai# and &or value #a5es #e land &ree &ro0liens and encu04rances o#er #an s#a#u#or$ liens and encu04rances o#er #an s#a#u#or$liens and #ose recorded in #e TCT a''lies. I# is an ad0i##ed &ac# #a# a# #e #i0e #e REere cons#i#u#ed, #e s'ouses as &ree &ro0 an$ recorded lien and encu04rance, so #a# #eonl$ regis#ered liens in #e #i#le ere #e RE in &avor o& PS Ban5.

Tere&ore, Ra0os clai0 0us# re0ain su4ordina#e #o #e 4an5s #i#le over #e 'ro'er#$evidenced 4$ TCT no )*)


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SII1"R N"T=RE. Insolvenc$ 'roceedings end se##le0en# o& a deceden#Ks es#a#e are 4o#'roceedings in re0 ic are 4inding #e ole orld. "ll 'ersons aving in#eres# in #esu4ec# 0a##er involved, e#er #e$ ere no#i8ed or no#, are e;uall$ 4ound.Conse;uen#l$, a li;uida#ion o& si0ilar i0'or# or o#er e;uivalen# general li;uida#ion 0us#also necessaril$ 4e a 'roceeding in re0 so #a# all in#eres#ed 'ersons e#er 5non #o #e'ar#ies or no# 0a$ 4e 4ound 4$ suc 'roceeding.

7. ID. "CTION %OR CO11ECTION O% =NP"ID CONTR"CTORKS %EE NOT "N "CTION INRE. Te 'roceedings in #e cour# 4elo do no# 'ar#a5e o& #e insure o& insolvenc$'roceedings or se##le0en# o& a deceden#Ks es#a#e. Te ac#ion 8led 4$ Ra0os as onl$ #ocollec# #e un'aid cos# o& #e cons#ruc#ion o& #e du'le a'ar#0en#. I# is &ar &ro0 4eing ageneral li;uida#ion o& #e es#a#e o& #e Ta4ligan s'ouses.

6. CIVI1 1"A CREDIT TR"NS"CTION "NNOT"TION O% C1"IS "ND CREDITS "SST"T=TORG 1IENS RE1EV"NCE TO THE ST"BI1ITG O% THE TORRENS SGSTE. In #e casea# 4ar, al#oug #e loer cour# &ound #a# L#ere ere no 5non credi#ors o#er #an #e'lain#i? and #e de&endan# erein,L #is canno# 4e conclusive. I# ill no# 4ar o#er credi#orsin #e even# #e$ so u' and 'resen# #eir clai0s S#a#e 'e#i#ioner 4an5, clai0ing #a# #e$also ave 're&erred liens agains# #e 'ro'er#$ involved. Conse;uen#l$, Trans&er Cer#i8ca#e o&

Ti#le No. )*)


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(1,)INTESTATE ESTATE OF MARCELO DE BOR4A% CRISTANTO DE BOR4A% a>i7is!#a!"#3a665lla7! @. 4UAN DE BOR4A ET AL% "66"si!"#s3a665ll55s% 1*1 P0IL 11 (1,)

EN B"NC: Paras, Beng!on, on#e0a$or, Re$es, "., Bau#is#a, "ngelo, 1a4rador, Conce'cion,Endencia, concurringPONENTE: J. %eli

E.V. %ila0or &or a''ellan# Juan de Bora &or i0sel& and co>a''ellees

NATURE:

FACTS: uin#in, %rancisco, Crisan#a and Juliana, are legi#i0a#e cildren o& arcelo de Bora.arcelo died in#es#a#e and uin#in 4eca0e #e ad0inis#ra#or o& #e in#es#a#e es#a#e o& arcelo. Su4se;uen#l$, uin#in died #es#a#e and Crisan#o, %ranciscos son, as a''oin#ed asad0inis#ra#or o& #e es#a#e o& arcelo. %rancisco, on #e o#er and, 4eca0e #e eecu#or o& #e ill o& uin#in

). %rancisco as la#er re;uired 4$ #e Cour# #o resign as suc eecu#or and assucceeded 4$ Rogelio 1i0aco, son>in>la o& uin#in ile #e in#es#a#e es#a#ere0ained under #e ad0inis#ra#ion o& Crisan#o un#il #e ou#4rea5 o& AAII

2. "er #e ar in )+@7, iguel Da$co 9Crisan#as son, as ad0inis#ra#or o& #e es#a#e o& Crisan#a, 8led a 'e#i#ion &or #e recons#i#u#ion o& #e records o& #e case, re;uiring #ead0inis#ra#or #o su40i# is re'or# and a co'$ o& #e 'roec# o& 'ar#i#ion. Te eirs o& uin#in o''osed #e a''roval o& #e s#a#e0en# o& accoun#s rendered 4$ #e Crisan#oon #e ground #a# i# as no# de#ailed enoug #o ena4le #e in#eres#ed 'ar#ies #overi&$ #e sa0e #a# #e$ canno# unders#and $ #e in#es#a#e could su?er an$ lossconsidering #a# during #e ad0inis#ra#ion o& #e sa0e 4$ uin#in, #e es#a#eaccu0ula#ed gains o& 0ore #an P)**,*** in #e &or0 o& advances #o #e eirs asell as cas 4alance #a# #e$ desired #o ea0ine #e accoun#s o& Crisan#o #o veri&$#e loss and #ere&ore 'ra$ed #a# #e ad0inis#ra#or 4e ordered #o de'osi# i# #eCler5 o& Cour# all 4oo5s and recei'#s 'er#aining #o #e es#a#e o& arcelo

. On Jul$ 6, )+7*, #e o''osi#ors 8led a 0o#ion &or #e deliver$ #o #e0 o& #eirineri#ance in #e es#a#e, 'ursuan# #o #e 'roec# o& 'ar#i#ion, and e'ressed #eirillingness #o 'u# u' a 4ond i& re;uired #o do so. Te 0o#ion as gran#ed anda3r0ed 4$ SC

@. On "ug )6, )+7*, #e 'ro'er#ies adudica#ed #o Juliana in #e 'roec# o& 'ar#i#ionere 8nall$ delivered #o #e es#a#e o& said eir u'on #e 8ling o& a 4ond o& P2*,***. I#also ruled #a# as #e 'e#i#ion o& %ransciso and iguel Da$co 0ade 0en#ion o& cer#ain'ro'er#ies allegedl$ 4elonging #o #e in#es#a#e, said 'e#i#ion sould 4e 'ro'erl$considered i# #e 8nal accoun#s o& #e ad0inis#ra#or

7. On "ug 2-, )+7), Crisan#o 8led is a0ended s#a#e0en# o& accoun#s covering #e'eriod &ro0 arc ), )+@ #o Jul$ ), )+@+, ic soed a cas 4alance o& P6,66*. "n addi#ional s#a#e0en# o& accoun#s 8led on "ug ), )+6) &or #e 'eriod o& "ug

), )+@+ #o "ug ), )+7) soed a cas 4alance &o P7,


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-. On Oc# @, )+7), #e ad0inis#ra#or 8led a re'l$ #o said o''osi#ion con#aining acoun#erclai0 &or 0oral da0ages agains# all #e eirs o& uin#in ic as ad0i##ed4$ #e cour#. Te ad0inis#ra#or la#er on 8led an a0ended coun#erclai0 i0'leading#e counsel &or #e o''osi#ors as de&endan#, ic as denied 4$ #e loer cour#

ISSUE: AON a clai0 &or 0oral da0ages 0a$ 4e en#er#ained in a 'roceeding &or #e

se##le0en# o& an es#a#e

R=1IN(: No, 4ecause a 'ro4a#e cour# is ves#ed i# li0i#ed urisdic#ion onl$.

RATIO: Te s'ecial 'roceeding a# #e C%I Ri!al as ins#i#u#ed &or #e 'ur'ose o& se##ling #ein#es#a#e es#a#e o& arcelo de Bora. In #a5ing cogni!ance o& #e case, #e cour# as clo#edi# li0i#ed urisdic#ion ic canno# e'and #o colla#eral 0a##ers no# arising ou# o& or inan$ a$ rela#ed #o #e se##le0en# and adudica#ion o& #e 'ro'er#ies o& #e deceased, &or i#is a se##led rule #a# #e urisdic#ion o& a 'ro4a#e cour# is li0i#ed and s'ecial. "l#oug #ereis a #endenc$ no #o rela #is rule and e#end #e urisdic#ion o& #e 'ro4a#e cour# inres'ec# #o 0a##ers inciden#al and colla#eral #o #e eercise o& i#s recogni!ed 'oers, #issould 4e unders#ood #o co0'reend onl$ cases rela#ed #o #ose 'oers s'eci8call$ alloed4$ #e s#a#u#es.

C"B: I# as in #e ac5noledg0en# o& i#s li0i#ed urisdic#ion #a# #e loer cour# dis0issed#e ad0inis#ra#ors coun#erclai0 &or 0oral da0ages agains# #e o''osi#ors, 'ar#icularl$agains# arcela o allegedl$ u##ered deroga#or$ re0ar5s in#ended #o cas# disonor agains##e ad0inis#ra#or so0e#i0e in )+7* or )+7). " coun#erclai0 &or 0oral da0ages de0anded4$ an ad0inis#ra#or agains# #e eirs &or alleged u##erances is an e#raneous 0a##er in a#es#a#e or in#es#a#e 'roceedings &or #e reason #a#: #e s'eed$ se##le0en# o& #e es#a#e o& #e deceased 'ersons &or #e 4ene8# o& #e credi#ors and #ose en#i#led #o #e residue 4$a$ o& ineri#ance or legac$ aer #e de4#s and e'enses o& ad0inis#ra#ion ave 4een 'aid,is #e ruling s'iri# o& ou# 'ro4a#e la.

ISSUE: AON #e counsel &or a 'ar#$ in a case 0a$ 4e included as a de&endan# in acoun#erclai0

R=1IN(: No, a counsel 0a$ no# 4e included.RATIO: Te &ac# #a# #e la$er re'resen#s #e in#eres#s o& is clien# or #a# e ac#s in #eir4eal& ill no# old i0 lia4le &or or 0a5e i0 en#i#led #o an$ aard #a# #e Cour# 0a$adudica#e #o #e 'ar#ies, o#er #an is 'ro&essional &ees.

ISSUE: Aa# 0a$ 4e considered as ac#s o& 0alad0inis#ra#ion and e#er anad0inis#ra#or, as #e one in #e case a# 4ar, 0a$ 4e eld accoun#a4le &or an$ loss orda0age #a# #e es#a#e under is ad0inis#ra#ion 0a$ incur 4$ reason o& is negligence, 4ad&ai# or ac#s o& 0alad0inis#ra#ion

R=1IN(: Ges, ad0inis#ra#or 0a$ 4e eld accoun#a4le

RATIO: Re: 9a a 6>door 4uilding, 94 'arcel o& land, 9c Jun#a sec#ion o& #e Hacienda Jalaala

or #e inco0e o& #e 'ro'er#$ devo#ed #o rice cul#iva#ion and 9d rice8elds, #e ad0inis#ra#orre'or#ed ei#er no re#urns or lesser inco0e #an #e ac#ual &rui#s incurred 4$ #e es#a#e &ro0#e use #e a&ore0en#ioned 'ro'er#ies.

SC: "er a 'ro#rac#ed and e#ensive earing on #e 0a##er, #e Cour#, 8nding #ead0inis#ra#or, Dr. Crisan#o de Bora, guil#$ o& cer#ain ac#s o& 0alad0inis#ra#ion, eld i0lia4le &or #e 'a$0en# #o #e o''osi#ors, #e eirs o& uin#in de Bora, o& )F@ o& #eunre'or#ed inco0e ic #e es#a#e sould ave received. Hence, e is lia4le &or: 9aP-,*


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94)2,)-7.** 9c )6,)).+7 and 9d ,72.-7.

Te SC relied on #e evidence 'resen#ed 4$ #e o''osi#ors 9i.e. #es#i0on$ o& 1auro "guila,#es#i0on$ o& Narciso Pun!al o as ins#ruc#ed 4$ a''ellan# #o #es#i&$ in cour# #a# e as#e overseer o& #e a$a'$a' 'ro'er#$ &or uin#in de Bora &ro0 )+->)+@@, delivering #e$earl$ 'roceeds o& ),*** cavanes o& Pala$ #o Rogelio 1i0aco, and #es#i0on$ o& Basilio Javier

o or5ed as a #enan# in #e land o& Juliana de Bora ic is near #e land 4elonging #o#e In#es#a#e, #e 2 'ro'er#ies 4eing se'ara#ed onl$ 4$ a river. He 5ne #e #enan#s and #e$ields.

TOPIC: 1IST O% CH"R(ES disalloed 4$ #e cour# &or 4eing unau#ori!ed and i0'ro'er

Re: 9e loss su?ered 4$ #e In#es#a#e 4ecause o& #e surcarges and 'enal#ies #a# ad #o 4e'aid 4ecause o& ad0inis#ra#orKs negligence #o 'a$ #aes on #i0e, #e o''osi#ors 'resen#ed'roo& #a# #e ad0inis#ra#or received &ro0 Juliana de Bora #e su0 o& P2*,@-7.)- #oge#eri# cer#ain 'a'ers 'er#aining #o #e in#es#a#e, aside &ro0 #e cec5s in #e na0e o& uin#inde Bora.

SC: %or is &ailure #o 'a$ #e #aes on #e 4uilding a# "!carraga &or )+@-, )+@< and )+@+,said 'ro'er#$ as sold a# 'u4lic auc#ion and #e ad0inis#ra#or ad #o redee0 #e sa0e a#P,2+7.@


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ad0inis#ra#or #o do ould ave 4een #o secure #e 'revious au#ori!a#ion &ro0 #e Cour# i& e &ailed #o secure #e el' o& #e local 'olice. 1ia4le &or 66.2


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Te 'ro4a#e Cour# also ordered #e ad0inis#ra#or #o render an accoun#ing o& isad0inis#ra#ion during #e Ja'anese occu'a#ion on #e ground #a# al#oug a''ellan#0ain#ained #a# a#ever 0one$ e received during #a# 'eriod is or#less, #e sa0eaving 4een declared i#ou# an$ value. Ae see no 'rac#ical reason &or re;uiring a''ellan##o accoun# &or #ose occu'a#ion $ears en ever$#ing as a?ec#ed 4$ #e a4nor0alcondi#ions crea#ed 4$ #e ar.

TOPIC: COPENS"TION

I# is no# dis'u#ed #a# #e ad0inis#ra#or se# aside &or i0sel& and collec#ed &ro0 #e es#a#e#e su0 o& P),2+@ as is &ees &ro0 )+@7 #o )+7) a# #e ra#e o& P2,@** a $ear. Tere is nocon#rovers$ as #o #e &ac# #a# #is a''ro'ria#ed a0oun# as #a5en i#ou# #e order or'revious a''roval 4$ #e 'ro4a#e Cour#. Nei#er is #ere an$ dou4# #a# #e ad0inis#ra#ion o& #e In#es#a#e es#a#e 4$ Crisan#o de Bora is &ar &ro0 sa#is&ac#or$. Ge# i# is a &ac# #a# Crisan#ode Bora eercised #e &unc#ions o& an ad0inis#ra#or and is en#i#led also #o a cer#ain a0oun#as co0'ensa#ion &or #e or5 and services e as rendered as suc. No, considering #ee#en# and si!e o& #e es#a#e, #e a0oun# involved and #e na#ure o& #e 'ro'er#ies underad0inis#ra#ion, #e a0oun# collec#ed 4$ #e ad0inis#ra#or &or is co0'ensa#ion a# P2** a0on# is no# unreasona4le and sould #ere&ore 4e alloed.

DISPOSITIVE: Te decision a''ealed &ro0 is 0odi8ed 4$ reducing #e a0oun# #a# #ead0inis#ra#or as sen#enced #o 'a$ #e o''osi#ors #o #e a0oun# o& P@6, 2)*.-< 9ins#ead o& P


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&oreign in 'ro4a#e 'roceedings sould no# 4e encouraged &or #o do o#erise ould runcoun#er #o #e clear in#en#ion o& #e la.

7. EQEC=TOR "ND "DINISTR"TORS "CTS O% "DINISTR"TOR CONSIDERED"1"DINISTR"TION "CCO=NT"BI1ITG %OR 1OSS OR D""(E. Aere #e records arere'le#e i# ins#ances o& igl$ irregular 'rac#ices o& #e ad0inis#ra#or suc as #e

're#ended ignorance o& #e necessi#$ o& a 4oo5 or ledger or a# leas# a lis# o& cronologicaland da#ed en#ries o& 0one$ or 'roduce #e in#es#a#e ac;uired and #e a0oun# o& dis4urse0en# 0ade &or #e sa0e 'ro'er#ies #a# ad0i##edl$ #e ad0inis#ra#or did no# aveeven a lis# o& #e na0es o& #e lessees o& #e 'ro'er#ies under is ad0inis#ra#ion, nor even alis# o& #ose o oed 4ac5 ren#als, and 0iing #e &unds o& #e es#a#e under isad0inis#ra#ion i# is 'ersonal &unds ins#ead o& 5ee'ing a curren# accoun# &or #e In#es#a#ein is ca'aci#$ as ad0inis#ra#or, in suc ins#ances #e 'ro4a#e Cour# is us#i8ed in 8ndingi0 guil#$ o& ac#s o& 0alad0inis#ra#ion and in olding i0 accoun#a4le &or loss or da0age #oIn#es#a#e.

(1/)TESTATE OF RUDOCINDO ADAPON% PEDRO ADAPON as a>i7is!#a!"#3a665lla7! @.FELISA MARALIT as "66"si!"#3a665ll55% ; P0IL +/+ (1'*)EN B"NC: "vancena, Villa>real, I0'erial, Dia!, Conce'cion, concurringPONENTE: J. 1aurel

(. (arcia and Jose Nava &or a''ellan#.(odo&redo Re$es &or a''ellee.

NATURE:

FACTS: On Dec )6, )+6, Pedro "da'on 'resen#ed &or 'ro4a#e #e las# ill and #es#a0en# o& is &a#er Rudocindo "da'on 4e&ore C%I Ba#angas. Te ill as ad0i##ed #o 'ro4a#e andPedro "da'on, as eecu#or, 8led an inven#or$ o& #e 'ro'er#ies and asse#s o& #e es#a#e

). Te surviving s'ouse 4$ a second 0arriage, %elisa arali#, 8led a 'e#i#ion as5ing #ecour# #o 'a$ er a 0on#l$ alloance o& P7* and #o included addi#ional 'ro'er#iesic ere allegedl$ o0i##ed &ro0 #e inven#or$

2. "da'on, on #e o#er and, alleged #a# e oned #e 'ro'er#ies in dis'u#e andsould no# 4e included in #e inven#or$. Te 'ro4a#e cour# decided in &avor o& "da'on

ISSUE: AON #e cour#, ac#ing as 'ro4a#e cour#, could de#er0ine issues o& onersi'

R=1IN(: No.

RATIO: No. =nder Sec 7++ Code o& Civil Procedure, #e 'ro4a#e urisdic#ion o& C%I rela#esonl$ #o 0a##ers aving #o do i# #e se##le0en# o& es#a#es and 'ro4a#e o& ills o& deceased'ersons, #e a''oin# and re0oval o& guardians and #rus#ees, and #e 'oers, du#ies, andrig#s o& guardians and ards, #rus#ees and ces#uis ;ue #rus#. "s 0a$ 4e seen, #e la doesno# e#end #e urisdic#ion o& a 'ro4a#e cour# #o #e de#er0ina#ion o& ;ues#ions o& onersi'#a# arise during #e 'roceeding.

In #e case o& Bauer0ann v. Casas, #e SC eld #a# #e 0ere &ac# #a# one o& #e 'ar#ies isan eecu#or or ad0inis#ra#or o& a cer#ain es#a#e does no# give eclusive urisdic#ion #o #e


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'ro4a#e cour# erein #e es#a#e is 4eing se##led, o& ;ues#ions arising 4e#een suceecu#ors or ad0inis#ra#ors and #ird 'ersons, as #o #e onersi' o& s'eci8c 'ro'er#$.Aen i# is once de#er0ined #a# cer#ain 'ro'er#$ is #e 'ro'er#$ o& #e es#a#e, eclusive

urisdic#ion over #e ad0inis#ra#ion o& #e 'ro'er#$ ves#s in #e cour# erein #e es#a#e is4eing se##led, 4u# un#il #is ;ues#ion is decided #e 0ere allega#ion #a# cer#ain 'ro'er#$ is#e 'ro'er#$ o& an es#a#e in #e course o& ad0inis#ra#ion is no# su3cien# #o ous# all o#er

cour#s o& urisdic#ion over ;ues#ions #oucing #e onersi' o& suc 'ro'er#$ and rig#s4ased on #e rig# o& onersi'.

I# is an es#a4lised doc#rine #a# #e 0ere &ac# #a# one o& #e 'ar#ies is #e eecu#or orad0inis#ra#or o& #e es#a#e o& a deceased 'erson does no# con&er u'on #e 'ro4a#e cour#, inic #e 'roceedings &or #e dis#ri4u#ion and se##le0en# o& said es#a#e are 'ending,eclusive urisdic#ion #o decide all ;ues#ions #a# 0a$ arise 4e#een said eecu#or and #ird'ersons as #o #e #i#le o& s'eci8c 'ro'er#$.

DISPOSITIVE: Judg0en# is a3r0ed.

). EST"TES O% DECE"SED PERSONS EQTENT O% J=RISDICTION O% PROB"TE CO=RTSDETERIN"TION O% =ESTIONS O% OANERSHIP. =nder sec#ion 7++ o& #e Code o& CivilProcedure, #e 'ro4a#e urisdic#ion o& #e Cour# o& %irs# Ins#ance rela#es onl$ #o 0a##ersaving #o do i# L#e se##le0en# o& es#a#es and 'ro4a#e o& ills o& deceased 'ersons, #ea''oin#0en# and re0oval o& guardians and #rus#ees, and #e 'oer, du#ies, and rig#s o& guardians and ards, #rus#ees, and ces#uis ;ue #rus#.L "s 0a$ 4e seen, #e la does no#e#end #e urisdic#ion o& a 'ro4a#e cour# #o #e de#er0ina#ion o& ;ues#ions o& onersi' #a#arise during #e 'roceeding.

(1)VICTORIA BRINGAS PEREIRA V. COURT OF APPEALS a7 RITA PEREIRA NAGAC% 1,'SCRA 1' (1/))ST DIVISION:Narvasa, Cru!, (rino>";uino, edialdea, concurringPONENTE: J. (anca$co

Bena0in J. ui#oriano &or 'e#i#ioner.1in!ag>"rcilla / "ssocia#es 1a O3ces &or 'riva#e res'onden#.

NATURE: Pe#i#ion &or revie on cer#iorari

FACTS: "ndres de (u!0an Pereira, an e0'lo$ee o& Pili''ine "irlines, 'assed aa$ on Jan, )+


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a. Te dea# 4ene8#s &ro0 P"1, P"1E", PES"1" and SSS 4elong eclusivel$ #oer as sole 4ene8ciar$

4. "ndres 4an5 de'osi#s ad 4een used #o de&ra$ #e &uneral e'ensesc. Te onl$ real 'ro'er#$ o& #e deceased as 4een e#raudiciall$ se##led

4e#een 'e#i#ioner and 'riva#e res'onden# as #e onl$ surviving eirs o& #edeceased

. Priva#e res'onden# Ri#a on #e o#er and, argued #a# i# is no# &or 'e#i#ioner #odecide a# 'ro'er#ies &or0 'ar# o& #e es#a#e o& #e deceased and #o a''ro'ria#e#e0 &or ersel&

ISSUE: AON #ere eis#s an es#a#e o& #e deceased &or 'ur'oses o& ad0inis#ra#ion

R=1IN(: Te resolu#ion o& #is issue is 4e##er le #o #e 'ro4a#e cour# 4e&ore ic #ead0inis#ra#ion 'roceedings are 'ending

RATIO: Te #rial cour# is in #e 4es# 'osi#ion #o receive evidence on #e deceden#s es#a#e,#e valua#ions #ereo& and #e rig#s o& #e #rans&erees o& so0e o& #e asse#s, i& an$.Hoever, #e cour#s de#er0ina#ion is onl$ 'rovisional in carac#er, no# conclusive, and issu4ec# #o #e 8nal decision in a se'ara#e ac#ion ic 0a$ 4e ins#i#u#ed 4$ #e 'ar#ies.

ISSUE: AON a udicial ad0inis#ra#ion 'roceeding is necessar$ ere #e deceden# le node4#s

R=1IN(: No.

RATIO: "ssu0ing #ere eis#s asse#s o& #e deceden# &or 'ur'oses o& ad0inis#ra#ion, #e SCeld #e ad0inis#ra#ion 'roceedings ins#i#u#ed 4$ Ri#a Nagac are unnecessar$

Te general rule is #a# en a 'erson dies leaving 'ro'er#$, #e sa0e sould 4e udiciall$ad0inis#ered and #e co0'e#en# cour# sould a''oin# an ad0inis#ra#or, in #e orderes#a4lised in Rule -< Sec 6, in case #e deceden# le no ill, or in case e ad le one,sould e &ail #o na0e an eecu#or #erein. "n ece'#ion #o #is rule is es#a4lised in Rule -@Sec ) ic 'rovides #a# en all #e eirs are o& la&ul age and #ere are no de4#s due&ro0 #e es#a#e, #e$ 0a$ agree in ri#ing #o 'ar#i#ion #e 'ro'er#$ i#ou# ins#i#u#ing #e

udicial ad0inis#ra#ion or a''l$ing &or #e a''oin#0en# o& an ad0inis#ra#or.

Rule -@ Sec ) ROC, oever, does no# 'reclude #e eirs &ro0 ins#i#u#ing ad0inis#ra#ion'roceedings, even i& #e es#a#e as no de4#s or o4liga#ions, i& #e$ do no# desire #o resor# &orgood reasons #o an ordinar$ ac#ion &or 'ar#i#ion. Aere 'ar#i#ion is 'ossi4le, ei#er in or ou#o& cour#, #e es#a#e sould no# 4e 4urdenedic is ala$s long and cos#l$i# anad0inis#ra#ion 'roceeding i#ou# good and co0'elling reasons.

Aa# cons#i#u#es good reasons #o arran# a udicial ad0inis#ra#ion o& #e es#a#e o& adeceased en #e eirs are all o& legal age and #ere are no credi#ors ill de'end on #ecircu0s#ances o& eac case.

C"B: Tere is no reason #o a''l$ #is #o #e case a# 4ar. Tere are onl$ 2 surviving eirs. Te'ar#ies ad0i# #ere are no de4#s o& #e deceased #o 4e 'aid. Te onl$ conceiva4le reason$ Ri#a Nagac see5s a''oin#0en# as ad0inis#ra#or is &or er #o o4#ain 'ossession o& #ealleged 'ro'er#ies &or er on 'ur'oses, since #e sa0e are 'resen#l$ in #e ands o& Vic#oria o su''osedl$ dis'osed o& #e0 &raudulen#l$. Tis is no# co0'elling reason a# all.

DISPOSITIVE: 1e##ers o& ad0inis#ra#ion issued 4$ RTC Bacoor #o Ri#a Nagac are revo5ed andad0inis#ra#ion 'roceeding dis0issed i#ou# 'reudice #o #e rig# o& Nagac #o co00ence ane ac#ion &or 'ar#i#ion.


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(&*)MANOTOK REALTY INC V. COURT OF APPEALS a7 APOLONIO SIO4O% 1' SCRA +,;(1/,)2ND DIVISION: %ernan, Padilla, Bidin Cor#es, Paras, concurringPONENTE: J. (u#ierre!

NATURE: "''eal 4$ a$ o& cer#iorari see5ing #o se# aside #e C" decision ic reversed#e decision o& RTC and u'eld #e sale o& #e su4ec# 'ro'er#$ in &avor o& Sioo

FACTS: On Nov 2), )+)7), C%I anila, as 'ro4a#e cour# in #e s'ecial 'roceedings o& #e#es#a#e es#a#e o& Clara Ta04un#ing de 1egarda, au#ori!ed Vicen#e 1egarda, as s'ecial co>ad0inis#ra#or, #o sell #e 1egarda>Ta04un#ing su4division &or P7* s;0 su4ec# #o cour#a''roval

). Vicen#e allegedl$ sold 9Dec )*, )+72 a4ou# 2


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+. Pe#i#ioner argued #a# #e recei'# evidencing #e sale 4$ Vicen#e #o 1ucero does no#con&or0 #o #e legal re;uire0en#s o& a con#rac# o& sale and #a# #e sale necessi#a#edcour# a''roval 4ecause #e sa0e as no# in accordance i# #e #er0s s'eci8ed in#e au#ori!a#ion #o sell 4$ #e 'ro4a#e cour#

ISSUE: AON #e sale o& #e 'ro'er#ies o& #e deceden# re;uire a''roval o& #e 'ro4a#e cour#

R=1IN(: Ges.

RATIO: "n ad0inis#ra#or under #e circu0s#ances o& #is case canno# eno$ 4lan5e#au#ori#$ #o dis'ose o& real es#a#e as e 'leases, es'eciall$ en e ignores s'eci8cdirec#ives #o eecu#e 'ro'er docu0en#s and ge# cour# a''roval &or #e sales validi#$.

"s eld in Es#a#e o& Olave v. Re$es: Rule - Sec ) ROC e'ressl$ 'rovides #a# #e cour# 8rs##a5ing cogni!ance o& #e se##le0en# o& #e es#a#e o& a deceden#, sall eercise urisdic#ion #o#e eclusion o& all o#er cour#s. Te la is clear #a# ere #e es#a#e o& #e deceden# isalread$ #e su4ec# o& a #es#a#e or in#es#a#e 'roceeding, #e ad0inis#ra#or canno# en#er in#oan$ #ransac#ion involving i# i#ou# 'rior a''roval o& #e 'ro4a#e cour#.

Te au#ori#$ gran#ed 4$ #e 'ro4a#e cour# in #e case a# 4ar s'eci8call$ ordered 1egarda #osu40i# #e docu0en# o& sale &or i#s a''roval. Since #e sale as i#ou# #e a''roval o& #e'ro4a#e cour#, #e eecu#ion o& #e necessar$ docu0en#s did no# 4ind #e Ta04un#ing es#a#eand could no# ave a?ec#ed #e rig#s o& #e 'e#i#ioner over #e lo#. %ur#er0ore, Sioo isonl$ a #rans&eree o& 1ucero. "# #e #i0e o& #e #rans&er o& rig#s, Sioo alread$ ad no#ice o& ano#o5s onersi' 4ecause e as served i# su00ons in #e eec#0en# case. orei0'or#an#l$, e is dee0ed #o ave cons#ruc#ive no#ice o& suc onersi' &ro0 #e #i0e #e'e#i#ioner as a4le #o secure a #i#le over said 'ro'er#$ in )+7+.

DISPOSITIVE: C" decision is reversed and se# aside. Te decision o& C%I anila isreins#a#ed.

). CIVI1 1"A CONTR"CTS S"1E =ST BE EBODIED IN " P=B1IC INSTR=ENT "NDD=1G RE(ISTERED TO BE BINDIN( "("INST THIRD PERSONS C"SE "T B"R. Te allegedsale 0ade 4$ 1egarda #o 1ucero sould ave 4een e04odied in a 'u4lic ins#ru0en# inaccordance i# "r#icle )7< o& #e Civil Code and sould ave 4een dul$ regis#ered i##e Regis#er o& Deeds #o 0a5e i# 4inding agains# #ird 'ersons. Te au#ori#$ given 4$ #e'ro4a#e cour# #o 1egarda s'eci8call$ re;uired #e eecu#ion o& necessar$ docu0en#s. 1ucerono# onl$ &ailed #o o4#ain a deed o& sale &ro0 1egarda 4u# also &ailed #o secure an$ 5ind o& ri#ing evidencing #e con#rac# o& sale o#er #an #e recei'# issued 4$ 1egardaac5noledging #e a0oun# o& P2**.**. . . . Te Cour# ruled #a# #e alleged sale 0ade 4$1egarda #o 1ucero did no# 4ind #e 1egarda>Ta04un#ing es#a#e, 0uc less, #e 'e#i#ioner oac;uired #e 'ro'er#$ in dis'u#e i# #e a''roval o& #e 'ro4a#e cour# and in a sole relianceon #e clean #i#le o& #e said 'ro'er#$.

2. REEDI"1 1"A SPECI"1 PROCEEDIN(S S"1E O% IOV"B1E PROPERTG O%DECEDENT "PPROV"1 O% PROB"TE CO=RT NECESS"RG C"SES O% EST"TE O% O1"VE VS.

REGES "ND VD". DE (I1 VS. C"NCIO CITED. Ae also 8nd #a# #e a''ella#e cour#co00i##ed an error o& la en i# eld #a# #e sale o& #e lo# in ;ues#ion did no# need #ea''roval o& #e 'ro4a#e cour#. "l#oug #e Rules o& Cour# do no# s'eci8call$ s#a#e #a# #esale o& an i00ova4le 'ro'er#$ 4elonging #o an es#a#e o& a deceden#, in a s'ecial 'roceeding,sould 4e 0ade i# #e a''roval o& #e cour#, #is au#ori#$ is necessaril$ included in i#sca'aci#$ as a 'ro4a#e cour#. "n ad0inis#ra#or under #e circu0s#ances o& #is case canno#eno$ 4lan5e# au#ori#$ #o dis'ose o& real es#a#e as e 'leases, es'eciall$ ere e ignoress'eci8c direc#ives #o eecu#e 'ro'er docu0en#s and ge# cour# a''roval &or #e saleKs validi#$.In #e case o& Es#a#e o& Olave v. Re$es 9)2 SCR" -6-, --2, e ruled: LSec#ion ), Rule - o&


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#e Rules o& Cour#, e'ressl$ 'rovides #a# K#e cour# 8rs# #a5ing cogni!ance o& #ese##le0en# o& #e es#a#e o& a deceden#, sall eercise urisdic#ion #o #e eclusion o& all o#ercour#s.K Te la is clear #a# ere #e es#a#e o& #e deceased 'erson is alread$ #e su4ec#o& a #es#a#e or in#es#a#e 'roceeding, #e ad0inis#ra#or canno# en#er in#o an$ #ransac#ioninvolving i# i#ou# 'rior a''roval o& #e 'ro4a#e cour#.L "lso, in Vda. de (il v. Cancio 9)@SCR" -+6, a''ellan#s.%eria, %eria, 1ug#u / 1aO &or de&endan#>a''ellee

NATURE: "''eal 4$ 'lain#i?s Rose Bus alig e# al &ro0 #o orders o& C%I anila in CivilCase no 7)6+, #e 8rs# dis0issing #e co0'lain# and #e second den$ing #e R

FACTS: On Se'# )*, )+62, 'lain#i?s Rose Bus alig e# al 8led a co0'lain# alleging #a#

#e$ are #e ac5noledged na#ural cildren and #e onl$ eirs o& Jon T. Bus and "'oloniaPere!, o coa4i#ed &ro0 )+2 #o "ug )+@)

). alig alleged #a# 'riva#e res'onden# aria San#os Bus &alsel$ alleged se as #elegal i&e o& #e deceden# and as suc as a4le #o secure er a''oin#0en# asad0inis#ra#or o& #e deceden#s es#a#e

a. Te deceden# 'ur'or#edl$ le a ill 4e;uea#ing is es#a#e #o: aria San#osBus, "ni#a Bus and "nna Berger

4. Ta# 'lain#i?s onl$ discovered #e &raud and 0isre'resen#a#ion onl$ in Jul$)+62


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2. Plain#i?s 'ra$ed #a# #e 'roec# &or 'ar#i#ion 4e annulled and #a# Bus 4e re;uired#o su40i# a co0'le#e inven#or$ and accoun#ing o& all #e 'ro'er#ies le 4$ #edeceased and adudica#ing #o #e 'lain#i?s #eir legal 'ar#ici'a#ion

. De&endan# Bus 0oved #o dis0iss, alleging lac5 o& cause o& ac#ion, res udica#a ands#a#u#e o& li0i#a#ions as de&enses. Te 'lain#i?s o''osed and Bus su4se;uen#l$ 8leda re'l$ #o #e o''osi#ion

@. On Jan )*, )+6, #e loer cour# denied #e 0o#ion. In er anser, Bus denied all#e 0a#erial aver0en#s o& #e co0'lain# and invo5ed laces, res udica#a and s#a#u#eo& li0i#a#ions as a3r0a#ive de&enses

7. 9"er #e issues ere oined, #e earing as 'os#'oned u'on #e de&endan#s0ani&es#a#ion #a# se ould 8le a 0o#ion #o dis0iss. In er 0o#ion, se callenged#e urisdic#ion o& #e cour# arguing #a# since #e ac#ion as #o annul #e 'roec# o& 'ar#i#ion a''roved 4$ #e 'ro4a#e cour#, #e 'ro4a#e cour# ad urisdic#ion over #ecase under Rule -7 Sec ) ROC.

6. Te loer cour# gran#ed #e 0o#ion and dis0issed #e co0'lain# on #e ground #a##e ac#ion ad 'rescri4ed. Plain#i?s alig 8led R 4u# as denied

ISSUE: AON #e loer cour# can dis0iss an ac#ion on a ground no# alleged in #e 0o#ion #odis0iss

R=1IN(: No.

RATIO: Rule < Sec ) ROC enu0era#es #e grounds u'on ic an ac#ion 0a$ 4e dis0issed,and i# s'eci8call$ 'rovides #a# a 0o#ion #o #is end 4e 8led. "s suc, #e loer cour# ad no'oer #o dis0iss #e case i#ou# #e re;uisi#e 0o#ion dul$ 'resen#ed. Te &ac# #a# #e'ar#ies 8led 0e0oranda u'on #e cour#s indica#ion or order in ic #e$ discussed #e'ro'osi#ion #a# #e ac#ion as unnecessar$ and as i0'ro'erl$ 4roug# ou#side andinde'enden#l$ o& #e case did no# su''l$ #e de8cienc$. Rule * 'rovides &or #e cases inic an ac#ion 0a$ 4e dis0issed, and #e inclusion o& #ose #erein 'rovided ecludes an$o#er. Te onl$ ins#ance in ic #e cour# 0a$ dis0iss an ac#ion 0o#u 'ro'rio is en #e'lain#i? &ails #o a''ear a# #e #i0e o& #e #rial or #o 'rosecu#e is ac#ion &or an unreasona4leleng# o& #i0e, or #o co0'l$ i# #e Rules or an$ order o& #e cour#.

C"B: "l#oug #e TD ad 4een 'resen#ed 4$ Bus #e resolu#ion o& #e cour# in gran#ing#e sa0e as 4ased u'on a ground no# allegedl$ in said 0o#ion. Bu# assu0ing #e loercour# could 'ro'erl$ consider #e ;ues#ion o& 'rescri'#ion, #e sa0e s#ill did no# a''ear #o 4eindu4i#a4le on #e &ace o& #e allega#ions o& #e co0'lain#.

ISSUE: AON #e #rial cour# ad urisdic#ion over #e case

R=1IN(: No.

RATIO: Rule - Sec ) ROC 8es urisdic#ion &or 'ur'oses o& s'ecial 'roceeding &or #ese##le0en# o& #e es#a#e o& #e deceased so &ar as i# de'ends on #e 'lace o& residence o& #e deceased, or o& #e loca#ion o& #e es#a#e. Te 0a##er reall$ concerns venue, as #eca'#ion o& Rule - Sec ) indica#es, and in order #o 'reclude di?eren# cour#s ic 0a$

'ro'erl$ assu0e urisdic#ion &ro0 doing so, #e Rule s'eci8es #a# #e cour# 8rs# #a5ingcogni!ance o& #e se##le0en# o& #e es#a#e o& #e deceased, sall eercise urisdic#ion #o #eeclusion o& all o#er cour#s.

Te 'resen# ac#ion is no# &or #e annul0en# o& a 'ar#i#ion alread$ 0ade and a''roved 4$ #e'ro4a#e cour# and #o reo'en #e es#a#e 'roceeding so #a# a ne 'ar#i#ion 0a$ 4e 0ade, 4u#&or recover$ o& #e 'lain#i?s 'or#ion o& #eir alleged ineri#ance ic #e$ ave 4eende'rived o& #roug &raud.


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DISPOSITIVE: Orders a''ealed &ro0 are se# aside and case re0anded &or &ur#er'roceedings

). REEDI"1 1"A PROCED=RE DISISS"1 O% "CTION CO=RT "G NOT DISISS "N"CTION ON " (RO=ND NOT "11E(ED IN THE OTION TO DISISS. Te 8rs# 0o#ion #odis0iss, alleging lac5 o& cause o& ac#ion, res udica#a and s#a#u#e o& li0i#a#ions as denied.

Te second 0o#ion rei#era#ed none o& #ese grounds and raised onl$ #e ;ues#ion o& urisdic#ion. Te cour# gran#ed #e 0o#ion and dis0issed #e co0'lain#, no# on #e groundrelied u'on 4$ #e de&endan# 4u# 4ecause #e ac#ion ad 'rescri4ed. Held: Te order sould4e se# aside and #e case re0anded &or &ur#er 'roceedings. Te loer cour# canno# dis0issan ac#ion on a ground no# alleged in #e 0o#ion #o dis0iss.

2. ID. SETT1EENT O% EST"TE CO=RT TH"T H"S J=RISDICTION OVER SETT1EENT. Sec#ion ) o& Rule -7 o& #e Rules o& Cour# 8es urisdic#ion &or 'ur'oses o& #e s'ecial'roceeding &or #e se##le0en# o& #e es#a#e o& a deceased 'erson, Lso &ar as i# de'ends on#e 'lace o& residence o& #e deceden#, or o& #e loca#ion o& is es#a#e.L Te 0a##er reall$concerns venue, as #e ca'#ion o& Rule ci#ed indica#es, and in order #o 'reclude di?eren#cour#s ic 0a$ 'ro'erl$ assu0e urisdic#ion &ro0 doing so, #e Rule s'eci8es #a# L#ecour# 8rs# #a5ing cogni!ance o& #e se##le0en# o& #e es#a#e o& a deceden#, sall eercise

urisdic#ion #o #e eclusion o& all o#er cour#s.L

(&&)GIACOMINA MARINI3GON2ALES V. 0ON. GUARDSON LOOD% 6#5sii7< ?u


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NATURE: Pe#i#ion &or cer#iorari #o annul and se# aside orders issued 4$ res'onden# udge1ood o& C%I Pasig on 9) %e4 )2, )+-2, den$ing 'e#i#ioners o0ni4us 0o#ion 92 arc 27,)+-2 a''oin#ing Eliseo ari as legal re'resen#a#ive o& deceased Ra&ael (on!ales 9 "'ril)@, )+-2, den$ing 'e#i#ioners R o& %e4 )2 and 9@ a$ )-, )+-2, den$ing 'e#i#ioners Ro& arc 27 order

FACTS: On Se'# )+, )+6+, 'e#i#ioner (iaco0ina arini>(on!ales 9re'resen#ed 4$ad0inis#ra#or Nor4er#o uisu04ing 8led a co0'lain# agains# er us4and Ra&ael (on!alese# al, &or #e annul0en# o& allegedl$ &raudulen# sale o& various 'ro'er#ies 9real and 'ersonal,ic i0'aired er in#eres# in #e conugal 'ar#nersi' 'ro'er#ies

1. In is anser, Ra&ael (on!ales clai0ed #a# all #e conugal 'ro'er#ies in is'ossession ere no# used in an$ a$ or #rans&erred #o #e o#er de&endan#s and #a##e 'ro'er#ies o& #e co>de&endan#s ere no# derived &ro0 #e conugal 'ro'er#ies eoned i# (iaco0ina

&. %or #eir 'ar#, "ngeles e# al alleged #a# #e dis'u#ed 'ro'er#ies ere no# ac;uiredi# #e conugal &ounds o& (on!ales

+. "er #e 're>#rial con&erence, Ra&aels de'osi#ion as #a5en in vie o& isde#eriora#ing eal#. His de'osi#ion, oever, as no# co0'le#ed 4ecause e died onSe'# 7, )+-*

'. On Se'# 27, )+-*, 'e#i#ioner 8led a No#ice o& Dea# o& Par#$ and O0ni4us o#ion,no#i&$ing #e cour# o& #e dea# o& Ra&ael, and o& er a''oin#0en# as s

Documents

Rule 73 Venue and Process Digests