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Orpiano v. Spouses Tomas
Orpiano v. Spouses Tomas
DECISION
DEL CASTILLO , J : p
On March 19, 1996, Alejandro sold the lot on installment basis to respondent spouses
Antonio and Myrna Tomas (the Tomas spouses) for P12,170,283.00. That very same day,
a new title — TCT No. N-152326 — was issued in the name of the Tomas spouses despite
the fact that the purchase price has not been paid in full, the spouses having been given
until December of that same year to complete their payment.
On October 28, 1996, Alejandro led Civil Case No. Q-96-29261 (the collection case) in the
Regional Trial Court (RTC) of Quezon City, Branch 226 (the collection court), seeking
collection of the balance of the price in the amount of P4,314,100.00 supposedly left
unpaid by the Tomas spouses, with damages. 4
During the pendency of the collection case, Alejandro passed away. His heirs, Estrella
included, were substituted in his stead in the collection case. Estrella moved to amend the
Complaint to one for rescission/annulment of sale and cancellation of title, but the court
denied her motion. She next moved to be dropped as party plaintiff but was again
rebuffed.
On June 11, 2005, Estrella led Civil Case No. Q-05-56216 (the annulment case) for
annulment of the March 1996 sale and cancellation of TCT No. N-152326, with damages,
against the Tomas spouses and the Register of Deeds of Quezon City which was
impleaded as a nominal party. 5 The case was raf ed to Branch 97 of the Quezon City RTC
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(the annulment court). In her Complaint, Estrella claimed that the 1979 declaration of her
absence and accompanying authority to sell the lot were obtained by Alejandro through
misrepresentation, fraud and deceit, adding that the May 1979 JDRC Decision was not
published as required by law and by the domestic relations court. Thus, the declaration of
absence and Alejandro's authority to sell the lot are null and void. Correspondingly, the
ensuing sale to the Tomas spouses should be voided, and TCT No. N-152326 cancelled.
In their Answer to the annulment Complaint, the Tomas spouses prayed for the dismissal
thereof on the ground of forum shopping, arguing that the ling of the annulment case was
prompted by the denial of Estrella's motion initiated in the collection case to amend the
Complaint to one for annulment of sale. The annulment case is Estrella's attempt at
securing a remedy which she could not obtain in the collection case. The Tomas spouses
added that the dismissal of the annulment case would preclude the possibility that the two
courts might render conflicting decisions.
After pre-trial in the annulment case, the court proceeded to tackle the issue of forum
shopping. The parties submitted their respective memoranda touching on the sole issue of
whether Estrella is guilty of forum shopping.
Ruling of the Regional Trial Court
On September 25, 2006, the trial court issued an Order 6 dismissing the annulment case. It
sustained the view taken by the Tomas spouses that Estrella led the annulment case only
because the collection court denied her motion to amend the case to one for annulment of
the sale, and thus the annulment case was Estrella's attempt at obtaining a remedy which
she could not secure in the collection case. It added that because the two cases involve
the same subject matter, issues, and parties, there indeed is a possibility that con icting
decisions could be rendered by it and the collection court, the possibility made even
greater because the two cases involve antithetical remedies.
Estrella moved for reconsideration but the court was unmoved.
Ruling of the Court of Appeals
On December 27, 2006, Estrella led with the CA a Petition for Certiorari 7 questioning the
September 25, 2006 Order of the annulment court. The appellate court, however, could not
be persuaded. Finding no grave abuse of discretion in the annulment court's dismissal of
the annulment case, the CA found that Estrella was indeed guilty of forum shopping in
ling the annulment suit while the collection case was pending. Applying the test
articulated in a multitude of decided cases — that where a nal judgment in one case will
amount to res judicata in another — it follows that there is forum shopping. The CA held
that a nal judgment in the collection case ordering the Tomas spouses to pay the
supposed balance of the price will necessarily result in a nding that the sale between
Alejandro and the Tomas spouses is a valid sale. This then would prevent a declaration of
nullity of the sale in the annulment case.
Accordingly, the CA dismissed Estrella's Petition for Certiorari. Her Motion for
Reconsideration was likewise denied, hence the present Petition.
Issue
The sole issue to be resolved in this case is whether there is indeed forum shopping.
Petitioner's Arguments
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Estrella argues that it was Alejandro and not she who initiated the collection case, and that
she, their two children, and Alejandro's four illegitimate children were merely substituted in
the case as his heirs by operation of law; thus, she should not be bound by the collection
case. She claims that in the rst place, she was not privy to Alejandro's sale of the lot to
the Tomas spouses. Having been unwillingly substituted in the collection case, she
forthwith moved to amend the Complaint in order to include, as one of the remedies
sought therein, annulment of the sale insofar as her conjugal share in the lot is concerned.
But the court denied her motion. Next, she moved to be dropped or stricken out as plaintiff
to the collection case, but again, the trial court rebuffed her.
Estrella maintains that on account of these repeated denials, she was left with no other
alternative but to institute the annulment case. She claims that since the collection case
does not further her interest — which is to seek annulment of the sale and recover her
conjugal share — and the collection court would not grant her motions to amend and to be
dropped or stricken out as party plaintiff therein, she thus has a right to maintain a suit to
have the sale annulled. It is therefore erroneous for the CA to state that she initiated the
annulment suit only for the purpose of obtaining a favorable ruling in said court, which she
could not achieve in the collection court.THaCAI
She further adds that there is obviously no identity of parties, cause of action, or reliefs
prayed for between the collection and annulment cases; the two involve absolutely
opposite reliefs. She stresses the fact that she is seeking annulment of the sale with
respect only to her conjugal share, and not those of her co-heirs.
Respondents' Arguments
The Tomas spouses, apart from echoing the trial court and the CA, emphasize that the rule
prohibiting forum shopping precisely seeks to avoid the situation where the two courts —
the collection court and the annulment court — might render two separate and
contradictory decisions. If the annulment case is allowed to proceed, then it could result in
a judgment declaring the sale null and void, just as a decision in the collection case could
be issued ordering them to pay the balance of the price, which is tantamount to a
declaration that the sale is valid.
They add that Estrella could no longer question the 1979 JDRC Decision, having failed to
challenge the same immediately upon obtaining notice thereof; she did not even bother to
have her declaration of absence lifted. They claim that after the lapse of 26 years,
prescription has nally set in. They likewise argue that if both cases are allowed to remain
pending, a ridiculous situation could arise where, after having paid the balance as ordered
by the collection court, they could lose not only the lot but also their payments in case a
decision in the annulment court is rendered nullifying and canceling the sale and ordering
the return of the lot to Alejandro's heirs, Estrella included.
Our Ruling
The petition must be denied.
"Forum shopping is de ned as an act of a party, against whom an adverse judgment or
order has been rendered in one forum, of seeking and possibly getting a favorable opinion
in another forum, other than by appeal or special civil action for certiorari. It may also be
the institution of two or more actions or proceedings grounded on the same cause on the
supposition that one or the other court would make a favorable disposition. . . . It is
expressly prohibited . . . because it tri es with and abuses court processes, degrades the
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administration of justice, and congests court dockets. A willful and deliberate violation of
the rule against forum shopping is a ground for summary dismissal of the case, and may
also constitute direct contempt." 8
Although the Court believes that Estrella was not prompted by a desire to tri e with
judicial processes, and was acting in good faith in initiating the annulment case, still the
said case should be dismissed because it produces the same effect which the rule on
forum shopping was fashioned to preclude. If the collection case is not dismissed and it,
together with the annulment case, proceeds to nality, not only do we have a possibility of
con icting decisions being rendered; an unfair situation, as envisioned by the Tomas
spouses, might arise where after having paid the balance of the price as ordered by the
collection court, the cancellation of the TCT and return of the property could be decreed by
the annulment court. Besides, allowing the two cases to remain pending makes litigation
simply a game of chance where parties may hedge their position by betting on both sides
of the case, or by ling several cases involving the same issue, subject matter, and parties,
in the hope of securing victory in at least one of them. But, as is already well known, the "
[t]rek to [j]ustice is not a game of chance or skill but rather a quest for truth . . . ." 9
Moreover, allowing Estrella to proceed with the annulment case while the collection case is
still pending is like saying that she may accept the deed of sale and question it at the same
time. For this is the necessary import of the two pending cases: joining as plaintiff in the
collection case implies approval of the deed, while suing to declare it null and void in the
annulment court entails a denunciation thereof. This may not be done. "A person cannot
accept and reject the same instrument" 1 0 at the same time. It must be remembered that
"the absence of the consent of one (spouse to a sale) renders the entire sale null and void,
including the portion of the conjugal property pertaining to the spouse who contracted the
sale." 1 1
The Court realizes the quandary that Estrella — motivated by the solitary desire to protect
her conjugal share in the lot from what she believes was Alejandro's undue interference in
disposing the same without her knowledge and consent — nds herself in. While raring to
le the annulment case, she has to rst cause the dismissal of the collection case because
she was by necessity substituted therein by virtue of her being Alejandro's heir; but the
collection court nonetheless blocked all her attempts toward such end. The collection
court failed to comprehend her predicament, her need to be dropped as party to the
collection case in order to pursue the annulment of the sale.
As plaintiff in the collection case, Estrella — though merely succeeding to Alejandro's
rights — was an indispensable party, or one without whom no nal determination can be
had in the collection case. 1 2 Strictly, she may not be dropped from the case. However,
because of her dual identity, rst as heir and second as owner of her conjugal share, she
has been placed in the unique position where she has to succeed to her husband's rights,
even as she must protect her separate conjugal share from Alejandro's perceived undue
disposition. She may not seek to amend the cause of action in the collection case to one
for annulment of sale, because this adversely affects the interests of her co-heirs, which is
precisely to obtain payment of the supposed balance of the sale price.
Nor may Estrella simultaneously maintain the two actions in both capacities, as heir in the
collection case and as separate owner of her conjugal share in the annulment case. This
may not be done, because, as was earlier on declared, this amounts to simultaneously
accepting and rejecting the same deed of sale. Nor is it possible to prosecute the
annulment case simultaneously with the collection case, on the premise that what is
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merely being annulled is the sale by Alejandro of Estrella's conjugal share. To repeat, the
absence of the consent of one spouse to a sale renders the entire sale null and void,
including the portion of the conjugal property pertaining to the spouse who contracted the
sale.
Undoubtedly, Estrella had the right to maintain the annulment case as a measure of
protecting her conjugal share. There thus exists a just cause for her to be dropped as party
plaintiff in the collection case so that she may institute and maintain the annulment case
without violating the rule against forum shopping. Unless this is done, she stands to lose
her share in the conjugal property. But the issue of whether the sale should be annulled is a
different matter altogether.
Under the Rules, parties may be dropped or added by order of the court on motion of any
party or on its own initiative at any stage of the action and on such terms as are just. 1 3
Indeed, it would have been just for the collection court to have allowed Estrella to
prosecute her annulment case by dropping her as a party plaintiff in the collection case,
not only so that she could protect her conjugal share, but also to prevent the interests of
her co-plaintiffs from being adversely affected by her con icting actions in the same case.
By seeking to be dropped from the collection case, Estrella was foregoing collection of her
share in the amount that may be due and owing from the sale. It does not imply a waiver in
any manner that affects the rights of the other heirs. IcTCHD
While Estrella correctly made use of the remedies available to her — amending the
Complaint and ling a motion to drop her as a party — she committed a mistake in
proceeding to le the annulment case directly after these remedies were denied her by the
collection court without rst questioning or addressing the propriety of these denials.
While she may have been frustrated by the collection court's repeated rejection of her
motions and its apparent inability to appreciate her plight, her proper recourse
nevertheless should have been to le a petition for certiorari or otherwise question the trial
court's denial of her motion to be dropped as plaintiff, citing just reasons which call for a
ruling to the contrary. Issues arising from joinder or misjoinder of parties are the proper
subject of certiorari. 1 4
In ne, we reiterate that considerations of expediency cannot justify a resort to procedural
shortcuts. The end does not justify the means; a meritorious case cannot overshadow the
condition that the means employed to pursue it must be in keeping with the Rules.
WHEREFORE , premises considered, the Petition is DENIED for lack of merit.
SO ORDERED.
Carpio, Brion, Perez and Perlas-Bernabe, JJ., concur.
Footnotes
Sec. 2. Parties in interest. — A real party 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. Unless otherwise authorized by law or these Rules, every action must be prosecuted
or defended in the name of the real party in interest.
Sec. 7. Compulsory joinder of indispensable parties. — Parties in interest without
whom no final determination can be had of an action shall be joined either as plaintiffs
or defendants.
14. See Sps. Perez v. Hermano, 501 Phil. 397, 408 (2005).