Judgment On The Pleadings
Judgment On The Pleadings
FERNANDO MEDICAL ENTERPRISES, INC. On June 24, 2009, the petitioner sent a
PETITIONER, VS. WESLEYAN UNIVERSITY demand letter to the respondent. Due to
PHILIPPINES, INC., RESPONDENT the respondent's failure to pay as
G.R. No. 207970 | January 20, 2016 | demanded, the petitioner filed its
BERSAMIN, J. complaint for sum of money in the RTC.
Digested by: Balabat, Venica Jaelyle P. The respondent moved to dismiss the
complaint upon the following grounds,
DOCTRINE: namely: (a) lack of jurisdiction over the
The trial court may render a judgment on the person of the defendant; (b) improper
pleadings upon motion of the claiming party venue; (c) litis pendentia; and (d) forum
when the defending party's answer fails to shopping. In support of the ground of
tender an issue, or otherwise admits the material litis pendentia, it stated that it had earlier
allegations of the adverse party's pleading. For filed a complaint for the rescission of the
that purpose, only the pleadings of the parties in four contracts and of the February 11,
the action are considered. It is error for the trial 2009 agreement in the RTC in
court to deny the motion for judgment on the Cabanatuan City; and that the resolution
pleadings because the defending party's of that case would be determinative of
pleading in another case supposedly tendered the petitioner's action for collection.
an issue of fact. After the RTC denied the motion to
dismiss on July 19, 2009, the
FACTS: respondent filed its answer. On
From January 9, 2006 until February 2, September 28, 2011, the petitioner filed
2007, the petitioner, a domestic its Motion for Judgment Based on the
corporation dealing with medical Pleadings, stating that the respondent
equipment and supplies, delivered to had admitted the material allegations of
and installed medical equipment and its complaint and thus did not tender any
supplies at the respondent's hospital. issue as to such allegations. The
According to the petitioner, the respondent opposed the Motion for
respondent paid only P67,3 57,683.23 of Judgment Based on the Pleadings,
its total obligation of P123,901,650.00, arguing that it had specifically denied
leaving unpaid the sum of the material allegations in the complaint.
P54,654,195.54.
However, on February 11, 2009, the Judgment of the RTC
petitioner and the respondent entered At the hearing, the court issued an Order
into an agreement whereby the former denying the Motion for Judgment Based on the
agreed to reduce its claim to only Pleadings considering that the allegations stated
P50,400,000.00, and allowed the latter on the Motion are evidentiary in nature. The
to pay the adjusted obligation on Court, instead of acting on the same, sets the
installment basis within 36 months. case for pre-trial, considering that with the
In the letter dated May 27, 2009, the Answer and the Reply, issues have been joined.
respondent notified the petitioner that its
new administration had reviewed their Judgment of the CA
contracts and had found the contracts Although observing that the respondent had
defective and rescissible due to admitted the contracts as well as the February
economic prejudice or lesion; and that it 11, 2009 agreement, the CA ruled that a
was consequently declining to recognize judgment on the pleadings would be improper
the February 11, 2009 agreement because the outstanding balance due to the
because of the lack of approval by its petitioner remained to be an issue in the face of
the allegations of the respondent in its complaint respondent's averment of payment of the total of
for rescission in the RTC in Cabanatuan City. P78,401,650.00 to the petitioner made in its
complaint for rescission had no relevance to the
ISSUE: resolution of the Motion for Judgment Based on
Whether the Court of Appeals erred in going the Pleadings. The CA thus wrongly held that a
outside of the respondent's answer by relying on factual issue on the total liability of the
the allegations contained in the latter's complaint respondent remained to be settled through trial
for rescission. – YES. on the merits. It should have openly wondered
why the respondent's answer in Civil Case No.
RULING OF THE SUPREME COURT: 09-122116 did not allege the supposed payment
The appeal is meritorious. of the P78,401,650.00, if the payment was true,
if only to buttress the specific denial of its
The rule on judgment based on the pleadings is alleged liability. The omission exposed the
Section 1, Rule 34 of the Rules of Court, which respondent's denial of liability as insincere.
provides thus:
Section 1. Judgment on the pleadings. – WHEREFORE, the Court REVERSES and
Where an answer fails to tender an SETS ASIDE the decision promulgated on
issue, or otherwise admits the material July 2, 2013; DIRECTS the Regional Trial
allegations of the adverse party’s Court, Branch 1, in Manila to resume its
pleading, the court may, on motion of proceedings in Civil Case No. 09-122116
that party, direct judgment on such entitled Fernando Medical Enterprises, Inc. v.
pleading. x x x Wesleyan University-Philippines, and to
forthwith act on and grant the Motion for
The essential query in resolving a motion for Judgment Based on the Pleadings by
judgment on the pleadings is whether or not rendering the proper judgment on the
there are issues of fact generated by the pleadings; and ORDERS the respondent to
pleadings. Whether issues of fact exist in a case pay the costs of suit.
or not depends on how the defending party’s
answer has dealt with the ultimate facts alleged
in the complaint. The defending party’s answer
either admits or denies the allegations of
ultimate facts in the complaint or other initiatory
pleading. The allegations of ultimate facts the
answer admit, being undisputed, will not require
evidence to establish the truth of such facts, but
the allegations of ultimate facts the answer
properly denies, being disputed, will require
evidence.
This rule is supported by the Court’s ruling in While petitioner allegedly raised affirmative
Mongao v. Pryce Properties Corporation wherein defenses, i.e., defect in the certification of non-
it was held that "judgment on the pleadings is forum shopping, no legal capacity to sue and
governed by Section 1,Rule 34 of the 1997 fortuitous event, the same cannot still bar
Rules of Civil Procedure, essentially a respondent from seeking the collection of the
restatement of Section 1, Rule 19 of the 1964 unpaid balance. Other than these affirmative
Rules of Court then applicable to the defenses, petitioner’s denial neither made a
proceedings before the trial court. Section 1, specific denial that a Memorandum of
Rule 19 of the Rules of Court provides that Agreement was perfected nor did it contest the
where an answer fails to tender an issue, or genuineness and due execution of said
otherwise admits the material allegations of the agreement.
adverse party’s pleading, the court may, on
motion of that party, direct judgment on such We, therefore, sustain the CA and quote with
pleading. The answer would fail to tender an approval the well-reasoned findings and
issue, of course, if it does not comply with the conclusions of the appellate court contained in
requirements for a specific denial set out in its Decision, to wit:
Section 10 (or Section 8) of Rule 8; and it would The [respondent’s] cause of action for
admit the material allegations of the adverse collection of Sum of Money is founded
party’s pleadings not only where it expressly mainly on the Memorandum of
confesses the truthfulness thereof but also if it Agreement validly executed by both
omits to deal with them at all." parties.
First, the allegations in the [petitioner’s]
Further, in First Leverage and Services Group, Answer do not make out a specific
Inc. v. Solid Builders, Inc., this Court held that denial that a Memorandum of
where a motion for judgment on the pleadings is Agreement was perfected between the
filed, the essential question is whether there are parties. Second, the [respondent] does
issues generated by the pleadings. In a proper not contest the due execution and/or
case for judgment on the pleadings, there is no genuineness of said Memorandum of
ostensible issue at all because of the failure of Agreement. In fact, paragraph 13 of the
the defending party’s answer to raise an issue. Answer categorically admits paragraphs
The answer would fail to tender an issue, of 4 and 5 of the Complaint.
course, if it does not deny the material
allegations in the complaint or admits said WHEREFORE, the instant petition is DENIED.
material allegations of the adverse party’s The Decision dated April 25, 2006 and
pleadings by confessing the truthfulness thereof Resolution dated February 6, 2008 of the
and/or omitting to deal with them at all. Court of Appeals are hereby AFFIRMED.
SO ORDERED.
Here, it is irrefutable that petitioner
acknowledged having entered into a
Memorandum of Agreement with respondent
and that it still has an unpaid balance of
US$615,620.33.
32,180,000 DMCI shares. EIB rejected
petitioners’ demand for the return of the
DMCI shares, as those were already
sold to cover the buy back of the KPP
shares.
In the complaint, petitioners pray for the
return of the 32,180,000 DMCI shares
by EIB to them. EIB’s answer contained
TOPIC: JUDGMENT ON THE PLEADINGS admissions and specific denials.
On July 19, 2005, petitioners registered
PACIFIC REHOUSE CORPORATION, a Motion for Judgment on the Pleadings,
petitioner VS. EIB SECURITIES, INC., asserting that EIB materially admitted
respondent the allegations of their complaint by not
October 13, 2010 | G.R. No. 184036 | tendering any genuine issue in its
VELASCO, JR., J. answer.
Digested by: Balabat, Venica Jaelyle P.
Ruling of the Regional Trial Court
FACTS: Rendered its judgment on the pleadings
EIB (defendant) is the stockbroker of directing 1) the defendant to return the
Pacific Rehouse Corporation petitioners 32,180,000 DMCI shares, as of
(petitioners). judicial demand; 2) to reimburse the defendant
From June 2003 to March 2004, the amount of P10,942,200.00, representing the
petitioners, through their broker, EIB, buy back price of the 60,790,000 KPP shares of
bought 60,790,000 KKP shares of stock stocks at P0.18 per share. The trial court found
at the Philippine Stock Exchange (PSE). merit in rendering a judgment on the pleadings:
On various dates in July and August first, the assailed transactions were all
2003, petitioners acquired DMCI shares. documented; second, the transactions were
A total of 32,180,000 DMCI shares of admitted by the parties; and third, the main
stock owned by petitioners were placed issues can be resolved based on the parties
in the custody or control of EIB. documentary evidence appended to the
On April 1, 2004, petitioners ordered the pleadings.
sale of 60,790,000 KPP shares to any
buyer at the price of 0.14 per share. The Ruling of the Court of Appeals
sale was with an obligation to buy back Rendered a decision revoking RTC’s judgment
or reacquire the KPP shares at 0.18 per on the pleadings and remanded the case back to
share within 30 days from date of the RTC for further proceedings. The CA found
transaction. that while some material allegations in
Petitioners failed to reacquire or buy petitioners complaint were admitted by EIB, the
back the KPP shares, so EIB had no latter’s answer nonetheless raised other genuine
recourse but to sell the DMCI shares of issues which it viewed can only be threshed out
petitioners to reacquire the KPP shares. in a full-blown trial, like the average price of the
So, on various dates in June 2004, EIB, KPP shares of stock, the scope of the collaterals
without petitioners knowledge and stated in the Notices of Sale and the monetary
consent, sold petitioners 32,180,000 claims of the defendant against the petitioners.
DMCI shares at the controlling market
price. EIB later sent sales confirmation ISSUE/S:
receipts and statement of accounts to Whether or not judgment on the pleadings is
petitioners regarding the sale of their proper. – YES.
DMCI shares.
On January 12, 2005, petitioners wrote RULING OF THE SUPREME COURT:
EIB demanding the return of the Based on the admissions in the pleadings and
documents attached, the Court finds that the
issues presented by the complaint and the
answer can be resolved within the four corners
of said pleadings without need to conduct further
hearings.