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2017 Philippine Numismatic and Antiquarian Society20170724 911 Lrrdy1
2017 Philippine Numismatic and Antiquarian Society20170724 911 Lrrdy1
DECISION
PERALTA , J : p
Subsequently, on March 15, 2010, the RTC issued a Joint Order 13 dismissing the
complaint, thus:
The failure of plaintiff represented by Atty. William F. Villareal who
alleged in the complaint that he is the President of Philippine Numismatic and
Antiquarian Society, Inc. and its duly-authorized representative to le the
appropriate pleadings and submit documentary exhibits relative to his authority
to le the instant complaint for and in behalf of plaintiff Philippine Numismatic
and Antiquarian Society, Inc. as mandated by the order of this Court during the
hearing on January 26, 2010 lends credence to the assertion of defendants that
he has no authority to represent plaintiff and to le the complaint in Civil Case
No. 09-122709. Consequently, the court has no other recourse but to order the
dismissal of Civil Case No. 09-122709.
Accordingly, Civil Case No. 09-122709 entitled Philippine Numismatic
and Antiquarian Society, Inc. versus Genesis Aquino, Angelo Bernardo, Jr.,
Eduardo M. Chua, Fernando Francisco, Jr., Fermin S. Carino, Percival M. Manuel,
Fernando M. Gaite, Jr., Jose Choa, Tomas De Guzman, Jr., Li Vi Ju, Catalino M.
Silangil, Raymundo Santos, Peter Sy, and Wilson Yuloque is hereby ordered
DISMISSED.
This Order likewise renders moot and academic the Motion to Declare
Defendants in Default and for Judgment Based on the Complaint led by
plaintiff in Civil Case No. 09-122709.
SO ORDERED. 1 4
Petitioner then led a Petition for Review 1 5 dated May 12, 2010 with the CA
under Rule 43 of the Rules of Court, in relation to A.M. No. 04-09-07 dated September
14, 2004. In a Decision dated September 6, 2012, the CA dismissed the petition.
Petitioner led a motion for reconsideration, 1 6 but the same was denied by the
CA on March 19, 2013.
Hence, this petition, raising the following issues:
I
THE COURT OF APPEALS COMMITTED A GRAVE ERROR WHEN IT UPHELD
THE DISMISSAL OF THE INTRA-CORPORATE CASE FOR PURPORTEDLY BEING
A NUISANCE SUIT;
II
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THE COURT OF APPEALS COMMITTED A GRAVE ERROR WHEN IT REFUSED TO
CONSIDER, CONTRARY TO ESTABLISHED JURISPRUDENCE, A BOARD
RESOLUTION/SECRETARY'S CERTIFICATE AS PROOF OF AUTHORITY TO FILE
INITIATORY PLEADINGS FOR AND ON A COMPANY'S BEHALF;
III
THE COURT OF APPEALS DEPARTED FROM THE USUAL COURSE OF
PROCEDURE WHEN IT DISMISSED THE CASE ON PROCEDURAL GROUNDS
RATHER THAN ON THE MERITS AND THUS PRECLUDING PETITIONER FROM A
JUST AND PROPER DETERMINATION OF ITS CASE. 1 7
We deny the petition.
There is no question that a litigation should be disallowed immediately if it
involves a person without any interest at stake, for it would be futile and meaningless to
still proceed and render a judgment where there is no actual controversy to be thereby
determined. Courts of law in our judicial system are not allowed to delve on academic
issues or to render advisory opinions. They only resolve actual controversies involving
rights that are legally demandable and enforceable. 1 8 ICHDca
The Rules of Court, speci cally Section 2 of Rule 3 thereof, requires that unless
otherwise authorized by law or the Rules of Court, every action must be prosecuted or
defended in the name of the real party-in-interest, thus:
Sec. 2. Parties-in-interest. — A real party-in-interest is the party who
stands to be bene ted 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.
This provision has two requirements: (1) to institute an action, the plaintiff must
be the real party-in-interest; and (2) the action must be prosecuted in the name of the
real party-in-interest. Interest within the meaning of the Rules of Court means material
interest or an interest in issue to be affected by the decree or judgment of the case, as
distinguished from mere curiosity about the question involved. One having no material
interest to protect cannot invoke the jurisdiction of the court as the plaintiff in an
action. 1 9
The Interim Rules of Procedure for Intra-Corporate Controversies under Republic
Act No. 8799 in A.M. No. 01-2-04-SC, effective on April 1, 2001 considers the
suppletory application of the Rules of Court under Section 2, Rule 1, thus:
Section 2. Suppletory application of the Rules of Court. — The Rules
of Court, in so far as they may be applicable and are not inconsistent with these
Rules, are hereby adopted to form an integral part of these Rules.
Moreover, We consider the summary nature of the proceedings governed by the
Interim Rules which is premised on one objective which is the expeditious disposition
of cases. 2 0
The purposes of the requirement for the real party in interest prosecuting or
defending an action at law are: (a) to prevent the prosecution of actions by persons
without any right, title or interest in the case; (b) to require that the actual party entitled
to legal relief be the one to prosecute the action; (c) to avoid a multiplicity of suits; and
(d) to discourage litigation and keep it within certain bounds, pursuant to sound public
policy. 2 1
The rule on real party-in-interest ensures, therefore, that the party with the legal
right to sue brings the action, and this interest ends when a judgment involving the
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nominal plaintiff will protect the defendant from a subsequent identical action. Such a
rule is intended to bring before the court the party rightfully interested in the litigation
so that only real controversies will be presented and the judgment, when entered, will
be binding and conclusive and the defendant will be saved from further harassment and
vexation at the hands of other claimants to the same demand. 2 2
In the case at bar, PNAS, as a corporation, is the real party-in-interest because its
personality is distinct and separate from the personalities of its stockholders. A
corporation has no power, except those expressly conferred on it by the Corporation
Code and those that are implied or incidental to its existence. In turn, a corporation
exercises said powers through its board of directors and/or its duly-authorized o cers
and agents. Thus, it has been observed that the power of a corporation to sue and be
sued in any court is lodged with the board of directors that exercises its corporate
powers. In turn, physical acts of the corporation, like the signing of documents, can be
performed only by natural persons duly authorized for the purpose by corporate by-
laws or by a speci c act of the board of directors. 2 3 It necessarily follows that "an
individual corporate o cer cannot solely exercise any corporate power pertaining to
the corporation without authority from the board of directors." 2 4 TCAScE
Section 23, in relation to Sec. 25 of the Corporation Code, clearly enunciates that
all corporate powers are exercised, all business conducted, and all properties
controlled by the board of directors. A corporation has a separate and distinct
personality from its directors and o cers and can only exercise its corporate powers
through the board of directors. Thus, it is clear that an individual corporate o cer
cannot solely exercise any corporate power pertaining to the corporation without
authority from the board of directors. 2 5 Absent the said board resolution, a petition
may not be given due course. The application of the rules must be the general rule, and
the suspension or even mere relaxation of its application, is the exception. This Court
may go beyond the strict application of the rules only on exceptional cases when there
is truly substantial compliance with the rule. 2 6
Hence, since petitioner is a corporation, the certi cation attached to its
complaint led with the RTC must be executed by an o cer or member of the board of
directors or by one who is duly authorized by a resolution of the board of directors;
otherwise, the complaint will have to be dismissed. 2 7 Courts are not, after all, expected
to take judicial notice of corporate board resolutions or a corporate o cers' authority
to represent a corporation. 2 8 Petitioner's failure to submit proof that Atty. William L.
Villareal has been authorized by PNAS to le the complaint is a su cient ground for the
dismissal thereof.
In Tamondong v. Court of Appeals , 2 9 we held that if a complaint is led for and
in behalf of the plaintiff who is not authorized to do so, the complaint is not deemed
led. An unauthorized complaint does not produce any legal effect. Hence, the court
should dismiss the complaint on the ground that it has no jurisdiction over the
complaint and the plaintiff. 3 0
In the present case, the real issue is whether Atty. William L. Villareal who claimed
to be the President of PNAS in 2009, was indeed authorized through a Board Resolution
to represent PNAS in filing Civil Case No. 09-122709. ASEcHI
Furthermore, it was alleged in the instant petition that Atty. Villareal is a member
of the Board of Directors since 2001 to present. The General Information Sheet (GIS)
for the years 2008 to 2011 4 0 were attached to the petition to prove the allegation. We
wonder, however, why these documents were not presented in the RTC nor attached to
the petition led with the CA. We also observe that there were no elected o cers for
the year 2008 as appearing on the GIS which was accomplished and led only in May
18, 2011. 4 1 Likewise, the GIS for the years 2009 to 2011 where it was stated that Atty.
Villaruel was the President appears no indication that it was led with the SEC. As
stated in the instructions on the GIS, a GIS Form is required to be led within thirty (30)
days following the date of the annual or a special meeting, and must be certi ed and
sworn to by the corporate secretary, or by the president, or any duly authorized o cer
of the corporation. 4 2
Indeed, there was no proof submitted that Atty. Villareal was duly authorized by
petitioner to le the complaint and sign the veri cation and certi cation against forum
shopping 4 3 dated December 21, 2009. Where the plaintiff is not the real party-in-
interest, the ground for the motion to dismiss is lack of cause of action. The reason for
this is that the courts ought not to pass upon questions not derived from any actual
controversy. Truly, a person having no material interest to protect cannot invoke the
jurisdiction of the court as the plaintiff in an action. Nor does a court acquire
jurisdiction over a case where the real party-in-interest is not present or impleaded. 4 4
Under our procedural rules, "a case is dismissible for lack of personality to sue
upon proof that the plaintiff is not the real party-in-interest, hence, grounded on failure
to state a cause of action." 4 5 Indeed, considering that all civil actions must be based
on a cause of action, de ned as the act or omission by which a party violates the right
of another, the former as the defendant must be allowed to insist upon being opposed
by the real party-in-interest so that he is protected from further suits regarding the
same claim. Under this rationale, the requirement bene ts the defendant because "the
defendant can insist upon a plaintiff who will afford him a setup providing good res
judicata protection if the struggle is carried through on the merits to the end. 4 6
Procedural rules are not to be disdained as mere technicalities that may be
ignored at will to suit the convenience of a party. Adjective law is important in ensuring
the effective enforcement of substantive rights through the orderly and speedy
administration of justice. These rules are not intended to hamper litigants or
complicate litigation but, indeed to provide for a system under which a suitor may be
heard in the correct form and manner and at the prescribed time in a peaceful
confrontation before a judge whose authority they acknowledge. 4 7
WHEREFORE , the petition is DENIED . The Decision of Court Appeals dated
September 6, 2012, and its Resolution dated March 19, 2013 in CA-G.R. SP No. 113864
are hereby AFFIRMED .
SO ORDERED. CHTAIc
* Designated Additional Member per Special Order No. 2416, Dated January 4, 2017.
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1. Rollo, pp. 9-29.
3. Id. at 39-40.
4. PNAS was organized for the purpose of, among others, to promote the science of
numismatics and antiquary through the study and collection of coins, paper money,
medals, seals, plaques, antiques, etc. and to encourage the preservation of existing
historical monuments and tablets in different parts of the country; id. at 360 and 11.
5. A Judgment Based on Compromise was rendered in Civil Case No. 09-122388 on December
8, 2010, id. at 364.
6. Rollo, p. 33.
7. Id. at 207-216.
8. Id. at 217-218.
9. Id. at 205.
10. Id. at 204.
11. Id. at 205.
12. Id. at 14.
18. Stronghold Insurance Company, Inc. v. Tomas Cuenca, et al., 705 Phil. 441, 454 (2013).
19. Gerve Magallanes v. Palmer Asia, Inc., G.R. No. 205179, July 18, 2014, 730 SCRA 259, 269.
20. Sy Tiong Shiou, et al. v. Sy Chim, et al., 601 Phil. 510, 535 (2009).
21. Stronghold Insurance Company, Inc. v. Tomas Cuenca, et al., supra note 18, at 455.
22. Id.
23. Republic v. Coalbrine International Philippines, Inc. , 631 Phil. 487, 495 (2010); Shipside, Inc.
v. Court of Appeals, 404 Phil. 981, 994 (2001).
24. Swedish Match Philippines, Inc. v. The Treasurer of the City of Manila , 713 Phil. 240, 247
(2013).
25. South Cotabato Communications Corp., et al. v. Sto. Tomas, 653 Phil. 240, 248 (2010).
26. Esguerra vs. Holcim Philippines, Inc., 717 Phil. 77, 90 (2013).
27. Cosco Philippines Shipping, Inc. v. Kemper Insurance Company , 686 Phil. 327, 337 (2012);
citing Tamondong v. Court of Appeals, 486 Phil. 729, 742 (2004).
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28. Development Bank of the Philippines v. Court of Appeals, et al., 483 Phil. 216, 221 (2004).
29. Supra note 27.
30. Cosco Philippines Shipping, Inc. v. Kemper Insurance Company, supra note 27.
31. Rollo, p. 337.
32. Id. at 293.
33. Id. at 248-251.
34. On May 7, 2010, a group of respondents led by Eduardo M. Chua, Catalino M. Silangil and
Percival M. Manuel allegedly conducted an "illegal" election to oust respondent Bernardo
from his post which resulted in the ling of Civil Case No. 09-122388. But, a Judgment
Based on Compromise was rendered in Civil Case No. 09-122388 on December 8, 2010;
id. at 319 and 364.
35. Id. at 52-55.
36. Those who voted were respondents Tomas Z. Guzman, Catalino M. Silangil, Eduardo M.
Chua, Genesis Aquino, Angelo Bernardo, Jr. (Auditor) and Fernando Gaite.
46. Stronghold Insurance Company, Inc. v. Tomas Cuenca, et al., supra note 18, at 455.
47. Bank of the Philippine Islands v. Court of Appeals, et al., 646 Phil. 617, 627 (2010).