de Castro vs. Court of Appeals
de Castro vs. Court of Appeals
Ci il La ; Ac i ; Pa ie ; The j i de f i di e able a ie i
a da a d c ca ceed i h hei e e ce. An
indispensable part is one hose interest ill be affected b the court s
action in the litigation, and ithout hom no nal determination of the case
can be had. The joinder of indispensable parties is mandator and courts
cannot proceed ithout their presence. Whene er it appears to the court in
the course of a proceeding that an indispensable part has not been joined, it
is the dut of the court to stop the trial and order the inclusion of such part .
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* THIRD DIVISION.
608
608 E EC E A A ED
609
Sa e; Sa e; Sa e; A dela i hi he eci i e ei d i
a c i ed b la a d i c ide ed be a dela ha ld ba elief.
Laches does not appl because onl four ears had lapsed from the time
of the sale in June 1985. Artigo made a demand in Jul 1985 and led the
action in court on Ma 29, 1989, ell ithin the ten- ear prescripti e
period. This does not constitute an unreasonable dela in asserting one s
right. The Court has ruled, a dela i hi he e c i i e e i d i
a c i ed b la a d i c ide ed be a dela ha ld ba
elief. In e plaining that laches applies onl in the absence of a statutor
prescripti e period, the Court has stated Laches is recourse in equit .
E i , h e e , i a lied l i he ab e ce, e e i c a e i , f
a la . Th , lache , ca , a a le, be ed aba e a c llec i
i led i hi he e c i i e e i d a da ed b he Ci il C de.
Sa e; Da age ; The a a d f da age a d a e fee i lef
he d di c e i f he c , a d if ch di c e i i ell e e ci ed, i
ill be di bed a eal; M al da age a be a a ded he i a
b each f c ac he defe da ac ed i bad fai h, i a di ega d
f hi c ac al bliga i . La and jurisprudence support the a ard of
moral damages and attorne s fees in fa or of Artigo. The a ard of damages
and attorne s fees is left to the sound discretion of the court, and if such
discretion is ell e ercised, as in this case, it ill not be disturbed on
appeal. Moral damages ma be a arded hen in a breach of contract the
defendant acted in bad faith, or i a di ega d f hi c ac al
bliga i . On the other hand, attorne s fees are a arded in instances
here the defendant acted in gross and e ident bad faith in refusing to
satisf the plaintiff s plainl alid, just and demandable claim.
610
610 C A A D
De Castro vs. Court of Appeals
CARPIO, J.:
The Case
1
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1 U de R e 45 f eR e fC .
2 Se e D c ed f J ce R ca d J. F a c c (C a a a d P e e);
Sa e A. M a a d Ra A. Ba ce a (Me be ).
3 Pe ed b J d e Be T. Da a .
4W e efe ed c ec e .
5 Refe e De Ca .
6 Refe A .
611
612 C A A D
De Castro vs. Court of Appeals
The Issues
613
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614 C A A D
De Castro vs. Court of Appeals
ing that an indispensable part has not been joined, it is the dut of
the court to stop the trial and order the inclusion of such part .
Ho e er, the rule on mandator joinder of indispensable parties
is not applicable to the instant case.
There is no dispute that Constante appointed Artigo in a
hand ritten note dated Januar 24, 1984 to sell the properties of the
De Castros for P23 million at a 5 percent commission. The authorit
as on a rst come, rst ser e basis. The authorit reads in full:
24 Jan. 84
To Whom It Ma Concern:
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615
The rule in this article applies e en hen the appointments ere made b
the principals in separate acts, pro ided that the are for the same
transaction. The lida i a i e f he c i e e f he i ci al ,
a d f he ac f c i i g he age c . B i e f hi lida i ,
he age ca ec e f a i ci al he h le c e ai a d
i de i i g hi b he he . The parties, ho e er, ma , b e press
agreement, negate this solidar responsibilit . The solidarit does not
disappear b the mere partition effected b the principals after the
accomplishment of the agenc .
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616
616 C A A D
De Castro vs. Court of Appeals
Art. 1216. The creditor ma proceed against an one of the solidar debtors
or some or all of them simultaneousl . The demand made against one of
them shall not be an obstacle to those hich ma subsequentl be directed
against the others, so long as the debt has not been full collected.
The De Castros claim that Artigo as full paid on June 14, 1985,
that is, Artigo as gi en his proportionate share and no longer
entitled to an balance. According to them, Artigo as just one of
the agents in ol ed in the sale and entitled to a proportionate
share in the commission. The assert that Artigo did absolutel
nothing during the second negotiation but to sign as a itness in the
deed of sale. He did not e en prepare the documents for the
transaction as an acti e real estate broker usuall does.
The De Castros arguments are ims .
A contract of agenc hich is not contrar to la , public order,
public polic , morals or good custom 14is a alid contract, and
constitutes the la bet een the parties. The contract of agenc
entered into b Constante ith Artigo is the la bet een them and
both are bound to compl ith its terms and conditions in good
faith.
The mere fact that other agents inter ened in the
consummation of the sale and ere paid their respecti e
commissions cannot
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13 154 SCRA 738 (1987), a Rep blic s. Sandiganba an, 173 SCRA 72
(1989).
14 San Andres s. Rodrig e , 332 SCRA 769 (2000).
617
The alleged second group of agents came into the picture onl during the
so-called second negotiation and it is amusing to note that these (sic)
second group, prominent among hom are Att . Del Castillo and Ms.
Prudencio, happened to be emplo ees of Times Transit, the bu er of the
properties. And their efforts ere limited to con incing Constante to part
a a ith the properties because the redemption period of the foreclosed
properties is around the corner, so to speak. (tsn, June 6, 1991).
Art. 1235. When the obligee accepts the performance, kno ing its
incompleteness and irregularit , and ithout e pressing an protest or
objection, the obligation is deemed full complied ith.
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61
618 C A A D
De Castro vs. Court of Appeals
The ord acce , as used in Article 1235 of the Ci il Code, means to take
as satisfactor or suf cient, or agree to an incomplete or irregular
performance. He ce, he e e ecei f a a ial a e i e i ale
he e i16ed acce a ce f e f a ce a ld e i g i h he h le
bliga i . (Emphasis supplied)
There is thus a clear distinction bet een acceptance and mere
receipt. In this case, it is e ident that Artigo merel recei ed the
partial pa ment ithout ai ing the balance. Thus, there is no
estoppel to speak of.
The De Castros further argue that laches should appl because
Artigo did not le his complaint in court until Ma 29, 1989, or
almost four ears later. Hence, Artigo s claim for the balance of his
commission is barred b laches.
Laches means the failure or neglect, for an unreasonable and
une plained length of time, to do that hich b e ercising due
diligence could or should ha e been done earlier. It is negligence or
omission to assert a right ithin a reasonable time, arranting a
presumption that the part1 entitled to assert it either has abandoned
it or declined to assert it.
Artigo disputes the claim that he neglected to assert his rights. He
as appointed as agent on Januar 24, 1984. The t o lots ere
nall sold in June 1985. As found b the trial court, Artigo
demanded in April and Jul of 1985 the pa ment of his commission
b Constante on the basis of the selling1 price of P7.05 million but
there as no response from Constante. After it became clear that
his demands for pa ment ha e fallen on deaf ears, Artigo decided to
sue on Ma 29, 1989.
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C g 2023 Ce a B S , I c. A g e e ed.