7 - Guaranteed Hotels V Josefina Baltao
7 - Guaranteed Hotels V Josefina Baltao
HOTELS V
JOSEFINA
BALTAO
GR NO. 164338 January 17, 2005
Joint Venture
Agreement
STA. LUCIA
GUARANTEED
REALTY AND
DEVELOPMENT HOMES, INC.
Guaranteed Hotels
Represented by:
-Urma Chiongban
It sought to annul and set aside all resolutions, corporate acts, and
transactions of the defendants from 1990 up to the present, including but not
limited to those where the Baltao, et. al. allegedly authorized Guaranteed
Hotels to enter into Joint Venture Agreements with Sta. Lucia and other
corporations for the development of the properties of Guaranteed Hotels,
Inc.
4
Baltao, et. al.
Guaranteed Hotels violated the
rules on forum shopping
5
Guaranteed
Hotels, Inc.
It did not engage in forum
shopping since there is no
identity of parties or causes of
action between the OLONGAPO
CASE and MANILA CASE.
6
?
“Whether or not
Guaranteed Hotels
engaged in forum
shopping
YES
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RULIN
G
Forum Shopping
consists of multiple suits involving the
same parties for the same cause of action,
either simultaneously or successively, for
the purpose of obtaining a favorable
judgment.
BUAN v LOPEZ
It laid down the test for determining whether there has
been a violation of the rule against forum shopping.
Thus, forum shopping exists where the elements of litis
pendentia are present or where a final judgment in one
case will amount to res judicata in the other. Litis
pendentia as a ground for the dismissal of a civil action
refers to that situation wherein another action is
pending between the same parties for the same cause
of action, such that the second action becomes
unnecessary and vexatious.
9
There is forum shopping
where there exist:
ch
t lea st s u
or a e
pa r ties, h e sam
of nt t
ity se
ident as repre tions
parti
e s
b oth ac
in
ests
inter d
d an g
1 r t e
asse lief bein
g hts e
f r i he r
e n tity o d for, t e facts
id ye m
elie f pra t he sa edin
g
r o n prec ent
ded
foun t he
two judg
m
s
2 of t an y
ardles
y th a r e g
tit
iden is such c ase, am ount
the n g ld
rs endi wou
a r ticula n the p c es sful
p i c
ered is su ther.
rend h party eo
hic in th
of w judicata
s
to re
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1. IDENTITY OF PARTIES
Guaranteed Hotels maintains that there is no identity of
parties because
11
TF Ventures, et al. v. Yoshitsugu
Matsuura, et al .
It is a well settled rule that lis pendens requires only
substantial, and not absolute identity of parties. There is
substantial identity of parties where there is a community
of interest between a party in the first case and a party in
the second case.
13
THE RIGHTS BEING ASSERTED AND
THE RELIEFS PRAYED FOR IN THE
TWO DERIVATIVE SUITS ARE
IDENTICAL
While the reliefs prayed for in the two derivative suits were not similarly worded,
it cannot be denied that their objective is to bring about the annulment of the
JVA.
Plainly, the identity of the two derivative suits is such that the judgment that
may be rendered in one would amount to res judicata in the other.
14
We cannot allow the possibility of two
regional trial courts ruling differently on the
reliefs prayed for by Guaranteed Hotels.
Consider this: If the trial court in the
OLONGAPO CASE uphold the validity of
the JVA while the trial court in the MANILA
CASE rules on the contrary, these two
incompatible decisions will wreak havoc on
our judicial system. 15
Thanks!
END
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