Thursday, February 18, 2021

DIGEST:ANA KRISTEL ANGELES/INTERPLEADER: LUI ENTERPRISES, INC., petitioners, vs. ZUELLIG PHARMA CORPORATION and the PHILIPPINE BANK OF COMMUNICATIONS, respondents

 

INTERPLEADER:

LUI ENTERPRISES, INC., petitioners, vs. ZUELLIG PHARMA CORPORATION and the PHILIPPINE BANK OF COMMUNICATIONS, respondents

FACTS:

Lui Enterprises and Zuellig Pharma Corporation entered into a 10-year contract of lease over a parcel of land in Davao. Subsequently, Zuellig received a letter from the Philippine Bank of Communications. Claiming to be the new owner of the leased property, the bank asked Zuellig to pay rent directly to it. Zuellig promptly informed Lui Enterprises of the Philippine Bank of Communications’s claim. Lui Enterprises wrote to Zuellig and insisted on its right to collect the leased property.

Due to the conflicting claims of Lui Enterprises and Philippine Bank of Communications over the rental payments, Zuellig filed a complaint for interpleader with the RTC in Makati. In its complaint, Zuellig Pharma alleged that it already consigned in court P604,024.35 as rental payments. Zuellig Pharma prayed that it be allowed to consign in court its succeeding monthly rental payments and that Lui Enterprises and the Philippine Bank of Communications be ordered to litigate their conflicting claims.

Philippine Bank of Communications filed its answer to the complaint, while Lui Enterprises filed a motion to dismiss on the ground that Zuellig’s alleged representative did not have authority to file the complaint for interpleader on behalf of the corporation.

According to Lui Enterprises, an earlier filed nullification of deed of dation in payment case pending with the RTC of Davao barred the filing of the interpleader case. Lui Enterprises filed this case against the Philippine Bank of Communications with respect to several properties it dationed to the bank in payment of its obligations, one of which being the property leased to Zuellig.

In the nullification of deed of dation in payment case, Lui Enterprises raised the issue of which corporation had the better right over the rental payments, which, as Lui Enterprises argued, was the same issue involved in the interpleader case.

To avoid possible conflicting decisions of the Davao trial court and the Makati trial court on the same issue, Lui Enterprises argued that the subsequently filed interpleader case be dismissed. Zuellig filed its opposition to the motion to dismiss, arguing that the same should be dismissed for having been filed late. Considering that Lui Enterprises filed its motion to dismiss beyond the 15-day period to file an answer, Zuellig moved that Lui Enterprises be declared in default.

The RTC of Makati found that Lui Enterprises failed to file its motion to dismiss within the reglementary period, and denied its motion to dismiss and declared it in default.

It was only one year after the issuance of the order of default that Lui Enterprises filed a motion to set aside order of default in the RTC of Makati on the ground of excusable negligence. The RTC of Makati subsequently rendered a decision holding that Lui Enterprises was barred from any claim in respect of the rental payments since it was declared in default. Thus, according to the RTC, there was no issue as to which corporation had the better right over the rental payments. The trial court awarded the total consigned amount to the Philippine Bank of Communications. Lui Enterprises appealed to the CA, which found its appellant’s brief insufficient for non-compliance with Rule 44, Section 13 of the 1997 Rules of Civil Procedure. The CA dismissed Lui Enterprises’ appeal and affirmed the decision of the RTC of Makati.

ISSUE:

Whether the annulment of deed of dation in payment pending in the RTC of Davao barred the subsequent filing of the interpleader case in the RTC of Makati

RULING:

No.

The nullification of deed in dation in payment case did not bar the filing of the interpleader case. Litis pendentia is not present in this case.

Under Rule 16, Section 1, a motion to dismiss may be filed on the ground of litis pendentia. The requisites of litis pendentia are:

a. Identity of parties or at least such as represent the same interest in both actions;

b. Identity of rights asserted and reliefs prayed for, the reliefs being founded on the same facts; and

c. The identity in the two cases should be such that the judgment that may be rendered in one would, regardless of which party is successful, amount to res judicata in the other.

All of the requisites must be present. Absent one requisite, there is no litis pendentia.

In this case, there is no litis pendentia since there is no identity of parties in the nullification of deed of dation in payment case and the interpleader case. Zuellig Pharma is not a party to the nullification case filed in the Davao RTC.

There is also no identity of rights asserted and reliefs prayed for. Lui Enterprises filed the first case to nullify the deed of dation in payment it executed in favor of Philippine Bank of Communications. Zuellig subsequently filed the interpleader case to consign in court the rental payments and extinguish its obligation to pay rent. The interpleader case was necessary and was not instituted to harass either Lui Enterprises or the Philippine Bank of Communications. Thus, the pending nullification case did not bar the filing of the interpleader case.

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