FIRST DIVISION
G.R. No. 229070, November 10, 2020
EUFEMIA ABAD AND SPS. FLORDELIZA ABAD-CEZAR AND POLLIE CEZAR* WHO ARE HEIRS OF ENRIQUE ABAD, Petitioners, v. HEIRS OF JOSE EUSEBIO ABAD GALLARDO NAMELY: DOLORES LOLITA J. GALLARDO, JOCELYN A. GALLARDO, JUDITH A. GALLARDO AND JONAH GALLARDO, ALL REPRESENTED BY DOLORES LOLITA J. GALLARDO AND JONAH GALLARDO, Respondents.
RESOLUTION
CAGUIOA, J.:
WHEREFORE, from the foregoing Judgment on the Pleadings is hereby rendered in favor of the plaintiffs [(respondents)] and against the defendants [(petitioners)]. Accordingly, this Court is herebyPetitioners filed a motion for reconsideration, which was denied by the RTC in its Resolution23 dated December 9, 2016.
1) ORDERING the defendant Heirs of Enrique Abad and Eufemia Abad and Sps. Flordeliza Abad Cezar and Pollie Cezar, to comply with the Deed of Partition and approved subdivision plan Psd-(af)-02-024846 as well as to honor the Deed of Donation executed by Isabel Abad in favour of Jose Eusebio Abad Gallardo;
2) ORDERING the defendant Eufemia Abad to Surrender the title of the plaintiffs Heirs of Jose Eusebio Abad Gallardo over Lot No. 5826-B consisting of 5,000 square meters OR, in the alternative, TO SURRENDER the mother title Transfer Certificate of Title N[o]. T-131684 of the Registry of Deeds of Santiago City and ORDER the latter to issue the title to the plaintiffs;
3) ORDERING ALL THE DEFENDANTS to cease and desist from all acts of threatening the peaceful possession, occupation, and cultivation of the plaintiffs over the subject lot;
4) ORDERING the defendant EUFEMIA ABAD to accept the payment of the plaintiff Dolores Lolita Gallardo deposited in Court thru consignation in the amount of P75,000.00 and declare the plaintiffs to have legally redeemed the subject property;
5) ORDERING THE DEFENDANTS to pay P30,000.00 as Attorney's fees, and P2,500.00 per appearance fee, and costs of litigation.
SO ORDERED.22
It is proper to cite that the [plaintiffs' (respondents)] thru counsel on January 26, 2016 filed a Motion for Judgment on the Pleadings. No written opposition was filed by the defendants [(petitioners)]. When [said] motion x x x was heard on March 1, 2016, the counsel for the defendants interposed no objections [thereto].As correctly pointed out by petitioners, the RTC erred in ruling that res judicata attaches in the instant case.
With that scenario, plaintiffs' Motion for Judgment on the Pleadings was given due course. Aside from that ground, herein principles/and doctrines are likewise cited to wit:
First, while the defendant[s'] denied knowledge sufficient to form a belief with respect to the truthfulness or falsity of the proceedings x x x before the [RTC] Branch 21 of Santiago[,] Isabela in 19[8]8, this Court takes judicial notice of the said proceedings and the result thereof under Rule 129, [Section]!of the Rules of Court.
Second, the doctrine of Res Judicata attaches in the present case.
Res judicata embraces two concepts: (1) bar by prior judgment as enunciated in Rule 39, Section 47(b) of the Rules of Civil Procedure; and (2) conclusiveness of judgment in Rule 39, Section 47(c).
x x x x
The requisites for res judicata under the concept of bar by prior
judgment are:
(1) The former judgment or order must be final;
(2) It must be a judgment on the merits;
(3) It must have been rendered by a court having jurisdiction over the subject matter and the parties; and
(4) There must be between the first and second actions, identity of parties, subject matter, and cause of action.
Res judicata is present in this instant case.
x x x x
In the present case, the defendants and the plaintiffs both raised the issue of ownership over the said 5,000 square meter[s] portion of land, although this Court notes that the defendants did not present evidence to prove their defense of exclusive ownership other than their assertion of inheritance of the land traceable to Enrique Abad. The same issue was directly involved in the case filed in RTC Branch 21 which ended in a compromise agreement executed between Enrique Abad and Isabel Abad and Dionisi[o] Abad. Pertinent portion of the said agreement was reflected in the Deed of Partition (exh. "F") which reads:cralawred"xxx.. That this partition made is in accordance with the Deed of Amicable Settlement we have executed on May 17, 1989, at Santiago, Isabela, and before Atty. Eufren Changale relative to Civil Case No. XXI-0591 RTC [of] Santiago, Isabela. xxx"It cannot again be ventilated, and litigated between the parties and their privies, whether or not the claim, demand, purpose, or subject matter of the two actions is the same.30
SEC. 47. Effect of judgments or final orders. - The effect of a judgment or final order rendered by a court of the Philippines, having jurisdiction to pronounce the judgment or final order, may be as follows:The judgment or final order rendered by a Philippine court or judge, having jurisdiction to render the judgment or order, has the effect of res judicata or bar by prior judgment and conclusiveness of judgment31 Paragraph (a) of Section 47 is the rule on res judicata in judgments in rem; paragraph (b) is the rule on res judicata in judgments in personam; and paragraph (c) is the rule on conclusiveness of judgments.32
(a) In case of a judgment or final order against a specific thing or in respect to the probate of a will, or the administration of the estate of a deceased person, or in respect to the personal, political, or legal condition or status of a particular person or his relationship to another, the judgment or final order, is conclusive upon the title to the thing, the will or administration, or the condition, status or relationship of the person; however, the probate of a will or granting of letters of administration shall only be prima facie evidence of the death of the testator or intestate;
(b) In other cases, the judgment or final order is, with respect to the matter directly adjudged or as to any other matter that could have been raised in relation thereto, conclusive between the parties and their successors in interest by title subsequent to the commencement of the action or special proceeding, litigating for the same thing and under the same title and in the same capacity; and
(c) In any other litigation between the same parties or their successors in interest, that only is deemed to have been adjudged in a former judgment or final order which appears upon its face to have been so adjudged, or which was actually and necessarily included therein or necessary thereto. (49a)
Res judicata literally means a matter adjudged, judicially acted upon or decided, or settled by judgment. It provides that a final judgment on the merits rendered by a court of competent jurisdiction is conclusive as to the rights of the parties and their p1ivies; and constitutes an absolute bar to subsequent actions involving the same claim, demand or cause of action.The RTC erred in finding that res judicata attached in the instant case because there was no judgment on the merits in Civil Case No. 0591 (the prior case).
The following are the requisites of res judicata: (1) the former judgment must be final; (2) the court that rendered it had jurisdiction over the subject matter and the parties; (3) it is a judgment on the merits; and (4) there is - between the first and the second actions - an identity of parties, subject matter and cause of action.34
x x x NO answer was filed. Subsequently a Manifestation was filed by the plaintiffs submitting an amicable settlement which was not however attache[d] to the Manifestation and no such amicable settlement was ever submitted. For this reason the Court is convinced that the parties chose to settle their controversy between themselves.37Since no compromise agreement was filed with the RTC Branch 21 and formed part of the records of the prior case, there was no compromise agreement that was ever judicially approved and no judgment thereon was entered in the prior case.38 Thus, there was no judgment on the merits in the prior case. Without a judgment on the merits in the prior case, the rule of res judicata was incorrectly applied by the RTC in this case.
Judgment on the pleadings is governed by Section 1, Rule 34 of the 1997 Rules of Civil Procedure which reads:cralawredRule 34 of the 2019 Proposed Amendments to the 1997 Rules of Civil Procedure41 (2019 Amendments) now provides:cralawredSec. 1. Judgment on the pleadings. - Where an answer fails to tender an issue, or otherwise admits the material allegations of the adverse party's pleading, the court may, on motion of that party, direct judgment on such pleading. However, in actions for declaration of nullity or annulment of marriage or for legal separation, the material facts alleged in the complaint shall always be proved.Judgment on the pleadings is proper when an answer fails to tender an issue, or otherwise admits the material allegations of the adverse party's pleading. An answer fails to tender an issue if it does not comply with the requirements of a specific denial as set out in Sections 8 and 10, Rule 8 of the 1997 Rules of Civil Procedure, resulting in the admission of the material allegations of the adverse party's pleadings.
This rule is supported by the Court's ruling in Mongao v. Pryce Properties Corporation wherein it was held that "judgment on the pleadings is governed by Section 1, Rule 34 of the 1997 Rules of Civil Procedure, essentially a restatement of Section 1, Rule 19 of the 1964 Rules of Court then applicable to the proceedings before the trial court. Section 1, Rule 19 of the Rules of Court provides that where an answer fails to tender an issue, or otherwise admits the material allegations of the adverse party's pleading, the court may, on motion of that party, direct judgment on such pleading. The answer would fail to tender an issue, of course, if it does not comply with the requirements for a specific denial set out in Section 10 (or Section 8) of Rule 8; and it would admit the material allegations of the adverse party's pleadings not only where it expressly confesses the truthfulness thereof but also if it omits to deal with them at all."
Further, in First Leverage and Services Group, Inc. v. Solid Builders, Inc., this Court held that where a motion for judgment on the pleadings is filed, the essential question is whether there are issues generated by the pleadings. In a proper case for judgment on the pleadings, there is no ostensible issue at all because of the failure of the defending party's answer to raise an issue. The answer would fail to tender an issue, of course, if it does not deny the material allegations in the complaint or admits said material allegations of the adverse party's pleadings by confessing the truthfulness thereof and/or omitting to deal with them at all.40
Under the 2019 Amendments, the present appeal to the Court is not sanctioned because it is clear under Section 2, Rule 34, which is new, that any action of the court on a motion for judgment on the pleadings shall not be subject of an appeal. Rule 144 of the 2019 Amendments provides that the 2019 Amendments shall govern all cases filed after their effectivity on May 1, 2020, and also all pending proceedings, except to the extent that in the opinion of the court, their application would not be feasible or would work injustice, in which case the procedure under which the cases were filed shall govern. Since the application of the 2019 Amendments would work injustice in the present case, they will not be applied.RULE34
JUDGMENT ON THE PLEADINGS
Section 1. Judgment on the pleadings. - Where an answer fails to tender an issue, or otherwise admits the material allegations of the adverse party's pleading, the court may, on motion of that party, direct judgment on such pleading. However, in actions for declaration of nullity or annulment of marriage or for legal separation, the material facts alleged in the complaint shall always be proved. (1)
Section 2. Action on motion for judgment on the pleadings. - The court may motu proprio or on motion render judgment on the pleadings if it is apparent that the answer fails to tender an issue, or otherwise admits the material allegations of the adverse party's pleadings. Otherwise, the motion shall be subject to the provisions of Rule 15 of these Rules.
Any action of the court on a motion for judgment on the pleadings shall not be subject of an appeal or petition for certiorari, prohibition or mandamus. (n)
[which in petitioners' answer], they did not specifically deny under oath any of these documents' genuineness and authenticity. x x x Thus, [t]he answer would fail to tender an issue x x x, if it does not comply with the requirements for a specific denial set out in Section 10 (or Section 8) of Rule 8; and it would admit the material allegations of the adverse party's pleadings not only where it expressly confesses the truthfulness thereof but also if it omits to deal with them at all."42
- Amicable Settlement executed by Eurique Abad, Dionisio Abad and Isabel Abad;
- Deed of Partition executed by Enrique Abad, Dionisio Abad and Isabel Abad;
- Subdivision plan of the subject [land] x x x;
- Kasunduan dated April 30, 2008 executed by [Eufemia] Abad and Dolores Lolita J. Gallardo;
Section 7. Action or defense based on document. - Whenever an action or defense is based upon a written instrument or document, the substance of such instrument or document shall be set forth in the pleading, and the original or a copy thereof shall be attached to the pleading as an exhibit, which shall be deemed to be a part of the pleading, or said copy may with like effect be set forth in the pleading. (7)Respondents are mistaken in their contention that petitioners needed to specifically deny under oath the genuineness and authenticity of the documents that they adverted to, otherwise petitioners would be deemed to have admitted the same. Section 8 of Rule 8 expressly states that "the requirement of an oath does not apply when the adverse party does not appear to be a party to the instrument."
Section 8. How to contest such documents. - When an action or defense is founded upon a written instrument, copied in or attached to the corresponding pleading as provided in the preceding section, the genuineness and due execution of the instrument shall be deemed admitted unless the adverse party, under oath, specifically denies them, and sets forth what he claims to be the facts; but the requirement of an oath does not apply when the adverse party does not appear to be a party to the instrument or when compliance with an order for an inspection of the original instrument is refused. (8a)
x x x x
Section 10. Specific denial. - A defendant must specify each material allegation of fact the truth of which he does not admit and, whenever practicable, shall set forth the substance of the matters upon which he relies to support his denial. Where a defendant desires to deny only a part of an averment, he shall specify so much of it as is true and material and shall deny only the remainder. Where a defendant is without knowledge or information sufficient to form a belief as to the truth of a material averment made in the complaint, he shall so state, and this shall have the effect of a denial. (10a)
Section 11. Allegations not specifically denied deemed admitted. - Material averment in the complaint, other than those as to the amount of unliquidated damages, shall be deemed admitted when not specifically denied. Allegations of usury in a complaint to recover usurious interest are deemed admitted if not denied under oath. (1a, R9)43
Moreover, the heirs of Olegario Toribio, his widow and minor children represented by their mother, are among the plaintiffs-petitioners. They are not parties to the deeds of sale allegedly executed by their father, aunt, and uncle. They are not required to deny the deeds of sale under oath. The private respondents will still have to introduce evidence to establish that the deeds of sale are genuine and that they were truly executed by the parties with authority to dispose of the disputed property.45Similarly, in this case, the Amicable Settlement and Deed of Partition was executed by petitioners' father (Enrique), aunt (Isabel) and uncle (Dionisio). The Kasunduan was only between one of the plaintiffs and one of the defendants, the other parties not being privies thereto. The Court notes that the Deed of Donation (Annex "I" of the complaint)46 wherein Isabel donated the subject lot to Jose Eusebio did not at all involve petitioners or their predecessor-in-interest, Enrique.
It bears repeating that rules of procedure should be liberally construed to the end that substantial justice may be served. As stated in Pongasi v. Court of Appeals (71 SCRA 614):cralawredWHEREFORE, the Petition is hereby GRANTED. Accordingly, the Resolutions dated September 27, 2016 and December 9, 2016 of the Regional Trial Court of Santiago City, Branch 36 in Civil Case No. 36-4014 are REVERSED and SET ASIDE. The motion for judgment on the pleadings filed by the defendants therein is DENIED. The Regional Trial Court is directed to hear and decide the case on the merits with dispatch."We repeat what We said in Obut v. Court of Appeals, et al., supra, that 'what should guide judicial action is the principle that a party-litigant is to be given the fullest opportunity to establish the merits of his complaint or defense rather than for him to lose life, liberty, honor or property on technicalities.'An interpretation of a rule of procedure which would not deny to the petitioners their rights to their inheritance is warranted by the circumstances of this case.47
"In dispensing justice Our action must reflect a deep insight into the failings of human nature, a capability for making allowances for human error and/or negligence, and the ability to maintain the scales of justice happily wellÂ-balanced between these virtues and the application of the law."
Endnotes:
* Also "Paulino A. Cezar" and "Paullie Cezar" in some parts of the records.
1Rollo, pp. 3 to 25-A, excluding Annexes.
2 Id. at 56-66. Penned by Presiding Judge Anastacio D. Anghad.
3 Id. at 103-115.
4 For brevity, RTC Branch 36 is referred to as RTC.
5Rollo, pp. 56-57.
6 Referred to as "Isabel Abad" and "Isabel Abad Gallardo" in some parts of the rollo.
7Rollo, p. 57.
8 Id.
9 Also appears as "Civil Case No. XXI-0591" in some parts of the rollo.
10Rollo, pp. 57-58.
11 Per the RTC Resolution, id. at 58. However, it is stated as 10,110 in the Complaint, id. at 28.
12 Id. at 58. The Court notes that the total of the segregated portions is only 22,500 square meters per the RTC Resolution or 22,610 square meters based on the Complaint, but the total area of the land covered by OCT P-2769 is 22,618 square meters.
13 Id.
14 See id. at 28.
15 See id. at 29.
16 Id. at 59.
17 Id. at 59-60.
18 Id. at 60.
19 Id. at 60-61.
20 Supra note 2.
21 Id. at 62-64.
22 Id. at 65-66.
23 Supra note 3.
24 Id. at 85-93.
25 Id. at 121-132.
26 Id. at 12.
27 Id. at 14.
28 Id. at 15.
29 See id. at 15-18.
30 Id. at 62-65. Citations omitted.
31 See Florenz D. Regalado, REMEDIAL LAW COMPENDIUM, 1982 Second Rev. Ed., p. 241.
32 See id.
33 450 Phil. 521 (2003).
34 Id. at 528-529. Citations omitted.
35Rollo, p. 15.
36 Id. at 16.
37 Id.
38 See id. at 18.
39 736 Phil. 200 (2014).
40 Id. at 205-206. Emphasis and citations omitted.
41 A.M. No. 19-10-20-SC.
42Rollo, pp. 89-91. Emphasis omitted.
43 Sections 8, 10 and 11 of Rule 8 of the 2019 Amendments state:
Section 8. How to contest such documents. - When an action or defense is founded upon a written instrument, or attached to the corresponding pleading as provided in the preceding section, the genuineness and due execution of the instrument shall be deemed admitted unless the adverse party, under oath specifically denies them, and sets forth what he or she claims to be the facts; but the requirement of an oath does not apply when the adverse party does not appear to be a party to the instrument or when compliance with an order for an inspection of the original instrument is refused. (8a)
x x x x
Section 10. Specific denial. - A defendant must specify each material allegation of fact the truth of which he or she does not admit and, whenever practicable, shall set forth the substance of the matters upon which he or she relies to support his or her denial. Where a defendant desires to deny only a part of an averment, he or she shall specify so much of it as is true and material and shall deny only the remainder. Where a defendant is without knowledge or information sufficient to form a belief as to the truth of a material averment made to the complaint, he or she shall so state, and this shall have the effect of a denial. (10a)
Section 11. Allegations not specifically denied deemed admitted. - Material averments in a pleading asserting a claim or claims, other than those as to the amount of unliquidated damages, shall be deemed admitted when not specifically denied. (11a)
44 219 Phil. 139 (1985).
45 Id. at 147. Emphasis and underscoring supplied.
46 See rollo, p. 126.
47Toribio v. Bidin, supra note 44, at 147-148.