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Supreme Court Decision in 'People of the Philippines - versus- Lucio Lumayok' G.R. No. L-54016

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Gilbert Y. Yap vs. Hon. J. Cedrick Ruiz

REF. NO: CA-G.R. SP No. 1040768
Jurisprudence

Gilbert Y. Yap vs. Hon. J. Cedrick Ruiz, et al.;

CA-G.R. SP No. 1040768; January 30, 2009;

Counsel for Petitioner: Atty. Abelardo L. Aportadera, Jr.

 

 

 

REPUBLIC OF THE PHILIPPINES

COURT OF APPEALS

Orosa St., Ermita, Manila

 

SECOND DIVISION

 

 

 

GILBERT Y. YAP,

                                    Petitioner,

 

            -Versus-                                                              CA-GR SP No. 104078                                                     

                                                                                                  (Civil Case No. 01-1638)

 

HONORABLE J. CEDRICK O.                    

RUIZ, JDR Judge, Regional                    

Trial Court, Branch 61 of                  
Makati City and, ALLIED         BANKING CORPORATION                       

Promulgated;

January 30, 2009                                                                

x--------------------------------------------------x

 

D E C I S I O N

 

 

ALINO-HORMACHULES, J.:

 

 

            Petition for Certiorari under Rule 65 of the Rules of Civil Procedure assailing, on the ground of grave abuse of discretion amounting to lack or excess of jurisdiction, the Order dated February 22, 2008 which dismissed petitioner’s complaint without prejudice and the Resolution dated May 29, 2008 w2hich denied his Motion for Reconsideration, of Branch 61 of the Regional Trial Court of Makati City in Civil Case No. 01-1638 entitled “Gilbert Y. Yap vs. Allied Banking Corporation” for Injunction with Damages and Prayer for retraining Order.

 

            The Facts:

 

            Petitioner respondent Allied Banking Corporation (Allied bank) is a domestic commercial banking institution.

 

            On November 15, 2001, Petitioner filed the herein Complaint for Injunction with Damages and prayer for Restraining Order against Allied Bank before the Regional Trial Court, Branch 63 of Makati City presided by Judge Tranquil Salvador.  He alleged that he obtained personal loans from Allied Bank amounting to P57, 900,000. secured by real estate mortgages over his family home in Kalamansi Street, Dasmariñas Village, Makati City; that due to economic downturns in the real estate business, he was unable to pay his loans; that by reason of his default, Allied Bank extrajudicially foreclosed the mortgages; that within the one-year redemption period, he negotiated with Allied Bank for the redemption of his family home, which negotiation resulted in an agreement to extend the redemption period and allow him to redeem his family home at a price of P35,000,000.00 instead of the bid price of P42,789,250.00; that before the expiration of the redemption period and despite the agreement, Allied Bank consolidated in its name the title over his family home; and that Allied Bank’s act would result in grave and irreparable injury if not restrained.

 

            On November 26, 2001, the RTC issued a temporary restraining order, and on December 18, 2001, issued an order granting the issuance of a writ of preliminary injunction enjoining Allied Bank from consolidation in its name the title over petitioner’s family home until the case is decided on the merits.  On December 27, 2001, Allied Bank filed its Answer with compulsory counterclaim.

 

            On January 21, 2002, the RTC, in accordance with its earlier order dated December 18, 2001, issued the writ of preliminary injunction against Allied Bank and the Register of Deeds of Makati City.

 

            Subsequently, the case was re-raffled to branch 61 of the RTC which was then presided by Judge Marissa Guillen.  The RTC then set the case for pre-trial conference on December 14, 2007.  On December 14, 2007, the RTC, this time presided by herein public respondent Judge Cedrick Ruiz, ordered the submission of the case for judicial mediation under the Judicial Dispute Resolution (JDR) process to be conducted on January 25, 2008, during which respondent Judge Ruiz explained the purpose of the JDR to the parties, and the latter manifested their willingness to forge a settlement and agreed to the continuation of mediation.  Thus, the court issued an order setting a second mediation session on February 22, 2008 at 2:00 o’clock in the afternoon.

 

            In the scheduled mediation session on February 22, 2008, petitioner Yap and his counsel Atty. Abelardo L. Aportadera arrived at 2:15 p.m. and 2:20 p.m., respectively, while counsel for Allied Bank Atty. Francisco Llamas arrived at 2:28 p.m. Because of the parties’ failure to appear on time, respondent Judge Ruiz issued an order of even date dismissing petitioner’s complaint and Allied Bank’s counterclaim, viz:

 

 

When this case called for the second time for the continuation of the Pre-Trial this afternoon, there was still no appearance on the part of the parties herein and their respective counsel of record despite due notice to them in open court last January 25, 2008 of this afternoon’s continuation of the Pre-Trial.

 

Consequently, in accordance with Section 5, Rule 18 of the revised Rules of Court, the instant case is hereby DIMISSED WITHOUT PREJUDICE.  The counterclaim of the Defendant is hereby likewise DIMISSED.

 

Serve copies of this Order to the parties and their respective counsel of record.

 

SO ORDERED.

 

 

            Yap filed a motion for reconsideration stating that his tardiness was due to confusion in the revised elevator system of the Makati City Hall and the throng of people using the same. The RTC, by resolution dated May 29, 2008, denied the motion.

 

            Hence, this petition on the following issues:

 

Whether or not the tardiness of Petitioner Yap, Counsel for Petitioner Yap, and Private Respondent Bank in attending the second session of the judicial mediation (JDR) is excusable;

 

Whether or not the Public Respondent JDR Judge committed a reversible error in dismissing without prejudice Petitioner Yap’s complaint on a technical ground.

 

Whether or not the Public Respondent JDR Judge has acted with grave abuse of discretion amounting to excess of jurisdiction in dismissing without prejudice Petitioner Yap’s complainant.

 

 

 

The issue is essentially whether or not Judge Ruiz committed grave abuse of discretion in dismissing the petitioner’s complaint for tardiness of twenty (20) minutes during the second mediation session.

 

Petitioner argues that the dismissal of his complaint for one instance of non-appearance is too severe a sanction and does not further the interest of substantial justice; and that in dismissing the complaint, respondent Judge Ruiz acted as trial judge instead of JDR Judge and violated his duty of bringing the opposing parties to a settlement thus defeating the JDR objective of administering inexpensive and expedient justice.

 

Allied Bank counters that attendance in mediation and conciliation proceedings, including JDR, is mandatory akin to attendance at the pre-trial, and the dismissal of the complaint for non-appearance in the JDR conference is sanctioned by A.M. No. 04-01-12-SC-PHILJA.

 

The petition is impressed with merit.

 

A pre-trial is mandatory and plaintiff’s absence therein can result in the dismissal of the case.  Section 5 of Rule 18 of the Rules of Court states thus:

 

SEC. 5. Effect of failure to appear: - The failure of the plaintiff to appear when so required pursuant to the next proceeding section shall be cause for dismissal of the action.  The dismissal shall be with prejudice, unless otherwise ordered by the court. xxx.

 

 

            Indeed, this power to dismiss rests on the sound discretion of the Court.  However, this discretion must not be abused and must be exercised by the peculiar circumstances of the case under the consideration.  There must be sufficient reason to justify the dismissal.  In the instant case, the dismissal was done in erroneous hassle to the prejudice of the parties.  For one, there is nothing in record to demonstrate that there was lack of interest of the parties to proceed.  What is evident is that in the previous proceedings, petitioner was in attendance and demonstrated vigor in pursuing his case and its resolution.  In fact, as manifested, the parties are undertaking continuous negotiation in pursuit of a settlement notwithstanding the dismissal.  If petitioner’s tardiness upset the RTC’s schedule, a simple admonition instead of outright dismissal, would have been sufficient to inform him of the judge’s intolerance of any display of tardiness or laxity.  A single instance of non-appearance at the pre-trial due to some unavoidable circumstance does not amount to willful disregard of the rules and will not warrant the complaint’s dismissal.  It cannot be overemphasized that the policy of the Court is to afford every litigant the amplest opportunity for the just determination of his cause, free from the constraints of technicality.

 

            It bears stressing that the rationale for institution of the JDR in our legal system is to enable the parties to resolved their disputes amicably, thereby allowing the parties to attain a closure of their conflicts in a manner that is less time-consuming, less tedious, less confrontational and more productive of goodwill.  Certainly, dismissing the complaint on the sole ground of non-appearance where there is a reasonable excuse therefore is not keeping with the policy of inexpensive and speedy justice and the principle of primary of merits over technicality.

 

            Inconsiderate dismissals, even if without prejudice, do not constitute a panacea nor a resolution to the congestion of court dockets for, while they lend a deceptive aura of efficiency to the records of the individual judges, they merely postpone the ultimate reckoning of the parties.

 

            Thus, where the record is devoid of evidence reflecting the litigant’s flagrant disregard for the court’s authority and the rules, there is authority that an order dismissing a plaintiff’s complaint without prejudice for failure to appear at a pre-trial conference must be reversed as too severe a sanction.  Indeed, for a 20-minute tardiness due to what is certainly a justifiable reason- the confusion occasioned by a change in the court building’s elevator system-this case ins now being delayed by almost a year and the earnest efforts of the parties to reach an amicable settlement of their dispute is being stymied.  The public respondent’s action constitutes grave abuse of discretion warranting correction by certiorari.

 

            WHEREFORE, the instant Petition for Certiorari is GRANTED.  The assailed Order dated February 22, 2008 and the Resolution dated may 29, 2008 are hereby ANNULLED AND SET ASIDE.  Respondent Judge is ORDERED to conduct further proceedings in this case with deliberate but reasonable dispatch.

 

            SO ORDERED.

 

 

                                                            PORTIA ALINO-HORMACHUELOS

                                                                            Associate Justice

 

 

            WE CONCUR:

 

 

                                    NOEL G. TIJAM             SESINANDO E. VILLON

                           Associate Justice                Associate Justice

 

 

 

 

C  E  R  T  I  F  I  C  A  T  I  O  N

 

 

            Pursuant to Article VII, Section 13 of the Constitution, it is hereby certified that the conclusions in the above decision were reached in consultation before the case was assigned to the writer of the opinion of the Court.

 

 

 

                                                            PORTIA ALINO-HORMACHUELOS

                                                                            Associate Justice

                                                                  Chairman, Second Division

 

Counsel for Petitioner: Atty. Abelardo L. Aportadera, Jr.

Counsel for Private Respondent: Atty. Francisco Gerardo C. Llamas

 

 

 


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