8/19/2019 First Phil. Int’l Bank 252 SCRA 259

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34. First Phil. Int’l Bank 252 SCRA 259

Producers Bank (now called First Philippine International Bank), which has been under 

conservatorship since 1984, is the owner of parcels of land! "he Bank had an a#ree$ent

with %e$etrio %e$etria and &ose &anolo for the two to purchase the parcels of land for a

purchase price of P'!' $illion pesos! "he said a#ree$ent was $ade b %e$etria and

&anolo with the Banks $ana#er, *ercurio +ivera! ater however, the Bank, throu#h its

conservator, eonida -ncarnacion, sou#ht the repudiation of the a#ree$ent as it alle#ed

that +ivera was not authori.ed to enter into such an a#ree$ent, hence there was no valid

contract of sale! /ubse0uentl, %e$etria and &anolo sued Producers Bank! "he re#ional

trial court ruled in favor of %e$etria et al! "he Bank filed an appeal with the ourt of 

 2ppeals!

*eanwhile, 3enr o, who holds 85 shares of stocks with the said Bank, filed a $otion

for intervention with the trial court! "he trial court denied the $otion since the trial has been

concluded alread and the case is now pendin# appeal! /ubse0uentl, o, assisted b

 2+2 law office, filed a separate civil case a#ainst arlos -6ercito as successor7in7

interest (assi#nee) of %e$etria and &anolo seekin# to have the purported contract of sale

be declared unenforceable a#ainst the Bank! -6ercito et al ar#ued that the second case

constitutes foru$ shoppin#!

ISSUE: hether or not there is foru$ shoppin#!

HELD: es! "here is foru$ shoppin# because there is identit of interest and parties

between the first case and the second case! "here is identit of interest because both cases

sou#ht to have the a#ree$ent, which involves the sa$e propert, be declared

unenforceable as a#ainst the Bank! "here is identit of parties even thou#h the first case is

in the na$e of the bank as defendant, and the second case is in the na$e of 3enr o as

plaintiff! "here is still foru$ shoppin# here because 3enr o essentiall represents the

bank! Both cases ai$ to have the bank escape liabilit fro$ the a#ree$ent it entered into

with %e$etria et al!

"he /upre$e ourt also discussed that to co$bat foru$ shoppin#, which ori#inated as a

concept in international law, the principle of foru$ non conveniens was developed! "he

doctrine of foru$ non conveniens provides that a court, in conflicts of law cases, $a refuse

i$positions on its 6urisdiction where it is not the $ost :convenient; or available foru$ and

the parties are not precluded fro$ seekin# re$edies elsewhere

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