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THE HONGKONG & SHANGHAI BANKING CORP. vs. ALDECOA & CO.G.R. No. L-8437 March 23, 1915

FACTS:

Aldecoa and Co. obtained a cedit !ot" P#$%%%% 'o( HSBC sec)ed b* a

(ot+a+e o' s"aes and eal ,o,eties. On Dec. o' -%/ t"e 0( o' Aldecoa andCo. !ent into li1)idation and obtained anot"e P$%%%% 'o( t"e ban2 ),on t"econdition t"at t"is !o)ld be coveed b* t"e ,evio)s (ot+a+e. In Octobe -%3

4oa1)in and 5oilo Iba6e7 de Aldecoa 0led an action a+ainst t"e ban2 'o t"e ,),oseo' ann)llin+ t"e (ot+a+es e8ec)ted b* t"e( on t"e +o)nds t"at t"e* !ee (inosat t"e ti(e inca,able o' ceatin+ a valid (ot+a+e ),on t"ei eal ,o,et*. T"eCo)t o' 9ist Instance dis(issed t"e co(,laint as to 4oa1)in ),on t"e +o)nd t"at"e "ad ati0ed t"ose (ot+a+es a'te beco(in+ o' a+e b)t enteed a :)d+(entann)llin+ said (ot+a+es !it" es,ect to 5oilo. Bot" ,aties a,,ealed 'o( t"isdecision and t"e case !as still ,endin+ in t"e S),e(e Co)t !"en HSBC 0led anaction a+ainst Aldecoa and Co. and its ,atnes 'o t"e collection o' a s)( o' (one*and 'oeclos)e o' t"e (ot+a+ed ,o,eties. 4)d+e(ent !as enteed in 'avo o' t"e

ban2.

ISSUE:

;"et"e o not t"e action 0led b* t"e ban2 s"o)ld be dis(issed on t"e +o)nd o' lis,endens.

RULING:

No. A ,lea o' t"e ,endenc* o' a ,io action is not available )nless t"e ,io action iso' s)c" a c"aacte t"at "ad a :)d+(ent been endeed t"eein on t"e (eits s)c"a :)d+(ent !o)ld be concl)sive bet!een t"e ,aties and co)ld be ,leaded in ba o't"e second action.

In t"e instant case t"e 'o(e s)it is to ann)l t"e (ot+a+es !"ile t"e ot"e one is'o t"e 'oeclos)e. I' t"e 0nal :)d+(ent in t"e 'o(e action is t"at t"e (ot+a+esbe ann)lled s)c" an ad:)dication !ill den* t"e i+"t o' t"e ban2 to 'oeclose t"e(ot+a+es. B)t a valid decee !ill not ,event t"e ban2 'o( 'oeclosin+ t"e(. Ins)c" an event t"e :)d+(ent !o)ld not be a ba to t"e ,osec)tion o' t"e ,esentaction. T"e )le is not ,edicated ),on s)c" a contin+enc*. It is a,,licable bet!eent"e sa(e ,aties onl* !"en t"e :)d+(ent to be endeed in t"e action 0stinstit)ted !ill be s)c" t"at r!ar"#$$ o% &h'ch (ar)* '$ $+cc$$%+# it !illa(o)nt to es ad:)dicata a+ainst t"e second action.

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1. Sh''+ $. Ma!$a#'/, FGU Cor( ).a#

Fac)$:

Petitione clai(s t"at scondo(ini)( ,o:ect.

T"e a+ee(ent !as te(inated.

D)e to s e')sal to et)n)nli1)idated advance ,a*(ent and ot"e

(oneta* liabilities ,etitione sent a notice to es,ondent 9G? Ins)ancede(andin+ da(a+es ,)s)ant to t"e bonds t"e 'o(e "ad iss)ed 'o t"es)bcontact.

Petitione 0led a co(,laint 'o act)al da(a+es 'o beac" o' contact a+ainst

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9o 'ail)e o' ,etitione to ,osec)te RTC dis(issed t"e case. RTC denied t"e,etitione>s s dis(issal so t"at on a,,eal t"eevie!in+ co)t can eadil* dete(ine t"eprima facie:)sti0cation 'o t"e dis(issal

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T"ee !as a denial o' d)e ,ocess. Ele(enta* d)e ,ocess de(ands t"at t"e,aties to a liti+ation be +iven in'o(ation on "o! t"e case !as decided as !ell asan e8,lanation o' t"e 'act)al and le+al easons t"at led to t"e concl)sions o' t"eco)t.;"ee t"e easons ae absent a decision "as absol)tel* not"in+ to s),,ot itand is t")s a n)llit*.

Th a((a# &a$ (ro(r#* #"+/"r R+# 41 o% )h R+#$ o% Co+r)

In Olave vs. o t"e tial co)t>s (otion t"e'acts to be dete(ined b* t"e CA s"o)ld incl)de t"e +o)nds s,eci0ed )ndeSection R)le - o' t"e R)les o' Co)t. A co)t co)ld onl* iss)ea motupropriodis(issal ,)s)ant to t"e +o)nds (entioned in t"is )le and 'o lac2o' :)isdiction ove t"e s)b:ect (atte.MT"ese +o)nds ae (attes o' 'acts. T")s+iven t"at t"e dis(issal ode does not disclose its 'act)al basis !e ae t")s,es)aded t"at t"e ,etitione "ad ,o,el* 0led its a,,eal 'o( t"e dis(issal ode)nde R)le #- o' t"e R)les o' Co)t.

Th "'$'$$a# o% )h ca$ '$ /o) $+((or)" * )h %ac)$ o% )h ca$

T"e 'ollo!in+ events !ee c"onolo+icall* ,o8i(ate to t"e dis(issal o' CivilCase No. %#33 a t"e co)t ad(itted 9G? Ins)ance>s t"id-,at*co(,laint bt"e tial co)t cancelled "eain+ ),on 9G? Ins)ance>s (otion and c Baetion+0led "isAnswer to t"e t"id-,at*co(,laintb)t did not seve it ),on t"e ,etitione.

None o' t"ese events s1)ae !it" t"e +o)nds s,eci0ed b* Section R)le - o' t"eR)les o' Co)t 'o t"e motupropriodis(issal o' a case 'o 'ail)e to ,osec)te.

T"is does not satis'* t"e standads o' non ,ose1)it). T"e ')nda(ental test'o non prosequitur is !"et"e )nde t"e cic)(stances t"e ,lainti@ is c"a+eable!it" !ant o' d)e dili+ence in 'ailin+ to ,oceed !it" easonable ,o(,tit)de.T"ee()st be )n!illin+ness on t"e ,at o' t"e ,lainti@ to ,osec)te.

In t"is case t"e ,aties> o!n naations o' 'acts de(onstate t"e ,etitione>s

!illin+ness to ,osec)te its co(,laint. Indeed neit"e es,ondents 9G? Ins)anceno Baetion+ !as able to ,oint to an* s,eci0c act co((itted b* t"e ,etitione to

:)sti'* t"e dis(issal o' t"ei case.

;"ile it is discetiona* on t"e tial co)t to dis(iss cases dis(issals o' actionss"o)ld be (ade !it" cae. T"e so)nd discetion de(ands vi+ilance in d)l*

http://sc.judiciary.gov.ph/jurisprudence/2012/june2012/170026.htm#_ftn32http://sc.judiciary.gov.ph/jurisprudence/2012/june2012/170026.htm#_ftn32

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eco+ni7in+ t"e cic)(stances s)o)ndin+ t"e case to t"e end t"at tec"nicalit*s"all not ,evail ove s)bstantial :)stice.