Professional Documents
Culture Documents
Article VII of the 1987 Constitution mandating this Court to promulgate rules providing for a simplified and
inexpensive procedure for the speedy disposition of cases. Also, Section 2(a), Rule 18 of the 1997 Rules
of Civil Procedure, as amended, requires the courts to consider the possibility of an amicable settlement
or of submission to alternative modes of resolution for the early settlement of disputes so as to put an end
to litigations.
To reiterate, A.M. No. 01-10-5-SC-PHILJA regards mediation as part of pre-trial where parties are
encouraged to personally attend the proceedings. The personal non-appearance, however, of a party may
be excused only when the representative, who appears in his behalf, has been duly authorized to enter
into possible amicable settlement or to submit to alternative modes of dispute resolution. To ensure the
attendance of the parties, A.M. No. 01-10-5-SC-PHILJA specifically enumerates the sanctions that the
court can impose upon a party who fails to appear in the proceedings which includes censure, reprimand,
contempt, and even dismissal of the action.15 The respective lawyers of the parties may attend the
proceedings and, if they do so, they are enjoined to cooperate with the mediator for the successful
amicable settlement of disputes16 so as to effectively reduce docket congestion.
Although the RTC has legal basis to order the dismissal the case, the Court finds this sanction too severe
where the records of the case is devoid of evidence of willful or flagrant disregard of the rules on
mediation proceedings. There is no clear demonstration that the absence of petitioners representative
during mediation proceedings on the last day was intended to perpetuate delay in the litigation of the
case. Neither is it indicative of lack of interest on the part of petitioner to enter into a possible amicable
settlement of the case.
The Court notes that Manalang was not entirely at fault for the cancellation and resettings of the
conferences. Let it be underscored that respondents representative and counsel, Atty. Miguel,
came late during the January 19 and February 9, 2008 conferences which resulted in their
cancellation and the final resetting of the mediation proceedings to March 1, 2008. Considering
the circumstances, it would be most unfair to penalize petitioner for the neglect of her
lawyer.1avvphi1
Assuming that the trial court correctly construed the absence of Manalang as a deliberate refusal
to comply with its Order or to be dilatory, it cannot be said that the court was powerless and
virtually without recourse. Indeed, there are other available remedies to the court a quo under A.M.
No. 01-10-5-SC-PHILJA, apart from immediately ordering the dismissal of the case. a mere
censure or reprimand would have been sufficient for petitioners representative and her counsel
so as to be informed of the courts intolerance of tardiness. Unless the conduct of the party is so
negligent, irresponsible, contumacious, or dilatory as for non-appearance to provide substantial
grounds for dismissal, the courts should consider lesser sanctions which would still achieve the
desired end.
It bears emphasis that the subject matter of the complaint is a valuable parcel of land measuring
328 square meters and that petitioner had allegedly spent a lot of money not only for the payment
of the docket and other filing fees but also for the extra-territorial service of the summons to the
respondents who are now permanent residents of the U.S.A. Certainly, petitioner stands to lose
heavily on account of technicality. Technicalities should take a backseat against substantive
rights and should give way to the realities of the situation. WHEREFORE, the petition is GRANTED.
SO ORDERED.
respondent Samsung filed a Complaint[3] for damages against petitioner Real Bank,
Inc.. In its complaint, respondent Samsung alleged:
2.5. Reynaldo Senson, indorsed the checks and then deposited all the
three (3) checks in the account of Mabuhay Electronics Company under Savings
Account
2.7. Subsequently, Reynaldo Senson, alias Edgardo Bacea was able to
withdraw the amount of P1,563,750.00. The value of the three (3) checks were
negligently credited by defendant [Real Bank] to the account of Mabuhay
Electronics Company, a single proprietorship, although the check was payable
only to Mabuhay Electronics Corporation, a juridical entity, and to no one else.
xxxx
[Real Bank] ignored and refused to reimburse them with the value of the
three (3) checks.
Petitioner Real Bank, Inc. filed its Answer[6] on 23 February 1998, to which a Reply[7] was
filed by respondent Samsung on 5 March 1998.
respondent Samsung filed a Motion to Dismiss the Third Party Complaint for failure of
petitioner Real Bank, Inc. to prosecute its case and Motion to Set the Case for Pre-Trial. [12] On
the other hand, petitioner Real Bank, Inc. filed a Motion to Serve Summons by Publication on
the third-party defendant Reynaldo A. Senson alias Edgardo Bacea.
the trial court issued an Order requiring both petitioner Real Bank, Inc. and respondent
Samsung to appear in a mediation proceeding.[15] This Order of the trial court was sent to
respondent Samsungs former counsel, V.E. Del Rosario and Partners which had at that time
already filed a notice of withdrawal of appearance.[16]
The mediation proceedings took place as scheduled and Mediator submitted her report
to the Court stating therein that no action was taken on the case referred for mediation because
respondent Samsung failed to appear.[17]
the new counsel of respondent Samsung (entered its appearance.
an Order was issued dismissing the complaint of respondent Samsung for failure to appear at
the mediation conference previously scheduled by the trial judge
Respondent Samsungs new counsel challenged the Order in a Motion for
Reconsideration alleging that the dismissal is improper and inappropriate as it was not notified
of the scheduled mediation conference. Besides, the notice of the scheduled mediation was
sent to the previous counsel of respondent Samsung who had already withdrawn and not to the
new lawyers.[21]
In this petition, it is petitioner Real Bank, Inc.s position that RTC acted properly in
dismissing Civil Case No. 97-86265 for failure on the part of respondent Samsung to appear on
the scheduled mediation conference.
In Senarlo v. Judge Paderanga,[27] this Court accentuated that mediation is part of pretrial and failure of the plaintiff to appear thereat merits sanction on the part of the absent
party. This court held:
A.M. No. 01-10-5-SC-PHILJA dated 16 October 2001, otherwise known
as the Second Revised Guidelines for the Implementation of Mediation
Proceedings and Section 5, Rule 18 of the Rules of Court grant judges the
discretion to dismiss an action for failure of the plaintiff to appear at mediation
proceedings.
A.M. No. 01-10-5-SC-PHILJA considers mediation a part of pre-trial and
provides sanctions for the absent party:
12. Sanctions.
Since mediation is part of Pre-Trial, the trial court shall impose the
appropriate sanction including but not limited to censure, reprimand,
contempt and such sanctions as are provided under the Rules of Court
for failure to appear for pre-trial, in case any or both of the parties absent
himself/themselves, or for abusive conduct during mediation proceedings.
Under Rule 18, Section 5 of the Rules of Court, failure of the plaintiff to
appear at pre-trial shall be cause for dismissal of the action:
Sec. 5. Effect of failure to appear. The failure of the plaintiff to
appear when so required pursuant to the next preceding section shall be
cause for dismissal of the action. The dismissal shall be with prejudice,
unless otherwise ordered by the court. A similar failure on the part of the
It being daylight clear that the withdrawal of respondent Samsungs original counsel was
sufficient as the same carried the stamp of approval of the client, the notice of mediation sent to
respondent Samsungs original counsel was ineffectual as the same was sent at the time when
such counsel had already validly withdrawn its representation. Corollarily, the absence of
respondent Samsung during the scheduled mediation conference was excusable and
justified. Therefore, the trial court erroneously dismissed Civil Case No. 97-86265.
Herein respondent Samsung instituted Civil Case No. 97-86265 before the RTC, to
recover the amount it claims to have lost due to the negligence of petitioner Real Bank, Inc.,
clearly a property right. The substantive right of respondent Samsung to recover a due and
demandable obligation cannot be diminished by an unwarranted strictness in the application of
a rule of procedure.[32]
In Calalang v. Court of Appeals,[33] this Court underscored that unless a partys conduct
is so negligent, irresponsible, contumacious or dilatory as to provide substantial grounds for
dismissal for non-appearance, the court should consider lesser sanctions which would still
amount into achieving the desired end.
the RTC[14] ruled that the take-over of some work items by respondent was not equivalent to
a termination, but a mere modification, of the Subcontract. The latter was ordered to give full
payment for the work completed by petitioner.
Ruling of the Court of Appeals
On appeal, the CA reversed the RTC and ordered the referral of the case to
arbitration. The appellate court held as arbitrable the issue of whether respondents take-over
of some work items had been intended to be a termination of the original contract under Letter
K of the Subcontract. Hence, this Petition.[16]
The Issues
In its Memorandum, petitioner raises the following issues for the Courts consideration:
A
Whether or not there exist[s] a controversy/dispute between petitioner and respondent
regarding the interpretation and implementation of the Sub-Contract Agreement dated February
22, 1983 that requires prior recourse to voluntary arbitration;
B
In the affirmative, whether or not the requirements provided in Article III [1] of CIAC Arbitration
Rules regarding request for arbitration ha[ve] been complied with[.][17]
The Courts Ruling
The Petition is unmeritorious.
First Issue:
Whether Dispute Is Arbitrable
Essentially, the dispute arose from the parties ncongruent positions on whether certain
provisions of their Agreement could be applied to the facts. The instant case involves technical
discrepancies that are better left to an arbitral body that has expertise in those areas. In any
event, the inclusion of an arbitration clause in a contract does not ipso facto divest the courts of
jurisdiction to pass upon the findings of arbitral bodies, because the awards are still judicially
reviewable under certain conditions.[18]
From the subcontract the resolution of the dispute between the parties herein requires a
referral to the provisions of their Agreement. Within the scope of the arbitration clause are
discrepancies as to the amount of advances and billable accomplishments, the application of
the provision on termination, and the consequent set-off of expenses.
A review of the factual allegations of the parties reveals that they differ on the following
questions: (1) Did a take-over/termination occur? (2) May the expenses incurred by respondent
in the take-over be set off against the amounts it owed petitioner? (3) How much were the
advances and billable accomplishments?
The resolution of the foregoing issues lies in the interpretation of the provisions of the
Agreement.
Being an inexpensive, speedy and amicable method of settling disputes,[24] arbitration -along with mediation, conciliation and negotiation -- is encouraged by the Supreme
Court. Aside from unclogging judicial dockets, arbitration also hastens the resolution of
disputes, especially of the commercial kind.[25] It is thus regarded as the wave of the future in
international civil and commercial disputes.[26] Brushing aside a contractual agreement calling for
arbitration between the parties would be a step backward.[27]
Consistent with the above-mentioned policy of encouraging alternative dispute resolution
methods, courts should liberally construe arbitration clauses. Provided such clause is
susceptible of an interpretation that covers the asserted dispute, an order to arbitrate should be
granted.[28] Any doubt should be resolved in favor of arbitration.[29]
Second Issue:
Prior Request for Arbitration
According to petitioner, assuming arguendo that the dispute is arbitrable, the failure to file a
formal request for arbitration with the Construction Industry Arbitration Commission (CIAC)
precluded the latter from acquiring jurisdiction over the question. We are not persuaded.
Section 1 of Article II of the old Rules of Procedure Governing Construction Arbitration
indeed required the submission of a request for arbitration.
On the other hand, Section 1 of Article III of the new Rules of Procedure Governing
Construction Arbitration has dispensed with this requirement and recourse to the CIAC may now
be availed of whenever a contract contains a clause for the submission of a future controversy
to arbitration
The foregoing amendments in the Rules were formalized by CIAC Resolution Nos. 2-91
and 3-93.[31]
The difference in the two provisions was clearly explained in China Chang Jiang Energy
Corporation (Philippines) v. Rosal Infrastructure Builders et al.[32] from which we quote thus:
Under the present Rules of Procedure, for a particular construction contract to fall within the
jurisdiction of CIAC, it is merely required that the parties agree to submit the same to voluntary
arbitration Unlike in the original version of Section 1, as applied in the Tesco case, the law as it
now stands does not provide that the parties should agree to submit disputes arising from their
agreement specifically to the CIAC for the latter to acquire jurisdiction over the same. as long
as the parties agree to submit to voluntary arbitration, regardless of what forum they may
choose, their agreement will fall within the jurisdiction of the CIAC, such that, even if they
specifically choose another forum, the parties will not be precluded from electing to submit their
dispute before the CIAC because this right has been vested upon each party by law, i.e., E.O.
No. 1008.[34]
The arbitral clause in the Agreement is a commitment on the part of the parties to submit to
arbitration the disputes covered therein. Since petitioner has already filed a Complaint with the
RTC without prior recourse to arbitration, the proper procedure to enable the CIAC to decide on the
dispute is to request the stay or suspension of such action, as provided under RA 876 [the
Arbitration Law].[37]
WHEREFORE, the Petition is DENIED
WILFREDO M. TRINIDAD,
- versus -
OFFICE OF THE OMBUDSMAN THRU THE OMBUDSMAN SIMEON V. MARCELO AND DEPUT
OMBUDSMAN VICTOR C. FERNANDEZ, ASIAS EMERGING DRAGON CORPORATION, AND TH
SANDIGANBAYAN PEOPLE OF THE PHILIPPINES,
Challenged via petition for certiorari and prohibition are the Resolution of September 16,
2004 and Order of November 9, 2004 of the Office of the Ombudsman which found probable
cause to hale into court petitioner WilfredoM. Trinidad, inter alia, for violation of Section 3(j) and
Section 3(e) of the Anti-Graft and Corrupt Practices Act[2]
In Criminal Case No. 28089, petitioner, as DOTC Assistant Secretary and member of the
DOTC Pre-qualifications, Bids and Awards Committee for the NAIA IPT III Project (PBAC), was
charged with knowingly pre-qualifying Paircargo Consortium[3](later incorporated into Philippine
International Air Terminals Co., Inc. or PIATCO) despite its failure to meet the financial capability
standards set by law.
In Criminal Case No. 28093, petitioner, as DOTC Secretary in an officer-in-charge
capacity, was charged with having granted PIATCO undue benefit and advantage through the
execution Third Supplement to the Amended and Restated Concession Agreement [4] covering
the NAIA IPT III Project.
During the pendency of the petition, the Sandiganbayan found no probable cause to
proceed with the trial in, and thus dismissed Criminal Case No. 28093 The petition insofar as it
concerns Criminal Case No. 28093 is thus effectively mooted.
What is thus left for resolution is only that part of the petition affecting Criminal Case No.
28089 which this Court finds to be bereft of merit.
In Criminal Case No. 28089, petitioner is charged with violation of Section 3(j) of the
Anti-Graft and Corrupt Practices Act
Petitioner contends, however, that AEDC is barred from filing a criminal complaint against
him due to the dismissal by the Regional Trial Court of Pasig City, of a case filed by the AEDC
for declaration of nullity of proceedings, mandamus, and injunction which sought to disqualify
the Paircargo Consortium and to award the NAIA IPT III Project to AEDC. The case was
dismissed upon the parties joint motion with a mutual quitclaim and waiver.[24]
It is a firmly recognized rule, however, that criminal liability cannot be the subject of a
compromise.[25] For a criminal case is committed against the People, and the offended party
may not waive or extinguish the criminal liability that the law imposes for its commission. And
that explains why a compromise is not one of the grounds prescribed by the Revised Penal
Code for the extinction of criminal liability.[26]
Even a complaint for misconduct, malfeasance or misfeasance against a public officer or
employee cannot just be withdrawn at any time by the complainant. This is because there is a
need to maintain the faith and confidence of the people in the government and its agencies and
instrumentalities.[27]
The ineluctable conclusion, therefore, is that the order dismissing the above-mentioned
civil case does not bar petitioners criminal prosecution.
Petitioners reliance on Republic v. Sandiganbayan[28] is misplaced. In that case, the
Court dismissed the criminal case following the forging of a compromise agreement by the
accused and the Presidential Commission on Good Government (PCGG) which gave the
accused absolute immunity from criminal and civil prosecutions. As correctly distinguished by
the OSG, that case involved the PCGG which, unlike AEDC, is a government agency expressly
authorized by law to grant civil and criminal immunity.[29]
WHEREFORE, the petition is DISMISSED.
Ostensibly, while the rules allow the trial court to suspend its proceedings consistent with
the policy to encourage the use of alternative mechanisms of dispute resolution, in the instant
case, the trial court only gave the parties fifteen (15) days to conclude a deal. This was, to say
the least, a passive and paltry attempt of the court a quo in its task of persuading litigants to
agree upon a reasonable concession.[34]Hence, if only to inspire confidence in the pursuit of a
middle ground between petitioner and respondents, we must not interpret the trial
courts Orders as dismissing the action on its own motion because the parties, specifically
petitioner, were anxious to litigate their case as exhibited in their several manifestations and
motions.
Clearly, another creative remedy was available to the court a quo to attain a speedy
disposition of Civil Case No. 99-518 without sacrificing the course of justice. Since the failure of
petitioner to submit a compromise agreement was the refusal of just one of herein respondents,
i.e., Benito Sy, to sign his name on the conforme of the loan restructure documents, and the
common concern of the courts a quo was dispatch in the proceedings, the holding of a pre-trial
conference was the best-suited solution to the problem as this stage in a civil action is where
issues are simplified and the dispute quickly and genuinely reconciled. By means of pre-trial,
the trial court is fully empowered to sway the litigants to agree upon some fair compromise.
Dismissing the civil case and compelling petitioner to re-file its complaint is a dangerous,
costly and circuitous route that may end up aggravating, not resolving, the
disagreementWHEREFORE, the Petition for Review is GRANTED.
for pre-trial
Petitioner moved for reconsideration but it was denied. Thus, it filed a petition for
certiorari and mandamus with prayer for preliminary injunction and temporary restraining order
before the Regional Trial Court of Makati City.
the Regional Trial Court granted the petition
Finally, the decision to refer a case to mediation involves judicial discretion. Although
Sec. 9 B, Rule 141 of the Rules of Court, as amended by A. M. No. 04-2-04-SC, requires the
payment of P1,000.00 as mediation fee upon the filing of a mediatable case, petition, special
civil action, comment/answer to the petition or action, and the appellees brief, the final decision
to refer a case to mediation still belongs to the ponente, subject to the concurrence of the other
members of the division.
As clarified by A. M. No. 04-3-15 (Revised Guidelines for the Implementation of
Mediation in the Court of Appeals) datedMarch 23, 2004:
II.
SELECTION OF CASES
may also submit a written request in any form to the Court of Appeals. In the instant case,
petitioner failed to write or stamp the notation mediatable on its Memorandum of
Appeal. Moreover, it failed to submit any written request for mediation.
WHEREFORE, the petition is DENIED.
LETICIA B. AGBAYANI,
Petitioner,
- versus COURT OF APPEALS, DEPARTMENT OF JUSTICE and LOIDA MARCELINA J. GENABE,
Respondents.
Antecedent Facts
Agbayani and Genabe were both employees of the Regional Trial Court working as
Court Stenographer and Legal Researcher II, respectively. Agbayani filed a criminal complaint
for grave oral defamation against Genabe
the Office of the City Prosecutor of Las Pias City[5] found probable cause.
However, upon a petition for review filed by Genabe, the DOJ Undersecretary Ernesto L.
Pineda (Pineda) found that:
Contrary to the findings in the assailed resolution, we find that the subject
utterances of respondent constitute only slight oral defamation.
Notwithstanding the foregoing, we believe that the instant case should
nonetheless be dismissed for non-compliance with the provisions of Book III, Title
I, Chapter 7 (Katarungang Pambarangay), of Republic Act No. 7160 (The Local
Government Code of 1991). As shown by the records, the parties herein are
residents of Las Pias City. x x x
The complaint-affidavit, however, failed to show that the instant case was
previously referred to the barangay for conciliation in compliance with Sections
408 and 409, paragraph (d), of the Local Government Code. The DOJ directed
for the withdrawal of the information for grave oral defamation filed.
The
petitioner
filed
a motion
for
reconsideration,
which
was
denied
in
[9]
Assignment of Errors
Maintaining her stance, Agbayani raised the following, to wit:
in
their
workplace.[25] Agbayanis
complaint
should
have
undergone
the
mandatory barangay conciliation for possible amicable settlement with respondent Genabe,
pursuant to Sections 408 and 409 of Republic Act No. 7160 or the Local Government Code of
1991 which provide:
All told, we find that the CA did not commit reversible error in upholding the Resolution
dated May 17, 2007 of the DOJ as we, likewise, find the same to be in accordance with law and
jurisprudence.
WHEREFORE, premises considered, the petition for review is hereby DENIED.
RIZALINA P. POSITOS,
Petitioner,
- versus JACOB M. CHUA,
Petitioner had since 1980 been occupying a portion of a parcel of land. The land was
likewise occupied by members of the Sto. Tomas de Villanueva Settlers Association (the
Association), of which petitioner was a member. the registered owner of the land, Ansuico, Inc.,
transferred its rights and interests thereover to respondent.
The Association thereupon filed a complaint against respondent for prohibitory injunction
before the RTC of Davao City. A compromise agreement was thereafter forged and approved by
the trial court wherein the Association agreed to vacate the premises provided respondent
extends financial assistance to its members.
Petitioner refused to abide by the compromise agreement.
The conflict was referred for conciliation before the Lupon following Republic Act No.
7160 (R.A. 7160), The Local Government Code. Respondent did not appear during the
proceedings but sent a representative on his behalf. No settlement having been reached,
respondent filed a complaint against petitioner for Unlawful Detainer with prayer for damages
and attorneys fees.
petitioner alleged that the failure of respondent to appear personally during the proceedings is
equivalent to non-compliance with R.A. 7160 to thus render the complaint dismissible;
the MTCC rendered judgment in favor of respondent,
Petitioner appealed to the RTC of Davao City.
Davao City RTC, acting on petitioners appeal, affirmed the MTCC decision, [7] it holding
that since respondent was duly represented in the conciliation proceedings by an attorney-infact, the Local Government Code was substantially complied with.
Petitioner elevated the case to the Court of Appeals which issued the challenged Decision
dismissing without prejudice respondents complaint for unlawful detainer on the ground of lack
of cause of action, he having failed to comply with the barangay conciliation procedure.
Petitioner filed a motion for reconsideration of the appellate courts decision which was
denied. Hence, the present petition for review on certiorari.
As reflected above, respondents complaint was dismissed for failure to comply with the
conciliation process. Non-compliance affected the sufficiency of his cause of action and
rendered the complaint susceptible, as in fact it resulted to dismissal on the ground of
prematurity.
WHEREFORE, the petition is DENIED.