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Saturday, November 23, 2013

G.R. No. 147417 July 8, 2005 SPS. VICTOR & MILAGROS PEREZ and CRISTINA AGRAVIADOR AVISO, Petitioners, vs. ANTONIO HERMANO, Respondent.



TOPIC: JOINDER OF CAUSES OF ACTION

NATURE OF THE CASE: This petition was filed after the CA dismissed the petitioners’ original action for certiorari for being filed out of time. The original action filed with the CA questions the decision of the RTC ruling that there was a misjoinder in the causes of action in the civil case filed by the petitioners, and consequently dropping respondent Hermano from the said case.
FACTS:  Petioner spouses and Aviso filed three causes of action based on the following allegations. Sometime in November 1997, the spouses Perez and Aviso entered into a Contract to Sell with Zecson Land Inc. as the buyer through its president Zenie Sales-Contreras. The subject properties were five parcels of land valued at P19, 104, 000. In the agreement entered into by the parties, Zecson Land Inc. shall pay a down payment to the spouses and Aviso, another portion of the purchase price will be given as cash advance upon the execution of the contract, while the rest shall be used by Zecson as payment for loans earlier contracted by the three from the company. This is the first cause of action.
            In the second cause of action, the spouses Perez and Aviso contend that they were tricked to sign other documents simultaneous with the execution of the Contract to Sell. Two of the said documents were mortgage deeds over the same 5 properties in favour of respondent Hermano, whom they have never met. Sales-Contreras allegedly explained to them that “the mortgage contracts would merely serve to facilitate the payment of the price agreed upon in their Contract  to Sell.” However, the spouses and Aviso assert that it was never their intention to mortgage their properties to Hermano and that they have never received a single centavo from mortgaging their properties to him. They now then seek a TRO against Hermano who informed them that he would be foreclosing the subject properties.
            In their third cause of action, the spouses and Aviso pray for damages against Zecson Land, Inc. and/or Zenie Sales-Contreras, Atty. Perlita Vitan-Ele and Antonio Hermano. They claim that they are entitled to damages from the aforementioned defendants for Zecson and Contreras’ failure to comply with their obligations under their Contract to Sell and in misleading and misrepresenting them into mortgaging their properties to Hermano, who in turn, had not paid them the proceeds thereof. 
            Thus, the first cause of action was for enforcement of contract to sell entered into between the spouses and Aviso and Zecson, the second was for annulment or rescission of two contracts of mortgage entered into between the spouses and Aviso and Hermano, while the last one was for damages against all the mentioned defendants. A joinder was made on these causes of action and a civil case for Enforcement of Contract and Damages with Prayer for the Issuance of a Temporary Restraining Order (TRO) and/or Preliminary Injunction against Zescon Land, Inc. and/or its President Zenie Sales-Contreras, Atty. Perlita Vitan-Ele and against respondent herein Antonio Hermano was filed before the RTC. 
            Hermano denied the spouses and Aviso’s allegations through his Answer with Counterclaim. Hermano also filed a “Motion with Leave to Dismiss the Complaint or Ordered Severed for Separate Trial" which was granted by the trial court on the ground that there was a misjoinder in the causes of action. As a consequence, Hermano was dropped from the civil case. The spouses Perez and Aviso moved for reconsideration but was also denied by the trial court. So, they filed an original action for certiorari before the CA. 
            The CA dismissed the petition "for having been filed beyond the reglementary period pursuant to Section 4, Rule 65 of the 1997 Rules on Civil Procedure, as amended." The subsequent motion for reconsideration filed by the petitioners was also denied. Hence this petition.
ISSUE RELATED TO THE TOPIC: WON the trial court erred in dropping Hermano in  the civil action and ruling that there was a misjoinder in the causes of action. 
HELD: Yes. The statutory intent behind the provisions on joinder of causes of action is to encourage joinder of actions which could reasonably be said to involve kindred rights and wrongs, although the courts have not succeeded in giving a standard definition of the terms used or in developing a rule of universal application. The dominant idea is to permit joinder of causes of action, legal or equitable, where there is some substantial unity between them. While the rule allows a plaintiff to join as many separate claims as he may have, there should nevertheless be some unity in the problem presented and a common question of law and fact involved, subject always to the restriction thereon regarding jurisdiction, venue and joinder of parties. Unlimited joinder is not authorized. 
What the SC gathered from the trial court’s Orders was that the trial court ruled that there was a misjoinder in the civil case filed because it did not comply with the conditions on joinder of parties. It is well to remember that the joinder of causes of action may involve the same parties or different parties. If the joinder involves different parties, as in this case, there must be a question of fact or of law common to both parties joined, arising out of the same transaction or series of transaction. 
It can be deduced from the averments made in the complaint that there are questions of fact and law common to both Zecson Land, Inc. and Hermano arising from a series of transaction over the same properties. 
            There is the question of fact, for example, of whether or not Zescon Land, Inc., indeed misled petitioners to sign the mortgage deeds in favor of respondent Hermano. There is also the question of which of the four contracts were validly entered into by the parties. Note that under Article 2085 of the Civil Code, for a mortgage to be valid, it is imperative that the mortgagor be the absolute owner of the thing mortgaged. Thus, respondent Hermano will definitely be affected if it is subsequently declared that what was entered into by petitioners and Zescon Land, Inc., was a Contract of Sale (as evidenced by the Deed of Absolute Sale signed by them) because this would mean that the contracts of mortgage were void as petitioners were no longer the absolute owners of the properties mortgaged. Finally, there is also the question of whether or not Zescon Land, Inc., as represented by Sales-Contreras, and respondent Hermano committed fraud against petitioners as to make them liable for damages.
Thus, the petition was granted, the Orders of the RTC were annulled and set aside, and the RTC was ordered to add respondent Antonio Hermano as one of the defendants in Civil Case filed by spouses Perez and Aviso.

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