YUCHENGCO V Republic
YUCHENGCO V Republic
YUCHENGCO V Republic
REPUBLIC OF THE
PHILIPPINES, PRESIDENTIAL COMMISSION ON GOOD GOVERNMENT,
ESTATE OF FERDINAND E. MARCOS, PRIME HOLDINGS, INC. ESTATE
OF RAMON U. COJUANGCO AND IMELDA O.
COJUANGCO, respondents. batas
DECISION
YNARES-SANTIAGO, J.:
This is a petition for review to set aside the Resolution of the Sandiganbayan
dated October 9, 1996 dismissing petitioners Amended-complaint-in-
[1]
On July 16, 1987, the Republic of the Philippines (hereinafter, the Republic)
filed with the Sandiganbayan a complaint for Rescission, Reconveyance,
Restitution, Accounting and Damages against Ferdinand E. Marcos, Imelda
Marcos and Prime Holdings, Inc. (hereinafter, PHI), docketed as Civil Case
No. 0002. Alleging ownership of the properties of the Marcoses sought to be
forfeited by the Republic, petitioner Yuchengco filed a motion for intervention
and complaint-in-intervention on August 11, 1988, impleading the Republic,
the Presidential Commission on Good Government (PCGG), Ferdinand E.
Marcos, Imelda Marcos and PHI as defendants-in-intervention. Petitioner
[3]
On June 11, 1993, the Sandiganbayan, in open court, admitted the amended
complaint-in-intervention. Consequently, amended answers-in-intervention
[7]
On the other hand, the Estate of Ramon Cojuangco and Imelda O. Cojuangco
(hereinafter, the Cojuangcos) filed a motion to dismiss the amended
[8]
PHI and the Cojuangcos filed a reply alleging that since the amended
[11]
Further, respondents PHI and the Cojuangcos contend that as the action
seeks to litigate the ownership and disposition of properties consisting of
subject shares, the amount of docket fees must be based on the total value of
the same.
In their sur-rejoinder filed on January 28, 1994, respondents PHI and the
[13]
On October 11, 1994, PHI and the Cojuangcos opposed the motion to admit
second amended complaint-in-intervention, contending that jurisdictional
[16]
A motion for early resolution was filed by petitioner on October 27, 1994. He
[17]
averred that since the main issues in the motion to dismiss filed by PHI and
the Cojuangcos dwell on payment of docket fees and the amount thereof,
which may possibly involve the jurisdiction of the Sandiganbayan, and it is
unclear whether the filing of the complaint-in-intervention tolled the running of
the 10-year prescriptive period, there is a need for the Sandiganbayan to
resolve the motion to dismiss as soon as possible.
On March 31, 1995, petitioner moved that he be allowed to post a bond, to [18]
answer for whatever docket fees he may be held to pay, with the prayer that
the running of the prescriptive period be deemed tolled pending the resolution
by the Sandiganbayan of the motion to dismiss.
resolution of the motion to dismiss until trial, as the grounds raised therein do
not appear to be indubitable.
Meanwhile, PHI and the Cojuangcos opposed petitioners motion to post bond
on the ground that the same should not be construed as a substitute for the
actual payment of the proper docket fees, because payment of docket fees
should not be subject to any contingency. [20]
On the other hand, petitioner moved for the partial reconsideration of the
Resolution dated April 17, 1995 insofar as the deferment of the issue on
payment of docket fees and the amount thereof. In the alternative, petitioner
prayed that his motion to post bond be granted. PHI and the Cojuangcos
[21]
also moved for the reconsideration of the April 17, 1995 Resolution. [22]
Meanwhile, petitioner prayed for the denial of the motion to dismiss in view of
the passage of Republic Act No. 7975 which, like Executive Order 14, did
[23]
In the meantime, petitioner filed a petition for certiorari before this Court,
docketed as G.R. No. 123264, assailing public respondents decision to defer
[25]
PHI and the Cojuangcos filed a motion for reconsideration, arguing that the [29]
Thereafter, respondents PHI and the Cojuangcos filed their answer to the
amended complaint-in-intervention. [31]
free of charge.
Petitioner filed a motion for reconsideration dated October 30, 1996, and PHI
[34]
As earlier stated, the main issue to be resolved in the case at bar is whether
or not petitioner is barred from asserting his alleged causes of action against
respondents by reason of non-payment of the proper docket fees.
The Sandiganbayan cited several cases spanning from 1932 to 1987 to the
effect that it is not simply the filing of the complaint or appropriate initiatory
pleading, but the payment of the prescribed docket fee, that vests the trial
court with jurisdiction over the subject matter or nature of the action. Kylex
[38]
The ruling that the timely filing of correct docket fees is jurisdictional is all too
familiar. It should be noted, however, that the pronouncements of this Court
on the matter have always been influenced by the peculiar legal and equitable
circumstances surrounding each case. For instance, the Lazaro v.
Eudencia ruling was in accordance with the then applicable law, i.e., Section
[39]
76 of Act No. 190 as amended by Act No. 3615. In Malimit v. Degamo , this [40]
Court ruled that the date of payment of docket fees and not the date of mailing
is considered the date of filing of a petition for quo warranto. In Garcia v.
Vasquez , this Court initially stated that a docket fee must be paid for a
[41]
upon the filing of the complaint. It turned out later, after the complaint was
amended, that the payment was insufficient. This Court ruled that under the
circumstances, the case was docketed upon the first payment and the trial
court already acquired jurisdiction. However, the correct fee based on the
amended complaint was required to be paid.
In the instant case, the Sandiganbayan adhered strictly to the rule enunciated
in Manchester Development Corporation v. Court of Appeals, to wit: [43]
The Court acquires jurisdiction over any case only upon the
payment of the prescribed docket fee. Any amendment of the
complaint or similar pleading will not thereby vest jurisdiction in
the Court, much less the payment of the docket fee based on the
amounts sought in the amended pleading. The ruling in
the Magaspi case, insofar as it is inconsistent with this
pronouncement is overturned and reversed.
In Manchester, this Court stated that the allegation in the body of the
complaint of damages suffered in the amount of P78,000,000.00, and the
omission of a specific prayer for that amount, was intended for no other
purpose than to evade the payment of correct filing fees if not to mislead the
docket clerk in the assessment of the correct fee. The ruling was intended to
put a stop to such an irregularity. In the case at bar, however, we note that
there is no such irregularity or attempt to mislead in the instant petition before
us.
We also note that the Manchester ruling did not become the final statement on
the matter. In Sun Insurance Office Ltd. v. Asuncion, the Court ruled:
[44]
In the said case, the payment of the correct fee within "a reasonable time" but
in no case beyond its applicable prescriptive or reglementary period was
allowed. In another case decided after Manchester, this Court made some
[45]
Where the action involves real property and a related claim for
damages as well, the legal fees shall be assessed on the basis of
both (a) the value of the property and (b) the total amount of
related damages sought. The Court acquires jurisdiction over the
action if the filing of the initiatory pleading is accompanied by the
payment of the requisite fees, or, if the fees are not paid at the
time of the filing of the pleading, as of the time of full payment of
the fees within such reasonable time as the court may grant,
unless, of course, prescription has set in in the meantime. But
where x x x the fees prescribed for an action involving real
property have been paid, but the amounts of certain of the related
damages (actual, moral and nominal) being demanded are
unspecified, the action may not be dismissed. The Court
undeniably has jurisdiction over the action involving the real
property, acquiring it upon the filing of the complaint or similar
pleading and payment of the prescribed fee. And it is not divested
of that authority by the circumstance that it may not have acquired
jurisdiction over the accompanying claims for damages because
of lack of specification thereof. What should be done is imply to
expunge those claims for damages as to which no amounts are
stated, which is what the respondent Court did, or allow, on
motion, a reasonable time for the amendment of the complaint so
as to allege the precise amount of each item of damages and
accept payment of the requisite fees therefor within the relevant
prescriptive period. Exsm
Petitioner points out that when former President Corazon C. Aquino issued
Executive Order No. 14 in 1986 which expanded the Sandiganbayans
jurisdiction to include civil cases, she did not repeal or amend Section 11 of
P.D. 1606 on filing fees.
Similarly, when Congress in 1994 enacted Republic Act No. 7975 further
strengthening the functional and structural organization of the Sandiganbayan,
it did not amend the provision on non-payment of fees even as it amended or
repealed several sections of the original law. When Congress in 1997 passed
Republic Act No. 8429 further amending P.D. 1606, it did not touch the
section on non-payment of court fees. If Congress in repealing various parts
of P.D. 1606 did not touch Section 11, what is the basis of the
Sandiganbayans ruling on repeal or amendment?
Indeed, the actions of the Sandiganbayan clearly call for the application of
equitable considerations. On February 17, 1989, it admitted the complaint-in-
intervention. Answers thereto were filed by PHI and the Cojuangcos. On June
11, 1993, the Sandiganbayan admitted the amended complaint-in-
intervention. More important, the lower court denied the motions to dismiss
filed by respondents questioning the incorrect payment of docket fees in its
resolutions dated April 17, 1995, March 29, 1996 and May 7, 1996. Petitioner
was thus led into believing, long before the ten year prescriptive period
expired, that its complaint-in-intervention would stay admitted.
However, the Sandiganbayan on October 9, 1996 and October 6, 1997 issued
the Resolutions now before us in this petition for review. Petitioners complaint
was dismissed for non-payment of the prescribed docket fees, without obvious
regard to the implications of the reversal of its earlier rulings.
Moreover, on October 27, 1994, petitioner filed a motion for the resolution of
the issue on correct docket fees. When no decision was forthcoming,
petitioner on March 31, 1995 filed a motion to post bond to answer for
whatever additional fees that may be assessed later. On April 17, 1995, the
Sandiganbayan decided to defer the resolution of respondents motions
to dismiss until trial. Petitioner even elevated the inaction of the
Sandiganbayan to the Supreme Court on a petition for certiorari but this was
dismissed for being premature. It can thus be seen that, far from committing
the irregularity illustrated in Manchester, petitioner did the opposite in this
case. Msesm
The following actions must be brought within ten (10) years from
the time the right of action accrues:
3.....Upon a judgment.
(Emphasis provided).
It should be noted that when the issue on docket fees was raised, petitioner
submitted the determination of the same to the sound discretion of the
Sandiganbayan. As earlier stated, he sought for the immediate resolution of
this issue as early as October 27, 1994. In the alternative, petitioner proposed
to post a bond to answer for the docket fees, if such are payable. He even
filed a petition for certiorari, docketed as G.R. No. 123264, to seek an early
resolution of this issue.
Clearly, petitioner did not sleep on his rights, and prescription has not set in to
bar his right to seek judicial relief. The essence of the statute of limitations is
to prevent fraudulent claims arising from unwarranted length of time and not to
defeat actions asserted on the honest belief that they were sufficiently
submitted for judicial determination.
recognized that the sufficiency of the docket fees is a matter for the
determination of the clerk of court and/or his duly authorized docket clerk or
clerk in-charge, the Sandiganbayan could have immediately drawn petitioners
attention if its clerk of court found difficulty in determining the amount of
chargeable docket fees from a reading of the complaint. Even in the
celebrated case of Manchester Development Corporation v. Court of
Appeals, the trial court directed the plaintiff therein to rectify the flaws in its
[48]
amended complaint. That way, not only could the Sandiganbayan have
seasonably resolved the issues on docket fees but it could very well have
timely settled petitioners dilemma on what to do and what was required to
preserve his rights. Chiefx
of all persons to a speedy disposition of their cases and avert the precipitate
loss of rights.
While it may be argued that petitioner could have very well amended his
complaint and alleged the monetary values of the properties he seeks to
recover to comply with Rule 141, Section 7(a) of the Rules of Court, we
find, pro hac vice, that petitioner acted in good faith when he contended that
proceedings before the Sandiganbayan are free of charge. The present rule
must, however, be stressed: parties filing civil actions before the
Sandiganbayan are liable to pay the required docket fees. The situation only
differs in the case at bar because of petitioners honest conviction manifested
in his filing of a reservation for the payments he made, after having been
ordered by the Sandiganbayan on March 29, 1996 to pay the balance of
P14,425.00 and after the court denied his motion to post bond pending final
resolution of the motion to dismiss.
Be that as it may, petitioners position that subsequent amendments to PD
[50]
1606 did not expressly repeal Section 11 thereof is untenable. Petitioner failed
to appreciate that the expansion of the Sandiganbayans jurisdiction to include
civil cases impliedly amended the same and Section 1, Rule IV, Part I of the
Revised Rules of the Sandiganbayan. Moreover, the Supreme Court enjoys
exclusive power to promulgate the rules on pleading, practice, and procedure.
In addition, Republic Act No. 7975 amended Section 9 of P.D. 1606 to read
[51]
as follows:
Hence, Rule 141 Section 7(a) of the Rules of Court applies to petitioners
complaint and/or amended complaints-in-intervention.
Petitioner argues that R.A. 7975, having been promulgated on March 30,
1995 should not be retroactively applied. This is not so, as statutes regulating
the procedure of the courts are applicable to actions pending and
undetermined at the time of their passage, thus, retrospective in such sense
and to that extent. haideem
[52]
SO ORDERED.