PHILIPPINE NUMISMATIC AND ANTIQUARIAN SOCIETY meaningless to still proceed and render a judgment where there is no

(PNAS) vs. Aquino actual controversy to be thereby determined.

FACTS
The Rules of Court, specifically Section 2 of Rule 3 thereof, requires
Philippine Numismatic and Antiquarian Society, Inc. (PNAS) is a non- that unless otherwise authorized by law or the
stock, non-profit domestic corporation Rules of Court, every action must be prosecuted or defended in the
name of the name of the real party-in-interest
On October 29, 2009, PNAS filed a complaint with the RTC, praying for
the issuance of a writ of a preliminary injunction against Angelo Sec. 2. Parties-in-interest. - A real party-in-interest is the
Bernardo, Jr. party who stands to be benefited or injured by the
judgment in the suit, or the party entitled to the avails of
The complaint was verified by those who claimed to be the attorneys- the suit. Unless otherwise authorized by law or these
in-fact of PNAS as per Secretary's Certificate attached to the Rules, every action must be prosecuted or defended in the
complaint. PNAS was represented by Atty. Faustino S. Tugade as name of the real party-in-interest.
counsel.
REQUIREMENTS
On December 22, 2009, another complaint was filed by PNAS against This provision has two requirements:
Aquino et al. praying that the Membership Meeting conducted on 1. to institute an action, the plaintiff must be the real party-in-
November 25, 2008 be declared null and void. interest; and
2. the action must be prosecuted in the name of the real party-
It is, likewise prayed that a temporary restraining order or a writ of in-interest.
preliminary injunction be issued to desist them from acting as the true
members, officers and directors of PNAS. The verification was signed Interest within the meaning of the Rules of Court means material
by Atty. William L. Villareal. interest or an interest in issue to be affected by the decree or
judgment of the case, as distinguished from mere curiosity about the
On January 26, 2010, considering that there were two different question involved.
partieses claiming to be the representative of PNAS, the RTC issued a One having no material interest to protect cannot invoke the
Joint Order directing the parties to submit within 15 days from notice jurisdiction of the court as the plaintiff in an action.
the appropriate pleadings as to who are the true officers of PNAS and
PURPOSE
to submit all the documentary exhibits in support of their respective
The purposes of the requirement for the real party in interest
positions.
prosecuting or defending an action at law are:
Only respondents Eduardo M. Chua, Tomas De Guzman, Jr., Catalino a. to prevent the prosecution of actions by persons without any
right, title or interest in the case;
M. Silangil, Peter Sy, Fernando Francisco, Jr., and Percival M. Manuel
b. to require that the actual party entitled to legal relief be the one
in Civil Case No. 09-122709 complied with the aforesaid Joint Order.
to prosecute the action;
In their Memorandum, they alleged that Atty. William F. Villareal who c. to avoid a multiplicity of suits; and
d. to discourage litigation and keep it within certain bounds,
signed the verification in the complaint was not authorized by the
pursuant to sound public policy.
Board of Directors of PNAS to institute the complaint in behalf of the
corporation, and that his action in filing the complaint is an ultra vires The rule on real party-in-interest ensures, therefore, that the party
act and was in violation of Section 23 of the Corporation Code. with the legal right to sue brings the action, and this interest ends
when a judgment involving the nominal plaintiff will protect the
the RTC issued a Joint Order dismissing the complaint
defendant from a subsequent identical action. Such a rule is intended
The failure of plaintiff represented by Atty. William F. Villareal who to bring before the court the party rightfully interested in the
alleged in the complaint that he is the President of Philippine litigation so that only real controversies will be presented and the
judgment, when entered, will be binding and conclusive and the
Numismatic and Antiquarian Society, Inc. and its duly-authorized
defendant will be saved from further harassment and vexation at the
representative to file the appropriate pleadings and submit
hands of other claimants to the same demand.
documentary exhibits relative to his authority to file the instant
complaint for and in behalf of plaintiff Philippine Numismatic and In the case at bar, PNAS, as a corporation, is the real party-in-interest
Antiquarian Society, Inc. because its personality is distinct and separate from the personalities
of its stockholders.
 he has no authority to represent PNAS and to
file the complaint in Civil Case No. 09- 122709. A corporation exercises said powers through its board of directors
 to order the dismissal of Civil Case No. 09- and/or its duly-authorized officers and agents.
122709  Thus, it has been observed that the power of a corporation
to sue and be sued in any court is lodged with the board of
directors that exercises its corporate powers.
 Hence, since petitioner is a corporation, the certification
ISSUE: Whether or not Atty. Villareal is considered the real party in
attached to its complaint filed with the RTC must be
interest?
executed by an officer or member of the board of directors
HELD: A litigation should be disallowed immediately if it involves a or by one who is duly authorized by a resolution of the
person without any interest at stake, for it would be futile and
 board of directors; otherwise, the complaint will have to be
dismissed.

Petitioner's failure to submit proof that Atty. William L. Villareal has

As correctly ruled by the CA, Atty. Villareal was given the opportunity
to prove his authority to institute the complaint considering that
there were two different parties representing the petitioner in two
cases filed before the RTC, Branch 24, Manila.
 such failure on the part of Atty. Villareal gave credence to
the assertion of respondents herein that he has no
authority to represent petitioner and to file the complaint
in Civil Case No. 09-122709.