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CivPro Dynamic Builders Vs Prebitero

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G.R. No.

174202, April 07, 2015

DYNAMIC BUILDERS & CONSTRUCTION CO. (PHIL.), INC., Petitioner, v. HON.


RICARDO P. PRESBITERO, JR., MAYOR AND HEAD OF PROCURING UNIT OF THE
MUNICIPALITY OF VALLADOLID, NEGROS OCCIDENTAL; BIDS AND AWARDS
COMMITTEE, MUNICIPALITY OF VALLADOLID, NEGROS OCCIDENTAL; AND
HENRY L. JORDAN AND/OR HLJ CONSTRUCTION AND ENTERPRISE,
Respondents.

Facts:

The Municipality of Valladolid, Negros Occidental, through its Bids and Awards
Committee (BAC), published an invitation to bid for the construction of a 1,050-
lineal-meter rubble concrete seawall along the municipality's shoreline. The BAC
issued a resolution affirming the award of contract to HLJ Construction and
Enterprise for the construction.

Dynamic Builders, the lowest bidders, was declared as not substantially


responsive. Dynamic Builders lodged a formal protest with the head of the
procuring entity, Mayor Presbitero, to set aside decision declaring Dynamic
Builders' bid as not substantially responsive, but the same was denied.

Pursuant to Article XVII, Section 58 of Republic Act No. 9184, otherwise known
as the Government Procurement Reform Act, Dynamic Builders filed the
Petition for Certiorari before the Regional Trial Court of Bago City,
Negros Occidental, assailing Mayor Presbitero's Decision and Resolution.

Also, Dynamic Builders filed a Petition for prohibition with application


for temporary restraining order and/or writ of preliminary injunction
before the Supreme Court.

Public respondents counter that petitioner grossly violated the rules against
splitting a single cause of action, multiplicity of suits, and forum shopping and
availed of an improper remedy and disregarded the rule on hierarchy of courts.

Issue:

Whether Article XVII, Section 58 of Republic Act No. 9184 contemplates


simultaneous filing of a petition for prohibition seeking injunctive reliefs from this
court and a petition for certiorari before the Regional Trial Court;
consequently: chanroblesvirtuallawlibrary

a) Whether petitioner violated the rules against the splitting of a cause of action,
multiplicity of suits, and forum shopping;

b) Whether petitioner violated the doctrine on hierarchy of courts.


Held:

a. Yes. Section 58 could not have envisioned a simultaneous resort to the SC by


one that had already filed an action before the Regional Trial Court without
violating the basic rules on proscription against the splitting of a cause of action,
multiplicity of suits, and forum shopping.

Rule 2, Section 3 of the Rules of Court provides that "[a] party may not institute
more than one suit for a single cause of action." Moreover, Section 4 discusses
the splitting of a single cause of action in that "if two or more suits are instituted
on the basis of the same cause of action, the filing of one or a judgment upon
the merits in any one is available as a ground for the dismissal of the others."
The splitting of a cause of action "violate[s] the policy against multiplicity of
suits, whose primary objective is to avoid unduly burdening the dockets of the
courts."

Republic Act No. 8975 does not sanction splitting a cause of action in order for a
party to avail itself of the ancillary remedy of a temporary restraining order from
the SC. Also, this law covers only national government infrastructure projects.
This case involves a local government infrastructure project.

For local government infrastructure projects, Regional Trial Courts may issue
provisional injunctive reliefs against government infrastructure projects under
certain circumstances. 

b. Yes. Clearly, the proper recourse to a court action from decisions of the BAC is
to file a certiorari not before the Supreme Court but before the regional trial
court which is vested by R.A. No. 9184 with jurisdiction to entertain the same.

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