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PSB Vs Papa

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Cervantes, Gabriel Homer O.

234. PSB vs Papa (G.R. No. 200469. January 15, 2018)

PETITIONER: PHILIPPINE SAVINGS BANK (PSB)


RESPONDENT: JOSEPHINE L. PAPA
DATE: January 15, 2018
PONENTE: Martires, J.
TOPIC:

FACTS:
 This is a petition for review on certiorari.
 PSB filed before the MeTC a complaint for collection of sum of money against respondent
Josephine L. Papa.
 PSB alleged that Papa obtained a flexi-loan with a face amount of P207,600.00, payable in 24
monthly installments of P8,650.00 with interest at 38.40% per annum. For the said loan, Papa
executed a promissory note. When the obligation fell due, Papa defaulted in her payment.
 Papa alleged that PSB had no cause of action against her as her liability had already been
extinguished by the several staggered payments she made to PSB, which payments she
undertook to prove.
 The MeTC rendered a decision in favor of PSB and against Papa. Papa moved for
reconsideration, but the same was denied by the MeTC.
 The RTC reversed and set aside the MeTC decision. The trial court ruled that PSB failed to prove
its cause of action due to its failure to prove the existence and due execution of the promissory
note. PSB filed its motion for reconsideration. The RTC denied PSB's motion for reconsideration
ratiocinating that its decision had already attained finality, among others.
 PSB filed a petition for review under Rule 42 of the Revised Rules of Court before the CA. The
CA affirmed the decision and the order of the RTC. PSB moved for reconsideration, but the same
was denied by the CA.

ISSUE: Whether the CA erred when it ruled that the RTC decision had already attained finality. NO.

RULING:
 PSB is correct that filing and service are distinct from each other. Indeed, filing is the act of
presenting the pleading or other paper to the clerk of court; whereas, service is the act of
providing a party with a copy of the pleading or paper concerned.
 Nevertheless, although they pertain to different acts, filing and service go hand-in-hand and must
be considered together when determining whether the pleading, motion, or any other paper was
filed within the applicable reglementary period.
 Precisely, the Rules require every motion set for hearing to be accompanied by proof of service
thereof to the other parties concerned; otherwise, the court shall not be allowed to act on it,
effectively making such motion as not filed.
 The kind of proof of service required would depend on the mode of service used by the litigant
(Rule 13, Section 13).
 In some decided cases, the Court considered filing by private courier as equivalent to filing by
ordinary mail. The Court opines that this pronouncement equally applies to service of pleadings
and motions. Hence, to prove service by a private courier or ordinary mail, a party must attach an
affidavit of the person who mailed the motion or pleading. Further, such affidavit must show
compliance with Rule 13, Section 7 of the Rules of Court.
 This requirement is logical as service by ordinary mail is allowed only in instances where no
registry service exists either in the locality of the sender or the addressee. This is the only
credible justification why resort to service by ordinary mail or private courier may be allowed.
 PSB failed to comply with the requirements under Rule 13, Section 7 for an effective service by
ordinary mail. It did not offer an acceptable reason why it resorted to "private registered mail"
instead of by registered mail.
 PSB failed to comply with the required proof of service by ordinary mail. Thus, the RTC is correct
when it denied PSB's motion for reconsideration, which, for all intents and purposes, can be
effectively considered as not filed.
 It is well-settled that judgments or orders become final and executory by operation of law and not
by judicial declaration. The finality of a judgment becomes a fact upon the lapse of the
reglementary period of appeal if no appeal is perfected or no motion for reconsideration or new
trial is filed. The court need not even pronounce the finality of the order as the same becomes
final by operation of law.
 Considering that the RTC decision had already attained finality, there is no longer need to discuss
whether the RTC and the CA erred in ruling that PSB failed to prove its cause of action. A
decision that has acquired finality becomes immutable and unalterable, and may no longer be
modified in any respect, even if the modification is meant to correct erroneous conclusions of fact
and law, and whether it be made by the court that rendered it or by the Highest Court of the land.
Any act which violates this principle must immediately be struck down.

DISPOSITION: WHEREFORE, the present petition is DISMISSED for lack of merit.

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