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ARTICLE 2176 and DOCTRINE OF RES IPSA LOQUITUR 2

ARTICLE 1191 8

ARTICLES 1628; 1207 13

ARTICLE 1267 and the PRINCIPLE OF REUS SIC STANTIUS 17

ARTICLE 1!"1 20

ARTICLES 22"7; 22!1#22$1 26

ARTICLES 1"11; 1881 33

ARTICLES 2176; 2180 45

ARTICLES 20!7; 1206 60

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ARTICLE 2176 and DOCTRINE OF RES IPSA LOQUITUR

G.R. No. 195661, Mar! 11, 2"15

UN#NO$N O$NER OF T%E &ESSEL M'& C%INA (O), SAMSUN S%IPPING LTD., AND INTER*ASIA MARINETRANSPORT, INC.% Petitioners% v.ASIAN TERMINALS, INC.% Respondent&

R E S O L U T I O N

RE)ES, J.+

The 'n(tant )et't'*n +*, ,e-'e. *n certiorari1a((a'/( the De'('*n2dated N*-ee, 10% 2010 and Re(*/3t'*n"datedFe,3a,4 1!% 2011 *+ the C*3,t *+ A))ea/( 5CA 'n CA#&R& C N*& 9"16!& The CA ,e-e,(ed and (et a('de theDe'('*n!dated an3a,4 "0% 2009 *+ the Re:'*na/ T,'a/ C*3,t 5RTC *+ an'/a% ,anh $1% 'n C'-'/ Ca(e N*& 99#9"067%.h'h d'('((ed +*, 'n(3++''en4 *+ e-'dene the *)/a'nt +*, daa:e($+'/ed 4 he,e'n ,e()*ndent A('an Te,'na/(% In&5ATI a:a'n(t UnCh'na *4? 5! &/ a,,'-ed at the a,'-e/e( ,a'n Te,'na/ @ha,+%*)e,ated 4 )/a'nt'++ ATIB&

A*,d'n: t* the e,th Te, Grain Bills of Lading% the e((e/ a,,'ed (*4ean ea/ that had een (h'))ed 4C*nt'Q3'n43n:e L&L&C&B 5ConQn0n8% an e)*,te, *+ (*4ean ea/ and ,e/ated ),*d3t(% 'n +a-*, *+ (e-e,a/*n(':nee( 'n the Ph'/'))'ne(&

Unde, the Charter Party Agreement*-e, = >Ch'na *4%? C*nt'Q3'n43n:e ,e),e(ented 't(e/+ a( the Cha,te,e, *+ thee((e/% .'th San ':3e/ F**d(% In& a( C*#Cha,te,e,% and de+endant Sa3nB ,e),e(ented 't(e/+ a( the A:ent *+ theSh')*.ne,(& Sa(3n '( a +*,e':n *,)*,at'*n n*t d*'n: 3('ne(( 'n the Ph'/'))'ne(&

On " Fe,3a,4 1997%B ATI 3(ed 't( S'.e,te// Un/*ade, N*& 2 t* 3n/*ad the (*4ean ea/ +,* the e((e/( */d N*& 2& TheS'.e,te// Un/*ade, '( a )ne3at' -a3at*, that 3(e( *),e((ed :a( t* -e,t'a//4 *-e hea-4 3/< :,a'n +,* .'th'n thehath *+ the (h') 'n *,de, t* 3n/*ad 't *++ the (h')&

The 3n/*ad'n: *)e,at'*n( .e,e (3dden/4 ha/ted .hen the head *+ Un/*ade, N*& 2 h't a +/at /*.#a,*n *, >'/d? (tee/ a,ea(3,'n: a,*3nd 8 t* 10 'nhe( 'n /en:th% ! 'nhe( 'n .'dth% and 1 'nh 'n th'

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>UnCh'na *4? 3nde, a F,ee#In#and#O3t#St*.ed#and#T,'ed 5FIOST C/a3(e.h'h (3))*(ed/4 ean( that the Sh'))e,=Cha,te,e, 't(e/+ 5C*nt'Q3'n43n:e LLC /*aded the a,:* *n *a,d the e((e/%and the /atte, and he, *)/eent had n* )a,t'')at'*n the,e'n ee)t t* ),*-'de the 3(e *+ the e((e/( :ea,& S''/a,/4%3nde, the FIOST /a3(e% the d'(ha,:e *+ the a,:* .a( t* e d*ne 4 the *n(':nee( de(':nated )e,(*nne/ .'th*3t an4)a,t'')at'*n *+ the e((e/ and he, *)/eent&

De+endant( a,:3ed that ('ne the eta/ +*,e':n *et .a( +*3nd 'n the middle*+ the a,:*% 't *3/d n*t ha-e *e +,*the bottom*+ the hath ea3(e the hath had een 'n()eted and +*3nd /ean ),'*, t* /*ad'n:& De+endant( +3,the,a-e,,ed that ne'the, *3/d the eta/ a, ha-e een )a,t *+ the e((e/ that had ,*tBhe Court is at a quandary as to whocaused the piece of metal to co!mingle" with the shipment&?9

ATI the,ea+te, +'/ed an a))ea/%10.h'h the CA :,anted th,*3:h the he,e'n a((a'/ed de'('*n% the d'()*('t'-e )*,t'*n *+ .h'h)a,t'a//4 (tate(KWHEREFORE,the a))ea/ '( GRANTED% & De+endant(#a))e//ee( a,e +*3nd *'nt/4 and (e-e,a//4 /'a/e t* ATIB +*, thea*3nt *+ USH"0%"00&00 .'th 'nte,e(t the,e*n at 6 )e, ann3 +,* the +'/'n: *+ the Complaint*n 9 a,h 1999 3nt'/ the3d:ent e*e( +'na/ and ee3t*,4& The,ea+te,% an 'nte,e(t ,ate *+ 12 )e, ann3 (ha// e ')*(ed 3nt'/ the a*3nt '(+3//4 and at3a//4 )a'd&

SO ORDERED.11

The CA e)/a'ned 't( ,3/'n:% vi#KA( a ,3/e *+ e-'dene% the d*t,'ne *+ res ipsa loquitur'( )e3/'a, t* the /a. *+ ne:/':ene .h'h ,e*:n'Me( that primafaciene:/':ene a4 e e(ta/'(hed without direct proofand +3,n'(he( a (3(t't3te +*, ()e'+' ),**+ *+ ne:/':ene&

@e +'nd the a))/'at'*n *+ the d*t,'ne *+ res ipsa loquiturt* e a)),*),'ate 'n the a(e at a,&

$irst.S'ne the a,:* t* e 3n/*aded .a( +,ee#+/*.'n: (*4ean ea/ 'n 3/

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e'n: a ),*-'('*n +*, the a))*,t'*nent *+ e$pe"#e 5a( an e/3('*n +,* the ,ate *+ +,e':ht t* e )a'd% the 'nte,),etat'*n*+ the FIOST /a3(e (h*3/d n*t e etended t* ean an a))*,t'*nent *+ li!bilit%% 3n/e(( ()e'+'ed 'n /ea, and3na':3*3( te,(&

@h'/e the,e a,e 'n(tane( .he,e a Cha,te, Pa,t4 A:,eeent /ea,/4 (tate( that the Cha,te,e, .'// e /'a/e t* th',d )a,t'e(+*, daa:e( a3(ed 4 't( a,:* 5a( 'n the a(e *+ ()'//( *+ )et,*/e3 *'/ a,:*% *, *+ daa:e t* th',d )a,t'e( a3(ed 4t*' a,:*%the,e '( n* (3h ),*-'('*n 'n th'( a(e& The,e+*,e% /'a'/'t4 *, n*n#/'a'/'t4 +*, (3h daa:e ann*t e),e(3ed +,* the FIOST /a3(e a/*ne% and the Charter Party Agreement3(t e /*(e/4 (,3t'n'Med +*, the )a,t'e('ntent'*n *n /'a'/'t4&

C/a3(e 22 *+ the Charter Party Agreement(tate(K>At /*ad)*,t% the (te-ed*,e(%B a/th*3:h a,,an:ed 4 ha,te,e,(% (h'))e,(% *, the', a:ent(% a,eB t* e u"der the directio"!"d co"trol of the &!#ter& A// /a'( +*, daa:e a//e:ed/4 a3(ed 4 (te-ed*,e( a,eB t* e (ett/ed et.een (te-ed*,e(and O.ne,(& Cha,te,e,( (ha// ,ende, a(('(tane t* O.ne,( t* (ett/e (3h daa:e 'n a(e *+ need&? C/a3(e 22 /ea,/4 (tate( that lo!di"' #h!ll be do"e u"der the directio" !"d co"trol of the &!#ter& ene% '+ theeta/ a, that daa:ed ATI( 3n/*ade, .a( 'nad-e,tent/4 'ed 'nt* the (*4ean ea/ d3,'n: /*ad'n:% 4 e),e((),*-'('*n *+ theCharter Party Agreement% the *(t *+ the daa:e (h*3/d e *,ne 4 the (h')*.ne, ea3(e the /*ad'n:.a( d*ne 3nde, the (3)e,-'('*n and *nt,*/ *+ the a(te, *+ the e((e/&

ene% n*t *n/4 d'd de+endant( ha-epre#umede/3('-e *nt,*/ *+ the e((e/ d3,'n: the /*ad'n: *+ the (*4ean ea/ 4,ea(*n *+ the e'n: the *.ne,( *, a:ent( *+ the *.ne,( the,e*+% the4 a/(* had !ctu!le/3('-e *nt,*/ the,e*+ 4e),e(( (t')3/at'*n 'n the Charter Party Agreementthat the /*ad'n: *+ the a,:* (ha// e 3nde, the d',et'*n and *nt,*/ *+

the a(te, *+ the e((e/&

Th'( '( a( 't (h*3/d e% *n('de,'n: that the ha,te, 'n th'( a(e '( a co"tr!ct of!ffrei'htme"t 4 .h'h the *.ne, *+ a(h') /et( the .h*/e *, )a,t *+ he, t* a e,hant *, *the, )e,(*n +*, the *n-e4ane *+ :**d(% *n a )a,t'3/a, -*4a:e% 'n*n('de,at'*n *+ the )a4ent *+ +,e':ht& The S3),ee C*3,t ha( he/d that '+ the ha,te, '( a *nt,at *+ a++,e':htent% theri'ht# !"d the re#po"#ibilitie# of ow"er#hip re#t o" the ow"er&The ha,te,e, '( +,ee +,* /'a'/'t4 t* th',d )e,(*n( 'n,e()et *+ the (h')&

*hird.The,e '( ne'the, a//e:at'*n n*, e-'dene 'n the ,e*,d that ATI( ne:/':ene *nt,'3ted t* the daa:e *+ 't(3n/*ade,&

A// " ,eG3'('te( *+ res ipsa loquiture'n: ),e(ent% the ),e(3)t'*n *, 'n+e,ene a,'(e( that de+endant( ne:/':ene .a( the),*'ate a3(e *+ the daa:e t* ATI( 3n/*ade,& The 3,den *+ e-'dene (h'+ted t* de+endant( t* ),*-e *the,.'(e& TheB

de+endant( +a'/ed t* d* (*&

De+endant( te(t'*n'a/ e-'dene *n('(ted *+ the (*/e te(t'*n4 *+ the +*,e, O)e,at'*n( ana:e, *+ Inte,#A('a% .h* *n ,*((#ea'nat'*n% ad'tted that he .a( n*t ),e(ent at the /*ad'n: *+ the a,:* and% the,e+*,e% d'd n*t at3a//4(ee that the (*4ean ea/ .a( +,ee *+ an4 +*,e':n eta/ *et&

De+endant( e-'dene% .h'h hea-'/4 ,e/'e( *n 51 the', e,,*ne*3( 'nte,),etat'*n *+ the FIOST /a3(e 'n the Charter PartyAgreement; 52 the a(te,( 3n(3))*,ted a//e:at'*n .,'tten *n the Note of Protestthat the eta/ a, d'd n*t *e +,*the -e((e/; and 5" the', .'tne(( d3'*3( 'nte,),etat'*n that the n*tat'*n >/*aded /ean? *n the Berth *erm "Grain Bills ofLadingean( that the (*4ean ea/ had n* +*,e':n ate,'a/ 'n/3ded the,e'n% d*e( n*t ),e(ent a (at'(+at*,4 an(.e, t*the G3e(t'*nK How did the met!l b!r 'et comi"'led with the #o%be!" me!l, !"d wh!t did the &!#ter of the (e##eldo to pre)e"t #uch !" occurre"ce* &

4 the', +a'/3,e t* e)/a'n the ',3(tane( that attended the a'dent% .hen

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Theprima faciee-'dene *+ de+endant( ne:/':ene% e'n: 3ne)/a'ned and 3n*nt,*-e,ted% '( (3++''ent t* a'nta'n the),*)*('t'*n a++',ed& ene% the ne:/':ene *+ the a(te, *+ the e((e/ '( co"clu#i)el% pre#umedt* e the ),*'atea3(e *+ the daa:e (3(ta'ned 4 ATI( 3n/*ade,& *,e*-e,% ('ne the a(te,( /'a'/'t4 '( 3/t'ate/4 that *+ the (h')*.ne,ea3(e he '( the ,e),e(entat'-e *+ the (h')*.ne,% the (h')*.ne, and 't( a:ent( a,e (*/'da,'/4 /'a/e t* )a4 ATI the a*3nt*+ daa:e( at3a//4 ),*-ed&

A,t'/e( $87 and $90 3nde, **< III *+ the C*de *+ C*e,e ),*-'de +*, the /'a'/'t4 *+ the (h')*.ne, and 't( a:ent( +*,at( *+ the a(te, *, Ca)ta'n% a( +*//*.(KA,t& $87& The #hip !'e"t #h!ll !l#o be ci)ill% li!ble for the i"dem"itie# i" f!)or of third per#o"# which m!% !ri#efrom the co"duct of the c!pt!i" i" the c!re of the 'ood# which he lo!ded o" the )e##el 3t he a4 ee)t h'(e/+the,e+,* 4 aand*n'n: the -e((e/ .'th a// he, eG3')ent and the +,e':ht 't a4 ha-e ea,ned d3,'n: the -*4a:e&

A,t& $90& The coow"er# of the )e##el #h!ll be ci)ill% li!ble i" the proportio" of their i"tere#t# i" the commo" fu"dfor the re#ult# of the !ct# of the c!pt!i" referred to i" Art. -/.125C'tat'*n( *'tted% 'ta/'( and e)ha('( 'n the*,':'na/% and 3nde,(*,'n: *3,(Anent the a*3nt *+ the he,e'n )et't'*ne,( (*/'da,4 /'a'/'t4% the CA +*3nd that *n/4 USH"0%"00&00 *+ ATI( /a' '((3))*,ted 4 e-'dene& The G3*tat'*n (3'tted 4 the an3+at3,e, *+ S'.e,te// 3n/*ade,( 'nd'ated that 5a the,e)/aeent *(t +*, the t.* daa:ed (,e.( '( USH2!%790&00% 5 +,e':ht *(t '( USH"%$10&00% and 5 /a*, *(t 'n,e*-'n: and ,e#a((e/'n: the (,e.( '( USH2%000&00&1"

The CA% h*.e-e,% +*3nd n* :,*3nd( t* a.a,d att*,ne4( +ee( 'n ATI( +a-*, /e(t 't e >tantamount to imposing a premiumon one)s right to litigate&?1!

The he,e'n )et't'*ne,( +'/ed a *t'*n +*, ,e*n('de,at'*n e+*,e the CA% .h'h den'ed the (ae th,*3:h the Re(*/3t'*n'((3ed *n Fe,3a,4 1!% 2011&

I

The 'n(tant )et't'*n ,a'(e( the G3e(t'*n( *+ .hethe, *, n*t the CA e,,ed 'n 5a a))/4'n: the d*t,'ne *+res ipsa loquitur% and5 ,eet'n: the a,:3ent that >the )et't'*ne,( had n* )a,t'')at'*n 'n the /*ad'n: and d'(ha,:e *+ the 3/< a,:* ee)tt* ),*-'de 3(e *+ the -e((e/( :ea,&?1$

In (3))*,t the,e*+% the )et't'*ne,( e)ha('Me that the +*,e':n eta/ *et .a( +*3nd 'n the 'dd/e *+ the a,:*& ene% 't'( /*:'a/ t* *n/3de that the eta/ ae 'n .'th the a,:* and *3/d n*t ha-e +a//en *++ +,* (*e a))3,tenane *+ the-e((e/ e+*,e *, a+te, /*ad'n:&16The )et't'*ne,( /'

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/*ad'n: *)e,at'*n( a,e *ne,ned& e('de(% e-en '+ (3h ),*-'('*n 'n +at e'(t(% ATI '( n*t ),'-4 t* the Cha,te, Pa,t4A:,eeent&2!

R/n8 o4 ! Cor

*he Court agrees with the CA that the petitioners are lia&le to A*, for the damage sustained &y the latter)s unloader.-owever the Court finds the petitioners) lia&ility to &e &ased on quasi!delict and not on a contract of carriage. *he Courtli'ewise deems it proper to modify the rate of interests on the amount of damages imposed &y the CA upon the

petitioners.

The C*3,t n*te( that the (h')*.ne, and (h')*.ne,( a:ent% Sa(3n% a,e a// 3,'d'a/ ent't'e( n*t ,e:'(te,ed and n*t d*'n:3('ne(( 'n the Ph'/'))'ne(& It .a( the ha,te,e,( a:ent% Inte,#A('a% a d3/4#,e:'(te,ed d*e(t' *,)*,at'*n% .h'h had +'/edthe 'n(tant )et't'*n +*, 't(e/+ and *n eha/+ *+ the (h')*.ne, and Sa(3n& 2$In the *3,(e *+ the ),*eed'n:( t**% n*ne *+the )a,t'e( had ,a'(ed '((3e( anent the -a/'d't4 *+ the (e,-'e *+ (3*n( and the *3,t( aG3'('t'*n *+ 3,'(d't'*n *-e,the )e,(*n( *+ the )et't'*ne,(&

The )et't'*ne,( ),e(ent t.* '((3e( +*, the C*3,t( ,e(*/3t'*n% t* .'tK 5a the a))/'a'/'t4 *+ the d*t,'ne *+ res ipsaloquitur'n the a(e at a,; and 5 .h* )a,t'')ated and (h*3/d th3( a((3e /'a'/'t4 +*, the /*ad'n: *+ the (*4ean ea/a,:*&

In 't( De'('*n dated an3a,4 "0% 2009% the RTC de/a,ed that .h'/e ATI 'ndeed (3(ta'ned daa:e( t* 't( 3n/*ade,% /'a'/'t4the,e+*, ann*t% h*.e-e,% e e(ta/'(hed .'th e,ta'nt4&

In the a((a'/ed de'('*n% the CA% *n the *the, hand% d'(3((ed 'n deta'/ .h4 and h*. the th,ee ,eG3'('te( t* the a))/'at'*n*+ the d*t,'ne *+ res ipsa loquitura,e +*3nd t* e attendant 'n the a(e at a,& $irst% the *#'n:/'n: *+ the t.* +*,e':neta/ *et( .'th the (*4ean ea/ a,:* and the *n(eG3ent daa:e t* ATI( 3n/*ade, '( an a'dent .h'h *,d'na,'/4d*e( n*t *3, 'n the a(ene *+ (*e*ne( ne:/':ene& %econd% the +*,e':n eta/ *et( .e,e +*3nd 'n the -e((e/(*/d N*& 2% .h'h '( .'th'n the e/3('-e *nt,*/ *+ the )et't'*ne,(& *hird% ,e*,d( d* n*t (h*. that ATI( ne:/':ene had 'nan4 .a4 *nt,'3ted t* the daa:e a3(ed t* 't( 3n/*ade,&

The C*3,t a:,ee( .'th the CA anent ATI( ent't/eent t* the )a4ent *+ daa:e( +,* the )et't'*ne,( and the a))/'a'/'t4*+ the d*t,'ne *+ res ipsa loquitur& *.e-e,% the C*3,t +'nd( a( '()/aed the CA( a))/'at'*n *+ the /a.( *n a,'t'e*e,e and *nt,at( *+ a,,'a:e +*, ,ea(*n( d'(3((ed e/*.&

T!r no onra o4 arra8 n ! -onr and ATI.

The,e '( n* *nt,at *+ a,,'a:e et.een ATI% *n *ne hand% and the (h')*.ne,% Sa(3n% C*nt'Q3'n43n:e L&L&C&% andInte,#A('a% *n the *the,& It /'

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In ,nsurance Company of North America v. Asian *erminals ,nc.%"0the C*3,t e)/a'ned that the /'a'/'t'e( *+ the a,,a(t,e*)e,at*, +*, /*((e( and daa:e( a,e (et +*,th 'n the *nt,at +*, a,:* hand/'n: (e,-'e( 't had ee3ted .'th the PPA&C*,*//a,'/4 then% the ,':ht( *+ an a,,a(t,e *)e,at*, t* e )a'd +*, daa:e( 't (3(ta'n( +,* hand/'n: a,:*e( d* n*t /'Daa:e(? *+ the C'-'/ C*de :*-e,n 'ndete,'n'n: the ea(3,e *+ ,e*-e,a/e daa:e(&

II& @'th ,e:a,d )a,t'3/a,/4 t* an a.a,d *+ 'nte,e(t 'n the *ne)t *+ at3a/ and *)en(at*,4 daa:e(% the ,ate *+ 'nte,e(t%a( .e// a( the a,3a/ the,e*+% '( ')*(ed% a( +*//*.(K

1& @hen the */':at'*n '( ,eahed% and 't *n('(t( 'n the )a4ent *+ a (3 *+ *ne4% i.e.% a /*an *, +*,ea,ane *+*ne4% the 'nte,e(t d3e (h*3/d e that .h'h a4 ha-e een (t')3/ated 'n .,'t'n:& F3,the,*,e% the 'nte,e(t d3e(ha// 't(e/+ ea,n /e:a/ 'nte,e(t +,* the t'e 't '( 3d''a//4 deanded& In the a(ene *+ (t')3/at'*n% the ,ate *+'nte,e(t (ha// e 6per annumt* e *)3ted +,* de+a3/t% i.e.% +,* 3d''a/ *, et,a3d''a/ deand 3nde, and(3et t* the ),*-'('*n( *+ A,t'/e 1169 *+ the C'-'/ C*de&

2& @hen an */':at'*n% n*t *n(t't3t'n: a /*an *, +*,ea,ane *+ *ne4% '( ,eahed% an 'nte,e(t *n the a*3nt *+daa:e( a.a,ded a4 e ')*(ed at the discretion of the court at the ,ate *+ 6per annum& N* 'nte,e(t%h*.e-e,% (ha// e ad3d:ed *n 3n/'G3'dated /a'( *, daa:e(% ee)t .hen *, 3nt'/ the deand an ee(ta/'(hed .'th ,ea(*na/e e,ta'nt4& A*,d'n:/4% .he,e the deand '( e(ta/'(hed .'th ,ea(*na/e e,ta'nt4% the'nte,e(t (ha// e:'n t* ,3n +,* the t'e the /a' '( ade 3d''a//4 *, et,a3d''a//4 5A,t& 1169% C'-'/ C*de%3t.hen (3h e,ta'nt4 ann*t e (* ,ea(*na/4 e(ta/'(hed at the t'e the deand '( ade% the 'nte,e(t (ha//e:'n t* ,3n *n/4 +,* the date the 3d:ent *+ the *3,t '( ade 5at .h'h t'e the G3ant'+'at'*n *+ daa:e(

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a4 e deeed t* ha-e een ,ea(*na/4 a(e,ta'ned& The at3a/ a(e +*, the *)3tat'*n *+ /e:a/ 'nte,e(t (ha//%'n an4 a(e% e *n the a*3nt +'na//4 ad3d:ed&

"& @hen the 3d:ent *+ the *3,t a.a,d'n: a (3 *+ *ne4 e*e( +'na/ and ee3t*,4% the ,ate *+ /e:a/ 'nte,e(t%.hethe, the a(e +a//( 3nde, )a,a:,a)h 1 *, )a,a:,a)h 2% a*-e% (ha// e 6per annum +,* (3h +'na/'t4 3nt'/ 't((at'(+at'*n% th'( 'nte,' )e,'*d e'n: deeed t* e 4 then an eG3'-a/ent t* a +*,ea,ane *+ ,ed't&

&"$5C'tat'*n *'tted% e)ha('( and 'ta/'( 'n the *,':'na/% and 3nde,(*,'n: *3,(The C*3,t a:,ee( .'th the CA that a( ,e:a,d( ATI( /a'% *n/4 the a*3nt *+ USH"0%"00&00 '( d3/4 (3))*,ted 4e-'dene& *.e-e,% 'n -'e. *+ Nacar% the (a'd a*3nt (ha// e (3et t* /e:a/ 'nte,e(t at the ,ate *+ (' )e,ent 56 perannum,e

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a& the a*3nt *+ P100%000 a( *)en(at*,4 daa:e( +*, the 'n*, ',,e-e,('/e de+et( 'n he, 3n't,e()*ndentB% *,% 'n the a/te,nat'-e% *nd3t the nee((a,4 ,e)a',( *n the (3et 3n't t* *n+*,t* the 'ntended ()e'+'at'*n(;

& *,a/ daa:e( *+ P20%000&00

& Att*,ne4( +ee( *+ P20%000&00

On the *the, hand% ,e()*ndentB '( he,e4 d',eted t* 'ed'ate/4 3)date he, a*3nt 'n(*+a, a( the )a,

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Ad'n'(t,at'-e O,de, N*& 18&

C*,*//a,4 the,et*% )a,& 2% Set'*n 1 *+ Ad'n'(t,at'-e O,de, N*& 18% Se,'e( *+ 1987),*-'de( thatKThe t'e d3,'n: .h'h a *t'*n +*, ,e*n('de,at'*n ha( een )end'n: .'th the 'n'(t,4=A:en4 *ne,ned (ha//e ddd+,* the )e,'*d *+ a))ea/& 3t .he,e (3h a *t'*n +*, ,e*n('de,at'*n ha( een +'/ed d3,'n: *++'e h*3,( *+the /a(t da4 *+ the )e,'*d he,e'n ),*-'ded% the a))ea/ 3(t e ade .'th'n the da4 +*//*.'n: ,ee')t *+ the den'a/ *+ (a'd*t'*n 4 the a))ea/'n: )a,t4& 5Unde,(*,'n: (3))/'ed

A*,d'n:/4% the )et't'*ne,B had *n/4 +*3, 5! da4( +,* ,ee')t *n 2" 3/4 2007 *+ LUR Re(*/3t'*n dated 1! 3ne 2007*, 3nt'/ 27 3/4 2007 t* +'/e the N*t'e *+ A))ea/ e+*,e th'( O++'e& *.e-e,% )et't'*ne,B +'/ed 't( a))ea/ *n/4 *n 7 A3:3(t2007 *, e/e-en 511 da4( /ate&

Th3(% th'( O++'e need n*t de/-e *n the e,'t( *+ the a))ea/ +'/ed a( the ,e*,d( /ea,/4 (h*. that the (a'd a))ea/ .a( +'/ed*3t *+ t'e&

$%EREFORE,),e'(e( *n('de,ed% )et't'*ne,B( a))ea/ '( he,e4 DISMISSED% and the LUR De'('*n dated "0a,h 2006 and LUR Re(*/3t'*n dated 1! 3ne 2007 a,e he,e4 AFFIRMED.

SO ORDERED& 9

Ied'ate/4 the,ea+te,% )et't'*ne, +'/ed a *t'*n +*, ,e*n('de,at'*n a:a'n(t (a'd de'('*n&

In a Re(*/3t'*n 10dated Fe,3a,4 17% 2009% the OP% th,*3:h then Ee3t'-e Se,eta,4 Ed3a,d* E,'ta% :,anted )et't'*ne,(*t'*n and (et a('de De)3t4 Ee3t'-e Se,eta,4 a'te( de'('*n& It he/d that a+te, a a,e+3/ and th*,*3:h e-a/3at'*n and(t3d4 *+ the ,e*,d( *+ the a(e% the OP .a( *,e 'n/'ned t* a:,ee .'th the ea,/'e, de'('*n *+ the LUR ENCRFO a( 't.a( *,e 'n a*,d .'th +at(% /a. and 3,'(),3dene ,e/e-ant t* the a(e& Th3(K

$%EREFORE% ),e'(e( *n('de,ed% the 'n(tant *t'*n +*, Re*n('de,at'*n '( he,e4GRANTED& The De'('*n andRe(*/3t'*n *+ the LUR Th',d D'-'('*n *a,d *+ C*'(('*ne,(% dated a,h "0% 2006 and 3ne 1!% 2007% ,e()et'-e/4%a,e he,e4 SET ASIDE% and the %LUR ENCRFODe'('*n dated Ot*e, 19% 200! '( he,e4 REINSTATED&

SO ORDERED& 11

Re()*ndent (*3:ht ,e*n('de,at'*n *+ (a'd ,e(*/3t'*n% h*.e-e,% the (ae .a( den'ed 4 the OP 'n a Re(*/3t'*n 12dated

A3:3(t 18% 2011&

C*n(eG3ent/4% ,e()*ndent +'/ed an a))ea/ t* the CA&

In a De'('*n dated an3a,4 2!% 201"% the CA :,anted ,e()*ndent( a))ea/ and ,e-e,(ed and (et a('de the O,de, *+ theOP& The fallo*+ 't( de'('*n ,ead(K

$%EREFORE% the Pet't'*n '( he,e4 GRANTED& The a((a'/ed Resolutiondated 17 Fe,3a,4 2009 and 3rderdated 18A3:3(t 2011 *+ the O++'e *+ the P,e('dent% 'n O&P& Ca(e N*& 07##28"% a,e he,e4 RE&ERSEDand SETASIDE.A*,d'n:/4% the De'('*n dated "0 a,h 2006 and Resolutiondated 1! 3ne 2007 *+ the LUR *a,d *+C*'(('*ne,( 'n LUR Ca(e N*& RE#A#0$0127#001!% a,e REINSTATED&

SO ORDERED.1"

Pet't'*ne, *-ed +*, ,e*n('de,at'*n% h*.e-e,% the CA den'ed the (ae 'n a Re(*/3t'*n dated A),'/ "0% 201"&

ene% the ),e(ent )et't'*n .he,e'n )et't'*ne, ,a'(e( the +*//*.'n: :,*3nd( t* (3))*,t 't( )et't'*nK

TE COURT OF APPEALS RAEL ERRED IN INORIN TE LEAL PRECEPTS TATK

1& TECNICAL RULES ARE NOT INDIN UPON ADINISTRATIE AENCIES; and

2& RESCISSION @ILL E ORDERED ONL @ERE TE REAC COPLAINED OF IS SUSTANTIAL AS TODEFEAT TE OECT OF TE PARTIES IN ENTERIN INTO TE AREEENT& 1!

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In e((ene% the '((3e( a,eK 51 .hethe, )et't'*ne,( a))ea/ .a( t'e/4 +'/ed e+*,e the OP; and 52 .hethe, ,e('(('*n *+the *nt,at '( ),*)e, 'n the 'n(tant a(e&

@e (ha// ,e(*/-e the '((3e( in seriatim.

F',(t% the )e,'*d t* a))ea/ the de'('*n *+ the LUR *a,d *+ C*'(('*ne,( t* the O++'e *+ the P,e('dent ha( /*n:een (ett/ed 'n the a(e *+ %G0C Realty Corporation v. 3ffice of the President 1$a( ,e'te,ated 'n the a(e( *+ 0a(imaRealty 0anagement and /evelopment Corporation v. Par'way Real 1state /evelopment Corporation16and 2nited3verseas Ban' Philippines ,nc. v. Ching.17

In the a+*,eent'*ned a(e(% .e ,3/ed that the )e,'*d t* a))ea/ de'('*n( *+ the LUR *a,d *+ C*'(('*ne,( '(+'+teen 51$ da4( +,* ,ee')t the,e*+ )3,(3ant t* Set'*n 1$ 18*+ PD N*& 9$7 19and Set'*n 2 20*+ PD N*& 1"!! 21.h'ha,e ()e'a/ /a.( that ),*-'de an ee)t'*n t* Set'*n 1 *+ Ad'n'(t,at'-e O,de, N*& 18& Th3(% 'n the %G0C RealtyCorporation v. 3ffice of the Presidenta(e% the C*3,t e)/a'nedK

A( )*'nted *3t 4 )3/' ,e()*ndent% the a+*,e'ted ad'n'(t,at'-e *,de, a//*.( a::,'e-ed )a,t4 t* +'/e 't( a))ea/ .'th theO++'e *+ the P,e('dent .'th'n th',t4 5"0 da4( +,* ,ee')t *+ the de'('*n *)/a'ned *+& N*nethe/e((% (3h th',t4#da4)e,'*d '( (3et t* the G3a/'+'at'*n that the,e a,e n* *the, (tat3t*,4 )e,'*d( *+ a))ea/ a))/'a/e& I+ the,e a,e ()e'a/ /a.(:*-e,n'n: )a,t'3/a, a(e( .h'h ),*-'de +*, a (h*,te, *, /*n:e, ,e:/eenta,4 )e,'*d% the (ae (ha// ),e-a'/ *-e, theth',t4#da4 )e,'*d ),*-'ded +*, 'n the ad'n'(t,at'-e *,de,& Th'( '( 'n /'ne .'th the ,3/e 'n (tat3t*,4 *n(t,3t'*n that anad'n'(t,at'-e ,3/e *, ,e:3/at'*n% 'n *,de, t* e -a/'d% 3(t n*t *nt,ad't 3t *n+*, t* the ),*-'('*n( *+ the ena/'n: /a.&

@e n*te that 'ndeed the,e a,e ()e'a/ /a.( that andate a (h*,te, )e,'*d *+ +'+teen 51$ da4( .'th'n .h'h t* a))ea/ aa(e t* )3/' ,e()*ndent& F',(t% Set'*n 1$ *+ P,e('dent'a/ De,ee N*& 9$7 ),*-'de( that the de'('*n( *+ the Nat'*na/*3('n: A3th*,'t4 5NA (ha// e*e +'na/ and ee3t*,4 a+te, the /a)(e *+ +'+teen 51$ da4( +,* the date *+ ,ee')t *+the de'('*n& Se*nd% Set'*n 2 *+ P,e('dent'a/ De,ee N*& 1"!! (tate( that de'('*n( *+ the Nat'*na/ *3('n: A3th*,'t4(ha// e*e +'na/ and ee3t*,4 a+te, the /a)(e *+ +'+teen 51$ da4( +,* the date *+ 't( ,ee')t& The /atte, de,ee ),*-'de(that the de'('*n( *+ the NA '( a))ea/a/e *n/4 t* the O++'e *+ the P,e('dent& F3,the,% .e n*te that the ,e:3/at*,4+3nt'*n( *+ NA ,e/at'n: t* h*3('n: and /and de-e/*)ent ha( een t,an(+e,,ed t* 3an Sett/eent( Re:3/at*,4C*'(('*n% n*.

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)et't'*ne,( +at3*3( e/'e+ that 't had a +,e(h 1$#da4 )e,'*d t* e/e-ate an a))ea/ .'th the OP '( n*t the

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F,* the +*,e:*'n:% 't '( e-'dent that the ,e)*,t *n the *3/a, 'n()et'*n *nd3ted *n the (3et *nd*'n'3 ),*etand (3et 3n't (h*.( that the aen't'e( 3nde, the a)),*-ed )/an ha-e n*t 4et een ),*-'ded a( *+ a4 "% 2002% andthat the (3et 3n't ha( n*t een de/'-e,ed t* ,e()*ndent a( *+ A3:3(t 28% 2002% .h'h '( e4*nd the )e,'*d *+de-e/*)ent *+ Deee, 1999 3nde, the /'en(e t* (e//& In*nt,*-e,t'/4% )et't'*ne, had 'n3,,ed de/a4 'n the)e,+*,ane *+ 't( */':at'*n a*3nt'n: t* ,eah *+ *nt,at a( 't +a'/ed t* +'n'(h and de/'-e, the 3n't t* ,e()*ndent .'th'nthe (t')3/ated )e,'*d& The de/a4 'n the *)/et'*n *+ the ),*et a( .e// a( *+ the de/a4 'n the de/'-e,4 *+ the 3n't a,e,eahe( *+ (tat3t*,4 and *nt,at3a/ */':at'*n( .h'h ent't/e ,e()*ndent t* ,e('nd the *nt,at% deand a ,e+3nd and)a4ent *+ daa:e(&

$%EREFORE% ),e'(e( *n('de,ed% the 'n(tant )et't'*n '( DENIED& The De'('*n dated an3a,4 2!% 201" andRe(*/3t'*n dated A),'/ "0% 201" *+ the C*3,t *+ A))ea/( 'n CA#&R& SP N*& 12117$ a,e he,e4 AFFIRMED, !MODIFICATION !a 3ora/ da3a8 aardd n ! a3on o4 P2",""".""

ARTICLES > 162?@ 12"7

G.R. No. 2"777, Mar! 11, 2"15

SPOUSES C%IN #ONG $ONG C%OI AND ANA O. C%UA% Petitioners% v.UNITED COCONUT PLANTERSAN#% Respondent&

D E C I S I O N

CARPIO, J.+

T! Ca

Th'( )et't'*n +*, ,e-'e.1a((a'/( the De'('*n2dated 29 an3a,4 201" a( .e// a( the Re(*/3t'*n"dated 27 a4 201" *+ theC*3,t *+ A))ea/( 5CA 'n CA#&R& SP N*& 1178"1& The CA ,e-e,(ed the De'('*n!dated 1 3ne 2010 andRe(*/3t'*n$dated $ an3a,4 2011 *+ the O++'e *+ the P,e('dent 5OP% and ,3/ed that 't( de'('*n( 'n the a(e( *+ 2CPB v.3)-alloran6and 2CPB v. Liam7(ha// a))/4 'n the ),e(ent a(e% +*//*.'n: the d*t,'ne *+ stare decisis.

T! Fa

The +at(% a( 3//ed +,* the ,e*,d(% a,e a( +*//*.(K

Pet't'*ne, ()*3(e( Ch'n *n: @*n: Ch*' and Ana O& Ch3a 5S)*3(e( Ch*' ente,ed 'nt* a C*nt,at t* Se//8.'thP,'et*.n P,*)e,t4 ,*3)% In& 5P,'et*.n% a d*e(t' *,)*,at'*n en:a:ed 'n the 3('ne(( *+ *nd*'n'3*n(t,3t'*n and ,ea/ e(tate de-e/*)ent& The C*nt,at t* Se// ),*-'ded that S)*3(e( Ch*' a:,eed t* 34 *nd*'n'33n't n*& A#"22 'n 'ene, '//( Ce3 5'ene, +,* P,'et*.n +*, a *n('de,at'*n *+ P1%1$1%718&7$% .'th a d*.n )a4ent *+P100%000&00 and the ,ea'n'n: a/ane )a4a/e 'n !0 eG3a/ *nth/4 'n(ta//ent( *+ P26%292&97 +,* 16 an3a,4 1997 t*16 A),'/ 2000&9

On 2" A),'/ 1998% ,e()*ndent Un'ted C**n3t P/ante,( an< 5UCP% a *e,'a/ an< d3/4 *,:an'Med and e'(t'n:3nde, the /a.( *+ the Ph'/'))'ne(% ee3ted a e*,and3 *+ A:,eeent10and Sa/e *+ Ree'-a/e( and A((':nent *+R':ht( and Inte,e(t( 5A:,eeent11.'th P,'et*.n& The A:,eeent ),*-'ded that P,'et*.n% 'n *n('de,at'*n *+P7!8%000%000&00% >a((':ned% t,an(+e,,ed% *n-e4ed and (et *-e, 3nt* UCPB a// A*3nt( Ree'-a/e( a,3'n: +,*P,'et*.n( 'ene,B t*:ethe, .'th the a((':nent *+ a// 't( ,':ht(% t't/e(% 'nte,e(t( and )a,t'')at'*n *-e, the 3n't(

*-e,ed 4 *, a,'('n: +,* the C*nt,at( t* Se// +,* .h'h the A*3nt( Ree'-a/e( ha-e a,'(en&? In/3ded 'n thea((':ned a*3nt( ,ee'-a/e .a( the a*3nt *+ S)*3(e( Ch*'% .h* ),*-ed )a4ent *+ *ne *nth/4 a*,t'Mat'*n t*UCP *n " Fe,3a,4 1999&12

On 11 A),'/ 2006% the S)*3(e( Ch*' +'/ed a *)/a'nt +*, ,e+3nd *+ *ne4 .'th 'nte,e(t and daa:e( a:a'n(t P,'et*.nand UCP e+*,e the *3('n: and Land U(e Re:3/at*,4 *a,d 5LUR Re:'*na/ F'e/d O++'e N*& I 5RFO I& S)*3(e(Ch*' a//e:ed that de()'te the', +3// )a4ent *+ the )3,ha(e ),'e% P,'et*.n +a'/ed t* +'n'(h the *n(t,3t'*n *+ 'ene, andt* de/'-e, the *nd*'n'3 3n't t* the&

T! R/n8 o4 ! %LUR

In a De'('*n dated 29 N*-ee, 2006%1" the LUR RFO I +*3nd that *n/4 the a*3nt( ,ee'-a/e *n the*nd*'n'3 3n't .e,e t,an(+e,,ed t* UCP& The LUR RFO I (tated that 't .*3/d e 3n+a', t* *,de, UCP t* ,e+3nd

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a// the )a4ent( ade 4 S)*3(e( Ch*' ea3(e UCP *n/4 ,ee'-ed )a,t *+ the *n('de,at'*n a+te, the a((':nent *+,ee'-a/e(& C*n('de,'n: that *th UCP and P,'et*.n .e,e /'a/e t* S)*3(e( Ch*'% and P,'et*.n .a( 3nde,*,)*,ate ,eha'/'tat'*n% the LUR RFO I he/d that the ),*eed'n:( (h*3/d e (3()ended% t* .'tK

@EREFORE% ),e'(e( *n('de,ed% de'('*n '( he,e4 ,ende,ed (3()end'n: the ),*eed'n:( *+ the ),e(ent a(e& The*)/a'nant( a,e the,e+*,e d',eted t* +'/e the', /a' e+*,e the Reha'/'tat'*n Ree'-e,&

N* 3d:ent a( t* the *(t(&

IT IS SO ORDERED&1!

In a De'('*n dated 18 Ot*e, 2007%1$the LUR *a,d *+ C*'(('*ne,( 5OC (3()ended the ),*eed'n:( a:a'n(tP,'et*.n% 3t *,de,ed UCP t* ,e+3nd the +3// a*3nt )a'd 4 S)*3(e( Ch*'& The LUR OC +*3nd that UCP .a(the /e:a/ (3e((*,#'n#'nte,e(t *+ P,'et*.n a:a'n(t .h* the S)*3(e( Ch*'( at'*n +*, ,e+3nd *3/d e en+*,ed& Thed'()*('t'-e )*,t'*n *+ the de'('*n ,ead(K

@EREFORE% ),e'(e( *n('de,ed% the de'('*n *+ the Re:'*na/ O++'e '( SET ASIDE and a ne. *ne '( ente,ed a(+*//*.(K

1& Re()*ndent UCP '( he,e4 *,de,ed t* ,e+3nd t* the *)/a'nant the a*3nt *+ P1%1$1%718&80 .'th 'nte,e(t at the/e:a/ ,ate *+ 6 )e, ann3 ,e

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@IT ALL DUE RESPECT% TE ONORALE COURT OF APPEALS RIEOUSL ERRED IN RULIN TE INSTANTCASE SOLEL RELIN ON TE DOCTRINE OF STARE DECISIS CITIN TE CASES OF UCP & ON P&OALLORAN AND OSEFINA L& OALLORAN 5CA#&R& SP NO& 101699 5A C*3,t *+ A))ea/( De'ded Ca(e ANDUCP & FLORITA LIA 5CA#&R& SP NO& 11219$% 5a C*3,t *+ A))ea/( De'ded Ca(e DESPITE TE APPLICAILITOF TE DOCTRINE OF ESTOPPEL IN TIS CASE% @IC IS NOT PRESENT IN TE OALLORAN CASE AND LIACASE& TE ONORALE COURT OF APPEALS A QUO ALSO ERRED @EN IT DECIDED TIS CASE ONLIIN DUE DEFERENCE TO TE DECISION OF ITS CO#DIISION% UT SOULD AE LOOED UPON TEERITS OF TE CASE APPLIN TE DECISION OF TE SUPREE COURT IN TE CASE OF QUASAANCETA PEA NOLASCO LA@ OFFICE and LEEND INTERNATIONAL RESORTS% LIITED -(& TE SPECIALSIT DIISION *+ the COURT OF APPEALS% OO OO OON and the La. F', *+ PICAO UCO TAN FIDER SANTOS 5&R& N*& 18201"% Deee, !% 2009&

II&

@IT ALL DUE RESPECT% TE ONORALE COURT OF APPEALS RIEOUSL ERRED @EN IT DISREARDEDTE APPLICAILIT OF TE SUPREE COURT DECIDED CASES OF LUON DEELOPENT AN & ANELESCATERINE ENRIQUE 5&R& NO& 1686!6% ANUAR 12% 2011 AND DELTA DEELOPENT AND ANAEENTSERICES INC& & ANELES CATERINE ENRIQUE AND LUON DEELOPENT AN 5&R& NO& 168666%ANUAR 12% 2011 TO TE INSTANT CASE& TE ONORALE COURT OF APPEALS ALSO ERRED @EN ITFAILED TO APPL TE ORE RECENT CASE OF PCO S& PRIDISONS REALT CORPORATION 5&R& NO&1$$11"% ANUAR 9% 201" TO TE INSTANT CASE&

III&

@IT ALL DUE RESPECT% TE ONORALE COURT OF APPEALS RIEOUSL ERRED NOT RESOLIN TEISSUE PERTAININ TO TE EFFECT OF TE CONTRACT DENOINATED AS SALE OF RECEIALES ANDASSINENT OF RITS AND INTERESTS% @EREIN PRIETO@N TRANSFERRED TO RESPONDENT UCPTE FORERS RECEIALES% ONIES% RITS% TITLES% AND INTERESTS IN TE IENER ILLSCONDOINIU PROECT&2"

T! R/n8 o4 ! Cor

@e den4 the )et't'*n&

The ),'*,d'a/ '((3e t* e ,e(*/-ed '( .hethe,% 3nde, the A:,eeent et.een P,'et*.n and UCP% UCP a((3ed the

/'a'/'t'e( and */':at'*n( *+ P,'et*.n 3nde, 't( *nt,at t* (e// .'th S)*3(e( Ch*'&

An a((':nent *+ ,ed't ha( een de+'ned a( an a:,eeent 4 -',t3e *+ .h'h the *.ne, *+ a ,ed't%

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'ntent'*n t* e/3de P,'et*.n( /'a'/'t'e( and */':at'*n( '( +3,the, (h*.n 4 P,'et*.n( (3(eG3ent /ette,( t* the34e,(% .h'h (tated that >th'( )a4ent a,,an:eent (ha// 'n n* .a4 a3(e an4 aendent *+ the *the, te,( and*nd't'*n(% n*, the ane//at'*n *+ the C*nt,at t* Se// 4*3 ha-e ee3ted .'th P,'et*.nB&? "0It '( a a(' ,3/e that '+ thete,( *+ a *nt,at a,e /ea, and /ea-e n* d*3t 3)*n the 'ntent'*n *+ the )a,t'e(% the /'te,a/ ean'n: (ha// *nt,*/& "1The.*,d( (h*3/d e *n(t,3ed a*,d'n: t* the', *,d'na,4 ean'n:% 3n/e(( (*eth'n: 'n the a((':nent 'nd'ate( that the4a,e e'n: 3(ed 'n a ()e'a/ (en(e&"2F3,the,*,e% 'n *,de, t* 3d:e the 'ntent'*n *+ the *nt,at'n: )a,t'e(% the',*nte)*,ane*3( and (3(eG3ent at( (ha// e ),'n')a//4 *n('de,ed&""

It .a( n*t /ea, .hethe, the >a*3nt n*t eeed'n: "0%000%000&00% Ph'/'))'ne 3,,en4? 'n the A:,eeent ,e+e,,ed t*,ee'-a/e( *, /'a'/'t'e(&"!Unde, the R3/e( *+ C*3,t% .hen d'++e,ent *n(t,3t'*n( *+ a ),*-'('*n a,e *the,.'(e eG3a//4),*)e,% that '( t* e tat* ,e('nd the *nt,at t* (e// and t,an(+e, the t't/e *+*nd*'n'3 3n't t* 't( nae 3)*n +a'/3,e *+ the 34e, t* )a4 the +3// )3,ha(e ),'e? 'nd'ate( that UCP .a( e,e/4

:'-en the ,':ht t* t,an(+e, t't/e 'n 't( nae t* a))/4 the ),*)e,t4 a( )a,t'a/ )a4ent *+ P,'et*.n( */':at'*n; and ! theA:,eeent /ea,/4 (tate( that the a((':nent '( /''ted t* the ,ee'-a/e( and d*e( n*t 'n/3de >an4 and a// /'a'/'t 'e(.h'h P,'et*.nB a4 ha-e a((3ed 3nde, the 'nd'-'d3a/ *nt,at t* (e//&? Th3(% the CA ,3/ed that UCP a a 3ra8n o4 ! r8! o4 Pr3on o o// on onra o // ! %o & The CA% then% a))/'ed the ,3/'n:'n2CPB v. 3)-alloran'n +'nd'n: UCP *'nt/4 /'a/e .'th P,'et*.n *n/4 +*, the )a4ent( UCP had at3a//4 ,ee'-ed+,* *&

On ! Deee, 201"% th'( C*3,t '((3ed a Re(*/3t'*n!2den4'n: *( )et't'*n +*, ,e-'e. +*, +a'/3,e t* (h*. an4 ,e-e,('/ee,,*, *n the )a,t *+ the CA& On 2 A),'/ 201!% th'( C*3,t /'

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*th a(e( 'n-*/-ed the +a'/3,e t* *)/4 .'th Set'*n( 17% 18 and 2$ *+ P,e('dent'a/ De,ee N*& 9$7% .h'h ade thean

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1& @hethe, *, n*t 3d:ent *n the )/ead'n:( .a( ),*)e,/4 'n-*

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the /e:a/ *, )h4('a/ ')*((''/'t'e( *nte)/ated 'n (a'd a,t'/e& e('de(% )et't'*ne, +a'/ed t* (tate ()e'+'a//4 the',3(tane( ,*3:ht a*3t 4 >the a,3)t han:e 'n the )*/'t'a/ /'ate 'n the *3nt,4? ee)t the a//e:ed ),e-a'/'n:3ne,ta'nt'e( 'n :*-e,nent )*/''e( *n 'n+,a(t,3t3,e ),*et(&

The ),'n')/e *+ re&us sic stanti&usne'the, +'t( 'n .'th the +at( *+ the a(e& Unde, th'( the*,4% the )a,t'e( (t')3/ate 'n the/':ht *+ e,ta'n ),e-a'/'n: *nd't'*n(% and *ne the(e *nd't'*n( ea(e t* e'(t% the *nt,at a/(* ea(e( t* e'(t& Th'(the*,4 '( (a'd t* e the a('( *+ A,t'/e 1267 *+ the C'-'/ C*de% .h'h ),*-'de(KA,t& 1267& @hen the (e,-'e ha( e*e (* d'++'3/t a( t* e an'+e(t/4 e4*nd the *nte)/at'*n *+ the )a,t'e(% the*/':*, a4 a/(* e ,e/ea(ed the,e+,*% 'n .h*/e *, 'n )a,t&

Th'( a,t'/e% .h'h en3n'ate( the d*t,'ne *+ 3n+*,e(een e-ent(% '( n*t% h*.e-e,% an a(*/3te a))/'at'*n *+ the ),'n')/e*+ ,e3( (' stanti&us% .h'h .*3/d endan:e, the (e3,'t4 *+ *nt,at3a/ ,e/at'*n(& The )a,t'e( t* the *nt,at 3(t e),e(3ed t* ha-e a((3ed the ,'(t* d*? en-'(a:ed 'n A,t'/e( 1266 and 1267 .h'h ha(een ,ende,ed /e:a//4 *, )h4('a//4 ')*(('/e .'th*3t the +a3/t *+ the */':*,#/e((*,& A,t'/e 1267 ()ea

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*.e-e,% 'n at'*n( +*, de/a,at'*n *+ n3//'t4 *, ann3/ent *+ a,,'a:e *, +*, /e:a/ (e)a,at'*n% the ate,'a/ +at( a//e:ed 'nthe *)/a'nt (ha// a/.a4( e ),*-ed&

A 3d:ent *n the )/ead'n:( '( a 3d:ent *n the +at( a( )/eaded%17and '( a(ed e/3('-e/4 3)*n the a//e:at'*n(a))ea,'n: 'n the )/ead'n:( *+ the )a,t'e( and the a*)an4'n: annee(&18 It '( (ett/ed that the t,'a/ *3,t ha( thed'(,et'*n t* :,ant a *t'*n +*, 3d:ent *n the )/ead'n:( +'/ed 4 a )a,t4 '+ the,e '( n* *nt,*-e,ted atte, 'n the a(ea+te, the an(.e, '( +'/ed&19A :en3'ne '((3e *+ +at '( that .h'h ,eG3',e( the ),e(entat'*n *+ e-'dene% a( d'(t'n:3'(hed+,* a (ha% +'t't'*3(% *nt,'-ed *, +a/(e '((3e&20 C*e t* th'n< *+ 't% 3nde, R3/e "$% *n S3a,4 3d:ent(% C*:/a(*had ,e*3,(e t* *-e +*, (3a,4 3d:ent% .he,e'n 't *3/d ha-e add3ed (3))*,t'n: e-'dene t* 3(t'+4 't( at'*n *nthe )a,t'e( /ea(e% 3t 't d'd n*t d* (*& Set'*n 2 *+ R3/e "$ ),*-'de(K

Se& 2& %ummary 5udgment for defending party.# A )a,t4 a:a'n(t .h* a /a'% *3nte,/a'% *, ,*((#/a' '( a((e,ted *,a de/a,at*,4 ,e/'e+ '( (*3:ht a4% !t !"% time,*-e .'th (3))*,t'n: a++'da-'t(% de)*('t'*n( *, ad'(('*n( +*, a (3a,43d:ent 'n h'( +a-*, a( t* a// *, an4 )a,t the,e*+&

C*ne,n'n:% n*.% .hethe, C*:/a(*( a//e:ed ,enta/ de)*('t and ad-ane ,enta/( *+ P"09%000&00 (h*3/d e ,ed'ted t*C*:/a(*( a*3nt% /et 't (3++'e t* (tate that 't ne-e, ,a'(ed th'( atte, 'n 't( an(.e, t* the *)/a'nt% n*, 'n 't( a))ea/ t*the CA& Ce,ta'n/4% 't ann*t d* (* n*.&

F'na//4% a( t* .hethe, att*,ne4( +ee( a4 e ,e*-e,ed 4 Sant*(% A,t'/e 220852 *+ the C'-'/ C*de 3(t'+'e( the a.a,dthe,e*+% 'n the a(ene *+ (t')3/at'*n% .he,e the de+endant( at *, *'(('*n ha( *)e//ed the )/a'nt'++ t* 'n3, e)en(e(t* ),*tet h'( 'nte,e(t& The ),e#te,'nat'*n *+ the /ea(e 4 C*:/a(* .a( n*t d3e t* an4 +a3/t *+ Sant*(% and C*:/a(**)/ete/4 ':n*,ed a// +*3, deand( *+ Sant*( t* )a4 the ,enta/( d3e +,* an3a,4 16% 2002 t* A3:3(t 1$% 200"% the,e4

*)e//'n: Sant*( t* (3e t* *ta'n ,e/'e+& It '( t,3e that the )*/'4 *+ the C*3,t '( that n* ),e'3 (h*3/d e )/aed *n the,':ht t* /'t':ate%213t 't '( a/(* t,3e that att*,ne4( +ee( a,e 'n the nat3,e *+ at3a/ daa:e(% the ,ea(*n e'n: that /'t':at'*n*(t( *ne4&22 3t the C*3,t a:,ee( .'th the CA that the /e((e, a*3nt *+ P100%000&00 't a.a,ded t* Sant*( 'n(tead *+P200%000&00 ad3d:ed 4 the RTC% '( *,e ,ea(*na/e&

$%EREFORE% ),e'(e( *n('de,ed% the )et't'*n '( DENIED+*, /a< *+ e,'t&

ARTICLE 1

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N* ),*n*3neent( a( t* *(t(&

SO ORDERED&!

The +at( a,e 3n*)/'ated&

On Se)tee, 18% 1991% the ()*3(e( 't*,'n* & D'M*n and R*(a/'na L& D'M*n 5%pouses /i#on *ta'ned a /*an 'n thea*3nt *+ P100%000&00 +,* *nte de P'edad and Sa-'n:( anA/th*3:h 't '( ,eG3',ed that +3// )a4ent *+ the,ede)t'*n ),'e 3(t e ade .'th'n the ,ede)t'*n )e,'*d% the ,3/e *n ,ede)t'*n '( at3a//4 /'e,a//4 *n(t,3ed 'n+a-*, *+ the *,':'na/ *.ne, *+ the ),*)e,t4& The )*/'4 *+ the /a. '( t* a'd ,athe, than t* de+eat h' 'n the ee,'(e *+ h'(,':ht *+ ,ede)t'*n& A( the C*3,t *+ A))ea/( *(e,-ed% th'( C*3,t ha( a//*.ed )a,t'e( 'n (e-e,a/ a(e( t* )e,+et the', ,':ht*+ ,ede)t'*n e4*nd the )e,'*d ),e(,'ed the,e+*,&? Othe,.'(e% the de+endant .*3/d e en,'h'n: 't(e/+ at the e)en(e *+he,e'n )/a'nt'++(&

A( /ea,/4 *,ne *3t 4 the ,e*,d( *+ the 'n(tant a(e% de+endant( a))/'at'*n +*, et,a3d''a/ +*,e/*(3,e and )3/'a3t'*n (a/e *+ )/a'nt'++( *,t:a:ed ),*)e,t4 .a( +'/ed 3nde, At N*& "1"$&

*,e*-e,% the ,ea/ e(tate *,t:a:e 5Eh''t >6? e)/''t/4 ),*-'de( that >&&& the *,t:a:ee a4 'ed'ate/4 +*,e/*(e th'(*,t:a:e 3d''a//4 *, et,a3d''a//4 3nde, At N*& "1"$% a( aended&? S'ne the *,t:a:e *nt,at 'n th'( a(e '( 'n thenat3,e *+ a *nt,at *+ adhe('*n a( 't .a( ),e)a,ed (*/e/4 4 de+endant% 't ha( t* e 'nte,),eted 'n +a-*, *+ he,e'n )/a'nt'++(&*.e-e,% de+endant t,'e( t* ,ene:e *n th'( *nt,at3a/ *'tent 4 (eethe ,ede)t'*n ),'e '( eG3a/ t* the t*ta/ a*3nt*+ 'ndetedne(( t* the an

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.*3/d *)/4 .'th 't(B *nt,at3a/ a:,eeent& ene% 't '( *n/4 3(t that )/a'nt'++( e a//*.ed t* ,edee the', *,t:a:ed),*)e,t4 4 )a4'n: *n/4 the .'nn'n: 'd ),'e% .h'h '( P181%9$6&72 )/3( 'nte,e(t at the ,ate *+ 1 )e, *nth 3nt'/ +3//4)a'd& S'ne the )e,'*d *+ ,ede)t'*n e:'n( *n/4 +,* the date *+ the ,e:'(t,at'*n *+ the e,t'+'ate *+ (a/e 'n the Re:'(t,4 *+Deed(% the *)3tat'*n *+ the 'nte,e(t *n the )3,ha(e ),'e (h*3/d a/(* e ade t* *ene +,* that date& ene%the 'nte,e(t d3e *n the a3t'*n ),'e +*, 12 *nth% i.e&% Ot*e, 18% 199" t* Ot*e, 18% 199!% '( *n/4 P21%8"!&8065P181%9$6&72 1 12 *nth(& The t*ta/ ,ede)t'*n ),'e the,e+*,e '( P20"%791&$2& C*n('de,'n: the )a4ent( a/,ead4)a'd 4 he,e'n )/a'nt'++( 'n the t*ta/ a*3nt *+ P90%000&00% the (ae (ha// e ded3ted t* the t*ta/ ,ede)t'*n ),'e *+P20"%791&$2% '&e&% P20"%791&$2 P90%000&00 V P11"%791&$2& P/a'nt'++( a,eB he,e4 a//*.ed t* ,edee the ),*)e,t4 4)a4'n: the ,ea'n'n: a/ane .h'h '( P11"%791&$2 at 1 )e, *nth 3nt'/ +3//4 )a'd&16

On a))ea/% the RTC De'('*n .a( a++',ed 4 the CA% .h'h *)'nedK

In the a(e at a,% S)*3(e(B D'M*n *nt'n3*3(/4 )a'd e))e/ an< the a*3nt *+ theB /*an& A( a atte, *+ +at% S')/''*Ta)'a% ,&% A(('(tant ana:e, *+ e))e/ an

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The ,':ht *+ ,ede)t'*n (h*3/d e ee,'(ed .'th'n the )e,'*d ,eG3',ed 4 /a.% .h'h (h*3/d e *3nted n*t +,* the date*+ +*,e/*(3,e (a/e 3t +,* the t'e the e,t'+'ate *+ (a/e '( ,e:'(te,ed .'th the Re:'(te, *+ Deed(& 21F''n: a de+'n'te te,.'th'n .h'h a ),*)e,t4 (h*3/d e ,edeeed '( eant t* a-*'d ),*/*n:ed e*n*' 3ne,ta'nt4 *-e, the *.ne,(h') *+ theth'n: (*/d&22

In th'( a(e% *n('de,'n: that the ,ed't*,#*,t:a:ee '( a an

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),'e at the a3t'*n (a/e )/3( the *,,e()*nd'n: 'nte,e(t& It .a( ad'tted that '+ the t'e d3,'n: .h'h the '-'/ a(e 5t* (eta('de the a3t'*n (a/e and t* de/a,e the th',d#)a,t4 /a'ant a( a(*/3te *.ne, *+ the ),*)e,t4 .a( )end'n: '( n*tded3ted% the ee,'(e *+ the ,':ht t* ,edee .a( e4*nd the t.e/-e#*nth )e,'*d& *.e-e,% eG3'ta/e *n('de,at'*n .a('n-*

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,ea/t4 ta% .e,e *n(':ned .'th the /e,< *+ *3,t&

In Cayton et al. v.

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The ,':ht t* ,edee e*e( functus officio*n the date *+ 't( e)',4% and 't( ee,'(e a+te, the )e,'*d '( n*t ,ea//4 *ne *+,ede)t'*n 3t a ,e)3,ha(e& D'(t'nt'*n 3(t e ade ea3(e ,ede)t'*n '( 4 +*,e *+ /a.; the )3,ha(e, at )3/'a3t'*n '( *3nd t* ae)t ,ede)t'*n& Re)3,ha(e% h*.e-e,% *+ +*,e/*(ed ),*)e,t4% a+te, ,ede)t'*n )e,'*d% ')*(e( n*(3h */':at'*n& A+te, e)',4% the )3,ha(e, a4 *, a4 n*t ,e#(e// the ),*)e,t4 3t n* /a. .'// *)e/ h' t* d* (*& And%he '( n*t *3nd 4 the 'd ),'e; 't '( ent',e/4 .'th'n h'( d'(,et'*n t* (et a h':he, ),'e% +*, a+te, a//% the ),*)e,t4 a/,ead4e/*n:( t* h' a( *.ne,&$8

A// t*/d% the S)*3(e( D'M*n ann*t% the,e+*,e% a,:3e that eG3't4 (h*3/d ),e-a'/& >EG3't4 ha( een de+'ned a( 3(t'e *3t('de/a.% e'n: eth'a/ ,athe, than 3,a/ and e/*n:'n: t* the ()he,e *+ *,a/( than *+ /a.& It '( :,*3nded *n the ),ee)t( *+*n('ene and n*t *n an4 (ant'*n *+ )*('t'-e /a.&?$9et eG3't4 a))/'e( *n/4 'n the a(ene *+% and ne-e, a:a'n(t%(tat3t*,4 /a. *, 3d''a/ ,3/e( *+ ),*ed3,e&60

In -'e. *+ the C*3,t( ate:*,'a/ +'nd'n: that the S)*3(e( D'M*n +a'/ed t* e++et a -a/'d ,ede)t'*n *+ the (3et ),*)e,t4%the,e '( n* *,e nee(('t4 t* )a(( 3)*n the e,'t( *+ the (e*nd and th',d '((3e( ),e(ented 'n the 'n(tant )et't'*n&

$%EREFORE% the +*,e:*'n: *n('de,ed% the 'n(tant )et't'*n +*, ,e-'e. *n certiorari '( GRANTED& The a4 1"% 2008De'('*n and A3:3(t 27% 2008 Re(*/3t'*n *+ the C*3,t *+ A))ea/( 'n CA#&R& C N*& 82"07 a,e RE&ERSEDand SETASIDEand the *)/a'nt 'n C'-'/ Ca(e N*& 98#88228 +'/ed e+*,e the Re:'*na/ T,'a/ C*3,t% ,anh 26% an'/a%'( DISMISSED.

ARTICLES > 22

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,ee'-e,=a((':nee; and +*,'dd'n: )a4ent *+ an4 det( d3e% de/'-e,4 *+ ),*)e,t'e(% and t,an(+e, *+ an4 *+ 't( ),*)e,t'e(&

Pend'n: the a))*'ntent *+ a ,ee'-e,% 3d:e 3an d',eted the ,ed't*,(% 'n/3d'n: et,*an

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The '((3e( +*, ,e(*/3t'*n a,eK

F',(t% .hethe, the C*3,t *+ A))ea/( e,,ed 'n ,3/'n: that ),'*, leave of the insolvency court '( nee((a,4 e+*,e a (e3,ed,ed't*,% /'

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At N*& 19$6 .a( eant t* e a *)/ete /a. *n 'n(*/-en4%$6and det( .e,e t* e /'G3'dated 'n a*,dane .'th the*,de, *+ ),'*,'t4 (et +*,th 3nde, Cha)te, I% Set'*n( !8 t* $0 *n C/a(('+'at'*n and P,e+e,ene *+ C,ed't*,(; and Set'*n(29 and $9 .'th ,e()et t* *,t:a:e *, )/ed:e *+ ,ea/ *, )e,(*na/ ),*)e,t4% *, /'en the,e*n& 3,'(d't'*n *-e, (3()en('*n *+)a4ent( and 'n(*/-en4 .a( -e(ted 'n the C*3,t( *+ F',(t In(tane 5n*. the Re:'*na/ T,'a/ C*3,t(&$7

The C'-'/ C*de$85e++et'-e A3:3(t "0% 19$0 e(ta/'(hed a (4(te *+ *n3,,ene and ),e+e,ene *+ ,ed't(% .h'h +'nd()a,t'3/a, a))/'at'*n 'n 'n(*/-en4 ),*eed'n:(&$9Philippine %avings Ban' v. -on. Lantin60e)/a'n( th'( (heeK

C*n3,,ene *+ ,ed't( *3,( .hen the (ae ()e'+' ),*)e,t4 *+ the det*, *, a// *+ h'( ),*)e,t4 '( (3eted t* the/a'( *+ (e-e,a/ ,ed't*,(& The *n3,,ene *+ ,ed't( ,a'(e( n* G3e(t'*n( *+ *n(eG3ene .he,e the -a/3e *+ the),*)e,t4 *, the -a/3e *+ a// a((et( *+ the det*, '( (3++''ent t* )a4 'n +3// a// the ,ed't*,(& *.e-e,% 't e*e( ate,'a/.hen (a'd a((et( a,e 'n(3++''ent +*, then (*e ,ed't*,( *+ nee(('t4 .'// n*t e )a'd *, (*e ,ed't*,( .'// n*t *ta'n the+3// (at'(+at'*n *+ the', /a'(& In th'( ('t3at'*n% the G3e(t'*n *+ ),e+e,ene .'// then a,'(e% that '( t* (a4 .h* *+ the ,ed't*,(.'// e )a'd ahead *+ the *the,(& 5Ca:3'*a% C*ent( and Ca(e( *n C'-'/ La.% 1970 ed&% */& I% )& !72& 61

The ,ed't( a,e /a(('+'ed 'nt* th,ee :ene,a/ ate:*,'e(% nae/4% 5a ()e'a/ ),e+e,,ed ,ed't( /'(ted 'n A,t'/e( 22!162and22!2%6"5 *,d'na,4 ),e+e,,ed ,ed't( /'(ted 'n A,t'/e 22!!%B 6!and 5 **n ,ed't( 3nde, A,t'/e 22!$&6$

The ()e'a/ ),e+e,,ed ,ed't( en3e,ated 'n A,t'/e( 22!1 5.'th ,e()et t* *-a/e ),*)e,t4 and 22!2 5.'th ,e()et t*'*-a/e ),*)e,t4 a,e *n('de,ed a( *,t:a:e( *, )/ed:e( *+ ,ea/ *, )e,(*na/ ),*)e,t4% *, /'en( .'th'n the )3,-'e. *+At N*& 19$6&66The(e ,ed't(% .h'h en*4 ),e+e,ene .'th ,e()et t* a ()e'+' *-a/e *, '*-a/e ),*)e,t4% e/3dea// *the,( t* the etent *+ the -a/3e *+ the ),*)e,t4&67I+ the,e a,e t.* *, *,e /'en( *n the (ae ()e'+' ),*)e,t4% the/'enh*/de,( d'-'de the -a/3e *+ the ),*)e,t4 'n-*/-edpro rata% a+te, the tae( *n the (ae ),*)e,t4 a,e +3//4 )a'd&68

C,ed't( .h'h a,e ()e'a//4 ),e+e,,ed ea3(e the4 *n(t't3te /'en( 5ta *, n*n#ta 'n t3,n% ta

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101!2%78*the,.'(e

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and inventory in the form hereinafter provided.The +'/'n: *+ (3h )et't'*n (ha// e an at *+ 'n(*/-en4&5 Unde, Son 16% theB 'n-ent*,4 3(t *nta'n% e('de( the ,ed't*,(% an a3,ate de(,')t'*n *+ a// the ,ea/ and

)e,(*na/ ),*)e,t4% e(tate% and e++et( *+ the 'n(*/-entB% 'n/3d'n: h'( h*e(tead% '+ an4% t*:ethe, .'th a (tateent *+the -a/3e *+ eah 'te *+ (a'd ),*)e,t4% e(tate% and e++et( and 't( /*at'*n% and a (tateent *+ the 'n3,ane(the,e*n& A// ),*)e,t4 ee)t 4 /a. +,* ee3t'*n (ha// e (et *3t 'n (a'd 'n-ent*,4 .'th a (tateent *+ 't(-a/3at'*n% /*at'*n% and the 'n3,ane( the,e*n% '+ an4& The 'n-ent*,4 (ha// *nta'n an *3t/'ne *+ the +at( :'-'n:,'(e( ('B% *, .h'h ':ht :'-e ,'(e% t* a ,':ht *+ at'*n 'n +a-*, *+ the 'n(*/-ent det*,&

5C Unde, Son 1?,3)*n ,ee')t *+ the )et't'*n% the *3,t (ha// '((3e an *,de, de/a,'n: the )et't'*ne, 'n(*/-ent% andd',et'n: the (he,'++ to ta'e possession of and safely 'eep3nt'/ the a))*'ntent *+ a ,ee'-e, *, a((':nee%all thede&tor>s real and personal propertyee)t th*(e ee)t 4 /a. +,* ee3t'*n& The *,de, a/(* +*,'d( the t,an(+e,*+ an4 ),*)e,t4 4 the det*,&

5D Unde, Son

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On the *the, hand% t* :'-e the (e3,ed ,ed't*, a +,ee hand 'n +*,e/*('n: 't( *//ate,a/ 3)*n the 'n't'at'*n *+ 'n(*/-en4),*eed'n:( a4 +,3(t,ate the a(' *et'-e( *+ At N*& 19$6 *+ a''M'n: the -a/3e *+ the e(tate *+ the 'n(*/-ent *,*ta'n'n: the h':he(t ,et3,n )*(('/e +,* 't( (a/e +*, the ene+'t *+ a// the ,ed't*,( 5*th (e3,ed and 3n(e3,ed&

III

Ee3t'-e 3d:e a'tan#E,3 d'd n*t 3n/a.+3//4 ne:/et t* )e,+*, he, d3t4 .hen (he ,e+3(ed t* a)),*-e and (':n theCe,t'+'ate *+ Sa/e% a( .*3/d .a,,ant the '((3ane *+ a .,'t *+ anda3( a:a'n(t he,&

An ee3t'-e 3d:e ha( the ad'n'(t,at'-e d3t4 'n et,a3d''a/ +*,e/*(3,e ),*eed'n:( t* en(3,e that a// the *nd't'*n( *+At N*& "1"$ ha-e een *)/'ed .'th e+*,e a)),*-'n: the (a/e at )3/' a3t'*n *+ an4 *,t:a:ed ),*)e,t4&106

Ce,ta'n ,eG3'('te( 3(t e e(ta/'(hed e+*,e a ,ed't*, an ),*eed t* an et,a3d''a/ +*,e/*(3,e% nae/4K +',(t% the,e3(t ha-e een the +a'/3,e t* )a4 the /*an *ta'ned +,* the *,t:a:ee#,ed't*,; (e*nd% the /*an */':at'*n 3(t e(e3,ed 4 a ,ea/ e(tate *,t:a:e; and th',d% the *,t:a:ee#,ed't*, ha( the ,':ht t* +*,e/*(e the ,ea/ e(tate *,t:a:ee'the, 3d''a//4 *, et,a3d''a//4&107

F3,the,*,e% At N*& "1"$ *3t/'ne( the n*t'e and )3/'at'*n ,eG3',eent( and the ),*ed3,e +*, the et,a3d''a/+*,e/*(3,e .h'h *n(t't3te a *nd't'*n sine qua non+*, 't( -a/'d't4& S)e'+'a//4% Set'*n( 2% "% and ! *+ the /a. ),e(,'ethe +*,a/'t'e( *+ the et,a3d''a/ +*,e/*(3,e ),*eed'n:K

SEC& 2& Sa'd (a/e ann*t e ade /e:a//4 *3t('de *+ the ),*-'ne 'n .h'h the ),*)e,t4 (*/d '( ('t3ated; and 'n a(e the

)/ae .'th'n (a'd ),*-'ne 'n .h'h the (a/e '( t* e ade '( the (3et *+ (t')3/at'*n% (3h (a/e (ha// e ade 'n (a'd)/ae *, 'n the 3n'')a/ 3'/d'n: *+ the 3n'')a/'t4 'n .h'h the ),*)e,t4 *, )a,t the,e*+ '( ('t3ated&

SEC& "& N*t'e (ha// e :'-en 4 )*(t'n: n*t'e( *+ the (a/e +*, n*t /e(( than t.ent4 da4( 'n at /ea(t th,ee )3/' )/ae( *+the 3n'')a/'t4 *, 't4 .he,e the ),*)e,t4 '( ('t3ated% and '+ (3h ),*)e,t4 '( .*,th *,e than +*3, h3nd,ed )e(*(% (3hn*t'e (ha// a/(* e )3/'(hed *ne a .ee< +*, at /ea(t th,ee *n(e3t'-e .ee

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Unde, the +*,e:*'n: ',3(tane(% the ,e+3(a/ *+ Ee3t'-e 3d:e a'tan#E,3 t* a)),*-e the Ce,t'+'ate *+ Sa/e .a( 'na*,d .'th he, d3t4 t* at .'th ),3dene% a3t'*n% and attent'*n 'n the )e,+*,ane *+ he, +3nt'*n(&

$%EREFORE% the Pet't'*n '(DENIED,and the C*3,t *+ A))ea/(W De'('*n dated N*-ee, 1$% 2006 and Re(*/3t'*ndated 3ne 1!% 2007 a,e AFFIRMED.

ARTICLES > 1

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One th'( de'('*n e*e( +'na/% /et an *,de, +*, the '((3ane *+ de,ee '((3e& 19

On Se)tee, 2"% 1970% ),'*, t* the '((3ane *+ the de,ee( *+ ,e:'(t,at'*n% the ()*3(e( Sand*-a/ and ()*3(e( OMaeta(*/d the (3et ),*)e,t'e( t* E3:en'* L*)eM& In the Dd o4 Ao/ Sa/20ee3ted 4 the ()*3(e(% the4 .a,,antedthat the4 .*3/d +'/e the *,,e()*nd'n: *t'*n *, an'+e(tat'*n 'n LRC N*& N#28$8% LRC Re& N*& N#18887 'n *,de, thatthe *,':'na/ e,t'+'ate( *+ t't/e *-e, the (3et ),*)e,t'e( .'// e '((3ed 'n the nae *+ E3:en'* L*)eM% h'( he',(%ad'n'(t,at*,(% *, a((':n(& E3:en'* L*)eM then ente,ed 'nt* )*((e(('*n *+ the (3et ),*)e,t'e(&

S3(eG3ent/4% the de,ee( *+ ,e:'(t,at'*n ,ea'ned 3n'((3ed&

ea,( /ate,% *n a4 12% 199"% a e,ta'n Att4& 3an't* R& D'aan* +'/ed 'n LRC N*& N#28$8% LRC Re& N*& N#18887 an Ent,4*+ A))ea,ane .'th *t'*n +*, I((3ane *+ Ce,t'+'ate *+ F'na/'t421+*, and *n eha/+ *+ the a))/'ant( Sand*-a/ andOMaeta& The /and ,e:'(t,at'*n a(e .a( then )end'n: at the RTC *+ Pa(': C't4% ,anh 1$2& Att4& D'aan* a-e,,ed that thet,'a/ *3,tW( De'('*n dated a4 "1% 1966 had ('ne e*e +'na/% a( n* a))ea/ .a( +'/ed the,e*n% and he ),a4ed +*, the'((3ane *+ a Ce,t'+'ate *+ F'na/'t4 *+ the a+*,e(a'd De'('*n& On 3/4 1!% 199"% Att4& D'aan* +'/ed a *t'*n +*, I((3ane*+ a De,ee22'n the (a'd a(e&

In an Ordr2"dad A8 2, 199

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da4 *+ A8n'neteen h3nd,ed and nn0*8!, a 1+16 -.3.

5S':nedEDAR D&SANTOSRe:'(te, *+ Deed("75E)ha(e( *3,(&In the', *t'*n% the L*)eM he',( ),a4ed +*, the d/araon o4 n//0*+ De,ee N*(& N#2176!" and N#2176!! and OCTN*(& O#160" and O#160!& The4 a//e:ed that the '((3ane *+ the de,ee( and the e,t'+'ate( *+ t't/e ),ee)ted the t,'a/*3,t 'n ,e(*/-'n: the', *t'*n dated A),'/ 28% 1997 .he,e the4 .e,e a(

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On (n 2, 1999% the RTC *+ Pa(': C't4 den'ed the L*)eM he',(W *t'*n dated A),'/ 28% 1997&!"'-en the '((3ane *+ thede,ee( *+ ,e:'(t,at'*n% the t,'a/ *3,t ,3/ed that (a'd *t'*n had a/(* een ,ende,ed **t& Th3(% the Deed *+ A(*/3teSa/e *3/d n* /*n:e, e *n('de,ed&

On the (ae date% the RTC *+ Pa(': C't4 '((3ed an*the, Ordr%!!th'( t'e den4'n: the *t'*n *+ the L*)eM he',( datedN*-ee, 2$% 1998& The t,'a/ *3,t ,e/'ed *n the /a,'+'at'*n *+ the LRA Ad'n'(t,at*, that the de,ee( .e,e '((3ed(*et'e et.een A3:3(t 8 and 1"% 1998% n*t *n Ot*e, 20% 1997& The RTC a/(* he/d that the L*)eM he',( .e,e a,,ed4 /ahe( 'n ),e(ent'n: the Deed *+ A(*/3te Sa/e dated Se)tee, 2"% 1970& The t,'a/ *3,t ,3/ed that the L*)eM he',((h*3/d ha-e ee,ted e++*,t 'n en(3,'n: that the -end*,( *)/'ed .'th the', */':at'*n t* +'/e the nee((a,4 *t'*n *,an'+e(tat'*n +*, the *,':'na/ e,t'+'ate( *+ t't/e t* '((3e 'n the nae *+ E3:en'* L*)eM *, h'( (3e((*,(#'n#'nte,e(t&

The L*)eM he',( +'/ed a *t'*n +*, Re*n('de,at'*n!$*+ the t.* O,de,( *+ the RTC dated 3ne 2!% 1999&

ean.h'/e% *n A3:3(t 27% 1999% a))/'ant R*an OMaeta% ,& +'/ed a Man4aon!6e+*,e the RTC *+ Pa(': C't4% (tat'n:that he ,eent/4 /ea,ned that the', +*,e, *3n(e/ ne-e, +'/ed the *t'*n *, an'+e(tat'*n ,eG3',ed 'n the Deed *+ A(*/3teSa/e 'n *,de, that the t't/e( t* the (3et ),*)e,t'e( .*3/d e '((3ed 'n the nae *+ E3:en'* L*)eM& OMaeta *'ned theL*)eM he',( 'n the', *t'*n( dated A),'/ 28% 1997 and N*-ee, 2$% 1998% a( .e// a( the', *t'*n +*, Re*n('de,at'*n *+the t.* RTC O,de,( dated 3ne 2!% 1999& OMaeta a++',ed the d3e ee3t'*n *+ the Deed *+ A(*/3te Sa/e 'n +a-*, *+E3:en'* L*)eM and *n+',ed that the )3,ha(e ),'e the,e*n .a( a/,ead4 )a'd t* the a))/'ant(& La(t/4% OMaeta a((e,tedthat he d'd n*t en:a:e Att4& D'aan*W( /e:a/ (e,-'e(&

In an O,de,!7dated a,h "% 2000% the RTC *+ Pa(': C't4 den'ed the L*)eM he',(W *t'*n +*, Re*n('de,at'*n&

The L*)eM he',( /*d:ed an a))ea/ e+*,e the C*3,t *+ A))ea/(% .h'h .a( d*

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D,& S't* Ant*n'* A-e&% a43n:a% Pa(': C't4% t* e 4 t,3e and /a.+3/ Att*,ne4#In#Fat% +*, e and 'n 4 nae% )/aeand (tead and +*, 4 *.n 3(e and ene+'t(% t* d* and )e,+*, an4 and a// *+ the +*//*.'n: at( and th'n:(K

1& TO a3th*,'Me 4 Att*,ne4#In#Fat t* (e// a )a,e/ *+ /and ('t3ated 'n a3:an% Ant')*/*% R'Ma/ *-e,ed 4 TADECLARATION NO& 0$#079$% *nta'n'n: an a,ea *+ FIE TOUSAND EIT UNDRED SIT#BTREE5$%86" SQ& ETERS% *,e *, /e((; and TA DECLARATION NO& 0$#08$9% *nta'n'n: an a,ea *+ T@OTOUSAND 52%000 SQ& ETERS% *,e *, /e((;

2& TO ,ee'-e )a4ent 'n a(h *, 'n he< and t* ne:*t'ate% end*,(e and ena(h the (ae&

; and t* .'tne(( 'n C*3,t&

"& TO )e,+*, *the, ,e/ated atte,( .h'h a,e nee((a,4 +*, the +3/+'//ent *+ the (a'd a3th*,'t4 (* :,anted&

IIN AND RANTIN UNTO 4 (a'd Att*,ne4#'n#Fat +3// )*.e, and a3th*,'t4 t* d* and )e,+*, e-e,4 at and th'n:.hat(*e-e,% ,eG3'('te and nee((a,4 t* eB d*ne 'n and a*3t theB ),e'(e(% a( +3//4 t* a// 'ntent( and )3,)*(e a( I ':ht*, *3/d d* '+ )e,(*na//4 ),e(ent he,e4 ,at'+4'n: and *n+','n: a// that 4 (a'd att*,ne4 (ha// /a.+3//4 d* *, a3(e t* ed*ne 4 -',t3e *+ the ),e(ent(&$"

I)/4'n: that the ()*3(e( Sand*-a/ .e,e the *n/4 ,e:'(te,ed *.ne,( *+ the (3et ),*)e,t'e( *-e,ed 4 OCT N*(& O#160" and O#160!% R'-e,a ),a4ed +*, the t,'a/ *3,t t* '((3e the nee((a,4 .,'t *+ )*((e(('*n 'n *,de, +*, the Sand*-a/he',( t* ta

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Te)*,a,4 Re(t,a'n'n: O,de, and=*, P,e/''na,4 In3nt'*n%62.h'h .a( d*

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On a,h 2% 2006% the L*)eM he',( +'/ed a *t'*n +*, C*n(*/'dat'*n 7!*+ &R& N*& 1$$!0$ and &R& N*& 16!092% .h'h theC*3,t :,anted 'n a Re(*/3t'*n7$dated 3ne 21% 2006&

8##ue#

In G.R. No. 16"92% the L*)eM he',( (et +*,th the +*//*.'n: '((3e( +*, *3, *n('de,at'*nK

I& @ETER OR NOT PETITIONERS 5OANTS#APPELLANTS ARE PROPERL PARTIES#LITIANTS INTE LAND REISTRATION PROCEEDINS&

II. @ETER OR NOT TE OTION DATED NOEER 2$% 1998 IS PROPER FOR PURPOSES OFIPUNIN TE QUESTIONED DECREES AND TE CORRESPONDIN ORIINAL CERTIFICATES OFTITLE&76

On the *the, hand% 'n G.R. No. 155"5% the L*)eM he',( (3't the +*//*.'n: a,:3ent(K

1& @ETER TE PENDENC OF TE RESOLUTION OF TE APPEAL FRO TE ORDERS OF TEREISTRATION COURT 5Re:'*na/ T,'a/ C*3,t% ,anh 1 $B2 'n Pa(': C't4% DATED 3ne 2!% 1999 AND a,h "%2000% OT DENIN TE PETITIONERSW OTION TO DECLARE DECREES NOS& N#2176!" AND N#2176!! AND TE CORRESPONDIN OCT NOS& O#160" AND O#160! NULL AND OID ARS TE ISSUANCEOF TE @RIT OF POSSESSION&

2& @ETER TE PETITION 5+*, the '((3ane *+ the @,'t *+ P*((e(('*n IS DISISSILE UNDER RULE 16%PARARAP 5D OF TE 1997 RULES ON CIIL PROCEDURE ON TE ROUND TAT RESPONDENTIELDA RIERA AD NO LEAL CAPACIT TO SUE&

"& @ETER PRIATE RESPONDENT IS UILT OF FORU SOPPIN @EN SE FILED TE PETITIONFOR @RIT OF POSSESSION EFORE TE RTC RANC 7!% IN ANTIPOLO CIT% ALTOU TE LANDREISTRATION CASE INOLIN TE QUESTIONED PROPERTIES IS STILL PENDIN EFORE RTCRANC 1$2% IN PASI CIT&

!& @ETER TE EIRS OF SPOUSES ALFONSO SANDOAL AND ROSA RUI% REPRESENTED PRIATERESPONDENT% ARE OUND NOT ONL TE DEED OF ASOLUTE SALE EECUTED SAIDDECEDENTS UT ALSO TE UNDERTAIN CONTAINED TEREIN&

$& @ETER TE PULIC RESPONDENT AS ACTED @IT RAE AUSE OF DISCRETION AOUNTINTO LAC OR ECESS OF URISDICTION% AND TERE IS NO APPEAL% OR AN PLAIN% SPEED ANDADEQUATE REED IN TE ORDINAR COURSE OF LA@&

6& @ETER TE INSTANT PETITION INOLES LEAL ISSUES AS @ELL&

7& @ETER ESTOPPEL OR LACES AS SET IN&B77

G.R. No. 5:;

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T* ,ea)'t3/ate% a+te, the CFI *+ R'Ma/% ,anh II ad3d'ated the (3et ),*)e,t'e( 'n +a-*, *+ the a))/'ant( 'n a De'('*ndated a4 "1% 1966 'n LRC N*& N#28$8% LRC Re& N*& N#18887 and e+*,e the de,ee( *+ ,e:'(t,at'*n .e,e at3a//4'((3ed% (a'd a))/'ant( (*/d the (3et ),*)e,t'e( t* E3:en'* L*)eM *n Se)tee, 2"% 1970& In the Deed *+ A(*/3teSa/e% the -end*,(#a))/'ant( */':ated the(e/-e( t* +'/e 'n the /and ,e:'(t,at'*n a(e the nee((a,4 *t'*n *,an'+e(tat'*n 'n *,de, that the e,t'+'ate( *+ t't/e .'// e '((3ed 'n the nae *+ E3:en'* L*)eM *, h'( (3e((*,(#'n#'nte,e(t& Un+*,t3nate/4% th'( */':at'*n .a( n*t *)/'ed .'th +*, (* an4 4ea,(& U)*n /ea,n'n: *+ th'( +at% the L*)eM he',(+'/ed the', Moon dad A-r/ 2?, 1997'n the /and ,e:'(t,at'*n a(e& Sa'd *t'*n *nta'ned the Deed *+ A(*/3te Sa/e and),a4ed that the de,ee( *+ ,e:'(t,at'*n *-e, the (3et ),*)e,t'e( e '((3ed 'n the nae( *+ the L*)eM he',(& At that t'e%LRC N*& N#28$8% LRC Re& N*& N#18887 .a( (t'// )end'n: e+*,e the RTC *+ Pa(': C't4% ,anh 1$2 a( the de,ee( *+,e:'(t,at'*n .e,e 4et t* e '((3ed de()'te the O,de, dated Ot*e, 20% 199! *+ the t,'a/ *3,t that d',eted the LRA t*),*eed .'th the '((3ane *+ the de,ee(&

@h'/e the *t'*n dated A),'/ 28% 1997 .a( )end'n: e+*,e the t,'a/ *3,t% De,ee N*(& N#2176!" and N#2176!! and OCTN*(& O#160" and O#160! .e,e '((3ed 'n the nae *+ the a))/'ant( Sand*-a/ and OMaeta and the', ,e()et'-e ()*3(e(&The L*)eM he',( then +'/ed a Moon dad No;3r 25, 199?% .h'h ),a4ed +*, the ann3/ent *+ De,ee N*(& N#2176!" and N#2176!! and OCT N*(& O#160" and O#160!& The '((3ane *+ (a'd de,ee( *+ ,e:'(t,at'*n and e,t'+'ate( *+t't/e a//e:ed/4 ),ee)ted the RTC *+ Pa(': C't4 'n ,e(*/-'n: the *t'*n dated A),'/ 28% 1997 and that the (ae .e,e'((3ed 4 the LRA 3nde, d3'*3( ',3(tane(&

On the ),e/''na,4 '((3e *+ (tand'n:% the C*3,t 3)h*/d( the 3d:ent *+ the C*3,t *+ A))ea/( that the L*)eM he',( d'd n*taG3',e /e:a/ (tand'n: a( )a,t'e(#/'t':ant( 'n the /and ,e:'(t,at'*n ),*eed'n:(& *.e-e,% )et't'*ne,( 3nden'a/4 ha-e a(ta

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The C*3,t *+ A))ea/( ad3d:ed that the L*)eM he',(W Moon dad No;3r 25, 199?.a( a *//ate,a/ atta< *n thee,t'+'ate( *+ t't/e *-e,'n: the (3et ),*)e,t'e(% .h'h '( ),*(,'ed 4 Set'*n !8 *+ P,e('dent'a/ De,ee N*&1$29&80In %armiento v. Court of Appeals%81.e d'++e,ent'ated a d',et atta< +,* a *//ate,a/ atta< *n the t't/e a( +*//*.(KAn at'*n '( deeed an atta< *n a t't/e .hen the *et *+ the at'*n *, ),*eed'n: '( t* n3//'+4 the t't/e% and th3(ha//en:e the 3d:ent )3,(3ant t* .h'h the t't/e .a( de,eed&T! aa= dr !n ! oH o4 ! aon oann/ or ad ! Hd83n, or nHon n4or3n. On ! o!r !and, ! aa= ndr or o//ara/!n, n an aon o oan a d44rn r/4, an aa= on ! Hd83n n;r!/ 3ad a an ndn!ro4.51mphasis ours% 'tat'*n( *'tted&The C*3,t *+ A))ea/(% h*.e-e,% *-e,/**

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@e d'(t'n:3'(h th'( a(e +,* 3,'(),3dene .h'h ,eG3',e the +'/'n: *+ a (e)a,ate '-'/ at'*n t* a3(e the ane//at'*n *,*,,et'*n *+ e,t'+'ate( *+ t't/e .he,e the ,e/'e+ ),a4ed +*, '( n*t :e,ane t* the /and ,e:'(t,at'*n ),*eed'n:( and ,eG3',e/'t':at'*n 'n an *,d'na,4 '-'/ a(e&82e,e% the ),e(ent *nt,*-e,(4 '( /ea,/4 a *nt'n3at'*n *+ the *,':'na/ /and ,e:'(t,at'*n),*eed'n:( a( 't 'n-*/-ed a e,e 'n'dent the,e'n& T* ,ea//% the L*)eM he',(W Moon dad A-r/ 2?, 19975.h'h (*3:htthe *n('de,at'*n *+ the (a/e *+ the (3et ),*)e,t'e( t* the', ),edee((*,#'n#'nte,e(t 'n the '((3ane *+ the de,ee( *+,e:'(t,at'*n .a( a//*.ed 3nde, Set'*n 22 *+ P,e('dent'a/ De,ee N*& 1$29 and .a( t'e/4 +'/ed 4orthe de,ee( *+,e:'(t,at'*n .e,e '((3ed& Indeed% the /and ,e:'(t,at'*n *3,t .a( (t'// hea,'n: (a'd *t'*n .hen the LRA '),*-'dent/4 and',,e:3/a,/4 '((3ed the de,ee( *+ ,e:'(t,at'*n and *,,e()*nd'n: e,t'+'ate( *+ t't/e *nta'n'n: )atent e,,*,( *n the', +ae&

The C*3,t '( a.a,e *+ 3,'(),3dent'a/ ,3/'n:( ,eG3','n: 3nan''t4 a*n: the )a,t'e( *, the /a< *+ (e,'*3( *et'*n *n the)a,t *+ an4 )a,t4 'n 'nte,e(t 3nde, Set'*n 108 *+ P,e('dent'a/ De,ee N*& 1$29 'n /':ht *+ the /''ted 3,'(d't'*n *+ /and,e:'(t,at'*n *3,t(&8"*.e-e,% .e a/(* ,3/ed 'n 8da. de Arceo v. Court ofAppeals8!thatK@e ha-e he/d that 3nde, Set'*n 2 *+ the P,*)e,t4 Re:'(t,at'*n De,ee% the 3,'(d't'*n *+ the Re:'*na/ T,'a/ C*3,t% ('tt'n:a( a /and ,e:'(t,at'*n *3,t% '( n* /*n:e, a( ',3(,'ed a( 't .a( 3nde, At N*& !96% the +*,e, /and ,e:'(t,at'*n /a.& @e(a'd that the De,ee ha( e/''nated the d'(t'nt'*n et.een the :ene,a/ 3,'(d't'*n -e(ted 'n the ,e:'*na/ t,'a/ *3,t andthe /''ted 3,'(d't'*n *n+e,,ed 3)*n 't 4 the +*,e, /a. .hen at'n: e,e/4 a( a ada(t,a/ *3,t& The aendent .a(aB'ed at a-*'d'n: 3/t')/''t4 *+ (3't(% the han:e ha( (')/'+'ed ,e:'(t,at'*n ),*eed'n:( 4 *n+e,,'n: 3)*n the,eG3',ed t,'a/ *3,t( the a3th*,'t4 t* at n*t *n/4 *n a))/'at'*n( +*, W*,':'na/ ,e:'(t,at'*nW 3t a/(* W*-e, a// )et't'*n( +'/eda+te, *,':'na/ ,e:'(t,at'*n *+ t't/e% .'th )*.e, t* hea, and dete,'ne a// G3e(t'*n( a,'('n: +,* (3h a))/'at'*n( *,)et't'*n(&W A an0 ra, !a; a/o ad !a ! /3d*Hrdon*r/ 8o;rnn8 /and r8raon or H o ro8nJd -on, o , 1 !r ! -ar 3a//0 a8rd or !a; ad n 3n8onro;ra/ 4or dr3naon@ 2 !r !0 !a; n 8;n 4// o--orn0 o -rn !r ;dn@and

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*,,et date( *+ '((3ane *+ the de,ee( .e,e (*et'e et.een A3:3(t 8 and 1"% 1998& Set'*n "1 *+ P,e('dent'a/De,ee N*& 1$29 d',et(% a*n: *the,(% that eB-e,4 de,ee *+ ,e:'(t,at'*n '((3ed 4 the C*'(('*ne, (ha// ea, thedate% h*3, and 'n3te *+ 't( ent,4 .h'/e Set'*n !0 'n t3,n ),*-'de( that the *,':'na/ e,t'+'ate *+ t't/e (ha// e ente,ed 'nthe Re:'(te, *+ Deed(WB ,e*,d **< and (ha// e n3e,ed% dated% (':ned and (ea/ed 4 the Re:'(te, *+ Deed( .'th the(ea/ *+ h'( *++'e +*, (Ba'd e,t'+'ate *+ t't/e (ha// ta

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.h'h the *.ne,(h') /a'( *+ the *ntend'n: )a,t'e( a4 e ),*)e,/4 hea,d and ad3d'ated& 92

In th'( a(e% the L*)eM he',( a,e ),e'(e/4 /a''n: *.ne,(h') *+ the (3et ),*)e,t'e( a( (3e((*,(#'n#'nte,e(t *+E3:en'* L*)eM& The4 ha-e ('ne an'+e(ted e+*,e the t,'a/ *3,t that E3:en'* L*)eM ),e-'*3(/4 *3:ht the (3et),*)e,t'e( +,* a'enda en't*% In& and E3:en'* L*)eM had een 'n )*((e(('*n the,e*+ e-en e+*,e the ee3t'*n *+the Deed *+ A(*/3te Sa/e et.een h' and the a))/'ant( Sand*-a/ and OMaeta& A))a,ent/4% the (3et ),*)e,t'e( a,ea/(* *-e,ed 4 TCT N*(& 2881"" and 2881"! *+ the Re:'(t,4 *+ Deed( *+ a,'

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In G.R. No. 155"5% the Pet't'*n +*, Re-'e. *n Certiorari'( GRANTED& The De'('*n dated an3a,4 22% 2002 and theRe(*/3t'*n dated Se)tee, 2!% 2002 *+ the C*3,t *+ A))ea/( 'n CA#&R& SP N*& $8162 a,e RE&ERSED& The O,de,dated a,h 2!% 2000 *+ the Re:'*na/ T,'a/ C*3,t 5RTC *+ Ant')*/* C't4% ,anh 7!% 'n LRC N*& 98#222$% .h'h d',etedthe '((3ane *+ a .,'t *+ )*((e(('*n '( NULLIFIEDand SET ASIDE& LRC N*& 98#222$ '( he,e4 DISMISSED& C*(t(a:a'n(t the ,e()*ndent(&

ARTICLES > 2176@ 21?"

G.R. No. 171127, Mar! 11, 2"15

NOEL CASUMPANG, RU) SANGA*MIRANDA AND SAN (UAN DE DIOS %OSPITAL % Petitioners% v.NELSONCORTE(O% Respondent&

BG.R. No. 171217

DRA. RU) SANGA*MIRANDA% Petitioner% v.NELSON CORTE(O% Respondent&

BG.R. No. 17122?

SAN (UAN DE DIOS %OSPITAL% Petitioner% v.NELSON CORTE(O% Respondent&

D E C I S I O N

RION, J.+

@e ,e(*/-e the th,ee 5" *n(*/'dated )et't'*n( +*, ,e-'e. *n certiorari1'n-*/-'n: ed'a/ ne:/':ene% **n/4 a((a'/'n:the Ot*e, 29% 200! de'('*n2and the an3a,4 12% 2006 ,e(*/3t'*n"*+ the C*3,t *+ A))ea/( 5CA 'n CA#&R& C N*&$6!00& Th'( CA de'('*n a++',ed en totothe ,3/'n: *+ the Re:'*na/ T,'a/ C*3,t 5R*C% ,anh 1"!% a

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D,& Ca(3)an: net -'('ted and ea'ned Ede, at 9K00 'n the *,n'n: the +*//*.'n: da4&1"St'// (3()''*3( a*3t h'((*nW( '//ne((% ,(& C*,te* a:a'n a//ed D,& Ca(3)an:W( attent'*n and (tated that Ede, had a +e-e,% th,*at ',,'tat'*n% a(.e// a( he(t and (t*ah )a'n& ,(& C*,te* a/(* a/e,ted D,& Ca(3)an: a*3t the t,ae( *+ /**d 'n Ede,W( ()3t3&De()'te the(e )'ee( *+ 'n+*,at'*n% h*.e-e,% D,& Ca(3)an: (')/4 n*dded% 'nG3',ed '+ Ede, ha( an a(tha% and,ea((3,ed ,(& C*,te* that Ede,W( '//ne(( '( ,*nh*)ne3*n'a&1!

At a,*3nd 11K"0 'n the *,n'n: *+ A),'/ 2"% 1988% Ede, -*'ted )h/e: .'th /**d (t,ea

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In ,3/'n: that the )et't'*n'n: d*t*,( .e,e ne:/':ent% the RTC +*3nd 3ntena/e the )et't'*n'n: d*t*,(W *ntent'*n thatEde,W( 'n't'a/ (4)t*( d'd n*t 'nd'ate den:3e +e-e,& It +a3/ted the +*, hea-'/4 ,e/4'n: *n the he(t #,a4 ,e(3/t and +*,n*t *n('de,'n: the *the, an'+e(tat'*n( that Ede,W( )a,ent( had ,e/a4ed& It he/d that 'n d'a:n*('n: and t,eat'n: an'//ne((% the )h4(''anW( *nd3t (h*3/d e 3d:ed n*t *n/4 4 .hat he=(he (a. and

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T! Pon

8. Dr. 3!#ump!"'=# 7o#itio" 2G.R. No. 5/554/6

D,& Ca(3)an: *ntend( that he :a-e h'( )at'ent ed'a/ t,eatent and a,e t* the e(t *+ h'( a'/'t'e(% and .'th'n the),*)e, (tanda,d *+ a,e ,eG3',ed +,* )h4(''an( 3nde, (''/a, ',3(tane(& e /a'( that h'( 'n't'a/ d'a:n*('( *+,*nh*)ne3*n'a .a( (3))*,ted 4 the he(t #,a4 ,e(3/t&

D,& Ca(3)an: a/(* *ntend( that den:3e +e-e, *3,( *n/4 a+te, (e-e,a/ da4( *+ *n+'neent& e a//e:ed that .hen hehad (3()eted that Ede, ':ht e (3++e,'n: +,* den:3e +e-e,% he 'ed'ate/4 attended and t,eated h'&

D,& Ca(3)an: /'

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La(t/4% SD a'nta'n( that the )et't'*n'n: d*t*,( a,,'-ed at an 'nte//':ent/4 ded3ed and *,,et d'a:n*('(& It /a'ed thata(ed *n Ede,W( (':n( and (4)t*( at the t'e *+ ad'(('*n 5 i.e. one day fever%28&acterial infection29and lac' ofhemorrhagic manifestations"0% the,e .a( n* ,ea(*na/e 'nd'at'*n 4et that he .a( (3++e,'n: +,* den:3e +e-e,% anda*,d'n:/4% the', +a'/3,e t* d'a:n*(e den:3e +e-e,% d*e( n*t *n(t't3te ne:/':ene *n the', )a,t&

T! Ca 4or ! R-ondn

In h'( *ent% the ,e()*ndent (3't( that the '((3e( the )et't'*ne,( ,a'(ed a,e a'n/4 +at3a/ 'n nat3,e% .h'h a )et't'*n+*, ,e-'e. *n certiorari3nde, R3/e !$ *+ the R3/e( *+ C*3,t d*e( n*t a//*.&

In an4 a(e% he *ntend( that the )et't'*n'n: d*t*,( .e,e ne:/':ent 'n *nd3t'n: the', ed'a/ ea'nat'*n andd'a:n*('( a(ed *n the +*//*.'n:K 51 the )et't'*n'n: d*t*,( +a'/ed t* t'e/4 d'a:n*(e Ede,W( *,,et '//ne(( d3e t* the',n*n#*(e,-ane *+ the ),*)e, and ae)ta/e (tanda,d *+ ed'a/ ea'nat'*n; 52 the )et't'*n'n: d*t*,(W ed'a/ea'nat'*n .a( n*t *),ehen('-e% a( the4 .e,e a/.a4( 'n a ,3(h; and 5" the )et't'*n'n: d*t*,( e)/*4ed a :3e(('n::ae 'n d'a:n*('n: ,*nh*)ne3*n'a&

The ,e()*ndent a/(* a//e:e( that the,e '( a a3(a/ *nnet'*n et.een the )et't'*n'n: d*t*,(W ne:/':ene and Ede,W(3nt'e/4 death% .a,,ant'n: the /a' +*, daa:e(&

The ,e()*ndent% t**% a((e,ted that SD '( a/(* ne:/':ent ea3(e 't .a( n*t eG3'))ed .'th ),*)e, )a:'n: (4(te% ha(n* ,*nh*(*)e% and 't( d*t*,( a,e n*t ),*)*,t'*nate t* the n3e, *+ 't( )at'ent(& e a/(* )*'nted *3t that *3t *+ the(e-en ,e('dent )h4(''an( 'n the h*()'ta/% *n/4 t.* ,e('dent )h4(''an( .e,e d*'n: ,*3nd( at the t'e *+ h'( (*nW(*n+'neent&

T! I

The a(e ),e(ent( t* 3( the +*//*.'n: '((3e(K

1& @hethe, *, n*t the )et't'*n'n: d*t*,( had *'tted 'ne3(a/e /a< *+ ),ea3t'*n 'n d'a:n*('n: and 'nt,eat'n: the )at'ent;

2& @hethe, *, n*t the )et't'*ne, h*()'ta/ '( (*/'da,'t4 /'a/e .'th the )et't'*n'n: d*t*,(;

"& @hethe, *, n*t the,e '( a a3(a/ *nnet'*n et.een the )et't'*ne,(W ne:/':ent at=*'(('*n and the )at'entW(,e(3/t'n: death; and

!& @hethe, *, n*t the /*.e, *3,t( e,,ed 'n *n('de,'n: D,& R*d*/+* Taan:*,a a3d'an a( an e)e,t .'tne((&

Or R/n8

$ 4nd ! -on -ar/0 3roro.

A 7etitio" for Re)iew o" 3ertior!ri u"der Rule ;- of the Rule# of 3ourt i# 1imited to >ue#tio"# of 1!w.

The (ett/ed ,3/e '( that the C*3,tW( 3,'(d't'*n 'n a )et't'*n +*, ,e-'e. *n certiorari3nde, R3/e !$ *+ the R3/e( *+ C*3,t '(/''ted *n/4 t* the ,e-'e. *+ )3,e G3e(t'*n( *+ /a.& It '( n*t the C*3,tW( +3nt'*n t* 'nG3',e *n the -e,a't4 *+ the a))e//ate*3,tW( +at3a/ +'nd'n:( and *n/3('*n(; th'( C*3,t '( n*t a t,'e, *+ +at(& "1

A G3e(t'*n *+ /a. a,'(e( .hen the,e '( d*3t a( t* .hat the /a. '( *n a e,ta'n (tate *+ +at(% .h'/e the,e '( a G3e(t'*n *+

+at .hen the d*3t a,'(e( a( t* the t,3th *, +a/('t4 *+ the a//e:ed +at(&"2

The(e *n(*/'dated )et't'*n( e+*,e 3( 'n-*/-e 3d on o4 4a and /a& A( a ,3/e% .e d* n*t ,e(*/-e G3e(t'*n(*+ +at& *.e-e,% 'n dete,'n'n: the /e:a/ G3e(t'*n *+ .hethe, the ,e()*ndent '( ent't/ed t* /a' daa:e( 3nde, A,t'/e2176 *+ the C'-'/ C*de +*, the )et't'*ne,(W a//e:ed ed'a/ a/),at'e% the dete,'nat'*n *+ the +at3a/ '((3e( # i.e.whether the petitioning doctors were grossly negligent in diagnosing the patient>s illness whether there is causal relation&etween the petitioners> act;omission and the patient>s resulting death and whether /r. 4audian is qualified as an e(pertwitness# 3(t nee((a,'/4 e ,e(*/-ed& @e ,e(*/-e the(e +at3a/ G3e(t'*n( (*/e/4 +*, the )3,)*(e *+ dete,'n'n: the /e:a/'((3e( ,a'(ed&

&edic!l &!lpr!ctice Suit !# ! Speci!li?ed Are! of Tort 1!w

The /a' +*, daa:e( '( a(ed *n the )et't'*n'n: d*t*,(W ne:/':ene 'n d'a:n*('n: and t,eat'n: the deea(ed Ede,%

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the h'/d *+ the ,e()*ndent& It '( a medic!l m!lpr!ctice #uit% an at'*n a-a'/a/e t* -'t'( t* ,ed,e(( a .,*n: *'tted4 ed'a/ ),*+e(('*na/( .h* a3(ed *d'/4 ha, t*% *, the death *+% a )at'ent& ""A( the te, '( 3(ed% the (3't '( ,*3:ht.hene-e, a ed'a/ ),at't'*ne, *, hea/th a,e ),*-'de, +a'/( t* eet the (tanda,d( deanded 4 h'( ),*+e(('*n% *,de-'ate( +,* th'( (tanda,d% and a3(e( 'n3,4 t* the )at'ent&

T* (3e((+3//4 )3,(3e a ed'a/ a/),at'e (3't% the )/a'nt'++ 5in this case the deceased patient>s heir 3(t ),*-e thatthe d*t*, e'the, +a'/ed t* d* .hat a ,ea(*na/4 ),3dent d*t*, .*3/d ha-e d*ne% *, d'd .hat a ,ea(*na/4 ),3dent d*t*,.*3/d n*t ha-e d*ne; and the at *, *'(('*n had a3(ed 'n3,4 t* the )at'ent& "!The )at'entW( he',=( ea,( the 3,den *+),*-'n: h'(=he, a3(e *+ at'*n&

The Eleme"t# of ! &edic!l &!lpr!ctice Suit

The e/eent( *+ ed'a/ ne:/':ene a,eK 1 d0@ 2 ra!@

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April 9: 7F% and 'n *th 'n(tane(% (he ),e(,'ed t,eatent and )a,t'')ated 'n the d'a:n*('( *+ Ede,W( ed'a/*nd't'*n& e, a++',at'-e at( a*3nted t* he, ae)tane *+ the )h4(''an#)at'ent ,e/at'*n(h')% and 'n'denta//4% the /e:a/d3t4 *+ a,e that .ent .'th 't&

In 4arcia 4r. v. People of the Philippines%!6the C*3,t +*3nd the d*t*,( .h* e,e/4 )a((ed 4 and .e,e ,eG3e(ted t*attend t* the )at'ent% /'a/e +*, ed'a/ a/),at'e& It he/d that a )h4(''an#)at'ent ,e/at'*n(h') .a( e(ta/'(hed .hen the4ea'ned the )at'ent% and /ate, a((3,ed the *the, that e-e,4th'n: .a( +'ne&

In the 2% case of 0ead v. Legacy -ealth %ystem%!7the C*3,t a/(* *n('de,ed the ,ende,'n: *+ an *)'n'*n 'n the *3,(e *+the )at'entW( a,e a( the d*t*,W( a((ent t* the )h4(''an#)at'ent ,e/at'*n(h')& It ,3/ed that the ,e/at'*n(h') .a( +*,edea3(e *+ the d*t*,W( a++',at'-e at'*n&

L'

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It .'// e ,ea//ed that d3,'n: D,& Ca(3)an:W( +',(t and (e*nd -'('t( t* Ede,% he a/,ead4 had

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S':n'+'ant/4% 't .a( *n/4 at a,*3nd $K00 'n the a+te,n**n *+ A),'/ 2"% 1988 5a+te, Ede,W( th',d e)'(*de *+ /eed'n: that D,&Ca(3)an: *,de,ed the *nd3t *+ hematocrit hemoglo&in &lood typing &lood transfusion and tourniquet tests& The(ete(t( ae t** /ate% a( ),*-en 4K 51 the /**d te(t ,e(3/t( that ae at a*3t 6K00 'n the e-en'n:% *n+','n: thatEde,W( '//ne(( had de-e/*)ed t* /engue -emorrhagic $ever and 52 D,& a3d'anW( te(t'*n4 that dengue fever couldhave &een detected earlier than D=:E in the evening of April 9: 7F &ecause the symptoms were already evident&62

In %pouses $lores v. %pouses Pineda%6"a a(e 'n-*/-'n: a ed'a/ a/),at'e (3't% the C*3,t ,3/ed that the )et't'*ne,d*t*,( .e,e ne:/':ent ea3(e the4 +a'/ed t* 'ed'ate/4 *,de, te(t( t* *n+', the )at'entW( '//ne((& De()'te the d*t*,(W(3()''*n that the )at'ent *3/d e (3++e,'n: +,* d'aete(% the +*,e, (t'// ),*eeded t* the DC *)e,at'*n& In that a(e%e)e,t te(t'*n4 (h*.ed that te(t( (h*3/d ha-e een *,de,ed 'ed'ate/4 *n ad'(('*n t* the h*()'ta/ 'n -'e. *+ the(4)t*( ),e(ented& The C*3,t he/dK@hen a )at'ent eh''t( (4)t*( t4)'a/ *+ a )a,t'3/a, d'(ea(e% the(e (4)t*( (h*3/d% at the -e,4 /ea(t% a/e,t the)h4(''an *+ the )*((''/'t4 that the )at'ent a4 e a++/'ted .'th the (3()eted d'(ea(e&The C*3,t a/(* ,3/ed that ,ea(*na/e ),3dene .*3/d ha-e (h*.n that d'aete( and 't( *)/'at'*n( .e,e +*,e(eea/eha,& *.e-e,% the )et't'*ne, d*t*,( +a'/ed t* ta

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)h4('a/ ea'nat'*n&

D,& Ca(3)an:W( te(t'*n4 (tate(KQK N*.% a+te, ente,ta'n'n: # A+te, *n('de,'n: that the )at'ent Ede, C*,te,* .a( a/,ead4 (3++e,'n: +,* den:3e

he*,,ha:' +e-e,% .hat d'd 4*3 d*% '+ an4A+ $ ordrd /o 3onorn8 o4 ! /ood -rr, ! arda ra and r-raor0 ra o4 ! -an.QK N*.% .a( 4*3, 'n(t,3t'*n( a,,'ed *nAK e(% (',&QK @hat .a( the /**d ),e((3,e *+ the )at'entAK D3,'n: th*(e t'e(% the /**d ),e((3,e *+ the )at'ent .a( e-en n*,a/ d3,'n: th*(e t'e(&QK *. a*3t the ,e()',at*,4 ,ateAK The ,e()',at*,4 ,ate .a( +a(t ea3(e the )at'ent 'n the e:'nn'n: ('ne ad'(('*n had d'++'3/t4 'n ,eath'n:&Q+ T!n, a4r !a, !a dd 0o do ! ! -an DoorA+ $ ran4d -/a/ onnra and a ! a3 3, 3onor B#ic ! -an.Q+ T!n, !o 3onor B#ic ! -anA+ T! -dar rdn on d0 a !a 3.QK N*.% .hat ha))ened a+te, thatQK @h'/e *n't*,'n: the )at'ent% a// h'( -'ta/ (':n( .e,e ZZZZZZZZ; h'( /**d ),e((3,e .a( n*,a/ (* .e *nt'n3ed .'th

the (3))*,t'-e ana:eent at that t'e&QK N*.% a+te, thatAK In the e-en'n: *+ A),'/ 2"% 1988%1 (ta4ed 'n the h*()'ta/ and I .a( 'n+*,ed 4 the )ed'at,' ,e('dent *n d3t4 at

a,*3nd 11K1$ 'n the e-en'n: that the /**d ),e((3,e *+ the )at'ent .ent d*.n t* &60 )a/)at*,4&Q+ $!a dd 0o do -on r- o4 !a n4or3aon

A+ I 33da/0 n - o ! roo3 o4 ! -an and !an8d ! I& 4/d 4ro3 ! -rn 4/d !!a D5 ".< od3 !/ord o /aad rn8r o/on.

Q+ )o 3an o a0 0o nrad ! dn8 B#ic o4 ! nr;n B#ic 4/dA+ $ !an8d ! I& 4/d a /aad rn8r a nar0 o r3 ! ;o/3 and o rn8 a=

! /ood -rr, o nra ! /ood -rr.1mphasis suppliedBA/th*3:h D,& Ca(3)an: ),e(ented the te(t'*n'e( *+ D,& R*d*/+* a:*na) and D,& E//e.e/4n Pa('*n 5/r. Pasion%Pe,(*nne/ O++'e, and ed'a/ D',et*, *+ SD% ,e()et'-e/4 a( .e// a( the te(t'*n'e( *+ D,& L'-e/* and D,& Re4e( 5the,ad'*/*:'(t .h* ,ead Ede,W( he(t #,a4 ,e(3/t% the(e .'tne((e( +a'/ed t* d'()3te the (tanda,d *+ at'*n that D,& a3d'ane(ta/'(hed 'n h'( e)e,t *)'n'*n& @e ann*t *n('de, the e)e,t .'tne((e( e'the, +*, the (*/e ,ea(*n that the4 d'd n*tte(t'+4 *n the (tanda,d *+ a,e 'n den:3e a(e(&69

On the .h*/e% a+te, ea'n'n: the t*ta/'t4 *+ the add3ed e-'dene% .e +'nd that the /*.e, *3,t( *,,et/4 d'd n*t ,e/4 *nD,& Ca(3)an:W( /a' that he ee,'(ed ),3dene and d3e d'/':ene 'n hand/'n: Ede,W( a(e& A('de +,* e'n: (e/+#

(e,-'n:% h'( /a' '( n*t (3))*,ted 4 *)etent e-'dene& A( the /*.e, *3,t( d'd% .e ,e/4 *n the 3n*nt,*-e,ted +at thathe +a'/ed% a( a ed'a/ ),*+e(('*na/% t* *(e,-e the *(t ),3dent ed'a/ ),*ed3,e 3nde, the ',3(tane( 'nd'a:n*('n: and t,eat'n: Ede,&

Dr. &ir!"d! i# Not 1i!ble for Ne'li'e"ce

In *n('de,'n: the a(e *+ D,& ',anda% the 3n'*, ,e('dent )h4(''an .h* .a( *n#d3t4 at the t'e *+ Ede,W( *n+'neent%.e (ee the need t* d,a. d'(t'nt'*n( et.een the ,e()*n(''/'t'e( and *,,e()*nd'n: /'a'/'t4 *+ D,& Ca(3)an:% a( theattend'n: )h4(''an% and that *+ D,& ',anda&

In h'( te(t'*n4% D,& Pa('*n de/a,ed that ,e('dent a))/'ant( a,e :ene,a//4 d*t*,( *+ ed''ne /'en(ed t* ),at'e 'n thePh'/'))'ne( and .h* .*3/d /'

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In 4en'ins v. Clar'%77the Oh'* C*3,t *+ A))ea/( he/d that the a))/'a/e (tanda,d *+ a,e 'n ed'a/ a/),at'e a(e('n-*/-'n: +',(t#4ea, ,e('dent( .a( that *+ a ,ea(*na/4 ),3dent )h4(''an and n*t that *+ 'nte,n(& A*,d'n: t* 4en'insKIt '( /ea, that the (tanda,d *+ a,e ,eG3',ed *+ )h4(''an( '( n*t an 'nd'-'d3a/'Med *ne 3t *+ )h4(''an( 'n :ene,a/ 'n the*3n't4& In *,de, t* e(ta/'(h ed'a/ a/),at'e% 't 3(t e (h*.n 4 a ),e)*nde,ane *+ the e-'dene that a)h4(''an d'd (*e )a,t'3/a, th'n: *, th'n:( that a )h4(''an *, (3,:e*n *+ *,d'na,4 (

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8n o4 an0 o!r //n a !a 3.8"

a(ed *n he, (tateent( .e +'nd that D,& ',anda .a( n*t ent',e/4 +a3/t/e((& N;r!/, !r 4a/r o drn !3-or o4 Ed3rK ond /dn8 do no nar/0 a3on o n8/8na( the ,e()*ndent h'(e/+ ad'ttedthat D,& ',anda +a'/ed t* ea'ne the /**d ()e'en ea3(e he .a(hed 't a.a4& In add't'*n% *n('de,'n: the d'a:n*('(),e-'*3(/4 ade 4 t.* d*t*,(% and the 3n*nt,*-e,ted +at that the 3,den *+ +'na/ d'a:n*('( )e,ta'n( t* the attend'n:)h4(''an 5in this case /r. Casumpang% .e e/'e-e that D,& ',andaW( e,,*, .a( e,e/4 an h*ne(t '(ta

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de+''t( 'n a )*(t#/a'net*4 )at'ent& A( (tated a*-e% the,e .a( n* '((3e a( t* the ),*)e, ee3t'*n *+ the ne3,*(3,:e,4The ed'a/ te(t'*n4 (3))*,ted )/a'nt'++(W the*,4 *+ ne:/':ene and a3(at'*n& 5Citations omittedIn an*the, a(e%90the *3,t de/a,ed that 't '( the -a/K =no/d8 o4 ! r H 3ar, ra!r !an!'!r -a/0 !a dr3n !'!r a/4aon o 40&

A/(* 'n 1vans v. 3hanesian%91the *3,t (et a :3'de/'ne 'n G3a/'+4'n: an e)e,t .'tne((KT* G3a/'+4 a .'tne(( a( a ed'a/ e)e,t% 't 3(t e (h*.n that the .'tne(( 1 !a ! rrd -ro4ona/=no/d8, /arnn8 and =// o4 ! H ndr nr0 44n o a/40 !3 o -a= ! a!or0 on !H@ and 2 4a3/ar ! ! andard rrd o4 a -!0an ndr 3/ar r3an@.he,e a .'tne((ha( d'(/*(ed (3++''ent

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Sh*

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n8/8n a an 3-/o0 or a8n o4 ! !o-a/@ 2 !r ! a o4 ! a8n ra ! a--aran o4a!or0, ! -/an44 3 a/o -ro; !a ! !o-a/ !ad =no/d8 o4 and ad n !3@ and s manifestationsand#eco"d% the patient>s reliance&

a. -ospital>s manifestations

It 'n-*/-e( an 'nG3',4 *n .hethe, the h*()'ta/ ated 'n a anne, that .*3/d /ead a ,ea(*na/e )e,(*n t* *n/3de that the

'nd'-'d3a/ a//e:ed t* e ne:/':ent .a( an e)/*4ee *, a:ent *+ the h*()'ta/& A( )*'nted *3t 'n Nogales% the h*()'ta/ needn*t a

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S':n'+'ant/4% the ,e()*ndent had ,e/'ed *n SDW( ,e),e(entat'*n *+ D,& Ca(3)an:W( a3th*,'t4& T* ,ea//% .hen ,(&C*,te* ),e(ented he, F*,t3ne Ca,e a,d% (he .a( 'n't'a//4 ,e+e,,ed t* the F*,t3ne Ca,e **,d'nat*,% .h* .a( then *3t *+t*.n& She .a( the,ea+te, ,e+e,,ed t* D,& Ca(3)an:% .h* '( a/(* a,ed'ted .'th F*,t3ne Ca,e& In *th 'n(tane(% SDth,*3:h 't( a:ent +a'/ed t* ad-'(e ,(& C*,te* that D,& Ca(3)an: '( an 'nde)endent *nt,at*,&

,(& C*,te* ae)ted D,& Ca(3)an:W( (e,-'e( *n the ,ea(*na/e e/'e+ that (3h .e,e e'n: ),*-'ded 4 SD *, 't(e)/*4ee(% a:ent(% *, (e,-ant(& 0 r4rrn8 Dr. Ca3-an8 o ar and ra 4or Ed3r, S(D% 3-/d/0 !/d oDr. Ca3-an8, no on/0 a an ardd 33r o4 Forn Car, a/o a a 33r o4 3da/ a44&SD ann*t n*. d'(/a' /'a'/'t4 ('ne the,e '( n* (h*.'n: that ,(& C*,te* *, the ,e()*ndent

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3. PN N*& CLF $#9"% dated Fe,3a,4 26% 1991% +*, a /*an ),'n')a/ *+ P1%"00%000&00% .'th 'nte,e(t at 22&$ perannum; *n/4 E(tan'(/a* S'naan (':ned a( (*/'da,4 *#a

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LESSK ID PRICE ,6"","""."" ###################

RAND TOTAL ################################################ 1,75?,27.?71"

On the a('( *+ the a*-e (tateent *+ a*3nt% and )3,(3ant t* the ),*'((*,4 n*te(% Ch'naan< 'n(t't3ted et,a3d''a/+*,e/*(3,e ),*eed'n:( a:a'n(t the *,t:a:e (e3,'t4& The +*,e/*(3,e (a/e .a( he/d *n a4 18% 1998% .'th Ch'naan