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G.R. NO. 133576

Viewmaster Construction Corporation

State Investment Trust Inc. where roxas is a
First Metro Investments inc (FMIC) lender
Allen Roxas Lendee

defendant to respect and not to violate such right; and (c)

an act or omission on the part of the defendant constituting
a violation of the plaintiffs right or breach of the obligation
of the defendant to the plaintiff. Briefly stated, it is the
reason why the litigation has come about; it is the act or
omission of the defendant resulting in the violation of
someones right.
`In determining the existence of a cause of action, only the
statements in the complaint may properly be considered.
Lack of cause of action must appear on the face of the
complaint and its existence may be determined only by the
allegations of the complaint, consideration of other facts
being proscribed and any attempt to prove extraneous
circumstances not being allowed.

Allen Roxas applied for a loan with FMIC in order to
obtain funds to be used to bid for the control and ownership
of State Investment where Viewmaster acted as guarantor.
Roxas entered with Viewmaster upon the following
conditions: (1) 50% of stock shall be sold to viewmaster (2)
development of certain parcel of lands.
FMIC granted the loan. Despite demand by viewmaster,
Roxas failed and refused to comply with such conditions.
Petitioner complaint before the RTC for issuance of
TRO/writ of preliminary injunction.
Respondent Motion to dismiss due to lack of cause of
RTC in favor of viewmaster. Reversed by CA. hence the
ISSUE: WON Petitioners complaint does not state cause of
YES. The test of determining the sufficiency of the
statements in a complaint as setting forth a cause of action
is enunciated in the case of Fil-Estate Golf and
Development, Inc. vs. Court of Appeals,13 to wit:
"In determining whether or not a complaint states a cause
of action, only the allegations in the complaint must be
considered. Thus, in the recent case of Navoa v. Court of
Appeals (251 SCRA 545), we held as follows:
`A cause of action is the fact or combination of facts which
affords a party a right to judicial interference in his behalf.
The requisites for a cause of action are: (a) a right in favor
of the plaintiff by whatever means and under whatever law
it arises or is created, (b) an obligation on the part of the

In the case at bar, since neither of the parties has fully

performed their obligations within the one-year period, i.e.,
Allen Roxas has not sold fifty percent (50%) of his
shareholdings in State Investment to Viewmaster and
Viewmaster has not paid the purchase price for the
aforesaid shares of stock, nor began the co-development of
the two subject real properties, then it behooves this Court
to declare that the case falls within the coverage of the
Statute of Frauds.