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VS
UCPB
FACTS:
FACTOR, J.V.B.
Remedial Law Review I
1
Judge Eleuterio Bathan
ISSUES:
Whether or not Petition for Certiorari under Rule 65 is the proper recourse of
Unialloy
II
Whether or not the dismissal of UniAlloys main action carries with it the dissolution
of any ancillary relief previously granted therein
III
Whether or not the Court of Appeals CDO erred in affirming the dismissal of the
Unialloys complaint on the grounds of improper venue, forum-shopping, and for
being a harassment suit
HELD:
Under Section 1 of Rule 16, the grounds for Motion to Dismiss is enumerated. Except
for cases falling under f, h, or I of the said section, the dismissal of an action is
without prejudice and does not preclude the refilling of the same action. And, under
Section 1 (g) of Rule 41, an order dismissing an action without prejudice is not
appealable. The proper remedy therefrom is a special civil action for certiorari under
Rule 65.
If the reason for the dismissal is based on paragraphs f, h, or I, the dismissal under
Section 5 of Rule 16 is with prejudice, and the remedy of the aggrieved party is to
appeal the order granting the motion to dismiss.
Hence, the since the dismissal of Unialloys complaint was without prejudice, the
remedy then available to Unialloy was a Rule 65 petition.
II. The dismissal of Unialloys main action carries with it the dissolution of
any ancillary relief previously granted therein
Provisional remedies (also known as ancillary or auxiliary remedies), are writs and
processes available during the pendency of the action which may be resorted to by a
litigant to preserve and protect certain rights and interests pending rendition, and
for purposes of the ultimate effects, of a final judgment in the case. They are
provisional because they constitute temporary measure availed of during the
pendency of the action, and they are ancillary because they are mere incidents in and
are dependent upon the result of the main action.
The main action for injunction is distinct form the provisional or ancillary remedy of
preliminary injunction which cannot exist except only as part or an incident of an
independent action or proceeding. As a matter of course, in an action for injunction,
the auxiliary remedy of preliminary injunction, whether prohibitory or mandatory,
may issue. Under the law, the main action for injunction seeks a judgment
embodying a final injunction which is distinct from, and should not be confused
with, the provisional remedy of preliminary injunction, the sole object of which is to
preserve the status quo until the merits can be heard. A preliminary injunction is
granted at any stage of an action or proceeding prior to the judgment or final order.
It persists until it is dissolved or until the termination of the action without the court
issuing a final injunction.
FACTOR, J.V.B.
Remedial Law Review I
2
Judge Eleuterio Bathan
Based on the foregoing, it is clear that the decision of CA CDO dismissing Unialloys
petition for certiorari and mandamus effectively superseded the resolution of the CA
Manila granting the Unialloys ancillary prayer for the issuance of a writ of
preliminary injunction.
A borne out by the records of the case, UCPB was already in actual possession of the
litigated premises prior to the filing of the complaint. This conforms with the finding
of the CA CDO which pronounced that an actual turnover of the premises prior to the
institution of the complaint was effected. It was only by virtue of the 72-hour TRO
which enable the regaining of the possession of Unialloy. After the issuance of the
RTCs order dismissing the complaint of Unialloy, the issued 72-hour TRO and order
to maintain status quo, which are both mere incidents of tha main action, lost their
efficacy.
One of the inevitable consequences of the dismissal of the main action is the
dissolution of the ancillary relief granted therein.
III. The Court of Appeals CDO did not err in affirming the dismissal of
Unialloys complaint on the grounds of improper venue, forum-shopping
and for being a harassment suit
Nevertheless, the parties may agree in writing to limit the venue of future actions
between them to a specified place.
Unialloy insisted that the subject matter of its complaint is not the LPA but the
fictitious loans. Its complaint sought to declare as null and void the unilateral
rescission made by defendant UCPB of its subsisting LPA with Unialloy. What
UCPB unilaterally rescinded is the LPA ad without it there can be no unilateral
rescission to speak of. Hence, the LPA is the subject matter of the complaint.
Moreover, and to paraphrase the aforecited paragraph 18 of the LPA, as long as
the controversy arises out of or is connected therewith, any legal action should
be filed exclusively before the proper courts of Makati City. Thus, even assuming
that the LPA is not the main subject matter, considering that what is being
sought to be annulled is an act connected and inseparably related thereto, the
Complaint should have been filed before the proper courts in Makati City.
With regard to the forum-shopping, the review of the case revealed that it did not
disclose in the verification that there is a pending case. The trial court took
judicial notice of its pendency as said case is also assigned and pending before
it. The two civil cases have identical causes, subject matter, and issues.
FACTOR, J.V.B.
Remedial Law Review I
3
Judge Eleuterio Bathan