ALDERSGATE COLLEGE INC., et al v. JUNIFEN F.

GAUUAN et al

GR No. 192951 | Nov 14, 2012

DOCTRINE OF THE CASE: A motion to dismiss is a prohibited pleading in cases which involve an
intra-corporate dispute.
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PERLAS-BERNABE, J.

FACTS: Petitioners filed a case against the respondents before the SEC. When the SEC was
reorganized pursuant to R.A. 8799, the case was transferred to the RTC. A Pre-Trial Order was
issued and provided several issues such as whether the withdrawals and disbursements are in
accordance with the By-Laws; whether there was a complete, audited report and accounting of
all the corporate funds; whether respondents are liable to indemnify the school for all sums of
money withdrawn and paid for without the approval and counter-signature of the chairman;
whether there was a demand of a right of inspection and a refusal to allow inspection and which
of the contending trustees and officers are legally elected in accordance with the By-Laws.
Respondents filed a motion to dismiss the complaint but such was denied. Respondents also
sought the dismissal of the complaint in their Answer-in-Intervention with Motion to Dismiss.
RTC again brushed it aside. Then the respondents again filed a Motion to Withdraw and/or to
Dismiss Case. They claim that the incumbent members of the Board of Trustees of petitioner
had recently passed a resolution which sought the dismissal and/or withdrawal of the case. RTC
granted the motion on the basis of such Board of Trustees’ resolution.

ISSUE: Whether the RTC erred in dismissing the case.

HELD:
Yes. RTC should not have entertained the subject motion to dismiss
Under Section 8, Rule 1 of the Interim Rules of Procedure for Intra-Corporate Controversies, a motion
to dismiss is a prohibited pleading. As this case involves an intra-corporate dispute, the motion to
dismiss is undeniably a prohibited pleading.

SUMMARY FORMAT

Q: Respondents filed a motion to dismiss the complaint filed against them where some of the issues
include whether the withdrawals and disbursements are in accordance with the By-Laws and
whether there was a complete, audited report and accounting of all the corporate funds. The RTC
dismissed the case. Is the RTC correct?

A: No. Based on Section 8, Rule 1 of the Interim Rules of Procedure for Intra-Corporate
Controversies, in cases involving an intra-corporate dispute, a motion to dismiss is a prohibited
pleading.