Sehwani vs. In-N-Out Burger

SEHWANI, INCORPORATED and/or BENITAS FRITES, INC. V. IN-N-OUT BURGER, INC.
G.R. No. 171053, October 15, 2007, YNARES-SANTIAGO, J.
Facts:
IN-N-OUT Burger, Inc., a foreign corporation organized under the laws of California,
U.S.A., and not doing business in the Philippines, filed before the Bureau of Legal Affairs of
the IPO (BLA-IPO), an administrative complaint against petitioners Sehwani, Inc. and Benitas
Frites, Inc. for violation of intellectual property rights. On December 22, 2003, Bureau
Director rendered decision finding that IN-N-OUT Burger, Inc. has the legal capacity to sue
and that it is the owner of the internationally well-known trademarks; however, it was held
that Sehwani, Inc. and Benitas Frites are not guilty of unfair competition. Sehwani, Inc. and
Benitas Frites, Inc filed a motion for reconsideration while IN-N-OUT Burger, Inc. moved for
partial reconsideration assailing the finding that petitioners are not guilty of unfair
competition. Both, however, were denied in Resolution No. 2004-18 dated October 28, 2004
and Resolution No. 2005-05 dated April 25, 2005, respectively. On separate dates, the
parties appealed to the Office of the Director General which rendered an order in dismissing
petitioners appeal for being filed out of time. Aggrieved, Sehwani, Inc. and Benitas Frites, Inc
filed a petition before the Court of Appeals which was dismissed for lack of merit. It held that
the right to appeal is not a natural right or a part of due process, but a procedural remedy of
statutory origin, hence, its requirements must be strictly complied with. The appeal being
filed out of time, the December 22, 2003 Decision and the October 28, 2004 Orders of
Bureau Director Beltran-Abelardo are now final and executory.
Issue:
Whether or not the subject oders are already final and executory.
Ruling:
YES. The Court has invariably ruled that perfection of an appeal within the statutory
or reglementary period is not only mandatory but also jurisdictional; failure to do so renders
the questioned decision/final order final and executory, and deprives the appellate court of
jurisdiction to alter the judgment or final order, much less to entertain the appeal. True, this
rule had been relaxed but only in highly meritorious cases to prevent a grave injustice from
being done. Such does not obtain in this case.
The Court of Appeals, correctly held that the appeal must be dismissed
outright. Section 2 of the Uniform Rules on Appeal (Office Order no. 12, s. 2002) states that:
Section 2. Appeal to the Director General. The decisions or final

orders of the Bureau Director shall become final and executory thirty (30)
days after receipt of a copy thereof by the appellant or appellants unless,
within the same period, a motion for reconsideration is filed with the Bureau
Director or an appeal to the Director General has been perfected; Provided,
that only one (1) motion for reconsideration of the decision or order of the
Bureau Director shall be allowed, and, in case the motion for reconsideration
is denied, the appellant or appellants has/have the balance of the period
prescribed above within which to file the appeal.
Considering that the Respondent-Appellants received a copy of the

appealed Decision on 15 January 2004 and filed their MOTION FOR
RECONSIDERATION on 30 January 2004, said parties had a balance of 15
days from their receipt of the Resolution denying said motion within which to
file the APPEAL MEMORANDUM. Per records of the Bureau of Legal Affairs, the
Respondents-Appellants received a copy of the Resolution on 29 October
2004. Hence the deadline for the filing of the APPEAL MEMORANDUM was
on 13 November 2004. Since said date fell on a Saturday, the appeal should
have been filed on the ensuing working day, that is, 15 November 2004.
On this score, Section 5(c) of the Uniform Rules on Appeal provides:
Section 5. Action on the Appeal Memorandum The Director General shall:
xxxx
c) Dismiss the appeal for being patently without merit, provided that the
dismissal shall be outright if the appeal is not filed within the prescribed
period or for failure of the appellant to pay the required fee within the period
of appeal. (Underscoring supplied)
Petitioners allegation that they honestly believed that they received Resolution No.
2004-18 dated October 28, 2004 on November 3, 2004 and not on October 29, 2004, as
what appears on the records of the BLA-IPO, is self-serving and unbelievable. The
inadvertent computation of the period for one to file a pleading is inexcusable, and has
become an all too familiar and ready excuse on the part of lawyers remiss in their bounden
duty to comply with the mandatory periods.

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SEHWANI, INCORPORATED and/or BENITAS FRITES, INC. V. IN-N-OUT BURGER, INC.

G.R. No. 171053, October 15, 2007, YNARES-SANTIAGO, J.

Section 2. Appeal to the Director General. The decisions or final

Considering that the Respondent-Appellants received a copy of the

On this score, Section 5(c) of the Uniform Rules on Appeal provides:

Section 5. Action on the Appeal Memorandum The Director General shall:

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