Third Party Complaint
Third Party Complaint
Third Party Complaint
There were contracts of rule over real properties where the buyers were given
the option to identify the areas to be delivered. After identification, the areas
were delivered. It was discovered however, that the same have already been
sold. The earlier buyer filed a complaint for ejectment where a compromise
agreement was entered into, thus, the areas were surrendered to the first buyer.
They demanded from the sellers that they be allowed to make a choice again but
it moved to declare the defendants in default for failure to file a valid answer. It
was granted. The Republic was allowed to present evidence ex parte; judgment
was rendered. Motion for Reconsideration was filed but it was denied, hence, a
petition for certiorari was filed with the Court of Appeals which reversed the
lower courts ruling. Is the ruling of the CA correct? Why?
Held: No. The pleading was an unsigned pleading, hence, it is not valid and of no
legal effect. The defendant was properly declared in default was refused, hence,
they filed a complaint for specific performance with delivery of possession of
real property and damages. They claimed that they could not exercise their right
to choose since the properties they pointed to have already been sold. The
defendants claimed that they have already complied with their obligation. They
faulted the plaintiffs for losing the properties because in the ejectment suit. They
did not file a third-party complaint to implead the sellers in the suit for
ejectment.
The lower court ruled that there was no cause of action for specific
performance. The proper remedy is an action for enforcement of warranty
against eviction. A petition for review was filed raising the issue of whether they
have a cause of action for specific performance. Rule on the petition. Explain.
Answer: No, they have no cause of action for specific performance. They should
have filed a third-party complaint when they were sued for eviction by the first
buyers under Rule 6, Sec. 11. The function of a third-party complaint has been
explained thus:
If they filed the third-party complaint against the sellers, they could have sought
from them contribution, indemnity, subrogation or any other relief in respect of
the claim of the first buyers. The phrase any other relief includes a claim of a
vendee for warranty against the vendor. (Sps. Uy v. Ariza, et al., G.R. No. 158370,
August 17, 2006, citing Castillo v. Samonte, 106 Phil. 1023 (1960)).