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TIME
SECOND DIVISION
DECISION
HERNANDO, J.:
Challenged in this appeal is the August 30, 2013 Decision 1 of the Court
of Appeals (CA/appellate court) in CA-G.R. CV No. 93376, and its February
26, 2014 Resolution2 finding petitioner Santos Ventura Hocorma Foundation,
Inc. (SVIIFI) guilty of forum shopping when it filed two different actions, one
for collection of smn of money and the other an unlawful detainer suit in two
different courts,
* Designated as additiornil Member per Raffle dated September l 5, 202 l vice J. Gaerlan who recusc;ld dpe to
prior action in the CA
1 Ro!fo, pp. 26-33. Penrn;)c;i by Associate J1vitk:e Isaias P, Dicdlcan and concurred in by Associate JustiGes
Michael P, Elpinias and Nina G. Antonio-Valenzuela.
2 Id. at 34-35.
Decision 2 G.R. No. 211563
The ~nttcedents:
In view of MII's refusal, SVHFI wrote another letter6 on July 11, 2002,
demanding the rental payment for the months of April to July 2002 in the total
amount of P2,519,220.00 within 15 days from receipt thereof. Otherwise, it
must vacate the subject lot However, NIII still failed to comply therewith. 7
In its March 12, 2003 Order 12, the court a quo denied MII's Motion to
Dismiss. MII moved for reconsideration 13 of the said Order but the same was
likewise denied in its September 25, 2003 Order. 14
MII then sought to nullify the RTC's March 12, 2003 and September 25,
2003 Orders before the CA through a Petition for Certiorari 15 under Rule 65
of the Rules of Court, which was denied in the appellate court's July 13, 2005
Decision 16 in CA G.R. SP No. 80547. MII moved for reconsideration, which
was likewise denied in the appellate comi's September 16, 2005 Resolution. 17
Unfazed, MII filed with this Court a Petition for Review on Certiorari 18
docketed as G.R. No. 167876. However, it was dismissed through this Court's
July 4, 2005 Resolution 19 on the following grounds: (i) the petition ·was
considered as unsigned pleading for failure to verify the same in accordance
with Section 4, Rule 7 in relation to Section 1, Rule 65 of the Rules of Court;
and (ii) the petition lacks sufficient showing that the assailed judgement was
tainted with grave abuse of discretion.
On March 29, 2006, MII filed its Answer with Compulsory Counter-
claim20 with the court a quo in the Collection Case which was admitted in the
Order dated June 27, 2007 21 .
Thereafter, the court a quo set the Collection Case for pre-trial. However,
prior to the scheduled pre-trial, on September 28, 2007, MII filed a Motion to
Dismiss 22 the complaint on the ground of fon1m shopping. It argued that the
failure of SVHFI to report to the court a quo that it filed the Ejectment Case
despite the explicit requirement of Section 5(c), Rule 7 of the Rules of Court
was a willful and deliberate act of forum shopping on account of which its
complaint should be dismissed. MII likewise charged SVHFI with violating
the rule on splitting of a single cause of action as set forth in Sections 3 and 4,
Rule 2 of the same Rules. 23
15
CAro!lo,pp.115-133.
16 Id. at 134-145; penned by Associate Justice Romeo A. Brawner and concurred in by Associate Justices
Edgardo P. Cruz and Jose C. Mendoza.
17
fd. at 146
18
Id. at 147-189.
19
Id. at 190.
20 Rollo, p. 28; See also CA rollo, pp. 194-208.
21
See Rollo, p. 29.
22 CA rolfo, pp. 209-216.
23 Rollo, p. 29.
24
Id. at 28.
zs Id.
Decision 4 G.R. No. 211563
In its March· 31, 2008 Order26 the comt a quo granted MII' s motion to
dismiss, thereby dismissing the Collection Case, to wit:
SO ORDERED. 27
SVHFI filed an appeal30 with the appellate court, wherein the sole issue
raised was whether or not SVHFI was guilty of forum shopping when it filed
two different actions, i.e., the Collection and Ejectment Cases, in two different
courts. 31 In its August 30, 2013 Decision,32 the appellate court ruled in the
affirmative, to wit:
SO ORDERED. 33
26
CA rollo, pp. 217-223. Penned by Presiding Judge Elmo TVL Alameda.
27
Id. at 730.
28
Rollo, p. 29.
29
Id.; See also CA rol!o p. 224.
3
° CA rollo, pp. 15-16.
31
Rollo, p. 29.
32
Id.at26-33.
33
Id. at 30.
34
Id. at 34.
35 Id.
36
Id. at 8-23.
Decision 5 G.R. No. 211563
of Court, as amended. 37
It claims that the dismissal of the complaint under the
said provision was without prejudice to the prosecution in the same or separate
action of a counterclaim pleaded in the answer. 38 Thus, it prays that We order
the comi a quo to hear e.-,,;-parte the presentation of its evidence for its
compulsory counterclaim. 39
In Our April 21, 2014 Resolution42 We denied MII's petition in G.R. No.
211531, to wit:
In this appeal, MII cries foul over the silence of the Court of Appeals'
decision and resohition regarding the fate of its counterclaim. MII claimed that
it had already apprised the Court of Appeals about its counterclaim in its Reply
Brief and motion for reconsideration.
xxxx
The fate of the counterclaim of MU, however, is not for the Court of
Appeals to decide; it is for the RTC. And the RTC was only unable to act upon
MII's request because, according to the triai court, it already transmitted the
records of Civil Case No. 02-1326 to the Court of Appeals due to the pendency
of CA-G.R. CV No. 93376. This reasoning employed by the RTC was never
challenged by MII; rather MII merely took the same as a cue to inform the
Court of Appeals about its request to present evidence on its counterclaim
before the RTC.
37
Id. at 10.
38
Id. at 8.
39 Id. at 12.
40 Id. at 17.
41
Id. at 19.
42 Rollo, pp. 27-30; Notice dated April 21, 2014.
Decision ,:
0 G.R. No. 211563
.
Subsequently, in G.R. No. 211531, MII moved for reconsideration which
this Court denied in its July 9, 2014 Resolution. 43 Thus, the same became final
and executory on September 9, 2014. 44
Our Ruling
We hold that SVHFI did not violate the n1le on forum shopping when it
filed the Ejectment Case while the Collection Case has been pending for four
years.
43
Id. at 46.
44
Id. at 49,-50.
45
827 Phi!. 303, 327(2018).
46
Id., citing Dy v. 111anc!y Commodities, [nc., 6 I l Phil. 74, 84 (2009).
47 Dynamic Builders & Constructim1, Co. (Phil.), Inc. v. Presbdero, Jr., 757 Phil. 454,468 (2015).
48
778 Phil 280, 292 (2016).
Decision 7 G.R. No. 211563
The test to determine wh.etber a party violated the rule against forum
shopping is whether the elements of litis pendentia are present, or whether
a final judgment in one case wm amount to res judicata in another. Simply
put, when litis pendentia or res judicata does not exist, neither can forum
shopping exist.
The requisites of litis pendentia are: (a) the identity of parties, or at least
such as representing the same interests in both actions; (b) the identity of
rights asserted and relief prayed. for, the relief being founded on the same
facts; and (c) the identity of the two cases such that judgment in one,
regardless of which party is successful, would amount to res judicata in the
otheir. On the other hand, the elements of res Judi cata, also known as bar by
prior judgment, are: (a) the former judgment must be final; (b) the court which
rendered it had jurisdiction over the subject matter and the parties; (c) it must
be a judgment on the merits; and (d) there must be, between the first and second
actions, identity of parties, subject matter, and causes of action. 52 (Emphasis
supplied)
In the instant case, We find that the second and third elements of forum
shopping and litis pendentia are lacking. Thus, -·we are of the firm view that
there is no identity of rights asserted and reliefs prayed for between a suit for
49 Id. citing Arevalo v. Planters Development Bank, G.R. No. l 93415, April 18, 2012, 670 SCRA 252, 267.
5° Chavez v. Court o,fAppeals, 624 Phil. 396,400 (2010), citing Cruz v. Caraos, G.R. No. 138208, April 23,
2007, 521 SCRA 510, 522. See also Orix Metro Leasing and Finance Corp. v. Cardline, Inc., supra note
48.
51 818 Phil. 225 (2017), citing Dayot v. Shell Chemical Company (Phils.), G.R. No. 156542, June 26, 2007,
525 SCRA 535, 545-546. See also lntramuros Administration v. Ciffshore Construction Development Co.,
supra note 45.
52 Id. at 234.
Decision 8 G.R. No. 211563
collection of sum of money and an unlawful detainer case, and that any
judgment rendered in one of these actions would not amount to res judicata in
the other action.
On one hand, the purpose of the Collection Case was to compel MII to
pay its rent in view of its occupancy on the subject lot from the time of
SVHI's initial demand to vacate the subject lot. Thus, in Pro-Guard Security
Services Corp. v. Tormil Realty and Development Corp., 55 this Court pointed
out that the party adjudged to be the lawful possessor in an ejectment suit is
entitled to compensation, reckoned from the time he demanded the adverse
paiiy to vacate the disputed property.
The rule is settled that in forcible entry or unlawful detainer cases, the
only damage that can be recovered is the fair rental value or the reasonable
compensation for the use and occupation of the leased property. The reason for
this is that in such cases, the only issue raised in ejectment cases is that of
rightful possession; hence, the damages which could be recovered are those
which the plaintiff could have sustained as a mere possessor, or those caused by
the loss of the use and occupation of the property, and not the damages which
he may have suffered but which have no direct relation to his loss of material
possession.
Settled is the rule that the only issue raised in ejectrnent cases is that of
physical possession of the property. 59 Thus, in forcible entry or unlawful
detainer cases, the only damage that can be recovered is the fair rental value or
the reasonable compensation for the ·use and occupation of the leased
property. 60 Hence, the damages which could be recovered are those which the
plaintiff could have sustained as a 1nere possessor, or those caused by the loss
of the use and occupation of the property" On the other hand, in a civil suit for
collection of sum of money, what is sought to be recovered is the payment of
rentals only without regard to the unlawfulness of the occupancy. 61
xxxx
In the instant case, a perusal of the records shows that
the second and third requirements [of litis pendentia] are lacking. While the
complaints appear to involve the same parties and properties, we find, however,
no identity of causes of action. In the u.1.dawful detainer cases filed by
Agustin, i~ view of Lajave's failure to vacate the subject prope1iies and non-
payrnent of rentals, his cause of action stemmed from the prejudice he
suffered due to the loss of possession of his properties and the damages
incurred after the dispossession,
5Y Echanes v. Spouses Hailar, 792 Phil. 724, 730 (2()16), citing Barrientos v. Rapa!, 669 Phil. 438, 444
(2011).
60 La Campana Developm.ent Corp. v. Ledesma, 643 Phil. 257,266 (2010).
6I Lajave Agricultural Management and Development Enterprises, Inc, v. Spouses Javellana, supra note 55.
Decision 10 G.R. No. 211563
62 Jd.
63 Jntramuros Administration v. Offshore Construction Development Co., :mpra note 46.
Decision 11 G.R. No. 211563
for specific performance. 64 This fi.irther strengthens our view that an institution
of an ejectment suit does not constitute as forum shopping even if the issue of
un~aid rentals between the same parties and of the sanl© property is pending
before another court.
(a) The party joining the causes of action shall cornply with the rules on
joinder of parties;
(b) The joinder shaH not iuchule special civil ~cfoms or actions
governed by special rules;
(c) Where the causes of action are between the same parties but pertain to
different venues or jirrisdictions, the joinder may be allowed in the Regional
Trial Court provided one of the causes of action falls within the jurisdiction of
said court and the venue lies therein; and
(d) Where the claims in aU the causes of action are principally for
recovery of money, the aggregate amount claimed shall be the test of
jurisdiction. (Emphasis supplied.)
Thus, in Lajave, We pointed out that "an action for collection of sum of
money may not be properly joined with the action for ejectment. The fom1er is
64
Id. at 334 and 338-339. We held:
Ordinarily, this cas(;l would now be n:)lnancfo,j to the Metr()politan Trial Court for the
detem1ination of the rightful pq::.s~;;:sor ~if the lea!1~cl prnmfa(~S, Hgwever, this would cause
noedk)ss delay inconsistent with the summary nature of ejectment proceedings. Given that there
appears sufficient evidence on rec:ord to nmke this d,~tenni1)litlon, judicial economy diet1;1t(;s tllat
this Cotfft now resolve the issL\f3 of'posses5imi.
xxxx
f-J9we;ver, thi$ Court c~n11ot award unpaid rentals to petitioner piir~uant to thi:, 1;:jectrr1ent
proceeding, slnce the issue of rentals in Civil Case No.03 .. 119138 ls currently pending with
Branch 37, Regional Trial Court, Manila, by virtue of petitioner's col!ntereh1im, As the parties
dispute the an1-ounts to be offset µnfler tbe July 27, 2004 Memorandum of Agreement and
respondent's actual back and cµrrent rentals due, the resolution of that case is better left to the
Regional Trial Court for trial rm the merits.
Decision 12 G.R. No. 211563
I11 the instant case, the Collection C,1se requires a fuH-blown trial for the
parties to show evidence on the propriety of paying rent and its rightful
amount. These may not be accomplished in an ejectment proceeding which is
summary in nature.
Therefore, this Court finds SVJ--lFI not guilty of forum shopping when it
filed the Efoctment Case subs©qtlent tQ the Collection Ci:ise, while the latter is
still pending. In both cases, there is no identity of rights asserted and reliefs
prayed for, and that any judgement on any of these cases would not amount to
res judicata on the other.
In the Ejectment Case, the cause of action stemmed from the prejudice
that SVHFI allegedly suffered due to the loss of possession of the subject lot.
On the other hand, the Collection Case was founded on the appropriate
21mount of rental fees that are allegedly due and the damages that SVI-IFI
allegedly suffered but ·which hav1;:: no dir~ct relation to its loss of material
possess10n.
SO ORDERED.
...
Associate Justice
- WECONCUR:
ESTELA JaJM!i_BERNABE
Senior Associate Justice
Chairperson
HENR JHOSE~OPEZ
Associate Justice
Decision 14 G.R. No. 211563
ATTESTATION
I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the
Court's Division.
ESTELA ~BERNABE
Senior Associate Justice
Chairperson
CERTIFICATION