45 Cathay V Laguna
45 Cathay V Laguna
45 Cathay V Laguna
Facts:
Respondent Laguna West Multi-Purpose Cooperative is a cooperative
recognized under Republic Act No. 6657 or the Comprehensive Agrarian
Reform Law. It allegedly entered into a joint venture agreement with
farmer-beneficiaries through Certificates of Land Ownership Award (CLOA) in
Silang, Cavite. While respondent was negotiating with the farmer-
beneficiaries, petitioner Cathay Metal Corporation entered into Irrevocable
Exclusive Right to Buy (IERB) contracts with the same farmer-beneficiaries.
Under the IERB, the farmer-beneficiaries committed themselves to sell to
petitioner their agricultural properties upon conversion to industrial or
commercial properties or upon expiration of the period of prohibition from
transferring title to the properties.
Laguna West Multi-Purpose Cooperative, through its Vice President, Mr. dela
Peña, wrote two letters between March and April 2000 relative to its adverse
claims in an attempt to amicably settle what seemed then as a brewing
dispute. These letters were written on respondent’s letterheads indicating
the address, No. 167, Barangay Looc, Calamba, Laguna.
Respondent argued that petitioner was not being fair when it served
summons to respondent’s old address despite knowledge of its actual
address.
Petitioner argued that respondent was sufficiently served with summons and
a copy of its petition for cancellation of annotations because it allegedly sent
these documents to respondent’s official address as registered with the
Cooperative Development Authority.
Petitioner further argued that the Rules of Procedure cannot trump the
Cooperative Code with respect to notices. This is because the Cooperative
Code is substantive law, as opposed to the Rules of Procedure, which
pertains only to matters of procedure.
Issue:
Whether there is valid service of summons through registered mail.
Ruling:
No. Respondent was not validly served with summons.
In this case, petitioner served summons upon respondent by registered mail
and, allegedly, by personal service at the office address indicated in
respondent’s Certificate of Registration. Summons was not served upon
respondent’s officers. It was also not published in accordance with the Rules
of Court. As a result, respondent was not given an opportunity to present
evidence, and petitioner was able to obtain from the Regional Trial Court an
order cancelling respondent’s annotations of adverse claims.
Court governs court procedures, including the rules on service of notices and
summons. The Cooperative Code on notices cannot replace the rules on
summons under the Rules of Court. Rule 14, Section 11 of the Rules of Court
provides an-exclusive enumeration of the persons authorized to receive
summons for juridical entities. These persons are the juridical entity's
president, managing partner, general manager, corporate secretary,
treasurer, or in-house counsel.
Footnotes
* Villarama, Jr., J., designated as Acting Member per Special Order No.
1691 dated May 22, 2014 in view of the vacancy in the Third Division.
1
Rollo, p. 34.
2
Id. at 34 and 82.
3
Id. at 12 and 34.
4
Id. at 12 and 305.
5
Id. at 34 and 958.
6
Id. at 318–324.
7
Id at 325–865.
8
Id.; see also rollo, p. 1081; see for example rollo, p. 315.
9
Id. at 1081; see for example rollo, p. 317.
10
Id. at 34 and 973–976.
11
Id. at 34.
12
Id. at 35 and 173–304.
13
Id. at 35 and 304.
14
Id. at 35.
15
Id. at 872.
16
Id. at 35.
17
Id.
18
Id. at 35, 872, 875, 882, 959, 1040, and 1094.
19
Id. at 35 and 873.
20
Id.
21
Id. at 35.
22
Id. at 977.
23
Id. at 35 and 977–978.
24
Id. at 980.
25
Id. at 35 and 980.
26
Id. at 981–989.
27
Id. at 982.
28
Id.
29
Id. at 985–986.
30
Id. at 988.
31
Id. at 35–36.
32
Id. at 36 and 990–993.
33
Id. at 36 and 994–998.
34
Id. at 996–997.
35
Id. at 999-1009.
36
Id. at 1000–1003.
37
Id. at 1003.
38
Id. at 874–880.
39
Id. at 879.
40
Id. at 878–879.
41
Id. at 36 and 880.
42
Id. at 1080.
43
Id. at 1020–1044.
44
Id. at 1044.
45
Id. at 1045–1046.
46
Id.
47
Id. at 1080–1081.
48
Id. at 1045.
49
Id. at 1081–1084.
50
Id. at 1080–1082.
51
Id. at 1082.
52
Id. at 36.
53
Id. at 1082–1083.
54
Id. at 1083.
55
Id. at 34.
56
Id. at 38.
57
Id. at 37.
58
Id. at 38.
59
Id. at 40.
60
Id. at 1175.
61
Id.
62
Id.
63
Id.
64
Id. at 1176.
65
Id.
66
Id.
67
Id.
68
Id.
69
Id.
70
Id.
71
Id. at 1177.
72
Id. at 1194 and 1197.
73
Id. at 1194 and 1196.
74
Id. at 1197.
75
Id. at 1189.
76
Id.
77
Id. at 1177.
78
Id. at 1182–1183.
79
Id. at 1184–1185.
80
Id. at 1185.
81
Id. at 1187.
82
Id. at 1191–1192.
83
Id. at 1192–1193.
84
Id. at 1198.
85
Id. at 1209.
86
Id. at 1210.
87
Id.
88
Id.
89
Id.
90
Id.
91
Id. at 1211.
92
Id. at 1212.
93
Id. at 1213.
94
Id. at 1214.
95
Id.
96
Id.
97
Id. at 1215.
98
Id.
99
Id. at 1218.
100
Id. at 1219.
101
Id. at 970.
102
See for example Paramount Insurance Corp. v. A.C. Ordoñez
Corporation and Franklin Suspine, 583 Phil. 321, 327 (2008) [Per J.
Ynares-Santiago, Third Division; JJ. Austria-Martinez, Chico-Nazario,
Nachura, and Reyes concurring].
103
Id.
104
Id. at 328.
105
RULES OF COURT, Rule 15, sec. 4.
106
16 Phil. 315, 321–322 (1910) [Per J. Moreland, En Banc].
107
Rollo, pp. 1209-1210.
108
Id. at 90.
109
Id. at 100.
110
Id. at 970.
111
Id.
112
Id.
113
Rep. Act No. 6657 (1988), sec. 65.
114
Rollo, p. 318.