3 Marquez v. Valera
3 Marquez v. Valera
3 Marquez v. Valera
DOCTRINE:
The principle underlying the code system of pleading is that all persons having a
material interest under the substantive law should be made parties, as distinguished
from that of the common law which allowed only a two-sided controversy, each party to
be opposed to the other.
FACTS:
Gutierrez Lora was authorized by defendants to negotiate the sale of their share
or interest in a parcel of land in Manila, and having meet his co-plaintiff L. G. Marquez,
a real estate broker, both of them agreed to work together for the sale of defendant's
property; that they found a ready, willing, and able buyer, which accepted defendants'
price and terms, but that thereafter defendants, without any justifiable reason, refused
to carry out the sale and execute the necessary deed therefor; and that as a consequence
plaintiffs failed to receive the commission which they were entitled to receive.
ISSUE:
RULING:
However, this jurisdiction does not make use of the common law procedure,
rather it is a system of code pleading. The code system of pleading adopted in substance
the rules of equity practice as to parties, under which "all persons having an interest in
the subject of the action, and in obtaining the relief demanded, may be joined as
plaintiffs". The principle underlying the rule is that all persons having a material interest
under the substantive law should be made parties, as distinguished from that of the
common law which allowed only a two-sided controversy, each party to be opposed to
the other.
Marquez clearly falls under the above rule. He is entitled to be paid his
commission out of the very contract of agency between Lora and the defendants; Lora
and he acted jointly in rendering services to defendants under Lora's contract, and the
same questions of law and fact govern their claims. The rules do not require the
existence of privity of contract between Marquez and the defendants as required under
the common law; all that they demand is that Marquez has a material interest in the
subject of the action, the right to share in the broker's commission to be paid Lora under
the latter's contract, which right Lora does not deny. This is sufficient to justify the
joinder of Marquez as a party plaintiff, even in the absence of privity of contract between
him and the defendants.