Crisologo v. JEWM Agro Industrial, G.R. No. 196894, 3 March 2014, 717 SCRA

Crisologo v. JEWM Agro Industrial, G.R. No.
196894, 3 March 2014, 717 SCRA

644 As indispensable parties, Spouses Crisologo should have been joined as defendants
 JEWM acquired a parcel of land from Lim, who in turn acquired it from Sy Sen in the case
Ben. Sy Sen Ben acquired the land as satisfaction of judgment he secured from  The reason behind this compulsory joinder of indispensable parties is the
So Keng Kok. The TCT of the land contained annotations for attachments and complete determination of all possible issues, not only between the parties
levies pursuant to other cases filed against So Keng Kok. themselves but also as regards other persons who may be affected by the
 A year later, Sps Crisologo won a case againt So Keng Kok; writ of execution judgment.
granted; JEWM property included among lands to be sold in satisfaction  In this case, despite repeated pleas by Spouses Crisologo to be recognized as
thereof indispensable parties, failed to implement the mandatory import of the
 JEWM: separate action for cancellation of lien w/ prayer for WPI aforecited rule.
 At hearing: Sps Crisologo’s counsel: Very Urgent Manifestation questioning In fact, in Sps. Crisologo v. Judge George E. Omelio, a related administrative case,
the authority of the said court to restrain the execution proceedings the Court found the trial judge guilty of gross ignorance of the law when it
 JEWM opposed: Spouses Crisologo not parties in the case. disregarded the claims of Spouses Crisologo to participate.
 Sps Crisologo  Omnibus Motion: recognize us as parties!  the cancellation of the annotation of the sale without notifying the buyers, Sps.
 No motion to intervene was, however, filed as the Spouses Crisologo Crisologo, is a violation of the latter’s right to due process.
believed that it was unnecessary since they were already the John and  Penalty of 40k upon Judge Omelio
Jane Does named in the complaint.
 RTC denied. Sps Crisolo filed MR. Denied again by RTC: lack of legal standing 2) Motion to intervene not necessary
in court considering that their counsel failed to make the written formal notice As held in the admin case: “Judge Omelio should be penalized for failing to
of appearance. recognize Sps. Crisologo as indispensable parties and for requiring them to file a
 JEWM moved to declare Sps in default, which was granted by RTC motion to intervene, considering that a simple perusal of the certificates of title
would show Sps. Crisologo’s adverse rights because their liens are annotated at the
 Sps  Urgent Manifestation again: they could not be deemed as defaulting
back of the titles."
parties because they were not referred to in the pertinent motion and order of
default.
Although Intervention under Rule 19 could have been availed of, failing to use
 Sps elevated the case to CA. CA also denied their motion to be recognized as
this remedy should not prejudice Spouses Crisologo. It is the duty of RTC-Br. 14,
parties, holding that:
following the rule on joinder of indispensable parties, to simply recognize them.
a) the action for Cancellation of Annotations may proceed even without
Through a cursory reading of the titles, the Court would have noticed the adverse
notice to and impleading the party/ies who caused the annotations
rights of Spouses Crisologo over the cancellation of any annotations in the subject
b) it’s the Sps Crisologo’s fault since they failed to file a motion to
TCTs.
intervene
 Sps Crisologo filed a petition for certiorari before SC.
3) Petition for certiorari appropriate: no adequate recourse, at that time, was
 JEWM: Spouses Crisologo lacked the legal standing to file a Rule 65 available to Spouses Crisologo, except resorting to Rule 65.
petition since they were not impleaded in the proceedings. a) Appeal not available: only the original parties to an action can
 Also, not not indispensable parties since their rights over the properties appeal.Here, Spouses Crisologo were never impleaded. Hence, they could
had been rendered ineffective by the final and executory Decision of the not have utilized appeal as they never possessed the required legal
RTC which disposed unconditionally and absolutely the subject standing in the first place.
properties in favor of its predecessor-in-interest (Sy Sen Ben) b) Annulment of judgment also not available : this remedy presupposes a
final judgment already rendered by a trial court.
Held: Sps Crisologo indispensable parties.
1) In an action for the cancellation of memorandum annotated at the back of a 4) Standing to file petition for certiorari
certificate of title, the persons considered as indispensable include those whose The ‘person aggrieved’ under Section 1 of Rule 65 who can avail of the special civil
liens appear as annotations pursuant to Section 108 of P.D. No. 1529 action of certiorari pertains only to one who was a party in the proceedings before
the court a quo, or in this case before the COA. To hold otherwise would open the
Here, undisputed is the fact that Spouses Crisologo’s liens were indeed annotated courts to numerous and endless litigations.
at the back of TCT Nos. 325675 and 325676. Thus, as persons with their liens
annotated, they stand to be benefited or injured by any order relative to the This case, however, is an exception.
cancellation of annotations in the pertinent TCTs.
Be it noted that the effect of their non-participation as indispensable parties is to
preclude the judgment, orders and the proceedings from attaining finality
the absence of an indispensable party renders all subsequent actions of the court
null and void for want of authority to act, not only as to the absent parties but even
to those present. Consequently, the proceedings before RTC-Br. 14 were null and
void including the assailed orders, which may be "ignored wherever and whenever
it exhibits its head.
To turn a blind eye to the said nullity and, in turn, rule as improper the recourse to
Rule 65 by the lack of legal standing is to prolong the denial of due process to the
persons whose interests are indispensible to the final disposition of the case.
 It will only result in a protracted litigation as Spouses Crisologo will be forced
to rely on a petition for the annulment of judgment before the CA (as the last
remaining remedy), which may again reach this Court.
 To prevent multiplicity of suits and to expedite the swift administration of
justice, the CA should have applied liberality by striking down the assailed
orders despite the lack of legal standing on the part of Spouses Crisologo to
file the Rule 65 petition before it.
 Besides, this lacking requirement, of which Spouses Crisologo were not even
at fault, is precisely the reason why this controversy arose.

Crisologo v. JEWM Agro Industrial, G.R. No. 196894, 3 March 2014, 717 SCRA

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