Case Digest - Ouna Arrastre Service, Inc. vs. Aleonor

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Ouna Arrastre Service, Inc. vs.

Aleonor

G.R. No. 97664 October 10, 1991

FACTS:

Private respondent International Pharmaceuticals, Inc. ("IPI") filed a complaint before the
Regional Trial Court of Cebu City against Mercantile Insurance Company, Inc. ("Mercantile")
and petitioner Ouano Arrastre Service, Inc. ("OASI") for replacement of certain equipment
imported by IPI which were insured by Mercantile but were lost on arrival in Cebu City,
allegedly because of mishandling by petitioner OASI.

Petitioner OASI's answer was filed by the law firm of Ledesma, Saludo and Associates ("LSA")
and signed by Atty. Manuel Trinidad of the Cebu office or branch of LSA. However, sometime
thereafter, Atty. Trinidad resigned from LSA and Atty. Fidel Manalo, a partner from the Makati
office of LSA, filed a motion to postpone the hearing stating that the case had just been endorsed
to him by petitioner OASI.

On 12 January 1990, after trial which Atty. Manalo handled for OASI, the trial court rendered a
decision holding Mercantile and petitioner OASI jointly and severally liable for the cost of
replacement of the damaged equipment plus damages, totalling P435,000.00.

Only Mercantile appealed from the decision.

On 19 June 1990, IPI filed a motion for execution of the decision against petitioner OASI which
public respondent judge granted on 25 June 1990.

On 26 June 1990 petitioner's counsel, through Atty. Catipay of the Cebu Branch of the LSA,
filed a notice of appeal 1 claiming that the decision was "mistakenly sent" by the trial court to the
law firm's Head Office in Makati. 2

On 27 June 1990, petitioner, through the same counsel, filed a motion for reconsideration, On 2
July 1990, public respondent judge denied OASI's motion for reconsideration declaring that the
appeal cannot be given due course for lack of merit and ordered that the writ of execution be
enforced.

ISSUES:
Whether or not LSA main office and its branch office constitute separate law firms with separate
and distinct personalities and responsibilities
HELD:

No. there never was any substitution of counsel as petitioner's counsel remained the law firm
known as Ledesma, Saludo and Associates and that firm only, but that firm as a whole.

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