Wednesday, February 11, 2015

bulado digests


RAFFY RUIZ BULADO                


March 17, 1930        G.R. No. 32636
In the matter Estate of Edward Randolph Hix, deceased.
A.W. FLUEMER,
vs.
ANNIE COUSHING HIX

FACTS:
            The petitioner is a special administrator of the estate of Edward Hix. He alleged that the latter’s will was executed in Elkins, West Virginia on November 3, 1925 by Hix who had his residence in that jurisdiction, and that the laws of that state govern. To this end, the petitioner submitted a copy of Section 3868 of Acts 1882, c.84 as found in West Virginia Code, annotated by Hogg, Charles E., vol.2 1914, p. 1690 and as certified to by the Director of National Library. The Judge of the First Instance however denied the probate of the will on the grounds that Sec 300 and301 of the Code of Civil Procedure were not complied with. Hence, this appeal.
ISSUE:          
            Whether it is necessary to prove in this jurisdiction the existence of such law in West Virginia as a prerequisite to the allowance and recording of said will.

RULING: 
            Yes. The laws of the foreign jurisdiction do not prove themselves in our courts. The courts of the Philippine Islands are not authorized to take judicial notice of the laws of the various states of the American Union. Such laws must be proved as facts. Here the requirements of the law were not met. There was no showing that the book from which an extract was taken was printed or published under the authority of the state of West Virginia, as provided in Sec 30 of the Code of Civil Procedure. Nor was the extract from the law attested by the certificate of the officer having charge of the original, under the seal of the State of West Virginia as provided in Sec 301. No evidence was introduced showing that the extract from the laws of West Virginia was in force at the time alleged will was executed. The court therefore did not err in denying the probate of the will. The existence of such law in West Virginia must be proved.







G.R. No. 110844             April 27, 2000
ALFREDO CHING vs. CA
FACTS:
            In the Municipality of Makati, Metro Manila, Philippines, Chingexecuted a trust receipt agreement in favor of Allied Banking Corporation which became due. Under the terms of which the petitioner agreed to sell the same for cash with the express obligation to remit to the  bank the proceeds of the sale and/or to turn over the goods, if not sold, on demand. But Ching, once in possession of said goods, far from complying with his obligation and with grave abuse of confidence, did then and there, willfully, unlawfully and feloniously misappropriate, misapply and convert to his own personal use and benefit the said goods and/or the proceeds of the sale thereof, and despite repeated demands, failed and refused and still fails and refuses, to account for and/or remit the proceeds of sale thereof to the Allied Banking Corporation to the damage and prejudice of the said complainant bank.
            Petitioner was charged before the Regional Trial Court of Makati with four counts of estafa punishable under Article 315 par. 1(b) of the Revised Penal Code, in relation to Presidential Decree 115, otherwise known as the "Trust Receipts Law.”
            An "Omnibus Motion to Strike Out Information, or in the Alternative to Require Public Prosecutor to Conduct Preliminary Investigation, and to Suspend in the Meantime Further Proceedings in these Cases," was filed by the petitioner.
            Later, petitioner Ching, together with Philippine Blooming Mills Co. Inc., filed a case before the Regional Trial Court of Manila (RTC-Manila), Branch 53, for declaration of nullity of documents and for damages.
            The RTC-Makati issued an order which denied the petition for suspension and scheduled the arraignment and pre-trial of the criminal cases. As a result, petitioner moved to reconsider the order but the same was denied. Subsequent appeal was made to the CA but was again denied.
            Notwithstanding the decision rendered by the Court of Appeals, the RTC-Manila (civil case), in an order dated 19 November 1993 in Civil Case No. 92-60600, admitted petitioner's amended complaint.
ISSUE:
            When will allegations in a complaint cease to be judicial admission?
RULING:
            Under the Rules, pleadings superseded or amended disappear from the record, lose their status as pleadings and cease to be judicial admissions. While they may nonetheless be utilized against the pleader as extrajudicial admissions, they must, in order to have such effect, be formally offered in evidence. If not offered in evidence, the admission contained therein will not be considered.
            Consequently, the original complaint, having been amended, lost its character as a judicial admission, which would have required no proof, and became merely an extrajudicial admission, the admissibility of which, as evidence, required its formal offer.
            In virtue thereof, the amended complaint takes the place of the original. The latter is regarded as abandoned and ceases to perform any further function as a pleading. The original complaint no longer forms part of the record.

G.R. No. L-22415             March 30, 1966
FERNANDO LOPEZ, ET AL.vs.
PAN AMERICAN WORLD AIRWAYS,

FACTS:
            Senator Lopez et al made reservations for 1st class accommodations in a flight of Pan Am from Tokyo to San Francisco. The reservations were confirmed in a phone call. Tickets were also issued. However, Lopez et al were not accommodated in the first class for the reason that there was no accommodation for them. They instead took the tourist passengers without prejudice to any claim against Pan Am. Subsequently, a suit for damages was filed against Pan Am. Pan Am answered admitting its breach of the contract of carriage but however denied the allegation of bad faith. It contends that the failure to provide 1st class accommodations was made in honest mistake:  That the accommodation was mistakenly cancelled, and expecting that there would be subsequent cancellation of bookings, they withheld the information regarding the cancellation from Lopez et al.
ISSUE:
            Whether admissions on trial should be proved.
HELD:
            From the foregoing evidence of defendant it is in effect admitted that defendant — through its agents — first cancelled plaintiffs, reservations by mistake and thereafter deliberately and intentionally withheld from plaintiffs or their travel agent the fact of said cancellation, letting them go on believing that their first class reservations stood valid and confirmed. In so misleading plaintiffs into purchasing first class tickets in the conviction that they had confirmed reservations for the same, when in fact they had none, defendant wilfully and knowingly placed itself into the position of having to breach its aforesaid contracts with plaintiffs should there be no last-minute cancellation by other passengers before flight time, as it turned out in this case. Such actuation of defendant may indeed have been prompted by nothing more than the promotion of its self-interest in holding on to Senator Lopez and party as passengers in its flight and foreclosing on their chances to seek the services of other airlines that may have been able to afford them first class accommodations. All the time, in legal contemplation such conduct already amounts to action in bad faith. For bad faith means a breach of a known duty through some motive of interest or ill-will.
            Accordingly, there being a clear admission in defendant's evidence of facts amounting to a bad faith on its part in regard to the breach of its contracts with plaintiffs, it becomes unnecessary to further discuss the evidence adduced by plaintiffs to establish defendant's bad faith. For what is admitted in the course of the trial does not need to be proved (Sec. 2, Rule 129, Rules of Court).






G.R. No. 109173 July 5, 1996
CITY OF CEBU vs.CA

FACTS:
            Private respondent MerlitaCardeno is the owner of a parcel of land located at SitioSto. Nino, Alaska-Mambaling. The petitioner, City of Cebu, filed a complaint for eminent domain against private respondent with Branch II of the Regional Trial Court of Cebu City seeking to expropriate the said parcel of land. The complaint was initiated pursuant to Resolution No. 404 and Ordinance No. 1418, dated February 17, 1992, of the SangguniangPanlungsod of Cebu City authorizing the City Mayor to expropriate the said parcel of land for the purpose of providing a socialized housing project for the landless and low-income city residents, which a copy thereof, also annexed on the complaint.
            Private respondent filed a motion to dismiss the said complaint on the ground of lack of cause of action, which is, lacking a previous valid offer.
ISSUE:
            Whether the annexedphotocopy of the ordinance for the expropriation of the       land should be admissible as evidence.
RULING:
            Yes.
            All documents attached to a complaint, the due execution and genuineness of which are not denied under oath by the defendant, must be considered as part of the complaint without need of introducing evidence thereon. Additionally, the general rule is that a motion to dismiss hypothetically admits the truth of the facts alleged in the complaint. Thus, Ordinance No. 1418, with all its provisions, is not only incorporated into the complaint for eminent domain filed by petitioner, but is also deemed admitted by private respondent. A perusal of the copy of said ordinance which has been annexed to the complaint shows that the fact of petitioner's having made a previous valid and definite offer to private respondent is categorically stated therein.












G.R. No. 117434      February 9, 2001
BENGUET EXPLORATION, INC vs. CA

FACTS:
            Petitioner Benguet Exploration, Inc. (Benguet) filed a complaint for damages against SeawoodShipping and Switzerland General Insurance, Co., Ltd.
            Switzerland Insurance filed a third-party complaint against Seawood Shipping, praying that the latter be ordered to indemnify it for whatever might be adjudged against it in favor of petitioner.Thereafter, the cases were jointly tried, during which petitioner Benguet presented its employees, Rogelio Lumibao and Ernesto Cayabyab, as witnesses.
            Rogelio Lumibao, marketing assistant of Benguet, was in charge of exportation. His responsibilities included the documentation of export products, presentations with banks, and other duties connected with the export of products. He explained that private respondent Seawood Shipping was chartered by petitioner Benguet to transport copper concentrates. The bill of lading stated that the cargo, consisting of 2,243.496 wet metric tons of copper concentrates, was loaded on board Sangkulirang No. 3 at Poro Point, San Fernando, La Union. It was insured by Switzerland Insurance (marine insurance policy was marked. When the cargo was unloaded in Japan, however, Rogelio Lumibao received a report dated August 19, 1985, from a surveyor in Japan stating that the cargo was 355 metric tons short of the amount stated in the bill of lading. For this reason, petitioner Benguet made a claim of the loss to Seawood Shipping and Switzerland Insurance. In its letter, dated August 21, 1985, petitioner Benguet made a formal demand for the value of the alleged shortage. As both Seawood Shipping and Switzerland Insurance refused the demand, petitioner Benguet brought these cases against Seawood Shipping and Switzerland Insurance.
            Ernesto Cayabyab had been with Benguet for 13 years and, at the time of his testimony, he was secretary of Nil Alejandre, manager of Benguet. According to Cayabyab, he was sent to the warehouseat La Union to assist in the loading of the copper concentrates. These copper concentrates were to be loaded on the ship Sangkulirang No. 3. Cayabyab said he was present when the cargo was loaded on the ship, as evidenced by the Certificate of Loading, Certificate of Weight, and the Mate's Receipt all dated July 28, 1985. According to Cayabyab, the Marine Surveyor and the Chief Mate would go around the boat to determine how much was loaded on the ship. Cayabyab stated that he saw petitioner Benguet's representative and his immediate superior, Mr. Alejandre, and the Inspector of Customs, Mr. Cardenas, sign the Certificate of Weight. Cayabyab also witnessed the ship captain sign the Certificate of Weight, which stated therein that 2,243.496 wet metric tons of copper concentrates were loaded on the ship. Cayabyab likewise confirmed the authenticity of the Mate's Receipt, saying that he witnessed the Chief Mate sign the document.

ISSUE:
            Whether the genuineness and due execution of the documents presented were             properly established by the testimony of the plaintiff’s witness, resulting to prima     facie presumption that their contents are true.

RULING:
            The admission of the due execution and genuineness of a document simply means that "the party whose signature it bears admits that he signed it or that it was signed by another for him with his authority; that at the time it was signed it was in words and figures exactly as set out in the pleading of the party relying upon it; that the document was delivered; and that any formal requisites required by law, such as a seal, an acknowledgment, or revenue stamp, which it lacks, are waived by him. When the law makes use of the phrase 'genuineness and due execution of the instrument' it means nothing more than that the instrument is not spurious, counterfeit, or of different import on its face from the one executed.
            The only object of the rule was to enable a plaintiff to make out a prima facie, not a conclusive case, and it cannot preclude a defendant from introducing any defense on the merits which does not contradict the execution of the instrument introduced in evidence
            In this case, respondents presented evidence which casts doubt on the veracity of these documents. Respondent Switzerland Insurance presented Export Declaration No. 1131/85  which petitioner's own witness, Rogelio Lumibao, prepared, in which it was stated that the copper concentrates to be transported to Japan had a gross weight of only 2,050 wet metric tons or 1,845 dry metric tons, 10 percent more or less. On the other hand, Certified Adjusters, Inc., to which Switzerland Insurance had referred petitioner's claim, prepared a report which showed that a total of 2,451.630 wet metric tons of copper concentrates were delivered at Poro Point.
            Thus, whatever presumption of regularity in the transactions might have risen from the genuineness and due execution of the Bill of Lading, Certificate of Weight, Certificate of Loading, and Mate's Receipt was successfully rebutted by the evidence presented by respondent Switzerland Insurance which showed disparities in the actual weight of the cargo transported to Poro Point and loaded on the vessel.















G.R. No. L-39059 September 30, 1974
CABALLERO vs.DEIPARINE, ET AL.

FACTS:
            Plaintiffs Antonio Caballero and Concordia Caballero are the children by the first marriage, and the defendants, Tomas Raga, Olimpio Raga, Adriano Raga and Magdalena Raga, are the children by second marriage of VicentaBucao, now deceased, who died sometime in February, 1943 in Tabunoc, Talisay, Cebu.
            VicentaBucao in her lifetime and Tomas Raga acquired by joint purchase a parcel of land from the Talisay-Minglanilla Friar Lands Estate identified as Lot 2072 situated in Tabunoc, Talisay, Cebu and now more particularly described in Transfer Certificate of Title No. Rt-2485 (T-17232) of the Registry of Deeds of Cebu and further declared for taxation purposes under Tax Declaration No. 15954 and at P100.00;
            Defendant Tomas Raga and VicentaBucao jointly sold 1/4 of said Lot 2072 to plaintiff Antonio Caballero, which sale was evidenced by a deed of sale; and since the title to said lot at the time of the conveyance to him had not as yet been issued to them they held the subject portion in trust for said Antonio Caballero until its title could be delivered to the latter
            Long before the death of VicentaBucao in 1943, plaintiff Antonio Caballero had been, paying the yearly land tax and asking the former to deliver the title to the portion sold to him, but he was told by his mother to wait, as after all, according to her, he (plaintiff) was already in possession thereof and, besides, his mother was then still living
            After the death of VicentaBucao in 1943, plaintiff Antonio Caballero asked defendant Tomas Raga to deliver the title to the portion sold to him from Lot 2072, but he (Tomas Raga) told him to wait until it could be segregated and that there was no hurry since he (Antonio) was already in possession thereof.
            Plaintiff Antonio Caballero received from defendant Alma Deiparine a letter demanding that he vacate the portion of Lot 2072 which he was holding for she had bought it from defendant Tomas Raga, and as the new owner she would like to construct a house thereon and would further improve said lot;
            Upon refusal of the plaintiff to vacate the portion in question defendant Alma Deiparine brought an action for ejectment against him in the Municipal Court of Talisay, and after trial said Court rendered judgment in favor of Antonio Caballero, the plaintiff.
            Before the case was called for hearing, the parties through counsel entered into a stipulation of facts on March 13, 1968, which provides as follows:
STIPULATION OF FACTS
            The PLAINTIFFS and the DEFENDANTS in the above-entitled case duly assisted by their respective counsels, unto this Honorable Court hereby respectfully submit the following stipulation of facts:
            XXX
            7. That during the lifetime of VicentaBucao, she, with the conformity of her husband, sold her undivided 1/2 of the above parcel to her co-owner, Tomas       Raga;
            XXX
            9. That on March 28, 1963 Alma Deiparine acquired in good faith, with a just title   and for a valuable consideration, the whole of Lot 2072 from Tomas Raga as per       deed of absolute sale identified as Annex "C" in the complaint which cancelled        Transfer Certificate of Title No. RT-2482 (T-17232) and the issuance in her name      of Transfer Certificate of Title No. 9934 on April 1, 1963, a certified true copy of             which is identified as Annex "D" in the complaint;
            XXX
                        WHEREFORE, it is most respectfully prayed that the foregoing Stipulation of Facts be approved and that a decision he handed down on the legal issues    submitted on the basis of said Stipulation of Facts.
            XXX

            The trial court on April 30, 1968, rendered a decision based on the stipulation of facts, the dispositive portion of which reads as follows:
                        IN VIEW OF THE FOREGOING CONSIDERATIONS, judgment is hereby   rendered against the plaintiffs, dismissing the complaint insofar as the defendant      Alma Deiparine is concerned, but awarding to said plaintiffs and against the other           defendants Raga, jointly and severally, the amount of ONE THOUSAND PESOS     (P1,000.00), as moral damages, and FIVE HUNDRED PESOS (P500.00) as             attorney's fees. The defendants Raga are likewise ordered to pay the costs.
            Plaintiffs filed a motion for reconsideration and/or new trial and for leave of court to admit an amended complaint which the lower court in its order of August 26, 1968, denied. Hence, this appeal to the Court of Appeals by Antonio Caballero and Concordia Caballero, which was certified to this Court.

ISSUE:
            Whether the written stipulation of facts entered into by the counsel for both          parties without the signature of the latter is valid and binding.
RULING:
            No.
            The conduct of the counsel for plaintiffs-appellants in entering into a compromise agreement or stipulation of facts which practically confesses judgment, without the consent and conformity of his clients, is not in keeping with the sworn duty of a lawyer to protect the interest of his clients. It is a grossly reprehensible act which amounts to fraud. The stipulation of facts should not have been tolerated by the trial court by giving its seal of approval thereto. And to top it all, plaintiffs-appellants' counsel made the unauthorized admission therein that principal defendant Alma Deiparine acquired in good faith with a just title and for a valuable consideration the whole of Lot 2072. Their counsel even admitted also in said document that during the lifetime of VicentaBucao, she, with the conformity of her husband, sold her undivided ½ of Lot 2072 to her co-owner Tomas Raga. No document was ever shown to him by the Ragas in support of this claim and the record do not disclose that there was such document.
            Rule 138, Section 23 of the Rules of Court specifically provides that:
                        Authority of attorneys to bind clients. — Attorneys have authority to bind    their clients in any case by any agreement in relation thereto made   in writing,       and in taking appeals, and in all matters of ordinary judicial procedure. But they             cannot, without special authority, compromise their client's litigation, or receive            anything in discharge of a client's claim but the full amount in cash.

            It may be true that during the pre-trial hearing held on February 3, 1968, the parties concerned agreed to execute a stipulation of facts but it does not mean that the respective counsels of the contending parties can prepare a stipulation of facts the contents of which is prejudicial to the interest of their clients and sign it themselves without the intervention of their clients. In the case at bar, the then counsel for plaintiffs-appellants, Atty. Melecio C. Guba, agreed that defendant-appellee Alma Deiparine bought the land in question in good faith and for a valuable consideration; that during the lifetime of their mother VicentaBucao, she, with the conformity of her husband, sold her undivided ½ of the land in question to her co-owner and son, Tomas Raga. All these adverse facts were made the basis of the appealed decision against the plaintiffs. No further evidence was presented as there was no hearing. The attorney for the plaintiffs in making such admission went beyond the scope of his authority as counsel and practically gave away the plaintiffs' case. The admission does not refer to a matter of judicial procedure related to the enforcement of the remedy. It related to the very subject matter of the cause of action, or to a matter on which the client alone can make the admission binding on him.





















A.M. No. MTJ-90-400 July 14, 1995
SUSIMO MOROÑO vs. LOMEDA

FACTS:
            Complainant SusimoMoroño was charged as one of the accused in Criminal Cases Nos. 7592, 7593, and 7594 for Murder
             While under detention, complainant together with another accused, TanoBarotag, executed separate in-custody confessions subscribed by respondent Judge Aurelio Lomeda.
            At the trial of the aforementioned triple murder cases, complainant SusimoMoroño and his co-accused TanoBarotag, assailed the validity of their extrajudicial confessions for having been taken after they were made to sign the same without the assistance of counsel. After they signed their separate extrajudicial confessions at the police station, they were brought by the policemen to the house of Atty. Rogue Amante in Bindoy where Atty. Amante signed the extrajudicial confessions to make it appear that accused SusimoMoroño and his co-accused TanoBarotag were assisted by counsel at the time it was taken and prepared.
            Then complainant SusimoMoroño and his co-accused TanoBarotag were taken by the police to the Office of respondent Judge Aurelio Lomeda in Manjuyod, Negros Oriental where the said respondent signed the confessions as subscribing officer without the presence of Atty. Roque Amante, alleged counsel for the accused. The contents of the confessions were not read and translated by the respondent Judge before the complainant SusimoMoroño and his co-accused TanoBarotag prior to his signing of the confessions as subscribing officer. The confessions were already signed by complainant SusimoMoroño and TanoBarotag at the police station of Bindoy, Negros Oriental before Atty. Roque Amante signed the said confessions at his house in Bindoy. Atty. Roque Amante had no participation in the preparation and execution of the confessions.  He was not the accused's counsel nor was he present when respondent Judge Lomeda signed the confessions as subscribing officer. The the accused in the aforementioned triple murder cases were all acquitted after the Court rejected the admissibility of the extrajudicial confessions for being violative of Section 12(1), Article III of the Constitution.

ISSUE:
                        Whether or not respondent Judge Aurelio Lomeda was remiss in the          performance of his judicial duties as subscribing officer of the in-custody      extrajudicial confessions of complainant SusimoMoroño and his co-accused        TanoBanotog in relation to Criminal Cases
RULING:
            Yes.
            The act of respondent Judge in subscribing the confessions without diligently ascertaining whether or not the confessants were apprised of and accorded their constitutional rights is contrary to what is expected of him as a judge.
            Respondent Judge Lomeda failed to ascertain that the guarantees of the Constitution had been respected in connection with the execution of the extrajudicial confession. As shown by the thumbmark on his supposed confession, complainant Moroño was illiterate. Respondent Judge, therefore, should have proceeded with extra caution in order to prevent the constitutional guarantees from being reduced to futile platitudes. 7He should have satisfied himself that the accused had been effectively informed of their constitutional rights and that these had been explained to them in a dialect or language known to them, and in a manner comprehensible to them.While respondent claims that there were no visible marks of torture or injury on complainant (something vigorously contested by complainant), respondent Judge exerted no appreciable effort to ascertain whether the confessions had in fact been voluntarily executed by complainant and the latter's co-accused.




























G.R. No. 128538       February 28, 2001
SCC CHEMICALS CORPORATION vs. CA

FACTS:
            SCC Chemicals Corporation through its chairman, private respondent DaniloArrieta and vice president, Pablo (Pablito) Bermundo, obtained a loan from State Investment House Inc (hereinafter SIHI) in the amount of P129,824.48. The loan carried an annual interest rate of 30% plus penalty charges of 2% per month on the remaining balance of the principal upon non-payment on the due date-January 12, 1984. To secure the payment of the loan, DaniloArrieta and private respondent LeopoldoHalili executed a Comprehensive Surety Agreement binding themselves jointly and severally to pay the obligation on the maturity date.
            SCC failed to pay the loan when it matured. SIHI then sent demand letters to SCC, Arrieta and Halili, but notwithstanding receipt thereof, no payment was made.
            SIHI filed Civil Case for a sum of money with a prayer for preliminary attachment against SCC, Arrieta, and Halili with the Regional Trial Court of Manila.
            In its answer, SCC asserted SIHI's lack of cause of action. Petitioner contended that the promissory note upon which SIHI anchored its cause of action was null, void, and of no binding effect for lack or failure of consideration.
            The case was then set for pre-trial. The parties were allowed to meet out-of-court in an effort to settle the dispute amicably. No settlement was reached, but the following stipulation of facts was agreed upon:
            1. Parties agree that this Court has jurisdiction over the plaintiff and the     defendant and that it has jurisdiction to try and decide this case on its merits and   that plaintiff and the defendant have each the capacity to sue and to be sued in      this present action;
            2. Parties agree that plaintiff sent a demand letter to the defendant SCC    Chemical Corporation dated April 4, 1984 together with a statement of account of    even date which were both received by the herein defendant; and
            3. Parties finally agree that the plaintiff and the defendant SCC Chemical             Corporation the latter acting through defendants Danilo E. Arrieta and Pablito           Bermundo executed a promissory note last December 13, 1983 for the amount of             P129,824.48 with maturity date on January 12, 1984.
            The case then proceeded to trial on the sole issue of whether or not the defendants were liable to the plaintiff and to what extent was the liability.
            SIHI presented one witness to prove its claim. The cross-examination of said witness was postponed several times due to one reason or another at the instance of either party. The case was calendared several times for hearing but each time, SCC or its counsel failed to appear despite notice. SCC was finally declared by the trial court to have waived its right to cross-examine the witness of SIHI and the case was deemed submitted for decision.
            On March 22, 1993, the lower court promulgated its decision in favor of SIHI.


ISSUES:
            1. Whether the testimony of private respondent’s witness is hearsay.
            2. Whether the promissory note was genuine and genuinely executed as required                      by law.
            3. Whether the “best evidence rule” should be applied.
RULING:
            1. The Court of Appeals correctly found that the witness of SIHI was a competent witness as he testified to facts, which he knew of his personal knowledge. Thus, the requirements of Section 36, Rule 130 of the Rules of Court as to the admissibility of his testimony were satisfied.
            Rule 130, Section 36 reads:
            SEC. 36. Testimony generally confined to personal knowledge; hearsay     excluded. – A witness can testify only to those facts which he knows of his   personal knowledge; that is, which are derived from his own perception, except   as otherwise provided in these rules.
           
            Petitioner's reliance on Section 36, Rule 130 of the Rules of Court is misplaced. As a rule, hearsay evidence is excluded and carries no probative value. However, the rule does admit of an exception. Where a party failed to object to hearsay evidence, then the same is admissible.The rationale for this exception is to be found in the right of a litigant to cross-examine. It is settled that it is the opportunity to cross-examine which negates the claim that the matters testified to by a witness are hearsay.However, the right to cross-examine may be waived. The repeated failure of a party to cross-examine the witness is an implied waiver of such right. Petitioner was afforded several opportunities by the trial court to cross-examine the other party's witness. Petitioner repeatedly failed to take advantage of these opportunities. No error was thus committed by the respondent court when it sustained the trial court's finding that petitioner had waived its right to cross-examine the opposing party's witness. It is now too late for petitioner to be raising this matter of hearsay evidence.

            2. Petitioner's admission as to the execution of the promissory note by it through private respondent Arrieta and Bermundo at pre-trial sufficed to settle the question of the genuineness of signatures. The admission having been made in a stipulation of facts at pre-trial by the parties, it must be treated as a judicial admission. Under Section, 4 Rule 129 of the Rules of Court, a judicial admission requires no proof.

            3. Respondent SIHI had no need to present the original of the documents as there was already a judicial admission by petitioner at pre-trial of the execution of the promissory note and receipt of the demand letter. It is now too late for petitioner to be questioning their authenticity. Its admission of the existence of these documents was sufficient to establish its obligation. Petitioner failed to submit any evidence to the contrary or proof of payment or other forms of extinguishment of said obligation. No reversible error was thus committed by the appellate court when it held petitioner liable on its obligation

G.R. No. 119845.  July 5, 1996
GARCIA, vs. COURT OF APPEALS and SECURITY BANK & TRUST COMPANY

FACTS:
            In 1980, Dynetics Inc., through its president, acquired a P25M export loan from Security Bank. In 1982, a credit accommodation (SWAP loan) was opened by Security Bank in favor of Dynetics allowing it to acquire an additional $700k loan. This loan was secured by an Indemnity Agreement signed by Antonio Garcia acting as a surety. This loan was not availed of by Dynetics however.
            In 1993, the SWAP loan was renewed but it was reduced to $500k. This time, Dynetics availed of it. Garcia still acted as surety but there was no Indemnity Agreement involved. Later, Dynetics, without Garcia’s knowledge, executed several Chattel Mortgages in favor of Security Bank.
            Dynetics defaulted from paying. Security Bank foreclosed the mortgages. The proceeds were applied to the SWAP loan leaving a balance of P3.5M. The Export loan has a balance of P464M.
            Security Bank is now demanding Garcia, as surety, to pay for the deficiency in both loans.
            During cross-examination of a witness of SBTC by the petitioner’s lawyer, Atty. Bello, counsel of SBTC, said:
            ATTY. GANGOSO:
                        But, I'm not asking what the counsel is after.  I'm trying to show that the                              Swap Agreement is not covered by a Continuing Agreement of Mr. Garcia,                        because, the Swap Loan Agreement is . . .
            ATTY. BELLO:
                        But we are willing to admit, Your Honor.
            ATTY. GANGOSO:
                        There was a statement, that the Continuing Agreement did not cover the                           Swap Agreement.
            ATTY. BELLO:
                        I'm admitting that as far as the Swap Loan is concerned, this was secured;                        the chattel mortgage only secured the swap loan.
            ATTY. GANGOSO:
                        Considering then, for that matter that I will stop asking Mrs. Marquez                                   between the relations of the Swap Loan Agreement, and the Continuing                           Suretyship.
            ATTY. BELLO III:
                        I was saying that the chattel mortgage more or less, secures the swap                                loan.
                                   
                        (tsn, May 10, 1991 p. 36-37)
ISSUE:
            Whether the above admission on cross-examination is conclusive against SBTC.
RULING:
            YES.
            Judicial admissions verbal or written made by the parties in the pleadings or in the course of the trial or other proceedings in the same case are conclusive, no evidence being required to prove the same and cannot be contradicted unless shown to have been made through palpable mistake or that no such admission was made.
            Insofar as the SWAP loan was concerned, SBTC did away with the Indemnity Agreement and the Continuing Surety, opting instead to rely solely on the chattel mortgage.  The afore-quoted declarations of Atty. Bello in the course of the trial are conclusive.  Such admission is binding and no amount of contradictory evidence can offset it.
            The Supreme Court did not allow SBTC at this time to water down the admission it made in open court, more so after the opposing party relied upon such judicial admission and accordingly dispensed with further proof of the fact already admitted.  An admission made by a party in the course of the proceedings does not require proof.  The record here does not show any attempt on the part of SBTC to contradict such judicial admission on the ground of palpable mistake.




















G.R. No. L-26398            October 25, 1968
TALASTAS vs. ABELLA,.


FACTS:
            Abella and Talastas entered into an oral contract of partnership for the operation of a dance-hall or cabaret, known as the Sambat Recreation Center — hereinafter known as the Center — in Samal, Bataan. Pursuant to said contract, plaintiff contributed one-third (or P1,546.54) and defendant two-thirds (or P3,093.08) of the partnership capital, aggregating P4,639.62, with the understanding that the profits would be divided among them in the same proportion.
            As managing partner, defendant was bound to render an accounting and deliver plaintiff's share in the profits, at the end of each month.After rendering accounts for four (4) months, or beginning from February, 1956, defendant failed and refused to make said accounting or give plaintiff's share in the profits.
            A corner space in the building housing the Center was leased to a refreshment concessionaire, at P6.00 a night, from September to December, 1955 and defendant caused said concessionaire to be ejected from said nook and then operated therein his own refreshment business, since January, 1956.
            In September, 1955, the partnership hired taxi-dancers and lent them, by way of advances, the total sum of P327.00, one third of which had been contributed by the plaintiffand the taxi-dancers had already refunded said sum of P327.00 to the defendant. The latter however had failed and refused to deliver plaintiff's share therein in the aforementioned earnings for the lease of part of the Center and in the proceeds of its operation, as well as to render an accounting thereof.
            Plaintiff prayed, therefore, that said partnership be dissolved and liquidated; that the defendant be ordered to render accounts and to deliver to the plaintiff his share in the proceeds of the operation of the Center, in the monthly rentals received or due for the lease of the corner space above referred to and in the above-mentioned advances made to taxi-dancers, as well as to pay moral damages, attorney's fees and the costs.
            Upon being summoned, the defendant filed an answer denying "the allegations contained" in plaintiff's complaint, alleging that there had been no oral contract of partnership between them and setting up a counterclaim for attorney's fees and moral damages.
            Plaintiff then filed a "motion for summary judgment," upon the ground that "no genuine issue of fact had been raised in defendant's answer," for one and the other:  the same is in the nature of a general denial, and, thus, amounts to an admission of the material averments contained in the complaint
ISSUE:
            Whether the answer of the defendant constitutes a general denial.
RULING:
            YES.
            It should be notedthat "material averment in the complaint, other than those as to the amount of damage, shall be deemed admitted when not specifically denied ...Moreover, to be specific, within the purview of the Rules of Court, a denial must not only"specify each material allegation of fact the truth of which" is not admitted. He must, also, "whenever practicable, ...set forth the substance of the matters which he will rely upon to support his denial." This, the defendant herein has not done.  Defendant's answer limited itself to saying that he "denies the allegations contained in the specific paragraphs of the plaintiff's complaint." Surely, defendant could have said something else about the specific topics of these paragraphs, if he had any concrete matter on which to rely in controverting the allegations made therein, instead of making a mere denial thereof.
            The conclusion is inevitable that defendant has indulged and is indulging in no more than a general denial of the material allegations in plaintiff's complaint.His aforementioned general denial of the material allegations in the complaint resulted in the admission of the truth of said allegations, including the allegation about the oral contract of partnership between the parties.























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