G.G Sportswear v. BDO - case digest PDF

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G. G.SPORTSWEAR MANUFACTURI NG CORP.andNARESH K.GI DWANI ,pet i t i oner s,vs. BANCO DE ORO UNI BANK,I NC. ,PHI LI PPI NE I NVESTMENTONE ( SPVAMC) ,I NC.andTHE OFFI CE OFTHE CLERK OFCOURT AND EX OFFI CI O SHERI FFOFTHE REGI ONALTRI ALCOURT OFMAKATICI TY,BRANCH 133,asr epr esent edbyATTY.ENGRACI O M.ESCASI NAS,JR. ,r espondent s. G. R.No.184434 Febr uar y8,2010 ABAD,J. : Doctr i ne:Thet estf ori ssui ngaTRO orani nj unct i oni swhet hert hef act sshow aneedf orequi t yt oi nt erv enei nor der t opr ot ectper cei vedr i ght si nequi t y .I ngener al ,ahi ghercourtwi l lnotsetasi det het r i alcourt ’ sgr antordeni alofan appl i cat i onf orpr el i mi naryi nj unct i onunl essi tgr avel yabusedi t sdi scr et i onaswheni tl acksj ur i sdi ct i onovert he act i on,i gnor esr e l evantconsi der at i onst hatst i ckoutoft hepar t i es’pl eadi ngs,seest hef act swi t habl ur r edl ens, i gnor eswhati sr el evant ,dr awsi l l ogi calconcl usi ons,orsi mpl yact si nr andom f ashi on. I nj unct i onmaybei ssuedonl ywhent hepl ai nt i ffappear st obeent i t l edt ot hemai nr el i efheasksi nhi scompl ai nt .Thi s meanst hatt hepl ai nt i ff’ sal l egat i onsshoul d show cl ear l yt hathehasacauseofac t i on.Thi smeanst hatheenj oys somer i ghtandt hatt hede f endanthasvi ol at edi t .And,wher et hedef endanti shear dont heappl i cat i onf ori nj unct i on, t het r i alcour tmustconsi der ,t oo,t hewei ghtofhi sopposi t i on. Thepr ovi si onalr emedyofpr el i mi naryi nj unct i on mayonl yber esor t ed t owhen t her ei sapr essi ngnecessi t yt oavoi d i nj ur i ousconsequenceswhi chcannotber emedi edunderanyst andar dofcompensat i on.

Fact s: On Apr i l22,1994,G. G.Sport swearManuf act ur i ngCor p.( G. G.Spor t swear )and Nar esh Gi dwanimor t gaged al oti n Ar anda,Makat i ,andahouseandl oti n Bel Ai rVi l l age,al soi nMakat i ,t oEqui t abl ePCIBank,now ( BDO) ,t osecur ea ₱20, 357, 000. 00l oan. Andaddi t i onal₱11, 643, 000. 00l oan onApr i l25,1996,t hepar t i esamendedt her ealest at emor t gagest oi ncl udesuch l oan. Pe t i t i onerG. G.Spor t swearwasunabl et opayi t sl oans. On Mar ch 15,2005r espondentBDO t ol dG. G.Spor t sweari n al e t t ert hatt hebankt r ansf er r edon t hatdat ei t s" past duel oanobl i gat i onwi t ht hebank, "t ot al i ngUS$12, 257, 581. 31asofDecember31,2004,t oPhi l i ppi neI nvest mentOne ( SPVAMC) ,I nc.( PI O) ," i ncl udi ngal li nt er est ,f ees,char ges,penal t i es,and secur i t i es/col l at er al s,i fany . "Fol l owed by BDO Cer t i ficat i on t hati t" hasassi gned,conveyed,t r ansf er r ed and sol d"t oPI O," on awi t houtr ecour sebasi s,al li t s r i ght s,t i t l e,benefit sandi nt er estt ot heLoanRecei vabl es"ofG. G.Spor t swear . RespondentBDO appl i edwi t ht heExOffici oSher i ffofMakat if ort hef or ecl osur eoft hepr oper t i es.t hesher i ffauct i oned offt heAr andapr oper t yt oBDO onJune21,2007. On Jul y16,2007,t wodaysbef or et her eschedul ed auc t i on oft heBel Ai rpr oper t y ,pet i t i oner sG. G.Spor t swearand Gi dwanifil edan act i onwi t ht heRegi onalTr i alCour t( RTC)ofMakat i ,t oannult hef or ecl osur e,hol dr es pondentBDO i ni ndi r ectcont empt ,awar ddamages,andenj oi nf ur t herf or ecl osur ebyTRO andpr el i mi naryi nj unct i on.Theyal l eged t hat ,asar esul tofBDO’ st r ansf erofG. G.Spor t swear ’ sl oanr ecei vabl est oPI Oi n2005,BDO l ostt her i ghtt of or ecl ose. RespondentBDO deni ed t r ansf err i ngpe t i t i onerG. G.Spor t swear ’ sl oan r ecei vabl est o PI O,st at i ngt hatt heApr i l21, 2005Cer t i ficat i oni ti ssuedwasamer e" gener alcert i ficat i on"t hatdi dnotspeci f ywhi chofsever all oanr ecei vabl eswer e sol dt o PI O.BDO i nf actt r ansf er r ed t o Phi l i ppi ne AssetI nvest ment ,whi ch ent i t y was subsequent l yt aken ov erby r espondentPI O,onl y₱290, 820. 00outofG. G.Spor t swear ’ st ot all oan.BDO at t achedCer t i ficat i onsf r om i t sel fandf r om PI Ot ot heeffectt hatt hecr edi t ssecur ed byt heAr andaand Bel Ai rpr oper t i eshad notbeen t r ansf er r ed t oPI O.The l at t erfil edanansweroft hesamet enor . RTC i ssued an or der ,denyi ng pe t i t i oner s G. G.Spor t swear and Gi dwani ’ s appl i cat i ons f or TRO and pr el i mi nary i nj unct i on.Theyfil ed amot i on f orr econsi der at i on and amot i on t oi nhi bi tt hepr esi di ngj udge,t heRTC deni ed bot h mot i ons.Thi s pr ompt ed G. G.Spor t swearand Gi dwanit o fil ea speci alci vi lact i on ofcert i or ariwi t ht heCour tof Appeal s( CA) TheCAr ender edj udgment ,di smi ssi ngt hepet i t i onf orl ackofmer i t . I ssue: Theonl yi ssuepr esent edi nt hi scasei swhet herornott heCA er r edi n findi ngt hatt heRTC di dnotgr avel yabusei t s di scr et i on when i tdeni ed pe t i t i oner sG. G.Sport swearand Gi dwani ’ sappl i cat i on f orTRO and pr el i mi naryi nj unct i on despi t et hebank’ sappar entassi gnmentofi t scr edi tt oanot herent i t y .

Rul i ng: Pe t i t i oner s G. G.Spor t swear and Gi dwanipoi nt out t hat BDO’ s Mar ch 15,2005 l et t er and i t s Apr i l21,2005 cer t i ficat i on show t hatt hebank al r eadyt r ansf er r ed t oPI O al li t sr i ght st ot hel oan r ecei vabl esofG. G.Spor t swear . Thus,BDO l osti t sr i ghtt of or ecl oset hemor t gageson t hepr oper t i est hatsecur ed t heunpai dl oans,t hus,ent i t l i ng pe t i t i oner st o an or der enj oi ni ng t he f or ecl osur es.Fur t her ,pet i t i oner s cl ai m t hatBDO bl oat ed G. G.Spor t swear ’ s out st andi ngobl i gat i onsucht hati twasbei ngmadet opaymor et hr ought hef or ecl osur et hanwasact ual l ydue. Thet estf ori ssui ngaTRO orani nj unct i oni swhe t hert hef act sshow aneedf orequi t yt oi nt erv enei nor dert opr ot ect per cei vedr i ght si nequi t y .I ngener al ,ahi ghercour twi l lnotsetasi det het r i alcour t ’ sgr antordeni alofan appl i cat i on f orpr el i mi naryi nj unct i on unl essi tgr avel yabused i t sdi scr e t i on aswhen i tl acksj ur i sdi ct i on overt heact i on,i gnor es r el evantconsi der at i onst hatst i ck outoft he par t i es’pl eadi ngs,sees t hef act s wi t h a bl ur r ed l ens,i gnor eswhati s r el evant ,dr awsi l l ogi calconcl usi ons,orsi mpl yact si nr andom f ashi on. I nj unct i onmaybei ssuedonl ywhent hepl ai nt i ffappear st obeent i t l edt ot hemai nr el i efheasksi nhi scompl ai nt .Thi s meanst hatt hepl ai nt i ff’ sal l egat i onsshoul d show cl ear l yt hathehasacauseofac t i on.Thi smeanst hatheenj oys somer i ghtandt hatt hede f endanthasvi ol at edi t .And,wher et hedef endanti shear dont heappl i cat i onf ori nj unct i on, t het r i alcour tmustconsi der ,t oo,t hewei ghtofhi sopposi t i on. Thebank appear st ohaveal r eadyassi gned al lt hel oan r ecei vabl esofG. G.Spor t sweart or espondentPI O.Logi cal l y , BDO nol ongerhad t her i ghtt of or ecl oseon t hemor t gagest hatsecur ed t hel oans.But ,j udgi ngbyi t sanswert ot he compl ai nt ,BDO want ed t hatcor r ect ed.Fori tcl ai med t hati tact ual l y assi gned j usta measl y por t i on ofi t sl oan r ecei vabl est or espondentPI O. Di dt heal l egat i onsoft hepar t i esand t hedocument st heyat t ached t ot hei rpl eadi ngsgi veampl ej ust i ficat i on f ort he i ssuance ofa TRO or pr el i mi nary i nj unct i on or der t o st op t he f or ecl osur e sal e oft he Bel Ai r pr oper t y? Two consi der at i onsmi l i t at eagai nsti t : Fi r st .Themor t gagedpr oper t i eswer eduef orf or ecl osur e.Admi t t edl y ,pet i t i onerG. G.Spor t swearhaddef aul t edon t he l oanssecur edbyt hesubj ectmor t gages.Pe t i t i oner shad,t her ef or e,nor i ghtt ocompl ai naboutl osi ngt hei rpr oper t i est o f or ecl osur e. Second.Thei ssueofwhi chpar t yownst hel oanr ecei vabl esand,consequent l y ,hadt her i ghtt of or ecl oset hemor t gages i sessent i al l yani ssuebet weenBDO andPI O.Thi si ssuei st heconcer nofpet i t i oner sG. G.Spor t swearandGi dwanibut onl yt ot heext entt hatt heyar eent i t l edt oensur et hatt hepr oceedsoft hef or ecl osur esal ewer epai dt ot her i ghtpar t y . RespondentPI O di d notcont estBDO’ sowner shi p oft hel oan r ecei vabl esand i t sr i ghtt of or ecl oset hemor t gages.I t woul d,t her ef or e,makenosenset oi nsi stt hatPI O bet heonet of or ecl osewhen i tdenouncessuch r i ght .Besi des,t he r eales t at emor t gagespr esent edf orf or ecl osur er emai nedi nBDO’ sname .Nodocumenthasbeenpr esent edsuper sedi ng i t . Fort heabover easons,i tcannotbesai dt hatpe t i t i oner sG. G.Spor t swearandGi dwanihaveest abl i shedar i ghtt ot he mai nr el i eft heywant ,af t ert heyhadadmi t t ednotpayi ngt hei rl oans. Whati smor e,t he pr ovi si onalr emedy ofpr el i mi nar yi nj unct i on may onl y ber esor t ed t o when t her ei s a pr essi ng necessi t yt oavoi di nj uri ousconsequenceswhi chcannotber emedi edunderanyst andar dofcompensat i on.Her e,si nce t her ei saval i d causet of or ecl oseon t hemor t gages,pe t i t i oner sG. G.Spor t swearand Gi dwanicannotcl ai mt hatt he i r r epar abl edamaget heywant edt opr eventbyt hei rappl i cat i onf orpr el i mi nar yi nj unct i oni st hel ossoft hei rpr oper t i es t oauct i onsal e....