CASE #113 Baclaran Marketing Corp. vs. Fernando C. Nieva and Mamerto Sibulo, Jr. G.R. No. 189881, April 19, 2017 Facts
CASE #113 Baclaran Marketing Corp. vs. Fernando C. Nieva and Mamerto Sibulo, Jr. G.R. No. 189881, April 19, 2017 Facts
CASE #113 Baclaran Marketing Corp. vs. Fernando C. Nieva and Mamerto Sibulo, Jr. G.R. No. 189881, April 19, 2017 Facts
BACLARAN MARKETING CORP. vs. FERNANDO C. NIEVA and MAMERTO SIBULO, JR.
G.R. No. 189881, April 19, 2017
FACTS:
Petitioner BMC is one of the defendants in a civil case for damages arising from a vehicular
collision between a 10-wheeler truck owned by BMC and driven by its employee Ricardo Mendoza,
and a car owned and driven by Mamerto Sibulo, Jr.. The Antipolo Court ruled in favor of BMC and
Mendoza, but was reversed on appeal to CA, thereby awarding Sibulo damages in the total amount
of ₱765,159.55. Writ of Execution was issued against the real properties owned by BMC, and
Fernando C. Nieva emerged as the highest bidder in the auction sale.
In view of the Writ of Possession and Notice to Vacate issued against it, BMC filed a Petition
for Annulment of Judgment before the CA. BMC alleged that its counsel, Atty. lsagani B. Rizon,
committed acts of gross and inexcusable negligence constituting extrinsic fraud, which deprived it of
due process and an opportunity to present its side. BMC averred that it did not know that Sibulo
appealed the 1990 Decision of the Antipolo Court to the CA. It claimed that Atty. Rizon assured BMC
that the 1990 Decision ended the controversy. Had BMC knew of the appeal, it could have opposed
the proceedings or engaged the services of new counsel. BMC invokes extrinsic fraud and lack of
due process as grounds for its petition for annulment of judgment. Nieva and Sibulo assert that BMC
was not deprived of due process, as the records of the CA show that BMC was furnished with a copy
of the decision of the CA and a copy of the entry of judgment. The CA denied BMC's petition for
annulment of judgment.
ISSUE:
Whether the remedy of annulment of judgment (Rule 47, ROC) is available to BMC.
HELD:
No. Rule 47 of the Rules of Court governs actions for the annulment of final judgments, orders,
or resolutions of regional trial courts in civil actions. It is a recourse equitable in character, allowed
only in exceptional cases where there is no available or other adequate remedy. The remedy is
available only when: (1) the petitioner can no longer resort to the ordinary remedies of new trial,
appeal, petition for relief or other appropriate remedies through no fault of the petitioner; (2) The
grounds for the action of annulment of judgment are limited to either extrinsic fraud or lack of
jurisdiction; (3) The action must be filed within four years from the discovery of the extrinsic fraud; and
if based on lack of jurisdiction, must be brought before it is barred by laches or estoppel; and (4) The
petition must be verified, and should allege with particularity the facts and the law relied upon for
annulment, as well as those supporting the petitioner's good and substantial cause of action or
defense, as the case may be.
BMC's petition for annulment of judgment fails to meet the first and second requisites. Extrinsic
fraud refers to a fraud (1) committed to the unsuccessful party by his opponent preventing him from
fully exhibiting his case by keeping him away from court, a false promise of a compromise; or (2)
where the defendant never had knowledge of the suit, being kept in ignorance by the acts of the
plaintiff; or (3) when an attorney fraudulently or without authority connives at his defeat. BMC neither
alleged nor proved that the gross negligence of its former counsel was done in connivance with Nieva
or Sibulo. It is well-settled that the negligence of the counsel binds the client, except in cases where
the gross negligence of the lawyer deprived his client of due process of law. However, mere
allegation of gross negligence does not suffice.