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    Rule 29 Section 3 G.R. No. 164805

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    atriiacutanda

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    Rule 29 Section 3 G.R. No. 164805

    Uploaded by

    atriiacutanda
    1 views2 pages

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    1 views2 pages

    Rule 29 Section 3 G.R. No. 164805

    Uploaded by

    atriiacutanda

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    [G.R. No.

    164805 April 30, 2008]


    Solid Bank Corporation, now known as Metropolitan Bank and Trust
    Company, petitioner
    vs.
    Gateway Electronics Corporation, Jaime M. Hidalgo and Israel
    Maducdoc, respondents

    Facts: Gateway obtained from Solid Bank four (4) currency denominated
    loans covered by a promissory note. To secure the loans, Gateway assigned
    to Solidbank the proceeds of its Back-end Services Agreement dated June
    25, 2000 with Alliance Semiconductor Corporation (Alliance). Gateway
    failed to comply with its obligations, thus, Solid Bank filed a complaint for
    collection of sum of money.
    Solid Bank filed a iled a Motion for Production and Inspection of
    Documents on the basis of an information received from Alliance, that
    Gateway has already received from Alliance the proceeds/payment of the
    Back-end Services Agreement. The trial court issued an Order dated January
    30, 2001 granting the motion for production and inspection of documents.
    When Gateway was finally able to present the invoices representing the
    billinfs sent by Gateway to Alliance in relation to the Back-end Services
    Agreement, Solid Bank was not satisfied with the documents produced and
    filed a Motion to cite Gateway for Contempt.
    The motion was denied by the trial court, however, citing Section 3(a), Rule
    29 of the Rules of Court, the court ordered that matters regarding the
    contents of the documents sought to be produced but which were not
    otherwise produced by GEC, shall be taken to be established in accordance
    with plaintiff’s claim. This measure was taken by the court for failure of
    Gateway to show diligent efforts to produce by documents.
    Issue: Whether the trial court committed grave abuse of discretion in
    holding that the matters subject of the documents sought to be produced but
    which were not produced by Gateway shall be deemed established in
    accordance with Solidbank’s claim
    Ruling: Yes. The trial court committed grave abuse of discretion in issuing
    the aforesaid Order. Gateway and its officers can only be held liable for
    unjust refusal to comply with the modes of discovery if it is shown that the
    documents sought to be produced were specifically described, material to the
    action and in the possession, custody or control of Gateway. However, the
    documents sought by Solid Bank from Gateway were not particularly
    described.
    Neither can it be said that Gateway did not exert effort in complying with
    the order for production and inspection of documents since it presented the
    invoices representing the billings sent by Gateway to Alliance in relation to
    the Back-end Services Agreement. Good faith effort to produce the required
    documents must be accorded to Gateway, absent a finding that it acted
    willfully, in bad faith or was at fault in failing to produce the documents
    sought to be produced.
    It would have been in the best interest of both parties if Solid Bank instead
    filed a new motion for Production and Inspection of Documents in
    accordance with the Rules and it would have saved them valuable time and
    effort.

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