Estrella et al. vs. SM Prime Holdings, Inc.

Posted Feb 20, 2023

By Anonymous

8 min read

Case Title and Citation

Romulo B. Estrella, Cesar B. Angeles, and Felixberto D. Aquino, acting in behalf of and as representatives of heirs of Bartolome P. Rivera, Eleuteria Rivera, Pelagia R. Angeles, Modesta R. Angeles, Venancio R. Angeles, Felipe R. Angeles, Fidela Angeles, Josefa R. Aquino, Gregorio Aquino, and Rosauro R. Aquino of the Maysilo Estate, petitioners, vs. SM Prime Holdings, Inc., respondent.
Tri-City Landholdings, Inc., intervenor-respondent.
G.R. No. 257814; G.R. No. 257944, February 20, 2023
Supreme Court - Second Division
Ponente: Justice M. Lopez

Facts

The subject property (Lot 7-C-2 / Lot 23-A) formed part of the Maysilo Estate, originally covered by multiple mother titles including OCT No. 994; competing registration dates April 19, 1917 and May 3, 1917 featured in litigation.
On September 27, 1961, persons claiming to be heirs of Maria de la Concepcion Vidal filed Land Registration Case No. 4557 seeking substitution on OCT No. 994; an order was issued substituting their names.
A partition petition affecting OCT No. 994 was filed in Civil Case No. C-424 (RTC, Caloocan); commissioners were appointed but no recommendation submitted; the estate was subdivided and lots were sold.
In 2006, Estrella et al. filed a civil action before the RTC to nullify and cancel TCT No. 326321 issued to Gotesco Investment, Inc., claiming they represented the heirs of Vidal and that the subject property had been sold without their consent.
On March 14, 2016, Tri-City Landholdings, Inc. filed a Petition for Intervention, alleging a Deed of Assignment dated October 19, 2009 by Estrella et al. assigning the subject property to Tri-City in exchange for shares.
SM Prime filed a Motion for Substitution on March 18, 2016 to substitute for Gotesco after acquiring the subject property; substitution was permitted.
The RTC denied motions to dismiss and, on April 16, 2018, granted SM Prime’s demurrer to evidence, dismissing the complaint and complaint-in-intervention; reconsideration motions were denied.
Appeals were filed to the Court of Appeals. Estrella et al. failed to file their appellant’s brief within the 45-day period (deadline September 7, 2019); the CA issued a Minute Resolution dated January 31, 2020 declaring the appeal abandoned and dismissed it for failure to file the required brief.
The CA denied motions for reconsideration and motions to admit late briefs in a Resolution dated October 27, 2021, citing lack of acceptable excuse for late filing and treating Tri-City’s intervention as ancillary to the main action.
Estrella et al. filed a Petition for Review on Certiorari under Rule 45 (G.R. No. 257814) and Tri-City filed a related petition (G.R. No. 257944); the petitions were consolidated by this Court.
Procedural defects were identified in G.R. No. 257814: lack of proof of service on the CA, only a photocopy of the assailed resolution attached, insufficient counsel identity proof in affidavit of service, failure to include verification and certification against forum shopping, and misrepresentation that the petition was filed by registered mail when it was sent via private courier.
Counsel’s affidavit claimed mailing on December 23, 2021; the Supreme Court received the petition on January 11, 2022 and treated private courier filing for an initiatory pleading as ordinary mail under the 2019 Amendments.

Issues

Is the Petition docketed as G.R. No. 257814 marred with procedural infirmities warranting outright dismissal?
Did the Court of Appeals correctly dismiss the appeal of Estrella et al. for failure to timely submit the appellants’ brief?
Can the intervention filed by Tri-City proceed as an independent action?

Ruling

Yes - The Petition in G.R. No. 257814 is procedurally deficient and must be dismissed for multiple failures to comply with Rule 45 and related filing requirements.
Yes - The Court of Appeals correctly dismissed Estrella et al.’s appeal as abandoned for failure to timely file the required appellants’ brief; no exceptional circumstances justified leniency.
No - Tri-City’s intervention cannot proceed as an independent action; intervention is ancillary to the main suit and falls when the principal action is dismissed.

Reasoning / Ratio Decidendi

On procedural infirmities (Issue 1):
- Rule 45, Section 1 and Section 4 require a verified petition raising only questions of law and a sworn certification against forum shopping; Section 5 provides dismissal grounds for failure to comply with requirements (Rules of Court, Rule 45, Secs. 1, 4, 5).
- The petition lacked proof of service on the CA, attached only a photocopy of the assailed Resolution, and did not sufficiently identify counsel in the affidavit of service; it also lacked the required verification and certification against forum shopping.
- Under the 2019 Amendments to Rule 13, initiatory pleadings must be filed personally or by registered mail (Section 14, Rule 13); private courier is not an acceptable mode for initiatory pleadings. The petition was thus treated as ordinary mail and the filing date was the date of receipt (January 11, 2022), rendering it untimely.
- Administrative Matter No. 00-2-14-SC governs computation of periods when the last day falls on a weekend/holiday; applying it the petition was still filed beyond the extended filing period.
- The affidavit of service falsely represented registered-mail filing while evidence showed private courier; this misrepresentation justified disciplinary follow-up.
On dismissal for failure to file appellants’ brief (Issue 2):
- Section 7, Rule 44 requires the appellant to file its brief within 45 days from notice that the record is complete. Estrella et al. were given until September 7, 2019 but filed on February 14, 2020.
- Section 1(e), Rule 50 authorizes dismissal for failure to file the required brief; jurisprudence treats non-filing as abandonment absent strong equitable reasons (citing The Government of the Kingdom of Belgium v. Hon. Court of Appeals and related cases).
- Negligence of counsel generally binds the client; exceptions (gross/reckless negligence depriving due process, threat to liberty/property, or interests of justice) were not shown. The CA’s exercise of discretion to dismiss was proper.
On intervention (Issue 3):
- Rule 19, Sec. 1 sets the requirements for intervention: legal interest, non-prejudice/delay, and inability to adjudicate claim properly in separate proceeding.
- Intervention is ancillary and supplemental to the principal action and not an independent suit (Falcis III v. Civil Registrar General). Dismissal of the principal action (Estrella et al.’s appeal/petition) removes the basis for Tri-City’s intervention; thus Tri-City’s petition must also be dismissed.
On disciplinary action against counsel:
- The Supreme Court found counsel’s affidavit to contain false and misleading statements about the mode/date of filing; counsel was ordered to show cause within ten (10) days why administrative action should not be initiated, and the matter was referred to the Office of the Bar Confidant.

Doctrine / Legal Principle

Strict compliance with procedural rules for appellate review under Rule 45 is required; failure to observe filing, verification, and certification requirements justifies dismissal.
Initiatory pleadings must be filed personally or by registered mail; filing by private courier for initiatory pleadings is not acceptable under the 2019 Amendments (Section 14, Rule 13).
The negligence of counsel binds the client; exceptions permitting relief for counsel’s neglect require exceptional circumstances (gross or reckless negligence depriving due process; threat to liberty or property; or interests of justice).
Intervention is ancillary to the principal action and cannot proceed independently; dismissal of the principal action disposes of related interventions.
Misrepresentation in court affidavits is a serious violation that may ground administrative and disciplinary measures against counsel.

Disposition

The consolidated Petitions for Review on Certiorari (G.R. No. 257814 and G.R. No. 257944) are DENIED.
The Resolution dated October 27, 2021 of the Court of Appeals in CA-G.R. CV No. 113161, which dismissed the appeal of Romulo B. Estrella, Cesar B. Angeles, and Felixberto D. Aquino, is AFFIRMED.
The dismissal of the principal petition results in the dismissal of Tri-City’s petition/intervention.
Atty. Mario Bernardo S. Cerro is ORDERED to SHOW CAUSE within a non-extendible period of ten (10) days from receipt of this Decision why he should not be the subject of administrative actions for misrepresentation and other contumacious acts; the action will be docketed as a new and separate administrative case and a copy of this Decision shall be furnished to the Office of the Bar Confidant.

Concurring / Dissenting Opinions

The Decision was concurred in by Associate Justices Leonen (Senior Associate Justice, Chairperson), Lazaro-Javier, M. Lopez (ponente), and Gaerlan.
Vice Justice Kho recused per raffle dated February 8, 2023.
No separate concurring or dissenting opinions were noted in the reported Decision.

Significance / Notes

Reaffirms strict application of procedural requirements in Rule 45 petitions; procedural noncompliance (proof of service, certified copies, verification, certification against forum shopping) can be dispositive.
Clarifies that under the 2019 Amendments initiatory pleadings must be filed personally or by registered mail; use of private courier for initiatory pleadings will be treated as ordinary mail and filing date deemed the date of receipt by the court.
Reiterates precedent that failure to timely file an appellant’s brief may be deemed abandonment of appeal; counsel’s inadvertence or messengerial error is ordinarily imputed to the client absent exceptional circumstances.
Confirms intervention is ancillary to the principal action; an intervenor cannot convert intervention into an independent remedy when the principal action is dismissed.
Emphasizes accountability of counsel: false statements in affidavits of service may lead to administrative discipline and referral to the Office of the Bar Confidant.
The CA and this Court relied on prior decisions regarding the Maysilo Estate and OCT No. 994 (e.g., Manotok Realty, Angeles v. Secretary of Justice, Phil-Ville Development & Housing Corp., Syjuco v. Bonifacio, CLT Realty Development Corp. v. Hi-Grade Feeds Corp.) in evaluating the antecedent title controversies and related defenses.

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