In a ruling that underscores the importance of adhering to procedural rules, the Supreme Court affirmed the dismissal of a petition due to the petitioners’ failure to comply with court directives and attend a mandatory pre-trial conference. The Court emphasized that while litigation is not a game of technicalities, adherence to procedure ensures the orderly and expeditious administration of justice. This decision serves as a crucial reminder for litigants to strictly comply with court orders and procedural deadlines to avoid adverse consequences, reinforcing the principle that procedural rules are not mere technicalities but essential tools for achieving fair and efficient justice.

Between Procedure and Prudence: When Absence Impacts a Case

This case, Spouses Sergio C. Pascual and Emma Servillion Pascual v. First Consolidated Rural Bank (Bohol), Inc., revolves around a petition for annulment of judgment filed by the Pascual spouses in the Court of Appeals (CA). The root of the dispute traces back to a decision by the Regional Trial Court (RTC) in Butuan City concerning the cancellation of a notice of lis pendens recorded in their Transfer Certificate of Title. The petitioners sought to overturn this decision, but their journey through the appellate process was fraught with procedural missteps, ultimately leading to the dismissal of their petition. The central legal question here is whether the CA correctly dismissed the petition for annulment of judgment based on the petitioners’ failure to comply with procedural rules, specifically their non-appearance at the preliminary conference and their late filing of a motion for reconsideration.

The case unfolded when the petitioners, instead of filing their pre-trial brief as directed by the CA, submitted a Motion for Summary Judgment and a Motion to Hold Pre-Trial in Abeyance. Crucially, neither the petitioners nor their counsel appeared at the scheduled preliminary conference. This absence triggered the application of Rule 18 of the Rules of Court, which mandates the appearance of parties at pre-trial conferences. The CA, in its initial resolution, explicitly cited Sections 4 through 6 of Rule 18, emphasizing the consequences of failing to appear without a valid excuse. The rule states:

Sec. 4. Appearance of parties. – It shall be the duty of the parties and their counsel to appear at the pre-trial. The non­ appearance of a party may be excused only if a valid cause is shown therefor or if a representative shall appear in his behalf fully authorized in writing to enter into an amicable settlement, to submit to alternative modes of dispute resolution, and to enter into stipulations or admission of facts and of documents.

Sec. 5. Effect of failure to appear. – The failure of the plaintiff to appear when so required pursuant to the next preceding section shall be cause for dismissal of the action. The dismissal shall be with prejudice, unless otherwise ordered by the court. A similar failure on the part of the defendant shall be cause to allow the plaintiff to present his evidence ex parte and the court to render judgment on the basis thereof.

Building on this principle, the CA highlighted that a Petition for Annulment of Judgment is an original action where pre-trial is mandatory, as stipulated in Section 6 of Rule 47 of the Rules of Court. Non-appearance leads to the dismissal of the action with prejudice. The CA further clarified that the filing of a pre-trial brief holds the same importance, and the court has the discretion to determine whether pre-trial may be suspended or dispensed with. The Court of Appeals cited Section 1 of Rule 50 of the Rules of Court, which provides grounds for dismissal of appeal, including the failure of the appellant to appear at the preliminary conference under Rule 48, or to comply with orders, circulars, or directives of the court without justifiable cause. The CA stated:

Strict compliance with the Rules is indispensable for the prevention of needless delays and the promotion of orderly and expeditious dispatch of judicial business. Hence, petitioners’ failure to comply with our directives merits dismissal of their petition.

Subsequently, the petitioners’ Motion for Reconsideration was denied due to being filed out of time. The CA noted that motions sent through private messengerial services are deemed filed on the date of the CA’s actual receipt. Since the motion was dispatched via private courier (LBC) on December 9, 2011, but only received by the CA on December 12, 2011, it was deemed filed late, as the deadline was December 9, 2011. The Supreme Court emphasized that the period of appeal was not tolled, thus rendering the assailed resolution final and executory by operation of law. This ruling underscores the importance of not only meeting deadlines but also understanding the specific rules regarding how filings are considered official, especially when using private delivery services.

Addressing the petitioners’ argument that the CA should have resolved their Motion for Summary Judgment before holding the pre-trial, the Supreme Court clarified that while motions for summary judgment can indeed be filed before the pre-trial, their non-resolution does not prevent the holding of the pre-trial. The Court pointed out the proper timeline for filing a Motion of Summary Judgment. Section 1, Rule 35 of the Rules of Court permits a party seeking to recover upon a claim, counterclaim, or cross-claim or seeking declaratory relief to file the motion for a summary judgment upon all or any part thereof in his favor (and its supporting affidavits, depositions or admissions) “at any time after the pleading in answer thereto has been served.”

It is critical to understand that a summary judgment is only appropriate when there is no genuine issue as to any material fact, and the moving party is entitled to a judgment as a matter of law. A genuine issue necessitates the presentation of evidence, distinguishing it from a sham or unsubstantial issue. The Court explained the dynamics of burden of proof in summary judgment proceedings. The party moving for summary judgment bears the burden of proving the absence of any genuine issue of fact. Once this burden is discharged, the burden shifts to the defending party to demonstrate facts sufficient to warrant a defense.

The Supreme Court clarified the purpose of the pre-trial conference, emphasizing that it is an opportunity for the court to consider the propriety of rendering judgment on the pleadings or summary judgment, especially if no such motion was earlier filed. The pre-trial judge may then indicate to the proper party to initiate the rendition of such judgment by filing the necessary motion. The Court stressed that the judge cannot motu proprio render the judgment on the pleadings or summary judgment. In the case of the motion for summary judgment, the adverse party is entitled to counter the motion. Ultimately, the Court ruled that the petitioners could not justify their non-appearance and failure to file their pre-trial brief based on the unresolved motion.

The petitioners also argued that their non-appearance was justified by Administrative Circular No. 3-99 and A.M. No. 03-1-09-SC, which they claimed amended Section 2(g), Rule 18 of the Rules of Court. The Court dismissed this argument, stating that these administrative issuances reaffirmed the mandatory nature of the pre-trial. Administrative Circular No. 3-99 dated January 15, 1999, still affirmed the mandatory character of the pre-trial, to wit:

Failure of the plaintiff to appear at the pre-trial shall be a cause for dismissal of the action. A similar failure of the defendant shall be a cause to allow the plaintiff to present his evidence ex-parte and the court to render judgment on the basis thereof.

A.M. No. 03-1-09-SC (Guidelines to be Observed by Trial Court Judges and Clerks of Court in the Conduct of Pre-Trial and Use of Deposition-Discovery Measures) similarly underscored the mandatory character of the pre-trial, and reiterated that the trial court could then determine “the propriety of rendering a summary judgment dismissing the case based on the disclosures made at the pre-trial or a judgment based on the pleadings, evidence identified and admissions made during pre-trial.” Therefore, the Court concluded that the CA did not err in dismissing the petition, as the petitioners’ procedural missteps were unjustifiable and contrary to established rules and jurisprudence. The decision reinforces the critical importance of adhering to court procedures and deadlines, highlighting that these are not mere technicalities but essential components of a fair and efficient judicial system. The petitioners’ failure to comply with these rules ultimately led to the dismissal of their case, a stark reminder of the consequences of procedural lapses in litigation.

FAQs

What was the key issue in this case?	The key issue was whether the Court of Appeals correctly dismissed the petition for annulment of judgment based on the petitioners’ failure to comply with procedural rules, specifically their non-appearance at the preliminary conference and the late filing of their motion for reconsideration.
Why was the petitioners’ Motion for Reconsideration denied?	The Motion for Reconsideration was denied because it was filed out of time. The CA received the motion via private courier three days after the deadline, and under the 2009 Internal Rules of the Court of Appeals, motions sent through private messengerial services are deemed filed on the date of actual receipt by the court.
Is pre-trial mandatory in a Petition for Annulment of Judgment?	Yes, pre-trial is mandatory in a Petition for Annulment of Judgment. Section 6 of Rule 47 of the Rules of Court stipulates that the failure of the plaintiff to appear at the pre-trial would mean dismissal of the action with prejudice.
Can a Motion for Summary Judgment be filed before the pre-trial?	Yes, a Motion for Summary Judgment can be filed before the pre-trial. Section 1, Rule 35 of the Rules of Court permits a party seeking to recover upon a claim, counterclaim, or cross-claim or seeking declaratory relief to file the motion for a summary judgment upon all or any part thereof in his favor (and its supporting affidavits, depositions or admissions) “at any time after the pleading in answer thereto has been served.”
What happens if a party fails to appear at the pre-trial conference?	According to Rule 18 of the Rules of Court, the failure of the plaintiff to appear at the pre-trial conference may result in the dismissal of the action with prejudice, unless otherwise ordered by the court.
What is a “genuine issue” in the context of a Motion for Summary Judgment?	A “genuine issue” is an issue of fact that calls for the presentation of evidence, as distinguished from an issue that is sham, fictitious, contrived, set up in bad faith, and patently unsubstantial, so as not to constitute a genuine issue for trial.
Who has the burden of proof in a Motion for Summary Judgment?	The party moving for the summary judgment has the initial burden of clearly demonstrating the absence of any genuine issue of fact. After the moving party meets this burden, the opposing party must then show facts sufficient to entitle them to defend.
Does the court have the power to motu proprio render judgment on the pleadings or summary judgment?	No, the pre-trial judge cannot motu proprio render the judgment on the pleadings or summary judgment. In the case of the motion for summary judgment, the adverse party is entitled to counter the motion.

In conclusion, the Supreme Court’s decision in Spouses Sergio C. Pascual and Emma Servillion Pascual v. First Consolidated Rural Bank (Bohol), Inc. reinforces the critical importance of adhering to procedural rules and court directives. Litigants and their counsel must ensure strict compliance with deadlines, mandatory appearances, and other procedural requirements to avoid adverse consequences in their legal proceedings. This case serves as a cautionary tale for those who may underestimate the significance of procedural compliance in the pursuit of justice.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Spouses Sergio C. Pascual and Emma Servillion Pascual v. First Consolidated Rural Bank (Bohol), Inc., G.R. No. 202597, February 08, 2017