World-Wide Insurance & Surety Co., Inc. v. Court of Appeals

G.R. No. L-40797 · 1987-03-16 · J. PADILLA, J.: · Primary: Commercial; Secondary: Remedial
REITERATION

Facts

1. The Antecedents: Buenaventura Saldana insured his motor vehicle with World-Wide Insurance & Surety Co., Inc. The vehicle, along with the driver, disappeared and remains unlocated. Saldana filed a claim with the insurance company, which refused to pay, citing the assured's subsidiary liability for the driver's actions and a violation of policy conditions regarding safeguarding the vehicle. 2. Procedural History: The parties submitted a stipulation of facts and issues. The trial court ruled in favor of Saldana, ordering the insurance company to pay P15,000.00 plus interest and attorney's fees. The insurance company's motion for reconsideration was denied. Their subsequent appeal to the Court of Appeals was dismissed by the trial court on the grounds that the motion for reconsideration was pro-forma and did not toll the appeal period. The insurance company then filed a petition for certiorari, prohibition, and mandamus with the Court of Appeals, seeking to annul the dismissal of its appeal. The Court of Appeals dismissed this petition, finding it lacked jurisdiction as the case involved questions of law based on stipulated facts. A motion for reconsideration was denied. 3. The Petition: The insurance company filed a petition for certiorari with the Supreme Court, seeking to annul the Court of Appeals' resolution dismissing its petition. However, subsequent to the filing of the petition, counsel for the respondents manifested that the petitioner had satisfied the judgment by paying respondent Buenaventura Saldana P20,700.00.

Issue(s)

Whether the Court of Appeals erred in dismissing the petition for certiorari, and whether the appeal to the Court of Appeals was perfected on time. Whether the case has become moot and academic.

Ruling

The Supreme Court dismissed the case for being moot and academic. It noted that counsel for the respondents manifested that the petitioner had paid respondent Buenaventura Saldana P20,700.00 in satisfaction of the judgment.

Ratio Decidendi

The issues of whether the Court of Appeals erred in dismissing the petition for certiorari and whether the appeal to the Court of Appeals was perfected on time are rendered moot by the satisfaction of the judgment. On the issue of mootness: The Court found the case to be moot and academic. This determination was based on the manifestation made by the counsel for the respondents that the petitioner had already satisfied the judgment rendered by the trial court. Specifically, the payment of P20,700.00 under Filipinas Bank & Trust Co. Check No. 109062, through the Sheriff of Manila, effectively resolved the underlying dispute between the parties. When a judgment has been satisfied, any further proceedings to challenge the validity of that judgment or the procedural steps leading to it become inconsequential. The purpose of the litigation, which was to compel payment of the insurance proceeds, had been fulfilled. Therefore, any ruling on the procedural issues raised by the petitioner would have no practical effect on the rights and obligations of the parties. The Court's duty is to resolve actual controversies, not hypothetical or academic questions. The satisfaction of the judgment rendered the appeal and the subsequent petitions moot and academic, rendering further adjudication unnecessary.

Main Doctrine

A case becomes moot and academic when the issues presented have already been resolved or rendered moot by supervening events, such as the satisfaction of the judgment sought to be enforced.

Access audio review, related cases, codal links, and more.

Open LexMatePH →