Marawi Marantao General Hospital, Inc. v. Court of Appeals

G.R. No. 141008 · 2001-01-16 · J. GONZAGA-REYES, J.: · Primary: Remedial; Secondary: Civil
REITERATION

Facts

The Antecedents: The underlying dispute concerns a Deed of Conditional Sale executed between Marawi-Marantao General Hospital, Inc. (and Atty. Macapanton K. Mangondato) as vendee and the Social Security System (SSS) as vendor for a property. The hospital and Atty. Mangondato alleged that despite fulfilling the conditions of the sale, the SSS refused to execute a Deed of Absolute Sale and subsequently declared the Deed of Conditional Sale a nullity. The hospital and Atty. Mangondato sought specific performance and damages. Procedural History: The hospital and Atty. Mangondato filed a complaint for Specific Performance with Damages against the SSS before the Regional Trial Court (RTC) of Marawi City. The RTC ruled in favor of the hospital and Atty. Mangondato, ordering the SSS to execute an Absolute Deed of Sale and awarding substantial damages. Subsequently, the RTC issued a Writ of Execution and a Notice of Garnishment to enforce its decision. The SSS filed a Petition for Certiorari with the Court of Appeals (CA) challenging these orders. The CA nullified the RTC's orders. The SSS then filed a Petition for Certiorari with the Supreme Court, which is the subject of this decision. The Petition: This Petition for Review on Certiorari seeks to reverse the Court of Appeals' decision that nullified the RTC's orders. The petitioners (Marawi-Marantao General Hospital, Inc. and Atty. Macapanton K. Mangondato) raise three main issues: (1) whether a motion for reconsideration is indispensable before filing a Petition for Certiorari; (2) whether the SSS's appeal to the CA encompassed the entire judgment or only a portion thereof, given the Amended Notice of Appeal; and (3) whether the RTC had jurisdiction to order partial execution of its judgment. The petitioners argue that the SSS should have filed a motion for reconsideration and that the Amended Notice of Appeal clearly indicated an appeal only from the first item of the dispositive portion, making the other items final and executory.

Issue(s)

Whether the filing of a Motion for Reconsideration in the Regional Trial Court is an indispensable requirement or mere procedural technicality before a Petition for Certiorari may be submitted to an appellate court. Whether the respondent's appeal before the Court of Appeals involves the entire judgement of the trial court despite the fact that the Amended Notice Appeal cited only the first subparagraph of the dispositive portion of the appealed decision and conveniently omitted the second, third, fourth and fifth subparagraph thereof. Whether the trial court has jurisdiction to order the partial execution of its judgement insofar as the second, third, fourth, and fifth subparagraphs thereof are concerned.

Ruling

The Supreme Court affirmed the Decision of the Court of Appeals and denied the petition. The Court held that the RTC lost jurisdiction over the case upon the perfection of SSS's appeal, rendering its subsequent orders for execution void. The Court also ruled that while a motion for reconsideration is generally required before filing a petition for certiorari, this requirement is not absolute and can be waived if the lower court acted without jurisdiction.

Ratio Decidendi

On the necessity of filing a Motion for Reconsideration before filing a Petition for Certiorari: The Court reiterated the general rule that a motion for reconsideration is a prerequisite for a petition for certiorari, as it allows the lower court an opportunity to correct its errors. However, the Court emphasized that this rule admits of exceptions. In this case, the RTC had already lost jurisdiction over the subject matter of the case when it issued the questioned orders for execution. Since the RTC acted without jurisdiction, its orders were considered patent nullities, making the filing of a motion for reconsideration a useless formality. Therefore, the Court found the exception applicable, and the Court of Appeals did not err in giving due course to the petition for certiorari filed by SSS despite the absence of a prior motion for reconsideration. On the scope of the appeal based on the Amended Notice of Appeal: The Court interpreted the Amended Notice of Appeal filed by SSS. It noted that while SSS quoted only the first item of the dispositive portion of the RTC's decision and used ellipses ('xxx'), this did not signify an intent to appeal only that specific portion. The Court found that the phrase "which, in part states" preceding the quotation indicated that the quotation was merely illustrative of the dispositive portion. Furthermore, the use of ellipses is standard practice to signify omitted words or passages in quoted material and does not, by itself, limit the scope of the appeal. The Court agreed with the Court of Appeals that the Amended Notice of Appeal clearly indicated an appeal from the entirety of the decision, not just the first item. The Court stressed that a waiver of the right to appeal must be clear and unequivocal, which was not the case here. On the jurisdiction of the trial court to order partial execution: The Court held that once an appeal has been perfected, the RTC loses jurisdiction over the case, except for specific instances like orders for the protection and preservation of the rights of the parties, approval of compromises, or ordering execution pending appeal under Rule 39. In this case, SSS had perfected its appeal from the entirety of the decision. Consequently, the RTC no longer had jurisdiction to issue orders declaring portions of its decision final and executory or ordering the execution of those portions. The orders issued by the RTC after the perfection of the appeal were therefore issued without jurisdiction and were consequently null and void. The Court of Appeals correctly nullified these orders.

Main Doctrine

The filing of a motion for reconsideration is generally required before filing a petition for certiorari, but this requirement is waived when the lower court acts without jurisdiction, rendering its orders void. An amended notice of appeal that quotes only a portion of the dispositive portion of a decision, followed by ellipses, is interpreted as an appeal of the entire decision, not just the quoted part, especially when the use of ellipses is standard for indicating omissions in quoted material.

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