9. Sustiguer vs. Tamayo 176 Scra 579

1. Sustiguer Susti guer vs. Tama T amayo, yo, 176 SCRA 579 , August 21, 1989 Case Title : EDITH SUSTIGUER and ISABEL APOSAGA, plaintiffs-appellants, vs. JOSE TA TAA!O A!O and "IT! O# BA"OLOD, defendants-appellees, RAO$ %ILLAAR&O, inte'ven('.Case inte'ven('.Case Nature : APPEAL f'() t*e ('de' (f t*e "(+'t (f #i'st Instane (f $e'(s Oidental. Syllabi Class : Class : "ivil P'(ed+'ePa'tiesReal Pa't/-In-Inte'est(ti(n Pa't/-In-Inte'est(ti(n t( Dis)iss Syllabi : 1. Civil Procedure ;  ; Parties  Parties ;  ; Real  Real Party-In-Interest   ; As a general rule, one having no right or interest to protect cannot invoke the jurisdiction of the court as party plaintiff in an action. + 2. Civil Procedure ;  ; Parties  Parties ;  ; Real  Real Party-In-Interest   ; The interest appellant had, if any, on the disputed lot is not the “material interest” contemplated under the Rules. + 3. Civil Procedure ;  ; Parties  Parties ;  ; Real  Real Party-In-Interest   ; Motion  ;  Motion to Dismiss ; here the plaintiff is not the real party!in!interest, the proper ground for a motion to dismiss is lack of cause of action. + . Civil Procedure ;  ; Parties  Parties ;  ; Real  Real Party-In-Interest   ; Motion  ;  Motion to Dismiss ; hen the ground for a motion to dismiss is that the complaint states no cause of action, no evidence may "e allo#ed, and the issues shall only "e determined in the light of the allegations in the complaint. +  ; Parties  Parties ;  ; Real  Real Party-In-Interest   ; $n an action upon a 5. Civil Procedure ; contract, a party #ho has not taken part in i n the su"ject contract cannot sue or "e sued for performance or for cancellation thereof, unless it is sho#n that he has a real interest affected there"y. +

!ivisio":: THIRD DI%ISIO$ !ivisio" !o#$et Number: Number: G.R. $(. 01234 Cou"sel:: elani( O. Lalisan, !+l( 5 Ass(iates Cou"sel %o"e"te:: #ER$A$ %o"e"te !is&ositive %ortio": %ortio": 6HERE#ORE, t*e appeal is *e'e7/ dis)issed f(' la8 (f )e'it. T*e ('de', dated Dee)7e' 9, 41, dis)issin t*e ()plaint f(' la8 (f a+se (f ati(n, as ;ell as t*e ('de' dated Jan+a'/ 04 S"RA = S"RA 2=9  44> S"RA 09  VOL. 176, AUGUST 21,, 1989 579 Sustiguer vs. Tamayo G.R. o. 29!"1. August 21, 1989.# $%&T' SUST&GU$R a() &SA*$L A+OSAGA, -ai(tis/ae--a(ts, vs. 0OS$ TAAO a() 3&T O4 *A3OLO%, )ee()a(ts/ae--ees, RAO V&LLAARO, i(terve(or. 3ivi- +roe)ure +arties Rea- +arty/&(/&(terest As a ge(era- ru-e, o(e avi(g (o rigt or i(terest to rotet a((ot i(vo:e te ;uris)itio( o te ourt as arty -ai(ti i( a( atio(.asia--y remise) o( te roe)ura- ru-e set ort u()er Setio( 2 o Ru-e ! o te Ru-es o 3ourt tat every atio( must >e roseute) a() )ee()e) i( te (ame o te rea- arty/i(/i(terest a() tat a-- erso(s avi(g a( i(terest i( te su>;et o te atio( a() i( o>tai(i(g te re-ie )ema()e) sa-- >e ;oi(e) as -ai(tis. ? ? ? Te rea- arty/i(/i(terest is te arty =o sta()s to >e >e(e@te) or i(;ure) >y te ;u)gme(t or te arty e(tit-e) to te avai-s o te suit. &(terestB =iti( te mea(i(g o te ru-e mea(s materia- i(terest, a( i(terest i( issue a() to >e aete) >y te )eree, as )isti(guise) rom mere i(terest i( te Cuestio( i(vo-ve), or a mere i(i)e(ta- i(terest. As a ge(era- ru-e, o(e avi(g (o rigt or i(terest to rotet a((ot i(vo:e te ;uris)itio( o te ourt as a arty/-ai(ti i( a( atio(. Same Same Same Te i(terest ae--a(t a), i a(y, o( te )isute) -ot is (ot te materia- i(terestB o(tem-ate) u()er te Ru-es.e- Aosaga =it)re= er om-ai(t as se is (o -o(ger i(tereste) i( roseuti(g er -aim over te )isute) -ot. De( te =it)ra=a- o er om-ai(t =as a--o=e) >y te -o=er ourt, te mere a--egatio( o $)it Sustiguer tat se as a reere(tiarigt to urase te )isute) -ot o( te >asis o te at tat se atua--y ouie) te same togeter =it &sa>e- Aosaga )oes (ot give rise to a ause o atio( i()ee()e(t rom tat =i as >ee( =it)ra=(. Ae--a(t $)it Sustiguer a((ot -aim a( i(terest to rotet over te )isute) -ot as se is (ot a rea- arty/i(/ i(terest =o =ou-) >e >e(e@te) or i(;ure) >y te ;u)gme(t i( te eve(t triaroee)e) i( te i(sta(t ase. Te i(terest ae--a(t a), i a(y, o( te )isute) -ot a((ot >e ategoriEe) as materia- i(terest =iti( te mea(i(g o Setio( 2, Ru-e ! o te Ru-es o 3ourt o(si)eri(g tat it is o(ti(ge(t uo( te @(a- e?eutio( o te o(trat o sa-e o( i(sta--/  FFFFFFFFFFFFFFF 

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58 SU+R$$ 3OURT R$+ORTS AOTAT$% Sustiguer vs. Tamayo me(t i( avor o &sa>e- Aosaga uo( om-ia(e =it te reCuireme(ts o Or)i(a(e o. 1"9, Series o 1958 o te 3ity Gover(me(t o *ao-o). Same Same Same otio( to %ismiss Dere te -ai(ti is (ot te rea- arty/i(/ i(terest, te roer grou() or a motio( to )ismiss is -a: o ause o atio(.ei(g te rea- arty/i(/ i(terest. 'e(e, te )ismissa- o te om-ai(t or -a: o ause o atio( is roer u()er te irumsta(es i( te i(sta(t ase. 4or, it is =e--/sett-e) tat =ere te -ai(ti is (ot te rea- arty/i(/i(terest, te grou() or te motio( to )ismiss is -a: o ause o atio(. Same Same Same Same De( te grou() or a motio( to )ismiss is tat te om-ai(t states (o ause o atio(, (o evi)e(e may >e a--o=e), a() te issues sa-- o(-y >e )etermi(e) i( te -igt o te a--egatio(s i( te om-ai(t.e )etermi(e) >y o(si)eri(g te ats a--ege) i( te om-ai(t a() (o oter, te test >ei(g =eter te ourt a( re()er a va-i)  ;u)gme(t rom te ats set ort. Te ru-e is tat =e( te motio( to )ismiss is >ase) o( te grou() tat te om-ai(t states (o ause o atio(, (o evi)e(e may >e a--o=e) a() te issue sou-) o(-y >e )etermi(e) i( te -igt o te a--egatio(s o  te om-ai(t. Tus it =as erro(eous or ae--a(t to -aim tat te -o=er ourt sou-) ave o()ute) a tria- o( te merits i(stea) o )ismissi(g te om-ai(t uo( a mere motio(. Same Same Same &( a( atio( uo( a o(trat, a arty =o as (ot ta:e( art i( te su>;et o(trat a((ot sue or >e sue) or erorma(e or or a(e--atio( tereo, u(-ess it is so=( tat e as a rea- i(terest aete) tere>y.et=ee( te arties =o ma)e it, a() a-so teir assig(s a() eirs, e?et i( ases =ere te rigts a() o>-igatio(s arisi(g rom te o(trat are (ot tra(smissi>-e >y teir (ature, or >y stiu-atio( or >y rovisio( o -a=. Si(e a o(trat may >e vio-ate) o(-y >y te arties tereto as 581

VOL. 176, AUGUST 21, 1989 581 Sustiguer vs. Tamayo agai(st ea oter, i( a( atio( uo( tat o(trat, te rea- arties/i(/i(terest, eiter as -ai(ti or as )ee()a(t, must >e arties to sai) o(trat. Tereore, a arty =o as (ot ta:e( art i( it a((ot, sue or >e sue) or erorma(e or or a(e--atio( tereo, u(-ess e so=s tat e as a rea- i(terest aete) tere>y. &( or)er tat o(e =o is (ot o>-igate) i( a o(trat eiter ri(ia--y or su>si)iari-y may mai(tai( a( atio( or (u--iyi(g te same, te reor) must so= te i(;ury tat =ou-) ositive-y resu-t to im rom te o(trat i( =i e as (ot i(terve(e) i( o((etio( =it at -east o(e o te o(trati(g arties. A++$AL rom te or)er o te 3ourt o 4irst &(sta(e o egros Oi)e(ta-.

 Te ats are state) i( te oi(io( o te 3ourt. e-a(io O. La-isa( or -ai(tis/ae--a(ts. u-o J Assoiates or 0ose Tamayo. 4$RA, 3.0.K

Assai-e) i( te i(sta(t aea- e-evate) to tis 3ourt o( a Cuestio( o -a= >y ae--a(t $)it Sustiguer are te or)er )ate) %eem>er 8, 19771 issue) >y te te( 3ourt o 4irst &(sta(e o egros Oi)e(ta-, *ra( &V, )ismissi(g or -a: o ause o atio( ae--a(tIs om-ai(t or a((u-me(t o sa-e o( i(sta--me(t a() a=ar) o Lot o. !79/*/!", as =e-- as te or)er )ate) 0a(uary !, 1968,2 )e(yi(g te motio( or reo(si)eratio( o te aoresai) or)er.  Te o(troversy at >ar i(vo-ves a 2!"/sCuare meter -ot :(o=( as Lot o. !79/*/!" situate) at te or(er o Laso( a() *urgos Sts., *ao-o) 3ity, egros Oi)e(ta-. &t is o(e o te "2 -ots aCuire) >y te 3ity Gover(me(t o *ao-o) rom te )eu(t Rea>i-itatio( 4i(a(e 3ororatio(, (o= te %eve-ome(t *a(: o te +i-ii(es, =i -ots =ere -ater o(verte) i(to a su>)ivisio( :(o=( as *ao-o) 3ity R43 Su>)ivisio( or sa-e to Cua-i@e) oua(ts. Te ru-es a() regu-atio(s gover(i(g te sa-e o sai) su>)ivisio( -ots are o(tai(e) i( Or)i(a(e o. 1"9,  FFFFFFFFFFFFFFF 

1 Reor) o( Aea-, . 99/12, Ro--o, . 9. 2 &>i)., . 129/1!2. 582

582 SU+R$$ 3OURT R$+ORTS AOTAT$% Sustiguer vs. Tamayo Series o 1958, e(ate) >y te 3ity 3ou(i- o *ao-o). Si(e u()er Or)i(a(e o. 1"9, tere sa-- >e o(-y o(e 1M >uyer or a=ar)ee or a su>-ot, te a)verse ossessors o Lot o. !79/*/!" =ere i(vite) to te OHe o te 3ity ayor or a )etermi(atio( o =o te a=ar)ee sa-- >e. Te reor)s so= tat o( ovem>er 2, 196, te OHe o te ayor a=ar)e) te -ot i( Cuestio( to &sa>eAosaga as o--o=sK Lot o. !79/*/!" &( o((etio( =it te a=ar) o Lot o. !79/*/!", it is agree) >et=ee( $%&T' SUST&GU$R a() &SA*$L A+OSAGA tat te a=ar) o te sai) -ot >e give( to &SA*$L a() tat a )o=( ayme(t o t=e(ty ere(t 2NM o te tota- ost o te -ot sa->e ma)e o( or >eore ovem>er 15, 196. 4ai-ure to ma:e te )o=( ayme(t o( sai) )ate, te 3ity o *ao-o) =i-- >e ree to )isose or a=ar) te -ot to a(y o te a-ia(ts. AGR$$% *$4OR$ me tis 2() )ay o ovem>er, at te OHe o te ayor, 3ity o *ao-o). SG%.M $R&U$ V. OL$%O Seretary to te ayorB!

Aor)i(g-y, te OHe o te ayor issue) te o--o=i(g erti@ateK R$+U*L&3 O4 T'$ +'&L&++&$S 3&T O4 *A3OLO% OHe o te ayor

LOT O. !79/*/!" Dit te o(ormity o te i(tereste) arties a() =itout resorti(g to a raPe Lot o. !79/*/!" is ere>y a=ar)e) to rs. &sa>e- Aosaga, atua- oua(t o Lot o. !79/*/!". 3ity o *ao-o), ovem>er !, 196. SG%.M $R&U$ V. OL$%O Seretary to te ayorB"

 FFFFFFFFFFFFFFF 

! 0oi(t *rie or te %ee()a(ts/Ae--ees, . 8/9. " &>i)., . 9/1. 58!

VOL. 176, AUGUST 21,, 1989 58! Sustiguer vs. Tamayo De( &sa>e- Aosaga =e(t to te Seretary o te ayor to ma:e te )o=( ayme(t, se =as a--ege)-y a)vise) to ome >a: -ater as te Seretary =as out o to=(. 'avi(g tus ai-e) to ma:e te reCuire) )o=( ayme(t, Aosaga =as (ot a>-e to eet te e?eutio( o te sa-e. Su>seCue(t-y, o( ay 16, 1961, te 3ity Gover(me(t o *ao-o), tru te 3ity ayor e?eute) a 3o(trat o Sa-e o( &(sta--me(t over sai) Lot o. !79/*/!" i( avor o o(e 0ose Tamayo. O( te ri(ia- a--egatio( tat te 3ity Gover(me(t o *ao-o) so-) Lot o. !79/*/ !" to 0ose Tamayo =itout (otie to $)it Sustiguer a() &sa>e- Aosaga or a(y o(e o tem i( vio-atio( o its ommitme(t to a=ar) sai) -ot to tem, $)it Sustiguer a() &sa>e- Aosaga @-e) o( ar 8, 1962 a om-ai(t )o:ete) as 3ivi- 3ase o. 6528 or a((u-me(t o te sa-e o( i(sta--me(t a() a=ar)5 o sai) -ot agai(st te Gover(me(t o *ao-o) a() 0ose Tamayo, -aimi(g tat te -atter is (eiter Cua-i@e) to a-y or te a=ar) (or to urase te sai) -ot u()er te rovisio(s o Or)i(a(e o. 1"9, Series o 1958. &t =as a-so -aime) tat ater te e?eutio( o te sa-e >et=ee( Tamayo a() te 3ity o *ao-o), te ormer ma-iious-y @-e) 3ivi3ase o. 2867 or u(-a=u- )etai(er agai(st Aosaga a() Sustiguer >eore te u(iia- 3ourt o te same 3ity.  Te 3ity Gover(me(t o *ao-o) a() 0ose Tamayo @-e) teir resetive a(s=ers,6 )e(yi(g tat te Seretary o te ayor =as a>se(t )uri(g te a--ege) erio) =e( Aosaga ai-e) to )eosit te reCuire) t=e(ty ere(t 2NM o te tota- ost o te -a() u()er -itigatio( a() tat >eause o su ai-ure -ai(tis -ost =atever reere(tia- rigts tey may ave terei(. Tereater, Ramo( Vi--amarEo, uo( >ei(g a--o=e) to i(terve(e, @-e) o( August 1, 196", a om-ai(t i( i(terve(tio(,7 -aimi(g amo(g oters to ave >ee( ouyi(g 2Q! o su>;et -a() or te -ast te( 1M years >y virtue o a ouse >ui-t tereo(, a() as tereore, te reere(tia- rigt to urase te same -a() u()er Setio( !, aragra >M o sai) 3ity Or)i(a(e o. 1"9 a() rayi(g,  FFFFFFFFFFFFFFF 

5 &>i)., . 1/1". 6 Reor) o( Aea-, . !"/5, Ro--o, . 9. 7 &>i)., . 5!/62. 58"

58" SU+R$$ 3OURT R$+ORTS AOTAT$% Sustiguer vs. Tamayo amo(g otersK a tat te o(trat e?eute) >y te 3ity ayor o *ao-o) 3ity a()  0ose Tamayo >e )e-are) as =itout avi(g om-ie) =it te reCuisites o aoresai) Or)i(a(e a() > tat e >e give( reere(e to aCuire Lot o. !79/*/!". O( August 11, 1967, or @ve 5M years a() @ve 5M mo(ts ater te om-ai(t =as @-e), &sa>e- Aosaga, o(e o te arties/-ai(tis, @-e) a otio( to Dit)ra= 3ivi3ase o. 6528 a() 3o(ess 0u)gme(t i( 3ivi- 3ase o. 7512,B8 )e-ari(g tat se a) >ee( ai) or a-- er -aim i( sai) ase, e(e, se is (o -o(ger i(tereste) i( its roseutio(. $)it Sustiguer, or er art, @-e) o( Setem>er 8, 1967 a ma(iestatio(9 stati(g tat te =it)ra=a- o &sa>e- Aosaga as arty/-ai(ti i( 3ivi- 3ase o. 6528 A((u-me(t o Sa-e o( &(sta--me(t a() A=ar)M a() as arty )ee()a(t i( 3ivi- 3ase o. 7512 )oes (ot a(ge te status a() arater o te sai) ases o(si)eri(g tat se =as mere-y aommo)ate) >y er o/)ee()a(t i( ouyi(g te -ot i( Cuestio(. O( Setem>er 9, 1967, te -o=er ourt issue) a( or)er1 a--o=i(g te =it)ra=a- o  &sa>e- Aosaga as arty -ai(ti, =o =as aor)i(g-y )e-are) out o te ase. O( Setem>er 16, 1967, 0ose Tamayo move) or a re-imi(ary eari(g o( is aHrmative a() seia- )ee(ses a() tereater to )ismiss >ot te om-ai(t a() om-ai(t i( i(terve(tio( i(vo:i(g Setio( 5 o Ru-e 16 o te Ru-es o 3ourt.11 'e raye) tat e >e a--o=e) to su>mit a =ritte( memora()um i( suort o is aHrmative a() seia- )ee(ses.  0ose Tamayo @-e) o( Setem>er 28, 1967 is memora()um12 o( te issue =eter or (ot $)it Sustiguer as a(y ause o atio( agai(st te )ee()a(ts as so=( >y te reita- o te om-ai(t. $)it Sustiguer, o( te oter a(), @-e) o( Oto>er 11, 1967, a( oositio( to te motio( to )ismiss or -a: o ause  FFFFFFFFFFFFFFF 

8 &>i)., . 75/77 =i-e te reor) )oes (ot so i()iate, it is assume) tat 3ivi3ase o. 7512 reers to te u(-a=u- )etai(er ase =i =as te( o( aea- >eore te 34& o *ao-o). 9 &>i)., . 77/79. 1 Reor) o( Aea-, . 79/8, Ro--o, . 9. 11 &>i)., . 8/82. 12 &>i)., . 82/86. 585

VOL. 176, AUGUST 21,, 1989 585 Sustiguer vs. Tamayo o atio( a() move) or ;u)gme(t o( te -ea)i(gs ursua(t to Setio( 1 o Ru-e 19 o te Ru-es o 3ourt.1! O( %eem>er 8, 1967, te -o=er ourt issue) a( or)er1" )ismissi(g te om-ai(t o $)it Sustiguer or -a: o ause o atio(, stati(g tusK Te a--egatio(s i( te om-ai(t so= a ause o atio( i( avor o -ai(ti &sa>eAosaga >ut (o(e i( avor o te -ai(ti $)it Sustiguer. Ater te -ai(ti &sa>eAosaga a) =it)ra=( er om-ai(t, tere is (o more ause o atio( -et i( avor o te remai(i(g -ai(ti $)it Sustiguer. Tis roviso i( te 3ourtIs or)er sim-y mea(s tat i $)it Sustiguer a) a(y ause o atio( u()er te om-ai(t, te( su ause o atio( sa-- remai( sta()i(g (ot=itsta()i(g te =it)ra=a- o &sa>eAosaga. *ut te or)er o tis 3ourt i( Cuestio( )i) (ot reate a ause o atio( i( avor o te -ai(ti $)it Sustiguer. Te or)er o tis 3ourt mere-y reserves a() :ees i(tat =atever ause o atio( =as e?isti(g i( avor o te -ai(ti $)it Sustiguer >ut i tere =as (o(e at te >egi((i(g, te( te or)er o tis 3ourt ou-) (ot reate o(e i( er avor.B $)it Sustiguer te( @-e) o( 0a(uary 2, 1968 a motio( or reo(si)eratio( a() (e= tria- -aimi(g tat te )ismissa- o te om-ai(t is o(trary to -a= as tere =as (o re-imi(ary eari(g a() tat as -ai(ti se sti-- as a va-i) ause o atio( eve( ater te =it)ra=a- o &sa>e- Aosaga rom te ase as se =as sui(g i( er o=( rigt as a( a=ar)ee e(tit-e) to te a=ar) i( Cuestio(.15 Ater 0ose Tamayo @-e) is oositio(16 to te motio( or reo(si)eratio( a() (e= tria-, te -o=er ourt issue) a( or)er17 o( 0a(uary 2, 1968 )e(yi(g te motio( or reo(si)eratio( a() (e= tria-. 'e(e, tis aea- >y $)it Sustiguer assig(i(g te o--o=i(g errorsK  FFFFFFFFFFFFFFF 

1! &>i)., . 88/98. 1" &>i)., . 99/12. 15 Reor) o( Aea-, . 1!/12" Ro--o, . 9. 16 &>i)., . 12"/128. 17 &>i)., . 129/1!2. 586

586 SU+R$$ 3OURT R$+ORTS AOTAT$% Sustiguer vs. Tamayo &

 T'$ LOD$R 3OURT 3O&TT$% A $RROR O4 LAD & %&S&SS&G T'$ 3O+LA&T D&T'OUT 'OL%&G A TR&AL O T'$ $R&TS O A $R$ OT&O O4 T'$ A++$LL$$  T'AT T'$ SA&% 3O+LA&T STAT$S O 3AUS$ O4 A3T&O ALT'OUG' T'$ ALL$GAT&OS T'$R$& AR$ SU44&3&$T TO 3OST&TUT$ T'$ 3AUS$S O4 A3T&O AGA&ST T'$ A++$LL$$S. &&

 T'$ LOD$R 3OURT 3O&TT$% A $RROR O4 LAD & A&G A SD$$+&G 3O3LUS&O T'AT A4T$R &SA*$L A+OSAGA D&T'%R$D AS +ART/+LA&T&44 4RO  T'$ 3O+LA&T, T'$R$ &S O OR$ 3AUS$ O4 A3T&O L$4T & 4AVOR O4 T'$ R$A&&G +LA&T&44 $%&T' SUST&GU$R, T'$ '$R$& A++$LLAT. De aHrm te or)er o )ismissa- o ae--a(tIs om-ai(t or -a: o ause o atio(.  Te -o=er ourt )ismisse) te om-ai(t ater &sa>e- Aosaga, a o/-ai(ti o ae--a(t, erei(, =it)re= er om-ai(t, =i =as a--o=e) >y te -o=er ourt i( its or)er )ate) Setem>er 9, 1967, tus -eavi(g ae--a(t erei(, $)it Sustiguer, as te remai(i(g arty/-ai(ti.  Te )ismissa- o te om-ai(t or -a: o ause o atio( i( te i(sta(t ase =as >asia--y remise) o( te roe)ura- ru-e set ort u()er Setio( 2 o Ru-e ! o te Ru-es o 3ourt tat every atio( must >e roseute) a() )ee()e) i( te (ame o te rea- arty/i(/i(terest a() tat a-- erso(s avi(g a( i(terest i( te su>;et o te atio( a() i( o>tai(i(g te re-ie )ema()e) sa-- >e ;oi(e) as -ai(tis. Setio( 2, Ru-e ! o te Ru-es o 3ourt rovi)es, tusK

S$3. 2. +arties i( i(terest.e roseute) a() )ee()e) i( te (ame o te rea- arty/i(/i(terest. A-- erso(s avi(g a( i(terest i( te su>;et o te atio( a() i( o>tai(i(g te re-ie )ema()e) sa-- >e ;oi(e) as -ai(tis. ? ? ?B  Te rea- arty/i(/i(terest is te arty =o sta()s to >e >e(e@te) or i(;ure) >y te  ;u)gme(t or te arty e(tit-e) to te 587

VOL. 176, AUGUST 21,, 1989 587 Sustiguer vs. Tamayo avai-s o te suit.18 &(terestB =iti( te mea(i(g o te ru-e mea(s materiai(terest, a( i(terest i( issue a() to >e aete) >y te )eree, as )isti(guise) rom mere i(terest i( te Cuestio( i(vo-ve), or a mere i(i)e(ta- i(terest.19 As a ge(eraru-e, o(e avi(g (o rigt or i(terest to rotet a((ot i(vo:e te ;uris)itio( o te ourt as a arty/-ai(ti i( a( atio(.2 &( te i(sta(t ase, te reita-s o te om-ai(t @-e) >eore te -o=er ourt see: ri(ia--y to a((u- a() set asi)e te 3o(trat o Sa-e o( &(sta--me(t e?eute) >y a() >et=ee( te 3ity Gover(me(t o *ao-o) a() 0ose Tamayo o( ay 16, 1961 a() i( -ieu tereo to or)er te 3ity Gover(me(t o *ao-o) to e?eute a 3o(trat o  Sa-e o( &(sta--me(t i( avor o te -ai(tis.21 Te a--e(ge o( te va-i)ity o te o(trat o sa-e o( i(sta--me(t is a(ore) o( te a--egatio( tat te 3ity Gover(me(t o *ao-o) vio-ate) its ommitme(t to a=ar) Lot o. !79/*/!" to te -ai(tis terei( =e( it a=ar)e) a() so-) te )isute) -ot to o(e 0ose Tamayo =o is (eiter Cua-i@e) to a-y or te a=ar) (or to urase te same u()er te rovisio(s o Or)i(a(e o. 1"9, Series o 1958. 4rom te a--egatio(s o te om-ai(t, it aears tat &sa>e- Aosaga a() $)it Sustiguer ;oi(t-y -aime) tat tey are Cua-i@e) a() e(tit-e) to urase Lot o. !79/*/!" or te reaso( tat u()er Setio( !, ar. aM o Or)i(a(e o. 1"9, Series o 1958, tey ossess te reere(tia- rigt to >uy te same rom te 3ity Gover(me(t o *ao-o), >ei(g te atua- oua(t or oua(tsB o te )isute) -ot. &( te same om-ai(t, o=ever, it =as )is-ose) >y te -ai(tis tat te )isute) -ot =as a=ar)e) >y te OHe o te 3ity ayor to -ai(ti &sa>e- Aosaga i( aor)a(e =it Or)i(a(e o. 1"9, Series o 1958, as state) i( te oHiastateme(t )ate) ovem>er 2, 19622 a() Cuote) at te same time i( te erti@ate  FFFFFFFFFFFFFFF 

18 $state o George Litto( v. e()oEa, G.R. o. "912, 0u(e !, 1988 Lee v. 0u)ge Romi--o, G.R. o. 69!7, ay 28, 1988 Su>i)o v. 3ity o a(i-a, 18 +i-. "62 196M.

19 'ouse &(ter(atio(a- *ui-)i(g Te(a(ts Assoiatio(, &(. v. &(terme)iate Ae--ate 3ourt, 151 S3RA 7! 1987M. 2 !9 Am 0ur 858. 21 Reor) o( Aea-, . 1!/1", Ro--o, . 9. 22 Reor) o( Aea-, . 8, Ro--o, . 9. 588

588 SU+R$$ 3OURT R$+ORTS AOTAT$% Sustiguer vs. Tamayo issue) >y te OHe o te ayor, )ate) ovem>er !, 196 to te eet tat Lot o. !79/*/!" is a=ar)e) to rs. &sa>e- Aosaga, atua- oua(t o Lot o. !79/*/!".2! &( oter =or)s, o( te >asis a-o(e o te materia- a() re-eva(t ats -ea)e) i( te om-ai(t, =atever reere(tia- rigt a--ege)-y -aime) >y ae--a(t, $)it Sustiguer or i(terest i( te a=ar) o te )isute) -ot is o(ti(ge(t uo( te @(aa=ar) to a() su>seCue(t e?eutio( o a o(trat o sa-e i( avor o &sa>e- Aosaga >y te 3ity Gover(me(t o *ao-o) uo( om-ia(e >y te ormer =it te reCuireme(ts o te or)i(a(e. Reor)s, o=ever, revea- tat &sa>e- Aosaga =it)re= er om-ai(t as se is (o -o(ger i(tereste) i( roseuti(g er -aim over te )isute) -ot. De( te =it)ra=a- o er om-ai(t =as a--o=e) >y te -o=er ourt, te mere a--egatio( o $)it Sustiguer tat se as a reere(tia- rigt to urase te )isute) -ot o( te >asis o te at tat se atua--y ouie) te same togeter =it &sa>e- Aosaga )oes (ot give rise to a ause o atio( i()ee()e(t rom tat =i as >ee( =it)ra=(. Ae--a(t $)it Sustiguer a((ot -aim a( i(terest to rotet over te )isute) -ot as se is (ot a rea- arty/i(/i(terest =o =ou-) >e >e(e@te) or i(;ure) >y te ;u)gme(t i( te eve(t tria- roee)e) i( te i(sta(t ase. Te i(terest ae--a(t a), i a(y, o( te )isute) -ot a((ot >e ategoriEe) as materia- i(terest =iti( te mea(i(g o Setio( 2, Ru-e ! o te Ru-es o 3ourt o(si)eri(g tat it is o(ti(ge(t uo( te @(a- e?eutio( o te o(trat o sa-e o( i(sta--me(t i( avor o &sa>e- Aosaga uo( om-ia(e =it te reCuireme(ts o Or)i(a(e o. 1"9, Series o 1958 o te 3ity Gover(me(t o *ao-o). U()er te ats -ea)e) i( te om-ai(t, it aears =it ertai(ty tat ae--a(t $)it Sustiguer is (ot e(tit-e) to te re-ie raye) or, se (ot >ei(g te rea- arty/ i(/i(terest. 'e(e, te )ismissa- o te om-ai(t or -a: o ause o atio( is roer u()er te irumsta(es i( te i(sta(t ase. 4or, it is =e--/sett-e) tat =ere te -ai(ti is (ot te rea- arty/i(/i(terest, te grou() or te motio( to )ismiss is -a: o ause o   FFFFFFFFFFFFFFF 

2! &>i)., . 9. 589

VOL. 176, AUGUST 21,, 1989 589 Sustiguer vs. Tamayo atio(.2" A-toug te grou() o -a: o ause o atio( =as -ea)e) >y ae--ee 0ose Tamayo as o(e o is seia- a() aHrmative )ee(ses i( is a(s=er, te sai) grou() or )ismissa- o te om-ai(t may >e ear) re-imi(ari-y as i a motio( to )ismiss a) >ee( @-e) ursua(t to Setio( 5 o Ru-e 16 o te Ru-es o 3ourt. Ae--ee Tamayo too: tis roe)ura- ste >y @-i(g o( Setem>er 16, 1967 a motio( or re-imi(ary eari(g a() tereater to )ismiss te om-ai(t a() te om-ai(t i( i(terve(tio(. Reor)s so= tat i(stea) o a re-imi(ary eari(g, te arties @-e) teir resetive memora()a o( te issue =eter or (ot $)it Sustiguer as a ause o atio( agai(st te 3ity Gover(me(t o *ao-o) a() 0ose Tamayo. De( te grou() or )ismissa- is tat te om-ai(t states (o ause o atio(, te ru-e rovi)es tat its suHie(y a( o(-y >e )etermi(e) >y o(si)eri(g te ats a--ege) i( te om-ai(t a() (o oter, te test >ei(g =eter te ourt a( re()er a va-i) ;u)gme(t rom te ats set ort.25 Te ru-e is tat =e( te motio( to )ismiss is >ase) o( te grou() tat te om-ai(t states (o ause o atio(, (o evi)e(e may >e a--o=e) a() te issue sou-) o(-y >e )etermi(e) i( te -igt o te a--egatio(s o te om-ai(t.26 Tus it =as erro(eous or ae--a(t to -aim tat te -o=er ourt sou-) ave o()ute) a tria- o( te merits i(stea) o )ismissi(g te om-ai(t uo( a mere motio(. As ru-e) >y tis 3ourt i( uo-)i(g a( or)er o )ismissa- =ere >eore te tria- ourt issue) te Cuestio(e) or)er )ismissi(g etitio(erIs om-ai(t, it a) te oortu(ity to e?ami(e te merits tereo, te a(s=er =it ou(ter-aim, te etitio(erIs a(s=er to te ou(ter-aim, a() te a(s=er to te reCuest or a)missio(, to )etermi(e =eter or (ot tere =as suHie(t ause o atio(, te or)er o )ismissa- =as i( te  FFFFFFFFFFFFFFF 

2" Rega-a)o, Reme)ia- La= 3ome()ium, Vo-. &, 4it Revise) $)itio(, . 51 a() . 15", iti(g 3asimiro v. RoCue, 5! O.G. 8772. 25 A>era v. Ver, 16 S3RA 59 1988M *ao-o)/uria i--i(g 3o., &(. v. 4irst 4armers i--i(g 3o., &(., 1! S3RA "!6 1981M.

26 %imayuga v. %imayuga, 96 +i-. 859 1955M Ruerto v. 4er(a()o, et a-., 8! +i-. 9"! 19"9M. 59

59 SU+R$$ 3OURT R$+ORTS AOTAT$% Sustiguer vs. Tamayo (ature o a summary ;u)gme(t.27 eiter a( ae--a(t -aim tat se =as )e(ie) )ue roess si(e se @-e) a motio( or reo(si)eratio( a() (e= tria- =i te -o=er ourt o(si)ere) uo( ae--eeIs @-i(g o is oositio( tereto. O( te oter a(), i te i(sta(t ase is vie=e) rom te sta()oi(t o te -a= o( o(trats, ae--a(tIs teory o suHie(y o ause o atio( to a((u- te o(trat o sa-e o( i(sta--me(t a() a=ar) o te )isute) -ot agai(st te 3ity Gover(me(t o *ao-o) a() 0ose Tamayo =ou-) -i:e=ise a--, o(si)eri(g tat ae--a(t $)it Sustiguer is (ot a arty to sai) o(trat o sa-e. U()er Arti-e 1!11 o te 3ivi- 3o)e, a o(trat ta:es eet >et=ee( te arties =o ma)e it, a() a-so teir assig(s a() eirs, e?et i( ases =ere te rigts a() o>-igatio(s arisi(g rom te o(trat are (ot tra(smissi>-e >y teir (ature, or >y stiu-atio( or >y rovisio( o -a=. Si(e a o(trat may >e vio-ate) o(-y >y te arties tereto as agai(st ea oter, i( a( atio( uo( tat o(trat, te rea- arties/i(/i(terest, eiter as -ai(ti or as )ee()a(t, must >e arties to sai) o(trat. Tereore, a arty =o as (ot ta:e( art i( it a((ot, sue or >e sue) or erorma(e or or a(e--atio( tereo, u(-ess e so=s tat e as a rea- i(terest aete) tere>y.28 &( or)er tat o(e =o is (ot o>-igate) i( a o(trat eiter ri(ia--y or su>si)iari-y may mai(tai( a( atio( or (u--iyi(g te same, te reor) must so= te i(;ury tat =ou-) ositive-y resu-t to im rom te o(trat i( =i e as (ot i(terve(e) i( o((etio( =it at -east o(e o te o(trati(g arties.29 &( te i(sta(t ase, te a--egatio(s i( te om-ai(t )i) (ot so= ae--a(tIs re-atio( to or i(terest i( te o(trat o sa-e o(  FFFFFFFFFFFFFFF 

27 aroer i(i(g 3or. v. Garia, 1"! S3RA 179/18 1986M. 28 arimerio 3oma(ia aviera, S.A. v. 3ourt o Aea-s, 156 S3RA !68, !78 1987M 3oCuia v. 4ie-)me(Is &(sura(e 3o., &(., 26 S3RA 178 1968M Sa-o(ga v. Dar(er *ar(es J 3o., Lt)., 88 +i-. 125 1951M aias J 3o. v. Dar(er *ar(es J 3o., Lt)., "! +i-. 155 1922M. 29 &>aeE v. 'o(g:o(g a() Sa(gai *a(:i(g 3ororatio(, 22 +i-. 572 1912M.

591

VOL. 176, AUGUST 21,, 1989 591 3asti--o vs. 3ourt o Aea-s i(sta--me(t. eiter as ae--a(t -ear-y so=( te i(;ury tat =ou-) ositive-y resu-t to er i te o(trat is (ot (u--i@e). D'$R$4OR$, te aea- is ere>y )ismisse) or -a: o merit. Te or)er, )ate) %eem>er 8, 1977, )ismissi(g te om-ai(t or -a: o ause o atio(, as =e-- as te or)er )ate) 0a(uary 2, 1968, )e(yi(g te motio( or reo(si)eratio( tereo, are aHrme). o ost. SO OR%$R$%. GutierreE, 0r., 4e-iia(o, *i)i( a() 3orts, 00., o(ur. Aea- )ismisse). Or)er aHrme). otes.e ma)e. a>es vs. 4-o;a, 115 S3RA 278.M O( a motio( to )ismiss >ase) o( te grou() tat te om-ai(t states (o ause o atio( te i(suHie(y must aear o( te ae o te om-ai(t. ue vs. 3ourt o 4irst &(sta(e o RiEa-, 117 S3RA 76.M