PNB vs Asuncion case digest

University of the Philippines College of Law Constitutional Law 1 | Professor Charlemagne Yu Case Digest TOPIC: Rule-making > Prohibition Against Diminution of Substantive Rights DOCTRINE: New Constitution of the Philippines, in Section 5, Article X, provides that rules promulgated by the Supreme Court should not diminish, increase or modify substantive rights. CASE Number (including date): G.R. No. L-46095 November 23, 1977 CASE Name: PNB vs Asuncion (and Fabar) Ponente: Makasiar, J. FACTS ● PNB granted Fabar credit accommodations etc ● Said credit accommodations had an outstanding balance of P8,449,169.98 as of May 13, 1977. ● All of the above credit accommodations are secured by the joint and several signatures of Jose Ma. Barredo, Carmen B. Borromeo and Tomas L. Borromeo (private respondents herein) and Manuel H. Barredo ● private respondents failed to pay despite repeated demands so PNB filed a case for collection ● Before the case could be decided, Manuel Barredo died ● “In view of the death of defendant Manuel Barredo, the Court hereby dismisses this case since the present suit is for a money claim which does not survive the death of said defendant.” - pursuant to Sec 6 Rule 86 of the Revised Rules of Court ● PNB filed motion for reconsideration of the dismissal of the cases against all the respondents, saying that only Manuel Barredo’s case should be dismissed ● the Court denied it for lack of meritorious grounds; hence this petition for certiorari ISSUES 1. Whether or not lower court erred in dismissing the motion to reconsider HELD (including the Ratio Decidendi) ·

(1) Yes: - Section 6, Rule 86 of the Revised Rules of Court reveals that nothing therein prevents a creditor from proceeding against the surviving solidary debtor - Article 1216 of the New Civil Code is the applicable provision in this matter. Said provision gives the creditor the night to "proceed against anyone of the solidary debtors or some or all of them simultaneously.”

- Section 6, Rule 86 of the Revised Rules of Court cannot be made to prevail over Article 1216 of the New Civil Code, the former being merely procedural, while the latter, substantive - Moreover, no less than the New Constitution of the Philippines, in Section 5, Article X, provides that rules promulgated by the Supreme Court should not diminish, increase or modify substantive rights.

RULING: WHEREFORE, JUDGMENT IS HEREBY RENDERED MODIFYING THE APPEALED ORDERS OF RESPONDENT COURT DATED NOVEMBER 29, 1976 AND JANUARY 26, 1977 IN THE SENSE THAT AS AGAINST THE DECEASED MANUEL H. BARREDO, THE CASE IS DISMISSED, BUT AS AGAINST ALL THE OTHER SOLIDARY DEBTORS, THE CASE IS REMANDED TO RESPONDENT COURT FOR FURTHER PROCEEDINGS.