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    CA to RTC: reinstate P49-M Mitsubishi tax-credit case

     

    By Joel R. San Juan

    Reporter

     

    THE Court of Appeals (CA) has ordered the Regional Trial Court in Manila City to reinstate the civil suit filed by the Bureau of Customs aimed at collecting duties and taxes of P48.8 million—that includes damages—allegedly paid with questionable tax- credit certificates by Mitsubishi Motors Corp.

    Associate Justice Rebecca de Guia-Salvador of the CA’s Eleventh Division ruled that Manila RTC Judge Eduardo Peralta Jr. acted with haste in dismissing Customs’ complaint on May 17, 2005, noting that the lower court failed to adhere to Section 3, Rule 17 of the 1997 Rules of Civil Procedure.

    This section states that a civil action may be dismissed due to the fault of the plaintiff based on three instances: if he fails to appear before the scheduled trial without any justification, if he fails to prosecute his action for unreasonable length of time, and if he fails to comply with the rules or any order of the court.

    The CA said the failure of Solicitor Nelia Bandila-Bustria to appear on two successive trial dates in the case cannot be considered a dilatory tactic or a prolonged postponement of the proceedings that would warrant dismissal because Bustria’s nonattendance on one of the dates was due to the 3-day hospitalization of her 5-year-old child.

    “To constitute a sufficient ground for dismissal, the inattention of the plaintiff to pursue his cause must not only be prolonged but also unnecessary and dilatory, resulting in the trifling of judicial processes.”

    The appellate court further noted that litigation should be settled on the merits and not on technicalities. “The policy of the courts is, finally, to afford every litigant the amplest opportunity for the proper and just determination of his case free from constraints and technicalities…If not for anything else, petitioner’s complaint should, all told, be reinstated in the interest of substantial justice to allow the prosecution of the case without further unnecessary delays.”

    The case was initially set for presentation of evidence on September 13, 2003, but was rescheduled to November 15, 2004, after Customs counsel deputy commissioner Gil Valera left the agency.

    The Office of the Solicitor General then took over the case, but hearings were further rescheduled several times for valid reasons. The case was finally set for April 26, 2005, and when on that date no counsel for the plaintiff appeared, the hearing was postponed for the last time for May 17.

    That was when Bustria failed to appear again—when her child got sick—leading the lower court to grant Mitsubishi’s motion to dismiss.

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