CMTC Intl MKTG Corp V Bhagis Intl Trading Corp

THIRD DIVISION
[G.R. No. 170488. December 10, 2012.]

CMTC INTERNATIONAL MARKETING CORPORATION , petitioner,
vs.
BHAGIS
INTERNATIONAL
TRADING
CORPORATION ,
respondent.
DECISION
PERALTA, ** J :
p
Before this Court is a Petition for Review on Certiorari under Rule 45 of the Rules of
Court assailing the Resolutions dated August 19, 2005 1 and November 15, 2005 2
of the Former Special Twelfth Division of the Court of Appeals in CA-G.R. CV No.
84742.
The facts of the case follow.
Petitioner instituted a Complaint for Unfair Competition and/or Copyright
Infringement and Claim for Damages with Prayer for Temporary Restraining Order
and Writ of Preliminary Injunction against respondent before the Regional Trial
Court of Makati (trial court). 3
On February 14, 2005, the trial court rendered a Decision
filed by petitioner. The fallo of said Decision reads:
dismissing the complaint
WHEREFORE, premises considered, the Complaint for Unfair Competition

and/or Copyright Infringement and Claim for Damages is hereby DISMISSED
without pronouncement as to cost.
SO ORDERED.
After receiving a copy of the trial court's Decision, petitioner seasonably led a
Notice of Appeal before the Court of Appeals (appellate court) on March 4, 2005. 6
CSHDTE
Thereafter, the appellate court issued a Notice to File the Appellant's Brief on May
20, 2005, which was received by the law oce representing petitioner on May 30,
2005, stating as follows:
Pursuant to Rule 44, Sec. 7 of the 1997 Rules of Civil Procedure you are
hereby required to le with this Court within forty-ve (45) days from receipt
of this notice, SEVEN (7) legibly typewritten, mimeographed or printed
copies of the Appellant's Brief with legible copies of the assailed decision of
the Trial Court and proof of service of two copies upon the appellee/s. 7
However, despite said notice, petitioner failed to le its appellant's brief timely.
Hence, on August 19, 2005, the appellate court issued a Resolution dismissing the
appeal filed by petitioner. The full text of said Resolution reads:
Considering the report of the Judicial Records Division dated 17 August 2005
stating that no appellant's brief has been led as per docket book entry, the
Court RESOLVES to consider the appeal as having been ABANDONED and
consequently DISMISS the same pursuant to Sec. 1(e), Rule 50 of the 1997
Rules of Civil Procedure, as amended. 8
Upon receipt of the order of dismissal, petitioner led its Motion for Reconsideration
with Motion to Admit Appellant's Brief, 9 which was led forty-two (42) days late
from the date of its expiration on July 15, 2005.
On November 15, 2005, the appellate court denied petitioner's Motion
Reconsideration with Motion to Admit Appellant's Brief. It ruled that one of
grounds by which the Court of Appeals may, on its own motion or that of
appellee, dismiss the appeal is the failure on the part of the appellant to serve
le the required number of copies of his brief within the time prescribed by
Rules of Court, viz.:
for
the
the
and
the
For this Court to admit the appellant's brief after such wanton disregard of
the Rules would put a strain on the orderly administration of justice.
SDIaHE
As held in the case of St. Louis University vs. Cordero, 434 SCRA 575, 587,
citing Don Lino Gutierres & Sons, Inc. v. Court of Appeals , 61 SCRA 87:
"It is necessary to impress upon litigants and their lawyers the
necessity of strict compliance with the periods for performing certain
acts incident to the appeal and the transgressions thereof, as a rule,
would not be tolerated; otherwise, those periods could be evaded by
subterfuges and manufactured excuses and would ultimately become
inutile.
WHEREFORE, the foregoing premises considered, the Motion for
Reconsideration with Motion to Admit Appellant's Brief is perforce DENIED.
SO ORDERED.
10
Accordingly, petitioner led a petition for review on certiorari before this Court
questioning the August 19, 2005 and November 15, 2005 Resolutions of the
appellate court. Thus, petitioner presents the following grounds to support its
petition:
A.
THE COURT OF APPEALS GRIEVOUSLY COMMITTED A REVERSIBLE ERROR
WHEN IT SACRIFICED SUBSTANTIVE JUSTICE IN FAVOR OF PROCEDURAL
TECHNICALITIES WITH ITS DISMISSAL OF PETITIONER'S APPEAL FOR
FAILURE TO FILE THE APPELLANT'S BRIEF ON TIME WITHOUT
CONSIDERING AT ALL WHETHER OR NOT PETITIONER'S APPEAL
DESERVED FULL CONSIDERATION ON THE MERITS.
B.
IN THE INTEREST OF SUBSTANTIVE JUSTICE, PETITIONER'S APPEAL
SHOULD BE REINSTATED CONSIDERING THAT THE ERRORS OF THE TRIAL
COURT IN RENDERING ITS APPEALED DECISION ARE EVIDENT ON THE
FACE OF THE SAID DECISION AND MORE SO AFTER AN EXAMINATION OF
THE EVIDENCE ON RECORD.
AICDSa
1.
The trial court's ruling that petitioner should have established

actual confusion in the minds of buyers is contrary to
jurisprudence.
2.
The trial court did not state the facts upon which it based its
conclusion that petitioner's trademark is strikingly dierent and
distinct from that of defendant's.
3.
Respondent labeled its products in a manner confusingly similar

to that of petitioner's.
4.
The trial court erred in nding that respondent did not pass o
its products as that of petitioner's. 11
Simply, the issue to be resolved is the propriety of the dismissal of petitioner's

appeal for its failure to file the appellant's brief within the reglementary period.
Petitioner asserts that the appellate court erred in dismissing its appeal, since
dismissal of appeals on purely technical grounds is frowned upon and the rules of
procedure ought not to be applied in a very technical sense, for they are adopted to
help secure substantial justice.
For its part, respondent maintains that the appellate court did not err in dismissing
petitioner's appeal for its failure to le the required appellant's brief within the
reglementary period. It stresses that in the absence of persuasive reason to deviate
therefrom, rules of procedure must be faithfully followed for the prevention of
needless delays and for the orderly and expeditious dispatch of judicial business.
We find merit in the instant petition.
TaDCEc
Time and again, this Court has emphasized that procedural rules should be treated
with utmost respect and due regard, since they are designed to facilitate the
adjudication of cases to remedy the worsening problem of delay in the resolution of
rival claims and in the administration of justice. From time to time, however, we
have recognized exceptions to the Rules, but only for the most compelling reasons
where stubborn obedience to the Rules would defeat rather than serve the ends of
justice. 12
I n Obut v. Court of Appeals, 13 this Court reiterated that it "cannot look with favor
on a course of action which would place the administration of justice in a
straightjacket, for then the result would be a poor kind of justice if there would be
justice at all. Verily, judicial orders are issued to be obeyed, nonetheless a non-
compliance is to be dealt with as the circumstances attending the case may

warrant. What should guide judicial action is the principle that a party-litigant if to
be given the fullest opportunity to establish the merits of his complaint of defense
rather than for him to lose life, liberty, honor or property on technicalities."
The same principle was highlighted in Philippine National Bank and Development
Bank of the Philippines v. Philippine Milling Company, Incorporated, et al. 14 where
the Court ruled that even if an appellant failed to le a motion for extension of time
to le his brief on or before the expiration of the reglementary period, the Court of
Appeals does not necessarily lose jurisdiction to hear and decide the appealed case,
and that the Court of Appeals has discretion to dismiss or not to dismiss appellant's
appeal, which discretion must be a sound one to be exercised in accordance with the
tenets of justice and fair play having in mind the circumstances obtaining in each
case.
Ergo, where strong considerations of substantive justice are manifest in the petition,
the strict application of the rules of procedure may be relaxed, in the exercise of its
equity jurisdiction. 15 Thus, a rigid application of the rules of procedure will not be
entertained if it will obstruct rather than serve the broader interests of justice in the
light of the prevailing circumstances in the case under consideration.
ISTECA
In the instant case, it is apparent that there is a strong desire to le an appellant's

brief on petitioner's part.
When petitioner led its motion attaching therewith its appellant's brief, there was
a clear intention on the part of petitioner not to abandon his appeal. As a matter of
fact, were it not for its counsel's act of inadvertently misplacing the Notice to File
Brief in another le, petitioner could have seasonably led its appellant's brief as its
counsel had already prepared the same even way before the receipt of the Notice to
File Brief.
It bears stressing at this point then that the rule, which states that the mistakes of
counsel binds the client, may not be strictly followed where observance of it would
result in outright deprivation of the client's liberty or property, or where the interest
of justice so requires. In rendering justice, procedural inrmities take a backseat
against substantive rights of litigants. Corollarily, if the strict application of the rules
would tend to frustrate rather than promote justice, this Court is not without power
to exercise its judicial discretion in relaxing the rules of procedure. 16
Also, it must be stressed that petitioner had no participatory negligence in the
dismissal of its appeal. Hence, the ensuing dismissal of its appeal was completely
attributable to the gross negligence of its counsel. For said reason, the Court is not
averse to suspending its own rules in the pursuit of justice. Where reckless or gross
negligence of counsel deprives the client of due process of law, or when the
interests of justice so require, relief is accorded to the client who suered by reason
of the lawyer's gross or palpable mistake or negligence. 17
All told, petitioner should be aorded the amplest opportunity for the proper and
just determination of his cause, free from the constraints of technicalities.
Nevertheless, considering that this Court is not a trier of facts, the appropriate
action to take is to remand the case to the appellate court for further proceedings,
for it to thoroughly examine the factual and legal issues that still need to be
threshed out.
TCIHSa
WHEREFORE, premises considered, the instant petition is hereby GRANTED,

insofar as this case is REMANDED to the Court of Appeals for further proceedings,
subject to the payment of the corresponding docket fees within fteen (15) days
from notice of this Decision.
Let the records and the CA rollo of this case be transmitted accordingly.
SO ORDERED.
Brion, *Abad, Mendoza and Leonen, JJ., concur.

Footnotes
*
Designated Acting Member in lieu of Associate Justice Presbitero J. Velasco, Jr., per
Special Order No. 1395 dated December 6, 2012.
**
Per Special Order No. 1394 dated December 6, 2012.
1.
CA rollo, p. 20.
2.
Penned by Associate Justice Bienvenido L. Reyes (now a member of this Court),

with Associate Justices Martin S. Villarama, Jr. (also, now a member of this Court)
and Lucenito N. Tagle, concurring; rollo, pp. 45-49.
3.
Id. at 83-94.
4.
Id. at 117-124.
5.
Id. at 124.
6.
Id. at 125-126.
7.
CA rollo, p. 18.
8.
Id. at 20.
9.
Id. at 21-23.
10.
Rollo, pp. 48-49.
11.
Id. at 20.
12.
Osmea v. Commission on Audit, G.R. No. 188818, May 31, 2011, 649 SCRA 654,
660.
13.
G.R. No. L-40535, April 30, 1976, 70 SCRA 546, 554; 162 Phil. 731, 744 (1976).
14.
G.R. No. L-27005, January 31, 1969, 26 SCRA 712, 715; 136 Phil. 212, 215
(1969).
15.
Al-Amanah Islamic Investment Bank of the Philippines v. Celebrity Travel and

Tours, Incorporated, G.R. No. 155524, August 12, 2004, 436 SCRA 356, 366; 479
Phil. 1041, 1052 (2004).
16.
Villanueva v. People, G.R. No. 188630, February 23, 2011, 644 SCRA 358, 368.
17.
Id. at 369.

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THIRD DIVISION

[G.R. No. 170488. December 10, 2012.]

dismissing the complaint

WHEREFORE, premises considered, the Complaint for Unfair Competition

The trial court's ruling that petitioner should have established

Respondent labeled its products in a manner confusingly similar

Simply, the issue to be resolved is the propriety of the dismissal of petitioner's

compliance is to be dealt with as the circumstances attending the case may

In the instant case, it is apparent that there is a strong desire to le an appellant's

WHEREFORE, premises considered, the instant petition is hereby GRANTED,

Brion, *Abad, Mendoza and Leonen, JJ., concur.

Per Special Order No. 1394 dated December 6, 2012.

Penned by Associate Justice Bienvenido L. Reyes (now a member of this Court),

Rollo, pp. 48-49.

Al-Amanah Islamic Investment Bank of the Philippines v. Celebrity Travel and

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