G.R. NO. 151932, August 19, 2009

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HENRY CHING TIU, CHRISTOPHER HALIN GO, and GEORGE CO v.

 PHILIPPINE BANK OF COMMUNICATIONS

G.R. NO. 151932 | August 19, 2009

Peralta, J.

ISSUE: Whether the court erred in allowing the substitution of the falsified document by relying on the provision
of Section 3, Rule 10 of the Rules of Court.

HELD:

NO, the court did not err in allowing the substitution of the falsified document.

The pertinent rule on actionable documents is found in Section 7, Rule 8 of the Rules of Court, which
provides that when the cause of action is anchored on a document, its substance must be set forth, and the original
or a copy thereof "shall" be attached to the pleading as an exhibit and deemed a part thereof.

While Secton 3, Rule 10 of the Rules of Court allows the complainant to amend its complaint – including
documents annexed thereto – after the defendant files an answer. Provided, it is done with leave of court.

The granting of leave to file amended pleading is a matter particularly addressed to the sound discretion of
the trial court; and that discretion is broad, subject only to the limitations that the amendments should not
substantially change the cause of action or alter the theory of the case, or that it was not made to delay the action.

Nevertheless, as enunciated in Valenzuela, even if the amendment substantially alters the cause of action
or defense, such amendment could still be allowed when it is sought to serve the higher interest of substantial
justice; prevent delay; and secure a just, speedy and inexpensive disposition of actions and proceedings.

In the present case, there was no fraudulent intent on the part of PBCOM in submitting the altered surety
agreement. In fact, the bank admitted that it was a mistake on their part to have submitted it in the first place
instead of the original agreement. It also admitted that, through inadvertence, the copy that was attached to the
complaint was the copy wherein the words "IN HIS PERSONAL CAPACITY" were inserted to conform to the bank's
standard practice. This alteration was made without the knowledge of the notary public. PBCOM's counsel had no
idea that what it submitted was the altered document, thereby necessitating the substitution of the surety
agreement with the original thereof, in order that the case would be judiciously resolved.

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