Case Study Of The First Philippine International Bank V. National Labor Relations Commission

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Case 7
First Philippine International Bank vs. National Labor Relations Commission, 252 SCRA 259

FACTS:
• Producers Bank or the First Philippine International Bank was under conservatorship since 1984.
• The said bank owns 6 parcels of land which was agreed, through Mercurio Rivera (Defendant), the bank manager that it will be sold to Demetrio Demetria and Jose Janolo (Plaintiffs) for P5.5M as consideration.
• Leonida Encarnacion, the bank’s conservator, seeks the repudiation or cancellation of the sale because according to her, Rivera has no authority to enter into the contract.
• Demetria and Janolo sued the bank for damages and the Regional Trial Court favoured them.
• Henry Co., who holds 80% shares of the bank, filed a separate civil case against Demetria and Janolo so that the contract be declared as unenforceable, but Demetria and Janolo argued that it constitutes forum shopping.
ISSUES:
1. Whether or not forum shopping exists.
2. Whether or not there is a perfected contract of sale.
RULING:
1. Yes. There is forum shopping. In civil law cases, forum shopping refers to the practice by some parties in some cases of deliberately searching through multiple courts or jurisdictions in order to file or transfer the case to one that is most likely to give that party the result he wants. Forum shopping can be done by either the plaintiff, the defendant, or both parties.
In this case, there is identity of interest which refers to any relationship where the parties are

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