C. PARTIES TO CIVIL ACTIONS

Question 1

Who may be parties in a civil action?

Answer 1

1. Natural persons [Sec. 1, Rule 3]
2. Juridical persons [Sec. 1, Rule 3]
   a. The State and its political subdivisions
   b. Other corporations, institutions and entities for public interest or public purpose, created by law, and
   c. Corporations, partnerships, and associations for private interest or purpose to which the law grants a judicial personality, separate and distinct from that of each shareholder, partner, or member
   [Art. 44, Civil Code]

Question 2

Can an action be dismissed for lack of legal capacity of the party?

Answer 2

YES. The Rules of Court mandates that only natural or juridical persons, or entities authorized by law may be parties in a civil action. Non-compliance with this requirement renders a case dismissible on the ground of lack of legal capacity to sue, which refers to “a plaintiff’s general disability to sue, such as on account of minority, insanity, incompetence, lack of juridical personality or any other general disqualifications of a party.” [Alliance of Quezon City Homeowners’ Association, Inc. v. Quezon City Government, G.R. No. 230651, September 18, 2018]

Question 3

As a general rule, may a deceased person or his estate be sued?

Answer 3

NO. A deceased person does not have the capacity to be sued and may not be made a defendant in a case. Section 1, Rule 3 of the Revised Rules of Court unequivocally states that “[o]nly natural or juridical persons, or entities authorized by law may be parties in a civil action.”
[Gaffney v. Butler, G.R. No. 219408, November 8, 2017]

Question 4

Real party in interest

Answer 4

The party who stands to be benefited or injured by the judgment in the suit, or the party entitled to the avails of the suit [Sec. 2, Rule 3]

The interest must be real, which is a present and substantial interest, as distinguished from a mere expectancy or a future, contingent, subordinate, or consequential interest. [Rayo v. Metrobank, G.R. No. 165142 (2007)]

It should be material and direct, as distinguished from a mere incidental interest [Mayor Rhustom Dagadag v. Tongnawa, G.R. No. 161166-67 (2005)]

GR: Every action must be prosecuted or defended in the name of the real party in interest.

EXC: Unless otherwise provided by law or the Rules. [Sec. 2, Rule 3]

Question 5

Rule for suits involving spouses

Answer 5

GR: Husband and wife shall sue and be sued jointly.

EXC: As provided by law.
[Sec. 4, Rule 3]

Exceptions include:

1. Abandonment without just cause
2. Mortgage, encumbrance, alienation, or disposition of exclusive property (if spouse is of age)
3. Separation of property

Question 6

Indispensable Parties

Answer 6

A real party-in-interest without whom no final determination can be had of an action [Sec. 7, Rule 3]

Question 7

Minor or incompetent person as party

Answer 7

A minor or a person alleged to be incompetent may sue or be sued, with the assistance of his father, mother, guardian, or if he has none, a guardian ad litem. [Sec. 5, Rule 3]

Question 8

Necessary Parties

Answer 8

A necessary party is not one who is indispensable but, rather, one who ought to be joined as a party if complete relief is to be accorded as to those already parties, or for a complete determination or settlement of the claim subject of the action. [Sec. 8, Rule 3]

Question 9

Indigent Parties vis a vis Indigent Litigants

Answer 9

An indigent party is one who has no money or property sufficient and available for food, shelter, and basic necessities [Sec. 21, Rule 3]

If the applicant for exemption meets the salary and property requirements under Sec. 19 of Rule 141, then the grant of the application is mandatory.

On the other hand, when the application does not satisfy one or both requirements, then the application should not be denied outright; instead, the court should apply the “indigency test” under Sec. 21, Rule 3 and use its sound discretion in determining the merits of the prayer for exemption. [Sps. Algura v. City of Naga, G.R. No. 150135 (2006)]

Question 10

Representatives as parties (R3S3)

Answer 10

Section 3. Representatives as parties. — Where the action is allowed to be prosecuted and defended by a representative or someone acting in a fiduciary capacity, the beneficiary shall be included in the title of the case and shall be deemed to be the real property in interest. A representative may be a trustee of an expert trust, a guardian, an executor or administrator, or a party authorized by law or these Rules. An agent acting in his own name and for the benefit of an undisclosed principal may sue or be sued without joining the principal except when the contract involves things belonging to the principal.

Question 11

Permissive and compulsory joinder of parties

Answer 11

GR: The joinder of parties is permissive

EXC:
It is compulsory when the one involved is an indispensable party.
[Crisologo v. JEWN Agro-Industrial Corporation, G.R. No. 196894 (2014)]

Effect of non-joinder of indispensable parties
The absence of an indispensable party renders all subsequent actions of the trial court null and void for want of authority to act, not only as to the absent parties but even as to those present. [Moldes v. Villanueva, G.R. No. 161955 (2012)]

Effect of non-joinder of necessary parties
Non-joinder of a necessary party does not prevent the court from proceeding in the action. The judgment rendered therein shall not prejudice the rights of such necessary party [Sec. 9, par. 3, Rule 3]

Question 12

Requirements for permissive joinder of parties

Answer 12

1. The right to relief arises out of the same transaction or series of transactions;
2. There is a question of law or fact common to all the plaintiffs or defendants; and 3. Such joinder is not otherwise proscribed by the provisions of the Rules on jurisdiction and venue.

Question 13

Effect of non-joinder of necessary parties

Answer 13

Non-joinder of a necessary party does not prevent the court from proceeding in the action. The judgment rendered therein shall not prejudice the rights of such necessary party [Sec. 9, par. 3, Rule 3]

When a pleading asserting a claim omits to join a necessary party, the pleader must:
1. Set forth the name of the necessary party, if known, and
2. State the reason why he is omitted
[Sec. 9, par. 1, Rule 3]

Should the court find the reason for the non-joinder of a necessary party unmeritorious, it may order the inclusion of such necessary party, if jurisdiction over his person may be obtained. Failure to comply with such order without justifiable cause shall be deemed a waiver of the claim against such party [Sec. 9, pars. 1-2, Rule 3]

Question 14

Unwilling plaintifs (R3S10)

Answer 14

Section 10. Unwilling co-plaintiff. — If the consent of any party who should be joined as plaintiff can not be obtained, he may be made a defendant and the reason therefor shall be stated in the complaint.

Question 15

Unknown defendant (R3S14)

Answer 15

Section 14. Unknown identity or name of defendant. — Whenever the identity or name of a defendant is unknown, he may be sued as the unknown owner heir devisee, or by such other designation as the case may require, when his identity or true name is discovered, the pleading must be amended accordingly.

Question 16

Entity without jjuridical personality

Answer 16

a. There are 2 or more persons not organized as a juridical entity; and
b. They enter into a transaction. [Sec. 15, Rule 3]

Persons associated in an entity without juridical personality may be sued under the name by which they are generally or commonly known. [Sec. 15, Rule 3]

Note: The authority to be a party under Sec. 15, Rule 3 is confined only to being a defendant and not as a plaintiff. This is evident from the words, “they may be used” [1 Riano 265, 2014 Bantam Ed.]

When persons associated in an entity without juridical personality are sued, the service of summons may be effected upon all the defendants by serving upon any of them, or upon the person in charge of the office or place of business maintained under such name. [Sec. 7, Rule 14]

Question 17

Misjoinder and non-joinder of parties

Answer 17

Section 11. Misjoinder and non-joinder of parties. — Neither misjoinder nor non-joinder of parties is ground for dismissal of an action. Parties may be dropped or added by order of the court on motion of any party or on its own initiative at any stage the action and on such terms as are just. Any claim against a misjoined party may be severed and proceeded with separately.

Question 18

Duty of counsel upon death of a party

Answer 18

Duty of counsel upon death of client

a. Inform court of such fact within 30 days after the death; and
b. Give the name and address of the legal representative. [Sec. 16, Rule 3]

Effect of failure to comply
Failure to comply is a ground for disciplinary action [Sec. 16, Rule 3]

Action of court upon notice of death
Upon receipt of notice, the court shall determine if the claim is extinguished by such death.
a. Claim does not survive: substitution would not be ordered
b. Claim survives: the court shall order the legal representative of the deceased to appear and be substituted for him within 30 days [Sec. 16, Rule 3]
[1 Riano 286, 2014 Bantam Ed., suggesting Aguas v. Llemos, G.R. No. L-18107 (1962)]

Question 19

Separation from office (R2S17)

Answer 19

The action may be continued or maintained by or against his successor [Sec. 17, Rule 3]

Requisites:
a. A public officer is a party to an action in his official capacity;
b. During the pendency of the action, he dies, resigns, or otherwise ceases to hold office;
c. Within 30 days after the successor takes office or such time as may be granted by the court, any party shows to the satisfaction of the court, that
• there is a substantial need for continuing or maintaining such action; and
• the successor adopts or continues his predecessor’s action, or threatens to do so
d. Before a substitution is made, the party or officer to be affected shall be given reasonable notice of the application therefor and accorded an opportunity to be heard UNLESS he expressly assents thereto
[Sec. 17, Rule 3]

Question 20

Incompetence or incapacity (R2S18)

Answer 20

Section 18. Incompetency or incapacity. — If a party becomes incompetent or incapacitated, the court, upon motion with notice, may allow the action to be continued by or against the incompetent or incapacitated person assisted by his legal guardian or guardian ad litem.

Question 21

Transfer of interest (R2S19)

Answer 21

Section 19. Transfer of interest. — In case of any transfer of interest, the action may be continued by or against the original party, unless the court upon motion directs the person to whom the interest is transferred to be substituted in the action or joined with the original party.

Question 22

Notice to the OSG (R2S22)

Answer 22

Section 22. Notice to the Solicitor General. - In any action involving the validity of any treaty, law, ordinance, executive order, presidential decree, rules or regulations, the court, in its discretion, may require the appearance of the Solicitor General who may be heard in person or through a representative duly designated by him.