Civil
Commercial
Ponente: MENDOZA, J.
Decision Date: 2016-02-17
GR Number: G.R. No. 216566
Digest Team
4 months ago
Avg. Rating:
Summary:
This case involves a dispute between Magellan Aerospace Corporation (MAC) and the Philippine Air Force (PAF) regarding the payment for the overhaul of two aircraft engines. MAC had subcontracted the overhaul service to Chervin Enterprises, Inc. (Chervin), who in turn commissioned MAC to perform the work. After completing the overhaul, MAC demanded payment from Chervin and PAF. PAF refused to release the payment, claiming that it was being held in trust for Chervin. MAC filed a complaint for sum of money against Chervin and PAF. The Regional Trial Court (RTC) granted the motions to dismiss filed by Chervin and PAF, and MAC appealed to the Court of Appeals (CA). The CA partially granted MAC's appeal, dismissing the complaint against PAF but allowing it to proceed against Chervin. MAC filed a petition for review on certiorari before the Supreme Court, arguing that the CA erred in finding that the complaint failed to state a cause of action against PAF and that PAF violated the three-day notice rule in filing the motion to dismiss.
Doctrine:
In determining whether a complaint states a cause of action, the court applies the test of whether the allegations, hypothetically admitted as true, are sufficient to support a valid judgment in accordance with the prayer. The court only considers ultimate facts, not legal conclusions or evidentiary facts. If the allegations in the complaint provide a sufficient basis for the claim, the complaint should not be dismissed.
Facts:
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Issues Ratio:
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Dispositive:
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Other Notes:
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