1997 Rules on Civil Procedure
2001 Edition <draft copy. pls. check for errors>
Rule 36 – Judgments, Final Orders
And Entry Thereof
Rule 36
JUDGMENTS, FINAL ORDERS AND ENTRY THEREOF
There are three (3) important stages in a civil action.
Q: What are these three (3) stages?
A: The following:
1.) First stage: Issue Formulation Stage
It is the stage in which we are trying to find out what are the issues we are quarreling
about. This is done by filing a complaint, answer to know the defenses, counterclaim,
answer to counterclaim, third party complaint. This is the stage of formulation of issues.
After the last pleading is filed, we go to pre-trial where we will discuss the simplification
of issues, advisability of amending the pleadings, etc. Therefore, during pre-trial we are still
formulating issues to be tackled. When the pre-trial is terminated and there is no settlement,
we proceed to stage 2:
2.) Second stage: Stage of Proof (Rule 30 on Trial)
We are now on trial where the parties will now offer their evidence. It is called the stage
of proof. Plaintiff presents evidence to prove his claim. Defendant presents evidence to
prove his defense. Parties present rebutting evidence. So this is the stage where the parties
will prove their respective contentions.
After the case has been tried and everything has been argued under Rule 30, the last
stage is…. [sound plis… tadadadan!tadan!]
3.) Third stage: Judgment Stage (Rule 36)
This is the stage where the court will now decide and render judgment.
Q: Define Judgment.
A: Judgment is the final consideration and determination by a court of the rights of the parties as
those rights presently exists, upon matters submitted to it in an action or proceeding. (Gotamco vs.
Chan Seng, 46 Phil. 542)
Q: What are the requisites of a valid judgment?
A: There are five (5) requisites for a valid judgment:
1.) the court rendering judgment must have jurisdiction over the subject matter;
2.) the court rendering judgment must have jurisdiction over the person of the defendant, and in case the
defendant is a non-resident, the court rendering judgment must have jurisdiction over the res;
3.) the court rendering judgment must have jurisdiction over the issues, that is, the judgment shall
decide only the issues raised by the parties in their pleadings;
4.) the court rendering judgment must be validly constituted court and the judge thereof, a judge de jure
or de facto; Thus, the court has not been abolished; the judge has been appointed and has not
retired nor separated from service. That is why there is a rule even in criminal cases that if
the judgment is promulgated after the judge has already retired, the judgment is void. There
must be another promulgation.
EXAMPLE: Judge tries a case, prepares the decision and signs it. Before the decision
is promulgated, the judge died or retired. In this case, any promulgation to be made
cannot be valid. The next judge must be the one to promulgate it – write the decision
again and sign it. What is important is the judge who rendered.
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Rule 36 – Judgments, Final Orders
And Entry Thereof
ABC DAVAO AUTO SUPPLY vs. COURT OF APPEALS
284 SCRA 218 [January 16, 1998]
FACTS: The case was tried by a judge (Agton) who was temporarily assigned to
Mati. He wrote the decision and had it released but by that time, he was already
back in Mati. The losing party contended that the judgment was not valid.
HELD: The judgment is VALID because when the new judge denied the motion
for reconsideration, he effectively adopted in toto the decision of the Mati judge. And
besides, the Mati judge was still a judge when he rendered his decision.
“The subsequent motion for reconsideration of Judge Agton's decision was acted
upon by Judge Marasigan himself and his denial of the said motion indicates that he
subscribed with and adopted in toto Judge Agton's decision. Any incipient defect
was cured. Branches of the trial court are not distinct and separate tribunals from
each other. Jurisdiction does not attach to the judge but to the court.”
5.) the judgment must be rendered after lawful hearing, meaning that due process must be observed.
(Busacay vs. Buenaventura, 50 O.G. 111, Jan. 1954; Rueda vs. Juan, L-13764, Jan. 30, 1960;
Rojas vs. Villanueva, 57 O.G. 7339, Oct. 9, n1961; Rayray vs. Chae Kyung Lee, L-18176, Oct.
26, 1966)
There must be a trial where both sides are given the chance to be heard. In case of a
defaulted defendant, due process was observed because he was given the opportunity to
defend himself. But he did not file an answer. The essence of due process is the fact that you
are given the opportunity to be heard.
Sec. 1.
Rendition of judgments and final orders. - A judgment or final
order determining the merits of the case shall be in writing personally and
directly prepared by the judge, stating clearly and distinctly the facts and
the law on which it is based, signed by him, and filed with the clerk of the
court. (1a)
Q: What are the FORMAL requisites of a valid judgment?
A: There are four (4) formal requisites:
1.) The judgment shall be in writing;
2.) It shall be personally and directly prepared by the judge;
3.) It shall state clearly and distinctly the facts and the law on which it is based; and
4.) It shall be signed by the judge and filed with the clerk of court.
First formal requisite: THE JUDGMENT SHALL BE IN WRITING
There is no such thing as an oral judgment.
BAR QUESTION: After the parties presented their evidence, the judge asked the lawyers, “Are you
going to argue?” The parties said, “No more, Your honor. We are waiving our right to argue.” So the judge
dictated the decision to the clerk of court. The judgment was against the defendant. The defendant
appealed next day. Do you count the period of appeal from that date when he heard the decision?
ANSWER: NO. You still have to wait for the written decision. Presumably, what is dictated by the
judge will be transcribed. From the time you receive it is the reckoning period for appeal,
notwithstanding the hearing of such decision in open court. That is not yet the formal decision because
under the law, there is no such thing as oral decision. The judgment must be in writing.
Officially the decision is known to you on the date you received the written judgment. Not the date
when he dictated it in your presence. There are judges before who could do that. Even now those
judges in Manila who became justices today do practice such type of judgment. At present, judges no
longer possess such skill. They are given 90 days to decide the issue and yet at times, they could not do
so within the period mandated by law. How much more on the spot decision?
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Rule 36 – Judgments, Final Orders
And Entry Thereof
Second formal requisite: IT SHALL BE PERSONALLY AND DIRECTLY PREPARED
BY THE JUDGE
It is presumed that the judgment will be made by the judge himself. Although sometimes it
happens otherwise. The judge should not delegate the writing to other people. There must be no ghost
writer.
Third formal requisite: IT SHALL STATE CLEARLY AND DISTINCTLY THE FACTS AND THE LAW
ON WHICH IT IS BASED
The most important – the decision should state clearly and distinctly, the facts and the law on which it is
based. Meaning, there must be a justification for the dispositive portion. The judge must argue why the
party won or lost.
Normally in the facts, either the facts presented by plaintiff are right and the facts presented by the
defendant are wrong or vice-versa. If you think the facts as presented by the plaintiff are correct or not,
you have to state why do you believe that it is correct or not, and also with the evidence of the
defendant. The same thing with legal questions because the plaintiff or the defendant relies on the
provisions of the laws or decided cases.
You have to state why the position of the defendant is wrong, why is the law that he cited not
applicable. You have to state your facts and conclusions of law.
In the SCRA, the Supreme Court will discuss both sides, “According to the plaintiff like
this…According to the defendant like this…..and so forth.” Then the decision will start by saying, “While the
petitioner is correct…” or, “While the defendant is correct…”
It is called the discussion of the facts and the law on which the decision is based. It is a requirement
in the Constitution, Article VIII, Section 14:
Sec. 14. No decision shall be rendered by any court without expressing
therein clearly and distinctly the facts and the law on which it is based. xxx
(Article. VIII, 1987 Constitution)
If a judge will render a decision like this: “This is a civil action to collect an unpaid loan. According to
the plaintiff: He borrowed money for the sum of P80,000.00 payable on this date and despite demands, he did not
pay. According to the defendant in his answer: the obligation is fully paid. ISSUE: Whether the loan has been
paid or not yet paid. Plaintiff, to prove his cause of action presented the following witnesses and evidence. On the
other hand, the defendant, to prove his defense presented the following evidence. WHEREFORE, the court
renders judgment dismissing the complaint.”
Such decision has no discussion on the findings of facts and the law. There is no basis of the
dismissal of the complaint. MY GOLLY! What kind of decision is that? There is no discussion on why
is the evidence of the plaintiff believable and why is the position of the defendant is like that. So there
is no discussion of the facts and the law on which it is based. That is a decision which violates the
Constitution and Rule 36.
Another Illustration:
In an action for sum of money, plaintiff is unpaid. Defendant claims the loan has been paid. The
following is the evidence of the plaintiff and the following is the evidence of the defendant. Then the
court now says: “After the meticulous study and analysis of the evidence offered by both sides, the court is of the
opinion that plaintiff’s evidence is more logical, acceptable, probable and worthy of credit. THEREFORE,
judgment is hereby rendered ordering the defendant to pay the loan.”
Q: Is this decision correct?
A: NO. It still violates the law. There are no findings of facts or conclusions of the law. Therefore,
when the court said, “plaintiff’s evidence is more logical, acceptable, probable and worthy of credit” those are
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Rule 36 – Judgments, Final Orders
And Entry Thereof
conclusions. They are not findings of facts. Meaning you have to argue – why is it logical, why is it
acceptable, why is it probable, why is it worthy of credit. You must state it and rebut the other side.
If that is how decisions are prepared, you just recite what the plaintiff said or what the defendant
said, and you will conclude, “Therefore, find the plaintiff is logical…”, then every nincompoop person is
qualified to be a judge – everybody can write a decision.
It is just like asking questions in the examinations. You will not answer that “A is correct because
his argument is correct (period!).” You have to state why he is correct. That is also the case in the
decision. You must support your answer with details.
Now, every decision of every court must state the facts and the law on which it is based. It must be
in every court, no exceptions, whether SC or an MTC. The Constitutional provision on this
requirement applies to all courts from the highest to the lowest.
However, the Judiciary Law allows the appellate court to make a Memorandum Decision. If you
are the appellate court (CA), you either affirm or reverse the decision of the lower court. If the CA will
reverse the findings of the RTC, definitely the CA has to justify why the findings of the RTC is wrong.
But suppose the CA will affirm, so there is nothing wrong with the judgment of the RTC. Now, in
order to shorten the period for waiting for the decision and in order to hasten it, Section 40 of BP 129
allows the appellate court to simply quote verbatim the findings and conclusion of the trial court and
adopt it as its own.
This is what is called the Memorandum Decision. The concept of memorandum decision which is
found in Section 40, BP 129 is now in Rule 51, Section 5 of the 1997 Rules, to wit:
Sec. 5.
Form of decision.- Every decision or final resolution of the court
in appealed cases shall clearly and distinctly state the findings of fact and
the conclusions of law on which it is based, which may be contained in the
decision or final resolution itself, or adopted from those set forth in the
decision, order, or resolution appealed from. (Sec. 40, BP Blg. 129) (n)
So the appellate court is now authorized to simply copy or refer the true findings of fact and
conclusions at the trial court if it is affirming the latter’s decision. This is what we call memorandum
decision. The SC said that it is only allowed in simple cases, not in complicated ones. Otherwise the
CA will be very lazy – they will just affirm and affirm. Affirm para walang trabaho. Reverse, madami.
To reverse means to argue for the opposite, rebut everything that the trial court said, it takes time to
study, etc. Hence the limitation, which we will discuss later.
Q: Does the law require a particular style of writing a decision?
A: NO, style is based on every individual, so long as the facts and the law are distinctively stated.
That is the minimum requirement. The law does not care how you do it because the manner of
presenting the facts and the law and the discussion is a matter of style. Every person has his own style,
and whether it is good or bad does not matter as long as you comply with the law.
As a matter of fact, there are many instances where the SC commented on the writing styles of
judges. The most vehement critics on sloppy style of decision writing is retired Justice Isagani Cruz,
because he is a very effective writer. He is intolerant of poorly written decisions. Kaya from time to
time although not necessary, he will criticize poorly written decisions. He makes sub-comments. Like
in the cases of
NICOS INDUSTRIAL CORP. vs. COURT OF APPEALS
206 SCRA 127 [1992]
HELD: “Kilometric decisions without much substance must be avoided, to be sure, but
the other extreme, where substance is also lost in the wish to be brief, is no less unacceptable
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Rule 36 – Judgments, Final Orders
And Entry Thereof
either.” Too long is bad, too short is bad either. “The ideal decision is that which, with
welcome economy of words, arrives at the factual findings, reaches the legal conclusions,
renders its ruling and, having done so, ends.” This means, brief but comprehensive.
PEOPLE vs. GONZALES
215 SCRA 592
HELD: “Every judge has his own writing style, some tedious, some terse, some
pedestrian, some elegant, depending upon his training and outlook. Each is acceptable as
long as the factual and legal bases are clearly and distinctly stated therein.”
PEOPLE vs. AMONDINA
220 SCRA 6
HELD: “The decision of the trial court is exceedingly long, without any effort to trim the
fat and keep it lean. Judges are not stenographers transcribing the testimony of the
witnesses word for word. Judges must know how to synthesize, to summarize, to simplify.
Their failure to do so is one of the main reasons for the delay in the administration of justice.
It also explains the despair of the public over the foot-dragging of many courts and their
inability to get to the point and to get there fast.”
There is one MTC judge here, who is very fond of quoting the allegations of the parties: “An action
for collection of money. Plaintiff filed a complaint quoted as follows….” Every paragraph is quoted.
“Defendant filed an answer quoted as follows… Evidence of plaintiff, quoted as follows…” Then his decision is
only one paragraph. My golly! How long will it take your stenographer to type it. Can it not be reduced
to 3 pages? This is what we call writing with style.
One of the best writers in the SC right now is Justice Panganiban. As a matter of fact, in one of the
latest volumes of the Lawyers Review, he has an article entitled, “My Style of Decision Writing.” Very
nice. Every judge must read that. He is giving tips on how to write elegant decisions.
But of course what applies to decision writing also applies to answering questions in the Bar. Some
elegant, some tedious. The same answer but different styles of presentation. Other get high scores, low
scores because of style. So you must also know how to answer. Especially in the Bar exams where the
corrector is correcting more than 4,000 notebooks and he has a deadline, your notebook must project
itself as if your notebook is telling the corrector: Read me! Read me!!
Q: How do you distinguish a judgment from a decision?
A: Actually, the decision is the entire written effort from the first sentence, “This is an action for a
sum of money” until the end. It contains everything from the findings of facts, discussion of evidence.
The judgment is usually the last paragraph – ‘yung “WHEREFORE” – the dispositive portion or the
decretal portion. Sometimes it is called the fallo of the case.
The fallo is yung “WHEREFORE…” Iyung discussions, findings of facts, conclusion of law to justify
the fallo is called the ratio decidendi – the reasoning. (Contreras vs. Felix, 78 Phil. 570)
Q: In case of conflict between judgment and decision, which shall prevail?
A: The judgment shall prevail in case of such conflict, for it is an elementary rule of procedure that
the resolution of the court in a given issue, as embodied in the dispositive part of the decision, is the
controlling factor that determines and settles the rights of the parties and the issues presented therein.
(Manalang vs. Rickards, 55 O.G. 5780, July 27, 1959)
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Rule 36 – Judgments, Final Orders
And Entry Thereof
ASIAN CENTER vs. NLRC
297 SCRA 727 [October 12, 1998]
FACTS: A vs. B. In the ratio decidendi, A is correct. Pero pagdating sa WHEREFOR
(judgment), A’s action is dismissed! And there was no statement in favor of B. A appeals. B
contended that the judgment prevails. Is B correct?
HELD: “The general rule is that where there is a conflict between the dispositive portion
or the fallo and the body of the decision, the fallo controls. This rule rests on the theory that
the fallo is the final order while the opinion in the body is merely a statement ordering
nothing. However, where the inevitable conclusion from the body of the decision is so clear
as to show that there was a mistake in the dispositive portion, the body of the decision will
prevail.”
TYPES OF JUDGMENTS:
A.) Sin Perjuicio judgment
B.) Conditional judgment
C.) Incomplete judgement
D.) Nunc pro tunc judgment
E.) Judgment upon a compromise or Judgment upon an amicable settlement
F.) Judgment upon a confession
A.) SIN PERJUICIO JUDGMENT
Q: What is an SIN PERJUICIO judgment?
A: A sin perjuicio is one which contains only the dispositive portion of the decision and reserves the
making of findings of fact and conclusions of law in a subsequent judgment. (Dir. of Lands vs. Sanz, 45
Phil. 117) So, there is a “WHEREFORE” without a ratio decidendi. It does not state how the court arrived
at a certain decision.
Q: Is a SIN PERJUICIO judgment valid?
A: A sin perjuicio judgment is a VOID judgment for it violates the constitutional provision that “no
decision shall be rendered by any court of record without expressing therein clearly and distinctly the
facts and the law on which it is based” (Sec. 14, Art. VIIII), and the provision of the Rules of Court that
the judgment shall state “clearly and distinctly the facts and the law on which it is based. (Rule 36,
Section 1)
B.) CONDITIONAL JUDGMENT
Q: What is a CONDITIONAL judgment?
A: A conditional judgment is one which is subject to the performance of a condition precedent and
is not final until the condition is performed. (Jaucian vs. Querol, 38 Phil. 707)
EXAMPLE: A sued B. Then the court said: “The A is correct because so and so…. However, there
is another case now pending before the SC where the same issue is being raised. In the meantime, A is
correct. But in the event that SC decision comes out and is not favorable to A, then this decision should
also be automatically changed in favor of B.” So, this is a conditional judgment. Is it a valid
judgment?
Q: Is a conditional judgment valid?
A: It is NOT valid. In truth, such judgment contains no disposition at all and is a mere anticipated
statement of what the court shall do in the future when a particular event should happen. For this
reason, as a general rule, judgments of such kind, conditioned upon a contingency, are held to be
NULL and VOID. (Cu Unjieng y Hijos vs. Mabalacat Sugar Co., 70 Phil. 380)
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Rule 36 – Judgments, Final Orders
And Entry Thereof
C.) INCOMPLETE JUDGMENT
Q: What is an INCOMPLETE judgment? What is its effect?
A: An incomplete judgment is one which leaves certain matters to be settled in a subsequent
proceeding. (Ignacio vs. Hilario, 76 Phil. 605) There is a decision but there is still other matters to be
incorporated later in such decision. Parang interlocutory judgment.
EXAMPLE: There is judgment against B for a damage suit, “Wherefore, judgment is hereby
rendered ordering defendant to indemnify the plaintiff, moral and exemplary damages (period!).” It does
not state how much. Mamaya na natin malaman kung magkano. So kulang pa ang decision.
My golly! What is there to execute? You do not even know how much is the award. It does not
settle any question that may be the subject of execution. (Araneta, Inc. vs. Tuason, 49 O.G. 45) The
judgment can never become final, it having left certain matters to be settled for its completion in a
subsequent proceeding. (Ignacio vs. Hilario, 76 Phil. 605) So, the judgment is again defective.
D.) NUNC PRO TUNC JUDGMENT
Q: (Bar Question) What is a judgment NUNC PRO TUNC and what is its function?
A: A judgment nunc pro tunc literally means a ’judgment now for then.’ Its function is to record some
act of the court done at a former time which was then carried into the record. And the power to make
such entries is restricted to placing upon the record evidence of judicial action which has actually been
taken. It may be used to make the record speak the truth, but not to make it speak what it did not
speak but ought to have spoken. (Lichauco vs. Tan Pho, 51 Phil. 862)
Example: When a judge renders a decision, he must base his findings on what happened on the trial
or on the evidence presented. Normally, the judge cites facts as bases for his findings. Suppose, the
judge, in his hurry, made some findings but forgot to incorporate all those other important matters
which can support his findings. Na-overlook ba! He rendered his decision which was lacking in
something – inadvertently omitted. The judge may now amend his judgment by including the matters
missed – such matters that have been admitted on record. Then, the judge now has an improved
decision – the judgment now is NUNC PRO TUNC. What are to be added are things which really
happened. The judge has no power to include something which did not actually happen. That would
be irregular. How could you quote something which never transpired during the trial.
So it is an amended judgment where certain matters which are contained in the records and
transpired in court were not incorporated. So when you made the decision, parang kulang. So in order
to make it clearer, we will incorporate those matters which should have been incorporated in the
amended decision. That is known as judgment nunc pro tunc. But you can only place there matters
which transpired, not matters which did not transpire.
Q: In what cases is a judgment nunc pro tunc NOT proper?
A: A judgment nunc pro tunc is not proper in the following instances:
1. It cannot remedy errors or omission in an imperfect or improper judgment. (Lichauco vs.
Tan Pho, 51 Phil. 862)
2. It cannot change the judgment in any material respect. (Henderson vs. Tan, 87 Phil. 466) and
3. It cannot correct judicial errors, however flagrant and glaring they may be. (Henderson vs.
Tan, 87 Phil. 466)
E.) JUDGMENT UPON A COMPROMISE or
JUDGMENT UPON AN AMICABLE SETTLEMENT
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Rule 36 – Judgments, Final Orders
And Entry Thereof
Q: What is a JUDGMENT UPON A COMPROMISE?
A: A judgment upon a compromise is a judgment rendered with the consent of the parties for the
purpose of effecting a compromise or settlement of an action. (31 Am. Jur. 105-108)
This is the type of judgment which the law encourages because it is a judgment with the consent of
the parties for the purpose of effecting a compromise or settlement. Usually mga collection cases ito –
tawaran – like i-condone ang interests, or half of the amount na lang, etc. The court will render
judgment copying word for word what the parties say. So the compromise agreement becomes the
judgment and for a as long as the agreement is not contrary to law, the court will approve it.
Q: In a compromise judgment, is the court required to make findings of fact and conclusions of
law? Why?
A: In a compromise judgment, the court is not required to make findings of fact and conclusions of
law. In contemplation of law, the court is deemed to have adopted the statement of facts and
conclusions of law made and resolved by the parties themselves in their compromise agreement; and
their consent has made it both unnecessary and improper for the court to make a preliminary
adjudication of the matters thereunder covered. (Palarca vs. Anzon, L-14780, Nov. 29, 1960)
Q: How do you define a compromise?
A: Under Article 2028 of the New Civil Code:
Art. 2028. A compromise is a contract whereby
reciprocal concessions, avoid a litigation or put
commenced. (Civil Code)
the parties, by making
an end to one already
So the essence of compromise is reciprocal concessions – give and take. It is a mutual concession to
avoid litigation or, if there is already, that which will put an end. There are other definitions given by
the SC although the essence or substance is the same. In the case of
SMITH BELL AND CO. vs. COURT OF APPEALS
197 SCRA 201
HELD: “A compromise is an agreement between two (2) or more persons who, in order
to forestall or put an end to a law suit, adjust their differences by mutual consent, an
adjustment which every one of them prefers to the hope of gaining more, balanced by the
danger of losing more.”
If we go to trial, well, winner take all – either the plaintiff wins or the defendant wins. If you are
not sure of your position, then you might as well get something out of it rather than risk losing
everything.
EXAMPLE: You sue me for P1 million. Then I say, “I would like to offer a settlement”. You would
say, “How much do you offer? Well, my complaint is 1 million, so you pay me P1 million.” That is not
compromise, that is surrender. Kaya nga umaareglo ako para makatawad. And if you will not receive
anything less than a million, you are not asking for a compromise, you are demanding total surrender.
If that is so then, let us go to court and find out if you will get your P1 million and let us find out how
many years from now you can get your money.
Kaya in a compromise agreement, there are no winners and there are no losers.
REPUBLIC OF THE PHILIPPINES vs. SANDIGANBAYAN
226 SCRA 314
FACTS: This is a case involving a compromise between the government and Benedicto,
a crony of President Marcos. He entered into a compromise with the PCGG and the
Supreme Court approved it.
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And Entry Thereof
HELD: “Any compromise has its very essence reciprocal concessions, one must give and
one must take. If only one takes all, then one must first win. But in a compromise, all win
by taking some and giving some.”
Let’s go back to the law on Obligations and Contracts. There are four (4) types of defective
contracts: (a) void; (b) voidable; (3) rescissible; and (4) unenforceable. Under the Civil Code, if one party
enters into a contract where he lacks the requisite authority, the contract is unenforceable but it is a
valid agreement.
Q: What is the effect of a compromise agreement entered into by a lawyer, without any special
authority from his client? Is it a null and void agreement?
A: A lawyer cannot, without special authority, compromise his client’s litigation. A judgment upon
a compromise entered by the court, not subscribed by the party sought to be bound by the
compromise agreement, and in the absence of a special authority to the lawyer to bind his client in the
said agreement, is UNENFORCEABLE. (Dungo vs. Lopena, L-18377, Dec. 29, 1962)
Q: Suppose in the above case, the client learned about what his lawyer did and he did not reject the
agreement, as a matter of fact he complied with it, what is now the effect on such agreement?
A: The agreement is now perfectly VALID and ENFORCEABLE because the party himself did not
question his lawyer’s authority. When it appears that the client, on becoming aware of the compromise
and the judgment, failed to repudiate promptly the action of his lawyer, he will not afterwards be
heard to contest it. (Banco Español-Filipino vs. Palanca, 37 Phil. 921)
Q: What are the legal effects of a judgment based upon a compromise agreement?
A: A judgment upon a compromise agreement produces the following legal effects:
1.) The compromise judgment is not appealable and it is immediately executory. (Reyes vs.
Ugarte, 75 Phil. 505; Serrano vs. Miave, L-14687, March 31, 1965)
2.) It cannot be annulled unless it is vitiated with error, deceit, violence or forgery of
documents. (Morales vs. Fontanos, 64 Phil. 19; Article 2038, Civil Code)
3.) It constitutes res adjudicata. (Art. 2037, Civil Code; Sabino vs. Cuba, L-18328, Dec. 17, 1966)
Meaning, the same subject matter or cause of action can no longer be reopened in the future
in another litigation.
Q: Suppose you enter into a compromise agreement and there is a judgment. You want to escape
from the compromise judgment on the ground that your consent was vitiated by mistake, error, deceit,
violence. How do you question it? What is your remedy?
A: There are so many conflicting answers here. Some say you file a motion to set aside the
compromise judgment because your consent was vitiated. And if the motion is denied, you appeal
from the order denying your motion to set aside. But definitely, you cannot appeal from the
compromise judgment because it is not appealable. You appeal from the order denying your motion to
set aside the compromise judgment. However, under the new rules, you cannot anymore appeal an
order denying a motion to set aside a judgment by consent, confession or compromise on the ground of
fraud, mistake, or duress or any other ground vitiating consent (Section 1, Rule 41)
So an order denying a motion to set aside a judgment by compromise on the ground of fraud,
mistake, or duress or any other ground vitiating consent is not appealable. Therefore, whatever the
answers before are not anymore true now. So what is the REMEDY now?
It would seem that the correct remedy based on the new rules in relation to some new cases, among
which was the case of:
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DOMINGO vs. COURT OF APPEALS
255 SCRA 189 [1996]
HELD: The correct remedy is for the party to file an action for annulment of judgment
before the Court of Appeals pursuant to Section 9, par. 2, of the Judiciary Law. (now
incorporated in Rule 47)
“A compromise may however be disturbed and set aside for vices of consent or forgery.
Hence, where an aggrieved party alleges mistake, fraud, violence, intimidation, undue
influence, or falsity in the execution of the compromise embodied in a judgment, an action
to annul it should be brought before the Court of Appeals, in accordance with Section 9(2) of
Batas Pambansa Bilang 129, which gives that court (CA) exclusive original jurisdiction over
actions for annulment of judgments of regional trial courts.”
F.) JUDGMENT UPON A CONFESSION (COGNOVIT JUDGMENT)
Q: What is a judgment upon a confession?
A: A judgment upon a confession is a one entered against a person upon his admission or
confession of liability without the formality, time and expense involved in an ordinary proceeding.
(Natividad vs. Natividad, 51 Phil. 613)
A judgment upon a confession is also known as “cognovit” judgment. (Pronounced as konyuvit)
EXAMPLE: You file a case against me. Without filing an answer, I simply appeared in court and
tell the court that I am not contesting the claim. I am admitting the complaint to be true and I am
willing to have judgment rendered against me. Or, I can also file my answer kunwari lang ba, and then
in court I will admit my liability. That would be the basis of the judgment upon a confession.
As distinguished from judgment on the pleadings (Rule 34), in judgment on the pleadings you have
to go through the process of filing an answer but actually your answer puts up no defense. In
judgment upon a confession, I may not even file an answer. Hindi talaga ako maglaban. Upon
receiving the complaint, I just say that I am admitting liability. So there is no need of a default order. In
American Law, they call it no lo contendere, meaning no contest. Sa criminal case pa, I am pleading
“guilty.”
Judgment upon a confession, Judgment upon the pleadings, Default judgment – Magkahawig sila. Only
they vary a little bit. In default judgment, the defendant failed to file an answer. So, he is declared in
default. In judgment upon the pleadings, defendant filed an answer but the answer contains no defense.
In judgment upon a confession, he will not file an answer but will tell the court that he is admitting
liability. So, lahat will end up on the same thing: There will be a judgment rendered against the
defendant.
Now, during the commonwealth era, there were many American lawyers who practiced law in the
Philippines. Many judges were Americans, even Justices of the Supreme Court – many of them were
Americans. American lawyers brought to the Philippines types of agreements in American contracts.
There was one particular agreement known as “Warrant of Attorney to Confess Judgment.” That is a
standard clause in American contracts.
EXAMPLE: I am a bank. You borrow money from me and you sign a promissory note which
contains stipulations normally to the advantage and in favor of the bank. They usually insert the
American clause “Warrant of Attorney to Confess Judgment” that in the event that the bank will sue you
on this promissory note, you are entering into a confession judgment immediately. Meaning, I am not
going to defend myself and I am immediately confessing judgment to the court. And who will confess
judgment to the court? The debtor will say “I hereby appoint the bank as my representative to confess
judgment to the court in my behalf.” Parang Special Power of Attorney ba. The bank will go to the court
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Rule 36 – Judgments, Final Orders
And Entry Thereof
and say, “Under this paragraph, I represent the defendant-debtor because he appointed me as his attorney-infact. And in behalf of the defendant, I am confessing.”
The Supreme Court ruled that such stipulation is null and void in the old case of:
NATIONAL BANK vs. MANILA OIL
43 Phil 444
HELD: Such type of clause is null and void for being contrary to public policy because
the defendant waives his right in advance to defend himself. That is unfair because even
before you are sued, you have already waived your right to defend yourself.
But the judgment of confession is still allowed but one has to do it himself, and must not
be done in advance. Meaning, it must not be done like the above acts of American lawyers
as such is against public policy. One must be first be given a chance for defense which right
be later on waived through voluntary confession.
Q: Distinguish a judgment upon a COMPROMISE from a judgment upon a CONFESSION.
A: The following are the distinctions:
1.) In a judgment upon a COMPROMISE, the liability of the defendant is to be determined in
accordance with the terms of the agreement of the parties; whereas
In a judgment upon a CONFESSION, the defendant confesses the action and consents to the
judgment that the court may render in accordance with the compromise and the prayer
therein (31 Am. Jur. 108); and
2.) In a judgment upon a COMPROMISE, there is give and take; the parties haggle, bargain and
agree on the terms of the judgment; there is mutual or reciprocal concessions; whereas
A judgment upon a CONFESSION is unilateral. It comes from the defendant who admits his
liability and accepts that judgment be rendered against him.
Sec. 2. Entry of judgments and final orders. - If no appeal or motion for
new trial or reconsideration is filed within the time provided in these Rules,
the judgment or final order shall
forthwith be entered by the clerk in the
book of entries of judgments.
The date of finality of the judgment or final
order shall be deemed to be the date of its entry.
The record shall contain
the dispositive part of the judgment or final order and shall be signed by the
clerk, with a certificate that such judgment or final order has become final
and executory. (2a, 10, R51)
If you lose a case, what are your options? I can either appeal within the time provided by the Rules.
Or, within the same period, I will file a motion for a new trial or a motion for reconsideration. In any
case, the finality of the judgment will be stopped.
Q: Suppose the prescribed period has lapsed, there is no appeal, no motion for new trial or
reconsideration, what happens to the judgment?
A: The judgment now becomes final and executory.
According to Section 2, once the judgment has become final, it shall be entered by the clerk of court
in the Book of Entries of Judgments. If you go to the office of the RTC, you will find an official book
which contains a chronological arrangement of cases, based on the date of filing. Malaking libro yan.
Now, the second sentence is new and its effects are also significant, “…the date of the finality of
judgment or final order shall be deemed to be the date of its entry.” The rule is, when does a judgment
become final? After the lapse of the period to appeal and no appeal is filed.
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EXAMPLE: Today, March 4, the lawyer for the defendant received a copy of the judgment. The last
day to appeal is March 19. Suppose there is no appeal, then March 20 is the date of finality. On March
20 or immediately thereafter, the clerk of court should know the judgment became final on March 20.
Suppose the clerk of court placed it in the book on March 30. So, the date of finality is March 20 but the
date of entry is March 30.
Sometimes the clerk of court forgets to make the date of entry. That is why under the old rules, the
date of finality of judgment does not coincide with the date of entry of judgment because the clerk of
court may do that thing months later. This creates a lot of trouble. So to cure the discrepancy, the
second sentence is now inserted by the new law: “the date of finality of judgment shall be deemed to be the
date of its entry.”
Meaning, the judgment became final on March 20 although the clerk of court noted it on March 30.
Under the new rules, the date of entry (March 30) retroacts to March 20. That is the significance of the
second sentence, they will automatically coincide. Kahit i-enter pa yan next month, everything will
retroact to the date of finality. It is simplier now.
Q: When the judgment becomes final and executory, what are the effects?
A: The finality of a judgment produces three (3) effects, to wit:
1.) The prevailing party is entitled to have the judgment executed as a matter of right and the
issuance of the corresponding writ of execution becomes a ministerial duty of the court (Rule
39);
2.) The court rendering the judgment loses jurisdiction over the case so that it can no longer correct
the judgment in substance, except to make corrections of clerical errors and omissions plainly
due to inadvertence or negligence. (Locsin vs. Paredes, 63 Phil. 87; Manaois vs. Natividad, L13927, Feb. 28, 1960; Maramba vs. Lozano, L-21533, June 29, 1967)
If after the judgment is rendered, you file a motion for reconsideration or new trial, there
is a possibility for the court to change its mind and its judgment. But once the judgment has
become final, the court has no more power to change its judgment substantially. The error
will also become final, you can no longer change anything substantial.
EXCEPTION: There is one type of judgment which can be changed substantially even
long after it became final as an exception to this rule. In the study of Persons, Judgment for
Support. The judgment for support, which can be modified at any time because the
obligation to give support depends not only on the resources of the obligor, but also on the
ever-changing needs of the obligee. (Malabana vs. Abeto, 74 Phil. 13)
EXAMPLE: The father refuses to support his minor child. After trial, the court orders
the father to support the child at P1,000 per month. Four years later, the father is already
well-off and the child is already in nursery or kindergarten. So the child tells his lawyer that
the amount for support must be increased from P1,000 to P5,000. The father says, “the court
said P1,000 and if you change that to P5,000, that would be substantial.” The father is wrong.
The amount for support can be changed anytime. In the same manner. The amount can also
be lowered, as when the father loses his job.
3.) Res Adjudicata supervenes. (NLU vs. CIR, L-14975, May 15, 1962)
The same cause of action between the same parties can never be the subject matter of
another litigation in the future. Any subsequent case is barred by prior judgment.
Sec. 3. Judgment for or against one or more of several parties. - Judgment
may be given for or against one or more of several plaintiffs, and for or
against one or more of several defendants. When justice so demands, the court
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Rule 36 – Judgments, Final Orders
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may require the parties on each side to file adversary pleadings as between
themselves and determine their ultimate rights and obligations. (3)
Q: Suppose there are 2 plaintiffs A and B, can the court render judgment in favor of plaintiff A and
against plaintiff B? Or, is it possible that in one case, one defendant will win and the other defendant
will lose?
A: YES, especially when the causes of action or defenses are not the same. One may invoke a
defense that is only applicable to him but not applicable to others.
Sec. 4. Several judgments. - In an action against several defendants, the
court may, when a several judgment is proper, render judgment against one or
more of them, leaving the action to proceed against the others. (4)
Same concept. When there are 2 or more defendants, normally the court renders judgment sabaysabay. That is possible.
Q. Is it possible that more than one judgment will arise in a civil action?
A. YES. There’s a judgment in favor of the plaintiff against the defendant and the trial still
continues with respect to other defendants. That would involve more than one decision. Judgment in
favor of one defendant is rendered already but the trial will continue with respect to other defendants
is possible under Section 4.
EXAMPLE: There was a case where the government filed a case for expropriation against several
landowners. The lands are adjoining each other and the government would like to expropriate all
these properties. The government had to file on complaint against several landowners. One landowner
asked that his case be tried ahead of the others. He was allowed under Rule 31 on Separate Trial. His
case was tried ahead. After trial, the court rendered judgment against him. His land was ordered
expropriated. Now, what happened to the other defendants? The Supreme Court said let the case
continue against the other landowners. But there would be a judgment in so far as one defendant is
concerned. (Municipality of Biñan vs. Garcia, 108 SCRA 576)
Sec. 5. Separate judgments. - When more than one claim for relief is
presented in an action, the court, at any stage, upon a determination of the
issues material to a particular claim and all counterclaims arising out of the
transaction or occurrence which is the subject matter of the claim, may render
a separate judgment disposing of such claim. The judgment shall terminate the
action with respect to the claim so disposed of and the action shall proceed as
to the remaining claims. In case a separate judgment is rendered, the court by
order may stay its enforcement until the rendition of a subsequent judgment or
judgments and may prescribe such conditions as may be necessary to secure the
benefit thereof to the party in whose favor the judgment is rendered. (5a)
Section 5 is also similar to Section 4.
Q: Can there be judgments at periods or stages of proceedings?
A: YES. There can be judgment insofar as one cause of action and the proceedings will continue as
to other causes of action.
Let us go back to Rule 30 on Order of Trial. You will notice that there is order of trial when there
are several claims in one action.
EXAMPLE: Plaintiff files a complaint against several defendants. One defendant files a cross-claim
against another defendant. Two defendants file permissive counterclaims against the plaintiff. One
defendant will file a third-party complaint against a third-party defendant. The court renders
judgment. It may render judgment as far as complaint is concerned, then the decision for the crossclaim, then for the counterclaim.
The normal procedure is you try the case, tapusin mo lahat, then you render one judgment
disposing of the complaint, counterclaim, cross-claim and third-party complaint. Yet, separate
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Rule 36 – Judgments, Final Orders
And Entry Thereof
judgments is also permissive under Section 5. If there are separate trials for all these (counterclaim,
cross-claim, etc), it is also possible that there would be separate trials.
Distinctions:
Section 3 – refers to an action by several parties
Section 4 – refers to an action against several defendants
Section 5 – refers to several claims for relief in an action
Sec. 6.
Judgment against entity without juridical personality. - When
judgment is rendered against two or more persons sued as an entity without
juridical personality, the judgment shall set out their individual or proper
names, if known. (6a)
Does that sound familiar? Two or more persons sued as an entity without juridical personality.
Let’s go back to Rule 3 Section 15 and Rule 14 Section 8.
PROBLEM: Three people are members of an entity without juridical personality. They transact
business with Mr. Alama. Mr. Alama has no idea who are really the members of the said entity. He
wanted to sue the members of an entity.
Q1: How will he do it?
A: Rule 3, Section 15 – Mr. Alama will file a case against the defendants by using the name of the
entity they are using.
Q2: How should summons served to these defendants?
A: Rule 14, Section 8 – Summons may be served on anyone of them or to the person in charge of
the place of business.
Q3: How should judgment be rendered against them?
A: Rule 36, Section 6 – when judgment is rendered, the judgment shall set out their individual and
proper names.

published by
LAKAS ATENISTA 1997 – 1998: FOURTH YEAR: Anna Vanessa Angeles • Glenda Buhion •
Joseph Martin Castillo • Aaron Philip Cruz • Pearly Joan Jayagan • Anderson Lo • Yogie Martirizar •
Frecelyn Mejia • Dorothy Montejo • Rowena Panales • Regina Sison • Ruby Teleron • Marilou Timbol •
Maceste Uy • Perla Vicencio • Liberty Wong • Jude Zamora •
Special Thanks to: Marissa Corrales and July Romena
SECOND YEAR: Jonalyn Adiong • Emily Aliño • Karen Allones • Joseph Apao • Melody Penelope Batu •
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Ines Papaya • Jennifer Ramos • Paisal Tanjili
LAKAS ATENISTA 2001–2002: REVISION COMMITTEE: Melissa Suarez • Jessamyn Agustin •
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Mortmort
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