GR 143490; (February, 2007) (Digest)
G.R. No. 143490. February 2, 2007. CHINA BANKING CORPORATION, Petitioner, vs. DOLORES PADILLA, Respondent.
FACTS:
Respondent Dolores Padilla filed a complaint for sum of money with damages against petitioner China Banking Corporation (CBC) before the Regional Trial Court (RTC) of Makati. Padilla alleged erroneous deductions and payments from her checking account with CBC’s Tuguegarao branch. Prior to the complaint, CBC conducted an audit and concluded that the alleged irregularities were imputable to its branch manager, Emelina T. Quitan, who had exceeded her authority and violated bank policies. Consequently, CBC terminated Quitan’s employment.
Believing it had a right to seek indemnity, subrogation, or contribution from Quitan for any liability arising from Padilla’s complaint, CBC filed a motion for leave to file a third-party complaint against Quitan. The RTC denied the motion, ruling that a corporation acts through its employees and is responsible for their acts, and that CBC’s claims against Quitan should be pursued in a separate action. CBC’s motion for reconsideration was also denied.
ISSUE
Whether the Court of Appeals correctly dismissed CBC’s petition for certiorari for failure to comply with procedural rules, and whether the RTC committed grave abuse of discretion in denying CBC’s motion for leave to file a third-party complaint.
RULING
The Supreme Court denied the petition and affirmed the Court of Appeals (CA). On procedural grounds, the CA correctly dismissed CBC’s petition for certiorari for non-compliance with Section 3, Rule 46 of the 1997 Rules of Civil Procedure, which requires the attachment of certified true copies of relevant documents. The CA found that CBC attached mere photocopies and omitted several pertinent pleadings. The Court upheld the CA’s discretion, noting that subsequent compliance without a compelling reason for the initial failure does not warrant reconsideration.
On the substantive issue, the Court found no grave abuse of discretion by the RTC in denying the motion for leave to file a third-party complaint. A third-party complaint is permissive, not mandatory, and trial courts are vested with discretion to allow or disallow it. The purpose of a third-party complaint is to avoid multiplicity of suits, but it is not an absolute right. The RTC correctly ruled that CBC, as a corporation, is responsible for the acts of its employees performed within their functions. Any claim for indemnity or contribution that CBC may have against its former manager Quitan can be pursued in a separate action. Thus, the denial did not preclude CBC from seeking relief against Quitan in another forum.