G.R. No. 172901 October 29, 2008
American Express International, Inc., Petitioner, vs. Hon. Judge Marlene Gonzales Sison, in her capacity as Presiding Judge of Branch 85 of the Quezon City Regional Trial Court, and Maria Teresa Fernando, Respondents.

FACTS

Celia Silang-Cruz filed a complaint for Collection of Sum of Money and Damages against Ma. Teresa Fernando and Enrico Pineda. The case arose from Fernando’s use of an American Express (Amex) supplementary credit card to pay for accommodations at the Mandarin Oriental Hotel for Alejandra Rodriguez, allegedly without the authority of Cruz, the principal cardholder. Fernando filed a third-party complaint against the hotel, Amex, and Rodriguez. The Regional Trial Court (RTC) ruled in favor of Fernando, ordering Cruz and the third-party defendants (Mandarin, Amex, and Rodriguez) to pay moral and exemplary damages, attorney’s fees, and costs. Amex filed a Notice of Appeal on January 29, 2001. Fernando opposed the appeal on the ground of non-payment of the appeal docket and other legal fees within the reglementary period. The RTC denied the Notice of Appeal and declared its decision final and executory with respect to Amex, finding that the payment was not received by the Office of the Clerk of Court (OCC) within the appeal period. Amex filed a petition for certiorari with the Court of Appeals, claiming it had sent the docket fee payment by registered mail on January 29, 2001. The Court of Appeals upheld the RTC, ruling that Amex failed to prove the OCC received the payment, as it did not present a postmaster’s certification regarding the mailing and delivery. The appellate court, however, noted that execution of the judgment against Amex could not proceed pending the appeal of its co-judgment debtor, Mandarin. Amex’s motion for reconsideration was denied.

ISSUE

Whether the Court of Appeals erred in affirming the trial court’s denial of Amex’s Notice of Appeal due to its failure to prove payment of the appellate docket fees within the reglementary period.

RULING

The Supreme Court DENIED the petition and AFFIRMED the Decision and Resolution of the Court of Appeals. The right to appeal is a statutory privilege that must be exercised in strict compliance with procedural rules. Payment of the docket fee within the prescribed period is mandatory. While the failure to pay may warrant only discretionary dismissal, the court must consider all attendant circumstances. In this case, the OCC did not receive the docket fee payment within the 15-day reglementary period. The payment was only received two months later, and not because the allegedly mailed letter was delivered. Amex failed to discharge its burden of proving that the payment was sent and received within the period, as it did not present the required postmaster’s certification or other competent evidence of mailing and receipt. The non-receipt by the OCC produced the effect of non-payment. No compelling reason existed to warrant a liberal application of the rules. The Supreme Court also noted that impleading the trial court judge in the petition for review was improper under Section 4, Rule 45, but this error did not warrant outright denial of the petition as it raised a question of law.