G.R. No. L-45359; April 27, 1939
JACINTO DEL SAZ OROZCO Y MORTERA and MARIA PAZ ALCANTARA, plaintiffs-appellants, vs. SALVADOR ARANETA, defendant-appellee.

FACTS

Plaintiff Jacinto del Saz Orozco y Mortera is the registered owner of 11,428 shares of Benguet Consolidated Mining Company, covered by Certificate of Stock No. 8387. Plaintiff Maria Paz Alcantara is his attorney-in-fact and administratrix. They filed a complaint against defendant Salvador Araneta, a lawyer, alleging he wrongfully obtained possession of the stock certificate and refused to return it, claiming the shares belonged to his clients. The complaint sought a declaration that Araneta had no right to the shares or certificate and that plaintiffs alone were entitled to withdraw it from the Bank of the Philippine Islands. After his demurrer was overruled, Araneta filed an answer stating he held no personal interest but was merely the lawyer for Francisco del Saz Orozco Lopez, Dolores del Saz Orozco Lopez, and their minor children, whom he claimed were the real parties in interest. He prayed for their inclusion as indispensable parties defendant. The trial court ordered plaintiffs to amend their complaint to include these persons as defendants. Plaintiffs appealed this order.

ISSUE

Whether the trial court erred in ordering the inclusion of Francisco del Saz Orozco Lopez, Dolores del Saz Orozco Lopez, and their minor children as parties defendant.

RULING

Yes, the trial court erred. The Supreme Court reversed the order. From the complaint, plaintiff Jacinto is the registered owner of the shares, and the certificate is in his name free from encumbrance. The nature of the interest claimed by Araneta’s clients was not clearly shown in his answer. Therefore, the necessity of compelling plaintiffs to include them as parties defendant could not be determined at that stage. The case was remanded to the trial court for further proceedings.

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