G.R. No. L-6189, March 11, 1911
FAUSTINO LICHAUCO, ET AL. vs. TEODORO LIMJUCO and CATALINA GONZALO

FACTS

Faustino Lichauco, for himself and as the alleged representative of his siblings (co-heirs), filed an action to collect on a promissory note executed by the defendants, Teodoro Limjuco and Catalina Gonzalo, in favor of “Da. Cornelia Laochanco.” The plaintiffs claimed they were the sole heirs of Cornelia Laochanco, who died intestate, and that they owned the note by virtue of such heirship. The Court of First Instance of Manila dismissed the complaint on the merits after trial.

ISSUE

Whether the action was properly prosecuted given the non-joinder of all necessary parties, specifically all the co-heirs of the deceased creditor.

RULING

No. The Supreme Court set aside the judgment and remanded the case to the trial court. The Court held that the action could not proceed without all indispensable parties being joined.

Application of Procedural Rules: The Court cited Sections 114 and 122 of the Code of Civil Procedure, which require that every action must be prosecuted in the name of the real party in interest and that all persons having an interest in the subject of the action must be joined as plaintiffs. A complete determination of the controversy cannot be had without the presence of all necessary parties.
Precedent on Joinder of Heirs: Relying on precedents like Rallonza vs. Evangelista and Araneta vs. Montelibano, the Court ruled that in an action to recover a debt owed to an estate, all known heirs who have an interest in the property (the promissory note) must be made parties to the suit. The circumstance that the co-heirs are numerous does not excuse their non-joinder when they are personally known.
Invalid Representation: Faustino Lichauco’s unilateral representation of his co-heirs was deemed illegal and insufficient to bind them regarding the results of the trial. All interested heirs must be joined either as plaintiffs or, if they refuse, as defendants.
Disposition: The case was remanded to the trial court with instructions to bring in all interested heirs as parties (plaintiffs or defendants) if the litigation is to continue. The Court did not make a special finding as to costs.