Lucia Barrameda Vda. De Ballesteros v. Rural Bank Of Canaman Inc., represented by its Liquidator, the hilippine Deposit Insurance Corporation !.R. "o. #$%&%', &( "o)ember &'#', *+endoa J.acts/ Lucia Barrameda Vda. De Ballesteros (Lucia) filed (Lucia) filed a complaint for Annulment for Annulment of Deed of Extrajudicial Partition, Deed of Mortgage and Damages with prayer for Preliminary Preliminary njunction against njunction against her children and the Rural Bank of Canaman, Inc. (!"#) before (!"#) before the RTCIriga. hen the case !as set for pre-trial conference, RBCI"s counsel filed a motion to !ithdra! after being informed that #hilippine Deposit Insurance Corporation (PD#) !ould (PD#) !ould handle the case case as RBCI RBCI had had alr alread$ ead$ been been clos closed ed and and plac placed ed unde underr the recei ecei%e %errship ship of the #DIC. Conse&uentl$, on 'ebruar$ (, )**), the la!$ers of #DIC took o%er the case of RBCI.
RBCI, through #DIC, filed a motion to dismiss on the ground that the RTC-Iriga has no +urisdiction o%er the sub+ect matter of the action. RBCI stated that pursuant to ection *, Republic ct /o. 012 (!A $o% &'), other!ise &'), other!ise kno!n as the 3/e! Central Bank ct,4 the RTC-5aka RTC-5akati, ti, alread$ constituted constituted itself, itself, per its 6rder dated ugust ugust 7*, )**7, as the li&uidation li&uidation court to assist #DIC #DIC in undertaking the li&uidation of RBCI. Thus, the sub+ect matter of Lucia"s Lucia"s case fell !ithin the e8clusi%e +urisdictio +urisdiction n of such li&uidation li&uidation court. Lucia opposed the motion. RTC-Iriga issued an order granting the 5otion to Dismiss. 6n appeal to the C, the court ordered the consolidation of the Lucia"s ci%il case and the li&uidation case pending before RTC5akati. 9ence, the present petition for re%ie! on certiorari. certiorari. Issue/ hether a li&uidation court has +urisdiction o%er the ci%il case. Rulin0/ etition is denied1 liquidation court has 2urisdiction o)er the ci)il case.
Lucia contends that +urisdiction alread$ attached !hen Ci%il Case /o. IR-7): !as filed !ith, and +urisdiction obtained b$, the RTC-Iriga prior to the filing of the li&uidation case before the RTC-5akati RTC-5akati,, ho!e%er, ho!e%er, her stance fails to persuade persuade this Court. Court. In refuting refuting this assertion, assertion, #DIC cited the case of Lipana of Lipana *% De*elopment "an+ of !ial !here it !as held that the time of the filing of the complaint is immaterial, *i ; It is the contention of petitioners, ho!e%er, that the placing under recei%ership of Respondent Bank long after the filing of the complaint remo%ed it from the doctrine in the said 5orfe Case. This This cont conten enti tion on is unte untena nabl ble. e. The The time time of the the fili filing ng of the the comp compla lain intt is immaterial immaterial.. It is the e8ecution e8ecution that !ill ob%iousl$ ob%iousl$ pre+udice pre+udice the other deposito depositors rs and creditors. 5oreo%er, as stated in the said 5orfe case, the effect of the +udgment +udgment is onl$ to fi8 the amount of the debt, and not to gi%e priorit$ o%er other depositors and creditors.
The cited Morfe cited Morfe case case held that 3after the 5onetar$ Board has declared that a bank is insol%ent and has ordered it to cease operations, the Board becomes the trustee of its assets for the e&ual benefit of all the creditors, creditors, including depositors. depositors. The assets of the insol%ent insol%ent banking institution are held in trust for the e&ual benefit of all creditors, and after its insol%enc$, one cann cannot ot obta obtain in an ad%ant ad%antag agee or a pref prefer erenc encee o%er o%er anot anothe herr b$ an atta attachm chmen ent, t, e8ec e8ecut utio ion n or other!ise.4
Thus, to allo! Lucia"s case to proceed independentl$ of the li&uidation case, a possibilit$ of fa%orable +udgment and e8ecution thereof against the assets of RBCI !ould not onl$ pre+udice the other creditors and depositors but !ould defeat the %er$ purpose for !hich a li&uidation court !as constituted as !ell.
