Case Digest: HEIRS OF AUGUSTO L. SALAS, JR vs, LAPERAL REALTY CORPORATION, et al

[G.R. NO. 135362.  December 13, 1999]

HEIRS OF AUGUSTO L. SALAS, JR vs, LAPERAL REALTY CORPORATION, et al

RULING:

The Court granted the petition by petitioners regarding the dismissal of the latter’s complaint for rescission of several sale transactions.

The court held that rescission is an arbitrable issue, thus arbitration was necessary before a suit could be filed in court. The Court likewise held that the respondents other than Laperal Realty Corporation were not bound by the Agreement (Owner-Contractor Agreement), the respondent lot buyers not being those contemplated as assignees of the rights of respondent Laperal Realty.  The respondent lot buyers where therefore not vested with the right to arbitrate. However, to impose that arbitration be had between petitioners and Laperal Realty and a trial for respondent lot buyers would result in multiplicity of suits, duplicitous procedure and unnecessary delay.

The Court therefore set aside the dismissal of the petitioner’s complaint and directed that the case proceed in the interest of justice.

Categories: arbitration, case digest, et al, G.R. NO. 135362, HEIRS OF AUGUSTO L. SALAS, JR vs, LAPERAL REALTY CORPORATION, SPECIAL CRIMINAL LAW, special penal law