CARLOS LEOBRERA, Petitioner, v. THE COURT OF APPEALS and BANK OF THE PHILIPPINE ISLANDS, Respondents. G.R. No. 80001. February 27, 1989 (Digested)

CARLOS LEOBRERA, Petitioner, v. THE COURT OF APPEALS and BANK OF THE PHILIPPINE ISLANDS, Respondents.G.R. No. 80001. February 27, 1989 CORTES, J.:Civil Procedure: Rule 10

Facts:

•       Petitioner Carlos Leobrera was granted an P800,000.00 credit facility by private respondent Bank of the Philippine Islands (BPI for short)

•       Leobrera also obtained from BPI a separate three-year term loan in the amount of P500,000.00 evidenced by Promissory Note

•       Upon maturity of the 90-day notes BPI and Leobrera negotiated, albeit unsuccessfully, on the terms of their renewal. BPI demanded the full payment of the loan.  Leobrera failed to settle his loan account thus BPI prepared to foreclose the real estate mortgages securing the same.

•       Before BPI could foreclose the mortgage, petitioner filed  a "Motion to File Supplemental Complaint," attaching thereto the supplemental complaint.  Which was granted by the RTC.

•       petitioner’s main cause of action in the original complaint concerned BPI’s threat to foreclose two real estate mortgages securing the two 90-day promissory notes executed by petitioner i. Petitioner alleges that this threatened foreclosure violated the terms of the 1980 amicable settlement between BPI and petitioner.

•       The supplemental complaint on the other hand alleged acts of harassment committed by BPI in unreasonably opting to declare petitioner in default and in demanding full liquidation of the 1985 three-year term loan.

Issue:

THE HONORABLE COURT OF APPEALS ERRED IN STATING THAT THE MOTION TO ADMIT SUPPLEMENTAL COMPLAINT FILED BY HEREIN PETITIONER DID NOT CONTAIN A NOTICE OF HEARING OR THAT THE SAME IS DEFECTIVE.

Held:

Yes. A supplemental complaint should, as the name implies, supply only deficiencies in aid of an original complaint. It should contain only causes of action relevant and material to the plaintiff’s right and which help or aid the plaintiff’s right or defense. The supplemental complaint must be based on matters arising subsequent to the original complaint related to the claim or defense presented therein, and founded on the same cause of action. It cannot be used to try a new matter or a new cause of action.