PHILIPPINE
PORTS AUTHORITY, v. WILLIAM GOTHONG & ABOITIZ (WG&A), INC.,
Issue:
Whether or not amendment will substantially alter the cause of action and theory of the case.
Held:
Civil
Procedure in Valenzuela v. Court of Appeals,thus:
Interestingly,
Section 3, Rule 10 of the 1997 Rules of Civil Procedure amended the former rule
in such manner that the phrase "or that the cause of action or defense is
substantially altered" was stricken-off and not retained in the new
rules. The clear import of such amendment in Section 3, Rule 10 is that
under the new rules, "the amendment may (now) substantially alter the cause
of action or defense." This should only be true, however, when
despite a substantial change or alteration in the cause of action or defense,
the amendments sought to be made shall serve the higher interests of
substantial justice, and prevent delay and equally promote the laudable
objective of the rules which is to secure a "just, speedy and inexpensive
disposition of every action and proceeding."
The application
of the old Rules by the RTC almost five years after its amendment by the 1997
Rules of Civil Procedure patently constitutes grave abuse of discretion.
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