Wack Wack Gold and Country Club V Won

WACK WACK GOLF AND COUNTRY CLUB V.
WON, 70 SCRA 165 (1976)

Facts:
Defendants separately claim to be the lawful owners of the same membership fee certificates issued by the Wack
Wack Golf and Country Club. Defendant Lee Won claims its ownership stemming from a decision rendered in an
earlier civil case. Meanwhile, defendant Bienvenido Tan claims the certificates from assignment made by Swan,
Culbertson, and Fritz in his favor. It was to Swan, Culbertson and Fritz that the original membership fee certificate
was issued.
In sum therefore, the plaintiff club prays that the CFI order the defendants to interplead and litigate their conflicting
claims.
In separate motions, however, the defendants moved to dismiss the complaint on the grounds of res judicata
stating that to allow an interpleader would be tantamount to reopening the civil case involving Won and collaterally
attack the same , failure to state a cause of action, and bar by prescription. Consequently, the trial court ruled
against the club. Hence, this petition.
Issue:
Whether the club was diligent in invoking the remedy of interpleader
Held:
NO. Undoubtedly, the subject matter in the instant case is proper for an interpleader suit. It must be noted, however,
that a stakeholder should use reasonable diligencethat is, by filing the interpleader suit within a reasonable time
after a dispute has arisen without waiting to be sued by either of the contending claimants. Otherwise, he may be
barred by laches or undue delay. But where he acts with reasonable diligence in view of the environmental
circumstances, the remedy is not barred.
In the instant case, the club was not so diligent because it had been aware of the defendants conflicting claims long
before its filing of the interpleader suit. It had been recognizing Tan as the lawful owner thereof. It was sued by Lee
who also claimed the same membership fee certificate. Yet it did not interplead Tan. It preferred to proceed with the
litigation, the earlier civil case, and to defend itself therein. As a matter of fact, final judgment was rendered against it
and said judgment has already been executed. It is not therefore too late for it to invoke the remedy of interpleader.
The Corporation has not shown any justifiable reason why it did not file an application for interpleader in civil case
26044 to compel the appellees herein to litigate between themselves their conflicting claims of ownership. It was only
after adverse final judgment was rendered against it that the remedy of interpleader was invoked by it. By then it was
too late, because to be entitled to this remedy the applicant must be able to show that lie has not been made
independently liable to any of the claimants. And since the Corporation is already liable to Lee under a final judgment,
the present interpleader suit is clearly improper and unavailing.
To permit the club to bring Lee to court after the latters successful establishment of his rights in the earlier civil case
would increase the suits, instead of diminishing them as is the goal of filing an interpleader suit.
In fine, the instant interpleader suit cannot prosper because the Corporation had already been made independently
liable in civil case 26044 and, therefore, its present application for interpleader would in effect be a collateral attack
upon the final judgment in the said civil case; the appellee Lee had already established his rights to membership fee
certificate 201 in the aforesaid civil case and, therefore, this interpleader suit would compel him to establish his rights
anew, and thereby increase instead of diminish litigations, which is one of the purposes of an interpleader suit, with
the possiblity that the benefits of the final judgment in the said civil case might eventually be taken away from him;
and because the Corporation allowed itself to be sued to final judgment in the said case, its action of interpleader was
filed inexcusably late, for which reason it is barred by laches or unreasonable delay.
Doctrine: It has been held that a stakeholder's action of interpleader is too late when filed after judgment has been
rendered against him in favor of one of the contending claimants, especially where he had notice of the conflicting
claims prior to the rendition of the judgment and neglected the opportunity to implead the adverse claimants in the
suit where judgment was entered. This must be so because, once judgment is obtained against him by one claimant,
he becomes liable to the latter.

Wack Wack Gold and Country Club V Won

Uploaded by

Copyright:

Available Formats

Wack Wack Gold and Country Club V Won

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Wack Wack Gold and Country Club V Won

Uploaded by

Copyright:

Available Formats

WACK WACK GOLF AND COUNTRY CLUB V.

WON, 70 SCRA 165 (1976)

You might also like