Lu v. Ym (G.R. No. 153690; February 15, 2011)

CASE DIGEST: DAVID LU, Petitioner, v. PATERNO LU YM, SR., PATERNO LU YM, JR., VICTOR LU YM, JOHN LU YM, KELLY LU YM, and LUDO & LUYM DEVELOPMENT CORPORATION, Respondents. CONSOLIDATED WITH G.R. No. 157381 & G.R. No. 170889.

FACTS: The three consolidated cases stemmed from the complaint for “Declaration of Nullity of Share Issue, Receivership and Dissolution” filed on August 14, 2000 before the Regional Trial Court (RTC) of Cebu City by David Lu, et al. against Paterno Lu Ym, Sr. and sons (Lu Ym father and sons) and LLDC.

The RTC ruled in favor of David et al. by annulling the issuance of the shares of stock subscribed and paid by Lu Ym father and sons at less than par value, and ordering the dissolution and asset liquidation of LLDC.In G.R. No. 157381 wherein Lu Ym father and sons challenged the appellate court’s resolution restraining the trial court from proceeding with their motion to lift the receivership order which was filed during the pendency of G.R. No. 153690, the Court, by Decision of August 26, 2008 resolved that the issue was mooted by the amendment of the complaint and by the trial court’s decision on the merits.

The Court, in a turnaround, by Resolution of August 4, 2009, reconsidered its position on the matter of docket fees.  It ruled that the trial court did not acquire jurisdiction over the case for David Lu, et al.’s failure to pay the correct docket fees, hence, all interlocutory matters and incidents subject of the present petitions must consequently be denied.

ISSUE:  Have the resolutions become final and immutable?

HELD: The doctrine of immutability of decisions applies only to final and executory decisions.

Since the present cases may involve a modification or reversal of a Court-ordained doctrine or principle, the judgment rendered by the Special Third Division may be considered unconstitutional, hence, it can never become final.

That a judgment must become final at some definite point at the risk of occasional error cannot be appreciated in a case that embroils not only a general allegation of “occasional error” but also a serious accusation of a violation of the Constitution, viz., that doctrines or principles of law were modified or reversed by the Court’s Special Third Division August 4, 2009 Resolution. GRANTED.