1999 Bar: Is B obliged to file only one complaint against A for the recovery of both loans? Explain. (2%)


1999 Bar: A secured two loans from B, one for P500,000.00 and the other for P1,000,000.00, payable on different dates. Both have fallen due. Is B obliged to file only one complaint against A for the recovery of both loans? Explain. (2%)
No, B is not obliged to file only one complaint against A for the recovery of both loans.

Under the Rules, if two or more suits are instituted on the basis of the same cause of action, the filing of one or a judgment upon the merits in any one is available as a ground for the dismissal of the others. This rule means that causes that arise from the same cause of action - compulsory joinders - must be joined.

Here, B's joinder is only permissive since the loans are separate loans which may be governed by the different terms and conditions. The two loans give rise to two separate causes of action and may be the basis of two separate complaints.