res judicata

Res judicata refers to the rule that a final judgment or decree on the merits by a court of competent jurisdiction is conclusive of the rights of the parties or their privies in all later suits on all points and matters determined in the former suit.⁵

The elements of res judicata are as follows: (1) the former judgment or order must be final; (2) the judgment or order must be on the merits; (3) it must have been rendered by a court having jurisdiction over the subject matter and the parties; (4) there must be, between the first and the second action, identity of parties, of subject matter and cause of action.⁶

For res judicata to apply, all the above essential requisites must exist.

Since, the decision rendered by the RTC in Civil Case No. 97-02055-D (declaring the Juntos liable for the damage sustained by petitioners) had become final, there existed a final and executory judgment in favor of petitioners rendered by a court of competent jurisdiction. But this was only insofar as Civil Case No. 97-02055-D was concerned.

Civil Case No. 6754 was an entirely different story. The Court agrees with both the trial court (in Civil Case No. 6754) and the appellate court that there was neither identity of parties nor identity of subject matter, much less identity of cause of action between Civil Case No. 97-02055-D and Civil Case No. 6754.

There is identity of parties where the parties in both actions are the same or there is privity between them or they are successors-in-interest by title subsequent to the commencement of the action, litigating for the same thing and under the same title and in the same capacity.⁷

Clearly, there was, in the two cases, no identity of parties. The owner of the Shell tanker truck was never a party in Civil Case No. 97-02055-D. Neither was the private respondent insurance company a party therein. Since private respondent insurance company, whose cause of action was legal subrogation to the rights of the owner of the Shell tanker, was not a party in Civil Case No. 97-02055-D, it was not barred from filing Civil Case No. 6754. Res judicata clearly did not apply to it.

On the issue of identity of subject matter, the subject of an action is defined as the matter or thing with respect to which the controversy has arisen, concerning which a wrong has been done.⁸

In Civil Case No. 97-02055-D, the subject matter was the collision between the Isuzu Elf van owned by the Juntos and the Petron tanker truck owned and operated by petitioner Luz Taganas. However, in Civil Case No. 6754, the subject matter was the collision between the Shell tanker truck insured by private respondent insurance company and the Isuzu Elf van of the Juntos which was rear-ended by the Petron tanker truck of petitioner.

Finally, the Rules of Court defines cause of action as the act or omission by which a party violates a right of another.⁹ Records reveal that Civil Case No. 97-02055-D was filed by the Juntos against petitioners for the damage caused by petitioners’ Petron tanker truck to the Juntos’ Isuzu Elf van. On the other hand, Civil Case No. 6754 was filed by private respondent insurance company against both petitioners and the Juntos arising from the damage suffered by the Shell tanker truck insured by it.

The Court therefore finds no reversible error committed by the Court of Appeals. The decision of the trial court in Civil Case No. 97-02055-D was conclusive only as between the petitioners and the Juntos, and not as to private respondent. Consequently, the principle of res judicata did not apply.

WHEREFORE, the petition is hereby denied. The decision of the Court of Appeals in C-A G.R. SP No. 55500 is AFFIRMED.

LUZ E. TAGANAS and VALENTIN G. TABBAL, petitioners, vs.HON. MELITON G. EMUSLAN AND STANDARD INSURANCE CO., INC., respondents.THIRD DIVISIONG.R. No. 146980             September 2, 2003