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PHILIPPINE PORTS AUTHORITY versus WILLIAM GOTHONG & ABOITIZ (WG&A), INC. (G.R. No. !

"#$ , %&'u&r( )", )$$") *OCTRINE+ 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. ,ACTS+ WG&A is engaged in the shipping industry while PPA is a GOCC created by PD 87 to operate and administer the countrys sea port acilities! "he lease contracted by the #eterans $hipping Corp! o%er the &arine $lip Way in the 'orth (arbor was e)pired! WG&A re*uested PPA or it to allow to lease and operate said acility! Pres! +strada issued a &emorandum appro%ing the WG&A to lease the &arine $lip Way rom ,anuary - to ,une ./0 1//- or until its turno%er to the highest bidder or the 'orth (arbor &oderni2ation! A contract o lease was entered and PPA surrendered possession o &arine $lip Way in a%or o WG&A! PPA0 belie%ing that the lease was already e)pired on ,une ./0 sent a letter to WG&A directing it to %acate the said premises and to turn o%er the impro%ements thereon! 3n response WG&A wrote PPA urging it to reconsider its decision to e4ect the ormer0 but it was denied by PPA! 'o%ember 180 1//- 5 WG&A commenced and 3n4unction $uit be ore the 6"C0 &anila! 3t claimed that PPA un4ustly0 illegally and prematurely terminated the contract7 also prayed or the issuance o "6O to arrest the e%acuation7 reco%ery or damages or breach and attorneys ees! December --0 1//- 5 WG&A AMEN*E* its complaint or the -.rs/ /.0e0 it added that the PPA is already es/o11e2 rom denying that the correct period o the lease is until its turno%er to the highest winning bidder or the 'orth (arbor &oderni2ation7 /3.r2 4&use o- &4/.o' 5 should it be orced to %acate

the said premises0 it will be e'/./5e2 /o 6e re-u'2e2 5 %alue o the impro%ements! PPA iled its answer! RTC 5 denied the "6O! WG&A mo%ed or the reconsideration and iled a MOTION TO A*MIT ATTACHE* SECON* AMEN*E* COMPLAINT and the complaint was already captioned as I'7u'4/.o' 8./3 Pr&(er -or Te01or&r( Res/r&.'.'9 Or2er &'2:or Wr./ o- Pre5.0.'&r( I'7u'4/.o' &'2 2&0&9es &'2:or -or Re-or0&/.o' o- Co'/r&4/. 3n its -our/3 4&use o- &4/.o' 5 re ormation o the contract as it ailed to e)press the true intent o the parties! "he PPA strongly opposed the admission o the second amended complaint on the ground that the re-or0&/.o' o- 4o'/r&4/ constitutes su6s/&'/.&5 &0e'20e'/0 which i granted0 will su6s/&'/.&55( &5/er the 4&use o- &4/.o' and the /3eor( the case! 6"C denied the admission o the second amended complaint! WG&A iled its &6 but also denied! WG&A iled a Petition or Certiorari with the CA! CA 5 granted its petition directing the 6"C to admit the second amended complaint o WG&A pursuant to Se4/.o' ;, Ru5e $ o the 6e%ised 6ules o Court! PPA mo%ed to reconsider but the same was denied!

ISSUE+ WO' the CA erred in ruling that the 6"C committed gra%e abuse o discretion when it denied the admission o the second amended complaint8 RULING+ 'o! "he CA did not err in ruling that the 6"C committed gra%e abuse o discretion! "he RTC &115.e2 /3e o52 $ection .0 6ule -/ o the 6ules o Court! "he application o the old 6ules by the 6"C almost i%e 9:; years a ter its amendment by the -<<7 6ules o Ci%il Procedure patently constitutes gra%e abuse o discretion! AMEN*MENTS BY LEA<E O, COURT O=D $+C"3O' .0 6>=+ -/ ?) ) ) substantial amendments may be made only upon leave of court. But such leave may be refused if it appears to the court that the motion was made with intent to delay the '+W $+C"3O' .0 6>=+ -/ ?) ) ) substantial amendments may be made only upon leave of court. But such leave may be refused if it appears to the court that the motion was made with

action or that the cause of action or defense is substantially altered. ) ) )

intent to delay.@

"he ?or /3&/ /3e 4&use o- &4/.o' or 2e-e'se .s su6s/&'/.&55( &5/ere2= was stricAenBo and not retained in the new rules! "he 45e&r .01or/ o such amendment in $ection .0 6ule -/ is that under the new rules0 >/3e &0e'20e'/ 0&( ('o8) su6s/&'/.&55( &5/er /3e 4&use o- &4/.o' or 2e-e'se.= "his is true0 howe%er0 when despite a substantial change or alteration in the cause o action or de ense0 the amendments sought to be made shall ser%e the 3.93er .'/eres/s o- su6s/&'/.&5 7us/.4e0 and 1reve'/ 2e5&( and e?u&55( 1ro0o/e the laudable ob4ecti%e o the rules which is to secure a ?4ust0 speedy and ine)pensi%e disposition o e%ery action and proceeding!@

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