The Supreme Court in Digital Microwave Corporation v. Court of Appeals clarified the requirements for corporations regarding the certification against forum shopping. The Court emphasized that only a duly authorized officer of the corporation, not merely its counsel, can execute this certification. This ensures that the person signing has actual knowledge of whether the corporation has initiated similar actions in other courts or agencies, thus preventing potential abuse of the legal system.

The Case of the Missing Signature: When Corporate Responsibility Meets Legal Scrutiny

In this case, Asian High Technology Corp. filed a complaint against Digital Microwave Corp. for a sum of money and damages. Digital Microwave sought to dismiss the case, but the trial court denied their motion. Subsequently, Digital Microwave filed a special civil action for certiorari with the Court of Appeals. However, the Court of Appeals dismissed the petition because the certification against forum shopping was signed by the company’s counsel, not by an authorized officer of the corporation, as required by Revised Circular No. 28-91, as amended by Administrative Circular No. 04-94. Digital Microwave argued that its counsel had the authority to execute the certification. The Supreme Court disagreed, leading to this pivotal ruling.

The core issue revolves around the interpretation and application of Revised Circular No. 28-91, which mandates that every petition or complaint filed with the courts must include a sworn certification against forum shopping. This certification requires the party to declare under oath that they have not commenced any other action involving the same issues in any other court or tribunal. The purpose of this requirement is to prevent litigants from simultaneously pursuing multiple cases based on the same cause of action, a practice known as forum shopping, which clogs the courts and wastes judicial resources.

Digital Microwave Corporation argued that, as a corporation, it could authorize a natural person, including its counsel, to sign the certification on its behalf. They contended that counsel’s authority to represent a client is generally presumed, and no specific power of attorney is needed. However, the Supreme Court rejected this argument, emphasizing that the requirement for a sworn certification by the petitioner themselves would become meaningless if counsel could always execute it on their behalf. The Court underscored the importance of having someone with direct knowledge of the corporation’s legal actions to ensure the accuracy of the certification.

The Supreme Court highlighted the rationale behind requiring the petitioner’s personal certification: “The reason the certification against forum shopping is required to be accomplished by petitioner himself is because only the petitioner himself has actual knowledge of whether or not he has initiated similar actions or proceedings in different courts or agencies. Even his counsel may be unaware of such fact. For sure, his counsel is aware of the action for which he has been retained. But what of other possible actions?” This statement underscores the necessity of ensuring that the person signing the certification has comprehensive knowledge of all related legal actions.

Furthermore, the Court addressed the argument that a corporation cannot comply with the certification requirement because it is a juridical entity, not a natural person. The Court dismissed this notion, stating that corporations act through their directors and officers, who can represent the corporation in its transactions, including legal certifications. “It could easily have been made by a duly authorized director or officer of the corporation,” the Court noted, indicating that the corporation’s failure to initially comply with the requirement was unjustifiable.

Building on this principle, the Supreme Court referenced the case of Spouses Valentin Ortiz and Camilla Milan Ortiz v. Court of Appeals, et al., 299 SCRA 708, 711-712 (1998), where it ruled that substantial compliance is insufficient in matters involving strict observance of Circular No. 28-91. In Ortiz, the Court emphasized that the attestation in the certification requires personal knowledge by the executing party. The petitioners must demonstrate reasonable cause for failing to personally sign the certification and convince the court that dismissing the petition would defeat the administration of justice. In Digital Microwave’s case, the Court found no adequate explanation for the initial failure to have the certification signed by one of its officers.

The ruling in Digital Microwave Corporation v. Court of Appeals reinforces the stringent requirements for complying with the rules on certification against forum shopping. It clarifies that corporations must designate a responsible officer with knowledge of the corporation’s legal actions to execute the certification. This ensures accountability and prevents potential abuse of the judicial system through forum shopping. The case serves as a reminder that strict compliance with procedural rules is essential for maintaining the integrity of the legal process.

In conclusion, the Supreme Court’s decision underscores the importance of adherence to procedural rules and highlights the specific requirements for corporations in executing certifications against forum shopping. The ruling clarifies that such certifications must be signed by a duly authorized officer of the corporation who possesses the requisite knowledge of the corporation’s legal actions. This requirement is designed to prevent forum shopping and ensure the integrity of the judicial process. Failing to comply with these requirements can result in the dismissal of petitions or complaints, as demonstrated in this case.

FAQs

What is forum shopping?	Forum shopping is the practice of litigants seeking to have their case heard in the court most likely to provide a favorable judgment. This is generally discouraged as it clogs the court system and wastes judicial resources.
What is a certification against forum shopping?	A certification against forum shopping is a sworn statement required to be submitted with complaints or petitions, attesting that the party has not commenced any similar action in other courts or tribunals. This is designed to prevent forum shopping.
Who should sign the certification against forum shopping for a corporation?	For a corporation, the certification must be signed by a duly authorized officer who has knowledge of the corporation’s legal actions. This ensures that the person signing is aware of any potential forum shopping issues.
Can a lawyer sign the certification on behalf of a corporation?	The Supreme Court clarified that a lawyer cannot sign the certification on behalf of the corporation, unless they are also an authorized officer. The certification requires personal knowledge of the party, which is best provided by an officer of the corporation.
What happens if the certification is not properly signed?	Failure to properly sign the certification can result in the dismissal of the petition or complaint. Strict compliance with the rules on certification is required.
Is substantial compliance sufficient for the certification requirement?	The Supreme Court has ruled that substantial compliance is not sufficient for matters involving strict observance of the rules on certification against forum shopping. The attestation requires personal knowledge by the party who executed the same.
What should a corporation do if it discovers a similar action pending in another court after filing the certification?	If a corporation discovers a similar action pending in another court after filing the certification, it must notify the court, tribunal, or agency within five (5) days of such discovery. This ensures transparency and compliance with the rules against forum shopping.
What if the authorized officer is unavailable?	While the authorized officer is generally required, it may be possible to argue excusable negligence if the officer is genuinely unavailable. Any such situation would need to be justified with evidence in front of the relevant court.

In conclusion, the Digital Microwave case reinforces the necessity for strict compliance with procedural rules, particularly regarding the certification against forum shopping. By requiring a duly authorized officer of a corporation to sign the certification, the Supreme Court aims to prevent abuse of the legal system and maintain the integrity of the judicial process.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Digital Microwave Corporation v. Court of Appeals, G.R. No. 128550, March 16, 2000