You're currently signed in as:
User

BENIGNO M. SALVADOR v. JORGE Z. ORTOLL

This case has been cited 2 times or more.

2006-10-17
GARCIA, J.
In law, a compromise agreement, once approved, has the effect of res judicata between the parties and should not be disturbed except for vices of consent, forgery, fraud, misrepresentation and coercion,[23] none of which exists in this case. The Compromise Agreement between the Union and the Bank binds the minority Union members.
2004-02-27
QUISUMBING, J.
Coming now to the issue of res judicata, we find that the elements thereof have been duly established in favor of respondents, to wit: (1) there is a final judgment or order; (2) the court rendering it has jurisdiction over the subject matter and the parties; (3) the judgment or order is on the merits; (4) there is between the two cases identity of parties, subject matter and causes of action.[26] The compromise agreement between the parties was duly approved by the MTC of Malabon, Branch 55. Absent any evidence that mistake, fraud, violence, intimidation, undue influence, or falsity of documents that vitiated the compromise agreement, the agreement must be upheld. Petitioners claim that counsel did not assist them at the time the court approved the compromise agreement. However, this fact alone does not ipso facto result in a mistake under the law as to render inutile the approval of the trial court. In the absence of any evidence to counter the presumption of regularity of the performance of official duty, such presumption of regularity should be upheld.[27] Besides, it is presumed that a person would take ordinary care of his concerns,[28] such that petitioners' failure to obtain counsel at that time must be deemed with full knowledge of the consequences thereof. Had petitioners truly believed that the compromise agreement should have been stricken down, the proper course to take would have been to file a motion to set aside the agreement on grounds of nullity under Article 2038 of the Civil Code. It is well settled that a judicial compromise has the effect of res judicata and is immediately executory and not appealable unless set aside as abovestated.[29] Should the motion to set aside the compromise agreement be denied, petitioners may then appeal the denial. Further, a judgment based on a compromise agreement is a judgment on the merits, wherein the parties have validly entered into stipulations and the evidence was duly considered by the trial court that approved the agreement.