BP Oil vs. Total Distribution

G.R. No. 214406.  February 6, 2017.

FACTS

BP Oil filed a Complaint for Sum of Money against Total Distribution & Logistic Systems, Inc. (TDLSI) seeking to recover the sum of P3, 6440,351.79. The amount represents the total  value of the moneys, stock and accounts receivables that TDLSI has allegedly refused to return to BP Oil arising from the termination of the Agency Agreement. 

The RTC ruled in favor of BP Oils. The CA, reversed and set aside the decision on the ground that the admission made by TDLSI in Exhibit “J,” that it was withholding moneys, receivables and stocks from petitioner, has no evidentiary weight, thus, petitioner was not able to preponderantly establish its claim.

BP Oil contended that Exhibit “J” qualifies as an actionable document whose authenticity and due execution were deemed admitted by TDLSI from its failure to specifically deny the same under oath. Petitioner insists that it has met the quantum of proof required by law.

ISSUE

Whether or not Exhibit “J” is an actionable document, thus, must be denied under oath otherwise authenticity and due execution were deemed admitted

RULING

NO. Exhibit “J” is not an actionable document but is an evidence that may be admissible; and hence, need not be denied under oath. A document is actionable when an action or defense is grounded upon such written instrument or document. Petitioner’s cause of action is primarily based on the alleged nonpayment of outstanding debts of respondent as well as the unremitted collections/payments and unsold stocks, despite demand. Thus, petitioner’s cause of action is not based solely on the April 30, 2001 letter allegedly stating the “present value of stocks, collections and accounts receivables” of TDLSI.

Exhibit “J” can be considered as an admission against interest. Admissions against interest are those made by a party to a litigation or by one in privity with or identified in legal interest with such party, and are admissible whether or not the declarant is available as a witness. An admission against interest is the best evidence that affords the greatest certainty of the facts in dispute, based on the presumption that no man would declare anything against himself unless such declaration is true.

DOCTRINE

A document is actionable when an action or defense is grounded upon such written instrument or document.