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Question VII

2018 Bar · Remedial Law · 1 sub-question

VII. Dory Enterprises Inc. (Dory) leased to Digna Corporation (Digna) a parcel of land located in Diliman, Quezon City. During the term of the lease, Digna was informed by DBS Banking Corporation (DBS) that it had acquired the leased property from the former owner Dory, and required Digna to pay the rentals directly to it. Digna promptly informed Dory of DBS' claim of ownership. In response, Dory insisted on its right to collect rent on the leased property. Due to conflicting claims of Dory and DBS over the rental payments, Digna filed a complaint for interpleader in the RTC of Manila. Digna prayed that it be allowed to consign in court the succeeding monthly rentals, and that Dory and DBS be required to litigate their conflicting claims. It later appeared that an action for nullification of a dacion en pago was filed by Dory against DBS in the RTC of Quezon City. In said case, Dory raised the issue as to which of the two (2) corporations had a better right to the rental payments. Dory argued that, to avoid conflicting decisions, the interpleader case must be dismissed. Does the action for nullification of the dacion en pago bar the filing of the interpleader case? (2.5%)

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