G.R. NO. 166964 -

Ruling

WHEREFORE, the prayer of the defendants in their motion to dismiss is GRANTED, and the complaint of the plaintiff is DISMISSED. The counterclaims of the defendants are also ordered DISMISSED. No pronouncement as to costs. [3] The Court of Appeals affirmed the lower court in a Decision dated February 26, 1993. On petition before this Court, we resolved to declare the case terminated for failure of NHA to file the petition on time. The resolution became final and executory on July 26, 1993. Thus, NHA filed on September 7, 2000 a motion for leave of court to withdraw deposit but failed to specify a date for hearing. On October 30, 2000, NHA filed a second motion for leave to withdraw deposit which set the hearing on November 10, 2000. On November 8, 2000, the trial court issued an Order [4] expunging the first motion from the records. It also declared that the amount sought to be withdrawn by NHA constitutes advance payment if the expropriation proceeds, and as indemnity for damages should the proceedings not succeed, as in the instant case. The trial court noted that petitioners might have sustained damages in the course of the expropriation proceedings which they could pursue or waive. The motion being litigious, the trial court declared that the same be set for hearing. NHA's motion for reconsideration was denied on December 8, 2000. [5] On appeal, the Court of Appeals held that the dismissal of petitioners' counterclaim barred them from presenting evidence to prove damages. It ruled that the trial court's assessment that they suffered damages is conjectural and inconsistent with the dismissal of the counterclaim. The dispositive portion of the Court of Appeals' Decision reads: WHEREFORE, the order of the Regional Trial Court of Manila (Branch 35) dated November 8, 2000 is REVERSED and SET ASIDE and that Court is directed to release to the National Housing Authority the amount of P21,107,485.07, represented by PNB (Escolta branch) Fiduciary Account No. 068-576012-6, including accrued interest thereon. SO ORDERED.