FACTS:

Petitioner filed a complaint for rescission of a contract of lease, which was dismissed by the Regional Trial Court (RTC) but granted the counterclaim of the respondents. Petitioner filed a notice of appeal, but the trial court reconsidered and amended its decision, increasing the damages awarded. Petitioner filed a motion for reconsideration, which was denied by the trial court. Petitioner then filed another notice of appeal. Respondents moved for the dismissal of the appeal, arguing that the first notice of appeal became ineffective and invalid due to the modification of the decision. The trial court denied the motion, but the Court of Appeals (CA) granted the motion and dismissed the appeal.

ISSUES:

1. Whether the first notice of appeal became ineffective and invalid.

2. Whether the CA had jurisdiction to alter the final judgment and entertain the appeal.

RULING:

1. The Supreme Court held that petitioner's appeal was deemed perfected when it timely filed the first notice of appeal. According to Section 9, Rule 41 of the Rules of Court, petitioner did not need to file a second notice of appeal even if the trial court modified the decision and increased the monetary award. The filing of a second notice of appeal would be a superfluity and a useless ceremony. Petitioner's filing of a motion for reconsideration also did not have the effect of waiving the appeal. When the appeal is perfected, the trial court loses jurisdiction over the case except for issuing orders for the protection of the rights of the parties that do not involve any matter litigated by the appeal. Petitioner's motion for reconsideration and second notice of appeal manifest its continuing desire to question the adverse decision. The mistaken appeal was the one docketed by the CA, but for expediency, the Supreme Court reinstated the appeal without further re-docket.

PRINCIPLES:

• Once an appeal is perfected, the trial court loses jurisdiction over the case except for issuing orders for the protection and preservation of the rights of the parties that do not involve any matter litigated by the appeal.

• The filing of a second notice of appeal is a superfluity and a useless ceremony when the first notice of appeal has already been filed and the appeal has been perfected.

• An appeal should not be dismissed on a mere technicality, as all litigants must be afforded the fullest opportunity for the adjudication of their cases on the merits.