FACTS:

Petitioners, along with other individuals, filed a case against the respondents before the Securities and Exchange Commission (SEC) in 1991. The case was later transferred to the Regional Trial Court (RTC) of Nueva Vizcaya. Pre-trial ensued and a Pre-Trial Order was issued to determine various issues involving the election of trustees, disbursements, accounting, liability for unauthorized withdrawals, refusal to allow inspection, and damages. Respondents sought the dismissal of the case multiple times. The RTC initially denied the motions to dismiss, but on their final motion, the court granted the dismissal based on a board resolution recommending such.

ISSUES:

1. Whether the RTC erred in dismissing the case.

RULING:

1. The petition is granted. The court ruled that the RTC erred in dismissing the case. In an ordinary civil action, a motion to dismiss must be filed before the answer to the complaint, and the grounds for dismissal are specified in the Rules of Court. However, in intra-corporate controversies, a motion to dismiss is a prohibited pleading under the Interim Rules of Procedure for Intra-Corporate Controversies. The court found no justification for the dismissal based solely on a board resolution recommending dismissal, especially considering the various issues raised in the case. Thus, the RTC should continue with the trial and decide the case promptly.