Pointers
Pointers
I. Reconcile:
Under review before this Court is the July 31, 2006 Decision of the
Court of Appeals,[1] which affirmed that of the Regional Trial Court,
Branch 16, of Tangub City in Civil Case No. TC-97-001, ordering
the defendants-petitioners herein, Fernanda Geonzon vda. de
Barrera and Johnny Oco. Jr. to return possession of the subject
property to the plaintiffs-herein respondents, Heirs of Vicente
Legaspi.
SO ORDERED.
On the issue of jurisdiction over the subject matter, the trial court,
maintaining that it had, held:
The Court is not persuaded by [the defendants'] arguments. What
determines the nature of the action as well as the jurisdiction of the
[c]ourt are the facts alleged in the complaint and not those alleged
in the answer of the defendants.
xxxx
On the merits, the appellate court affirmed too the trial court's
decision, finding that "both testimonial and documentary evidence
on record established that appellees, through their predecessors-in-
interest, have been in peaceful, continuous, public and actual
possession of the property in dispute even before the year
1930."[12]
Hence, the present petition for review which raises the following
issues:
I. . . . WHETHER OWNERSHIP AND TITLE CANNOT BE AN ISSUE TO
DETERMINE WHO HAS A BETTER RIGHT [TO] THE PORTION
LITIGATED; AND
In fine, since the RTC has no jurisdiction over the complaint filed by
respondents, all the proceedings therein as well as the Decision of
November 27, 1998, are null and void. The complaint should
perforce be dismissed. This leaves it unnecessary to still dwell on
the first issue.
The Case
Before the Court is a petition for review on certiorari [1] assailing the
Orders dated 8 September 2006[2] and 13 February 2007[3] of the
Regional Trial Court (RTC) of Tacloban City, Branch 34, in Civil Case
No. 2001-10-161.
2. The Facts
SO ORDERED.[7]
The Issue
The main issue is whether the present action is already barred by
prescription.
We find that the conclusion of the RTC in dismissing the case on the
ground of prescription based solely on the Affidavit executed by
Juanita in favor of Ricardo, the alleged seller of the property from
whom Dominador asserts his ownership, is speculative. Thus, a
review of the case is necessary.
The RTC explained that prescription had already set in since the
Affidavit was executed on 31 May 1966 and petitioners filed the
present case only on 26 October 2001, a lapse of more than 30
years. No action could be taken against the deed of sale made in
favor of Dominador without assailing the Affidavit, and the action to
question the Affidavit had already prescribed.
After a perusal of the records, we find that the RTC incorrectly relied
on the Affidavit alone in order to dismiss the case without considering
petitioners' evidence. The facts show that the land was sold to
Dominador by Ricardo's daughters, namely Josephine Bahia and
Virginia Bahia-Abas, during the lifetime of Ricardo. However, the
alleged deed of sale was not presented as evidence and neither was
it shown that Ricardo's daughters had any authority from Ricardo to
dispose of the land. No cogent evidence was ever presented that
Ricardo gave his consent to, acquiesced in, or ratified the sale made
by his daughters to Dominador. In its 8 September 2006 Order, the
RTC hastily concluded that Ricardo's daughters had legal personality
to sell the property:
On the allegation of the plaintiffs (petitioners) that Josephine Bahia
and Virginia Bahia-Abas had no legal personality or right to [sell] the
subject property is of no moment in this case. It should be Ricardo
Bahia who has a cause of action against [his] daughters and not the
herein plaintiffs. After all, Ricardo Bahia might have already
consented to or ratified the alleged deed of sale.[9]
Also, aside from the Affidavit, Dominador did not present any proof
to show that Ricardo's possession of the land had been open,
continuous and exclusive for more than 30 years in order to establish
extraordinary acquisitive prescription.[10] Dominador merely assumed
that Ricardo had been in possession of the land for 30 years based
on the Affidavit submitted to the RTC. The petitioners, on the other
hand, in their pleading filed with the RTC for recovery of ownership,
possession, partition and damages, alleged that Ricardo left the land
after he separated from his wife sometime after 1966 and moved to
another place. The records do not mention, however, whether
Ricardo had any intention to go back to the land or whether Ricardo's
family ever lived there.
Further, Dominador failed to show that Ricardo had the land declared
in his name for taxation purposes from 1966 after the Affidavit was
executed until 2001 when the case was filed. Although a tax
declaration does not prove ownership, it is evidence of claim to
possession of the land.
In the present case, all three requisites have been met. After
Juanita's death in 1989, petitioners sought for the partition of their
mother's land. The heirs, including Ricardo, were notified about the
plan. Ricardo, through a letter dated 5 June 1998, notified
petitioners, as his co-heirs, that he adjudicated the land solely for
himself. Accordingly, Ricardo's interest in the land had now become
adverse to the claim of his co-heirs after repudiating their claim of
entitlement to the land. In Generosa v. Prangan-Valera,[12] we held
that in order that title may prescribe in favor of one of the co-
owners, it must be clearly shown that he had repudiated the claims
of the others, and that they were apprised of his claim of adverse
and exclusive ownership, before the prescriptive period begins to
run.
With regard to the issue of the jurisdiction of the RTC, we hold that
the RTC did not err in taking cognizance of the case.
xxx
In the present case, the records show that the assessed value of the
land was P590.00 according to the Declaration of Property as of 23
March 2000 filed with the RTC. Based on the value alone, being way
below P20,000.00, the MTC has jurisdiction over the case. However,
petitioners argued that the action was not merely for recovery of
ownership and possession, partition and damages but also for
annulment of deed of sale. Since annulment of contracts are actions
incapable of pecuniary estimation, the RTC has jurisdiction over the
case.[15]
When petitioners filed the action with the RTC they sought to recover
ownership and possession of the land by questioning (1) the due
execution and authenticity of the Affidavit executed by Juanita in
favor of Ricardo which caused Ricardo to be the sole owner of the
land to the exclusion of petitioners who also claim to be legal heirs
and entitled to the land, and (2) the validity of the deed of sale
executed between Ricardo's daughters and Dominador. Since the
principal action sought here is something other than the recovery of
a sum of money, the action is incapable of pecuniary estimation and
thus cognizable by the RTC. Well-entrenched is the rule that
jurisdiction over the subject matter of a case is conferred by law and
is determined by the allegations in the complaint and the character of
the relief sought, irrespective of whether the party is entitled to all or
some of the claims asserted.[17]
SO ORDERED.
In its Order[6] dated September 29, 2004, the RTC granted petitioners' Motion
to Dismiss, holding as follows:
xxxx
And while the prayer of the plaintiffs for the annulment of documents
qualified the case as one incapable of pecuniary estimation thus, rendering it
cognizable supposedly by the second level courts but considering that
Republic Act No. 7691 expressly provides to cover “all civil actions” which
phrase understandably is to include those incapable of pecuniary estimation,
like the case at bar, this Court is of the view that said law really finds
application here more so that the same case also “involves title to, or
possession of, real property, or any interest therein.” For being so, the
assessed value of the real property involved is determinative of which court
has jurisdiction over the case. And the plaintiffs admitting that the assessed
value of the litigated area is less than P20,000.00, the defendants are correct
in arguing that the case is beyond this Court's jurisdiction. [7]
On March 17, 2005, the RTC issued an Order granting respondents' Motion
for Partial Reconsideration and reversing its earlier Order dated September
29, 2004. The RTC ruled, thus:
On the issue of want of jurisdiction, this court likewise finds to be with merit
the contention of the movants as indeed the main case or the primary relief
prayed for by the movants is for the declaration of nullity or annulment of
documents which unquestionably is incapable of pecuniary estimation and
thus within the exclusive original jurisdiction of this court to try although in
the process of resolving the controversy, claims of title or possession of the
property in question is involved which together with all the other remaining
reliefs prayed for are but purely incidental to or as a consequence of the
foregoing principal relief sought.[10]
Petitioners filed a Motion for Reconsideration,[11] but the RTC denied it in its
Order dated June 23, 2005.
Aggrieved, petitioners filed a petition for certiorari with the CA. However, the
CA dismissed the petition via its assailed Decision dated July 11, 2007,
holding that the subject matter of respondents' complaint is incapable of
pecuniary estimation and, therefore, within the jurisdiction of the RTC,
considering that the main purpose in filing the action is to declare null and
void the documents assailed therein.[12]
Hence, the instant petition for review on certiorari raising the sole issue, to
wit:
For a clearer understanding of the case, this Court, like the CA, finds it
proper to quote pertinent portions of respondents' Complaint, to wit:
xxxx
xxxx
xxxx
with a total assessed value of P2,890.00 x x x. However, for the year 2002,
the property was already having (sic) a total assessed value of P11,990.00 x
x x.
9. Upon the death of said Roman Ebarsabal, his eight (8) children named in
par. 7 above, became co-owners of his above-described property by
hereditary succession; taking peaceful possession and enjoyment of the
same in fee simple pro indiviso, paying the real estate taxes thereon and did
not partition the said property among themselves until all of them likewise
died, leaving, however, their respective children and descendants and/or
surviving heirs and successors-in-interest, and who are now the above-
named plaintiffs herein;
10. The plaintiffs who are mostly residents in (sic) Mindanao and Manila,
have just recently uncovered the fact that on 28th January 1997, the
children and descendants of deceased Gil Ebarsabal, namely: Pelagio,
Hipolito, Precela, Fructuosa, Roberta, Florentino, Erlinda, Sebastian, Cirilo, all
surnamed Ebarsabal, have executed among themselves a Deed of
Extrajudicial Settlement with Sale of Roman Ebarsabal's entire property
described above, by virtue of which they allegedly extrajudicially settled the
same and, for P2,600,000.00 – although only the sum of P950,000.00 was
reflected in their Deed of Sale for reason only known to them, they sold the
whole property to defendants Genesis Investment Inc. represented by co-
defendant Rhodora B. Lim, the wife of Lambert Lim, without the knowledge,
permission and consent of the plaintiffs who are the vendors' co-owners of
the lot in question, x x x.
11. Surprisingly, however, the defendant Genesis managed to have the Tax
Declaration of the property issued in the name of co-defendant Cebu Jaya
Realty Incorporated, a firm which, as already intimated above, is also owned
by Spouses Lambert and Rhodora B. Lim, instead of in the name of Genesis
Investment, Incorporated, which is actually the vendee firm of the lot in
question.
xxxx
Hence, the reason why Cebu Jaya Realty, Incorporated is joined and
impleaded herein as a co-defendant.
12. Without the participation of the plaintiffs who are co-owners of the lot in
question in the proceedings, the aforementioned extrajudicial settlement with
sale cannot be binding upon the plaintiff-co-owners.
13. Further, where as in this case, the other heirs who are the plaintiffs
herein, did not consent to the sale of their ideal shares in the inherited
property, the sale was only to be limited to the pro indiviso share of the
selling heirs.
xxxx
15. The defendants who had prior knowledge of the existence of the other
heirs who are co-owners of the vendors of the property they purchased, had
unlawfully acted in bad faith in insisting to buy the whole property in co-
ownership, only from the heirs and successors-in-interest of deceased Gil
Ebarsabal, who is only one (1) of the eight (8) children of deceased Roman
Ebarsabal, and without notifying thereof in whatever manner the plaintiffs
who are the heirs and successors-in-interest of the other co-owners of the
property-in-question; thus, have compelled the plaintiffs herein to file this
instant case in court to protect their interests, x x x.
xxxx
PRAYER
1 – Declaring as null and void and not binding upon the plaintiffs, the
following documents to wit:
(a) Deed of Extrajudicial Settlement with Sale executed by and between the
heirs of deceased Gil Ebarsabal headed by Pedro Ebarsabal, and Genesis
Investment, Inc., represented by Rhodora Lim, dated 28th of January, 1997,
marked as Annex-A;
(c) Tax Declaration of Real Property issued to Cebu Jaya Realty, Inc., marked
as Annex-D;
xxxx
Further reliefs and remedies just and equitable in the premises are also
herein prayed for.
x x x x[14]
It is true that one of the causes of action of respondents pertains to the title,
possession and interest of each of the contending parties over the contested
property, the assessed value of which falls within the jurisdiction of the MTC.
However, a complete reading of the complaint would readily show that,
based on the nature of the suit, the allegations therein, and the reliefs
prayed for, the action is within the jurisdiction of the RTC.
As stated above, it is clear from the records that respondents' complaint was
for "Declaration of Nullity of Documents, Recovery of Shares, Partition,
Damages and Attorney's Fees." In filing their Complaint with the RTC,
respondents sought to recover ownership and possession of their shares in
the disputed parcel of land by questioning the due execution and validity of
the Deed of Extrajudicial Settlement with Sale as well as the Memorandum of
Agreement entered into by and between some of their co-heirs and herein
petitioners. Aside from praying that the RTC render judgment declaring as
null and void the said Deed of Extrajudicial Settlement with Sale and
Memorandum of Agreement, respondents likewise sought the following: (1)
nullification of the Tax Declarations subsequently issued in the name of
petitioner Cebu Jaya Realty, Inc.; (2) partition of the property in litigation;
(3) reconveyance of their respective shares; and (3) payment of moral and
exemplary damages, as well as attorney's fees, plus appearance fees.
As cited by the CA, this Court, in the case of Singson v. Isabela Sawmill,[16]
held that:
This rule was reiterated in Russell v. Vestil[18] and Social Security System v.
Atlantic Gulf and Pacific Company of Manila, Inc.[19]
Moreover, it is provided under Section 5 (c), Rule 2 of the Rules of Court that
where the causes of action are between the same parties but pertain to
different venues or jurisdictions, the joinder may be allowed in the RTC
provided one of the causes of action falls within the jurisdiction of said court
and the venue lies therein. Thus, as shown above, respondents' complaint
clearly falls within the jurisdiction of the RTC.
SO ORDERED.
Factual Antecedents
However, the additional docket fees for the moral damages prayed for in the
Amended Complaint were not paid.[10] Likewise, for the additional causes of
action, no docket fees were charged and paid.
Respondents moved for dismissal of the case, claiming lack of jurisdiction
over the subject matter and prescription. The RTC denied the motion in a
September 3, 2007 Order.[11]
Respondents filed an original Petition for Certiorari[14] before the CA, which
was docketed as CA-G.R. SP No. 02315, On November 29, 2011, the CA
issued the assailed Decision, which contained the following pronouncement:
The petition is meritorious.
Consistent with Section 1, Rule 141 of the Revised Rules of Court which
provides that the prescribed fees shall be paid in full "upon the filing of the
pleading or other application which initiates an action or proceeding", the
well-entrenched rule is to the effect that a court acquires jurisdiction over a
case only upon the payment of the prescribed filing and docket fees.
Rule 141 of the Rules of Court, as amended by A.M. No. 04-2-G4-SC and
Supreme Court Amended Administrative Circular No. 35-2004, provides that:
SEC. 7. Clerks of Regional Trial Courts. -
(a) For filing an action or a permissive OR COMPULSORY counterclaim,
CROSSCLAIM, or money claim against an estate not based on judgment,
or for filing a third-party, fourth-party, etc. complaint, or a complaint-in-
intervention, if the total sum claimed, INCLUSIVE OF INTERESTS,
PENALTIES, SURCHARGES, DAMAGES OF WHATEVER KIND, AND
ATTORNEY'S FEES, LITIGATION EXPENSES AND COSTS and/or in cases
involving property, the FAIR MARKET value of the REAL property in
litigation STATED IN THE CURRENT TAX DECLARATION OR CURRENT
ZONAL VALUATION OF THE BUREAU OF INTERNAL REVENUE,
WHICHEVER IS HIGHER, OR IF THERE IS NONE, THE STATED VALUE OF
THE PROPERTY IN LITIGATION OR THE VALUE OF THE PERSONAL
PROPERTY IN LITIGATION X X X AS ALLEGED BY THE CLAIMANT, is:
The docket fees under Section 7(a), Rule 141, in cases involving real
property depend on the fair market value of the same: the higher the value
of the real property, the higher the docket fees due. In contrast, Section 7(b)
(1), Rule 141 imposes a fixed or flat rate of docket fees on actions incapable
of pecuniary estimation.
xxxx
As can be gleaned from the records, the Amended Complaint was styled as
one for 'Specific Performance and Damages,' whereby private respondents [15]
sought to compel petitioner Sejas to execute fee deed of sale over the
subject land in their favor on the premise that they bought the said land from
petitioner Sejas through a private document. They declared themselves to be
the true and real owners of the subject land and had in fact taken possession
over it to the exclusion of others including petitioner Sejas.
While it may appear that the suit filed is one for specific performance, hence
an aption incapable of pecuniary estimation, a closer look at the allegations
and reliefs prayed for in the Complaint, however, shows that private
respondents were not merely seeking the execution of the deed of sale in
their favor. They were also asking the lower court earnestly to cancel TCT
No. T-46,627 which was allegedly issued to petitioner Paglinawan through
fraudulent means and have the same reconveyed to them as the owners of
the subject land, The ultimate purpose then of private respondents in filing
the complaint before the RTC is to secure their vaunted ownership and title
to the subject land which they claimed was purchased from petitioner Sejas.
Their cause of action clearly springs from their right as purchaser of the
subject land, Under these circumstances, the suit before the RTC is a real
action, affecting as it did title to the real property sought to be reconveyed. A
real action is one in which the plaintiff seeks the recovery of real property;
or, as indicated in what is now Section 1, Rule 4 of the Rules of Court, a real
action is an action affecting title to or recovery of possession of real property.
Section 7, Rule 141 of the Rules of Court, prior to its amendment by A.M. No.
04-2-04-SC, had a specific paragraph governing the assessment of the
docket fees for real action, to wit:
In a real action, the assessed value of the property, or if there is none, the
estimated value thereof shall be alleged by the claimant and shall be the
basis in computing the fees.
But it is important to note that, with the amendments introduced by A.M. No.
04-2-04-SC, which became effective on 16 August 2004, the paragraph in
Section 7, Rule 141 of the Rules of Court, pertaining specifically to the basis
for the computation of docket fees for real actions was deleted. Instead,
Section 7(1) of Rule 141, as amended, provides that 'in cases involving real
property, the FAIR MARKET value of the REAL property in litigation STATED
IN THE CURRENT TAX DECLARATION OR CURRENT ZONAL VALUATION OF
THE BUREAU OF INTERNAL REVENUE, WHICH [sic] IS HIGHER, OR IF THERE
IS NONE, THE STATED VALUE OF THE PROPERTY IN LITIGATION x x x' shall
be the basis for the computation of the docket fees.
The consistent rule is that 'a case is deemed filed only upon payment of the
docket fee regardless of the actual date of filing in court,' and that
jurisdiction over any case is acquired only upon the payment of the
prescribed docket fee which is both mandatory and jurisdictional. x x x
xxxx
xxxx
In fine, We rule and so hold that the RTC never acquired jurisdiction over
Civil Case No. 4633-2K5, hence, its act of taking cognizance of the subject
Complaint was tainted with grave abuse of discretion amounting to lack or
excess of jurisdiction. Grave abuse of discretion is defined as capricious and
whimsical exercise of judgment as is equivalent to lack of jurisdiction.
Given the foregoing, this Court finds it unnecessary to dwell on the issue of
prescription raised by petitioners.
SO ORDERED.[19]
Petitioners filed a Motion for Reconsideration,[20] which the CA denied in its
assailed November 19, 2012 Resolution. Hence, the present Petition.
In a March 19, 2014 Resolution,[21] the Court resolved to give due course to
the instant Petition.
Issues
2. Did the filing of the amended complaint sufficiently divested [sic] and
ousted [sic] the trial court of its jurisdiction over the case that had initially
validly attached by virtue of the Original complaint for specific performance?
[22]
Petitioners' Arguments
In praying that the assailed CA dispositions be set aside and that their
Amended Complaint in Civil Case No. 4633-2K5 be reinstated, petitioners
contend in their Petition and Reply[23] that it was error for the CA to order the
dismissal of their Amended Complaint simply because additional causes of
action were alleged and new reliefs were prayed for, and the additional
docket fees therefor were not paid; that while reconveyance was sought in
the Amended Complaint, the principal action was still for specific
performance, and the reconveyance prayed for was merely incidental
thereto; that since the trial court acquired jurisdiction over the case with the
filing of the original Complaint, it did not lose the same as a result of the
filing of the Amended Complaint; that jurisdiction continued to attach even
with the submission of the Amended Complaint; that their failure to pay the
additional docket fees required for the Amended Complaint does not result in
loss of jurisdiction over the case - instead, the Amended Complaint is simply
not admitted and the original Complaint remains;[24] that instead of
dismissing the case, the Amended Complaint should have been disregarded,
or petitioners should have been ordered to pay the deficiency in docket fees
within a reasonable period of time; that "the rule now is that the court may
allow a reasonable time for the payment of the prescribed fees, or the
balance thereof, and upon such payment, the defect is cured and the court
may properly take cognizance of the action, unless in the meantime
prescription has set in and consequently barred the right of action;" [25] and
that the rules of procedure should be liberally applied in their case, as there
is no intention to evade the payment of additional docket fees, as is shown
by the payment of the original filing fees when the case was instituted.
Respondents' Arguments
Respondents, on the other hand, argue in their Comment [26] that the CA was
correct in ruling that Civil Case No. 4633-2K5 should be dismissed; that while
the complaint is for specific performance, the relief prayed for includes
reconveyance, which is a real action - in which case the assessed value of the
property should have been alleged for the proper computation of the docket
fees. Thus, they pray for the denial of the Petition, with double costs against
petitioners.
Our Ruling
Since Civil Case No. 4633-2K5 is a real action made so by the Amended
Complaint later filed, petitioners should have observed the requirement
under A.M. No. 04-2-04-SC[28] relative to declaring the fair market value of
the property as stated in the current tax declaration or zonal valuation of the
Bureau of Internal Revenue (BIR), Since no such allegation was made in the
Amended Complaint, then the value of the subject property as stated in the
handwritten document sued upon and restated in the Amended Complaint
should be the basis for determining jurisdiction and the amount of docket
fees to be paid.
2) In all civil actions which involve the title to, or possession of, real
property, or any interest therein, where the assessed value of the property
involved exceeds Twenty thousand pesos (P20,000.00) or, for civil actions in
Metro Manila, where such value exceeds Fifty thousand pesos (P50,000.00)
except actions for forcible entry into and unlawful detainer of lands or
buildings, original jurisdiction over which is conferred upon the Metropolitan
Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts.
On the other hand, jurisdiction of first level courts is prescribed in Sec. 33 of
BP 129, which provides:
Sec. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and
Municipal Circuit Trial Courts in civil cases.—Metropolitan Trial Courts,
Municipal Trial Courts, and Municipal Circuit Trial Courts shall exercise:
xxxx
3) Exclusive original jurisdiction in all civil actions which involve title to, or
possession of, real property, or any interest therein where the assessed
value of the property or interest therein does not exceed Twenty thousand
pesos (P20,000.00) or, in civil actions in Metro Manila, where such assessed
value does not exceed Fifty thousand pesos (P50,000.00) exclusive of
interest, damages of whatever kind, attorney's fees, litigation expenses and
costs: Provided, That in cases of land not declared for taxation purposes, the
value of such property shall be determined by the assessed value of the
adjacent lots.[30]
However, the CA failed to consider that in determining jurisdiction, it could
rely on the declaration made in the Amended Complaint that the property is
valued at P6,000.00. The handwritten document sued upon and the
pleadings indicate that the property was purchased by petitioners for the
price of P6,000.00. For purposes of filing the civil case against respondents,
this amount should be the stated value of the property in the absence of a
current tax declaration or zonal valuation of the BIR. Rule 141 of the Rules of
Court, as amended by A.M. No. 04-2-04-SC and Supreme Court Amended
Administrative Circular No. 35-2004, provides that -
a) For filing an action or a permissive OR COMPULSORY counterclaim,
CROSS-CLAIM, or money claim against an estate not based on judgment, or
for filing a third-party, fourth-party, etc. complaint, or a complaint-in-
intervention, if the total sum claimed, INCLUSIVE OF INTERESTS,
PENALTIES, SURCHARGES, DAMAGES OF WHATEVER KIND, AND
ATTORNEY'S FEES, LITIGATION EXPENSES AND COSTS and/or in cases
involving property, the FAIR MARKET value of the REAL property in litigation
STATED IN THE CURRENT TAX DECLARATION OR CURRENT ZONAL
VALUATION OF THE BUREAU OF INTERNAL REVENUE, WHICHEVER IS
HIGHER, OR IF THERE IS NONE, THE STATED VALUE OF THE
PROPERTY IN LITIGATION OR THE VALUE OF THE PERSONAL PROPERTY
IN LITIGATION AS ALLEGED BY THE CLAIMANT x x x (Emphasis supplied)
shall be the basis for the computation of the docket fees to be paid. Since the
value of the subject property as stated in the Amended Complaint is just
P6,000.00, then the RTC did not have jurisdiction over petitioners' case in
the first instance; it should have dismissed Civil Case No. 4633-2K5. But it
did not. In continuing to take cognizance of the case, the trial court clearly
committed grave abuse of discretion.
SO ORDERED.
Before us is a petition for certiorari assailing the Order[1] dated July 22, 2014
issued by the Regional Trial Court (RTC), Branch 6, Kalibo, Aklan as well as
the Order[2] dated August 18, 2014 denying reconsideration thereof.
2. That on October 13, 2008, defendants borrowed from plaintiff the sum of
Two Hundred Fifty Thousand Pesos (P250,000.00), Philippine Currency,
payable within the period of one (1) year from said date, with an interest
thereon at the rate of 5% per month; and to secure the prompt and full
payment of the principal and interest, defendants made and executed on
October 13, 2008 a Deed of Real Estate Mortgage in favor of plaintiff upon a
parcel of land and improvements thereon described as follows:
x x x
4. That the time for payment of said loan is overdue and defendants failed
and refused to pay both the principal obligation and the interest due starting
from February 2011 to the present notwithstanding repeated demands;
3. That plaintiff be granted such other relief in law and equity. [4]
Respondents spouses Barrios filed their Answer[5] with Special and Affirmative
Defenses contending that the computation of their alleged loan obligation
was not accurate; that they had filed with the RTC a petition for rehabilitation
of a financially distressed individuals under Special Proceeding No. 9845,
thus there is a need to suspend the foreclosure proceedings. On the other
hand, respondent Matorres filed his Answer [6] with Special and Affirmative
Defenses admitting that the subject land was mortgaged to him; that he had
also filed a judicial foreclosure case against respondents spouses Barrios
pending with the RTC of Kalibo Aklan, Branch 6, docketed as Civil Case No.
9642; that petitioner had no cause of action against him as they did not have
any transaction with each other; and prayed for damages and attorney's
fees, and cross-claim against respondent spouses for moral damages.
On July 22, 2014, the RTC issued the assailed Order as follows:
Civil Cases Nos. 9642 and 9811 are complaints for Foreclosure of Real Estate
Mortgage that involved the same property, Lot 5891-A-4, situated in Baybay,
Makato, Aklan, owned by Spouses Clarence Barrios and Anna Lee Barrios.
It appearing from the complaint that the assessed value of the property
mortgaged is only P13,380.00 and the instant cases being a real action, the
assessed value of the property determines the jurisdiction.
The assessed value of the property involved being below P20,000.00, it is the
first level court that has jurisdiction over the cases.
Premises considered, for lack of jurisdiction, Civil Cases Nos. 9642 and 9811
are ordered DISMISSED without prejudice.
SO ORDERED.[7]
Petitioner and respondent Matorres filed their respective motions for
reconsideration.
In an Order dated August 18, 2014, the RTC denied petitioner's motion as
follows:
xxxx
A petition for foreclosure of real estate mortgage is a real action and the
assessed value of the property determines jurisdiction while location of the
property determines the venue.
Petitioner filed the instant petition for certiorari alleging grave abuse of
discretion committed by the RTC when it ordered the dismissal of her
foreclosure case without prejudice and denying her motion for
reconsideration. She argues that foreclosure of mortgage is an action
incapable of pecuniary estimation which is within the exclusive jurisdiction of
the RTC.
The issue for resolution is whether the RTC committed grave abuse of
discretion in dismissing the foreclosure cases filed with it on the ground of
lack of jurisdiction.
The RTC dismissed the foreclosure cases finding that being a real action and
the assessed value of the mortgaged property is only P13,380.00, it is the
first level court which has jurisdiction over the case and not the RTC.
Jurisdiction over the subject matter is the power to hear and determine cases
of the general class to which the proceedings in question belong. It is
conferred by law and an objection based on this ground cannot be waived by
the parties.[12] To determine whether a court has jurisdiction over the subject
matter of a case, it is important to determine the nature of the cause of
action and of the relief sought.[13]
Batas Pambansa Blg. (BP) 129 as amended by Republic Act No. (RA) 7691
pertinently provides for the jurisdiction of the RTC and the first level courts
as follows:
Sec. 19. Jurisdiction in civil cases. - Regional Trial Courts shall exercise
exclusive original jurisdiction:
2. In all civil actions which involve the title to, or possession of, real
property, or any interest therein, where the assessed value of the property
involved exceeds Twenty thousand pesos (P20,000.00) or, for civil actions in
Metro Manila, where such value exceeds Fifty thousand pesos (P50,000.00)
except actions for forcible entry into and unlawful detainer of lands or
buildings, original jurisdiction over which is conferred upon the Metropolitan
Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts.
and
Sec. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and
Municipal Circuit Trial Courts in civil cases. - Metropolitan Trial Courts,
Municipal Trial Courts, and Municipal Circuit Trial Courts shall exercise:
x x x x
3) Exclusive original jurisdiction in all civil actions which involve title to, or
possession of, real property, or any interest therein where the assessed
value of the property or interest therein does not exceed Twenty thousand
pesos (P20,000.00) or, in civil actions in Metro Manila, where such assessed
value does not exceed Fifty thousand pesos (P50,000.00) exclusive of
interest, damages of whatever kind, attorney's fees, litigation expenses and
costs: Provided, That in cases of land not declared for taxation purposes, the
value of such property shall be determined by the assessed value of the
adjacent lots.
From the foregoing, the RTC exercises exclusive original jurisdiction in civil
actions where the subject of the litigation is incapable of pecuniary
estimation. It also has jurisdiction in civil cases involving title to, or
possession of, real property or any interest in it where the assessed value of
the property involved exceeds P20,000.00, and if it is below P20,000.00, it is
the first level court which has jurisdiction. An action "involving title to real
property" means that the plaintiffs cause of action is based on a claim that
he owns such property or that he has the legal right to have exclusive
control, possession, enjoyment, or disposition of the same. [14]
[I]n determining whether an action is one the subject matter of which is not
capable of pecuniary estimation, this Court has adopted the criterion of first
ascertaining the nature of the principal action or remedy sought. If it is
primarily for the recovery of a sum of money, the claim is considered capable
of pecuniary estimation, and whether jurisdiction is in the municipal courts or
in the courts of first instance would depend on the amount of the claim.
However, where the basic issue is something other than the right to recover
a sum of money, where the money claim is purely incidental to, or a
consequence of, the principal relief sought, this Court has considered such
actions as cases where the subject of the litigation may not be estimated in
terms of money, and are cognizable exclusively by courts of first instance
(now Regional Trial Courts).
While actions under Sec. 33(3) of B.P. 129 are also incapable of pecuniary
estimation, the law specifically mandates that they are cognizable by the
MTC, METC, or MCTC where the assessed value of the real property involved
does exceed P20,000.00 in Metro Manila, or P50,000.00, if located
elsewhere. If the value exceeds P20,000.00 or P50,000.00 as the case may
be, it is the Regional Trial Courts which have jurisdiction under Sec. 19(2).
However, the subject matter of the complaint in this case is annulment of a
document denominated as "DECLARATION OF HEIRS AND DEED OF
CONFIRMATION OF PREVIOUS ORAL PARTITION."[20]
Clearly, the last paragraph clarified that while civil actions which involve title
to, or possession of, real property, or any interest therein, are also incapable
of pecuniary estimation as it is not for recovery of money, the court's
jurisdiction will be determined by the assessed value of the property
involved.
SO ORDERED.
6. Rudy L.Racpan vs. Sharon Barroga-Haigh, G.R. No. 234499 June 6, 2018
This treats of the Petition for Review on Certiorari under Rule 45 of the Rules
of Court, assailing the February 13, 2017 Decision[1] and August 17, 2017
Resolution[2] of the Court of Appeals (CA) in CA G.R. CV No. 04034-MIN. Said
rulings affirmed the dismissal of the petitioner's complaint for improper
venue and failure to comply with a condition precedent to its filing.
Factual Antecedents
Petitioner Rudy Racpan filed a Complaint "For Declaration For Nullity of Deed
of Sale with Right to Repurchase & Attorney's Fees"[3] before the Regional
Trial Court of Davao City, Branch 11 (RTC-Davao). In his Complaint, which
was docketed as Civil Case No. 34, 742-2012, petitioner alleged that after his
wife's death on November 12, 2011, he instructed their daughter to arrange
his wife's important documents. In so doing, their daughter discovered a
Deed of Sale with Right to Purchase dated March 29, 2011. The Deed of Sale
was purportedly signed by him and his late wife and appeared to convey to
respondent Sharon Barroga-Haigh a real property registered in his name
under TCT No. T-142-2011009374 and located in Bo. Tuganay, Municipality
of Carmen, Province of Davao del Norte.[4] Petitioner maintained that the
Deed of Sale was falsified and fictitious as he never signed any contract, not
even any special power of attorney, for the sale or conveyance of the
property which is still in his possession. Thus, he prayed for the declaration
of the Deed of Sale's nullity.
Acting on the motion, the RTC-Davao set the case for preliminary hearing
and thereafter issued an Order dated September 18, 2013 [6] dismissing the
petitioner's Complaint as follows:
WHEREFORE, in view of the foregoing, the present case is hereby ORDERED
DISMISSED for being improperly filed before the Regional Trial Court of
Davao City and for failure to comply with a condition precedent prior to its
filing.
SO ORDERED.[7]
Petitioner moved for the RTC-Davao to reconsider[8] its Order dismissing the
complaint but the trial court remained steadfast and denied his motion in its
June 19, 2004 Order.[9] Hence, the petitioner came to the CA on appeal.[10]
As stated at the outset hereof, the appellate court affirmed the dismissal of
the petitioner's Complaint as follows:
WHEREFORE, the order dated September 18, 2013 of the Regional Trial
Court, Branch 11, Davao City in Civil Case No. 34,742-12 is AFFIRMED.
SO ORDERED.[11]
The CA explained that petitioner's Complaint is a real action as it wants the
court to abrogate and nullify. whatever right or claim the respondent might
have on the property subject of the Deed of Sale. Hence, for the appellate
court, Section 1, Rule 4 of the Rules of Court is applicable. Under this Rule,
real actions shall be commenced and tried in the proper court which has
jurisdiction over the area wherein the real property involved is situated. As
the property involved is located in Bo. Tuganay, Municipality of Cannen,
Province of Davao del Norte, the appellate court held that the Complaint
should have been lodged with the RTC of Davao del Norte and not the RTC-
Davao.
Further, the CA found that the petitioner's prayer for the issuance of a writ of
preliminary injunction is a mere ploy to avoid the requirement of a barangay
conciliation, as a mere annotation of a notice of lis pendens would achieve
the same effect without having to undergo trial or post a bond.
In a Resolution dated August 17, 2017[12] the CA stood its ground by denying
the petitioner's Motion for Reconsideration.[13]
Hence, the petitioner's present recourse, it being his contention that the
Complaint he interposed with the RTC-Davao is a personal action. He
maintains that his Complaint is not concerned with title to or possession of
real property, as in fact, no transfer of possession or title of the real property
to the respondent has occurred.[14] For the petitioner, the Complaint's venue
was properly laid in Davao City where both he and the respondent reside.
Issue
The main and decisive issue for resolution is whether the CA erred in
affirming the dismissal of the petitioner's Complaint.
Our Ruling
The venue was properly laid as the complaint was a personal action.
VENUE OF ACTIONS
Forcible entry and detainer actions shall be commenced and tried in the
municipal trial court of the municipality or city wherein the real property
involved, or a portion thereof, is situated.
In the Pascual case, relied upon by petitioner, the contract of sale of the
fishpond was assailed as fictitious for lack of consideration. We held that
there being no contract to begin with, there is nothing to annul. Hence, we
deemed the action for annulment of the said fictitious contract therein as one
constituting a real action for the recovery of the fishpond subject thereof
We cannot, however, apply the foregoing doctrine to the instant case. Note
that in Pascual, title to and possession of the subject fishpond had already
passed to the vendee. There was, therefore, a need to recover the said
fishpond. But in the instant case, ownership of the parcels of land
subject of the questioned real estate mortgage was never transferred
to petitioner, but remained with TOPROS. Thus, no real action for the
recovery of real property is involved. This being the case, TOPROS'
action for annulment of the contracts of loan and real estate
mortgage remains a personal action. (emphasis supplied)
In the Complaint filed with the court a quo, petitioner sought the nullification
of the Deed of Sale with Right to Repurchase on the strength of this claim:
he did not sign the same nor did he execute any special power of attorney in
favor of his late wife to do so in his behalf.[18] But, as there was no
allegation that the possession and title to the property have been
transferred to respondent, nowhere in the Complaint did petitioner
allege or pray for the recovery or reconveyance of the real property.
Pertinent parts of the Complaint read thus:
4. Plaintiff was married to Ma. Lucila B. Racpan on 20 December 1978. The
latter died on 13 November 2011 at Oroville, California...
xxxx
8.a Moreover, plaintiff did not also execute any special power of
attorney in favour of his deceased wife authoring the latter to [sell]
the subject property to the defendant.
8.b On the other hand, the subject property is registered under the
name of plaintiff Rudy Racpan and NOT TO SPOUSES Racpan. The
words "married to Ma. Lucila B. Racpan" only signified the civil status of
plaintiff to the latter.
xxxx
9.d Evidently, from the foregoing the (alleged) subject deed of sale with
right to repurchase is NULL AND VOID as the same contains the
falsified signature of the herein plaintiff.
xxxx
11. Plaintiff before and during the time of the execution of the subject Deed
of Sale with Right to Repurchase dated 29 March 2011 NEVER MET defendant
Saigh. It was only sometime in December 7 or 8, 2011 that he met
defendant Saigh during the wake of his wife wherein he was introduced to
the former by Orly Gabriel.
(b) Where parties may go directly to court. - The parties may go directly to
court in the following instances:
(2) Where a person has otherwise been deprived of personal liberty calling
for habeas corpus proceedings;
(4) Where the action may otherwise be barred by the statute of limitations.
While there is no dispute herein that the present case was never referred to
the Barangay Lupon for conciliation before petitioner instituted Civil Case No.
34, 742-2012, there is likewise no quibbling that his Complaint was coupled
with a prayer for the issuance of a preliminary injunction. [20] Hence, it falls
among the exceptions to the rule requiring the referral to baranggay
conciliation.
SO ORDERED.
7. Antonio T. Chua vs. Total Office Products and Services G.R. No.
152808, Sept. 30, 2005
For review on certiorari is the decision[1] dated November 28, 2001 of the
Court of Appeals and its resolution[2] of April 1, 2002 in CA-G.R. SP No.
62592. The assailed decision and resolution dismissed the special civil action
for certiorari against the orders of August 9, 2000 [3] and October 6, 2000[4]
issued by Judge Lorifel Lacap Pahimna in Civil Case No. 67736.
On December 28, 1999, respondent Total Office Products and Services, Inc.,
(TOPROS) lodged a complaint for annulment of contracts of loan and real
estate mortgage against herein petitioner Antonio T. Chua before the
Regional Trial Court of Pasig City. The case was docketed as Civil Case No.
67736 and was raffled to the sala of Judge Lorifel Lacap Pahimna.
TOPROS, however, maintains that the appellate court correctly sustained the
lower court's finding that the instant complaint for annulment of loan and
real estate mortgage contracts is a personal action. TOPROS points out that
a complaint for the declaration of nullity of a loan contract for lack of consent
and consideration remains a personal action even if the said action will
necessarily affect the accessory real estate mortgage.
TOPROS argues that Pascual is inapplicable because the subject contract
therein was a contract of sale of a parcel of land where title and possession
were already transferred to the defendant. TOPROS further contends that
Banco Español-Filipino is also inapplicable since the personal action filed
therein was one which affected the personal status of a nonresident
defendant.
Considering the facts and the submission of the parties, we find the petition
bereft of merit.
Well-settled is the rule that an action to annul a contract of loan and its
accessory real estate mortgage is a personal action. In a personal action,
the plaintiff seeks the recovery of personal property, the enforcement of a
contract or the recovery of damages. [12] In contrast, in a real action, the
plaintiff seeks the recovery of real property, or, as indicated in Section 2 (a),
Rule 4 of the then Rules of Court, a real action is an action affecting title to
real property or for the recovery of possession, or for partition or
condemnation of, or foreclosure of mortgage on, real property. [13]
In the Pascual case, relied upon by petitioner, the contract of sale of the
fishpond was assailed as fictitious for lack of consideration. We held that
there being no contract to begin with, there is nothing to annul. Hence, we
deemed the action for annulment of the said fictitious contract therein as one
constituting a real action for the recovery of the fishpond subject thereof.
We cannot, however, apply the foregoing doctrine to the instant case. Note
that in Pascual, title to and possession of the subject fishpond had already
passed to the vendee. There was, therefore, a need to recover the said
fishpond. But in the instant case, ownership of the parcels of land subject of
the questioned real estate mortgage was never transferred to petitioner, but
remained with TOPROS. Thus, no real action for the recovery of real
property is involved. This being the case, TOPROS' action for annulment of
the contracts of loan and real estate mortgage remains a personal action.
The Court of Appeals finds that Hernandez v. Rural Bank of Lucena, Inc.
provides the proper precedent in this case. In Hernandez, appellants
contended that the action of the Hernandez spouses for the cancellation of
the mortgage on their lots was a real action affecting title to real property,
which should have been filed in the place where the mortgaged lots were
situated. Rule 4, Section 2 (a), of the then Rules of Court, was applied, to
wit:
SEC. 2. Venue in Courts of First Instance. – (a) Real actions. – Actions
affecting title to, or for recovery of possession, or for partition or
condemnation of, or foreclosure of mortgage on, real property, shall be
commenced and tried in the province where the property or any part thereof
lies.
The Court pointed out in the Hernandez case that with respect to mortgage,
the rule on real actions only mentions an action for foreclosure of a real
estate mortgage. It does not include an action for the cancellation of a real
estate mortgage. Exclusio unios est inclusio alterius. The latter thus falls
under the catch-all provision on personal actions under paragraph (b) of the
above-cited section, to wit:
SEC. 2 (b) Personal actions. – All other actions may be commenced and tried
where the defendant or any of the defendants resides or may be found, or
where the plaintiff or any of the plaintiffs resides, at the election of the
plaintiff.
In the same vein, the action for annulment of a real estate mortgage in the
present case must fall under Section 2 of Rule 4, to wit:
SEC. 2. Venue of personal actions. – All other actions may be commenced
and tried where the plaintiff or any of the principal plaintiffs resides, or where
the defendant or any of the principal defendants resides, or in the case of a
non-resident defendant where he may be found, at the election of the
plaintiff.[14]
Thus, Pasig City, where the parties reside, is the proper venue of the action
to nullify the subject loan and real estate mortgage contracts. The Court of
Appeals committed no reversible error in upholding the orders of the
Regional Trial Court denying petitioner's motion to dismiss the case on the
ground of improper venue.
Anent the second issue, Section 7, Rule 3 of the Revised Rules of Court
provides:
We thus hold that John Charles Chang, Jr., is not an indispensable party in
Civil Case No. 67736. This is without prejudice to any separate action
TOPROS may institute against Chang, Jr., in a proper proceeding.
No pronouncement as to costs.
SO ORDERED.
-------------------------------------------
NOTE: From this day until May 10, 2020, consider this your pointers for review.
Comes May 11, 2020, this will be your examination. You may start answering
now, or wait for May 11, 2020 .. TO BE EMAILED TO ME ON (OR BETTER,
BEFORE) THE DAY STATED IN THE ADVISORY FROM THE DEAN’S OFFICE.
(still compliant naman di ba? )
p.s. IT HAS BEEN A PLEASURE BEING WITH YOU. THANK YOU FOR
BEARING WITH MY WAY OF “TEACHING”. I WOULD HAVE WANTED TO
COMPLETE THE COURSE WITH YOU BUT I GUESS THIS IS HOW IT IS
MEANT TO BE . I AM SORRY THAT I DID NOT STIR ENOUGH CONFUSION
TO INSPIRE YOU TO READ .... STAY SAFE.