Professional Documents
Culture Documents
GOODLAND, through its counsel on record, Atty. Bautista, filed a motion for
DECISION reconsideration[8] and a supplemental motion for reconsideration, [9] but both were denied
in the Order[10] dated April 25, 2007, which was received by Atty. Bautista on June 15,
NACHURA, J.: 2007.[11]
Petitioner assails the February 16, 2009 Decision[1] and the May 18, 2009 Relentless, GOODLAND sought recourse with the CA by initially filing a Notice of
Resolution[2] of the Court of Appeals (CA) in CA-G.R. SP No. 103304, annulling the August Appeal[12] with the RTC, through a certain Atty. Lito Mondragon (Atty. Mondragon) of the
23, 2007[3] and February 15, 2008[4] Orders of the Regional Trial Court (RTC) of Makati City, Mondragon & Montoya Law Offices. On August 23, 2007, the RTC issued an
Branch 150, which in turn denied due course to respondent Goodland Company, Inc.s Order[13] denying due course to GOODLANDs notice of appeal for being legally inutile due
(GOODLAND) notice of appeal for invalid substitution of counsel. to Atty. Mondragons failure to properly effect the substitution of former counsel on
The antecedents: record, Atty. Bautista. GOODLAND moved for reconsideration, but the same was denied in
the Order dated February 15, 2008.[14]
An Ex-Parte Application/Petition for the Issuance of Writ of Possession[5] was filed by Asia GOODLAND elevated the incident to the CA by way of a special
United Bank (AUB) over a 5,801-square- meter lot located in Makati City and covered by civil acton for certiorari. In its February 16, 2009 Decision, the CA granted the petition and
Transfer Certificate of Title (TCT) No. 223120 of the Registry of Deeds of Makati in AUBs directed the RTC to give due course to the notice of appeal, thus:
name. The property was previously registered in the name of GOODLAND under TCT No. WHEREFORE, the petition is hereby GRANTED. The
192674 (114645). assailed Orders dated August 23, 2007 and February 15, 2008 of the
Regional Trial Court, Branch 150, Makati City are ANNULLED and SET
The petition alleged that, on February 20, 2000, GOODLAND executed a Third Party Real ASIDE. The trial court is DIRECTED to give due course to petitioners
Estate Mortgage on the property in favor of AUB to secure the P202 million credit Notice of Appeal.
accommodation extended by the latter to Radiomarine Network (Smartnet) Inc.
(Radiomarine). SO ORDERED.[15]
When Radiomarine defaulted in the payment of its obligation, AUB instituted extrajudicial
Aggrieved, AUB moved for reconsideration, but the CA denied the motion in its Board gravely abused its discretion when it denied due course to the Notice of Appeal and
Resolution dated May 18, 2009. Hence, the present petition for review Notice of Entry of Appearance filed by petitioners new counsel for failure to effect a valid
on certiorari,[16] praying for the reinstatement of the RTC Order. substitution of the former counsel on record.
The petition is meritorious. We clarified that the new counsel never intended to replace the counsel of
record because, although not so specified in the notice, they entered their appearance as
Under Rule 138, Section 26 of the Rules of Court, for a substitution of attorney to be collaborating counsel. Absent a formal notice of substitution, all lawyers who appear
effectual, the following essential requisites must concur: (1) there must be a written before the court or file pleadings in behalf of a client are considered counsel of the latter.
application for substitution; (2) it must be filed with the written consent of the client; (3) it We pursued a liberal application of the rule in order not to frustrate the just, speedy, and
must be with the written consent of the attorney substituted; and (4) in case the consent inexpensive determination of the controversy.
of the attorney to be substituted cannot be obtained, there must at least be proof of notice
that the motion for substitution was served on him in the manner prescribed by the Rules In Pioneer, we adopted a strict posture and declared the notice of withdrawal of
of Court. [17] appeal filed by appellants new counsel as a mere scrap of paper for his failure to file
beforehand a motion for the substitution of the counsel on record.
The courts a quo were uniform and correct in finding that Atty. Mondragon failed
to observe the prescribed procedure and, thus, no valid substitution of counsel was Provoking such deportment was the absence of a special power of attorney authorizing the
actualized. However, they took divergent postures as to the repercussion of such non- withdrawal of the appeal in addition to the lack of a proper substitution of counsel. More
compliance, thereby igniting the herein controversy. importantly, we found that the withdrawal of the appeal was calculated to frustrate the
satisfaction of the judgment debt rendered against appellant, thereby necessitating a rigid
The RTC strictly imposed the rule on substitution of counsel and held that the application of the rules in order to deter appellant from benefiting from its own deleterious
notice of appeal filed by Atty. Mondragon was a mere scrap of paper. manipulation thereof.
The emerging trend of jurisprudence is more inclined to the liberal and flexible
However, relying on our pronouncement in Land Bank of the Philippines v. application of the Rules of Court. However, we have not been remiss in reminding the
Pamintuan Development Co.,[18] the CA brushed aside the procedural lapse and took a bench and the bar that zealous compliance with the rules is still the general course of
liberal stance on considerations of substantial justice, viz.: action. Rules of procedure are in place to ensure the orderly, just, and speedy dispensation
of cases;[21] to this end, inflexibility or liberality must be weighed. The relaxation or
It is a far better and more prudent course of action for the suspension of procedural rules or the exemption of a case from their operation is
court to excuse a technical lapse and afford the parties a review of the warranted only by compelling reasons or when the purpose of justice requires it.[22]
case on appeal to attain the ends of justice rather than dispose of the
case on technicality and cause a grave injustice to the parties, giving a As early as 1998, in Hon. Fortich v. Hon. Corona,[23] we expounded on these guiding
false impression of speedy disposal of cases while actually resulting in principles:
more delay, if not a miscarriage of justice. Thus, substantial justice
would be better served by giving due course to petitioners notice of Procedural rules, we must stress, should be treated with
appeal.[19] utmost respect and due regard since they are designed to facilitate the
AUB argues that the liberality applied by the Court in Land Bank is incompatible adjudication of cases to remedy the worsening problem of delay in the
with the herein controversy, and that Pioneer Insurance and Surety Corporation v. De Dios resolution of rival claims and in the administration of justice. The
Transportation Co., Inc.,[20] which espouses the same view adopted by the RTC, is more requirement is in pursuance to the bill of rights inscribed in the
appropriate. Constitution which guarantees that all persons shall have a right to the
speedy disposition of their cases before all judicial, quasi-judicial
GOODLAND, on the other hand, insists that the CA committed no reversible error and administrative bodies. The adjudicatory bodies and the parties to a
in ordering that the notice of appeal be allowed in order not to frustrate the ends of case are thus enjoined to abide strictly by the rules. While it is true that
substantial justice. a litigation is not a game of technicalities, it is equally true that every
case must be prosecuted in accordance with the prescribed procedure
We agree with AUB. A revisit of our pronouncements in Land Bank and Pioneer is to ensure an orderly and speedy administration of justice. There have
in order. been some instances wherein this Court allowed a relaxation in the
application of the rules, but this flexibility was never intended to forge
a bastion for erring litigants to violate the rules with impunity. A liberal
In Land Bank, we held that the Department of Agrarian Reform Adjudication
interpretation and application of the rules of procedure can be resorted matter of right.[27] As the confirmed owner, the purchasers right to possession becomes
to only in proper cases and under justifiable causes and circumstances. absolute.[28] There is even no need for him to post a bond,[29] and it is the ministerial duty
of the courts to issue the same upon proper application and proof of title. [30] To accentuate
the writs ministerial character, the Court has consistently disallowed injunction to prohibit
In Sebastian v. Hon. Morales,[24] we straightened out the misconception that the its issuance despite a pending action for annulment of mortgage or the foreclosure
enforcement of procedural rules should never be permitted if it would prejudice the itself.[31]
substantive rights of litigants:
The nature of an ex parte petition for issuance of the possessory writ under Act
Under Rule 1, Section 6 of the 1997 Rules of Civil Procedure, liberal No. 3135 has been described as a non-litigious proceeding and summary in nature.[32] As
construction of the rules is the controlling principle to effect substantial an ex parte proceeding, it is brought for the benefit of one party only, and without notice
justice. Thus, litigations should, as much as possible, be decided on to or consent by any person adversely interested.[33]
their merits and not on technicalities. This does not mean, however,
that procedural rules are to be ignored or disdained at will to suit the
convenience of a party. Procedural law has its own rationale in the Subsequent proceedings in the appellate courts would merely involve a
orderly administration of justice, namely, to ensure the effective reiteration of the foregoing settled doctrines. The issue involved in the assailed RTC
enforcement of substantive rights by providing for a system that issuances is conclusively determined by the above cited legal dictum, and it would be
obviates arbitrariness, caprice, despotism, or whimsicality in the unnecessarily vexatious and unjust to allow the present controversy to undergo protracted
settlement of disputes. Hence, it is a mistake to suppose that litigation.
substantive law and procedural law are contradictory to each other, or
as often suggested, that enforcement of procedural rules should never AUBs right of possession is founded on its right of ownership over the property
be permitted if it would result in prejudice to the substantive rights of which it purchased at the auction sale. Upon expiration of the redemption period and
the litigants. consolidation of the title to the property, its possessory rights over the same became
absolute. We quote with approval the pronouncement of the RTC, viz.:
x x x. Hence, rules of procedure must be faithfully followed
except only when for persuasive reasons, they may be relaxed to As the purchaser of the property in the foreclosure sale to which new
relieve a litigant of an injustice not commensurate with his failure to title has already been issued, petitioners right over the property has
comply with the prescribed procedure. x x x. become absolute, vesting upon it the right of possession and
enjoyment of the property which this Court must aid in effecting its
Indeed, the primordial policy is a faithful observance of the Rules of Court, and delivery. Under the circumstances, and following established doctrine,
their relaxation or suspension should only be for persuasive reasons and only in the issuance of a writ of possession is a ministerial function whereby
meritorious cases, to relieve a litigant of an injustice not commensurate with the degree of the court exercises neither discretion nor judgment x x x. Said writ of
his thoughtlessness in not complying with the procedure prescribed.[25] Further, a bare possession must be enforced without delay x x x.[34]
invocation of the interest of substantial justice will not suffice to override a stringent
implementation of the rules.[26]
The law does not require that a petition for a writ of possession be granted only
A reading of the CAs Decision readily shows that the leniency it granted after documentary and testimonial evidence shall have been offered to and admitted by
GOODLAND was merely anchored on substantial justice. The CA overlooked GOODLANDs the court.[35] As long as a verified petition states the facts sufficient to entitle petitioner to
failure to advance meritorious reasons to support its plea for the relaxation of Rule 138, the relief requested, the court shall issue the writ prayed for.[36]
Section 26. The fact that GOODLAND stands to lose a valuable property is inadequate to
dispense with the exacting imposition of a rather basic rule. Given the foregoing, we are bound to deny a liberal application of the rules on
substitution of counsel and resolve definitively that GOODLANDs notice of appeal merits a
More importantly, the CA failed to realize that the ultimate consequences that denial, for the failure of Atty. Mondragon to effect a valid substitution of the counsel on
will come about should GOODLANDs appeal proceed would in fact contravene substantial record. Substantial justice would be better served if the notice of appeal is disallowed. In
justice. The CA and, eventually, this Court will just re-litigate an otherwise non-litigious the same way that the appellant in Pioneer was not permitted to profit from its own
matter and thereby compound the delay GOODLAND attempts to perpetrate in order to manipulation of the rules on substitution of counsel, so too can GOODLAND be not
prevent AUB from rightfully taking possession of the property. tolerated to foster vexatious delay by allowing its notice of appeal to carry on.
It is a time-honored legal precept that after the consolidation of titles in the buyer's name, WHEREFORE, premises considered, the petition is GRANTED. The February 16, 2009
for failure of the mortgagor to redeem, entitlement to a writ of possession becomes a Decision and the May 18, 2009 Resolution of the Court of Appeals are
hereby ANNULLED and SET ASIDE; and the August 23, 2007 and February 15, 2008 Orders
of the Regional Trial Court of Makati City, Branch 150, are REINSTATED.
SO ORDERED.
The Supreme Court, sitting en banc, shall be the sole judge of all contests relating to the Consequently, we find it imperative to trace the historical antecedents of the PET.
election, returns and qualifications of the President or Vice-President. Article VII, Section 4, paragraph 7 of the 1987 Constitution is an innovation. The precursors
May I seek clarification as to whether or not the matter of determining the outcome of the of the present Constitution did not contain similar provisions and instead vested upon the
contests relating to the election returns and qualifications of the President or Vice- legislature all phases of presidential and vice-presidential elections from the canvassing
President is purely a political matter and, therefore, should not be left entirely to the of election returns, to the proclamation of the president-elect and the vice-president elect,
judiciary. Will the above-quoted provision not impinge on the doctrine of separation of and even the determination, by ordinary legislation, of whether such proclamations may
be contested. Unless the legislature enacted a law creating an institution that would hear the Office of the President and Vice-President of the Philippines, Appropriating Funds
election contests in the Presidential and Vice-Presidential race, a defeated candidate had Therefor and For Other Purposes." This tribunal was composed of nine members, three of
no legal right to demand a recount of the votes cast for the office involved or to challenge whom were the Chief Justice of the Supreme Court and two Associate Justices designated
the ineligibility of the proclaimed candidate. Effectively, presidential and vice-presidential by him, while the six were divided equally between representatives of the majority and
contests were non-justiciable in the then prevailing milieu. minority parties in the Batasang Pambansa.
The omission in the 1935 Constitution was intentional. It was mainly influenced by the Aside from the license to wield powers akin to those of a court of justice, the PET was
absence of a similar provision in its pattern, the Federal Constitution of the United States. permitted to recommend the prosecution of persons, whether public officers or private
Rather, the creation of such tribunal was left to the determination of the National individuals, who in its opinion had participated in any irregularity connected with the
Assembly. The journal of the 1935 Constitutional Convention is crystal clear on this point: canvassing and/or accomplishing of election returns.
Delegate Saguin. For an information. It seems that this Constitution does not contain any The independence of the tribunal was highlighted by a provision allocating a specific
provision with respect to the entity or body which will look into the protests for the budget from the national treasury or Special Activities Fund for its operational expenses. It
positions of the President and Vice-President. was empowered to appoint its own clerk in accordance with its rules. However, the
subordinate officers were strictly employees of the judiciary or other officers of the
President Recto. Neither does the American constitution contain a provision over the
government who were merely designated to the tribunal.
subject.
After the historic People Power Revolution that ended the martial law era and installed
Delegate Saguin. But then, who will decide these protests?
Corazon Aquino as President, civil liberties were restored and a new constitution was
President Recto. I suppose that the National Assembly will decide on that.33 formed.
To fill the void in the 1935 Constitution, the National Assembly enacted R.A. No. 1793, With R.A. No. 1793 as framework, the 1986 Constitutional Commission transformed the
establishing an independent PET to try, hear, and decide protests contesting the election of then statutory PET into a constitutional institution, albeit without its traditional
President and Vice-President. The Chief Justice and the Associate Justices of the Supreme nomenclature:
Court were tasked to sit as its Chairman and Members, respectively. Its composition was
FR. BERNAS. x x x.
extended to retired Supreme Court Justices and incumbent Court of Appeals Justices who
may be appointed as substitutes for ill, absent, or temporarily incapacitated regular x x x. So it became necessary to create a Presidential Electoral Tribunal. What we have
members. done is to constitutionalize what was statutory but it is not an infringement on the
separation of powers because the power being given to the Supreme Court is a judicial
The eleven-member tribunal was empowered to promulgate rules for the conduct of its
power.34
proceedings. It was mandated to sit en banc in deciding presidential and vice-presidential
contests and authorized to exercise powers similar to those conferred upon courts of Clearly, petitioners bete noire of the PET and the exercise of its power are unwarranted.
justice, including the issuance of subpoena, taking of depositions, arrest of witnesses to His arguments that: (1) the Chief Justice and Associate Justices are referred to as
compel their appearance, production of documents and other evidence, and the power to "Chairman" and "Members," respectively; (2) the PET uses a different seal; (3) the
punish contemptuous acts and bearings. The tribunal was assigned a Clerk, subordinate Chairman is authorized to appoint personnel; and (4) additional compensation is allocated
officers, and employees necessary for the efficient performance of its functions. to the "Members," in order to bolster his claim of infirmity in the establishment of the PET,
are too superficial to merit further attention by the Court.
R.A. No. 1793 was implicitly repealed and superseded by the 1973 Constitution which
replaced the bicameral legislature under the 1935 Constitution with the unicameral body Be that as it may, we hasten to clarify the structure of the PET as a legitimate progeny of
of a parliamentary government. Section 4, Article VII of the Constitution, composed of members of the Supreme Court,
sitting en banc. The following exchange in the 1986 Constitutional Commission should
With the 1973 Constitution, a PET was rendered irrelevant, considering that the President
provide enlightenment:
was not directly chosen by the people but elected from among the members of the
National Assembly, while the position of Vice-President was constitutionally non-existent. MR. SUAREZ. Thank you. Let me proceed to line 23, page 2, wherein it is provided, and I
quote:
In 1981, several modifications were introduced to the parliamentary system. Executive
power was restored to the President who was elected directly by the people. An Executive The Supreme Court, sitting en banc[,] shall be the sole judge of all contests relating to the
Committee was formed to assist the President in the performance of his functions and election, returns and qualifications of the President or Vice-President.
duties. Eventually, the Executive Committee was abolished and the Office of Vice-President
Are we not giving enormous work to the Supreme Court especially when it is directed to sit
was installed anew.
en banc as the sole judge of all presidential and vice-presidential election contests?
These changes prompted the National Assembly to revive the PET by enacting, on
MR. SUMULONG. That question will be referred to Commissioner Concepcion.
December 3, 1985, Batas Pambansa Bilang (B.P. Blg.) 884, entitled "An Act Constituting an
Independent Presidential Electoral Tribunal to Try, Hear and Decide Election Contests in MR. CONCEPCION. This function was discharged by the Supreme Court twice and the
Supreme Court was able to dispose of each case in a period of one year as provided by law. MR. SUAREZ. I see.
Of course, that was probably during the late 1960s and early 1970s. I do not know how the
MR. CONCEPCION. The steps involved in this contest are: First, the ballot boxes are opened
present Supreme Court would react to such circumstances, but there is also the question of
before teams of three, generally, a representative each of the court, of the protestant and
who else would hear the election protests.
of the "protestee." It is all a questions of how many teams are organized. Of course, that
MR. SUAREZ. We are asking this question because between lines 23 to 25, there are no can be expensive, but it would be expensive whatever court one would choose. There were
rules provided for the hearings and there is not time limit or duration for the election times that the Supreme Court, with sometimes 50 teams at the same time working, would
contest to be decided by the Supreme Court. Also, we will have to consider the historical classify the objections, the kind of problems, and the court would only go over the objected
background that when R.A. 1793, which organized the Presidential Electoral Tribunal, was votes on which the parties could not agree. So it is not as awesome as it would appear
promulgated on June 21, 1957, at least three famous election contests were presented and insofar as the Court is concerned. What is awesome is the cost of the revision of the ballots
two of them ended up in withdrawal by the protestants out of sheer frustration because of because each party would have to appoint one representative for every team, and that
the delay in the resolution of the cases. I am referring to the electoral protest that was may take quite a big amount.
lodged by former President Carlos P. Garcia against our "kabalen" former President
MR. SUAREZ. If we draw from the Commissioners experience which he is sharing with us,
Diosdado Macapagal in 1961 and the vice-presidential election contest filed by the late
what would be the reasonable period for the election contest to be decided?
Senator Gerardo Roxas against Vice-President Fernando Lopez in 1965.
MR. CONCEPCION. Insofar as the Supreme Court is concerned, the Supreme Court always
MR. CONCEPCION. I cannot answer for what the protestants had in mind. But when that
manages to dispose of the case in one year.
protest of Senator Roxas was withdrawn, the results were already available. Senator Roxas
did not want to have a decision adverse to him. The votes were being counted already, and MR. SUAREZ. In one year. Thank you for the clarification.35
he did not get what he expected so rather than have a decision adverse to his protest, he Obvious from the foregoing is the intent to bestow independence to the Supreme Court as
withdrew the case. the PET, to undertake the Herculean task of deciding election protests involving
xxxx presidential and vice-presidential candidates in accordance with the process outlined by
former Chief Justice Roberto Concepcion. It was made in response to the concern aired by
MR. SUAREZ. I see. So the Commission would not have any objection to vesting in the
delegate Jose E. Suarez that the additional duty may prove too burdensome for the
Supreme Court this matter of resolving presidential and vice-presidential contests?
Supreme Court. This explicit grant of independence and of the plenary powers needed to
MR. CONCEPCION. Personally, I would not have any objection. discharge this burden justifies the budget allocation of the PET.
MR. SUAREZ. Thank you. The conferment of additional jurisdiction to the Supreme Court, with the duty
characterized as an "awesome" task, includes the means necessary to carry it into effect
Would the Commissioner not consider that violative of the doctrine of separation of
under the doctrine of necessary implication.36 We cannot overemphasize that the
powers?
abstraction of the PET from the explicit grant of power to the Supreme Court, given our
MR. CONCEPCION. I think Commissioner Bernas explained that this is a contest between abundant experience, is not unwarranted.
two parties. This is a judicial power.
A plain reading of Article VII, Section 4, paragraph 7, readily reveals a grant of authority to
MR. SUAREZ. We know, but practically the Committee is giving to the judiciary the right to the Supreme Court sitting en banc. In the same vein, although the method by which the
declare who will be the President of our country, which to me is a political action. Supreme Court exercises this authority is not specified in the provision, the grant of power
MR. CONCEPCION. There are legal rights which are enforceable under the law, and these does not contain any limitation on the Supreme Courts exercise thereof. The Supreme
are essentially justiciable questions. Courts method of deciding presidential and vice-presidential election contests, through
the PET, is actually a derivative of the exercise of the prerogative conferred by the
MR. SUAREZ. If the election contest proved to be long, burdensome and tedious, practically aforequoted constitutional provision. Thus, the subsequent directive in the provision for
all the time of the Supreme Court sitting en banc would be occupied with it considering the Supreme Court to "promulgate its rules for the purpose."
that they will be going over millions and millions of ballots or election returns, Madam
President. The conferment of full authority to the Supreme Court, as a PET, is equivalent to the full
authority conferred upon the electoral tribunals of the Senate and the House of
MR. CONCEPCION. The time consumed or to be consumed in this contest for President is Representatives, i.e., the Senate Electoral Tribunal (SET) and the House of Representatives
dependent upon they key number of teams of revisors. I have no experience insofar as Electoral Tribunal (HRET),37 which we have affirmed on numerous occasions.38
contests in other offices are concerned.
Particularly cogent are the discussions of the Constitutional Commission on the parallel
MR. SUAREZ. Although there is a requirement here that the Supreme Court is mandated to provisions of the SET and the HRET. The discussions point to the inevitable conclusion that
sit en banc? the different electoral tribunals, with the Supreme Court functioning as the PET, are
MR. CONCEPCION. Yes. constitutional bodies, independent of the three departments of government Executive,
Legislative, and Judiciary but not separate therefrom.
MR. MAAMBONG. x x x. first instance, in the exercise of its jurisdiction over ordinary civil cases, are broader than,
as well as distinct and separate from, those of the same court acting as a court of land
My questions will be very basic so we can go as fast as we can. In the case of the electoral
registration or a probate court, or as a court of juvenile and domestic relations. So too, the
tribunal, either of the House or of the Senate, is it correct to say that these tribunals are
authority of the municipal court of a provincial capital, when acting as such municipal
constitutional creations? I will distinguish these with the case of the Tanodbayan and the
court, is, territorially more limited than that of the same court when hearing the
Sandiganbayan which are created by mandate of the Constitution but they are not
aforementioned cases which are primary within the jurisdiction of courts of first instance.
constitutional creations. Is that a good distinction?
In other words, there is only one court, although it may perform the functions pertaining to
xxxx several types of courts, each having some characteristics different from those of the
MR. MAAMBONG. Could we, therefore, say that either the Senate Electoral Tribunal or the others.
House Electoral Tribunal is a constitutional body? Indeed, the Supreme Court, the Court of Appeals and courts of first instance, are vested
MR. AZCUNA. It is, Madam President. with original jurisdiction, as well as with appellate jurisdiction, in consequence of which
they are both trial courts and, appellate courts, without detracting from the fact that there
MR. MAAMBONG. If it is a constitutional body, is it then subject to constitutional is only one Supreme Court, one Court of Appeals, and one court of first instance, clothed
restrictions? with authority to discharge said dual functions. A court of first instance, when performing
MR. AZCUNA. It would be subject to constitutional restrictions intended for that body. the functions of a probate court or a court of land registration, or a court of juvenile and
domestic relations, although with powers less broad than those of a court of first instance,
MR. MAAMBONG. I see. But I want to find out if the ruling in the case of Vera v. Avelino, 77 hearing ordinary actions, is not inferior to the latter, for one cannot be inferior to itself. So
Phil. 192, will still be applicable to the present bodies we are creating since it ruled that the too, the Presidential Electoral Tribunal is not inferior to the Supreme Court, since it is the
electoral tribunals are not separate departments of the government. Would that ruling still same Court although the functions peculiar to said Tribunal are more limited in scope than
be valid? those of the Supreme Court in the exercise of its ordinary functions. Hence, the enactment
MR. AZCUNA. Yes, they are not separate departments because the separate departments of Republic Act No. 1793, does not entail an assumption by Congress of the power of
are the legislative, the executive and the judiciary; but they are constitutional bodies.39 appointment vested by the Constitution in the President. It merely connotes the imposition
of additional duties upon the Members of the Supreme Court.
The view taken by Justices Adolfo S. Azcuna40 and Regalado E. Maambong41 is schooled by
our holding in Lopez v. Roxas, et al.:42 By the same token, the PET is not a separate and distinct entity from the Supreme Court,
albeit it has functions peculiar only to the Tribunal. It is obvious that the PET was
Section 1 of Republic Act No. 1793, which provides that: constituted in implementation of Section 4, Article VII of the Constitution, and it faithfully
"There shall be an independent Presidential Electoral Tribunal x x x which shall be the sole complies not unlawfully defies the constitutional directive. The adoption of a separate
judge of all contests relating to the election, returns, and qualifications of the president- seal, as well as the change in the nomenclature of the Chief Justice and the Associate
elect and the vice-president-elect of the Philippines." Justices into Chairman and Members of the Tribunal, respectively, was designed simply to
highlight the singularity and exclusivity of the Tribunals functions as a special electoral
has the effect of giving said defeated candidate the legal right to contest judicially the
court.
election of the President-elect of Vice-President-elect and to demand a recount of the
votes case for the office involved in the litigation, as well as to secure a judgment declaring As regards petitioners claim that the PET exercises quasi-judicial functions in
that he is the one elected president or vice-president, as the case may be, and that, as contravention of Section 12, Article VIII of the Constitution, we point out that the issue in
such, he is entitled to assume the duties attached to said office. And by providing, further, Buac v. COMELEC43 involved the characterization of the enforcement and administration of
that the Presidential Electoral Tribunal "shall be composed of the Chief Justice and the a law relative to the conduct of a plebiscite which falls under the jurisdiction of the
other ten Members of the Supreme Court," said legislation has conferred upon such Court Commission on Elections. However, petitioner latches on to the enumeration in Buac which
an additional original jurisdiction of an exclusive character. declared, in an obiter, that "contests involving the President and the Vice-President fall
within the exclusive original jurisdiction of the PET, also in the exercise of quasi-judicial
Republic Act No. 1793 has not created a new or separate court. It has merely conferred
power."
upon the Supreme Court the functions of a Presidential Electoral Tribunal. The result of the
enactment may be likened to the fact that courts of first instance perform the functions of The issue raised by petitioner is more imagined than real. Section 12, Article VIII of the
such ordinary courts of first instance, those of court of land registration, those of probate Constitution reads:
courts, and those of courts of juvenile and domestic relations. It is, also, comparable to the SEC. 12. The Members of the Supreme Court and of other courts established by law shall
situation obtaining when the municipal court of a provincial capital exercises its authority, not be designated to any agency performing quasi-judicial or administrative functions.
pursuant to law, over a limited number of cases which were previously within the exclusive
jurisdiction of courts of first instance. The traditional grant of judicial power is found in Section 1, Article VIII of the Constitution
which provides that the power "shall be vested in one Supreme Court and in such lower
In all of these instances, the court (court of first instance or municipal court) is only one, courts as may be established by law." Consistent with our presidential system of
although the functions may be distinct and, even, separate. Thus the powers of a court of government, the function of "dealing with the settlement of disputes, controversies or
conflicts involving rights, duties or prerogatives that are legally demandable and We have previously declared that the PET is not simply an agency to which Members of the
enforceable" 44 is apportioned to courts of justice. With the advent of the 1987 Court were designated. Once again, the PET, as intended by the framers of the
Constitution, judicial power was expanded to include "the duty of the courts of justice to Constitution, is to be an institution independent, but not separate, from the judicial
settle actual controversies involving rights which are legally demandable and enforceable, department, i.e., the Supreme Court. McCulloch v. State of Maryland49 proclaimed that "[a]
and to determine whether or not there has been a grave abuse of discretion amounting to power without the means to use it, is a nullity." The vehicle for the exercise of this power,
lack or excess of jurisdiction on the part of any branch or instrumentality of the as intended by the Constitution and specifically mentioned by the Constitutional
Government."45 The power was expanded, but it remained absolute. Commissioners during the discussions on the grant of power to this Court, is the PET. Thus,
a microscopic view, like the petitioners, should not constrict an absolute and
The set up embodied in the Constitution and statutes characterizes the resolution of
constitutional grant of judicial power.
electoral contests as essentially an exercise of judicial power.1avvphi1
One final note. Although this Court has no control over contrary people and naysayers, we
At the barangay and municipal levels, original and exclusive jurisdiction over election
reiterate a word of caution against the filing of baseless petitions which only clog the
contests is vested in the municipal or metropolitan trial courts and the regional trial courts,
Courts docket. The petition in the instant case belongs to that classification.
respectively.
WHEREFORE, the petition is DISMISSED. Costs against petitioner.
At the higher levels city, provincial, and regional, as well as congressional and senatorial
exclusive and original jurisdiction is lodged in the COMELEC and in the House of SO ORDERED.
Representatives and Senate Electoral Tribunals, which are not, strictly and literally
speaking, courts of law. Although not courts of law, they are, nonetheless, empowered to
resolve election contests which involve, in essence, an exercise of judicial power, because
of the explicit constitutional empowerment found in Section 2(2), Article IX-C (for the
COMELEC) and Section 17, Article VI (for the Senate and House Electoral Tribunals) of the
Constitution. Besides, when the COMELEC, the HRET, and the SET decide election contests,
their decisions are still subject to judicial review via a petition for certiorari filed by the
proper party if there is a showing that the decision was rendered with grave abuse of
discretion tantamount to lack or excess of jurisdiction.46
It is also beyond cavil that when the Supreme Court, as PET, resolves a presidential or vice-
presidential election contest, it performs what is essentially a judicial power. In the
landmark case of Angara v. Electoral Commission,47 Justice Jose P. Laurel enucleated that
"it would be inconceivable if the Constitution had not provided for a mechanism by which
to direct the course of government along constitutional channels." In fact, Angara pointed
out that "[t]he Constitution is a definition of the powers of government." And yet, at that
time, the 1935 Constitution did not contain the expanded definition of judicial power
found in Article VIII, Section 1, paragraph 2 of the present Constitution.
With the explicit provision, the present Constitution has allocated to the Supreme Court, in
conjunction with latters exercise of judicial power inherent in all courts, 48 the task of
deciding presidential and vice-presidential election contests, with full authority in the
exercise thereof. The power wielded by PET is a derivative of the plenary judicial power
allocated to courts of law, expressly provided in the Constitution. On the whole, the
Constitution draws a thin, but, nevertheless, distinct line between the PET and the
Supreme Court.
If the logic of petitioner is to be followed, all Members of the Court, sitting in the Senate
and House Electoral Tribunals would violate the constitutional proscription found in
Section 12, Article VIII. Surely, the petitioner will be among the first to acknowledge that
this is not so. The Constitution which, in Section 17, Article VI, explicitly provides that three
Supreme Court Justices shall sit in the Senate and House Electoral Tribunals, respectively, THIRD DIVISION
effectively exempts the Justices-Members thereof from the prohibition in Section 12,
Article VIII. In the same vein, it is the Constitution itself, in Section 4, Article VII, which
exempts the Members of the Court, constituting the PET, from the same prohibition. ANDREA TAN, CLARITA G.R. No.148420
LLAMAS, VICTOR ESPINA
and LUISA ESPINA, On March 2, 1998, petitioners filed a motion to quash[9] the information on the
Petitioners, ground that the RTC had no jurisdiction over the offense charged against them. The
Present: penalty[10] provided by the RPC for the crime was within the jurisdiction of the Municipal
PANGANIBAN, J., Chairman Trial Court in Cities (MTCC).
SANDOVAL-GUTIERREZ,
- v e r s u s - CORONA, On March 6, 1998, respondent filed an opposition to the motion to
CARPIO MORALES and quash,[11] explaining that BP 129 had already transferred the exclusive jurisdiction to try
GARCIA, JJ. and decide violations of intellectual property rights from the MTC and MTCC to the RTC
and that the Supreme Court had also issued Administrative Order No. 104-96 (A.O. No.
BAUSCH & LOMB, INC. 104-96)[12] deleting and withdrawing the designation of several branches of the MTC and
Respondent. Promulgated: MTCC as special intellectual property courts.
On December 22, 1998, the court a quo denied respondents motion to transfer
December 15, 2005 the case and granted petitioners motion to quash. It ruled:
x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - x
Accused [wa]s charged for violation of Art. 189 of Revised Penal Code
the penalty for which is prision correccional in its minimum period or a
DECISION
fine ranging from P500.00 to P2,000.00, or both. Hence, within the
jurisdiction of the metropolitan and municipal trial courts (Sec. 32(2),
B.P. Blg. 129, as amended).
CORONA, J.:
Administrative Orders Nos. 113-95 and 104-96, cited by plaintiff,
Assailed in this petition for review[1] are the decision[2] and resolution[3] of the
cannot prevail over the express provisions of Batas Pambansa Blg. 129,
Court of Appeals which set aside the December 22, 1998 order[4] of Judge Genis Balbuena
as amended, jurisdiction of courts being a matter of substantive law.
of Branch 21, Regional Trial Court (RTC), Cebu City and ordered the transfer of Criminal
Case No. CBU-45890 to Branch 9, RTC, Cebu City.
If this Court has no jurisdiction over the case, the same is true with
The antecedents follow.
Branch 9 of the same court, Therefore, the motion to transfer the case
to the latter should fail.
On April 8, 1997, an information[5] for violation of paragraph 1, Article 189 [6] of
the Revised Penal Code (RPC) was filed before Branch 21, RTC, Cebu City against petitioners WHEREFORE, premises considered, the motion to transfer is denied,
Andrea Tan, Clarita Llamas, Victor Espina and Luisa Espina of Best Buy Mart, Inc. The while the motion to quash is granted. The case is thus dismissed.
information read:
SO ORDERED.[13]
That on or about June 27, 1996 and sometime prior or
subsequent thereto, in the City of Cebu, Philippines, and within the Respondent received the order on January 21, 1999 but filed neither an appeal
jurisdiction of this Honorable Court, abovementioned accused, nor a motion for reconsideration. Rather, it filed a petition for certiorari [14] in the Court of
conspiring and mutually helping each other, did then and there willfully, Appeals on March 23, 1999 or one (1) day beyond the period allowed in Section 4, Rule
unlawfully and feloniously distribute and sell counterfeit RAY BAN 65[15] of the Rules of Court.
sunglasses bearing the appearance and trademark of RAY BAN in the Respondents procedural lapses notwithstanding, the appellate court gave due
aforesaid store wherein they have direct control, supervision and
course to the petition and set aside the trial court order:
management thereby inducing the public to believe that these goods
offered by them are those of RAY BAN to the damage and prejudice of
BAUSCH AND LOMB, INC., the exclusive owner and user of trademark WHEREFORE, the petition is GIVEN DUE
RAY BAN on sunglasses.[7] COURSE and GRANTED. The assailed Order of December 22, 1998
is VACATED and another is entered ordering the transfer of Crim. Case
No. CBU-45890 to Branch 9 of the Regional Trial Court of Cebu City,
and directing the public respondent to accordingly transmit the
On January 21, 1998, respondent filed a motion to transfer the case to Branch 9, records thereof.
RTC, Cebu City. Administrative Order No. 113-95[8] (A.O. No. 113-95) designated the said
branch as the special court in Region VII to handle violations of intellectual property rights. SO ORDERED.[16]
Hence, the present petition for review, centered on the following issues:
concerning pleading, practice and procedure in all courts. The limitations to this rule-
I. THE COURT OF APPEALS SERIOUSLY ERRED IN NOT making power are the following: the rules must (a) provide a simplified and inexpensive
DISMISSING THE PETITION OF RESPONDENT THAT IS FRAUGHT WITH procedure for the speedy disposition of cases; (b) be uniform for all courts of the same
FATAL INFIRMITIES. grade and (c) not diminish, increase or modify substantive rights. [23] As long as these limits
are met, the argument used by petitioners that the Supreme Court, through A.O. Nos. 113-
II. THE COURT OF APPEALS SERIOUSLY ERRED IN REVERSING THE 95 and 104-96, transgressed on Congress sole power to legislate, cannot be sustained.
CORRECT RULING OF THE TRIAL COURT THAT THE REGIONAL TRIAL
COURT HAS NO JURISDICTION OVER THE OFFENSE OF UNFAIR A.O. No. 113-95 designated special intellectual property courts to promote the efficient
COMPETITION UNDER ARTICLE 189 OF THE REVISED PENAL CODE.[17] administration of justice and to ensure the speedy disposition of intellectual property
There is no merit in the petition. cases.
As to the first assigned error, petitioners contend that the Court of Appeals erred A.O. No. 104-96,[24] on the other hand, was issued pursuant to Section 23 of BP
in giving due course to the petition for certiorari because respondent failed to appeal or 129[25] which transferred the jurisdiction over such crimes from the MTC and MTCC to the
file a motion for reconsideration of the trial courts order granting the motion to quash. RTC and which furthermore gave the Supreme Court the authority to designate certain
Worse, respondent filed the petition in the appellate court one day after the reglementary branches of the RTC to exclusively handle special cases in the interest of the speedy and
period expired. efficient administration of justice. Accordingly, the RTC was vested with the exclusive and
Needless to state, the acceptance of a petition for certiorari as well as the grant of due original jurisdiction to try and decide intellectual property cases.
course thereto is, in general, addressed to the sound discretion of the court.[18]
The transfer of jurisdiction from the MTC and MTCC to the RTC did not in any way affect
Besides, the provisions of the Rules of Court, which are technical rules, may be the substantive rights of petitioners. The administrative orders did not change the
relaxed in certain exceptional situations. [19] Where a rigid application of the rule that definition or scope of the crime of unfair competition with which petitioners were charged.
certiorari cannot be a substitute for appeal will result in a manifest failure or miscarriage of
justice, it is within our power to suspend the rules or exempt a particular case from its Both administrative orders therefore have the force and effect of law, having been validly
operation.[20] issued by the Supreme Court in the exercise of its constitutional rule-making power. The
trial court, being a subordinate court, should have followed the mandate of the later A.O.
Under certain special circumstances,[21] a petition for certiorari may be given due 104-96 which vested jurisdiction over the instant case on the RTC. Thus, the appellate court
course notwithstanding that no motion for reconsideration was filed in the lower court. correctly found that the court a quo committed grave abuse of discretion.
The exception applies in this case since the order of the trial court was, as will be discussed
later, a patent nullity. Furthermore, the order of the trial court was a patent nullity. In resolving the
pending incidents of the motion to transfer and motion to quash, the trial court
Likewise, the one-day delay in the filing of the petition may be excused on the should not have allowed petitioners to collaterally attack the validity of A.O. Nos.
basis of equity to afford respondent the chance to prove the merits of the complaint. 113-95 and 104-96. We have ruled time and again that the constitutionality or
In Yao v. Court of Appeals,[22] we held: validity of laws, orders, or such other rules with the force of law cannot be
attacked collaterally. There is a legal presumption of validity of these laws and
In the interest of substantial justice, procedural rules of the rules. Unless a law or rule is annulled in a direct proceeding, the legal
most mandatory character in terms of compliance may be relaxed. In presumption of its validity stands.[26] The trial courts order was consequently null
other words, if strict adherence to the letter of the law would result in and void.
absurdity and manifest injustice or where the merit of a partys cause
is apparent and outweighs consideration of non-compliance with The transfer of this case to Branch 9, RTC, Cebu City, however, is no longer possible. A.M.
certain formal requirements, procedural rules should definitely be No. 03-03-03-SC[27] consolidated the intellectual property courts and commercial SEC
liberally construed. A party-litigant is to be given the fullest courts in one RTC branch in a particular locality to streamline the court structure and to
opportunity to establish the merits of his complaint or defense rather promote expediency. The RTC branch so designated will try and decide cases involving
than for him to lose life, liberty, honor or property on mere violations of intellectual property rights, and cases formerly cognizable by the Securities
technicalities. and Exchange Commission. It is now called a special commercial court. In Region VII, the
designated special commercial court is Branch 11, RTC, Cebu City. The transfer of this case
Hence, the only relevant issue left for our resolution is whether or not the to that court is therefore warranted.
jurisdiction over the crime allegedly committed by petitioners is vested on the RTC.
WHEREFORE, the Court of Appeals decision dated October 20, 2000 is
Section 5 (5) of the 1987 Constitution empowers the Supreme Court to promulgate rules hereby AFFIRMED with the MODIFICATION that Criminal Case No. CBU-45890 shall be
transferred to Branch 11, RTC, Cebu City. Let the records of the case be transmitted
thereto and the case tried and decided with dispatch.
Costs against petitioners.
SO ORDERED.
EN BANC
Promulgated:
RESOLUTION
MENDOZA, J.: The non-exemption of NPC is further fortified by the promulgation on February
11, 2010 of A.M. No. 08-2-01-0, In re: Petition for Recognition of the Exemption of the
The National Power Corporation (NPC) seeks clarification from the Court on Government Service Insurance System (GSIS) from Payment of Legal Fees. In said case, the
whether or not it is exempt from the payment of filing fees, appeal bonds and supersedeas Court, citing Echegaray v. Secretary of Justice,[1] stressed that the 1987 Constitution took
bonds. away the power of Congress to repeal, alter or supplement rules concerning pleading,
practice, and procedure; and that the power to promulgate these rules is no longer shared
On December 6, 2005, the Court issued A.M. No. 05-10-20-SC, In re: Exemption of by the Court with Congress and the Executive, thus:
the National Power Corporation from the Payment of Filing/Docket Fees, on the basis of
Section 13, Republic Act No. 6395 (An Act Revising the Charter of the National Power Since the payment of legal fees is a vital component of the rules
Corporation). It reads: promulgated by this Court concerning pleading, practice and
procedure, it cannot be validly annulled, changed or modified by
Congress. As one of the safeguards of this Courts institutional
The Court Resolved, upon the recommendation of the Office
independence, the power to promulgate rules of pleading, practice and
of the Court Administrator, to DECLARE that the National Power
procedure is now the Courts exclusive domain. That power is no longer
Corporation (NPC) is still exempt from the payment of filing fees,
shared by this Court with Congress, much less the Executive.
appeals bond, and supersedeas bonds.
Speaking for the Court, then Associate Justice (now Chief Justice)
On October 27, 2009, however, the Court issued A.M. No. 05-10-20-SC stating
Reynato S. Puno traced the history of the rule-making power of this
that: Court and highlighted its evolution and development in Echegaray v.
The Court Resolved, upon recommendation of the Committee Secretary of Justice:
on the Revision of the Rules of Court, to DENY the request of the
National Power Corporation (NPC) for exemption from the payment of Under the 1935 Constitution, the power of this
filing fees pursuant to Section 10 of Republic Act No. 6395, as amended Court to promulgate rules concerning pleading,
by Section 13 of Presidential Decree No. 938. The request appears to practice and procedure was granted but it appeared
run counter to Section 5(5), Article VIII of the Constitution, in the rule- to be co-existent with legislative power for it was
making power of the Supreme Court over the rules on pleading, subject to the power of Congress to repeal, alter or
practice and procedure in all courts, which includes the sole power to supplement. Thus, its Section 13, Article VIII
fix the filing fees of cases in courts. provides:
Hence, the subject letter of NPC for clarification as to its exemption from the Sec.13. The Supreme Court shall
payment of filing fees and court fees. have the power to promulgate
rules concerning pleading,
practice and procedure in all
Section 22 of Rule 141 reads: courts, and the admission to the
practice of law. Said rules shall
be uniform for all courts of the
Sec. 22. Government exempt. The Republic of the Philippines, same grade and shall not
its agencies and instrumentalities are exempt from paying the legal fees diminish, increase, or modify
provided in this rule. Local government units and government-owned substantive rights. The existing
or controlled corporations with or without independent charters laws on pleading, practice, and
are not exempt from paying such fees. (emphasis supplied) procedure are hereby repealed
as statutes, and are declared
Section 70 of Republic Act No. 9136 (Electric Power Industry Reform Act of 2001), on Rules of Court, subject to the
power of the Supreme Court to
privatization of NPC assets, expressly states that the NPC shall remain as a national
alter and modify the same. The
government-owned and controlled corporation. Congress shall have the power
to repeal, alter or supplement
Thus, NPC is not exempt from payment of filing fees. the rules concerning pleading,
practice and procedure, and the xxxxxxxxx
admission to the practice of law
in the Philippines. Section 5. The Supreme Court
shall have the following powers.
xxxxxxxxx
xxxxxxxxx
[T]he 1973 Constitution reiterated the power of
this Court to promulgate rules concerning pleading, (5) Promulgate rules
practice, and procedure in all courts, x x x which, concerning the protection and
however, may be repealed, altered or enforcement of constitutional
supplemented by the Batasang Pambansa x x rights, pleading, practice, and
x.More completely, Section 5(2) [sic] 5 of its Article procedure in all courts, the
X provided: admission to the practice of
law, the Integrated Bar, and
xxxxxxxxx legal assistance to the
underprivileged. Such rules shall
Sec. 5. The Supreme provide a simplified and
Court shall have the following inexpensive procedure for the
powers. speedy disposition of cases,
shall be uniform for all courts of
xxxxxxxxx the same grade, and shall not
diminish, increase, or modify
(5) Promulgate rules substantive rights. Rules of
concerning pleading, practice, procedure of special courts and
and procedure in all courts, the quasi-judicial bodies shall
admission to the practice of remain effective unless
law, and the integration of the disapproved by the Supreme
Bar, which, however, may be Court.
repealed, altered, or
supplemented by the Batasang The rule making power of this Court was expanded. This
Pambansa. Such rules shall Court for the first time was given the power to promulgate
provide a simplified and rules concerning the protection and enforcement of
inexpensive procedure for the constitutional rights. The Court was also granted for the first
speedy disposition of case, shall time the power to disapprove rules of procedure of special
be uniform for all courts of the courts and quasi-judicial bodies. But most importantly, the
same grade, and shall not 1987 Constitution took away the power of Congress to
diminish, increase, or modify repeal, alter, or supplement rules concerning pleading,
substantive rights. practice and procedure. In fine, the power to promulgate
rules of pleading, practice and procedure is no longer shared
by this Court with Congress, more so with the Executive.
QUISUMBING, J.,
Chairperson,
- versus - CARPIO,
CARPIO MORALES,
TINGA, and
VELASCO, JR., JJ.
PHILIPPINE COUNTRYSIDE RURAL
BANK,
Respondent. Promulgated:
February 8, 2007
x----------------------------------------------------------------------------x
DECISION
TINGA, J.:
Petitioner, Ma. Teresa Chaves Biaco, seeks a review of the Decision[1] of the Court
of Appeals in CA-G.R. No. 67489 dated August 27, 2003, which denied her petition for
annulment of judgment, and the Resolution[2] dated December 15, 2003 which denied her
motion for reconsideration
.
The facts as succinctly stated by the Court of Appeals are as follows:
Ernesto Biaco is the husband of petitioner Ma. Teresa Chaves
Biaco. While employed in the Philippine Countryside Rural Bank (PCRB)
as branch manager, Ernesto obtained several loans from the
respondent bank as evidenced by the following promissory notes:
DECISION
PERALTA, J.:
Due process dictates that jurisdiction over the person of a defendant can only be
acquired by the courts after a strict compliance with the rules on the proper service of
Republic of the Philippines summons.
Supreme Court
Manila Before this Court is a Petition for Review on Certiorari under Rule 45 of the Rules
THIRD DIVISION of Court, with Prayer for Temporary Restraining Order and Writ of Preliminary Injunction,
seeking to annul the Decision[1] dated June 29, 2005 and the Resolution[2]dated March 14,
2006 of the Court of Appeals (CA) nullifying and vacating the Decision[3] dated December 3,
2002 and Order[4]dated April 4, 2003 of the Regional Trial Court (RTC), Branch 12, Malolos,
Bulacan.
CONSTANTINO A. G.R. No. 171916
The facts, as found in the records, are the following:
PASCUAL, substituted by his heirs, represented
byZENAIDA PASCUAL, Petitioner filed a Complaint for Specific Performance with Prayer for Issuance of
Preliminary Mandatory Injunction with Damages before the RTC of Malolos, Bulacan
Petitioner, against respondent. The process server, in his Return of Service[5] dated May 21, 2002,
reported, among others that:
Present:
PERALTA, JJ.
At the time of the service of the said summons, the defendant
was not at her home and only her maid was there who refused to
receive the said summons [in spite] of the insistence of the
LOURDES S. PASCUAL, undersigned.
Respondent. Promulgated:
The undersigned, upon his request with the Brgy. Clerk at the
said place, was given a certification that he really exerted effort to
effect the service of the said summons but failed due to the above
reason. (Annex A). Subsequently, on August 14, 2002, the process server returned with the following
report,[7] stating that a substituted service was effected:
This is to certify that on the 14th day of August, 2002, I
personally went at Dr. Lourdes Pascual's residence at #4 Manikling
The following day, May 21, 2002, the undersigned went back Street, Talayan Village, Quezon City, to serve the copy of the Summons
at defendant's residence to have her receive the subject summons but dated August 12, 2002, together with a copy of the Complaint and its
again the above defendant was not at her house. annexes thereto.
WHEREFORE, the original summons and copy of the Defendant Dr. Lourdes Pascual was out during the time of
complaint is hereby returned to the Honorable Court NOT SERVED. service of the said summons and only her housemaid was present. The
undersigned left a copy of the same to the latter who is at the age of
Malolos, Bulacan, May 21, 2002. reason but refused to sign the same.
Thereafter, an alias summons was issued by the RTC and, on May 29, 2002, the following
report was submitted:
WHEREFORE, the undersigned respectfully return the service
The undersigned, on May 29, 2002, made a 3rd attempt to of summons duly served for information and guidance of the Honorable
serve the alias summons issued by the Hon. Court relative with the Court.
above-entitled case at the given address of the defendant.
Malolos, Bulacan, August 14, 2002.
Aggrieved, respondent filed with the CA a Petition for Certiorari and Prohibition under Rule
65 of the Rules of Court which was granted by the same Court in its Decision [18] dated June 2. ARE THE PETITIONER AND HIS COUNSEL PUNISHABLE FOR
29, 2005, the dispositive portion of which reads:
CONTEMPT OF COURT FOR KNOWINGLY MISLEADING THIS
HONORABLE COURT?
WHEREFORE, the petition is GIVEN DUE COURSE and
GRANTED. The said Decision, as well as the Orders and the processes
on which this is premised, are NULLIFIED and VACATED. SO ORDERED. 3. WAS THE ALLEGED SERVICE OF SUMMONS ON THE ILLITERATE MAID
EFFECTIVE TO CONFER JURISDICTION OVER THE DEFENDANT BEFORE
Petitioner comes now to this Court through a Petition for Review
on Certiorari under Rule 45 of the Rules of Court, with Prayer for Temporary Restraining THE RTC OF MALOLOS, BULACAN?
Order and Writ of Preliminary Injunction, on the following grounds:
On June 30, 2008, this Court granted[20] the substitution of the respondent by his The party relying on substituted service or the sheriff must
heirs as represented by his wife Zenaida Pascual, after the Manifestation[21] dated June 12, show that defendant cannot be served promptly or there is
2008 was filed informing this Court of the demise of the same respondent.
impossibility of prompt service.[23] Section 8, Rule 14 provides that the
After a careful study of the records of this case, this Court finds the petition plaintiff or the sheriff is given a reasonable time to serve the summons
bereft of any merit. to the defendant in person, but no specific time frame is mentioned.
Reasonable time is defined as so much time as is necessary under the
Clearly, the main, if not the only issue that needs to be resolved is whether or not circumstances for a reasonably prudent and diligent man to do,
there was a proper and valid substituted service of summons, the resolution of which, will conveniently, what the contract or duty requires that should be done,
determine whether jurisdiction was indeed acquired by the trial court over the person of
having a regard for the rights and possibility of loss, if any, to the other
the petitioner.
party.[24] Under the Rules, the service of summons has no set period.
In a case where the action is in personam and the defendant is in the Philippines, However, when the court, clerk of court, or the plaintiff asks the sheriff
the service of summons may be done by personal or substituted service as laid out in to make the return of the summons and the latter submits the return
of summons, then the validity of the summons lapses. The plaintiff may to locate the defendant, the name/s of the occupants of the alleged
then ask for an alias summons if the service of summons has residence or house of defendant and all other acts done, though futile,
failed.[25] What then is a reasonable time for the sheriff to effect a to serve the summons on defendant must be specified in the Return to
personal service in order to demonstrate impossibility of prompt justify substituted service. The form on Sheriffs Return of Summons on
service? To the plaintiff, reasonable time means no more than seven (7) Substituted Service prescribed in the Handbook for Sheriffs published
days since an expeditious processing of a complaint is what a plaintiff by the Philippine Judicial Academy requires a narration of the efforts
wants. To the sheriff, reasonable time means 15 to 30 days because at made to find the defendant personally and the fact of
the end of the month, it is a practice for the branch clerk of court to failure.[27] Supreme Court Administrative Circular No. 5
require the sheriff to submit a return of the summons assigned to the dated November 9, 1989 requires that impossibility of prompt service
sheriff for service. The Sheriffs Return provides data to the Clerk of should be shown by stating the efforts made to find the defendant
Court, which the clerk uses in the Monthly Report of Cases to be personally and the failure of such efforts, which should be made in the
submitted to the Office of the Court Administrator within the first ten proof of service.
(10) days of the succeeding month. Thus, one month from the issuance
of summons can be considered reasonable time with regard to
personal service on the defendant.
(3) A Person of Suitable Age and Discretion
Petitioner also raises the issue of the impropriety of the remedy resorted to by
the respondent which is the filing of a Petition for Certiorari under Rule 65 of the Rules of This doctrine of finality of judgment is
Court, claiming that the said remedy is inappropriate because there are still other plain, grounded on fundamental considerations of public
speedy and adequate remedies available, such as an ordinary appeal, the Decision of the
policy and sound practice. In fact, nothing is more
RTC having attained its finality. The question, however, is whether the said Decision has
settled in law than that once a judgment attains
finality it thereby becomes immutable and which can be treated as an outlaw and slain at
unalterable. It may no longer be modified in any sight, or ignored wherever and whenever it exhibits
respect, even if the modification is meant to correct its head.
what is perceived to be an erroneous conclusion of
fact or law, and regardless of whether the Thus, from the above discussion, the Decision of the RTC, not having
modification is attempted to be made by the court attained its finality due to its being void, the Petition for Certiorari under Rule 65, filed by
the respondent with the CA, was proper.
rendering it or by the highest court of the land.[40]
WHEREFORE, the Petition dated May 3, 2006 is hereby DENIED and the Decision
dated June 29, 2005 of the Court of Appeals in CA-G.R. SP No. 77789 is
hereby AFFIRMED in toto. SO ORDERED.
xxxx
BRION, On 31 March 1998, the RTC Clerk of Court transmitted motu proprio the records
of the case to the MTC of San Juan, because the assessed value of the property was
allegedly less than 100,000.[7]
PEREZ,
Thereafter, the MTC entered an Order of General Default [8] and commenced with
BANTIGUE POINT DEVELOPMENT CORPORATION, SERENO, and
the reception of evidence.[9] Among the documents presented by respondent in support of
its application are Tax Declarations,[10] a Deed of Absolute Sale in its favor,[11]and a
Respondent. REYES, JJ.
Certification from the Department of Environment and Natural Resources (DENR)
Community Environment and Natural Resources Office (CENRO) of Batangas City that the
lot in question is within the alienable and disposable zone.[12] Thereafter, it awarded the
land to respondent Corporation.[13]
Promulgated:
Acting on an appeal filed by the Republic,[14] the CA ruled that since the former
had actively participated in the proceedings before the lower court, but failed to raise the
jurisdictional challenge therein, petitioner is thereby estopped from questioning the
March 14, 2012 jurisdiction of the lower court on appeal.[15] The CA further found that respondent
Corporation had sufficiently established the latters registrable title over the subject
property after having proven open, continuous, exclusive and notorious possession and
DECISION occupation of the subject land by itself and its predecessors-in-interest even before the
outbreak of World War II.[16]
SERENO, J.: Dissatisfied with the CAs ruling, petitioner Republic filed this instant Rule 45 Petition and
raised the following arguments in support of its appeal:
This Rule 45 Petition requires this Court to address the issue of the proper scope
of the delegated jurisdiction of municipal trial courts in land registration cases. Petitioner I.
Republic of the Philippines (Republic) assails the Decision of the Court of Appeals (CA)[1] in
CA-G.R. CV No. 70349, which affirmed the Decision of the Municipal Trial Court (MTC) of
San Juan, Batangas[2] in LRC Case No. N-98-20, LRA Record No. 68329, granting respondent
Bantigue Point Development Corporations (Corporation) application for original THE REPUBLIC CANNOT BE ESTOPPED FROM QUESTIONING THE
registration of a parcel of land. Since only questions of law have been raised, petitioner
JURISDICTION OF THE MUNICIPAL TRIAL COURT OVER THE
need not have filed a Motion for Reconsideration of the assailed CA Decision before filing
this Petition for Review. APPLICATION FOR ORIGINAL REGISTRATION OF LAND TITLE EVEN FOR
THE FIRST TIME ON APPEAL
The Facts
I
In assailing the jurisdiction of the lower courts, petitioner Republic raised two
The Republic is not estopped from raising the issue of jurisdiction in
points of contention: (a) the period for setting the date and hour of the initial hearing; and
this case. (b) the value of the land to be registered.
First, petitioner argued that the lower court failed to acquire jurisdiction over the
At the outset, we rule that petitioner Republic is not estopped from questioning application, because the RTC set the date and hour of the initial hearing beyond the 90-day
the jurisdiction of the lower court, even if the former raised the jurisdictional question only period provided under the Property Registration Decree.[28]
on appeal. The rule is settled that lack of jurisdiction over the subject matter may be raised
at any stage of the proceedings.[18] Jurisdiction over the subject matter is conferred only by
the Constitution or the law.[19] It cannot be acquired through a waiver or enlarged by the We disagree.
omission of the parties or conferred by the acquiescence of the court. [20]Consequently,
questions of jurisdiction may be cognizable even if raised for the first time on appeal.[21] The Property Registration Decree provides:
The ruling of the Court of Appeals that a party may be estopped from raising such
[jurisdictional] question if he has actively taken part in the very proceeding which he Sec. 23. Notice of initial hearing, publication, etc. - The court
questions, belatedly objecting to the courts jurisdiction in the event that the judgment or shall, within five days from filing of the application, issue an order
order subsequently rendered is adverse to him[22] is based on the doctrine of estoppel by setting the date and hour of the initial hearing which shall not be earlier
laches. We are aware of that doctrine first enunciated by this Court in Tijam v. than forty-five days nor later than ninety days from the date of the
Sibonghanoy.[23] In Tijam, the party-litigant actively participated in the proceedings before order. x x x.
the lower court and filed pleadings therein. Only 15 years thereafter, and after receiving an
adverse Decision on the merits from the appellate court, did the party-litigant question the
lower courts jurisdiction. Considering the unique facts in that case, we held that estoppel
by laches had already precluded the party-litigant from raising the question of lack of
jurisdiction on appeal. In Figueroa v. People,[24] we cautioned that Tijam must be construed In this case, the application for original registration was filed on 17 July
as an exception to the general rule and applied only in the most exceptional cases whose 1997.[29] On 18 July 1997, or a day after the filing of the application, the RTC immediately
factual milieu is similar to that in the latter case. issued an Order setting the case for initial hearing on 22 October 1997, which was 96 days
from the Order.[30] While the date set by the RTC was beyond the 90-day period provided
The facts are starkly different in this case, making the exceptional rule for in Section 23, this fact did not affect the jurisdiction of the trial court. In Republic v.
in Tijam inapplicable. Here, petitioner Republic filed its Opposition to the application for Manna Properties, Inc.,[31] petitioner Republic therein contended that there was failure to
registration when the records were still with the RTC.[25] At that point, petitioner could not comply with the jurisdictional requirements for original registration, because there were
have questioned the delegated jurisdiction of the MTC, simply because the case was not 125 days between the Order setting the date of the initial hearing and the initial hearing
yet with that court. When the records were transferred to the MTC, petitioner neither filed itself. We ruled that the lapse of time between the issuance of the Order setting the date
pleadings nor requested affirmative relief from that court. On appeal, petitioner of initial hearing and the date of the initial hearing itself was not fatal to the
immediately raised the jurisdictional question in its Brief.[26] Clearly, the exceptional application. Thus, we held:
doctrine of estoppel by laches is inapplicable to the instant appeal.
Petitioner is incorrect. The case at bar does not fall under the first instance, because petitioner opposed
respondent Corporations application for registration on 8 January 1998.[41]
The RTCs failure to issue the Order setting the date and hour of the initial hearing
within five days from the filing of the application for registration, as provided in the However, the MTC had jurisdiction under the second instance, because the value
Property Registration Decree, did not affect the courts its jurisdiction. Observance of the of the lot in this case does not exceed 100,000.
five-day period was merely directory, and failure to issue the Order within that period did
not deprive the RTC of its jurisdiction over the case. To rule that compliance with the five- Contrary to petitioners contention, the value of the land should not be
day period is mandatory would make jurisdiction over the subject matter dependent upon determined with reference to its selling price. Rather, Section 34 of the Judiciary
the trial court. Jurisdiction over the subject matter is conferred only by the Constitution or Reorganization Act provides that the value of the property sought to be registered may be
the law.[35] It cannot be contingent upon the action or inaction of the court. ascertained in three ways: first, by the affidavit of the claimant; second, by agreement of
the respective claimants, if there are more than one; or, third, from the corresponding tax
This does not mean that courts may disregard the statutory periods with declaration of the real property.[42]
impunity. We cannot assume that the law deliberately meant the provision to become
meaningless and to be treated as a dead letter. [36] However, the records of this case do not In this case, the value of the property cannot be determined using the first
show such blatant disregard for the law. In fact, the RTC immediately set the case for initial method, because the records are bereft of any affidavit executed by respondent as to the
hearing a day after the filing of the application for registration,[37] except that it had to value of the property. Likewise, valuation cannot be done through the second method,
issue a second Order because the initial hearing had been set beyond the 90-day period because this method finds application only where there are multiple claimants who agree
provided by law. on and make a joint submission as to the value of the property. Here, only respondent
Bantigue Point Development Corporation claims the property.
Second, petitioner contended[38] that since the selling price of the property based The value of the property must therefore be ascertained with reference to the
on the Deed of Sale annexed to respondents application for original registration corresponding Tax Declarations submitted by respondent Corporation together with its
was 160,000,[39] the MTC did not have jurisdiction over the case. Under Section 34 of the application for registration. From the records, we find that the assessed value of the
Judiciary Reorganization Act, as amended,[40] the MTCs delegated jurisdiction to try property is 4,330, 1,920 and 8,670, or a total assessed value of 14,920 for the entire
cadastral and land registration cases is limited to lands, the value of which should not property.[43] Based on these Tax Declarations, it is evident that the total value of the land in
exceed 100,000. question does not exceed 100,000. Clearly, the MTC may exercise its delegated
jurisdiction under the Judiciary Reorganization Act, as amended.
The Regalian doctrine dictates that all lands of the public domain belong to the THIRD DIVISION
State.[44] The applicant for land registration has the burden of overcoming the presumption
of State ownership by establishing through incontrovertible evidence that the land sought
to be registered is alienable or disposable based on a positive act of the LOURDES DELA CRUZ, G.R. No. 139442
government.[45] We held in Republic v. T.A.N. Properties, Inc. that a CENRO certification is Petitioner,
insufficient to prove the alienable and disposable character of the land sought to be Present:
registered.[46] The applicant must also show sufficient proof that the DENR Secretary has
approved the land classification and released the land in question as alienable and QUISUMBING, J., Chairperson,
disposable.[47] - versus - CARPIO,
CARPIO MORALES,
Thus, the present rule is that an application for original registration must be TINGA, and
accompanied by (1) a CENRO or PENRO[48]Certification; and (2) a copy of the original VELASCO, JR., JJ.
classification approved by the DENR Secretary and certified as a true copy by the legal
custodian of the official records.[49] HON. COURT OF APPEALS Promulgated:
and MELBA TAN TE,
Here, respondent Corporation only presented a CENRO certification in support of Respondents. December 6, 2006
its application.[50] Clearly, this falls short of the requirements for original registration.
DECISION
We therefore remand this case to the court a quo for reception of further VELASCO, JR., J.:
evidence to prove that the property in question forms part of the alienable and disposable For unto every one that hath shall be given, and he shall have
land of the public domain. If respondent Bantigue Point Development Corporation presents abundance: but from him that hath not shall be taken away
a certified true copy of the original classification approved by the DENR Secretary, the even that which he hath.
application for original registration should be granted. If it fails to present sufficient proof
that the land in question is alienable and disposable based on a positive act of the Holy Bible, Matthew 25:29
government, the application should be denied.
The Case
WHEREFORE, premises considered, the instant Petition for Review is DENIED. Let
this case be REMANDED to the Municipal Trial Court of San Juan, Batangas, for reception of This petition for review seeks to nullify the April 30, 1999 Decision and the July 16, 1999
evidence to prove that the property sought to be registered is alienable and disposable Resolution of the Court of Appeals in CA-G.R. SP No. 49097, which reversed the Decision of
land of the public domain. SO ORDERED. the Manila Regional Trial Court (RTC), Branch 35, in Civil Case No. 98-89174, and reinstated
the Decision of the Manila Metropolitan Trial Court (MeTC), Branch 20, which ordered
petitioner Dela Cruz to vacate the subject lot in favor of respondent Tan Te.[1]
The Facts
The Reyes family, represented by Mr. Lino Reyes, owned the lot located at No. 1332 Lacson
Street (formerly Gov. Forbes Street), Sampaloc, Manila. Petitioner Lourdes Dela Cruz was
one of their lessees, and she religiously paid rent over a portion of the lot for well over 40
years. Sometime in 1989, a fire struck the premises and destroyed, among others,
petitioners dwelling. After the fire, petitioner and some tenants returned to the said lot
and rebuilt their respective houses; simultaneously, the Reyes family made several verbal
demands on the remaining lessees, including petitioner, to vacate the lot but the latter did
not comply. On February 21, 1994, petitioner was served a written demand to vacate said
lot but refused to leave. Despite the setback, the Reyes family did not initiate court 3. Ordering the defendant to pay the plaintiff the amount of
proceedings against any of the lessees. P10,000.00 as attorneys fees; and, the costs of the suit.
On November 26, 1996, the disputed lot was sold by the Reyeses to respondent Melba Tan SO ORDERED.[3]
Te by virtue of the November 26, 1996 Deed of Absolute Sale. Respondent bought the lot The Ruling of the Regional Trial Court
in question for residential purposes. Despite the sale, petitioner Dela Cruz did not give up
the lot. Unconvinced, petitioner Dela Cruz appealed the Decision of the MeTC in the
Manila RTC and the appeal was docketed as Civil Case No. 98-89174. On September 1,
On January 14, 1997, petitioner was sent a written demand to relinquish the premises 1998, the RTC rendered its judgment setting aside the April 3, 1998 Decision of the Manila
which she ignored, prompting respondent Tan Te to initiate conciliation proceedings at the MeTC and dismissed respondent Tan Tes Complaint on the ground that it was the RTC and
barangay level. While respondent attempted to settle the dispute by offering financial not the MeTC which had jurisdiction over the subject matter of the case. The RTC believed
assistance, petitioner countered by asking PhP 500,000.00 for her house. Respondent that since Tan Tes predecessor-in-interest learned of petitioners intrusion into the lot as
rejected the counter offer which she considered unconscionable. As a result, a certificate early as February 21, 1994, the ejectment suit should have been filed within the one-year
to file action was issued to Tan Te. prescriptive period which expired on February 21, 1995. Since the Reyes did not file the
ejectment suit and respondent Tan Te filed the action only on September 8, 1997, then the
On September 8, 1997, respondent Tan Te filed an ejectment complaint with suit had become an accion publiciana cognizable by the RTC.
damages before the Manila MeTC, entitled Melba Tan Te v. Lourdes Dela Cruz and
docketed as Civil Case No. 156730-CV. The complaint averred that: (1) the previous owners, The Ruling of the Court of Appeals
the Reyeses were in possession and control of the contested lot; (2) on November 26,
1996, the lot was sold to Tan Te; (3) prior to the sale, Dela Cruz forcibly entered the Disappointed at the turn of events, respondent Tan Te appealed the adverse
property with strategy and/or stealth; (4) the petitioner unlawfully deprived the Decision to the Court of Appeals (CA) which was docketed as CA-G.R. SP No. 49097. This
respondent of physical possession of the property and continues to do so; and, (5) the time, the CA rendered a Decision in favor of respondent Tan Te reversing the Manila RTC
respondent sent several written demands to petitioner to vacate the premises but refused September 1, 1998 Decision and reinstated the Manila MeTC April 3, 1998 Decision.
to do so.
Petitioner tried to have the CA reconsider its Decision but was rebutted in its July
On October 24, 1997, petitioner filed her answer and alleged that: (1) the MeTC 16, 1999 Resolution.
had no jurisdiction over the case because it falls within the jurisdiction of the RTC as more
than one year had elapsed from petitioners forcible entry; (2) she was a rent-paying tenant Unyielding to the CA Decision and the denial of her request for reconsideration,
protected by PD 20;[2] (3) her lease constituted a legal encumbrance upon the property; petitioner Dela Cruz now seeks legal remedy through the instant Petition for Review on
and (4) the lot was subject of expropriation. Certiorari before the Court.
The Ruling of the Manila MeTC The Issues
On April 3, 1998, the MeTC decided as follows:
Petitioner Dela Cruz claims two (2) reversible errors on the part of the appellate
WHEREFORE, judgment is hereby rendered in favor of the court, to wit:
plaintiff as follows: A
1. Ordering the defendant and all persons claiming right under THE HON. COURT OF APPEALS, WITH DUE RESPECT, WENT
her to vacate the premises situated at 1332 Lacson BEYOND THE ISSUES OF THE CASE AND CONTRARY TO THOSE
Street (formerly Gov. Forbes Street), Sampaloc, Manila and OF THE TRIAL COURT.
peacefully return possession thereof to plaintiff;
B
2. Ordering the defendant to pay the plaintiff the amount of
P360.00 a month from December 1996 to November 1997; THE HON. COURT OF APPEALS, WITH DUE RESPECT, ERRED IN
P432.00 a month from December 1997 to November 1998, plus REVERSING THE DECISION OF THE RTC AND IN EFFECT,
20% for each subsequent year until the premises shall have REINSTATING THE DECISION OF THE [MeTC] WHICH IS
been vacated and turned over to the plaintiff; CONTRADICTED BY THE EVIDENCE ON RECORD.[4]
The Courts Ruling
Discussion on Rule 45 where one is deprived of physical possession of any land or building by means of force,
intimidation, threat, strategy, or stealth. In actions for forcible entry, three (3) requisites
Before we dwell on the principal issues, a few procedural matters must first be resolved. have to be met for the municipal trial court to acquire jurisdiction. First, the plaintiffs must
allege their prior physical possession of the property. Second, they must also assert that
Petitioner Dela Cruz asks the Court to review the findings of facts of the CA, a they were deprived of possession either by force, intimidation, threat, strategy, or
course of action proscribed by Section 1, Rule 45.Firm is the rule that findings of fact of the stealth. Third, the action must be filed within one (1) year from the time the owners or
CA are final and conclusive and cannot be reviewed on appeal to this Court provided they legal possessors learned of their deprivation of physical possession of the land or building.
are supported by evidence on record or substantial evidence. Fortunately for petitioner,
we will be liberal with her petition considering that the CAs factual findings contradict The other kind of ejectment proceeding is unlawful detainer (desahucio), where
those of the RTC, and there was an asseveration that the court a quo went beyond the one unlawfully withholds possession of the subject property after the expiration or
issues of the case. Indeed, these grounds were considered exceptions to the factual issue termination of the right to possess. Here, the issue of rightful possession is the one
bar rule. decisive; for in such action, the defendant is the party in actual possession and the
plaintiffs cause of action is the termination of the defendants right to continue in
Secondly, the petition unnecessarily impleaded the CA in violation of Section 4, possession.[7] The essential requisites of unlawful detainer are: (1) the fact of lease by
Rule 45. We will let this breach pass only because there is a need to entertain the petition virtue of a contract express or implied; (2) the expiration or termination of the possessors
due to the conflicting rulings between the lower courts; however, a repetition may result right to hold possession; (3) withholding by the lessee of the possession of the land or
to sanctions. building after expiration or termination of the right to possession; (4) letter of demand
upon lessee to pay the rental or comply with the terms of the lease and vacate the
The actual threshold issue is which court, the Manila RTC or the Manila MeTC, premises; and (5) the action must be filed within one (1) year from date of last demand
has jurisdiction over the Tan Te ejectment suit.Once the jurisdictional issue is settled, the received by the defendant.
heart of the dispute is whether or not respondent is entitled to the ejectment of petitioner
Dela Cruz from the premises. A person who wants to recover physical possession of his real property will prefer
However, the petition is bereft of merit. an ejectment suit because it is governed by the Rule on Summary Procedure which allows
immediate execution of the judgment under Section 19, Rule 70 unless the defendant
On the Issue of Jurisdiction
perfects an appeal in the RTC and complies with the requirements to stay execution; all of
which are nevertheless beneficial to the interests of the lot owner or the holder of the right
Jurisdiction is the power or capacity given by the law to a court or tribunal to of possession.
entertain, hear and determine certain controversies.[5] Jurisdiction over the subject matter
is conferred by law. On the other hand, Section 19, of Chapter II of B.P. No. 129 on Regional Trial
Courts provides:
Section 33 of Chapter III -- on Metropolitan Trial Courts, Municipal Trial Courts,
and Municipal Circuit Trial Courts of B. P. No. 129[6] provides: Section 19. Jurisdiction in civil cases.Regional Trial Courts shall
exercise exclusive original jurisdiction:
Section 33. Jurisdiction of Metropolitan Trial Courts, Municipal
Trial Courts and Municipal Circuit Trial Courts in civil xxxx
cases.Metropolitan Trial Courts, Municipal Trial Courts, and
Municipal Circuit Trial Courts shall exercise: (2) In all civil actions which involve the title to, or possession of,
xxxx real property, or any interest therein, except actions for forcible
entry into and unlawful detainer of lands or buildings, original
(2) Exclusive original jurisdiction over cases of forcible entry jurisdiction over which is conferred upon Metropolitan Trial
and unlawful detainer: Provided, That when, in such cases, the Courts, Municipal Trial Courts and Municipal Circuit Trial
defendant raises the question of ownership in his pleadings and Courts.
the question of possession cannot be resolved without deciding
the issue of ownership, the issue of ownership shall be resolved Two (2) kinds of action to recover possession of real property which fall under
only to determine the issue of possession. the jurisdiction of the RTC are: (1) the plenary action for the recovery of the real right of
possession (accion publiciana) when the dispossession has lasted for more than one year or
Thus exclusive, original jurisdiction over ejectment proceedings (accion when the action was filed more than one (1) year from date of the last demand received by
interdictal) is lodged with the first level courts. This is clarified in Section 1, Rule 70 of the the lessee or defendant; and (2) an action for the recovery of ownership (accion
1997 Rules of Civil Procedure that embraces an action for forcible entry (detentacion), reivindicatoria) which includes the recovery of possession.
formally demanding that defendant vacate the premises x x x;
These actions are governed by the regular rules of procedure and adjudication
takes a longer period than the summary ejectment suit. 9. That, however, defendant failed and refused to vacate
despite just and legal demand by Mr. Lino Reyes;
To determine whether a complaint for recovery of possession falls under the
jurisdiction of the MeTC (first level court) or the RTC (second level court), we are compelled 10. That after the sale to plaintiff of said premises, plaintiff has
to go over the allegations of the complaint. The general rule is that what determines the several times demanded of defendants to vacate the premises,
nature of the action and the court that has jurisdiction over the case are the allegations in the last demand having been made on them personally and in
the complaint. These cannot be made to depend upon the defenses set up in the answer or writing on January 14, 1997 x x x;
pleadings filed by the defendant.[8]
11. That defendant failed and refused and still fails and refuses
This general rule however admits exceptions. In Ignacio v. CFI of Bulacan, it was to vacate the premises without legal cause or justifiable reason
held that while the allegations in the complaint make out a case for forcible entry, where whatsoever;[11]
tenancy is averred by way of defense and is proved to be the real issue, the case should be
dismissed for lack of jurisdiction as the case should properly be filed with the then Court of The answer of petitioner averred:
Agrarian Relations.[9]
4. The Court has no jurisdiction over the case, having been filed
The cause of action in a complaint is not what the designation of the complaint by plaintiff more than the reglementary one year period to
states, but what the allegations in the body of the complaint define and describe. The commence forcible entry case, which is reckoned from the date
designation or caption is not controlling, more than the allegations in the complaint of the alleged unlawful entry of defendant by the use of stealth
themselves are, for it is not even an indispensable part of the complaint.[10] and strategy into the premises;
Let us refer to the allegations of the complaint filed in the Manila MeTC in Civil 5. For more than four decades now, defendant has been and
Case No. 98-89174, which we quote verbatim: still is a rent-paying tenant of the subject land occupied by their
residential house, dating back to the original owner-lessor, the
3. That plaintiff is the absolute and registered owner of a parcel Dimayuga family. Her lease with no definite duration,
of land located at No. 1332, Lacson Street, Sampaloc, Manila commenced with a rent at P60.00 per month until it was
now being occupied by defendant; gradually increased in the ensuing years. As of November 1996,
it stood at P300.00 a month;
4. That plaintiff purchased the above-said parcel of land
together with its improvements from the legal heirs of the late 6. In this circumstances [sic], defendant enjoys the protective
EMERLINDA DIMAYUGA REYES on November 26, 1996, under mantle of P.D. 20 and the subsequent rental control status
and by virtue of a Deed of Absolute Sale x x x; against dispossession. She cannot be ejected other than for
5. That pursuant to the said deed of sale, the title to the land causes prescribed under B.P. Blg. 25. Further, in case of sale of
and all its improvements was transferred in plaintiffs name as the land, she has the right of first refusal under the express
evidenced by Transfer Certificate of Title No. 233273 issued by provision of P.D. 1571;
the Register of Deeds of Manila on April 22, 1997 x x x;
7. Throughout the years of her tenancy, defendant has been
6. That prior to said sale, the previous owners, represented by updated in her rental payment until the collector of the original
Mr. Lino Reyes, husband of the said deceased Emerlinda D. owner-lessor no longer came around as she has done
Reyes and the administrator of her estate, was in possession theretofore;
and control of the property subject of this complaint;
7. That also prior to said sale, defendant, without the 7.1. As a result, she was compelled to file a petition
knowledge and consent of Mr. Lino Reyes, surreptitiously and for consignation of rent before the Metropolitan
by means of stealth and strategy entered, used and occupied Trial Court of Manila;
the said premises thus depriving the former of rightful
possession thereof; 8. A bona fide tenant within the ambit if [sic] P.D. 20 and the
8. That on February 21, 1994, Mr. Lino Reyes, through Atty. subsequent rental control status, including B.P. Blg. 25, under
Alejo Sedico, his lawyer, furnished the defendants a letter its terms, cannot be ousted on a plea of expiration of her
monthly lease; lessee is the legal possessor of the subject lot by virtue of a contract of lease. When fire
destroyed her house, the Reyeses considered the lease terminated; but petitioner Dela
9. Her lease constitutes a legal encumbrance upon the property Cruz persisted in returning to the lot and occupied it by strategy and stealth without the
of the lessor/owner and binds the latters successor-in-interest consent of the owners. The Reyeses however tolerated the continued occupancy of the lot
who is under obligation to respect it; by petitioner. Thus, when the lot was sold to respondent Tan Te, the rights of the Reyeses,
with respect to the lot, were transferred to their subrogee, respondent Tan Te, who for a
10. The land at bench is the subject of a pending expropriation time also tolerated the stay of petitioner until she decided to eject the latter by sending
proceedings; several demands, the last being the January 14, 1997 letter of demand. Since the action
was filed with the MeTC on September 8, 1997, the action was instituted well within the
11. Plaintiff being a married woman cannot sue or be sued one (1) year period reckoned from January 14, 1997. Hence, the nature of the complaint is
without being joined by her husband;[12] one of unlawful detainer and the Manila MeTC had jurisdiction over the complaint.
Thus, an ejectment complaint based on possession by tolerance of the owner,
Undeniably, the aforequoted allegations of the complaint are vague and iffy in revealing like the Tan Te complaint, is a specie of unlawful detainer cases.
the nature of the action for ejectment.
As early as 1913, case law introduced the concept of possession by tolerance in
The allegations in the complaint show that prior to the sale by Lino Reyes, representing the ejectment cases as follows:
estate of his wife Emerlinda Reyes, he was in possession and control of the subject lot but
were deprived of said possession when petitioner, by means of stealth and strategy, It is true that the landlord might, upon the failure of the tenant
entered and occupied the same lot. These circumstances imply that he had prior physical to pay the stipulated rents, consider the contract broken and
possession of the subject lot and can make up a forcible entry complaint. demand immediate possession of the rented property, thus
converting a legal possession into illegal possession. Upon the
On the other hand, the allegation that petitioner Dela Cruz was served several other hand, however, the landlord might conclude to give the
demands to leave the premises but refused to do so would seem to indicate an action for tenant credit for the payment of the rents and allow him to
unlawful detainer since a written demand is not necessary in an action for forcible entry. It continue indefinitely in the possession of the property. In other
is a fact that the MeTC complaint was filed on September 8, 1997 within one (1) year from words, the landlord might choose to give the tenant credit from
the date of the last written demand upon petitioner Dela Cruz on January 14, 1997. month to month or from year to year for the payment of their
rent, relying upon his honesty of his financial ability to pay the
As previously discussed, the settled rule is jurisdiction is based on the allegations in the same. During such period the tenant would not be in illegal
initiatory pleading and the defenses in the answer are deemed irrelevant and immaterial in possession of the property and the landlord could not maintain
its determination. However, we relax the rule and consider the complaint at bar as an an action of desahucio until after he had taken steps to convert
exception in view of the special and unique circumstances present. First, as in Ignacio v. CFI the legal possession into illegal possession. A mere failure to
of Bulacan,[13] the defense of lack of jurisdiction was raised in the answer wherein there pay the rent in accordance with the contract would justify the
was an admission that petitioner Dela Cruz was a lessee of the former owners of the lot, landlord, after the legal notice, in bringing an action of
the Reyeses, prior to the sale to respondent Tan Te. The fact that petitioner was a tenant of desahucio. The landlord might, however, elect to recognize the
the predecessors-in-interest of respondent Tan Te is material to the determination of contract as still in force and sue for the sums due under it. It
jurisdiction. Since this is a judicial admission against the interest of petitioner, such would seem to be clear that the landlord might sue for the
admission can be considered in determining jurisdiction. Second, the ejectment suit was rents due and [unpaid, without electing to terminate the
filed with the Manila MeTC on September 8, 1997 or more than nine (9) years ago. To contract of tenancy;] [w]hether he can declare the contract of
dismiss the complaint would be a serious blow to the effective dispensation of justice as tenancy broken and sue in an action desahucio for the
the parties will start anew and incur additional legal expenses after having litigated for a possession of the property and in a separate actions for the
long time.Equitable justice dictates that allegations in the answer should be considered to rents due and damages, etc.[14]
aid in arriving at the real nature of the action. Lastly, Section 6, Rule 1 of the Rules of Court
clearly empowers the Court to construe Rule 70 and other pertinent procedural issuances The concept of possession by tolerance in unlawful detainer cases was further
in a liberal manner to promote just, speedy, and inexpensive disposition of every action refined and applied in pertinent cases submitted for decision by 1966. The rule was
and proceeding. articulated as follows:
Based on the complaint and the answer, it is apparent that the Tan Te ejectment Where despite the lessees failure to pay rent after the first
complaint is after all a complaint for unlawful detainer. It was admitted that petitioner Dela demand, the lessor did not choose to bring an action in court
Cruz was a lessee of the Reyeses for around four (4) decades. Thus, initially petitioner as but suffered the lessee to continue occupying the land for
nearly two years, after which the lessor made a second technicalities that tend to frustrate rather than promote
demand, the one-year period for bringing the detainer case in substantial justice, must always be eschewed. Even the Rules of
the justice of the peace court should be counted not from the Court reflect this principle. The power to suspend or even
day the lessee refused the first demand for payment of rent but disregard rules can be so pervasive and compelling as to alter
from the time the second demand for rents and surrender of even that which this Court itself has already declared to be final
possession was not complied with.[15] x x x.
In Calubayan v. Pascual, a case usually cited in subsequent decisions on The emerging trend in the rulings of this Court is to afford every
ejectment, the concept of possession by tolerance was further elucidated as follows: party litigant the amplest opportunity for the proper and just
determination of his cause, free from the constraints of
In allowing several years to pass without requiring the occupant technicalities. Time and again, this Court has consistently held
to vacate the premises nor filing an action to eject that rules must not be applied rigidly so as not to override
him, plaintiffs have acquiesced to defendants possession and substantial justice.[18]
use of the premises. It has been held that a person who
occupies the land of another at the latters tolerance or Moreover, Section 8, Rule 40 authorizes the RTCin case of affirmance of an order
permission, without any contract between them, is of the municipal trial court dismissing a case without trial on the merits and the ground of
necessarily bound by an implied promise that he will vacate dismissal is lack of jurisdiction over the subject matterto try the case on the merits as if the
upon demand, failing which a summary action for ejectment is case was originally filed with it if the RTC has jurisdiction over the case. In the same vein,
the proper remedy against them. The status of the defendant is this Court, in the exercise of its rule-making power, can suspend its rules with respect to
analogous to that of a lessee or tenant whose term of lease has this particular case (pro hac vice), even if initially, the MeTC did not have jurisdiction over
expired but whose occupancy continued by tolerance of the the ejectment suit, and decide to assume jurisdiction over it in order to promptly resolve
owner. In such a case, the unlawful deprivation or withholding the dispute.
of possession is to be counted from the date of the demand to
vacate.[16] (Emphasis supplied.) The issue of jurisdiction settled, we now scrutinize the main issue.
From the foregoing jurisprudence, it is unequivocal that petitioners possession At the heart of every ejectment suit is the issue of who is entitled to physical
after she intruded into the lot after the firewas by tolerance or leniency of the Reyeses and possession of the lot or possession de facto.
hence, the action is properly an unlawful detainer case falling under the jurisdiction of the
Manila MeTC. We rule in favor of respondent Tan Te for the following reasons:
Even if we concede that it is the RTC and not the MeTC that has jurisdiction over 1. Petitioner admitted in her Answer that she was a rent-paying tenant of the Reyeses,
the Tan Te complaint, following the reasoning that neither respondent nor her predecessors-in-interest of respondent Tan Te. As such, she recognized the ownership of
predecessor-in-interest filed an ejectment suit within one (1) year from February 21, 1994 the lot by respondent, which includes the right of possession.
when the Reyeses knew of the unlawful entry of petitioner, and hence, the complaint is
transformed into an accion publiciana, the Court deems it fair and just to suspend its rules 2. After the fire raged over the structures on the subject lot in late 1989 the contracts of
in order to render efficient, effective, and expeditious justice considering the nine (9) year lease expired, as a result of which Lino Reyes demanded that all occupants, including
pendency of the ejectment suit. More importantly, if there was uncertainty on the issue of petitioner, vacate the lot but the latter refused to abandon the premises. During the
jurisdiction that arose from the averments of the complaint, the same cannot be attributed duration of the lease, petitioners possession was legal but it became unlawful after the fire
to respondent Tan Te but to her counsel who could have been confused as to the actual when the lease contracts were deemed terminated and demands were made for the
nature of the ejectment suit. The lawyers apparent imprecise language used in the tenants to return possession of the lot.
preparation of the complaint without any participation on the part of Tan Te is sufficient
special or compelling reason for the grant of relief. 3. Petitioners possession is one by the Reyeses tolerance and generosity and later by
respondent Tan Tes.
The case of Barnes v. Padilla[17] elucidates the rationale behind the exercise by this Court of
the power to relax, or even suspend, the application of the rules of procedure: Petitioner fully knows that her stay in the subject lot is at the leniency and
magnanimity of Mr. Lino Reyes and later of respondent Tan Te; and her acquiescence to
Let it be emphasized that the rules of procedure should be such use of the lot carries with it an implicit and assumed commitment that she would
viewed as mere tools designed to facilitate the attainment of leave the premises the moment it is needed by the owner. When respondent Tan Te made
justice. Their strict and rigid application, which would result in a last, written demand on January 14, 1997and petitioner breached her promise to leave
upon demand, she lost her right to the physical possession of the lot. Thus, respondent
Tan Te should now be allowed to occupy her lot for residential purposes, a dream that will
finally be realized after nine (9) years of litigation. Republic of the Philippines
Petitioner raises the ancillary issue that on March 15, 1998, the Manila City Supreme Court
Council passed and approved Ordinance No. 7951:
Manila
[a]uthorizing the Manila City Mayor to acquire either by
negotiation or expropriation certain parcels of land covered by
Transfer Certificates of Title Nos. 233273, 175106 and 140471,
containing an area of One Thousand Four Hundred Twenty Five SECOND DIVISION
(1,425) square meters, located at Maria Clara and Governor
Forbes Streets, Sta. Cruz, Manila, for low cost housing and
award to actual bonafide residents thereat and further CELIA S. VDA. DE HERRERA,Petitioner, G.R. No. 170251
authorizing the City Mayor to avail for that purpose any
available funds of the city and other existing funding facilities Present:
from other government agencies x x x.[19]
It readily appears that this issue was not presented before the Court of Appeals
in CA-G.R. SP No. 49097 despite the fact that the respondents petition was filed on
CARPIO, J., Chairperson,
September 25, 1998, six months after the ordinance was passed. Thus, this issue is
proscribed as are all issues raised for the first time before the Court are proscribed.
- versus - NACHURA,
Even granting for the sake of argument that we entertain the issue, we rule that
PERALTA,
the intended expropriation of respondents lot (TCT No. 233273) by the city government
of Manila will not affect the resolution of this petition. For one thing, the issue can be
raised by petitioner in the appropriate legal proceeding. Secondly, the intended ABAD, and
expropriation might not even be implemented since it is clear from the ordinance that the
City Mayor will still locate available funds for project, meaning the said expense is not a MENDOZA, JJ.
regular item in the budget.
EMELITA BERNARDO, EVELYN BERNARDO as Guardian of Promulgated:
WHEREFORE, this petition is DENIED for lack of merit. The April 30, 1999 Decision Erlyn, Crislyn and Crisanto Bernardo,*
of the Court of Appeals reinstating the April 3, 1998 MeTC Decision in Civil Case No. June 1, 2011
156730-CV and the July 16, 1999 Resolution in CA-G.R. SP No. 49097 are Respondents.
hereby AFFIRMED IN TOTO. No costs. SO ORDERED.
DECISION
PERALTA, J.:
This is a petition for review on certiorari under Rule 45 of the Rules of Court seeking to
reverse and set aside the Decision[1] and Resolution[2] of the Court of Appeals (CA) in CA-
G.R. SP No. 73674.
The antecedents are as follows:
In the instant case, the COSLAP has no jurisdiction over the subject matter of Laches is defined as the "failure or neglect for an
respondents' complaint. The present case does not fall under any of the cases enumerated unreasonable and unexplained length of time, to do that which, by
under Section 3, paragraph 2 (a) to (e) of E.O. No. 561. The dispute between the parties is exercising due diligence, could or should have been done earlier, it is
not critical and explosive in nature, nor does it involve a large number of parties, nor is
negligence or omission to assert a right within a reasonable length of
there a presence or emergence of social tension or unrest. It can also hardly be
characterized as involving a critical situation that requires immediate action. time, warranting a presumption that the party entitled to assert it
either has abandoned it or declined to assert it.
It is axiomatic that the jurisdiction of a tribunal, including a quasi-judicial officer
or government agency, over the nature and subject matter of a petition or complaint is
determined by the material allegations therein and the character of the relief prayed for,
irrespective of whether the petitioner or complainant is entitled to any or all such The ruling in People v. Regalario that was based on the
reliefs.[10] landmark doctrine enunciated in Tijam v. Sibonghanoy on the matter of
jurisdiction by estoppel is the exception rather than the rule. Estoppel
Respondents' cause of action before the COSLAP pertains to their claim of by laches may be invoked to bar the issue of lack of jurisdiction only in
ownership over the subject property, which is an action involving title to or possession of
cases in which the factual milieu is analogous to that in the cited case.
real property, or any interest therein,[11] the jurisdiction of which is vested with the
Regional Trial Courts or the Municipal Trial Courts depending on the assessed value of the In such controversies, laches should have been clearly present; that is,
subject property.[12] lack of jurisdiction must have been raised so belatedly as to warrant the
presumption that the party entitled to assert it had abandoned or
The case of Banaga v. Commission on the Settlement of Land declined to assert it.
Problems,[13] applied by the CA and invoked by the respondents, is inapplicable to the
present case. Banaga involved parties with conflicting free patent applications over a
parcel of public land and pending with the Bureau of Lands. Because of the Bureau of
Land's inaction within a considerable period of time on the claims and protests of the In Sibonghanoy, the defense of lack of jurisdiction was raised
parties and to conduct an investigation, the COSLAP assumed jurisdiction and resolved the for the first time in a motion to dismiss filed by the Surety almost 15
conflicting claims of the parties. The Court held that since the dispute involved a parcel of
years after the questioned ruling had been rendered. At several stages
public land on a free patent issue, the COSLAP had jurisdiction over that case. In the
present case, there is no showing that the parties have conflicting free patent applications of the proceedings, in the court a quo as well as in the Court of
over the subject parcel of land that would justify the exercise of the COSLAP's jurisdiction. Appeals, the Surety invoked the jurisdiction of the said courts to obtain
affirmative relief and submitted its case for final adjudication on the
Since the COSLAP has no jurisdiction over the action, all the proceedings therein, merits. It was only when the adverse decision was rendered by the
including the decision rendered, are null and void.[14] A judgment issued by a quasi-judicial Court of Appeals that it finally woke up to raise the question of
jurisdiction.[22]
VELASCO, JR.,*
The factual settings attendant in Sibonghanoy are not present in the case at bar
that would justify the application of estoppel by laches against the petitioner. Here, LEONARDO-DE CASTRO,
petitioner assailed the jurisdiction of the COSLAP when she appealed the case to the CA - versus -
and at that time, no considerable period had yet elapsed for laches to attach. Therefore, Acting Chairperson,
petitioner is not estopped from assailing the jurisdiction of the COSLAP. Additionally, no
laches will even attach because the judgment is null and void for want of jurisdiction.[23] BERSAMIN,
Anent the issuance of OCT No. M-10991 in favor of petitioners husband Alfredo DEL CASTILLO, and
Herrerra in 2002, respondents alleged that there was fraud, misrepresentation and bad MEGAWORLD PROPERTIES & HOLDINGS,
faith in the issuance thereof. Thus, respondents are now questioning the legality of OCT INC., WILFREDO I. IMPERIAL, in his VILLARAMA, JR., JJ.
No. M-10991, an issue which this Court cannot pass upon in this present petition. It is a capacity as Director, NCR, and HOUSING
rule that the validity of a Torrens title cannot be assailed collaterally.[24] Section 48 of
AND LAND USE REGULATORY BOARD,
Presidential Decree No. 1529 provides that:
DEPARTMENT OF NATURAL RESOURCES,
Certificate not Subject to Collateral Attack. A certificate of title shall
Respondents.
not be subject to collateral attack. It cannot be altered, modified, or
canceled, except in a direct proceeding in accordance with law.
Promulgated:
The issue of the validity of the Title was brought only during the proceedings
before this Court as said title was issued in the name of petitioner's husband only during
the pendency of the appeal before the CA. The issue on the validity of title, i.e., whether or
not it was fraudulently issued, can only be raised in an action expressly instituted for that
purpose[25] and the present appeal before us, is simply not the direct proceeding
contemplated by law. April 18, 2012
WHEREFORE, the petition is GRANTED. The Decision and the Resolution of the DECISION
Court of Appeals, dated April 28, 2005 and October 17, 2005, respectively, in CA-G.R. SP LEONARDO-DE CASTRO, J.:
No. 73674 are REVERSED and SET ASIDE. The Decision and Order of the Commission on the
Settlement of Land Problems, dated December 6, 1999 and August 21, 2002, respectively, This is a petition for review on certiorari under Rule 45 of the 1997 Rules of Civil
in COSLAP Case No. 99-221, are declared NULL and VOID for having been issued without Procedure of the Decision[1] dated May 16, 2006 as well as the Resolution[2] dated October
jurisdiction. SO ORDERED. 5, 2006 of the Court of Appeals in CA-G.R. CV No. 63439, entitled ADDITION HILLS
MANDALUYONG CIVIC & SOCIAL ORGANIZATION INC. vs. MEGAWORLD PROPERTIES &
HOLDINGS, INC., WILFREDO I. IMPERIAL in his capacity as Director, NCR, and HOUSING AND
LAND USE REGULATORY BOARD, DEPARTMENT OF ENVIRONMENT AND NATURAL
RESOURCES. In effect, the appellate courts issuances reversed and set aside the
Republic of the Philippines Decision[3] dated September 10, 1998 rendered by the Regional Trial Court (RTC) of Pasig
Supreme Court City, Branch 158 in Civil Case No. 65171.
Baguio City
The facts of this case, as narrated in the assailed May 16, 2006 Decision of the
FIRST DIVISION Court of Appeals, are as follows:
Private respondent appealed to the Court of Appeals which issued the assailed
Thereafter, construction of the condominium project began, but on May 16, 2006 Decision which reversed and set aside the aforementioned trial court ruling,
the dispositive portion of which reads:
June 30, 1995, the plaintiff-appellee AHMCSO filed a complaint before
the Regional Trial Court of Pasig City, Branch 158, docketed as Civil Case WHEREFORE, premises considered, the September 10, 1998
No. 65171, for yo (sic) annul the Building Permit, CLV, ECC and Decision of the Regional Trial Court of Pasig City, Branch 158, rendered
Development Permit granted to MEGAWORLD; to prohibit the issuance in Civil Case No. 65171 is hereby REVERSED and SET ASIDE and a new
to MEGAWORLD of Certificate of Registration and License to Sell one entered DISMISSING the complaint.[6]
Condominium Units; and to permanently enjoin local and national
building officials from issuing licenses and permits to MEGAWORLD. As can be expected, petitioner moved for reconsideration; however, the Court of
Appeals denied the motion in its assailed October 5, 2006 Resolution.
On July 20, 1995, [private respondent] MEGAWORLD filed a Motion to
Dismiss the case for lack of cause of action and that jurisdiction over Hence, the petitioner filed the instant petition and submitted the following issues
the case was with the [public respondent] HLURB and not with the for consideration:
WHETHER OR NOT THE COURT OF APPEALS ERRED WHEN IT FOUND
regular courts.
THAT PETITIONER FAILED TO EXHAUST ADMINISTRATIVE REMEDIES
On July 24, 1994, the RTC denied the motion to dismiss filed by [private BEFORE SEEKING JUDICIAL INTERVENTION FROM THE COURTS.
respondent] MEGAWORLD.
WHETHER OR NOT THE COURT OF APPEALS (The Court) ERRED WHEN B. WHETHER OR NOT THE TRIAL COURT ERRED IN HOLDING
IT CONCLUDED THAT THE HLURB HAD JURISDICTION OVER ACTIONS TO THAT THE DEVELOPMENT PERMIT WAS IMPROPERLY AND
ANNUL CERTIFICATES OF LOCATIONAL VIABILITY AND DEVELOPMENT IRREGULARLY ISSUED.
PERMITS.[7]
C. WHETHER OR NOT THE TRIAL COURT ERRED IN HOLDING
THAT THE PROJECT DEPRIVES THE ADJACENT PROPERTIES OF
AIR.[9]
On the other hand, private respondent put forth the following issues in its We find the petition to be without merit.
Memorandum[8]:
I
At the outset, the parties in their various pleadings discuss issues, although
ostensibly legal, actually require the Court to make findings of fact. It is long settled, by law
and jurisprudence, that the Court is not a trier of facts.[10] Therefore, the only relevant
WHETHER OR NOT THE PETITION FOR REVIEW IS FATALLY DEFECTIVE issue to be resolved in this case is whether or not the remedy sought by the petitioner in
FOR BEING IMPROPERLY VERIFIED. the trial court is in violation of the legal principle of the exhaustion of administrative
remedies.
II
We have consistently declared that the doctrine of exhaustion of administrative
remedies is a cornerstone of our judicial system. The thrust of the rule is that courts must
allow administrative agencies to carry out their functions and discharge their
responsibilities within the specialized areas of their respective competence. The rationale
WHETHER OR NOT THE COURT OF APPEALS CORRECTLY ANNULLED
for this doctrine is obvious. It entails lesser expenses and provides for the speedier
AND SET ASIDE THE TRIAL COURTS DECISION AND DISMISSED THE resolution of controversies. Comity and convenience also impel courts of justice to shy
COMPLAINT FOR PETITIONERS FAILURE TO EXHAUST ADMINISTRATIVE away from a dispute until the system of administrative redress has been completed.[11]
REMEDIES.
In the case of Republic v. Lacap,[12] we expounded on the doctrine of exhaustion
III of administrative remedies and the related doctrine of primary jurisdiction in this wise:
The general rule is that before a party may seek the
WHETHER OR NOT THE DECISION OF THE TRIAL COURT IS CONTRARY intervention of the court, he should first avail of all the means afforded
TO LAW AND THE FACTS. him by administrative processes. The issues which administrative
agencies are authorized to decide should not be summarily taken from
them and submitted to a court without first giving such administrative
agency the opportunity to dispose of the same after due deliberation.
A. WHETHER OR NOT THE TRIAL COURT ERRED IN HOLDING
THAT THE CLV WAS IMPROPERLY AND IRREGULARLY ISSUED.
Upon careful consideration of the parties contentions, we find that none of the
aforementioned exceptions exist in the case at bar. Sec. 4. If in the course of evaluation of
application for registration and licensing of projects
What is apparent, however, is that petitioner unjustifiably failed to exhaust the
administrative remedies available with the Housing and Land Use Regulatory Board within its jurisdiction, HLURB finds that a local
(HLURB) before seeking recourse with the trial court. Under the rules of the HLURB which government unit has overlooked or mistakenly
were then in effect, particularly Sections 4 and 6 of HLURB Resolution No. R-391, Series of applied a certain law, rule or standard in issuing a
1987 (Adopting the 1987 Rules of Procedure of the Housing and Land Use Regulatory development permit, it shall suspend action with a
Board),[15] a complaint to annul any permit issued by the HLURB may be filed before the corresponding advice to the local government
Housing and Land Use Arbiter (HLA). Therefore, petitioners action to annul the Certificate concerned, so as to afford it an opportunity to take
of Locational Viability (CLV) and the Development Permit issued by the HLURB on October
appropriate action thereon. Such return and advice
25, 1994 and November 11, 1994, respectively, in favor of private respondent for its Wack-
Wack Heights Condominium Project should have been properly filed before the HLURB must likewise be effected within a period of thirty
instead of the trial court. (30) days from receipt by HLURB of the application.
be filed before the Housing and Land Use Arbiter (HLA). The decision
of the HLA may be brought to the Board of Commissioners by Petition
Moreover, Section 18 and 19 of HSRC Administrative Order for Certiorari and the decision of the Board of Commissioners [is]
No. 20 provides: appealable to the Office of the President.[16](Citations omitted;
emphases supplied.)
It does not escape the attention of the Court that in its Reply, petitioner admitted
Section 18. Oppossition to that it had a pending complaint with the HLURB involving private respondents the
Application. Opposition to application shall be Development Permit, the Certificate of Registration and License to Sell Condominium Units,
considered as a complaint, the resolution of which aside from complaints with the Building Official of the Municipality (now City) of
shall be a prerequisite to any action on the Mandaluyong and the MMDA, when it instituted its action with the trial court. As discussed
application. Complaints and other legal processes earlier, a litigant cannot go around the authority of the concerned administrative agency
and directly seek redress from the courts. Thus, when the law provides for a remedy
shall be governed by the Rules of Procedure of the
against a certain action of an administrative board, body, or officer, relief to the courts can
Commission, and shall have the effect of
be made only after exhausting all remedies provided therein. It is settled that the non-
suspending the application. observance of the doctrine of exhaustion of administrative remedies results in lack of cause
of action, which is one of the grounds in the Rules of Court justifying the dismissal of the
complaint.[17]
Section 19. Complaints/Opposition Filed After view of the foregoing discussion, we find it unnecessary to resolve the other
the Issuance of Locational Clearance. Temporary issues raised by the parties.
issuance of locational permit or land transaction
approval shall be acted upon by the Office that To conclude, it is our view that the Court of Appeals committed no reversible
error in setting aside the trial court decision and dismissing said complaint.
issued the same. Such complaint shall not
automatically suspend the locational clearance, WHEREFORE, premises considered, the petition is hereby DENIED. The assailed
temporary use permit, development permit or land Decision dated May 16, 2006 and the Resolution dated October 5, 2006 of the Court of
transaction approval unless an order issued by the Appeals in CA-G.R. CV No. 63439 are AFFIRMED.
commission to that effect. SO ORDERED.
Under the rules of the HLURB then prevailing at the time this case
was filed, a complaint to annul any permit issued by the HLURB may
PERALTA, J.:
Assailed in the present petition for review on certiorari under Rule 45 of the
Rules of Court are the Decision[1] and Resolution[2]dated January 26, 2006 and July 12,
2006, respectively, of the Court of Appeals (CA) in CA-G.R. CEB SP No. 01175. The CA
Decision dismissed petitioners' petition for certiorari and affirmed the Orders of the
Regional Trial Court (RTC) of Calbiga, Samar, Branch 33, dated May 6, 2005 and September
15, 2005, while the CA Resolution denied petitioners' Motion for Reconsideration.
Herein petitioner Samar II Electric Cooperative, Inc. (SAMELCO II) was organized under the
provisions of Presidential Decree (P.D.) No. 269, otherwise known as the National
Electrification Administration Decree, as amended by P.D. No. 1645. The individual
petitioners are members of SAMELCO II's Board of Directors. Respondent was also a
member of the SAMELCO II Board of Directors having been elected thereto in 2002 and
whose term of office expired in May 2005.
Promulgated:
In his petition, private respondent prayed for the nullification of
Resolution No. 5, [Series] of 2005, contending that it was issued
April 25, 2012
without any legal and factual bases. He likewise prayed that a
DECISION temporary restraining order (TRO) and/or a writ of preliminary
injunction be issued to enjoin the individual petitioners from enforcing
the assailed board resolution. (2)
THE HONORABLE COURT OF APPEALS, IN SUSTAINING THE
Granting private respondent's prayer for a TRO, the public respondent JURISDICTION OF THE TRIAL COURT, COMMITTED AN ERROR OF LAW
issued one, effective for seventy-two (72) hours which effectivity was BY HOLDING THAT A PERUSAL OF THE LAW CREATING THE NEA
later on extended for another seventeen (17) days. DISCLOSES THAT THE NEA WAS NOT GRANTED THE POWER TO HEAR
AND DECIDE CASES INVOLVING THE VALIDITY OF BOARD RESOLUTIONS
In their answer to the petition for prohibition, individual petitioners UNSEATING ANY MEMBER OF THE BOARD OF DIRECTORS AND THAT
raised the affirmative defense of lack of jurisdiction of the RTC over the NEITHER WAS IT GRANTED JURISDICTION OVER PETITIONS FOR
subject matter of the case. Individual petitioners assert that, since the CERTIORARI, PROHIBITION OR MANDAMUS.
matter involved an electric cooperative, SAMELCO II, primary
jurisdiction is vested on the National Electrification Administration
(3)
(NEA).
THE HONORABLE COURT OF APPEALS COMMITTED AN ERROR OF LAW
WHEN IT SUSTAINED THE JURISDICTION OF [THE] TRIAL COURT OVER
In her assailed Order dated May 6, 2005, [the RTC judge] sustained the
THE PETITION FOR PROHIBITION DESPITE THE EXISTENCE OF APPEAL OR
jurisdiction of the court over the petition for prohibition and barred the
OTHER PLAIN, SPEEDY AND ADEQUATE REMEDY AVAILABLE TO
petitioners and/or their representatives from enforcing Resolution No.
THEREIN PETITIONER SELUDO.[4]
5 [Series] of 2005.
x x x[3]
In their first assigned error, petitioners contend that the CA erred in interpreting
the doctrine of primary jurisdiction in a very limited sense. Petitioners aver that in a
number of cases, this Court applied the doctrine of primary jurisdiction even in cases
Petitioners filed a motion for reconsideration, but the same was denied by the where the issues involved do not require the technical expertise of administrative bodies.
RTC in its September 15, 2005 Order.
Petitioners also argue, in their second assignment of error, that it is wrong for the
Petitioners then elevated the case to the CA via a special civil action CA to rule that there is nothing under the law creating the National Electrification
for certiorari, imputing grave abuse of discretion on the part of the RTC in issuing its Administration (NEA), which grants the said administrative body the power to ascertain the
assailed Orders. validity of board resolutions unseating any member of the Board of Directors of an electric
cooperative. Citing the provisions of P.D. Nos. 269 and 1645, petitioners aver that the NEA
On January 26, 2006, the CA rendered its Decision dismissing petitioners' petition is empowered to determine the validity of resolutions passed by electric cooperatives.
for certiorari and affirming the assailed Orders of the RTC.
In their third assigned error, petitioners assert that respondent is precluded from
Petitioners filed a motion for reconsideration, but it was denied by the CA in its filing a petition for prohibition considering that, under the applicable laws, it has an
July 12, 2006 Resolution. adequate remedy in the ordinary course of law.
Hence, the instant petition with the following assigned errors: The Court finds the petition meritorious. As the assigned errors are interrelated, the Court
(1) will discuss them jointly.
IN ITS INTERPRETATION AND APPLICATION OF THE DOCTRINE OF
PRIMARY JURISDICTION, THE HONORABLE COURT OF APPEALS Section 10, Chapter II of P.D. No. 269, as amended by Section 5 of P.D. No. 1645, provides:
COMMITTED LEGAL ERRORS IN LIMITING THE DOCTRINE TO CERTAIN
MATTERS IN CONTROVERSIES INVOLVING SPECIALIZED DISPUTES AND Section 5. Section 10, Chapter II of Presidential Decree No.
IN UPHOLDING THE JURISDICTION OF THE TRIAL COURT OVER THE 269 is hereby amended to read as follows:
URGENT PETITION FOR PROHIBITION FILED BY RESPONDENT SELUDO
ON THE GROUND THAT THE ISSUES RAISED THEREIN DO NOT REQUIRE Section 10. Enforcement Powers and Remedies. In the
THE TECHNICAL EXPERTISE OF THE NEA exercise of its power of supervision and control over electric
cooperatives and other borrower, supervised or controlled entities, the
NEA is empowered to issue orders, rules and regulations and motu Cooperative subject to NEA policies, rules and
proprio or upon petition of third parties, to conduct investigations, regulations.
referenda and other similar actions in all matters affecting said
electric cooperatives and other borrower, or supervised or controlled
x x x. (Emphasis supplied.)
entities.
If the electric cooperative concerned or other similar entity
fails after due notice to comply with NEA orders, rules and regulations
A comparison of the original provisions of Sections 10 and 24 of P.D. No. 269 and
and/or decisions, or with any of the terms of the Loan Agreement, the the amendatory provisions under Sections 5 and 7 of P.D. No. 1645 would readily show
NEA Board of Administrators may avail of any or all of the following that the intention of the framers of the amendatory law is to broaden the powers of the
remedies: NEA.
x x x x. A clear proof of such expanded powers is that, unlike P.D. No. 269, P.D. No. 1645
expressly provides for the authority of the NEA to exercise supervision and control over
electric cooperatives. In administrative law, supervision means overseeing or the power or
(e) Take preventive and/or disciplinary measures
authority of an officer to see that subordinate officers perform their duties. [5] If the latter
including suspension and/or removal and fail or neglect to fulfill them, the former may take such action or step as prescribed by law
replacement of any or all of the members of the to make them perform their duties.[6] Control, on the other hand, means the power of an
Board of Directors, officers or employees of the officer to alter or modify or nullify or set aside what a subordinate officer had done in the
Cooperative, other borrower institutions or performance of his duties and to substitute the judgment of the former for that of the
supervised or controlled entities as the NEA Board latter.[7] Section 38 (1), Chapter 7, Book 4 of Executive Order No. 292, otherwise known as
of Administrators may deem fit and necessary and the Administrative Code of 1987 provides, thus:
to take any other remedial measures as the law or
the Loan Agreement may provide. Supervision and control shall include the authority to act directly
whenever a specific function is entrusted by law or regulation to a
x x x x (Emphasis supplied.) subordinate; direct the performance of duty; restrain the commission
of acts; review, approve, reverse or modify acts and decisions of
In addition, Subsection (a), Section 24, Chapter III of P.D. No. 269, as amended by subordinate officials or units; determine priorities in the execution of
Section 7 of P.D. No. 1645, states: plans and programs; and prescribe standards, guidelines, plans and
programs x x x. (Emphasis supplied.)
Section 7. Subsection (a), Section 24, Chapter III of
Presidential Decree No. 269 is hereby amended to read as follows:
The Court, therefore, finds it erroneous on the part of the CA to rule that the
Section 24. Board of Directors. (a) The doctrine of primary jurisdiction does not apply in the present case. It is true that the RTC
Management of a Cooperative shall be vested in has jurisdiction over the petition for prohibition filed by respondent.[8] However, the basic
its Board, subject to the supervision and control of issue in the present case is not whether the RTC has jurisdiction over the petition for
NEA which shall have the right to be represented prohibition filed by respondent; rather, the issue is who between the RTC and the NEA has
primary jurisdiction over the question of the validity of the Board Resolution issued by
and to participate in all Board meetings and
SAMELCO II. A careful reading of the above-quoted provisions of P.D. No. 1645 clearly show
deliberations and to approve all policies and that, pursuant to its power of supervision and control, the NEA is granted the authority to
resolutions. conduct investigations and other similar actions as well as to issue orders, rules and
regulations with respect to all matters affecting electric cooperatives. Certainly, the matter
The composition, qualifications, the as to the validity of the resolution issued by the Board of Directors of SAMELCO II, which
manner of elections and filling of vacancies, the practically removed respondent from his position as a member of the Board of Directors
and further disqualified him to run as such in the ensuing election, is a matter which affects
procedures for holding meetings and other similar
the said electric cooperative and, thus, comes within the ambit of the powers of the NEA as
provisions shall be defined in the by-laws of the
expressed in Sections 5 and 7 of P.D. No. 1645.
In this regard, the Court agrees with petitioners' argument that to sustain the Respondent, however, failed to show that the instant case falls under any of the
petition for prohibition filed by respondent with the RTC would constitute an unnecessary above-enumerated exceptions. While respondent alleged in his Urgent Petition for
intrusion into the NEA's power of supervision and control over electric cooperatives. Prohibition that the subject resolution was issued with grave abuse of discretion and in
violation of his right to due process, mere allegation of arbitrariness will not suffice to vest
Based on the foregoing discussions, the necessary conclusion that can be arrived in the trial court the power that has been specifically granted by law to special government
at is that, while the RTC has jurisdiction over the petition for prohibition filed by agencies.[19] Moreover, the issues raised in the petition for prohibition, particularly the
respondent, the NEA, in the exercise of its power of supervision and control, has primary issue of whether or not there are valid grounds to disallow respondent from attending
jurisdiction to determine the issue of the validity of the subject resolution. SAMELCO's Board meetings and to disqualify him from running for re-election as a director
of the said Board, are not purely legal questions. Instead, they involve a determination of
It may not be amiss to reiterate the prevailing rule that the doctrine of primary factual matters which fall within the competence of the NEA to ascertain.
jurisdiction applies where a claim is originally cognizable in the courts and comes into play Finally, the Court agrees with petitioners' contention that the availability of an
whenever enforcement of the claim requires the resolution of issues which, under a administrative remedy via a complaint filed before the NEA precludes respondent from
regulatory scheme, has been placed within the special competence of an administrative filing a petition for prohibition before the court. It is settled that one of the requisites for a
agency.[9] In such a case, the court in which the claim is sought to be enforced may suspend writ of prohibition to issue is that there is no plain, speedy and adequate remedy in the
the judicial process pending referral of such issues to the administrative body for its view ordinary course of law.[20] In order that prohibition will lie, the petitioner must first exhaust
or, if the parties would not be unfairly disadvantaged, dismiss the case without all administrative remedies.[21] Thus, respondent's failure to file a complaint before the NEA
prejudice.[10] prevents him from filing a petition for prohibition before the RTC.
Corollary to the doctrine of primary jurisdiction is the principle of exhaustion of WHEREFORE, the instant petition is GRANTED. The questioned Decision and
administrative remedies. The Court, in a long line of cases,[11] has held that before a party is Resolution of the Court of Appeals dated January 26, 2006 and July 12, 2006, respectively,
allowed to seek the intervention of the courts, it is a pre-condition that he avail himself of as well as the Orders of the Regional Trial Court of Calbiga, Samar, Branch 33, dated May 6,
all administrative processes afforded him. Hence, if a remedy within the administrative 2005 and September 15, 2005, are REVERSED and SET ASIDE. A new judgment is
machinery can be resorted to by giving the administrative officer every opportunity to entered DISMISSING the Urgent Petition for Prohibition (Special Civil Action No. C-2005-
decide on a matter that comes within his jurisdiction, then such remedy must be exhausted 1085) filed by respondent Ananias D. Seludo, Jr. SO ORDERED.
first before the courts power of judicial review can be sought. [12] The premature resort to
the court is fatal to ones cause of action.[13] Accordingly, absent any finding of waiver
or estoppel, the case may be dismissed for lack of cause of action.[14]
(2) There shall be no charge for calls that are diverted to a voice mailbox, voice prompt,
recorded message or similar facility excluding the customers own equipment.
(3) PTEs shall verify the identification and address of each purchaser of prepaid SIM
cards. Prepaid call cards and SIM cards shall be valid for at least 2 years from the date of
first use. Holders of prepaid SIM cards shall be given 45 days from the date the prepaid SIM
card is fully consumed but not beyond 2 years and 45 days from date of first use to
replenish the SIM card, otherwise the SIM card shall be rendered invalid. The validity of an
invalid SIM card, however, shall be installed upon request of the customer at no additional
charge except the presentation of a valid prepaid call card.
FIRST DIVISION (4) Subscribers shall be updated of the remaining value of their cards before the start of
every call using the cards.
(5) The unit of billing for the cellular mobile telephone service whether postpaid or prepaid
[G.R. No. 151908. August 12, 2003] shall be reduced from 1 minute per pulse to 6 seconds per pulse. The authorized rates per
minute shall thus be divided by 10.[1]
The Memorandum Circular provided that it shall take effect 15 days after its
publication in a newspaper of general circulation and three certified true copies thereof
SMART COMMUNICATIONS, INC. (SMART) and PILIPINO TELEPHONE CORPORATION furnished the UP Law Center. It was published in the newspaper, The Philippine Star, on
(PILTEL), petitioners, vs. NATIONAL TELECOMMUNICATIONS COMMISSION June 22, 2000.[2]Meanwhile, the provisions of the Memorandum Circular pertaining to the
(NTC), respondent. sale and use of prepaid cards and the unit of billing for cellular mobile telephone service
took effect 90 days from the effectivity of the Memorandum Circular.
On August 30, 2000, the NTC issued a Memorandum to all cellular mobile telephone
[G.R. No. 152063. August 12, 2003] service (CMTS) operators which contained measures to minimize if not totally eliminate the
incidence of stealing of cellular phone units. The Memorandum directed CMTS operators
to:
On October 20, 2000, petitioners Isla Communications Co., Inc. and Pilipino WHEREFORE, premises considered, the instant petition for certiorari and prohibition is
Telephone Corporation filed against the National Telecommunications Commission, GRANTED, in that, the order of the court a quo denying the petitioners motion to dismiss
Commissioner Joseph A. Santiago, Deputy Commissioner Aurelio M. Umali and Deputy as well as the order of the court a quo granting the private respondents prayer for a writ of
Commissioner Nestor C. Dacanay, an action for declaration of nullity of NTC Memorandum preliminary injunction, and the writ of preliminary injunction issued thereby, are hereby
Circular No. 13-6-2000 (the Billing Circular) and the NTC Memorandum dated October 6, ANNULLED and SET ASIDE. The private respondents complaint and complaint-in-
2000, with prayer for the issuance of a writ of preliminary injunction and temporary intervention below are hereby DISMISSED, without prejudice to the referral of the private
restraining order. The complaint was docketed as Civil Case No. Q-00-42221 at the Regional respondents grievances and disputes on the assailed issuances of the NTC with the said
Trial Court of Quezon City, Branch 77.[5] agency.
Petitioners Islacom and Piltel alleged, inter alia, that the NTC has no jurisdiction to SO ORDERED.[10]
regulate the sale of consumer goods such as the prepaid call cards since such jurisdiction
belongs to the Department of Trade and Industry under the Consumer Act of the Petitioners motions for reconsideration were denied in a Resolution dated January
Philippines; that the Billing Circular is oppressive, confiscatory and violative of the 10, 2002 for lack of merit.[11]
constitutional prohibition against deprivation of property without due process of law; that
the Circular will result in the impairment of the viability of the prepaid cellular service by Hence, the instant petition for review filed by Smart and Piltel, which was docketed
unduly prolonging the validity and expiration of the prepaid SIM and call cards; and that as G.R. No. 151908, anchored on the following grounds:
the requirements of identification of prepaid card buyers and call balance announcement A.
are unreasonable. Hence, they prayed that the Billing Circular be declared null and void ab
initio. THE HONORABLE COURT OF APPEALS GRAVELY ERRED IN HOLDING THAT THE
NATIONAL TELECOMMUNICATIONS COMMISSION (NTC) AND NOT THE REGULAR
Soon thereafter, petitioners Globe Telecom, Inc and Smart Communications, Inc. filed COURTS HAS JURISDICTION OVER THE CASE.
a joint Motion for Leave to Intervene and to Admit Complaint-in-Intervention.[6] This was
granted by the trial court. B.
On October 27, 2000, the trial court issued a temporary restraining order enjoining THE HONORABLE COURT OF APPEALS ALSO GRAVELY ERRED IN HOLDING THAT
the NTC from implementing Memorandum Circular No. 13-6-2000 and the Memorandum THE PRIVATE RESPONDENTS FAILED TO EXHAUST AN AVAILABLE
dated October 6, 2000.[7] ADMINISTRATIVE REMEDY.
In the meantime, respondent NTC and its co-defendants filed a motion to dismiss the C.
case on the ground of petitioners failure to exhaust administrative remedies.
THE HONORABLE COURT OF APPEALS ERRED IN NOT HOLDING THAT THE
Subsequently, after hearing petitioners application for preliminary injunction as well BILLING CIRCULAR ISSUED BY THE RESPONDENT NTC IS UNCONSTITUTIONAL
as respondents motion to dismiss, the trial court issued on November 20, 2000 an Order, AND CONTRARY TO LAW AND PUBLIC POLICY.
the dispositive portion of which reads:
D.
THE HONORABLE COURT OF APPEALS ERRED IN HOLDING THAT THE PRIVATE valid. Constitutional and statutory provisions control with respect to what rules and
RESPONDENTS FAILED TO SHOW THEIR CLEAR POSITIVE RIGHT TO WARRANT regulations may be promulgated by an administrative body, as well as with respect to what
THE ISSUANCE OF A WRIT OF PRELIMINARY INJUNCTION.[12] fields are subject to regulation by it. It may not make rules and regulations which are
inconsistent with the provisions of the Constitution or a statute, particularly the statute it is
Likewise, Globe and Islacom filed a petition for review, docketed as G.R. No. 152063, administering or which created it, or which are in derogation of, or defeat, the purpose of a
assigning the following errors: statute. In case of conflict between a statute and an administrative order, the former must
1. THE HONORABLE COURT OF APPEALS SO GRAVELY ERRED BECAUSE THE prevail.[18]
DOCTRINES OF PRIMARY JURISDICTION AND EXHAUSTION OF Not to be confused with the quasi-legislative or rule-making power of an
ADMINISTRATIVE REMEDIES DO NOT APPLY SINCE THE INSTANT CASE IS administrative agency is its quasi-judicial or administrative adjudicatory power. This is the
FOR LEGAL NULLIFICATION (BECAUSE OF LEGAL INFIRMITIES AND power to hear and determine questions of fact to which the legislative policy is to apply
VIOLATIONS OF LAW) OF A PURELY ADMINISTRATIVE REGULATION and to decide in accordance with the standards laid down by the law itself in enforcing and
PROMULGATED BY AN AGENCY IN THE EXERCISE OF ITS RULE MAKING administering the same law. The administrative body exercises its quasi-judicial power
POWERS AND INVOLVES ONLY QUESTIONS OF LAW. when it performs in a judicial manner an act which is essentially of an executive or
2. THE HONORABLE COURT OF APPEALS SO GRAVELY ERRED BECAUSE THE administrative nature, where the power to act in such manner is incidental to or
DOCTRINE ON EXHAUSTION OF ADMINISTRATIVE REMEDIES DOES NOT reasonably necessary for the performance of the executive or administrative duty
APPLY WHEN THE QUESTIONS RAISED ARE PURELY LEGAL QUESTIONS. entrusted to it. In carrying out their quasi-judicial functions, the administrative officers or
bodies are required to investigate facts or ascertain the existence of facts, hold hearings,
3. THE HONORABLE COURT OF APPEALS SO GRAVELY ERRED BECAUSE THE weigh evidence, and draw conclusions from them as basis for their official action and
DOCTRINE OF EXHAUSTION OF ADMINISTRATIVE REMEDIES DOES NOT exercise of discretion in a judicial nature.[19]
APPLY WHERE THE ADMINISTRATIVE ACTION IS COMPLETE AND EFFECTIVE,
WHEN THERE IS NO OTHER REMEDY, AND THE PETITIONER STANDS TO In questioning the validity or constitutionality of a rule or regulation issued by an
SUFFER GRAVE AND IRREPARABLE INJURY. administrative agency, a party need not exhaust administrative remedies before going to
court. This principle applies only where the act of the administrative agency concerned was
4. THE HONORABLE COURT OF APPEALS SO GRAVELY ERRED BECAUSE performed pursuant to its quasi-judicial function, and not when the assailed act pertained
PETITIONERS IN FACT EXHAUSTED ALL ADMINISTRATIVE REMEDIES to its rule-making or quasi-legislative power. In Association of Philippine Coconut
AVAILABLE TO THEM. Dessicators v. Philippine Coconut Authority,[20] it was held:
5. THE HONORABLE COURT OF APPEALS SO GRAVELY ERRED IN ISSUING ITS The rule of requiring exhaustion of administrative remedies before a party may seek
QUESTIONED RULINGS IN THIS CASE BECAUSE GLOBE AND ISLA HAVE A judicial review, so strenuously urged by the Solicitor General on behalf of respondent, has
CLEAR RIGHT TO AN INJUNCTION.[13] obviously no application here. The resolution in question was issued by the PCA in the
exercise of its rule- making or legislative power. However, only judicial review of decisions
The two petitions were consolidated in a Resolution dated February 17, 2003.[14] of administrative agencies made in the exercise of their quasi-judicial function is subject to
On March 24, 2003, the petitions were given due course and the parties were the exhaustion doctrine.
required to submit their respective memoranda.[15] Even assuming arguendo that the principle of exhaustion of administrative remedies
We find merit in the petitions. apply in this case, the records reveal that petitioners sufficiently complied with this
requirement. Even during the drafting and deliberation stages leading to the issuance of
Administrative agencies possess quasi-legislative or rule-making powers and quasi- Memorandum Circular No. 13-6-2000, petitioners were able to register their protests to
judicial or administrative adjudicatory powers.Quasi-legislative or rule-making power is the the proposed billing guidelines. They submitted their respective position papers setting
power to make rules and regulations which results in delegated legislation that is within forth their objections and submitting proposed schemes for the billing circular. [21] After the
the confines of the granting statute and the doctrine of non-delegability and separability of same was issued, petitioners wrote successive letters dated July 3, 2000[22] and July 5,
powers.[16] 2000,[23] asking for the suspension and reconsideration of the so-called Billing
Circular. These letters were not acted upon until October 6, 2000, when respondent NTC
The rules and regulations that administrative agencies promulgate, which are the
issued the second assailed Memorandum implementing certain provisions of the Billing
product of a delegated legislative power to create new and additional legal provisions that
Circular. This was taken by petitioners as a clear denial of the requests contained in their
have the effect of law, should be within the scope of the statutory authority granted by the
previous letters, thus prompting them to seek judicial relief.
legislature to the administrative agency. It is required that the regulation be germane to
the objects and purposes of the law, and be not in contradiction to, but in conformity with, In like manner, the doctrine of primary jurisdiction applies only where the
the standards prescribed by law.[17] They must conform to and be consistent with the administrative agency exercises its quasi-judicial or adjudicatory function. Thus, in cases
provisions of the enabling statute in order for such rule or regulation to be involving specialized disputes, the practice has been to refer the same to an administrative
agency of special competence pursuant to the doctrine of primary jurisdiction. The courts Circular contravened Civil Code provisions on sales and violated the constitutional
will not determine a controversy involving a question which is within the jurisdiction of the prohibition against the deprivation of property without due process of law. These are
administrative tribunal prior to the resolution of that question by the administrative within the competence of the trial judge. Contrary to the finding of the Court of Appeals,
tribunal, where the question demands the exercise of sound administrative discretion the issues raised in the complaint do not entail highly technical matters. Rather, what is
requiring the special knowledge, experience and services of the administrative tribunal to required of the judge who will resolve this issue is a basic familiarity with the workings of
determine technical and intricate matters of fact, and a uniformity of ruling is essential to the cellular telephone service, including prepaid SIM and call cards and this is judicially
comply with the premises of the regulatory statute administered. The objective of the known to be within the knowledge of a good percentage of our population and expertise in
doctrine of primary jurisdiction is to guide a court in determining whether it should refrain fundamental principles of civil law and the Constitution.
from exercising its jurisdiction until after an administrative agency has determined some
question or some aspect of some question arising in the proceeding before the court. It Hence, the Regional Trial Court has jurisdiction to hear and decide Civil Case No. Q-
applies where the claim is originally cognizable in the courts and comes into play whenever 00-42221. The Court of Appeals erred in setting aside the orders of the trial court and in
enforcement of the claim requires the resolution of issues which, under a regulatory dismissing the case.
scheme, has been placed within the special competence of an administrative body; in such WHEREFORE, in view of the foregoing, the consolidated petitions are GRANTED. The
case, the judicial process is suspended pending referral of such issues to the administrative decision of the Court of Appeals in CA-G.R. SP No. 64274 dated October 9, 2001 and its
body for its view.[24] Resolution dated January 10, 2002 are REVERSED and SET ASIDE. The Order dated
However, where what is assailed is the validity or constitutionality of a rule or November 20, 2000 of the Regional Trial Court of Quezon City, Branch 77, in Civil Case No.
regulation issued by the administrative agency in the performance of its quasi-legislative Q-00-42221 is REINSTATED. This case is REMANDED to the court a quo for continuation
function, the regular courts have jurisdiction to pass upon the same. The determination of of the proceedings.
whether a specific rule or set of rules issued by an administrative agency contravenes the SO ORDERED.
law or the constitution is within the jurisdiction of the regular courts. Indeed, the
Constitution vests the power of judicial review or the power to declare a law, treaty,
international or executive agreement, presidential decree, order, instruction, ordinance, or
regulation in the courts, including the regional trial courts.[25] This is within the scope of
judicial power, which includes the authority of the courts to determine in an appropriate
action the validity of the acts of the political departments.[26] Judicial power includes the
duty of the courts of justice to settle actual controversies involving rights which are legally
demandable and enforceable, and to determine whether or not there has been a grave
abuse of discretion amounting to lack or excess of jurisdiction on the part of any branch or
instrumentality of the Government.[27]
In the case at bar, the issuance by the NTC of Memorandum Circular No. 13-6-2000
and its Memorandum dated October 6, 2000 was pursuant to its quasi-legislative or rule-
making power. As such, petitioners were justified in invoking the judicial power of the
Regional Trial Court to assail the constitutionality and validity of the said
issuances. In Drilon v. Lim,[28] it was held:
We stress at the outset that the lower court had jurisdiction to consider the
constitutionality of Section 187, this authority being embraced in the general definition of
the judicial power to determine what are the valid and binding laws by the criterion of their
conformity to the fundamental law. Specifically, B.P. 129 vests in the regional trial courts
jurisdiction over all civil cases in which the subject of the litigation is incapable of pecuniary
estimation, even as the accused in a criminal action has the right to question in his defense
the constitutionality of a law he is charged with violating and of the proceedings taken
against him, particularly as they contravene the Bill of Rights. Moreover, Article X, Section
5(2), of the Constitution vests in the Supreme Court appellate jurisdiction over final
judgments and orders of lower courts in all cases in which the constitutionality or validity
of any treaty, international or executive agreement, law, presidential decree, proclamation,
order, instruction, ordinance, or regulation is in question.[29]
In their complaint before the Regional Trial Court, petitioners averred that the
real estate mortgage may be extrajudicially foreclosed in accordance with Act No. 3135, as
amended.[7]
On the same day, petitioners representative Elvin Reyes went to the office of On June 17, 2002, respondent Aquino filed the Certificate of Redemption
the Ex-Officio Sheriff and inquired how the amount of P5,194,742.50 was arrived executed by the Ex-Officio Sheriff with the Office of the Register of Deeds. The Register of
at. The Ex-Officio Sheriff explained to him that she had accepted the redemption price in Deeds entered the Certificate of Redemption in the Primary Entry Book of Entries under
accordance with the provisions of Entry No. 1205.[28] On even date, the Register of Deeds entered the deed of assignment
R.A. Nos. 8791 and 7353. She further explained that she had furnished petitioner with a executed by respondent PODC in favor of Aquino in the Primary Book of Entries as Entry
copy of the Certificate of Redemption she had earlier executed; however, Reyes refused to No. 1208.
receive a copy of the Certificate of Redemption.[21]
Meanwhile, the Registrar of Deeds was in a quandary; he was not certain
On June 10, 2002, petitioner, through its president Rogelio D. Reyes, executed an whether it was proper for him to issue a new title to petitioner. In a letter [29] dated June 18,
Affidavit of Consolidation[22] over the property. It was alleged therein that respondent 2002, he requested the Administrator of the Land Registration Authority (LRA), by way
PODC or any other person/entity with the right of redemption did not exercise their right of consulta, to issue an opinion on whether a new title should be issued to petitioner, or
to repurchase within one year from June 7, 2001. The affidavit was filed with the Office of the Certificate of Redemption in favor of respondent Aquino should be annotated at the
the Register of Deeds on the same day. The penultimate paragraph reads: dorsal portion of TCT No. 275745-R.
On October 15, 2002, petitioner filed a Petition for a Writ of Possession in the
That the aforesaid Mortgagors nor any other persons or entity entitled RTC of Pampanga. Petitioner alleged that it had purchased the property at public auction as
with the right of redemption did not exercise their right of repurchase evidenced by the Certificate of Sale appended thereto; the Certificate of Sale was
and a period of more than one (1) year from June 7, 2001 has already annotated at the dorsal portion of TCT No. 275745-R on June 7, 2001; as far as he was
elapsed and by reason thereof, the San Fernando Rural Bank, Inc. do concerned, the right of respondent PODC to redeem the property had already expired; and
hereby request the Registry of Deeds of the province of Pampanga, under Act No. 3135, as amended, it is entitled to the possession of the property during or
even after the redemption period. It prayed that the corresponding writ of possession over
after the payment of the lawful fees of this office to cancel Transfer
the property be issued in its favor upon the filing of the requisite bond in an amount
Certificate of Title No. 275745-R and to issue a new Certificate of Title equivalent to the market value of the property or in an amount as the court may
in favor of the San Fernando Rural Bank, Inc.[23] direct.[30] Petitioner appended to its petition a certified true copy of the Certificate of Sale
executed by the Ex-Officio Sheriff in its favor over the property. The case was docketed as
LRC No. 890.
The affidavit was entered in the Registry Book in the Office of the Register of The court set the hearing of the petition at 8:30 a.m. on November 28, 2002 and
Deeds as Entry No. 784. However, no new title was issued in favor of petitioner. sent the corresponding notices to respondent PODC. [31]
In a letter[24] dated June 10, 2002, the Ex-Officio Sheriff informed petitioner that During the hearing, respondent PODC opposed the petition on the following
respondent Aquino had redeemed the property and requested petitioner, through its grounds: petitioner deliberately concealed the fact that the property had been redeemed
president, to turn over the owners duplicate of TCT No. 275745-R before the redemption on June 7, 2002; respondent Aquino had paid P5,194,742.00 as redemption money based
price of P5,194,742.50 would be remitted. She appended to the letter a copy of the on the computation of petitioner; the Ex-Officio Sheriff had executed a Certificate of
Certificate of Redemption she had executed in favor of respondent Aquino. However, Redemption in favor of respondent Aquino on June 7, 2002, a copy of which petitioner
petitioner refused to do so. refused to receive; respondent Aquino, as assignee, had offered to redeem the property on
May 29, 2002 and tendered the amount of P1,588,094.28, but petitioner insisted that the
Meanwhile, the Ex-Officio Sheriff fell ill and failed to report for work up to June redemption price was P16,805,414.71, including the loan account of the spouses Garbes;
14, 2002. She then wrote petitioner, reiterating her request for the delivery of TCT No. that since respondent Aquino had redeemed the property from the Ex-OfficioSheriff on
June 7, 2002 within the one-year period after paying the total amount of P5,194,742.50, it Redemption in favor of the assignee of the debtor-mortgagor, although
was respondent Aquino, and not petitioner, who is entitled to a writ of possession; [32] and admittedly, the latter instrument was executed on the last day of the
that besides, he was already in possession of the property. [33] It insisted that petitioner redemption period but not, in fact, registered within the same period,
filed its petition to preempt the resolution of the LRA on the consulta of the Register of
under the premises, the consolidating mortgagee is possessed with a
Deeds. The oppositor prayed that the petition be denied and that it be granted such other
relief and remedies just and equitable under the premises. superior right than the redemptioner. Under the law, the first in
registration is the first in law.[36]
In its Reply, petitioner averred that since respondent Aquino had offered an
amount short of the redemption price of P16,805,414.71, under Section 47 of R.A. No.
8791 there was no valid redemption of the property. The loan of the spouses Garbes was The dispositive portion of the Resolution of the LRA Administrator reads:
intended for respondent PODC as borrower. Petitioner alleged that it would have been
foolhardy for it to grant a P950,000.00 loan to the spouses without any security. Hence,
unless the entire loan account of respondent PODC and the spouses Garbes WHEREFORE, premises considered, this Authority is of the opinion and
(P16,805,414.71) was paid, the mortgage persisted.[34] It further posited that, since so holds that the Affidavit of Consolidation is superior over the
respondent PODC had already assigned its right to redeem the property, the oppositor had Certificate of Redemption, hence, registrable on TCT No. 275745-R.
no more right or interest over the property; it was thus not the proper party as oppositor.
The court declared that the purpose of the law in requiring the filing of a bond is
Considering that the document first presented and entered in the to answer for the reasonable rental for a period of twelve months for the use of the
Primary Entry Book of the registry is the Affidavit of Consolidation in property during the period of redemption. Since the period of redemption had already
favor of the creditors, the mortgagee bank and not the Certificate of expired, a bond was no longer necessary. Nevertheless, the court granted petitioners
prayer to put up a bond in the amount equivalent to the market value of the property. The of the right of respondent PODC to redeem the property, had the right to do so; (b)
court ruled that petitioner was entitled to the possession of the property, together with whether he had redeemed the property as evidenced by the Certificate of Redemption
improvements existing thereon, as a mere incident of its right of ownership. [38] executed by the Ex-Officio Sheriff; and (c) the redemption price. They insisted that the
obligation of the RTC to issue the writ of possession ceased to be ministerial.
Respondents filed a motion for reconsideration of the order, contending that Respondents maintained that they had the right to redeem the property. Since
petitioner was entitled to a writ of possession after the lapse of the period for redemption there were grave doubts about the parties contentions as to who had the right to possess
only if a Torrens title had been issued in its favor. Since the one-year redemption period the property, the RTC should have dismissed the petition for a writ of possession pending
had lapsed without petitioner having been issued any Torrens title, the court erred when it determination of the substantial issues by the LRA. The trial court should have relied on the
granted the petition for a writ of possession. It also pointed out that petitioner had failed rulings of this Court in Rivero de Ortega v. Natividad,[42] Barican v. Intermediate Appellate
to present any title under its name. Court,[43] and Sulit v. Court of Appeals.[44] Respondents asserted that petitioner was not
entitled to a writ of possession because contrary to Section 7 of Act No. 3135, it posted a
For its part, petitioner stated in its Opposition to respondents motion for bond beyond the period for redemption. The case was docketed as CA-G.R. SP No. 75787.
reconsideration, that it was not necessary that a buyer in a public auction be issued a title
in its name before it could be entitled to a writ of possession upon the expiration of the In its Comment on the petition, petitioner insisted on its right to a writ of
redemption period. The title is merely an evidence of ownership; it is the Certificate of Sale possession and that the trial court acted in accordance with law and the facts of the
that vests ownership in the buyer over the property sold. It insisted that the purchaser was case. Moreover, it averred that the RTC, sitting as a land registration court, had jurisdiction
entitled to the possession of the property even after the lapse of the redemption period.[39] over the petition for a writ of possession; thus, the remedy of respondents was to appeal
the assailed order and not to file a petition for certiorari in the CA.
On February 18, 2003, the court issued an Order denying the motion for
reconsideration of respondents. The court ruled that petitioner, as purchaser at public The CA failed to resolve the plea of respondents for a temporary restraining
auction, acquired the right to possess the property, and the right of the mortgagor from order. Petitioner filed a motion for execution of the December 20, 2002 Order of the trial
the time it purchased the property and not from the issuance of the title over the property court in LRC No. 890. The RTC granted the motion and issued a writ of possession on May
in its name.[40] 14, 2003.[45] The Sheriff implemented the writ and placed petitioner in possession of the
property.
On March 6, 2003, respondents filed a Petition for Certiorari with the CA,
assailing the orders of the RTC as follows: On September 4, 2003, petitioner filed a Complaint[46] against respondents and
the Ex-Officio Sheriff in the RTC of Pampanga, for the nullification of the Deed of
Assignment executed by PODC in favor of Aquino and of the Certificate of Redemption
I. Public respondent committed grave abuse of discretion amounting to executed by the Ex-Officio Sheriff, and for damages with a plea for injunctive
lack or excess of jurisdiction when it granted private respondents relief. Petitioner filed an Amended/Supplemental Complaint and prayed that judgment be
prayer for an issuance of writ of possession in its favor when rendered in its favor, thus:
serious issues affecting private respondents right to possess the
subject lot is still pending determination by the Land Registration WHEREFORE, it is prayed that a judgment be rendered in favor of the
Authority. plaintiff and against the defendants:
II. Public respondent committed grave abuse of discretion amounting a) Annulling the Deed of Assignment dated May 11, 2002 executed by
to lack or excess of jurisdiction when it allowed private and between defendants PODC and AQUINO.
respondent to post a redemption bond beyond the redemption
period.[41]
OTHER RELIEF and remedies just equitable are also prayed for.[47] SO ORDERED.[52]
The case was docketed as Civil Case No. 12785. The appellate court ruled that the December 20, 2002 Order of the RTC granting
the petition for a writ of possession was interlocutory and not final; hence, it may be
questioned only via petition for certiorari under Rule 65 of the Rules of Court, not by
Meanwhile, the LRA Administrator issued a Resolution recalling the Resolution appeal. The CA cited the ruling of this Court in City of Manila v. Serrano.[53]
dated December 12, 2002 and declared that the Certificate of Redemption executed by
the Ex-Officio Sheriff was superior to the Affidavit of Consolidation filed by petitioner.Based The CA further held that the RTC committed grave abuse of discretion amounting
on the June 14, 2002 letter of the Ex-Officio Sheriff and the Certificate of Redemption, to excess or lack of jurisdiction when it granted the application of petitioner for a writ of
respondent Aquino, who was the assignee of respondent PODC, had redeemed the possession. Respondent Aquino, as successor-in-interest of respondent PODC, had
property on June 7, 2002. Petitioner was already aware as early as June 7, 2002 of the redeemed the property on June 7, 2002 in accordance with Section 6 of Act No. 3135, as
redemption of the property by respondent Aquino; hence, the date of registration of the amended, and in relation to Section 27(a), Rule 39 of the Rules of Court. Thus, although the
Certificate of Redemption on June 17, 2002 was of no legal consequence. Certificate of Redemption was not registered before the Register of Deeds, he was entitled
to the possession thereof; the registration of the Certificate of Redemption in the Office of
Accordingly, on September 10, 2003, respondents filed (in LRC No. 890) a Joint the Register of Deeds is merely required to bind third persons. According to the CA,
Motion to quash the writ of possession issued by the trial court and for the issuance of a petitioner may not refuse the redemption by respondent Aquino because the right of
new TCT. They averred that the LRA Administrator finally resolved that the Certificate of petitioner over the property was merely inchoate until after the redemption period had
Redemption issued by the Ex-Officio Sheriff was superior to the Affidavit of Consolidation lapsed without the right being exercised by those allowed by law.
of petitioner. On the basis of the LRA Order, the Register of Deeds issued TCT No. 544978-A
over the property in the name of respondent Aquino as the registered owner. Petitioner moved for the reconsideration of its decision on the ground that,
under Section 47 of R.A. No. 8791, respondent PODC had only up to the registration of the
The court denied the joint motion on November 10, 2003, holding that Certificate of Foreclosure Sale (June 7, 2001) but not more than three (3) months from the
respondent Aquino, as the registered owner of the subject property, should initiate the public auction, whichever is earlier, within which to redeem the property; respondent
appropriate action in the proper court in order to exclude petitioner or any other person PODC, on the other hand, assigned its right to redeem the property on May 11, 2002, long
from the physical possession of his property.[48] The court ruled that after placing petitioner after the redemption period had expired; hence, respondent PODC had no more right to
in possession of the property, the court had lost jurisdiction over the case. assign it to respondent Aquino. Consequently, the latter had no right to redeem the
property, and the Certificate of Redemption executed by the Ex-Officio Sheriff was null and
On November 27, 2003, respondents filed before the CA their Joint Notice of void. Moreover, respondent Aquino failed to pay the correct amount of the redemption
Appeal[49] from the November 10, 2003 Order of the RTC in LRC No. 890. The appeal was price. Petitioner claimed that it acted in good faith when it had its Affidavit of
docketed as CA-G.R. CV No. 81607. Consolidation registered in the Register of Deeds. In sum, petitioner ascribes error on the
part of the CA in nullifying the order of the RTC.
On November 28, 2003, petitioner filed a Manifestation,[50] stating that under
However, the CA denied the motion of petitioner on the ground that by invoking
Section 47 of R.A. No. 8791, it thereby changed its theory on appeal which, as held by this for certiorari. In fact, petitioner asserts, the writ of possession issued by the RTC had
Court in Dalumpines v. Court of Appeals,[54] is prohibited.[55] already been implemented when respondents filed their petition in the CA on December
10, 2003.
Petitioner SFRBI then filed a petition for review on certiorari with this Court for
the reversal of the Decision and Resolution of the CA, and raised the following issues: Petitioner also claims that the assailed order of the RTC was in accordance with
I the law and the Rules of Court; even if it is merely an error of judgment and not a
jurisdictional error, resort to a petition for certiorari was inappropriate. Respondents were,
Whether or not the Court of Appeals seriously erred when it sanctioned thus, proscribed from filing a petition for certiorari in the CA since the appeal was an
the Respondents resort to Certiorari under Rule 65 of the Revised Rules adequate and speedy remedy in the ordinary course of law and, indeed, they appealed the
of Court, questioning a final order and not an interlocutory order of the November 10, 2003 Order of the RTC in LRC No. 890 to the CA in CA-G.R. CV No. 81607. It
had also posted a bond in the RTC to answer for any damages. The ruling of this Court
RTC.
in City of Manila v. Serrano[57] is, therefore, not applicable.
Petitioner further avers that the CA erred in applying Act No. 3135, as amended,
instead of Section 47 of R.A. No. 8791, the General Banking Act of 2000. Respondent PODC
II had the right to redeem the property not later than June 7, 2001. Undisputably,
respondent PODC failed to redeem the property before the registration of the Certificate of
Whether or not the respondents are guilty of forum shopping by taking Sale; hence, when respondent PODC executed the deed of assignment on May 11, 2002 in
both the remedy of appeal and certiorari on the same issues and favor of respondent Aquino, it had no more right to redeem the property.
substantially the same set of facts. Thus, it could not have assigned the right to redeem the property to respondent
Aquino. The latter redeemed the property only on June 7, 2002, long after the Certificate
of Sale was registered on June 7, 2001. Since there was no valid redemption of the
property by respondent Aquino, petitioner claimed that it was entitled to the writ of
III possession of the property. It further insisted that the RTC, acting as a Land Registration
Court, had limited jurisdiction; it had no jurisdiction to resolve the issues on the validity of
Whether or not the Court of Appeals committed serious error when it the deed of assignment and the legality of respondent Aquinos redemption of the
ruled on a matter that was not and could not have been submitted for property, as well as its ownership. Only the RTC in the exercise of its general jurisdiction in
Civil Case No. 12765 (where petitioner assailed the deed of assignment and the Certificate
its adjudication.
of Redemption executed by the Ex-Officio Sheriff) was vested with jurisdiction to resolve
these issues. In resolving these issues, the CA thereby preempted the RTC in Civil Case No.
12765 and deprived it of due process. In any event, according to petitioner, the
IV pronouncement of the CA on the validity of the Deed of Assignment and Certificate of
Redemption was merely an obiter dictum.
Whether or not the Honorable Court is precluded from reviewing the
factual findings of the Court of Appeals. Petitioner posits that the CAs reliance on the rulings of this Court
in Rivero and Barican was erroneous because the right of third parties holding the property
adverse to respondent PODC was not involved. Neither was the pendency of
the consulta of the Register of Deeds in the LRA a bar to the issuance of a writ of
V possession in its favor by the RTC acting as a land registration court.It was the ministerial
duty of the RTC to issue a writ of possession over the property to petitioner as purchaser at
Whether or not the petitioner SAFER Bank, as well as the Honorable the foreclosure sale during and after the redemption period.
Court, is precluded from applying the governing law, under which the
redemption period had clearly expired.[56] Petitioner further maintains that respondents filed their petition for certiorari in
the CA and delineated the issues to be resolved. It did not change its theory in the CA when
it filed its motion for reconsideration of the CA decision. Citing the ruling in Rivera v. Court
of Appeals,[58] petitioner avers that a theory of the case is that which refers to the facts on
which the cause of action is based. The facts are those alleged in the complaint and
On the first issue, petitioner avers that the December 20, 2002 Order of the RTC
satisfactorily proven at the trial. It insists that it did not change the set of facts that it
granting the writ of possession in its favor was final; hence, the remedy of respondents
submitted and presented to the CA. It was not estopped from citing Section 47 of R.A. No.
herein, as oppositors below, was to appeal to the CA and not to file a special civil action
8791. It had posited in the RTC that respondents failed to redeem the property before the the lower court.[61] The remedy to question a final order is appeal under Rule 41 of the
expiration of the redemption period. Besides, as held by this Court in Lianga Lumber Rules of Court.
Company v. Lianga Timber Co., Inc.,[59] a party may change his theory on appeal when the
factual basis thereof would not require presentation of any further evidence by the We agree with petitioners contention that the December 20, 2002 Order of the
adverse party to enable it to properly meet the issue raised in the new theory. The failure RTC granting the petition for a writ of possession is final. The remedy of respondents was
of a party to invoke an applicable law in a given case does not create a vested right, and an to appeal to the CA by filing their notice of appeal within the period therefor. [62] Indeed,
erroneous interpretation does not give rise to estoppel. Even if petitioner did not invoke when the RTC denied on November 10, 2003 the motion of respondents to quash the writ
R.A. No. 8791, it behooved the CA to apply the law before it, prescinding from the theory the court had earlier issued, respondents appealed to the CA under Rule 41 of the Rules of
advocated by the parties. Neither may respondents invoke estoppel. They were aware of Court. The appeal was docketed as CA-G.R. CV No. 81607.Respondents did not file a
the provisions of the law as well as the facts and circumstances warranting the application supplemental petition in CA-G.R. SP No. 75787.
thereof.
The reliance of the CA in City of Manila v. Serrano[63] is misplaced. In that case,
Petitioner also imputes forum shopping to respondents because the latter raised the trial court issued the writ of possession in connection with a complaint for
the issue of possession in both CA-G.R. SP No. 75787 and CA-G.R. CV No. 81607. Petitioner expropriation under Rule 67 of the Rules of Court. Such a writ is interlocutory in
also accuses respondents of using the decision in CA-G.R. SP No. 75787 to support their nature.[64] On the other hand, an order granting a writ of possession under Act No. 3135, as
contention in CA-G.R. CV No. 81607. It further contends that the writ of possession issued amended, is of a different species. The latter order is final, hence, appealable. [65] Even if
by the RTC was void. the trial court erred in granting a petition for a writ of possession, such an error is merely
an error of judgment correctible by ordinary appeal and not by a petition for a writ
For their part, respondents aver that the RTC committed grave abuse of its of certiorari.[66] Such writ cannot be legally used for any other purpose.
discretion in issuing the December 20, 2002 andFebruary 18, 2003 Orders. Hence, the
decision of the CA was in accord with the law and the Rules of Court. They assert that given Certiorari is a remedy narrow in its scope and inflexible in character. It is not a
the circumstances obtaining in this case, their petition for certiorari was proper. Although general utility tool in the legal workshop.[67]Certiorari will issue only to correct errors of
they had the right to appeal the orders of the RTC, the same was not a speedy and jurisdiction and not to correct errors of judgment. An error of judgment is one which the
adequate remedy. They insist that they were not guilty of forum shopping because the only court may commit in the exercise of its jurisdiction, and which error is reviewable only by
issue in CA-G.R. CV No. 81607 was the validity of the Order of the RTC dated November 10, an appeal. Error of jurisdiction is one where the act complained of was issued by the court
2003, which denied their motion to quash the writ of possession. On the other hand, without or in excess of jurisdiction and which error is correctible only by the extraordinary
challenged in CA-G.R. SP No. 75787 was the Order of the RTC granting the petition for a writ of certiorari. As long as the court acts within its jurisdiction, any alleged errors
writ of possession. Since the Ex-OfficioSheriff declared in the Certificate of Redemption committed in the exercise of its discretion will amount to nothing more than mere errors of
that respondent Aquino redeemed the property within the one-year period, petitioner judgment, correctible by an appeal if the aggrieved party raised factual and legal issues; or
was estopped from relying on Section 47 of R.A. No. 8791. Respondents point out that in a petition for review under Rule 45 of the Rules of Court if only questions of law are
the RTC and the CA, petitioner had insisted that respondent Aquino had one (1) year from involved.[68]
June 7, 2001 within which to redeem the property as provided in Act No. 3135, as
amended; thus, petitioner was proscribed from changing the theory it pursued in the RTC A cert writ may be issued if the court or quasi-judicial body issues an order with
and the CA. Moreover, under Section 71 of R.A. No. 8791, redemption by entities of grave abuse of discretion amounting to excess or lack of jurisdiction. Grave abuse of
property mortgaged is governed by R.A. No. 7353, under which the period of redemption is discretion implies such capricious and whimsical exercise of judgment as is equivalent to
one year from the registration of the Certificate of Sale. lack of jurisdiction or, in other words, where the power is exercised in an arbitrary manner
by reason of passion, prejudice, or personal hostility, and it must be so patent or gross as
The Ruling of the Court to amount to an evasion of a positive duty or to a virtual refusal to perform the duty
enjoined or to act at all in contemplation of law.[69] Mere abuse of discretion is not
The petition is meritorious. enough. Moreover, a party is entitled to a writ of certiorari only if there is no appeal nor
any plain, speedy or adequate relief in the ordinary course of law.
The CA erred in holding that the Order of the RTC granting the petition for a writ
of possession was merely interlocutory.Interlocutory orders are those that determine The raison detre for the rule is that when a court exercises its jurisdiction, an error
incidental matters and which do not touch on the merits of the case or put an end to the committed while so engaged does not deprive it of the jurisdiction being exercised when
proceedings. A petition for certiorari under Rule 65 of the Rules of Court is the proper the error was committed. If it did, every error committed by a court would deprive it of its
remedy to question an improvident interlocutory order.[60] On the other hand, a final order jurisdiction and every erroneous judgment would be a void judgment. In such a situation,
is one that disposes of the whole matter or terminates the particular proceedings or action the administration of justice would not survive. Hence, where the issue or question
leaving nothing to be done but to enforce by execution what has been determined. It is involved affects the wisdom or legal soundness of the decision not the jurisdiction of the
one that finally disposes of the pending action so that nothing more can be done with it in court to render said decision the same is beyond the province of a special civil action
for certiorari.
Under Section 8, Act No. 3135, as amended, the debtor-mortgagor may file a The ministerial duty of the RTC to issue a writ of possession does not become
motion to set aside a writ of execution: discretionary simply because the Register of Deeds had elevated in consulta to the LRA the
question of whether the Torrens title should be issued in favor of petitioner whose
Section 8. Setting aside of sale and writ of possession. The debtor may, Affidavit of Consolidation was registered in the Office of the Register of Deeds, or in favor
in the proceedings in which possession was requested, but not later of respondent Aquino who claimed to have redeemed the property on June 7, 2002 as
than thirty days after the purchaser was given possession, petition that gleaned from the Certificate of Redemption of the Ex-Officio Sheriff but registered only on
the sale be set aside and the writ of possession cancelled, specifying the June 17, 2002. Respondent Aquino claimed to have redeemed the property with the
correct redemption price and within the one year period of redemption. The LRA himself
damages suffered by him, because the mortgage was not violated or
admitted that the issue of whether respondent Aquino had remitted the correct
the sale was not made in accordance with the provisions hereof, and redemption price is a matter that should be resolved by the regular courts. [72] The LRA was
the court shall take cognizance of this petition in accordance with the vested with jurisdiction to resolve only the registrability of the Affidavit of Consolidation
summary procedure provided for in section one hundred and twelve of executed by petitioner and the Certificate of Redemption executed by the Ex-
Act Numbered Four hundred and ninety-six; and if it finds the Officio Sheriff.
complaint of the debtor justified, it shall dispose in his favor of all or
We need not rule on the issue of whether respondent Aquino had lawfully
part of the bond furnished by the person who obtained
redeemed the property as provided in Section 47 of R.A. No. 8791. This issue shall be
possession. Either of the parties may appeal from the order of the passed upon by the RTC in Civil Case No. 12785 after the parties present their testimonial
judge in accordance with section fourteen of Act Numbered Four and documentary evidence.
hundred and ninety-six; but the order of possession shall continue in
effect during the pendency of the appeal. IN LIGHT OF ALL THE FOREGOING, the petition is GRANTED. The Decision of the
Court of Appeals is SET ASIDE AND REVERSED. SO ORDERED.
The purchaser may appeal the order to the CA if his petition is denied by the RTC. However,
during the pendency of the appeal, the purchaser must be placed in possession of the
property, such possession being predicated on the right of ownership. [70]
The threshold issue between petitioner and respondents in the RTC was the
correct amount of redemption money under Section 47 of R.A. No. 8791. Respondent
Aquino had the right to file an action against petitioner in the RTC in the exercise of its
general jurisdiction to enforce redemption within the redemption period to preserve its
right to redeem the foreclosed property.[71] It bears stressing that the controversy between
the parties relates to the precise amount of redemption: petitioner contended that, under G.R. No. 167988 February 6, 2007
the real estate mortgage executed by respondent PODC in its favor, the loan account of the
spouses Garbes was secured by the property covered by said deed; on the other hand, MA. CONCEPCION L. REGALADO, Petitioner,
respondents averred that only the loan account of respondent PODC was secured by the vs.
mortgage of its property. Indeed, the parties could have raised the issue of the redemption ANTONIO S. GO, Respondent.
period under the second paragraph of Section 47 of R.A. No. 8791. The provision reads: DECISION
Notwithstanding Act 3135, juridical persons whose property is being CHICO-NAZARIO, J.:
sold pursuant to an extrajudicial foreclosure, shall have the right to This is a Petition for Review on Certiorari under Rule 45 of the Rules of Court, of the
redeem the property in accordance with this provision until, but not Resolution1 dated 30 August 2004 of the Court of Appeals, finding petitioner Ma.
after, the registration of the certificate of foreclosure sale with the Concepcion L. Regalado (Atty. Regalado) guilty of indirect contempt. Likewise assailed in
this petition is the Resolution2 denying her Motion for Reconsideration. The dispositive
applicable Register of Deeds which in no case shall be more than three
portion of the Resolution reads:
(3) months after foreclosure, whichever is earlier. Owners of property
that has been sold in a foreclosure sale prior to the effectivity of this WHEREFORE, Atty. Ma. Concepcion Regalado of De Borja Medialdea Bello Guevarra and
Gerodias Law Offices is declared GUILTY of INDIRECT CONTEMPT and is ordered to pay a
Act shall retain their redemption rights until their expiration.
fine of Five Thousand Pesos (P5,000), with a STERN WARNING that a repetition of the same
or similar acts in the future will be dealt with more severely. The imposed fine should be
paid to this Court upon finality hereof. WHEREFORE, the petition for certiorari is GRANTED. The assailed decision of the NLRC
promulgated on July 30, 2001 and its Order dated December 20, 2001 are SET ASIDE while
Let a copy of this resolution be furnished the Bar Confidant (sic), the Integrated Bar of the
the decision of Labor Arbiter Waldo Emerson R. Gan dated December 29, 2000 declaring
Philippines and the Court Administrator for investigation and possible administrative
the dismissal of [herein respondent Go] as illegal is hereby REINSTATED with the
sanction.3
modification that [EHSI] is hereby Ordered to pay [respondent Go]:
The present controversy stemmed from the complaint of illegal dismissal filed before the
1. His full backwages from the time of his illegal dismissal until the finality of this
Labor Arbiter by herein respondent Antonio S. Go against Eurotech Hair Systems, Inc.
decision;
(EHSI), and its President Lutz Kunack and General Manager Jose E. Barin.
2. Separation pay equal to one month pay for every year of service;
In a Decision4 dated 29 December 2000, the Labor Arbiter ruled that respondent Go was
illegally dismissed from employment, the decretal portion of which reads: 3. Moral damages in the amount of P50,000.00; and
WHEREFORE, premises considered, judgment is hereby rendered as follows: 4. Exemplary damages in the amount of P20,000.00
1. Declaring [EHSI, Kunack and Barin] guilty of illegal dismissal; The award of attorneys fees is DELETED.
2. Considering that reinstatement would not be feasible because of strained EHSI, Kunack and Barin were able to receive a copy of the decision through registered mail
relations, [EHSI, Kunack and Barin] are ordered to pay [herein respondent Go] on 17 July 2003 while respondent Go received his copy on 21 July 2003.9
backwages in the amount of Php900,000.00 (Php60,000 x 15 months), separation
On 16 July 2003, after the promulgation of the Court of Appeals decision but prior to the
pay of Php180,000.00 (one month pay for every year of service = Php60,000 x 3
receipt of the parties of their respective copies, the parties decided to settle the case and
years);
signed a Release Waiver and Quitclaim10 with the approval of the Labor Arbiter. In view of
3. Ordering [EHSI, Kunack and Barin] to pay [respondent Go] Php500,000.00 as the amicable settlement, the Labor Arbiter, on the same day, issued an Order 11 dismissing
moral damages; the illegal dismissal case with prejudice. The order thus reads:
4. Ordering [EHSI, Kunack and Barin] to pay [respondent Go] Php300,000 as In view of the Release, Waiver and Quitclaim voluntarily executed by the [herein
exemplary damages; respondent] Antonio S. Go, let the instant case be as it is hereby DISMISSED WITH
PREJUDICE.
5. Ordering the payment of ten percent (10%) of the total monetary award as
attorneys fees in the sum of Php188,000.00. The execution of the compromise agreement was attended by the counsel for EHSI, Kunack
and Barin, petitioner Atty. Regalado, and respondent Go, but in the absence and without
All other claims are hereby dismissed for lack of merit.
the knowledge of respondent Gos lawyer.12
On appeal to the National Labor Relations Commission (NLRC), EHSI, Kunack and Barin
After the receipt of a copy of the Court of Appeals decision, respondent Go, through
employed the legal services of De Borja Medialdea Bello Guevarra and Gerodias Law
counsel, filed, on 29 July 2003, a Manifestation with Omnibus Motion13 seeking to nullify
Offices where herein petitioner Atty. Regalado worked as an associate.5
the Release Waiver and Quitclaim dated 16 July 2003 on the ground of fraud, mistake or
On 11 June 2001, the NLRC rendered a Decision6 reversing the Labor Arbiters decision and undue influence. In the same motion, respondent Go, through counsel, moved that
declaring that respondent Gos separation from employment was legal for it was attended petitioner Atty. Regalado be made to explain her unethical conduct for directly negotiating
by a just cause and was validly effected by EHSI, Kunack and Barin. The dispositive part of with respondent Go without the knowledge of his counsel. The motion thus prays:
the decision reads:
WHEREFORE, premises considered, it is most respectfully prayed for the Honorable Court
WHEREFORE, the appealed decision is set aside. The complaint below is dismissed for being to declare Null and Void the dismissal of the instant (sic), with prejudice, by Labor (sic)
without merit. Waldo Emerson Gan, as well as the Release Waiver and Quitclaim dated July 16, 2003
For lack of patent or palpable error, the Motion for Reconsideration interposed by signed by [herein respondent Go] for having been obtained through mistake, fraud or
respondent Go was denied by the NLRC in an Order7 dated 20 December 2001. undue influence committed by [EHSI, Kunack and Barin] and their counsels (sic).
Aggrieved, respondent Go elevated the adverse decision to the Court of Appeals which was It is likewise prayed for [EHSI, Kunack and Barins] counsel, particularly Atty. Ma.
docketed as CA-G.R. SP No. 69909 entitled, Antonio S. Go v. National Labor Relations Concepcion Regalado, to be required to explain why no disciplinary action should be taken
Commission, Eurotech Hair Systems, Inc., Lutz Kunack and Jose Barin. against them (sic) for their (sic), unethical conduct of directly negotiating with [respondent
Go] without the presence of undersigned counsel, and for submitting the Release, Waiver
On 9 July 2003, the Court of Appeals promulgated a Decision8 setting aside the ruling of the and Quitclaim before Labor Arbiter Waldo Emerson Gan knowing fully well that the
NLRC and reinstating the decision of the Labor Arbiter adjudging EHSI, Kunack and Barin controversy between [respondent Go] and [EHSI] is still pending before this Honorable
guilty of illegal dismissal. The appellate court thus ordered EHSI, Kunack and Barin to pay Court.
respondent Go full backwages, separation pay, moral and exemplary damages. The fallo of
the decision reads: [Respondent Go] likewise prays for such other relief [as may be] just and equitable under
the premises.14 nonetheless under the obligation to restrain her clients from doing acts that she herself
was prohibited to perform as mandated by Canon 16 of the Canons of Professional Ethics.
For their part, EHSI, Kunack and Barin submitted a Manifestation and Motion with Leave of
However, instead of preventing her clients from negotiating with respondent Go who was
Court15 praying that CA-G.R. SP No. 69909 be considered settled with finality in view of the
unassisted by his counsel, Atty. Regalado actively participated in the consummation of the
amicable settlement among the parties which resulted in the dismissal of respondent Gos
compromise agreement by dealing directly with respondent Go and allowing him to sign
complaint with prejudice in the Labor Arbiters Order dated 16 July 2003.
the Release Waiver and Quitclaim without his lawyer.
In addition, EHSI, Kunack and Barin also filed a Motion for Reconsideration 16 with an ad
Undaunted, petitioner Atty. Regalado filed a Motion for Reconsideration which was also
cautelam that in case of unfavorable action on their foregoing Manifestation and Motion,
denied by the appellate court for lack of merit.20
the appellate court should reconsider its decision dated 9 July 2003.
Hence, this instant Petition for Review on Certiorari,21 raising the following issues:
Acting on the motions, the appellate court issued a Resolution17 on 19 November 2003
annulling the Order of the Labor Arbiter dated 16 July 2003 for lack of jurisdiction. It also I.
denied for lack of merit EHSI, Kunack and Barins Motion for Reconsideration Ad Cautelam.
WHETHER OR NOT THE COURT OF APPEALS COMPLETELY VIOLATED PETITIONERS
In the same resolution, petitioner Atty. Regalado was ordered to explain why she should
CONSTITUTIONAL RIGHTS.
not be cited for contempt of court for violating Canon 9 of the Canons of Professional
Ethics. The decretal portion of the Resolution reads: II.
WHEREFORE, premises considered, the Manifestation with Omnibus Motion is PARTIALLY WHETHER OR NOT THE COURT OF APPEALS TOTALLY DISREGARDED THE MANDATORY
GRANTED. The order of Labor Arbiter Gan dismissing the case with prejudice is hereby PROVISION OF RULE 71 OF THE 1997 RULES OF CIVIL PROCEDURE.
declared NULL and VOID for lack of jurisdiction. [EHSI, Kunack and Barins] counsel, [herein III.
petitioner] Atty. Ma. Concepcion Regalado is ordered to SHOW CAUSE within five (5) days
from receipt of this Resolution why she should not be cited for contempt of court for WHETHER OR NOT THE COURT OF APPEALS COMMITTED A MANIFEST ERROR OF LAW IN
directly negotiating with [herein respondent Go] in violation of Canon 9 of the Canons of RULING THAT PETITIONER IS ESTOPPED FROM CHALLENGING ITS AUTHORITY TO
Professional Ethics. On the other hand, the Motion for Reconsideration Ad Cautelam is ENTERTAIN THE CONTEMPT CHARGES AGAINST HER.
hereby denied for lack of merit. IV.
EHSI, Kunack and Barin thus filed a Petition for Review on Certiorari before this Court, WHETHER OR NOT THE COURT OF APPEALS ACTED WITH GRAVE ABUSE OF DISCRETION
assailing the Court of Appeals decision promulgated on 9 July 2003 and its Resolution dated AMOUNTING TO LACK OR EXCESS OF JURISDICTION IN DISREGARDING THE
19 November 2003, denying their Motion for Reconsideration. The case is cognized by OVERWHELMING EVIDENCE ON RECORD TO EFFECT THAT PETITIONER DID NOT COMMIT
another division of this Court. ANY CONTUMACIOUS CONDUCT.
For her part, petitioner Atty. Regalado submitted a Compliance18 and explained that she V.
never took part in the negotiation for the amicable settlement of the illegal dismissal case
with respondent Go which led to the execution of a compromise agreement by the parties WHETHER OR NOT THE COURT OF APPEALS ACTED WITH GRAVE ABUSE OF DISCRETION
on 16 July 2003. EHSI, Kunack and Barin, through a Mr. Ragay, a former EHSI employee and AND COMMITTED A GROSS MISAPPRECIATION OF FACTS IN FINDING THE PETITIONER
a close ally of respondent Go, were the ones who negotiated the settlement. GUILTY OF INDIRECT CONTEMPT ON THE BASIS OF THE CONFLICTING, UNCORROBORATED,
AND UNVERIFIED ASSERTIONS OF THE RESPONDENT.
Further, petitioner Atty. Regalado maintained that she never met personally respondent
Go, not until 16 July 2003, when the latter appeared before the Labor Arbiter for the Considering that the issues raised herein are both questions of law and fact, and consistent
execution of the Release Waiver and Quitclaim. Petitioner Atty. Regalado claimed that she with our policy that this Court is not a trier of facts, we shall address only the pure
was in fact apprehensive to release the money to respondent Go because the latter cannot questions of law and leave the factual issues, which are supported by evidence, as found by
present any valid identification card to prove his identity. It was only upon the assurance of the appellate court. It is an oft-repeated principle that in the exercise of the Supreme
Labor Arbiter Gan that Antonio S. Go and the person representing himself as such were Courts power of review, the Court is not a trier of facts and does not normally undertake
one and the same, that the execution of the agreement was consummated. the re-examination of the evidence presented by the contending parties during the trial of
the case considering that the findings of facts of the Court of Appeals, if supported by
Considering the circumstances, petitioner Atty. Regalado firmly stood that there was no evidence, are conclusive and binding upon this Court.1awphi1.net22
way that she had directly dealt with respondent Go, to the latters damage and prejudice,
and misled him to enter into an amicable settlement with her client. Contempt of court is a defiance of the authority, justice or dignity of the court; such
conduct as tends to bring the authority and administration of the law into disrespect or to
On 30 August 2004, the Court of Appeals issued a Resolution19 disregarding petitioner Atty. interfere with or prejudice parties litigant or their witnesses during litigation. 23 It is defined
Regalados defenses and adjudging her guilty of indirect contempt under Rule 71 of the as disobedience to the Court by acting in opposition to its authority, justice, and dignity. It
Revised Rules of Court. As declared by the appellate court, even granting arguendo that signifies not only a willful disregard or disobedience of the courts orders, but such conduct
petitioner Atty. Regalado did not participate in the negotiation process, she was as tends to bring the authority of the court and the administration of law into disrepute or
in some manner to impede the due administration of justice.24 punished for contempt.
The power to punish for contempt is inherent in all courts and is essential to the In all other cases, charges for indirect contempt shall be commenced by a verified petition
preservation of order in judicial proceedings and to the enforcement of judgments, orders, with supporting particulars and certified true copies of documents or papers involved
and mandates of the court, and consequently, to the due administration of justice.25 therein, and upon full compliance with the requirements for filing initiatory pleadings for
civil actions in the court concerned. If the contempt charges arose out of or are related to a
Thus, contempt proceedings has a dual function: (1) vindication of public interest by
principal action pending in the court, the petition for contempt shall allege that fact
punishment of contemptuous conduct; and (2) coercion to compel the contemnor to do
but said petition shall be docketed, heard and decided separately, unless the court in its
what the law requires him to uphold the power of the Court, and also to secure the rights
discretion orders the consolidation of the contempt charge and the principal action for
of the parties to a suit awarded by the Court.26
joint hearing and decision. (Emphases supplied.)
In our jurisdiction, the Rules of Court penalizes two types of contempt, namely direct
As can be gleaned above, the provisions of the Rules are unequivocal. Indirect contempt
contempt and indirect contempt. 27
proceedings may be initiated only in two ways: (1) motu proprio by the court; or (2)
Direct contempt is committed in the presence of or so near a court as to obstruct or through a verified petition and upon compliance with the requirements for initiatory
interrupt the proceedings before the same, and includes disrespect toward the court, pleadings. Procedural requirements as outlined must be complied with.
offensive personalities toward others, or refusal to be sworn or answer as a witness, or to
There is no doubt that the complained acts of Atty. Regalado would fall under paragraphs
subscribe an affidavit or deposition when lawfully required to do so.28
(a) and (d) of Section 3, Rule 71, as in fact, she was adjudged guilty of indirect contempt.
On the other hand, Section 3, Rule 71 of the Rules of Court enumerates particular acts But were the proceedings conducted in convicting petitioner done in accordance with law?
which constitute indirect contempt, thus:
In the instant case, the indirect contempt proceedings was initiated by respondent Go
(a) Misbehavior of an officer of a court in the performance of his official duties or through a Manifestation with Omnibus Motion.30 It was based on the aforesaid Motion
in his official transactions; that the appellate court issued a Resolution31dated 19 November 2003, requiring
(b) Disobedience of or resistance to a lawful writ, process, order, or judgment of petitioner Atty. Regalado to show cause why she should not be cited for contempt.
a court, including the act of a person who, after being dispossessed or ejected Clearly, respondent Gos Manifestation with Omnibus Motion was the catalyst which set
from any real property by the judgment or process of any court of competent everything in motion and led to the eventual conviction of Atty. Regalado. It was
jurisdiction, enters or attempts or induces another to enter into or upon such respondent Go who brought to the attention of the appellate court the alleged
real property, for the purpose of executing acts of ownership or possession, or in misbehavior committed by petitioner Atty. Regalado. Without such positive act on the part
any manner disturbs the possession given to the person adjudged to be entitled of respondent Go, no indirect contempt charge could have been initiated at all.
thereto;
Indeed, the appellate court itself, in its Resolution dated 30 August 2004, made categorical
(c) Any abuse of or any unlawful interference with the processes or proceedings findings as to how the contempt charge was initiated, to wit:
of a court not constituting direct contempt under Section 1 of this Rule;
In the present case, [respondents Go] Manifestation With Omnibus Motion which led to
(d) Any improper conduct tending, directly or indirectly, to impede, obstruct, or our 19 November 2003 Resolution requiring Atty. Regalado to explain why she should not
degrade the administration of justice; be cited for contempt, x x x.32
(e) Assuming to be an attorney or an officer of a court, and acting as such without We cannot, therefore, argue that the Court of Appeals on its own initiated the indirect
authority; contempt charge without contradicting the factual findings made by the very same court
(f) Failure to obey a subpoena duly served; which rendered the questioned resolution.
(g) The rescue, or attempted rescue, of a person or property in the custody of an It is true in Leonidas v. Judge Supnet,33 this Court ruled that the contempt proceedings was
officer by virtue of an order or process of a court held by him. considered commenced by the court motu proprio even if the show cause order came after
the filing of the motions to cite for contempt filed by the adverse party. The Decision thus
But nothing in this section shall be so construed as to prevent the court from issuing reads:
process to bring the respondent into court, or from holding him in custody pending such
proceedings. (Emphasis supplied.)29 Thus, independently of the motions filed by the Tamondong Spouses, it was the Pasay MTC
which commenced the contempt proceedings motu proprio. No verified petition is
Section 4, Rule 71 of the same Rules provides how proceedings for indirect contempt required if proceedings for indirect contempt are initiated in this manner, and the absence
should be commenced, thus: of a verified petition does not affect the procedure adopted.
SEC. 4. How proceedings commenced. Proceedings for indirect contempt may be It is true that the Tamondong Spouses did file a Motion To Cite Plaintiff For Contempt Of
initiated motu proprio by the court against which the contempt was committed by an order Court, dated May 17, 2000. In this pleading they prayed that Union Bank be declared in
or any other formal charge requiring the respondent to show cause why he should not be indirect contempt of court for its disobedience to the Pasay MTCs Order dated May 9,
2000. This Order dated May 9, 2000 specifically directed Union Bank to "return xxxx
immediately to the defendants the replevied motor vehicle." However, the Tamondong
Henceforth, except for indirect contempt proceedings initiated motu propio by order of or
Spouses unverified motion dated May 17, 2000 cannot invalidate the contempt
a formal charge by the offended court, all charges shall be commenced by a verified
proceedings because these proceedings were initiated by respondent judge motu proprio
petition with full compliance with the requirements therefore and shall be disposed in
in accordance with Section 4, Rule 71 of the 1997 Rules of Civil Procedure.
accordance with the second paragraph of this section.
This above-cited case, however, has no application in the case at bar for the factual milieu
Time and again we rule that the use of the word "shall" underscores the mandatory
of the cases are different from each other. In Leonidas, there was an order of the court that
character of the Rule. The term "shall" is a word of command, and one which has always or
was utterly violated by Union Bank. Thus, even in the absence of the motion of spouses
which must be given a compulsory meaning, and it is generally imperative or mandatory.37
Tamondong to cite Union Bank in contempt, the court a quo on its own can verily initiate
the action. In the present case, the appellate court could not have acquired knowledge of In Enriquez v. Enriquez,38 this Court applied the word "shall" by giving it mandatory and
petitioner Atty. Regalados misbehavior without respondent Gos Manifestation with imperative import and ruled that non-compliance with the mandatory requirements of the
Omnibus Motion reiterating the alleged deceitful conduct committed by the former. Rules goes into the very authority of the court to acquire jurisdiction over the subject
matter of the case, thus:
Having painstakingly laid down that the instant case was not initiated by the court motu
proprio necessitates us to look into the second mode of filing indirect contempt "However, the 1997 Rules of Civil Procedure, as amended, which took effect on July 1,
proceedings. 1997, now require that appellate docket and other lawful fees must be paid within the
same period for taking an appeal. This is clear from the opening sentence of Section 4, Rule
In cases where the court did not initiate the contempt charge, the Rules prescribe that a
41 of the same rules that, "(W)ithin the period for taking an appeal, the appellant shall pay
verified petition which has complied with the requirements of initiatory pleadings as
to the clerk of court which rendered the judgment or final order appealed from, the full
outlined in the heretofore quoted provision of second paragraph, Section 4, Rule 71 of the
amount of the appellate court docket and other lawful fees."
Rules of Court, must be filed.
xxxx
The manner upon which the case at bar was commenced is clearly in contravention with
the categorical mandate of the Rules. Respondent Go filed a Manifestation with Omnibus Time and again, this Court has consistently held that payment of docket fee within the
Motion, which was unverified and without any supporting particulars and documents. Such prescribed period is mandatory for the perfection of an appeal. Without such payment, the
procedural flaw notwithstanding, the appellate court granted the motion and directed appellate court does not acquire jurisdiction over the subject matter of the action and the
petitioner Atty. Regalado to show cause why she should not be cited for contempt. Upon decision sought to be appealed from becomes final and executory.39(Emphases supplied.)
petitioner Atty. Regalados compliance with the appellate courts directive, the tribunal In United States v. de la Santa,40 which bears parallelism in the instant case, we held:
proceeded in adjudging her guilty of indirect contempt and imposing a penalty of fine,
completely ignoring the procedural infirmities in the commencement of the indirect The objection in this case is not, strictly speaking, to the sufficiency of the complaint, but
contempt action. goes directly to the jurisdiction of the court over the crime with which the accused was
charged. x x x. (Emphasis supplied.)
It bears to stress that the power to punish for contempt is not limitless. It must be used
sparingly with caution, restraint, judiciousness, deliberation, and due regard to the Even if the contempt proceedings stemmed from the main case over which the court
provisions of the law and the constitutional rights of the individual. 34 already acquired jurisdiction, the Rules direct that the petition for contempt be treated
independently of the principal action. Consequently, the necessary prerequisites for the
The limitations in the exercise of the power to punish for indirect contempt are delineated filing of initiatory pleadings, such as the filing of a verified petition, attachment of a
by the procedural guidelines specified under Section 4, Rule 71 of the Rules of Court. Strict certification on non-forum shopping, and the payment of the necessary docket fees, must
compliance with such procedural guidelines is mandatory considering that proceedings be faithfully observed.41
against person alleged to be guilty of contempt are commonly treated as criminal in
nature.35 We now proceed to the issue of estoppel raised by the Court of Appeals. When petitioner
Atty. Regalado brought to the attention of the appellate court through a Motion for
As explained by Justice Florenz Regalado,36 the filing of a verified petition that has Reconsideration the remedial defect attendant to her conviction, the Court of Appeals,
complied with the requirements for the filing of initiatory pleading, is mandatory, and thus instead of rectifying the palpable and patent procedural error it earlier committed,
states: altogether disregarded the glaring mistake by interposing the doctrine of estoppel. The
1. This new provision clarifies with a regularity norm the proper procedure for commencing appellate court ruled that having actively participated in the contempt proceedings,
contempt proceedings. While such proceeding has been classified as special civil action petitioner Atty. Regalado is now barred from impugning the Court of Appeals jurisdiction
under the former Rules, the heterogenous practice tolerated by the courts, has been for over her contempt case citing the case of People v. Regalario.42
any party to file a motion without paying any docket or lawful fees therefore and without We do not agree.
complying with the requirements for initiatory pleadings, which is now required in the
second paragraph of this amended section. Laches is defined as the "failure or neglect for an unreasonable and unexplained length of
time, to do that which, by exercising due diligence, could or should have been done earlier,
it is negligence or omission to assert a right within a reasonable length of time, warranting
a presumption that the party entitled to assert it either has abandoned it or declined to
assert it."43
The ruling in People v. Regalario44 that was based on the landmark doctrine enunciated in
Tijam v. Sibonghanoy45 on the matter of jurisdiction by estoppel is the exception rather
than the rule. Estoppel by laches may be invoked to bar the issue of lack of jurisdiction only
in cases in which the factual milieu is analogous to that in the cited case. In such
controversies, laches should have been clearly present; that is, lack of jurisdiction must
have been raised so belatedly as to warrant the presumption that the party entitled to
assert it had abandoned or declined to assert it.46
In Sibonghanoy,47 the defense of lack of jurisdiction was raised for the first time in a motion
to dismiss filed by the Surety48 almost 15 years after the questioned ruling had been
rendered.49 At several stages of the proceedings, in the court a quo as well as in the Court
of Appeals, the Surety invoked the jurisdiction of the said courts to obtain affirmative relief
and submitted its case for final adjudication on the merits. It was only when the adverse
decision was rendered by the Court of Appeals that it finally woke up to raise the question
of jurisdiction.50
Clearly, the factual settings attendant in Sibonghanoy are not present in the case at bar.
Petitioner Atty. Regalado, after the receipt of the Court of Appeals resolution finding her
guilty of contempt, promptly filed a Motion for Reconsideration assailing the said courts
jurisdiction based on procedural infirmity in initiating the action. Her compliance with the
appellate courts directive to show cause why she should not be cited for contempt and
filing a single piece of pleading to that effect could not be considered as an active
participation in the judicial proceedings so as to take the case within the milieu
of Sibonghanoy. Rather, it is the natural fear to disobey the mandate of the court that
could lead to dire consequences that impelled her to comply.
The provisions of the Rules are worded in very clear and categorical language. In case
Republic of the Philippines
where the indirect contempt charge is not initiated by the courts, the filing of a verified
petition which fulfills the requirements on initiatory pleadings is a prerequisite. Beyond
Supreme Court
question now is the mandatory requirement of a verified petition in initiating an indirect
contempt proceeding. Truly, prior to the amendment of the 1997 Rules of Civil Procedure,
Baguio City
mere motion without complying with the requirements for initiatory pleadings was
tolerated by the courts.51 At the onset of the 1997 Revised Rules of Civil Procedure,
however, such practice can no longer be countenanced.
Evidently, the proceedings attendant to the conviction of petitioner Atty. Regalado for
indirect contempt suffered a serious procedural defect to which this Court cannot close its
eyes without offending the fundamental principles enunciated in the Rules that we, THIRD DIVISION
ourselves, had promulgated.
The other issues raised on the merits of the contempt case have become moot and
academic.
WHEREFORE, premises considered, the instant Petition is GRANTED. The indirect contempt
proceedings before the Court of Appeals is DECLARED null and void. COSCO PHILIPPINES SHIPPING, INC., G.R. No. 179488
SO ORDERED. Petitioner,
Present: (owned by Genosi, Inc.), which was loaded at a port in Brisbane, Australia, for shipment to
Genosi, Inc. (the importer-consignee) in the Philippines. However, upon arrival at the
Manila port, a portion of the shipment was rejected by Genosi, Inc. by reason of spoilage
arising from the alleged temperature fluctuations of petitioner's reefer containers.
VELASCO, JR., J., Chairperson,
Thus, Genosi, Inc. filed a claim against both petitioner shipping company and
- versus - PERALTA, respondent Kemper Insurance Company. The claim was referred to McLarens Chartered for
investigation, evaluation, and adjustment of the claim. After processing the claim
ABAD, documents, McLarens Chartered recommended a settlement of the claim in the amount of
$64,492.58, which Genosi, Inc. (the consignee-insured) accepted.
MENDOZA, and
PERLAS-BERNABE, JJ. Thereafter, respondent paid the claim of Genosi, Inc. (the insured) in the amount of
$64,492.58. Consequently, Genosi, Inc., through its General Manager, Avelino S. Mangahas,
KEMPER INSURANCE COMPANY, Jr., executed a Loss and Subrogation Receipt[3] dated September 22, 1999, stating that
Genosi, Inc. received from respondent the amount of $64,492.58 as the full and final
satisfaction compromise, and discharges respondent of all claims for losses and expenses
Respondent. Promulgated:
sustained by the property insured, under various policy numbers, due to spoilage brought
about by machinery breakdown which occurred on October 25, November 7 and 10, and
December 5, 14, and 18, 1998; and, in consideration thereof, subrogates respondent to the
claims of Genosi, Inc. to the extent of the said amount. Respondent then made demands
April 23, 2012
upon petitioner, but the latter failed and refused to pay the said amount.
Hence, on October 28, 1999, respondent filed a Complaint for Insurance Loss and
Damages[4] against petitioner before the trial court, docketed as Civil Case No. 99-95561,
entitled Kemper Insurance Company v. Cosco Philippines Shipping, Inc. Respondent alleged
that despite repeated demands to pay and settle the total amount of US$64,492.58,
representing the value of the loss, petitioner failed and refused to pay the same, thereby
DECISION causing damage and prejudice to respondent in the amount of US$64,492.58; that the loss
and damage it sustained was due to the fault and negligence of petitioner, specifically, the
PERALTA, J.: fluctuations in the temperature of the reefer container beyond the required setting which
was caused by the breakdown in the electronics controller assembly; that due to the
unjustified failure and refusal to pay its just and valid claims, petitioner should be held
liable to pay interest thereon at the legal rate from the date of demand; and that due to
This is a petition for review on certiorari under Rule 45 of the Rules of Court the unjustified refusal of the petitioner to pay the said amount, it was compelled to engage
seeking to reverse and set aside the Decision[1] and Resolution[2] of the Court of Appeals the services of a counsel whom it agreed to pay 25% of the whole amount due as
(CA), in CA-G.R. CV No. 75895, entitled Kemper Insurance Company v. Cosco Philippines attorney's fees. Respondent prayed that after due hearing, judgment be rendered in its
Shipping, Inc. The CA Decision reversed and set aside the Order dated March 22, 2002 of favor and that petitioner be ordered to pay the amount of US$64,492.58, or its equivalent
the Regional Trial Court (RTC), Branch 8, Manila, which granted the Motion to Dismiss filed in Philippine currency at the prevailing foreign exchange rate, or a total of P2,594,513.00,
by petitioner Cosco Philippines Shipping, Inc., and ordered that the case be remanded to with interest thereon at the legal rate from date of demand, 25% of the whole amount due
the trial court for further proceedings. as attorney's fees, and costs.
The antecedents are as follows:
In its Answer[5] dated November 29, 1999, petitioner insisted, among others, that
Respondent Kemper Insurance Company is a foreign insurance company based in respondent had no capacity to sue since it was doing business in the Philippines without
Illinois, United States of America (USA) with no license to engage in business in the the required license; that the complaint has prescribed and/or is barred by laches; that no
Philippines, as it is not doing business in the Philippines, except in isolated transactions; timely claim was filed; that the loss or damage sustained by the shipments, if any, was due
while petitioner is a domestic shipping company organized in accordance with Philippine to causes beyond the carrier's control and was due to the inherent nature or insufficient
laws. packing of the shipments and/or fault of the consignee or the hired stevedores or arrastre
operator or the fault of persons whose acts or omissions cannot be the basis of liability of
In 1998, respondent insured the shipment of imported frozen boneless beef the carrier; and that the subject shipment was discharged under required temperature and
was complete, sealed, and in good order condition. forum shopping on its behalf. Petitioner submits that since respondent is a juridical entity,
the signatory in the complaint must show proof of his or her authority to sign on behalf of
During the pre-trial proceedings, respondent's counsel proffered and marked its the corporation. Further, the SPA[14]dated May 11, 2000, submitted by Atty. Lat, which was
exhibits, while petitioner's counsel manifested that he would mark his client's exhibits on notarized before the Consulate General of Chicago, Illinois, USA, allegedly authorizing him
the next scheduled pre-trial. However, on November 8, 2001, petitioner filed a Motion to to represent respondent in the pre-trial and other stages of the proceedings was signed by
Dismiss,[6] contending that the same was filed by one Atty. Rodolfo A. Lat, who failed to one Brent Healy (respondent's underwriter), who lacks authorization from its board of
show his authority to sue and sign the corresponding certification against forum directors.
shopping. It argued that Atty. Lat's act of signing the certification against forum shopping In its Comment, respondent admitted that it failed to attach in the complaint a concrete
was a clear violation of Section 5, Rule 7 of the 1997 Rules of Court. proof of Atty. Lat's authority to execute the certificate of non-forum shopping on its behalf.
However, there was subsequent compliance as respondent submitted an authenticated
In its Order[7] dated March 22, 2002, the trial court granted petitioner's Motion to SPA empowering Atty. Lat to represent it in the pre-trial and all stages of the proceedings.
Dismiss and dismissed the case without prejudice, ruling that it is mandatory that the Further, it averred that petitioner is barred by laches from questioning the purported
certification must be executed by the petitioner himself, and not by counsel. Since defect in respondent's certificate of non-forum shopping.
respondent's counsel did not have a Special Power of Attorney (SPA) to act on its behalf,
hence, the certification against forum shopping executed by said counsel was fatally The main issue in this case is whether Atty. Lat was properly authorized by respondent to
defective and constituted a valid cause for dismissal of the complaint. sign the certification against forum shopping on its behalf.
Respondent's Motion for Reconsideration[8] was denied by the trial court in an The petition is meritorious.
Order[9] dated July 9, 2002. We have consistently held that the certification against forum shopping must be signed by
the principal parties.[15] If, for any reason, the principal party cannot sign the petition, the
On appeal by respondent, the CA, in its Decision[10] dated March 23, 2007, reversed and set one signing on his behalf must have been duly authorized.[16] With respect to a
aside the trial court's order. The CA ruled that the required certificate of non-forum corporation, the certification against forum shopping may be signed for and on its behalf,
shopping is mandatory and that the same must be signed by the plaintiff or principal party by a specifically authorized lawyer who has personal knowledge of the facts required to be
concerned and not by counsel; and in case of corporations, the physical act of signing may disclosed in such document.[17] A corporation has no power, except those expressly
be performed in behalf of the corporate entity by specifically authorized individuals. conferred on it by the Corporation Code and those that are implied or incidental to its
However, the CA pointed out that the factual circumstances of the case warranted the existence. In turn, a corporation exercises said powers through its board of directors
liberal application of the rules and, as such, ordered the remand of the case to the trial and/or its duly authorized officers and agents. Thus, it has been observed that the power
court for further proceedings. of a corporation to sue and be sued in any court is lodged with the board of directors that
Petitioner's Motion for Reconsideration[11] was later denied by the CA in the exercises its corporate powers. In turn, physical acts of the corporation, like the signing of
Resolution[12] dated September 3, 2007. documents, can be performed only by natural persons duly authorized for the purpose by
corporate by-laws or by a specific act of the board of directors.[18]
Hence, petitioner elevated the case to this Court via Petition for Review on Certiorari under
Rule 45 of the Rules of Court, with the following issues: In Philippine Airlines, Inc. v. Flight Attendants and Stewards Association of the
THE COURT OF APPEALS SERIOUSLY ERRED IN RULING THAT ATTY. RODOLFO LAT WAS Philippines (FASAP),[19] we ruled that only individuals vested with authority by a
PROPERLY AUTHORIZED BY THE RESPONDENT TO SIGN THE CERTIFICATE AGAINST FORUM valid board resolution may sign the certificate of non-forum shopping on behalf of a
SHOPPING DESPITE THE UNDISPUTED FACTS THAT: corporation. We also required proof of such authority to be presented. The petition is
subject to dismissal if a certification was submitted unaccompanied by proof of the
A) THE PERSON WHO EXECUTED THE SPECIAL POWER OF ATTORNEY (SPA) APPOINTING signatory's authority
ATTY. LAT AS RESPONDENT'S ATTORNEY-IN-FACT WAS MERELY AN UNDERWRITER OF THE
RESPONDENT WHO HAS NOT SHOWN PROOF THAT HE WAS AUTHORIZED BY THE BOARD In the present case, since respondent is a corporation, the certification must be executed
OF DIRECTORS OF RESPONDENT TO DO SO. by an officer or member of the board of directors or by one who is duly authorized by a
resolution of the board of directors; otherwise, the complaint will have to be
B) THE POWERS GRANTED TO ATTY. LAT REFER TO [THE AUTHORITY TO REPRESENT dismissed.[20] The lack of certification against forum shopping is generally not curable by
DURING THE] PRE-TRIAL [STAGE] AND DO NOT COVER THE SPECIFIC POWER TO SIGN THE mere amendment of the complaint, but shall be a cause for the dismissal of the case
CERTIFICATE.[13] without prejudice.[21] The same rule applies to certifications against forum shopping signed
by a person on behalf of a corporation which are unaccompanied by proof that said
signatory is authorized to file the complaint on behalf of the corporation.[22]
Petitioner alleged that respondent failed to submit any board resolution or secretary's
certificate authorizing Atty. Lat to institute the complaint and sign the certificate of non- There is no proof that respondent, a private corporation, authorized Atty. Lat, through a
board resolution, to sign the verification and certification against forum shopping on its necessitate the relaxation of the rules. There was no proof of authority submitted, even
behalf. Accordingly, the certification against forum shopping appended to the complaint is belatedly, to show subsequent compliance with the requirement of the law. Neither was
fatally defective, and warrants the dismissal of respondent's complaint for Insurance Loss there a copy of the board resolution or secretary's certificate subsequently submitted to
and Damages (Civil Case No. 99-95561) against petitioner. the trial court that would attest to the fact that Atty. Lat was indeed authorized to file said
complaint and sign the verification and certification against forum shopping, nor did
In Republic v. Coalbrine International Philippines, Inc.,[23] the Court respondent satisfactorily explain why it failed to comply with the rules. Thus, there exists
cited instances wherein the lack of authority of the person making the no cogent reason for the relaxation of the rule on this matter. Obedience to the
requirements of procedural rules is needed if we are to expect fair results therefrom, and
certification of non-forum shopping was remedied through subsequent utter disregard of the rules cannot justly be rationalized by harking on the policy of liberal
compliance by the parties therein. Thus construction.[25]
,
[w]hile there were instances where we have allowed the filing of a Moreover, the SPA dated May 11, 2000, submitted by respondent allegedly authorizing
certification against non-forum shopping by someone on behalf of Atty. Lat to appear on behalf of the corporation, in the pre-trial and all stages of the
proceedings, signed by Brent Healy, was fatally defective and had no evidentiary value. It
a corporation without the accompanying proof of authority at the
failed to establish Healy's authority to act in behalf of respondent, in view of the absence
time of its filing, we did so on the basis of a special circumstance or
of a resolution from respondent's board of directors or secretary's certificate proving the
compelling reason. Moreover, there was a subsequent compliance same. Like any other corporate act, the power of Healy to name, constitute, and appoint
by the submission of the proof of authority attesting to the fact Atty. Lat as respondent's attorney-in-fact, with full powers to represent respondent in the
that the person who signed the certification was duly authorized. proceedings, should have been evidenced by a board resolution or secretary's certificate.
In China Banking Corporation v. Mondragon International Respondent's allegation that petitioner is estopped by laches from
Philippines, Inc., the CA dismissed the petition filed by China Bank, raising the defect in respondent's certificate of non-forum shopping does
since the latter failed to show that its bank manager who signed not hold water.
the certification against non-forum shopping was authorized to do
so. We reversed the CA and said that the case be decided on the In Tamondong v. Court of Appeals,[26] we held that if a complaint is filed for and in
merits despite the failure to attach the required proof of authority, behalf of the plaintiff who is not authorized to do so, the complaint is not deemed filed. An
since theboard resolution which was subsequently attached unauthorized complaint does not produce any legal effect. Hence, the court shoulddismiss
recognized the pre-existing status of the bank manager as an the complaint on the ground that it has no jurisdiction over the complaint and the
plaintiff.[27] Accordingly, since Atty. Lat was not duly authorized by respondent to file the
authorized signatory.
complaint and sign the verification and certification against forum shopping, the complaint
is considered not filed and ineffectual, and, as a necessary consequence, is dismissable due
to lack of jurisdiction.
In Abaya Investments Corporation v. Merit Philippines,
where the complaint before the Metropolitan Trial Court of Manila Jurisdiction is the power with which courts are invested for administering justice;
was instituted by petitioner's Chairman and President, Ofelia that is, for hearing and deciding cases. In order for the court to have authority to dispose of
Abaya, who signed the verification and certification against non- the case on the merits, it must acquire jurisdiction over the subject matter and the
forumshopping without proof of authority to sign for the parties.Courts acquire jurisdiction over the plaintiffs upon the filing of the complaint, and
to be bound by a decision, a party should first be subjected to the
corporation, we also relaxed the rule. We did so taking into
court's jurisdiction.[28] Clearly, since no valid complaint was ever filed with the RTC, Branch
consideration the merits of the case and to avoid a re-litigation of
8, Manila, the same did not acquire jurisdiction over the person of respondent.
the issues and further delay the administration of justice, since the
case had already been decided by the lower courts on the merits. Since the court has no jurisdiction over the complaint and respondent, petitioner is not
Moreover, Abaya's authority to sign the certification was ratified by estopped from challenging the trial court's jurisdiction, even at the pre-trial stage of the
the Board.[24] proceedings. This is so because the issue of jurisdiction may be raised at any stage of the
proceedings, even on appeal, and is not lost by waiver or by estoppel.[29]
The ruling in People v. Regalario that was based on the landmark THIRD DIVISION
doctrine enunciated in Tijam v. Sibonghanoy on the matter of
jurisdiction by estoppel is the exception rather than the rule. Estoppel APOLONIA BANAYAD FRIANELA, G.R. No. 169700
by laches may be invoked to bar the issue of lack of jurisdiction only in Petitioner,
cases in which the factual milieu is analogous to that in the cited case. Present:
In such controversies, laches should have been clearly present; that is,
YNARES-SANTIAGO, J.,
lack of jurisdiction must have been raised so belatedly as to warrant the
- versus - Chairperson,
presumption that the party entitled to assert it had abandoned or CHICO-NAZARIO,
declined to assert it. VELASCO, JR.,
NACHURA, and
SERVILLANO BANAYAD, JR., PERALTA, JJ.
In Sibonghanoy, the defense of lack of jurisdiction was raised for the Respondent.
first time in a motion to dismiss filed by the Surety almost 15 years Promulgated:
after the questioned ruling had been rendered. At several stages of the
July 30, 2009
proceedings, in the court a quo as well as in the Court of Appeals, the
Surety invoked the jurisdiction of the said courts to obtain affirmative DECISION
relief and submitted its case for final adjudication on the merits. It was
only when the adverse decision was rendered by the Court of Appeals
NACHURA, J.:
that it finally woke up to raise the question of jurisdiction.[32]
Before the court is a petition for review on certiorari under Rule 45 of the Rules
of Court assailing the June 17, 2005 Decision[1] of the Court of Appeals (CA) in CA-G.R. CV
No. 53929, and the August 17, 2005 Resolution[2] denying the motion for partial
The factual setting attendant in Sibonghanoy is not similar to that of the present case so as
reconsideration thereof.
to make it fall under the doctrine ofestoppel by laches. Here, the trial court's jurisdiction
was questioned by the petitioner during the pre-trial stage of the proceedings, and it
Narrated in brief are the antecedent facts and proceedings, to wit:
cannot be said that considerable length of time had elapsed for laches to attach.
WHEREFORE, the petition is GRANTED. The Decision and the Resolution of the Following the death of her uncle, the testator Moises F. Banayad, petitioner, who
was named as devisee in the will, filed before the Regional Trial Court (RTC) of Pasay City,
Court of Appeals, dated March 23, 2007 and September 3, 2007, respectively, in CA-G.R. CV
on June 3, 1991, Sp. Proc. No. 3664-P[3] for the allowance of the November 18, 1985
No. 75895 are REVERSED and SET ASIDE. The Orders of the Regional Trial Court, dated
holographic will of the decedent. Petitioner alleged that Moises died without issue and left
March 22, 2002 and July 9, 2002, respectively, in Civil Case No. 99-95561, are REINSTATED.
to her the following properties, namely: (1) a parcel of land situated in Pasay City and
described in Transfer Certificate of Title No. 9741; (2) images of Oracion del
Huerto and Pieta including the crown; and (3) all personal belongings.[4]
SO ORDERED.
Respondent, a cousin of the petitioner, filed his opposition and counter-
petitioned for the allowance of two other holographic wills of the decedent, one dated
September 27, 1989 and another dated September 28, 1989.[5] remedies in proper cases, where the demand does
not exceed twenty thousand pesos exclusive of
After trial on the merits, the RTC, on September 29, 1995, rendered its interest and costs but inclusive of damages of
Decision[6] declaring the September 27, 1989 holographic will as having revoked the whatever kind, the amount of which must be
November 18, 1985 will, allowing the former, and appointing respondent as administrator specifically alleged: Provided, That where there are
of Moisess estate.[7] several claims or causes of action between the
same or different parties, embodied in the same
On appeal, the CA, in the assailed June 17, 2005 Decision,[8] modified the decision complaint, the amount of the demand shall be the
of the trial court and ruled that the September 27, 1989 holographic will had only revoked totality of the claims in all the causes of action
the November 18, 1985 will insofar as the testamentary disposition of Moisess real irrespective of whether the causes of action arose
property was concerned.[9] out of the same or different transactions; and
With the denial of her motion for reconsideration in the further assailed August xxxx
17, 2005 Resolution,[10] petitioner elevated the case before us via the instant petition.[11]
The Court notes that the trial court focused all of its attention on the merits of The applicable law, therefore, confers jurisdiction on the RTC or the MTCs over
the case without first determining whether it could have validly exercised jurisdiction to probate proceedings depending on the gross value of the estate,[16] which value must be
hear and decide Sp. Proc. No. 3664-P. On appeal, the appellate court also overlooked the alleged in the complaint or petition to be filed. Significantly, in this case, the original
issue on the jurisdictional competence of the trial court over the said case. This Court, after petition docketed before the trial court contains only the following averments:
a meticulous review of the records, finds that the RTC of Pasay City had no jurisdiction over xxxx
the subject matter in Sp. Proc. No. 3664-P.
1. That Petitioner is of legal age, married, Filipino and residing
The jurisdiction of the court to hear and decide a case is conferred by the law in at 2237 P. Burgos St., Pasay City who is named devisee in the Last Will
force at the time of the institution of the action unless such statute provides for a and Testament of MOISES BANAYAD, deceased who died in Pasay City
retroactive application thereof.[12] Jurisdiction is moreover determined by the allegations General Hospital on March 27, 1991 xerox copy of his death certificate
or averments in the complaint or petition.[13] is herewith attached as Annex A to form integral part hereof;
In this case, at the time the petition for the allowance of Moisess holographic will 2. That the said Last Will and Testament is herewith (sic)
was instituted, the then Sections 19 and 33[14] of Batas Pambansa (B.P.) Blg. 129[15] were in attached as Annex B and made an integral part of this Petition, the
force, thus original thereof will be presented to this Honorable Court at the time of
probate;
SECTION 19. Jurisdiction in civil cases. Regional Trial Courts shall
exercise exclusive original jurisdiction: 3. That the decedent is an inhabitant of the Philippines and
residing at 2237 P. Burgos St., Pasay City at the time of his death;
xxxx
4. That the properties left by the decedent consist of real and
(4) In all matters of probate, both testate personal properties particularly described herein below, which
and intestate, where the gross value of the estate decedent all bequeathed to petitioner;
exceeds twenty thousand pesos (P20,000.00);
A. A parcel of land described under TCT
xxxx No. 9741 xerox copy of which is herewith (sic)
attached as Annex C.
SECTION 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and B. Imahen ng Oracion del Huerto at Pieta,
Municipal Circuit Trial Courts in civil cases. Metropolitan Trial Courts, kasama and korona.
Municipal Trial Courts, and Municipal Circuit Trial Courts shall exercise: C. All personal belongings.
5. That the testator at the time of the execution of the said
(1) Exclusive original jurisdiction over civil Will was of sound and disposing mind.
actions and probate proceedings, testate and
intestate, including the grant of provisional WHEREFORE, it is most respectfully prayed of the Honorable
Court that: After being duly served with summons the defendants filed
a. Upon proper notice and hearing, the above mentioned Will their answer in which, after making some admissions and denials of the
be admitted to probate; material averments of the complaint, they interposed a counterclaim.
b. That letters testamentary or administration be issued to This counterclaim was answered by the plaintiffs.
herein petitioner without bond;
After trial upon the issues thus joined, the Court rendered
Petitioner prays for such other reliefs just and equitable in judgment in favor of the plaintiffs and, after the same had become final
(sic) the premises. and executory, upon motion of the latter, the Court issued a writ of
execution against the defendants. The writ having been returned
x x x x[17] unsatisfied, the plaintiffs moved for the issuance of a writ of execution
against the Surety's bond (Rec. on Appeal pp. 46-49), against which the
Surety filed a written opposition (Id. pp. 49) upon two grounds, namely,
Nowhere in the petition is there a statement of the gross value of Moisess estate. (1) Failure to prosecute and (2) Absence of a demand upon the Surety
Thus, from a reading of the original petition filed, it cannot be determined which court has for the payment of the amount due under the judgment. Upon these
original and exclusive jurisdiction over the proceedings. [18] The RTC therefore committed grounds the Surety prayed the Court not only to deny the motion for
gross error when it had perfunctorily assumed jurisdiction despite the fact that the execution against its counter-bond but also the following affirmative
initiatory pleading filed before it did not call for the exercise of its jurisdiction. The RTC relief: "to relieve the herein bonding company of its liability, if any,
should have, at the outset, dismissed the case for lack of jurisdiction. Be it noted that the under the bond in question" (Id. p. 54) The Court denied this motion on
dismissal on the said ground may be ordered motu proprio by the courts.[19] Further, the the ground solely that no previous demand had been made on the
CA, on appeal, should have dismissed the case on the same ground. Settled is the doctrine Surety for the satisfaction of the judgment. Thereafter the necessary
that the issue of jurisdiction may be raised by any of the parties or may be reckoned by the demand was made, and upon failure of the Surety to satisfy the
court, at any stage of the proceedings, even on appeal, and is not lost by waiver or by judgment, the plaintiffs filed a second motion for execution against the
estoppel.[20] counter-bond. On the date set for the hearing thereon, the Court, upon
motion of the Surety's counsel, granted the latter a period of five days
Despite the pendency of this case for around 18 years, the exception laid down within which to answer the motion. Upon its failure to file such answer,
in Tijam v. Sibonghanoy[21] and clarified recently in Figueroa v. People[22] cannot be applied. the Court granted the motion for execution and the corresponding writ
First, because, as a general rule, the principle of estoppel by laches cannot lie against the was issued.
government.[23] No injustice to the parties or to any third person will be wrought by the
ruling that the trial court has no jurisdiction over the instituted probate proceedings. Subsequently, the Surety moved to quash the writ on the
ground that the same was issued without the required summary
Second and most important, because in Tijam, the delayed invocation of lack of hearing provided for in Section 17 of Rule 59 of the Rules of Court. As
jurisdiction has been made during the execution stage of a final and executory ruling of a the Court denied the motion, the Surety appealed to the Court of
court. In Figueroa, the Court has emphasized that estoppel by laches only supervenes in Appeals from such order of denial and from the one denying its motion
exceptional cases similar to the factual milieu in Tijam. It is well to note the following for reconsideration (Id. p. 97). Its record on appeal was then printed as
factual setting of Tijam: required by the Rules, and in due time it filed its brief raising therein no
other question but the ones covered by the following assignment of
On July 19, 1948 barely one month after the effectivity of errors:
Republic Act No. 296 known as the Judiciary Act of 1948 the spouses
Serafin Tijam and Felicitas Tagalog commenced Civil Case No. R-660 in I. That the Honorable Court a quo erred in
the Court of First Instance of Cebu against the spouses Magdaleno issuing its order dated November 2, 1957, by
Sibonghanoy and Lucia Baguio to recover from them the sum of holding the incident as submitted for resolution,
P1,908.00, with legal interest thereon from the date of the filing of the without a summary hearing and compliance with
complaint until the whole obligation is paid, plus costs. As prayed for in the other mandatory requirements provided for in
the complaint, a writ of attachment was issued by the court against Section 17, Rule 59 of the Rules of Court.
defendants' properties, but the same was soon dissolved upon the II. That the Honorable Court a quo erred
filing of a counter-bond by defendants and the Manila Surety and in ordering the issuance of execution against the
Fidelity Co., Inc. hereinafter referred to as the Surety, on the 31st of the herein bonding company-appellant.
same month. III. That the Honorable Court a quo erred
in denying the motion to quash the writ of
execution filed by the herein bonding company- the Regional Trial Court of Pasay City is DISMISSED for lack of jurisdiction.
appellant as well as its subsequent motion for
reconsideration, and/or in not quashing or setting SO ORDERED.
aside the writ of execution.
On separate occasions, respondents moved for the dismissal of the respective cases against
them on the same grounds of: (a) lack of jurisdiction of the RTC over the subject matters of
the complaints; (b) failure to state causes of action for reconveyance; (c) prescription; and
2. Ordering the defendants to reconvey the equivalent of
(d) waiver, abandonment, laches and estoppel.[13] On the issue of jurisdiction, respondents
one (1) hectare forested portion of their properties in question in contended that the RTC has no jurisdiction over the complaints pursuant to Section 19(2)
favor of the plaintiffs within 30 days from the finality of the decision in of Batas Pambansa Blg. (B.P.) 129, as amended by R.A. No. 7691, as in each case, the
this case segregating one hectare from OCT (P-23207) 12870 and OCT assessed values of the subject lots are less than P20,000.00.
(T-20845)-4889 all of defendants, located at its Western portion and if
they refuse, ordering the Clerk of Court of this Honorable Court to
execute the deed of reconveyance with like force and effect as if Petitioners opposed,[14] contending that the instant cases involve actions the
subject matters of which are incapable of pecuniary estimation which, under Section 19(1)
executed by the defendants themselves[;]
of B.P. 129, as amended by R.A. 7691, fall within the exclusive original jurisdiction of the
RTCs. They also contended that they have two main causes of action: for reconveyance and
for recovery of the value of the trees felled by respondents. Hence, the totality of the
claims must be considered which, if computed, allegedly falls within the exclusive original
3. Ordering defendants to pay P20,000.00 for the six (6)
jurisdiction of the RTC.
forest trees illegally cut; P20,000.00 for moral damages; P20,000.00
for Attorney's fees; P20,000.00 for litigation expenses; and to pay the The trial court denied the respective motions to dismiss of respondents.[15] The
cost of the proceedings.[11] respondents filed a Joint Motion for Reconsideration,[16] to no avail.[17]
The three complaints[12] commonly alleged: a) that on May 21, 1958, petitioners' Dissatisfied, respondents jointly filed a Petition for Certiorari, Prohibition and
parents (spouses Valeriano Sr. and Dorotea Concha) acquired by homestead a 24-hectare Preliminary Injunction with Prayer for Issuance of Restraining Order Ex Parte[18] with the
parcel of land situated in Cogon, Dipolog City; b) that since 1931, spouses Concha CA, docketed as CA-G.R. SP No. 59499. In its Decision,[19] the CA reversed the resolutions
"painstakingly preserved" the forest in the 24-hectare land, including the excess four (4) and order of the trial court. It held that even assuming that the complaints state a cause of
hectares "untitled forest land" located at its eastern portion; c) that they possessed this action, the same have been barred by the statute of limitations. The CA ruled that an
excess 4 hectares of land (which consisted of Lot No. 6195, one-hectare portion of Lot No. action for reconveyance based on fraud prescribes in ten (10) years, hence, the instant
6196-A and one-hectare portion of Lot Nos. 6196-B and 7529-A) "continuously, publicly, complaints must be dismissed as they involve titles issued for at least twenty-two (22)
notoriously, adversely, peacefully, in good faith and in concept of the (sic) owner since years prior to the filing of the complaints. The CA found it unnecessary to resolve the other
1931;" d) that they continued possession and occupation of the 4-hectare land after the issues.
death of Dorotea Concha on December 23, 1992 and Valeriano Sr. on May 12, 1999; e) that
the Concha spouses "have preserved the forest trees standing in [the subject lots] to the Hence, this appeal in which petitioners raise the following issues, viz:
Since the issue of jurisdiction is determinative of the resolution of the instant
FIRST - WHETHER OR NOT RESPONDENT COURT OF APPEALS (FORMER case yet the CA skirted the question, we resolved to require the parties to submit their
FIRST DIVISION) ERRED IN REVERSING THE ORDER OF THE COURT A respective Supplemental Memoranda on the issue of jurisdiction.[22]
QUO DENYING THE MOTION FOR DISMISSAL, CONSIDERING THE In their Supplemental Memorandum,[23] petitioners contend that the nature of
their complaints, as denominated therein and as borne by their allegations, are suits for
DISMISSAL OF A PARTY COMPLAINT IS PREMATURE AND TRIAL ON
reconveyance, or annulment or cancellation of OCTs and damages. The cases allegedly
THE MERITS SHOULD BE CONDUCTED TO THRESH OUT EVIDENTIARY involve more than just the issue of title and possession since the nullity of the OCTs issued
MATTERS. to respondents and the reconveyance of the subject properties were also raised as issues.
Thus, the RTC has jurisdiction under Section 19(1) of B.P. 129, which provides that the RTC
has jurisdiction "[i]n all civil actions in which the subject of the litigation is incapable of
pecuniary estimation." Petitioners cited: a) Raymundo v. CA[24] which set the criteria for
SECOND - WHETHER OR NOT THE RESPONDENT COURT OF APPEALS determining whether an action is one not capable of pecuniary estimation; b) Swan v.
(FORMER FIRST DIVISION) ERRED IN DISMISSING THE PETITIONERS' CA[25]where it was held that an action for annulment of title is under the jurisdiction of the
COMPLAINTS ON [THE] GROUND OF PRESCRIPTION. RTC; c) Santos v. CA[26] where it was similarly held that an action for annulment of title,
reversion and damages was within the jurisdiction of the RTC; and d) Commodities Storage
and ICE Plant Corporation v. CA[27] where it was held that "[w]here the action affects title
to the property, it should be filed in the RTC where the property is located." Petitioners
THIRD - WHETHER OR NOT THE RESPONDENT COURT OF APPEALS also contend that while it may be argued that the assessed values of the subject properties
are within the original jurisdiction of the municipal trial court (MTC), they have included in
(FORMER FIRST DIVISION) ERRED IN CONCLUDING THAT THERE IS NO
their prayers "any interest included therein" consisting of 49 felled natural grown trees
DOCUMENTARY EVIDENCE ON RECORD TO SHOW THAT PETITIONERS illegally cut by respondents. Combining the assessed values of the properties as shown by
OWN THE SUBJECT FOREST their respective tax declarations and the estimated value of the trees cut, the total amount
PORTION OF THE PROPERTIES ERRONEOUSLY INCLUDED IN THE TITLES prayed by petitioners exceeds twenty thousand pesos (P20,000.00). Hence, they contend
OF PRIVATE RESPONDENTS. that the RTC has jurisdiction under Section 19(2) of B.P. 129.
Jurisdiction over the subject matter is the power to hear and determine cases of
the general class to which the proceedings in question belong. [28] It is conferred by law and
FOURTH - WHETHER OR NOT THE PETITION OF HEREIN PRIVATE an objection based on this ground cannot be waived by the parties. [29] To determine
RESPONDENTS FILED WITH THE RESPONDENT COURT OF APPEALS 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.[30]
(FORMER FIRST DIVISION) SHOULD HAVE BEEN DISMISSED
OUTRIGHTLY FOR PRIVATE RESPONDENTS' THEREIN FAILURE TO The trial court correctly held that the instant cases involve actions for
COMPLY WITH THE MANDATORY REQUIREMENT OF SECTION 1 RULE reconveyance.[31] An action for reconveyance respects the decree of registration as
65 OF THE RULES OF COURT TO SUBMIT CERTIFIED TRUE COPIES OF incontrovertible but seeks the transfer of property, which has been wrongfully or
THE ASSAILED ORDERS OF THE TRIAL COURT WHICH RENDERED THEIR erroneously registered in other persons' names, to its rightful and legal owners, or to those
PETITION (CA G.R. 59499) DEFICIENT IN FORM AND SUBSTANCE who claim to have a better right.[32] There is no special ground for an action for
CITING THE CASE OF CATUIRA VS. COURT OF APPEALS (172 SCRA reconveyance. It is enough that the aggrieved party has a legal claim on the property
superior to that of the registered owner[33] and that the property has not yet passed to the
136).[20]
hands of an innocent purchaser for value.[34]
The reliefs sought by the petitioners in the instant cases typify an action for
In their memorandum,[21] respondents reiterated their arguments in the courts
reconveyance. The following are also the common allegations in the three complaints that
below that: a) the complaints of the petitioners in the trial court do not state causes of
are sufficient to constitute causes of action for reconveyance, viz:
action for reconveyance; b) assuming the complaints state causes of action for
reconveyance, the same have already been barred by prescription; c) the RTC does not
have jurisdiction over the subject matter of the instant cases; d) the claims for
reconveyance in the complaints are barred by waiver, abandonment, or otherwise (a) That plaintiff Valeriano S. Concha, Sr. together with his
extinguished by laches and estoppel; and e) there is no special reason warranting a review spouse Dorotea Concha have painstakingly preserve[d] the forest
by this Court. standing in the area [of their 24-hectare homestead] including the
four hectares untitled forest land located at the eastern portion of the
forest from 1931 when they were newly married, the date they Cogon, Dipolog City and their assessed values are less than P20,000.00, to wit:
acquired this property by occupation or possession;[35] Civil Case No. Lot No. Assessed Value
(d) That [respondents and their predecessors-in-interest knew when they] surreptitiously In a number of cases, we have held that actions for reconveyance[44] of or for
filed[38] [their respective patent applications and were issued their respective] free patents cancellation of title[45] to or to quiet title[46]over real property are actions that fall under the
and original certificates of title [that the subject lots belonged to the petitioners];[39] classification of cases that involve "title to, or possession of, real property, or any interest
therein."
(e) [That respondents' free patents and the corresponding original certificates of titles were
issued] on account of fraud, deceit, bad faith and misrepresentation;[40] and The original text of Section 19(2) of B.P. 129 as well as its forerunner, Section
44(b) of R.A. 296,[47] as amended, gave the RTCs (formerly courts of first instance) exclusive
(f) The land in question has not been transferred to an innocent purchaser. [41] original jurisdiction "[i]n all civil actions which involve the title to, or possession of, real
property, or any interest therein, except actions for forcible entry into and unlawful
These cases may also be considered as actions to remove cloud on one's title as detainer of lands or buildings, original jurisdiction over which is conferred upon
they are intended to procure the cancellation of an instrument constituting a claim on Metropolitan Trial Courts, [MTCs], and Municipal Circuit Trial Courts (conferred upon the
petitioners' alleged title which was used to injure or vex them in the enjoyment of their city and municipal courts under R.A. 296, as amended)." Thus, under the old law, there was
alleged title.[42] no substantial effect on jurisdiction whether a case is one, the subject matter of which was
incapable of pecuniary estimation, under Section 19(1) of B.P. 129 or one involving title to
Being in the nature of actions for reconveyance or actions to remove cloud on one's title, property under Section 19(2). The distinction between the two classes became crucial with
the applicable law to determine which court has jurisdiction is Section 19(2) of B.P. 129, as the amendment introduced by R.A. No. 7691[48] in 1994 which expanded the exclusive
amended by R.A. No. 7691, viz: original jurisdiction of the first level courts to include "all civil actions which involve title to,
or possession of, real property, or any interest therein where the assessed value of the
Section 19. Jurisdiction in Civil Cases.-- Regional Trial Courts shall exercise property or interest therein does not exceed Twenty thousand pesos (P20,000.00) or, in
exclusive original jurisdiction: x x x 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,
(2) In all civil actions which involve the title to, or possession of, real property, or any litigation expenses and costs." Thus, under the present law, original jurisdiction over cases
interest therein, where the assessed value of the property involved exceeds Twenty the subject matter of which involves "title to, possession of, real property or any interest
thousand pesos (P20,000.00) or for civil actions in Metro Manila, where such value exceeds therein" under Section 19(2) of B.P. 129 is divided between the first and second level
Fifty thousand pesos (P50,000.00) except actions for forcible entry into and unlawful courts, with the assessed value of the real property involved as the benchmark. This
detainer of lands or buildings, original jurisdiction over which is conferred upon the amendment was introduced to "unclog the overloaded dockets of the RTCs which would
Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts; result in the speedier administration of justice."[49]
x x x. The cases of Raymundo v. CA[50] and Commodities Storage and ICE Plant
Corporation v. CA,[51] relied upon by the petitioners, are inapplicable to the cases at
In the cases at bar, it is undisputed that the subject lots are situated in bar. Raymundo involved a complaint for mandatory injunction, not one for reconveyance
or annulment of title. The bone of contention was whether the case was incapable of
pecuniary estimation considering petitioner's contention that the pecuniary claim of the
G.R. No. 176020 September 29, 2014
complaint was only attorney's fees of P10,000, hence, the MTC had jurisdiction. The Court
defined the criterion for determining whether an action is one that is incapable of HEIRS OF TELESFORO JULAO, namely, ANITA VDA. DE ENRIQUEZ, SONIA J. TOLENTINO
pecuniary estimation and held that the issue of whether petitioner violated the provisions and RODERICK JULAO, Petitioners,
of the Master Deed and Declaration of Restriction of the Corporation is one that is vs.
incapable of pecuniary estimation. The claim for attorney's fees was merely incidental to SPOUSES ALEJANDRO and MORENITA DE JESUS, Respondents.
the principal action, hence, said amount was not determinative of the court's DECISION
jurisdiction. Nor can Commodities Storage and ICE Plant Corporation provide any comfort
to petitioners for the issue resolved by the Court in said case was venue and not DEL CASTILLO, J.:
jurisdiction. The action therein was for damages, accounting and fixing of redemption Jurisdiction over the subject matter is conferred by law and is determined by the material
period which was filed on October 28, 1994, before the passage of R.A. No. 7691. In allegations of the complaint.1 Thus, it cannot be acquired through, or waived by, any act or
resolving the issue of venue, the Court held that "[w]here the action affects title to omission of the parties;2 nor can it be cured by their silence, acquiescence, or even express
property, it should be instituted in the [RTC] where the property is situated. The Sta. Maria consent.3
Ice Plant & Cold Storage is located in Sta. Maria, Bulacan.The venue in Civil Case No. 94-
727076 was therefore improperly laid." This Petition for Review on Certiorari4 under Rule 45 of the Rules of Court assails the
Decision5 dated December 4, 2006 of the Court of Appeals (CA) in CA-G.R. CV No. 72845.
Factual Antecedents
Sometime in the 1960's, Telesforo Julao (Telesforo)6 filed before the Department of
Worse, the cases of Swan v. CA[52] and Santos v. CA[53] cited by the
Environment and Natural Resources (DENR), Baguio City, two Townsite Sales Applications
petitioners, contradict their own position that the nature of the instant cases falls under
(TSA), TSA No. V-2132 and TSA No. V-6667.7Upon his death on June 1, 1971, his
Section 19(1) of B.P. 129. The complaints in Swan and Santos were filed prior to the
applications were transferred to his heirs.8
enactment of R.A. No. 7691. In Swan, the Court held that the action being one for
annulment of title, the RTC had original jurisdiction under Section 19(2) of B.P. On April 30, 1979,9 Solito Julao (Solito) executed a Deed of Transfer of Rights,10 transferring
129. In Santos, the Court similarly held that the complaint for cancellation of title, his hereditary share in the property covered by TSA No. V-6667 to respondent spouses
reversion and damages is also one that involves title to and possession of real property Alejandro and Morenita De Jesus. In 1983, respondent spouses constructed a house on the
under Section 19(2) of B.P. 129. Thus, while the Court held that the RTC had jurisdiction, property they acquired from Solito.11 In 1986, Solito went missing.12
the Court classified actions for "annulment of title" and "cancellation of title, reversion and On March 15, 1996, the DENR issued an Order: Rejection and Transfer of Sales Rights, 13 to
damages" as civil actions that involve "title to, or possession of, real property, or any wit:
interest therein" under Section 19(2) of B.P. 129.
WHEREFORE, premises considered and it appearing that herein applicant is a holder of two
Petitioners' contention that the value of the trees cut in the subject properties (2) applications in violation with established policy in the disposition [of] public lands in the
constitutes "any interest therein (in the subject properties)" that should be computed in City of Baguio, TSA V-6667 is hereby ordered dropped from the records. Accordingly, it is
addition to the respective assessed values of the subject properties is unavailing. Section henceforth ordered that TSA 2132 in the name ofTELESFORO JULAO be, as [it is] hereby
19(2) of B.P. 129, as amended by R.A. No. 7691, is clear that the RTC shall exercise transferred to the heirs of TELESFORO JULAO, represented by ANITA VDA. DE ENRIQUEZ,
jurisdiction "in all civil actions which involve the title to, or possession of, real property, or and as thus transferred, the same shall continue to be given due course. For convenience
any interest therein, where the assessed value of the property involved exceeds Twenty of easy reference, it is directed that the [pertinent] records be consolidated in the name of
thousand pesos (P20,000.00) or for civil actions in Metro Manila, where such value the latter.
exceeds Fifty thousand pesos (P50,000.00)." It is true that the recovery of the value of the SO ORDERED.14
trees cut from the subject properties may be included in the term "any interest
therein." However, the law is emphatic that in determining which court has jurisdiction, it Consequently, on December 21, 1998, Original Certificate of Title (OCT) No. P-
is only the assessed value of the realty involved that should be computed.[54] In this case, 2446,15 covering a 641-square meter property, was issued in favor of the heirs of
there is no dispute that the assessed values of the subject properties as shown by their tax Telesforo.16
declarations are less than P20,000.00. Clearly, jurisdiction over the instant cases belongs On March 2, 1999, petitioners Anita Julao vda. De Enriquez, Sonia J. Tolentino and Roderick
not to the RTC but to the MTC. Julao,17representing themselves to be the heirs of Telesforo, filed before the Regional Trial
IN VIEW WHEREOF, the decision of the Court of Appeals is hereby AFFIRMED that the Court (RTC), Baguio City, a Complaint or Recovery of Possession of Real
RTC of Dipolog City, Branch 9, has no jurisdiction in Civil Case Nos. 5188, 5433 and 5434. Property,18 docketed as Civil Case No. 4308-R,19 against respondent spouses. Petitioners
No costs. SO ORDERED. alleged that they are the true and lawful owners of a 641-square meter parcel of land
located at Naguilian Road, Baguio City, covered by OCT No. P-2446;20 that the subject
property originated from TSA No. V-2132;21 that respondent spouses' house encroached on WHEREFORE, premises considered, judgment is hereby rendered in favor of the
70 square meters of the subject property;22 that on August 4, 1998, petitioners sent a [petitioners] and against the [respondents] who are hereby ordered to restore the
demand letter to respondent spouses asking them to return the subject property; 23 that possession of the land in question consisting of an area of 70 square meters, more or less,
respondent spouses refused to accede to the demand, insisting that they acquired the which is a portion of the land covered by [OCT] No. P-2446. The [respondents] are ordered
subject property from petitioners' brother, Solito, by virtue of a Deed of Transfer of to remove the house and/or other improvements that they constructed over the said
Rights;24 that in the Deed of Transfer of Rights, Solito expressly transferred in favor of parcel of land and to vacate the same upon the finality of this decision.
respondent spouses his hereditary share in the parcel of land covered by TSA No. V-
SO ORDERED.51
6667;25 that TSA No. V-6667 was rejected by the DENR;26 and that respondent spouses
have no valid claim over the subject property because it is covered by a separate Ruling of the Court of Appeals
application, TSA No. V-2132.27 Aggrieved, respondent spouses elevated the case to the CA.
Respondent spouses filed a Motion to Dismiss28 on the ground of prescription, which the On December 4, 2006, the CA reversed the ruling of the RTC. The CA found the Complaint
RTC denied for lack of merit.29 Thus, they filed an Answer30 contending that they are the dismissible on two grounds: (1) failure on the part of petitioners to identify the property
true and lawful owners and possessors of the subject property; 31 that they acquired the sought to be recovered; and (2) lack of jurisdiction. The CA noted that petitioners failed to
said property from petitioners' brother, Solito;32 and that contrary to the claim of pinpoint the property sought to be recovered.52 In fact, they did not present any survey
petitioners, TSA No. V-6667 and TSA No. V-2132 pertain to the same property.33 plan to show that respondent spouses actually encroached on petitioners'
During the trial, petitioners disputed the validity of the Deed of Transfer of Rights executed property.53Moreover, the CA was not fully convinced that the two applications pertain to
by Solito. They presented evidence to show that Telesforo submitted two applications, TSA two separate parcels of land since respondent spouses were able to present evidence to
No. V-2132 and TSA No. V-6667.34The first one, TSA No. V-2132, resulted in the issuance of refute such allegation.54 The CA likewise pointed out that the Complaint failed to establish
OCT No. P-2446 in favor of the heirs ofTelesforo, while the second one, TSA No. V-6667, that the RTC had jurisdiction over the case as petitioners failed to allege the assessed value
was dropped from the records.35 They also presented evidence to prove that Solito had no of the subject property.55 Thus:
hereditary share in the estate of Telesforo because Solito was not Telesforo's biological WHEREFORE, premises considered, the appeal is GRANTED. The decision appealed from is
son, but his stepson, and that Solito 's real name was Francisco Bognot.36 REVERSED and SET ASIDE. The complaint is DISMISSED.
After petitioners rested their case, respondent spouses filed a Motion for Leave of Court to SO ORDERED.56
File a Demurrer to Evidence.37 The RTC, however, denied the Motion.38
Issues
The heirs of Solito then moved to intervene and filed an Answer-lnlntervention,39 arguing
that their father, Solito, is a legitimate son ofTelesforo and that Solito sold his hereditary Hence, petitioners filed the instant Petition for Review on Certiorari, raising the following
share in the estate of his father to respondent spouses by virtue of a Deed of Transfer of errors:
Rights.40 I
To refute the evidence presented by petitioners, respondent spouses presented two letters THE [CA] COMMITTED REVERSIBLE ERROR IN RULING THAT PETITIONERS FAILED TO PROVE
from the DENR: ( 1) a letter dated April 27, 1999 issued by Amando I. Francisco, the Officer- THE IDENTITY OF THE PROPERTY IN QUESTION.
In-Charge of CENRO-Baguio City, stating that "it can be concluded that TSA No. V-2132 and
TSA No. V-6667 referred to one and the same application covering one and the same II
lot;"41 and (2) a letter42 dated September 30, 1998 from the DENR stating that "the land THE [CA] COMMITTED REVERSIBLE ERROR IN RULING THAT THE TRIAL COURT DID NOT
applied for with assigned number TSA No. V-2132 was renumbered as TSA No. V-6667 as ACQUIRE JURISDICTION OVER THE COMPLAINT.57
per 2nd Indorsement dated November 20, 1957 x x x." 43 They also presented two
affidavits,44 both dated August 31, 1994, executed by petitioners Sonia Tolentino and At this juncture, it must be mentioned that in the Resolution 58 dated March 19, 2007, we
Roderick Julao,45 acknowledging that Solito was their co-heir and that he was the eldest required respondent spouses to file their Comment to the Petition which they failed to
son of Telesforo.46 Ruling of the Regional Trial Court comply with. Thus, in the Resolution59 dated March 11, 2013, we dispensed with the filing
of respondent spouses' Comment. At the same time, we required petitioners to manifest
On August 10, 2001, the RTC rendered a Decision 47 in favor of petitioners.1wphi1 The RTC whether they are willing to submit the case for resolution based on the pleadings filed. To
found that although petitioners failed to prove their allegation that Solito was not an heir date, petitioners have not done so.
of Telesforo,48 they were nevertheless able to convincingly show that Telesforo filed with
the DENR two applications, covering two separate parcels of land, and that it was his first Our Ruling
application, TSA No. V-2132, which resulted in the issuance of OCT No. P-2446.49 And since The Petition lacks merit.
what Solito transferred to respondent spouses was his hereditary share in the parcel of
The assessed value must be alleged in the complaint to determine which court has
land covered by TSA No. V-6667, respondent spouses acquired no right over the subject
jurisdiction over the action.
property, which was derived from a separate application, TSA No. V-2132.50 Thus, the RTC
disposed of the case in this wise: Jurisdiction as we have said is conferred by law and is detennined by the allegations in the
complaint, which contains the concise statement of the ultimate facts of a plaintiffs cause Moreover, Article 434 of the Civil Code states that "[i]n an action to recover, the property
of action.60 must be identified, and the plaintiff must rely on the strength of his title and not on the
weakness of the defendant's claim." The plaintiff, therefore, is duty-bound to clearly
Section 19(2) and Section 33(3) of Batas Pambansa Big. 129, as amended by Republic Act
identify the land sought to be recovered, in accordance with the title on which he anchors
No. 7691, provide:
his right of ownership.66 It bears stressing that the failure of the plaintiff to establish the
SEC. 19. Jurisdiction in Civil Cases. - Regional Trial Courts shall exercise exclusive original identity of the property claimed is fatal to his case.67
jurisdiction:
In this case, petitioners failed to identify the property they seek to recover as they failed to
xxxx describe the location, the area, as well as the boundaries thereof. In fact, as aptly pointed
(2) In all civil actions which involve the title to, or possession of, real property, or any out by the CA, no survey plan was presented by petitioners to prove that respondent
interest therein, where the assessed value of the property involved exceeds twenty spouses actually encroached upon the 70-square meter portion of petitioners'
thousand pesos (P20,000.00) or for civil actions in Metro Manila, where such value exceeds property.68 Failing to prove their allegation, petitioners are not entitled to the relief prayed
Fifty thousand pesos (P50,000.00) except actions for forcible entry into and unlawful for in their Complaint.
detainer of lands or buildings, original jurisdiction over which is conferred upon the All told, we find no error on the part of the CA in dismissing the Complaint for lack of
Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts: jurisdiction and for failing to identify the property sought to be recovered.
xxxx WHEREFORE, the Petition is hereby DENIED. The Decision dated December 4, 2006 of the
SEC. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and Municipal Court of Appeals in CA-G.R. CV No. 72845 is hereby AFFIRMED.
Circuit Trial Courts in Civil Cases. Metropolitan Trial Courts, Municipal Trial Courts, and SO ORDERED.
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.
Based on the foregoing, it is clear that in an action for recovery of possession, the assessed
value of the property sought to be recovered determines the court's jurisdiction.61
In this case, for the RTC to exercise jurisdiction, the assessed value of the subject property G.R. No. 208232, March 10, 2014
must exceed P20,000.00. Since petitioners failed to allege in their Complaint the assessed
value of the subject property, the CA correctly dismissed the Complaint as petitioners SURVIVING HEIRS OF ALFREDO R. BAUTISTA, NAMELY: EPIFANIA
failed to establish that the RTC had jurisdiction over it. In fact, since the assessed value of G. BAUTISTA AND ZOEY G. BAUTISTA, Petitioners, v. FRANCISCO
the property was not alleged, it cannot be determined which trial court had original and LINDO AND WELHILMINA LINDO; AND HEIRS OF FILIPINA
exclusive jurisdiction over the case. DAQUIGAN, NAMELY: MA. LOURDES DAQUIGAN, IMELDA
Furthermore, contrary to the claim of petitioners, the issue of lack of jurisdiction was CATHERINE DAQUIGAN, IMELDA DAQUIGAN AND CORSINO
raised by respondents in their Appellant's Brief62 And the fact that it was raised for the first DAQUIGAN, REBECCA QUIAMCO AND ANDRES QUIAMCO, ROMULO
time on appeal is of no moment. Under Section 1,63 Rule 9 of the Revised Rules of Court, LORICA AND DELIA LORICA, GEORGE CAJES AND LAURA CAJES,
defenses not pleaded either in a motion to dismiss or in the answer are deemed waived, MELIDA BAEZ AND FRANCISCO BAEZ, MELANIE GOFREDO,
except for lack of jurisdiction, litis pendentia, res judicata, and prescription, which must be GERVACIO CAJES AND ISABEL CAJES, EGMEDIO SEGOVIA AND
apparent from the pleadings or the evidence on record. In other words, the defense of lack VERGINIA SEGOVIA, ELSA N. SAM, PEDRO M. SAM AND LINA SAM,
of jurisdiction over the subject matter may be raised at any stage of the proceedings, even SANTIAGO MENDEZ AND MINA MENDEZ, HELEN M. BURTON AND
for the first time on appeal.64 In fact, the court may motu proprio dismiss a complaint at LEONARDO BURTON, JOSE JACINTO AND BIENVENIDA JACINTO,
any time when it appears from the pleadings or the evidence on record that lack of IMELDA DAQUIGAN, LEO MATIGA AND ALICIA MATIGA,
jurisdiction exists.65 FLORENCIO ACEDO JR., AND LYLA VALERIO, Respondents.
This is a Petition for Review on Certiorari under Rule 45 assailing the Other respondents, however, filed a Motion to Dismiss4 dated February 4,
April 25, 2013 Order of the Regional Trial Court (RTC) in Civil Case No. 2013, alleging that the complaint failed to state the value of the property
(1798)-021 as well as its Order of July 3, 2013 denying reconsideration. sought to be recovered. Moreover, they asserted that the total selling
price of all the properties is only sixteen thousand five hundred pesos
(PhP 16,500), and the selling price or market value of a property is
The Facts always higher than its assessed value. Since Batas Pambansa Blg. (BP)
129, as amended, grants jurisdiction to the RTCs over civil actions
Alfredo R. Bautista (Bautista), petitioners predecessor, inherited in 1983 involving title to or possession of real property or interest therein where
a free-patent land located in Poblacion, Lupon, Davao Oriental and the assessed value is more than PhP 20,000, then the RTC has no
covered by Original Certificate of Title (OCT) No. (1572) P-6144. A few jurisdiction over the complaint in question since the property which
years later, he subdivided the property and sold it to several vendees, Bautista seeks to repurchase is below the PhP 20,000 jurisdictional
herein respondents, via a notarized deed of absolute sale dated May 30, ceiling.
1991. Two months later, OCT No. (1572) P-6144 was canceled and
Transfer Certificates of Title (TCTs) were issued in favor of the
vendees.1crallawlibrary RTC Ruling5
Three years after the sale, or on August 5, 1994, Bautista filed a Acting on the motion, the RTC issued the assailed order dismissing the
complaint for repurchase against respondents before the RTC, Branch 32, complaint for lack of jurisdiction. The trial court found that Bautista failed
Lupon, Davao Oriental, docketed as Civil Case No. 1798,2anchoring his to allege in his complaint that the value of the subject property exceeds
cause of action on Section 119 of Commonwealth Act No. (CA) 141, 20 thousand pesos. Furthermore, what was only stated therein was that
otherwise known as the Public Land Act, which the total and full refund of the purchase price of the property is PhP
reads:chanRoblesVirtualawlibrary 16,500. This omission was considered by the RTC as fatal to the case
considering that in real actions, jurisdictional amount is determinative of
whether it is the municipal trial court or the RTC that has jurisdiction
SECTION 119. Every conveyance of land acquired under the free patent over the case.
or homestead provisions, when proper, shall be subject to repurchase by
the applicant, his widow, or legal heirs, within a period of five years from With respect to the belated filing of the motion, the RTC, citing Cosco
the date of the conveyance. Philippines Shipping, Inc. v. Kemper Insurance Company,6 held that a
motion to dismiss for lack of jurisdiction may be filed at any stage of the
Respondents, in their Answer, raised lack of cause of action, estoppel, proceedings, even on appeal, and is not lost by waiver or by
prescription, and laches, as defenses. estoppel. The dispositive portion of the assailed Order
reads:chanRoblesVirtualawlibrary
Meanwhile, during the pendency of the case, Bautista died and was
substituted by petitioner Epifania G. Bautista (Epifania).
WHEREFORE, the complaint for Repurchase, Consignation, with
Respondents Francisco and Welhilmina Lindo later entered into a Preliminary Injunction and Damages is hereby dismissed for lack of
compromise agreement with petitioners, whereby they agreed to cede to jurisdiction.
Epifania a three thousand two hundred and thirty square meter (3,230
sq.m.)-portion of the property as well as to waive, abandon, surrender, SO ORDERED.7crallawlibrary
and withdraw all claims and counterclaims against each other. The
compromise was approved by the RTC in its Decision dated January 27, Assignment of Errors
2011, the fallo of which reads:chanRoblesVirtualawlibrary
Their motion for reconsideration having been denied, petitioners now
seek recourse before this Court with the following assigned
WHEREFORE, a DECISION is hereby rendered based on the above- errors:chanRoblesVirtualawlibrary
quoted Compromise Agreement and the parties are enjoined to strictly
I Jurisdiction of RTCs, as may be relevant to the instant petition, is
provided in Sec. 19 of BP 129, which reads:chanRoblesVirtualawlibrary
THE PUBLIC RESPONDENT RTC ERRED IN ADMITTING THE MOTION TO
DISMISS DATED FEBRUARY 4, 2013, BELATEDLY FILED BY THE PRIVATE
RESPONDENTS IN THE CASE. Sec. 19. Jurisdiction in civil cases. Regional Trial Courts shall exercise
exclusive original jurisdiction:chanRoblesVirtualawlibrary
Arguments On the other hand, jurisdiction of first level courts is prescribed in Sec.
33 of BP 129, which provides:chanRoblesVirtualawlibrary
Petitioners argue that respondents belatedly filed their Motion to Dismiss
and are now estopped from seeking the dismissal of the case, it having
been filed nine (9) years after the filing of the complaint and after they Sec. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts
have actively participated in the proceedings. Additionally, they allege and Municipal Circuit Trial Courts in civil cases. Metropolitan Trial
that an action for repurchase is not a real action, but one incapable of Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts shall
pecuniary estimation, it being founded on privity of contract between the exercise:chanRoblesVirtualawlibrary
parties. According to petitioners, what they seek is the enforcement of
their right to repurchase the subject property under Section 119 of CA x x x x
141.
3) Exclusive original jurisdiction in all civil actions which involve title to,
Respondents, for their part, maintain that since the land is no longer or possession of, real property, or any interest therein where the
devoted to agriculture, the right of repurchase under said law can no assessed value of the property or interest therein does not exceed
longer be availed of, citing Santana v. Marias.9 Furthermore, they Twenty thousand pesos (P20,000.00) or, in civil actions in Metro Manila,
suggest that petitioners intend to resell the property for a higher profit, where such assessed value does not exceed Fifty thousand pesos
thus, the attempt to repurchase. This, according to respondents, goes (P50,000.00) exclusive of interest, damages of whatever kind, attorneys
against the policy and is not in keeping with the spirit of CA 141 which is fees, litigation expenses and costs: Provided, That in cases of land not
the preservation of the land gratuitously given to patentees by the State declared for taxation purposes, the value of such property shall be
as a reward for their labor in cultivating the property. Also, the Deed of determined by the assessed value of the adjacent lots.
Absolute Sale presented in evidence by Bautista was unilaterally
executed by him and was not signed by respondents. Lastly, respondents The core issue is whether the action filed by petitioners is one involving
argue that repurchase is a real action capable of pecuniary estimation. title to or possession of real property or any interest therein or one
incapable of pecuniary estimation.
Our Ruling The course of action embodied in the complaint by the present
petitioners predecessor, Alfredo R. Bautista, is to enforce his right to
The petition is meritorious. repurchase the lots he formerly owned pursuant to the right of a free-
patent holder under Sec. 119 of CA 141 or the Public Land Act.
Jurisdiction of courts is granted by the Constitution and pertinent laws.
The Court rules that the complaint to redeem a land subject of a free
patent is a civil action incapable of pecuniary estimation. and cognizable by the RTC.
It is a well-settled rule that jurisdiction of the court is determined by the Respondents argue that Bautistas action is one involving title to or
allegations in the complaint and the character of the relief possession of real property or any interests therein and since the selling
sought.10 In this regard, the Court, in Russell v. Vestil,11 wrote that in price is less than PhP 20,000, then jurisdiction is lodged with the
determining whether an action is one the subject matter of which is not MTC. They rely on Sec. 33 of BP 129.
capable of pecuniary estimation this Court has adopted the criterion
of first ascertaining the nature of the principal action or remedy Republic Act No. 769117 amended Sec. 33 of BP 129 and gave
sought. If it is primarily for the recovery of a sum of money, the claim Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit
is considered capable of pecuniary estimation, and whether jurisdiction is Trial Courts exclusive original jurisdiction in all civil actions which involve
in the municipal courts or in the RTCs would depend on the amount of title to, or possession of, real property, or any interest therein where the
the claim. But where the basic issue is something other than the right assessed value of the property or interest therein does not exceed
to recover a sum of money, where the money claim is purely incidental twenty thousand pesos (PhP 20,000) or, in civil actions in Metro Manila,
to, or a consequence of, the principal relief sought, this Court has where such assessed value does not exceed fifty thousand pesos (PhP
considered such actions as cases where the subject of the litigation may 50,000) exclusive of interest, damages of whatever kind, attorneys fees,
not be estimated in terms of money, and, hence, are incapable of litigation expenses and costs.
pecuniary estimation. These cases are cognizable exclusively by
RTCs.12crallawlibrary At first blush, it appears that the action filed by Bautista involves title to
or possession of the lots he sold to respondents. Since the total selling
Settled jurisprudence considers some civil actions as incapable of price is less than PhP 20,000, then the MTC, not the RTC, has jurisdiction
pecuniary estimation, viz:chanRoblesVirtualawlibrary over the case. This proposition is incorrect for the re-acquisition of the
lots by Bautista or herein successors-in-interests, the present petitioners,
is but incidental to and an offshoot of the exercise of the right by the
1. Actions for specific performance; latter to redeem said lots pursuant to Sec. 119 of CA 141. The
2. Actions for support which will require the determination of the civil reconveyance of the title to petitioners is solely dependent on the
status; exercise of such right to repurchase the lots in question and is not the
3. The right to support of the plaintiff; principal or main relief or remedy sought. Thus, the action of petitioners
4. Those for the annulment of decisions of lower courts; is, in reality, incapable of pecuniary estimation, and the reconveyance of
5. Those for the rescission or reformation of contracts;13crallawlibrary the lot is merely the outcome of the performance of the obligation to
6. Interpretation of a contractual stipulation.14 return the property conformably to the express provision of CA 141.
The Court finds that the instant cause of action to redeem the land is one Even if we treat the present action as one involving title to real property
for specific performance. or an interest therein which falls under the jurisdiction of the first level
court under Sec. 33 of BP 129, as the total selling price is only PhP
The facts are clear that Bautista sold to respondents his lots which were 16,000 way below the PhP 20,000 ceiling, still, the postulation of
covered by a free patent. While the deeds of sale do not explicitly respondents that MTC has jurisdiction will not hold water. This is
contain the stipulation that the sale is subject to repurchase by the because respondents have actually participated in the proceedings before
applicant within a period of five (5) years from the date of conveyance the RTC and aggressively defended their position, and by virtue of which
pursuant to Sec. 119 of CA 141, still, such legal provision is deemed they are already barred to question the jurisdiction of the RTC following
integrated and made part of the deed of sale as prescribed by law. It is the principle of jurisdiction by estoppel.
basic that the law is deemed written into every contract. 15 Although a
contract is the law between the parties, the provisions of positive law In Heirs of Jose Fernando v. De Belen, it was held that the party raising
which regulate contracts are deemed written therein and shall limit and defenses to the complaint, actively participating in the proceedings by
govern the relations between the parties.16 Thus, it is a binding filing pleadings, presenting his evidence, and invoking its authority by
prestation in favor of Bautista which he may seek to enforce. That is asking for an affirmative relief is deemed estopped from questioning the
precisely what he did. He filed a complaint to enforce his right granted jurisdiction of the court.18crallawlibrary
by law to recover the lot subject of free patent. Ergo, it is clear that his
action is for specific performance, or if not strictly such action, then it is Here, we note that aside from the belated filing of the motion to dismiss-
akin or analogous to one of specific performance. Such being the case, -it having been filed nine (9) years from the filing of the complaint--
his action for specific performance is incapable of pecuniary estimation respondents actively participated in the proceedings through the
following acts:chanRoblesVirtualawlibrary
2. By participating in Pre-trial;
Having fully participated in all stages of the case, and even invoking the
RTCs authority by asking for affirmative reliefs, respondents can no
longer assail the jurisdiction of the said trial court. Simply put,
considering the extent of their participation in the case, they are, as they
should be, considered estopped from raising lack of jurisdiction as a
ground for the dismissal of the action.
No pronouncement as to costs.
SO ORDERED.