G.R. No. L-22153. March 31, 1967
ALFREDO ARROZ, PLAINTIFF-APPELLANT, VS. JOAQUINA A. ALOJADO, ET AL., DEFENDANTS-APPELLEES.
REGALA, J.:
The Court of First
Instance of Palawan dismissed the complaint filed in Civil Case No. 397 (Alfredo
Arroz v. Joaquina A. Alojado, et al) on the ground that the case falls properly
under the jurisdiction of the Justice of the Peace Court (now Municipal
Court). The plaintiff has appealed,
claiming that the Court of First Instance has jurisdiction over the case since
the complaint prays for the specific performance of an obligation.
The complaint in question
alleges:
“2. That November 10, 1961, at Brooke’s Point,
Palawan, the defendant entered into a contract
with the plaintiff whereby the defendant sold a parcel of land in favor of the plaintiff by way of a Memorandum of Agreement of sale, for and in
consideration of ONE THOUSAND FIVE HUNDRED PESOS (P1,500.00), Philippine
currency, the agreement in full is as follows:
‘AGREEMENT
‘This is to acknowledge receipt of the amount of ONE THOUSAND FIVE
HUNDRED PESOS (P1,500.00) from
Alfredo Arroz of Brooke’s Point, Palawan, this date November 10, 1961, at
Brooke’s Point, Palawan.
‘Same amount will be returned fifteen days after November 14, 1961, and as
guarantee, I hereby held as a
collateral a portion of my residential
lot situated in the poblacion of Brooke’s Point, Palawan, described as follows:
“A portion of land about 280 square meters, one side along the
National Highway from the corner of Mr. Yap store to the left corner of Mr.
Abid Anzares store, by 20 meters inward the residential lot.”
‘I hereby agree that if I fail to return the said amount on the
30th day of November, 1961, said portion of land is considered as sold,
however, I will be given another 15 days period to redeem the said piece of
land if I so desire.
‘Done at Brooke’s Point, Palawan, November 10, 1961.
(Sgd.) JOAQUINA A.
ALOJADO
‘Confirmed:
(SGD.) PAZ ALOJADO JALLORINA
(SGD.) CATALINA ALOJADO QUILOPE PATERNO ALOJADO”
“3. That on November 30, 1961, at Brooke’s Point,
Palawan, the defendant pursuant to the Memorandum of Agreement of Sale dated
November 10, 1961, personally went to the plaintiff to exercise the right to
redeem the said piece of land for 15 days from the above-noted date. The plaintiff acceded to the defendant
exercise of said option to redeem terminating on December 15, 1961.
“4. That on December 15, 1961, the defendant
herein failed to redeem the said land
subject of the Memorandum of Agreement of Sale in favor of the plaintiff.
“5. That on December 16, 1961, the plaintiff
herein demanded verbally to the defendants to convey the land subject of the
Memorandum of Agreement of Sale but the defendant refuse and still refuses even
upon incessant demand by the plaintiff.
“6. That on January 4, 1962, at Brooke’s Point,
Palawan, the plaintiff herein wrote a letter of demand for the defendant to
convey the land by way of a Public
Instrument. The said letter is recorded
under Registered Letter No. 227 of the Post Office at Brooke’s Point, Palawan,
duly received by the defendant on the same day, January 4, 1962.
“7. That in said
letter the defendant was given 7 days within which to deliver to the
plaintiff the Deed of Conveyance of the land covered by the Memorandum of Agreement
of Sale dated November 10,
1961.
“8. That before the 7 days period given to the
defendant to deliver the Deed of Conveyance, the defendant illegally deposited
the amount of P1,530.00, Philippine currency, to the Municipal Treasurer of
Brooke’s Point, Palawan, by way of a petition filed before the Honorable Court. By virtue of this petition the Honorable
Court in an Interlocutory Order dated January 5, 1962, ordered the amount to be
deposited.
“9. That the 7 days period
is no longer necessary by virtue of said
illegal deposit.
“10. That in
said letter demanding the delivery of a Deed of Conveyance by virtue of said
Memorandum of Agreement of Sale dated November 10, 1961, it is stated therein
that the plaintiff is gathering materials to construct a house on said
land. By the refusal of the defendant to
convey the said land, the plaintiff suffered damages in the amount of ONE
THOUSAND PESOS (P1,000.00) Philippine currency.
“WHEREFORE, from the foregoing it is respectfully prayed that judgment
issue in favor of the plaintiff and against the defendants, ordering the
latter:
1. That the land covered by the Memorandum of
Agreement of Sale dated November 10, 1961, be conveyed to the Plaintiff
immediately by way
of Deed of Conveyance.
2. That to consider the deposit to the Municipal
Treasurer of Brooke’s Point, Palawan, in the amount of P1,530.00 be considered
illegal and void
and of no effect.
3. That the defendant be required under the law to
pay damages in the amount of P1,000.00 Philippine Currency to the plaintiff,
and other relief that the court may deem it proper.”
It cannot be disputed
that the complaint seeks the fulfillment of the terms of an agreement entered
into between the parties whereby the defendants would consider as sold to the
plaintiff a piece of land given as security for a loan of P1,500, in the event
that the former fails to pay within the period provided for therein. Having failed to pay the said loan when it became due, the defendant is now asked to deliver to
plaintiff by means of a deed of conveyance the piece of land mentioned in
their agreement. Thus, the issues raised
in the complaint are:
1. Whether or not the plaintiff is entitled to the conveyance of
the property described in the agreement; and
2. Whether or not the deposit of P1,530 made by the defendant with
the Municipal Treasurer of Brooke’s Point should be considered void.
Clearly, these matters
brought before the court for its determination cannot be assessed in terms of
money.
Section 88 of the Judiciary Act, as amended, confers to the
Justice of the Peace and Municipal Courts (now municipal and city courts,
respectively) original jurisdiction over cases where the value of the subject
matter or amount of the demand does not exceed P5,000 (now P10,000). However, paragraph 2 of said section states:
“The jurisdiction of a justice of the peace and judge of a
municipal court shall not extend to civil actions in which the subject of litigation
is not capable of pecuniary estimation.
x x x.” (Underscoring ours)
In Manufacturer’s Distributors, Inc. v. Yu Siu Liong, G. R. No.
L-21285, April 29, 1966, We affirmed an order of the Court of First Instance of
Manila declaring the municipal court (now city court) of same city not to have
jurisdiction over a case for specific performance. The issue in that case centered on whether or
not the refusal of the defendant therein to accept delivery of the balance of
P74,500 pieces of plastifilm bags worth P2,560 was justified. It was held that the fact that the complaint
also sought payment of P3,374 plus interest and attorney’s fees, did not
confer jurisdiction to the municipal court over it, for the payment of such
amounts could only be ordered as a consequence
of the specific performance primarily sought.
In other words, payment would be but an incident or consequence of
defendant’s liability for specific performance.
In the present case, the complaint does not even pray, directly
nor alternatively, for the payment of the amount of money owed by defendant to
plaintiff. The fact that mention is made
in the complaint about the loan of P1,500 contracted by the parties would not
render the litigation a money
litigation because as far as the
plaintiff is concerned, the obligation of the defendant is no longer to pay
the said amount but to deliver the property mentioned in their agreement. Indeed, the legality or illegality of the
conveyance sought for, and the determination of the validity of the money
deposit made by the defendant with the municipal treasurer, are not matters
which are capable of pecuniary estimation.
WHEREFORE, the order dismissing the complaint is hereby
set aside. Let the case be remanded to
the court of origin for further proceedings.
Without pronouncement as to
costs.
Concepcion, C.J., Reyes, Dizon, Bengzon, Zaldivar, Sanchez, and Castro, JJ., concur.
Makalintal, J., took no part.