Title
1st Sarmiento Property Holdings, Inc. vs. Philippine Bank of Communications
Case
G.R. No. 202836
Decision Date
Jun 19, 2018
First Sarmiento sought annulment of a P100M mortgage, claiming non-receipt of loan proceeds. SC ruled action incapable of pecuniary estimation, remanding case to RTC.

Case Digest (G.R. No. 202448)
Expanded Legal Reasoning Model

Facts:

  • Loan and Mortgage Agreements
    • On June 19, 2002, First Sarmiento Property Holdings, Inc. obtained a ₱40,000,000 loan from PBCOM secured by a real‐estate mortgage over 1,076 parcels of land.
    • The loan was amended on March 15, 2003 (increased to ₱51,200,000) and on September 15, 2003 (increased to ₱100,000,000).
    • On January 2, 2006, PBCOM filed a Petition for Extrajudicial Foreclosure due to petitioner’s failure to pay principal and accrued interest.
  • Attempts to Annul and Extrajudicial Sale
    • December 27, 2011: Petitioner tried to file a Complaint for annulment of the mortgage; the Clerk of Court refused it for lack of tax declarations to assess docket fees.
    • December 29, 2011: RTC (Malolos City) granted petitioner’s motion to treat the action as non-pecuniary and issued a 72-hour ex-parte TRO; on the same day, the mortgaged properties were auctioned and sold to PBCOM.
  • Trial Court Proceedings
    • January 2, 2012: Petitioner filed the Complaint for annulment of mortgage with prayer for TRO and preliminary injunction, paying ₱5,545 in filing fees; the court issued the 72-hour ex-parte TRO.
    • January 4, 2012: RTC directed the parties to maintain status quo ante; January 24, 2012: Sheriff issued the certificate of sale in favor of PBCOM.
    • April 3, 2012: RTC Branch 11 dismissed the Complaint for lack of jurisdiction due to alleged insufficient fees; July 25, 2012: motion for reconsideration denied.
  • Supreme Court Petition and Party Positions
    • August 17, 2012: Petitioner filed a Petition for Review on Certiorari (Rule 45), asserting the action was incapable of pecuniary estimation.
    • PBCOM contended the case was a real action requiring fees based on the fair market value of the properties and challenged the indefinite TRO.
    • Both parties filed memoranda and replies; the focal issue became whether the RTC had subject‐matter jurisdiction over the Complaint.

Issues:

  • Jurisdiction
    • Whether the Regional Trial Court acquired jurisdiction over petitioner’s Complaint for annulment of real estate mortgage given the docket fees paid.
  • Injunctive Relief
    • Whether the RTC’s order indefinitely extending the ex-parte TRO and directing status quo ante was lawful under the Rules of Court.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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