Facts:
Andres Lapitan, plaintiff-appellant, alleged that on April 17, 1963 he purchased from
Scandia, Inc., through its subdealer
General Engineering Co. in Cebu City, one ABC diesel engine of sixteen horsepower for P3,735.00, paid in cash, for use in a rice and corn mill in Ormoc City, Leyte. The sellers allegedly warranted that spare parts were kept in stock and promised to replace any part breaking within twelve months after delivery. On June 28, 1963 the cam rocker arm broke, which Lapitan attributed to faulty material and workmanship, and the sellers were unable to deliver a replacement until August 29, 1963. Lapitan alleged that the replacement part likewise failed within six days for the same reason, whereupon he notified the sellers and demanded
rescission of the contract, reimbursement of the price, and recovery of P4,000.00 actual damages plus P1,000.00 attorneys' fees, moral and exemplary damages, and costs. The defendants filed answers denying liability, and
Scandia, Inc. moved to dismiss for lack of jurisdiction contending that the total amount claimed was only P8,735.00 and therefore within the exclusive jurisdiction of the municipal court under
Republic Act No. 3828. The Court of First Instance of Cebu dismissed the complaint for lack of jurisdiction, invoking
Cruz v. Judge B. Tan, 87 Phil. 627. Lapitan appealed directly to the Court.
Issues:
Was the action for
rescission of the sales contract and incidental claims capable of pecuniary estimation such that the municipal court had jurisdiction; and did the asserted money claims raise the value of the demand beyond municipal court jurisdiction?
Ruling:
Ratio:
Doctrine: