Title
Manchester Development Corp. vs. Court of Appeals
Case
G.R. No. 75919
Decision Date
May 7, 1987
A dispute over filing fees arose when petitioners underpaid, alleging unspecified damages exceeding P78M. Court ruled jurisdiction invalid due to underpayment; amended complaint couldn’t cure defect, overturning prior leniency on fee disputes.

Case Digest (G.R. No. 75919)
Expanded Legal Reasoning Model

Facts:

  • Original Complaint
    • Petitioners filed an action for torts and damages, specific performance, and injunctive relief. The body of the complaint alleged damages totaling over ₱78,750,000, but the prayer did not specify any amount.
    • Upon filing, petitioners paid a docket fee of ₱410.00, treating the case as one for specific performance “not capable of pecuniary estimation.”
  • Subsequent Proceedings
    • The Supreme Court, upon discovering the under-assessment of filing fees in this and similar cases, ordered an investigation and re-assessment. Petitioners, with leave of court, filed an amended complaint on September 12, 1985, adding Philips Wire and Cable Corporation as co-plaintiff and deleting all mention of damages.
    • On November 12, 1985, the trial court directed petitioners to state the amount of damages in the amended complaint. They specified ₱10,000,000 in the body but still omitted any amount in the prayer. The amended complaint was then admitted.
  • Comparison with Magaspi v. Ramolete
    • In Magaspi, the action was for recovery of land and specified damages; initial fees (₱60.00 docket, ₱10.00 sheriff) were underpaid due to an “honest difference of opinion.” Plaintiffs later amended to reduce damages to ₱100,000.00.
    • The trial court in Magaspi treated damages as incidental but nevertheless ordered payment of under-assessed fees; the amendment superseded the original, and the court’s jurisdiction was upheld.

Issues:

  • Whether the filing fee should be assessed based on the amount of damages alleged in the original complaint or the amended complaint.
  • Whether underpayment of the docket fee deprives the trial court of jurisdiction.
  • Whether the filing of an amended complaint specifying a lower amount of damages can cure any jurisdictional defect caused by the original underpayment.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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