Facts:

• Francisco J. Nicolas, a resident of Makati, Rizal, filed an action for breach of contract against the Reparations Commission and Pedro Pastoral, both of Quezon City.
• The case was filed in the Court of First Instance of Rizal.
• The defendants filed separate motions to dismiss on the ground of improper venue.
• The defendants cited a stipulation in the contract that stated "all legal actions arising out of this contract . . . may be brought in and submitted to the jurisdiction of the proper courts in the City of Manila."
• The lower court granted the motion to dismiss, stating that the stipulation on venue was intended to be compulsory for the benefit of the Reparations Commission.

Issue:

• (Unlock)

Ruling:

• The Supreme Court set aside the dismissal of the case and remanded it to the lower c...(Unlock)

Ratio:

• Agreements between the parties on the venue of an action should be construed reasonably and should not be applied in a way that inconveniences the parties without promoting the ends of justice.
• The stipulation in the contract did not clearly show that the intention of the parties was to limit the venue of the action to the City of Manila only.
• Confining the situs of the action to Manila would not serve the interests of justice, considering that all the parties and the acts sought to be restrained o...continue reading