G.R. No. 217296 - Spouses Santiago vs. Northbay Knitting, Inc.

SPOUSES ERWIN C. SANTIAGO AND MARINELA A. SANTIAGO; SPOUSES GAUDENCIO A. MANIMTIM, JR. AND EDITHA P. MANIMTIM; SPOUSES RAMIRO C. ALBARAN AND ELVA C. ALBARAN; AND CESAR F. ODAN, petitioners, were occupants and operators of businesses on the disputed lot.
Northbay Knitting, Inc., respondent, alleged ownership of the parcel in Phase I, North Side of the Dagat‑Dagatan Project in Navotas, covered by Transfer Certificate of Title No. M‑38092.

Petitioners traced possession through predecessor‑in‑interest Hermeginildo Odan, who leased the property from the family of the late Francisco Felipe Gonzales and subleased to petitioners; possession commenced in 1970.
The government expropriated the property and declared it an Area for Priority Development or Urban Land Reform Zone under Proclamation No. 3384 dated April 13, 1983.
A Conditional Contract to Sell was entered between Northbay Knitting, Inc. and the National Housing Authority (NHA); NKI allegedly violated its terms, causing automatic cancellation.
The NHA sold the property to Northbay Knitting, Inc. in 2008; petitioners allege the NHA failed to give them the statutory right of first refusal and filed Civil Case No. 06‑11‑MN to question the sale.
Northbay Knitting, Inc. became the registered owner of the disputed property on June 16, 2008, as evidenced by TCT No. M‑38092, Tax Declaration No. C‑002‑08822‑C, and a 2008 real property tax receipt.

On March 5, 2009, Northbay Knitting, Inc. sent demand letters to petitioners to vacate within five days and to pay rent if they refused.
Petitioners refused to vacate or to pay rent; Northbay Knitting, Inc. filed an ejectment complaint on April 14, 2009 before the Metropolitan Trial Court (MeTC), Navotas City.
On June 11, 2012, the MeTC rendered judgment in favor of Northbay Knitting, Inc., ordering removal of improvements, peaceful vacation, payment of PHP 2,000 per month from May 4, 2009, and attorney’s fees of PHP 20,000; the defendants’ counterclaim was dismissed.
On May 29, 2013, the Malabon Regional Trial Court (RTC), Branch 170, set aside the MeTC decision for lack of jurisdiction, citing Sec. 8 par. 2, Rule 40 of the Rules of Court, and assumed jurisdiction over the case.
On September 26, 2014, the Court of Appeals (CA) reversed the RTC, reinstated and affirmed the MeTC decision, and on February 25, 2015 issued a related Resolution; petitioners filed a petition for review with the Supreme Court.

Whether the MeTC, a court of summary jurisdiction, had jurisdiction to hear and decide the ejectment complaint filed by Northbay Knitting, Inc..

Whether the complaint sufficiently alleged the elements required for Unlawful Detainer to confer jurisdiction on the MeTC.

Whether petitioners could collaterally attack Northbay Knitting, Inc.’s Torrens title in the unlawful detainer proceeding.
Whether the pending action (Civil Case No. 06‑11‑MN) questioning the sale to Northbay Knitting, Inc. was a prejudicial question that divested the MeTC of jurisdiction.