Case Digest (G.R. No. 136423)
Facts:
Spouses Efren N. Rigor and Zosima D. Rigor, for themselves and as owners of Chiara Construction v. Consolidated Orix Leasing and Finance Corporation, G.R. No. 136423, October 25, 2004, Supreme Court Third Division, Carpio, J., writing for the Court.Petitioners (the Rigors), through their business Chiara Construction, obtained a loan from private respondent Consolidated Orix Leasing and Finance Corporation in the amount of P1,630,320.00. On July 31, 1996 petitioners executed a promissory note requiring 24 equal monthly installments of P67,930.00 starting September 5, 1996, with a clause that default on any installment would render the entire unpaid principal due. To secure the loan, petitioners executed a deed of chattel mortgage over two dump trucks in favor of private respondent.
After petitioners defaulted on several installments, private respondent filed a complaint for Replevin with Damages against petitioners in the Regional Trial Court of Dagupan City (Branch 41) on January 5, 1998 to foreclose the chattel mortgage and recover possession of the mortgaged vehicles. Petitioners moved to dismiss for improper venue, invoking the promissory note provision that "all legal actions arising out of this note or in connection with the chattels subject hereof shall only be brought in or submitted to the proper court in Makati City, Philippines."
Private respondent opposed the motion, relying on the chattel mortgage's venue clause which expressly allowed suit in Makati or "any court in the city, or province where the holder/mortgagee has a branch office," asserting that it had a Dagupan branch and that the cause of action arose there. The Dagupan trial court denied the motion to dismiss in an Order dated June 3, 1998 and denied reconsideration on July 15, 1998. Petitioners filed a petition for certiorari with the Court of Appeals alleging grave abuse of discretion; the Court of Appeals denied due course and di...(Pro-only)
Issues:
- Whether venue was properly laid in the Regional Trial Court of Dagupan City under the venue provision of the deed of chattel mortgage in light of Article 1374 of the Civi...(Pro-only)
Ruling:
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Ratio:
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Doctrine:
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