Facts:

• On January 12, 1954, Eugenio Urbayan and Patrocenia Mercado Urbayan (plaintiffs-appellees) filed a case against Evaristo Salvoro (defendant-appellant) in the Municipal Court of Tacloban, Leyte.
• The plaintiffs sought rescission of a lease contract dated December 23, 1953, for two apartments on Zamora Street, Tacloban, and claimed damages totaling P2,225.
• They requested P31 daily from January 4, 1954, until reopening their furniture shop, P500 for attorney's fees, and costs.
• The plaintiffs alleged that the defendant obstructed their adjustment work, which began on December 29, 1953.
• The defendant argued he only agreed to lease the end apartments, not the middle ones, which were leased to another party, Mr. Yu.
• The defendant claimed P500 in damages for tearing down a partition wall.
• On January 18, 1954, the defendant filed an amended answer, asserting the Municipal Court lacked jurisdiction and sought additional damages of P1,500.
• The Municipal Court denied the motion to dismiss and ruled in favor of the plaintiffs on January 15, 1954, rescinding the lease and ordering the defendant to pay various damages.
• The defendant appealed to the Court of First Instance of Leyte, reiterating his jurisdiction claims.
• On March 15, 1956, the Court of First Instance ruled against the defendant, ordering him to pay P3,000 in damages and refund P180.00 to the plaintiffs.
• The defendant appealed again, and the Court of Appeals certified the case to the Supreme Court due to jurisdictional issues.

Issue:

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Ruling:

• The Supreme Court ruled that the Municipal Court of Tacloban did not have jurisdiction over the case, as the amount in controversy exceeded its jurisdictional limit.
• The Court held that the defendant did not waive his objec...(Unlock)

Ratio:

• The Supreme Court's decision was based on the principle that the Municipal Court lacked jurisdiction for claims exceeding P2,000, as stated in Section 88 of Republic Act No. 2...continue reading