Title
Ayala Land, Inc. vs. Heirs of Lactao
Case
G.R. No. 208213
Decision Date
Aug 8, 2018
Heirs of Lactao and Aquino sued Ayala Land for land-grabbing, claiming ancestral ownership. Dispute over docket fees and indigence status led to Supreme Court remand for resolution.

Case Summary (G.R. No. 208213)

Original Complaint and Docket Fee Dispute

Respondents filed Civil Case No. Q-05-56296 for quieting of title, annulment/cancellation of titles, and reconveyance, alleging adverse entry and destruction of houses and trees by petitioner and co-defendant Capitol Hills. They paid initial docket fees of ₱6,828.80 and executed an affidavit of undertaking for any deficiency. Petitioner moved to dismiss for underpayment, contending correct fees based on fair market value should be over ₱62 million.

RTC Denial of Dismissal and Issuance of TRO

The RTC denied the motion to dismiss and granted respondents’ request for temporary restraining order. Petitioner’s reconsideration motion asserted the 1978 tax declaration relied upon did not exist or correspond to the property.

CA’s First Review (CA-G.R. SP No. 99631)

The Court of Appeals denied petitioner’s certiorari petition, ruling jurisdiction once validly acquired by payment of assessed fees continues despite misassessment. It ordered the RTC Clerk to reassess correct docket fees under Rule 141 Sec. 7(a).

Supreme Court’s Entry of Finality and RTC Remand

On petitions G.R. Nos. 184376/184388, the Supreme Court affirmed the CA decision on January 19, 2009. The RTC, after remand, issued successive orders (Jan–May 2010) directing respondents to furnish tax declarations or zonal value information for fee recalculation and to pay additional fees, warning of dismissal for noncompliance.

Respondents’ Omnibus Motion and Claim of Indigence

On May 24, 2010, respondents moved to determine proper basis for fee computation (pre-taking market value vs. current value), to have additional fees constitute a lien, and to be declared indigent litigants unable to pay multimillion-peso fees. Petitioner opposed and later moved to dismiss for nonpayment and lack of jurisdiction.

RTC Resolution on Lien and Pauper Status

In August 2011, the RTC granted respondents’ omnibus motion, allowing additional fees as first lien on judgment and recognizing respondents as indigent litigants without property to satisfy fees. Petitioner’s motion for reconsideration was denied, and the Clerk was again ordered to reassess fees.

CA’s Ruling on Mootness (CA-G.R. SP No. 122999)

Petitioner filed certiorari before the CA, but the CA dismissed the petition as moot and academic in view of the May 4, 2012 RTC Order granting pauper litigant status. The CA nonetheless held any exempted fees shall remain a lien on any favorable judgment. Petitioner’s motion for reconsideration was denied.

Supreme Court’s Ruling on Mootness and Indigence Issue

The Supreme Court held the CA erred in declaring mootness becaus

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