Title
Calara vs. Francisco
Case
G.R. No. 156439
Decision Date
Sep 29, 2010
Subdivision buyers dispute developer's compliance with P.D. 957; HLURB holds exclusive jurisdiction, not regular courts, over such cases.

Case Summary (G.R. No. 156439)

Factual Background

The conflict began when the respondents, after expressing interest in purchasing a plot within the Lophcal Subdivision, paid an advance but failed to finalize the purchase contract. Respondents subsequently filed complaints on 28 April 1982 against Calara for the lack of essential utilities and services in the subdivision. Calara contended that the subdivision was exempt from P.D. 957 and initiated an unlawful detainer case against the respondents. The Municipal Trial Court subsequently rendered a judgment favoring Calara, which was later appealed.

Procedural History

On 4 June 1985, the Housing and Land Use Regulatory Board (HLURB), in Case No. REM-060482-1043, ordered Calara to cease selling the subdivision lots due to her failure to secure necessary permits and develop the subdivision adequately. Respondents claimed that the HLURB’s prior ruling impacted their rights concerning the lot sale and justified their halt in payments.

Appeal and Court of Appeals Decision

After multiple legal processes and appeals, on 12 April 2002, the Court of Appeals (CA) ruled that the matter of the alleged unlawful detainer was primarily concerned with the failure to execute a contract and pay monthly amortizations, thus falling within HLURB's jurisdiction rather than that of the courts. The CA determined that the issues raised were complex and intertwined with real estate regulations under P.D. 957, warranting HLURB’s exclusive jurisdiction. Subsequently, the CA dismissed the complaint for unlawful detainer.

Contentions of the Petitioners

The petitioners raised several issues on appeal, including claims that the CA incorrectly determined HLURB's jurisdiction over the issue of the perfected contract and failed to address procedural lapses by the respondents. Petitioners argued that the Municipal Trial Court had jurisdiction and should have dealt with the ejectment issue.

Ruling by the Supreme Court

The Supreme Court affirmed the CA’s decision, asserting that the determinations regarding real estate transactions governed by P.D. 957 ought to be handled by the HLURB. The Court highlighted that mere procedural lapses by the respondents did not warrant barring their appeal and reiterated that an administrative agency's specialized functions take precedence over judicial consideration when the disputes inherently relate to its regulatory a

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