Title
Chavez vs. Court of Appeals
Case
G.R. No. 174356
Decision Date
Jan 20, 2010
A landowner and tenant dispute over profit-sharing and property administration, involving claims of forum shopping and improper receivership, dismissed for lack of jurisdiction.

Case Summary (G.R. No. 174356)

Applicable Law

– 1987 Philippine Constitution (decision date post-1990)
– Rule 59, Section 1(b), Rules of Civil Procedure (receivership)
– Republic Act No. 8048 (agrarian dispossession)

Factual and Procedural Background

  1. Vargas owned the property but, due to professional commitments, contracted Evelina to cultivate and manage it in trust, sharing gross sales equally.
  2. Vargas filed a civil complaint in RTC Branch 65 of Bulan, Sorsogon, for recovery of possession, rent, damages, and a prayer for receivership, alleging Evelina’s failure to remit her share.
  3. Evelina and Aida pleaded that the RTC lacked jurisdiction, as the dispute was agrarian in nature.
  4. The RTC dismissed for lack of jurisdiction, deeming the parties to be agrarian tenants under DARAB’s exclusive competence.
  5. Vargas appealed to the Court of Appeals and moved for receivership. On April 12, 2006, the CA placed the property under receivership to preserve its fruits.
  6. Parallel to the CA appeal, Vargas filed three estafa complaints in RTC Olongapo City and a DARAB dispossession case, each seeking provisional receivership.

Issues Presented

  1. Whether Vargas’s multiple filings constitute forum shopping.
  2. Whether the CA erred in appointing a receiver over the disputed land.

Forum Shopping Analysis

– Forum shopping requires (1) identity of parties, (2) identity of rights and reliefs, and (3) such similarity that judgment in one case operates as res judicata in another.
– Although Vargas sought receivership in multiple proceedings, the underlying causes differed:
• Civil suit for recovery of possession and accounting of fruits
• Criminal estafa charges for misappropriation of produce
• Agrarian dispossession under RA 8048 for unauthorized cutting of trees
– Receivership is an ancillary remedy, not an independent cause of action; its grant in one forum does not preclude or decide the merits of another.
– Conclusion: No forum shopping, as each suit asserted distinct rights and sought different reliefs.

Receivership Analysis

– Under Rule 59, Section 1(b), receivership may be granted only when the subject property is in imminent danger of loss, removal, or material injury, necessitating preservation.
– Vargas’s complaint centered on Evelina’s alleged failure to account, not on imminent destruction or waste of the land or its productive capacity.
– Receivership is an e

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