Title
Francel Realty Corp. vs. Sycip
Case
G.R. No. 154684
Decision Date
Sep 8, 2005
A dispute over unpaid property balance and jurisdiction arose after a house and lot sale under PD 957, with HLURB holding exclusive authority.

Case Summary (G.R. No. 154684)

Background of the Case

In November 1989, Petitioner and Respondent executed a contract for the sale of a townhouse, with Respondent making a down payment of PHP 119,700, treated as monthly rentals. By March 16, 1990, the townhouse was transferred to Respondent, who subsequently failed to pay the remaining balance of PHP 250,000. Following several demands for payment, Respondent did not fulfill his financial obligations and instead raised issues related to the quality of the property.

Jurisdictional Challenge

Respondent filed a motion to dismiss the complaint, asserting lack of jurisdiction due to the nature of the dispute involving unsound real estate business practices, which falls under the exclusive authority of the Housing and Land Use Regulatory Board (HLURB). The trial court denied this motion, leading to further proceedings.

Ruling of the Court of Appeals

The Court of Appeals dismissed the appeal of the trial court's ruling and found that substantive issues regarding property rights arising from a sale under PD 957 must be resolved by the HLURB. The appellate court characterized Petitioner’s attempt to litigate matters already raised before the HLURB as an effort to circumvent established legal procedures.

Legal Issues Presented

The Petitioner presented two issues: (A) the propriety of the trial court’s dismissal for lack of jurisdiction after trial had occurred, and (B) whether Respondent’s alleged failure to secure HLURB authority for stopping payments barred the application of his defenses.

Court's Analysis on Jurisdiction

The Supreme Court affirmed the dismissal on jurisdictional grounds, reiterating that the lack of jurisdiction over a subject matter could be raised at any stage of the proceeding, including on appeal. It distinguished between cases in which jurisdictional issues had been waived by participation in the trial and those where the jurisdictional challenge was consistently and timely raised, as was the case with Respondent.

Estoppel by Laches

The Court discussed the doctrine of estoppel by laches, which can sometimes prevent parties from raising jurisdictional claims after extensive procedural engagement. However, it emphasized that this doctrine is exceptional and applies only in circumstances where inaction to assert jurisdiction appears to signify abandonment of the right.

Nature of the Complaint

The Court also underscored that jurisdiction should be determined based solely on the allegations in the complaint. The nature of the complaint, identified as one that challenges the rights arising from a seller-buyer relationship under PD 957, firmly placed its adjudication under the HLURB’s jurisdiction.

Authority to Stop Payments

On the matter of whether Respondent required HL

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