Title
Genesis Investment, Inc. vs. Heirs of Ebarasabal
Case
G.R. No. 181622
Decision Date
Nov 20, 2013
Heirs contested sale of undivided property by co-heirs, seeking annulment of deed, recovery of shares, and partition; SC upheld RTC jurisdiction, ruling annulment as principal action, incidental to recovery and partition.

Case Summary (G.R. No. 181622)

Procedural History

The petitioners filed a Motion to Dismiss on August 5, 2004, claiming the RTC lacked jurisdiction because the assessed value of the subject property was P11,990.00, which is below the P20,000.00 threshold set for the Municipal Trial Court (MTC). On September 29, 2004, the RTC granted the Motion to Dismiss. However, the respondents filed a Motion for Partial Reconsideration, which the RTC granted on March 17, 2005, reversing its initial order. This prompted petitioners to file a petition for certiorari with the Court of Appeals (CA), which was subsequently dismissed on July 11, 2007. The CA held that the respondents' complaint involved issues incapable of pecuniary estimation, affirming the RTC's jurisdiction. The petitioners' Motion for Reconsideration was denied on January 10, 2008.

Core Issue

The primary legal issue addressed by the Supreme Court is whether the CA erred in concluding that the RTC had jurisdiction over the case given the petitioners' contention that the main cause of action for the recovery of shares over the property falls within the jurisdiction of the MTC due to the assessed value.

Jurisdictional Assessment

The Supreme Court highlighted that while the respondents’ complaint included claims regarding title, possession, and interest in the disputed property, it primarily sought a declaration of nullity of certain documents. The complaint detailed that the extrajudicial settlement and corresponding sale executed by some of the respondents' co-heirs was conducted without the knowledge or consent of the other heirs, thereby rendering it voidable.

This need for a declaration of nullity for documents inherently indicates an action that is incapable of pecuniary estimation, aligning it with the jurisdictional provisions of the RTC, as established under Republic Act No. 7691. The Supreme Court clarified that the nature of the principal action or the primary relief sought must guide the determination of jurisdiction, rather than incidental claims.

Application of the Law

As per the provisions of the law, the nature of the primary relief being sought—a declaration of nullity—places the complaint under the jurisdiction of the RTC. The Court referred to its prior rulings, emphasizing that if the main issue at hand is not primarily ab

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