Title
Gutierrez vs. Ruiz
Case
G.R. No. L-7045
Decision Date
May 28, 1954
Municipal Court lacked jurisdiction as P2,700 demand exceeded P2,000 limit; void judgment reversed, no damages awarded to Gutierrez.

Case Summary (G.R. No. L-7045)

Background of the Case

The dispute began on September 14, 1950, when Ruiz filed a complaint against Gutierrez in the Municipal Court of Manila, designated as civil case No. 13038. The complaint claimed that Gutierrez owed Ruiz the sum of P2,000, alongside legal interest from March 1, 1950, and P700 in consequential damages. After the defendant failed to appear in court, the Municipal Court issued a decision in favor of Ruiz on October 20, 1950.

Proceedings in the Court of First Instance

Gutierrez subsequently appealed the Municipal Court’s decision to the Court of First Instance of Manila (Civil Case No. 12719), contesting the jurisdiction of the Municipal Court based on the amount involved, which he claimed exceeded the court's limit. Nevertheless, the Court of First Instance upheld the Municipal Court’s decision, asserting it had become final and executory.

Filing of Civil Case No. 13614

Following this, Gutierrez initiated a new action in the Court of First Instance (Civil Case No. 13614) against Ruiz, the presiding judge Guillermo Cabrera, and the Sheriff of Manila. In this case, Gutierrez sought to nullify the Municipal Court’s decision, claiming it lacked jurisdiction over the subject matter due to the amount in dispute exceeding P2,000.

Decision of the Court of First Instance

Upon review, the Court of First Instance, presided over by Judge Demetrio Encarnacion, ruled against Gutierrez. The court found that the primary case had reached a final judgment and dismissed Gutierrez’s claims, stating that further litigation would lead to multiplicity of suits, which is disallowed under the principle of res judicata.

Jurisdictional Analysis

The Court must determine whether the Municipal Court had jurisdiction over case No. 13038. According to the provisions of Republic Act No. 296, civil matters where the amount exceeds P2,000 are outside the original jurisdiction of the Municipal Court. As Ruiz had claimed P2,700 (P2,000 principal plus P700 in damages), the Municipal Court's decision lacked jurisdiction.

Finality of the Municipal Court's Decision

The next consideration is whether the decision rendered in Civil Case No. 12719 serves as a bar to Gutierrez's present action. Ruiz argues the issues have been settled, claiming that the Court of First Instance's ruling on the Municipal Court's decision is final. However, the appellate court found that the Court of Fi

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