Title
Larano vs. Spouses Calendacion
Case
G.R. No. 158231
Decision Date
Jun 19, 2007
Petitioner sued respondents for unlawful detainer over unpaid installments and harvest delivery under a Contract to Sell. SC upheld CA, ruling MTC lacked jurisdiction due to insufficient allegations and issues beyond mere possession, requiring RTC jurisdiction.
A

Case Summary (G.R. No. 198531)

Factual Background

On September 14, 1998, a Contract to Sell was executed between the petitioner and the respondents, whereby the respondents agreed to buy a 50,000-square meter portion of the riceland for P5 million, paying an initial down payment of P500,000, with the remaining balance payable in nine installments of P500,000 each until September 2001. The agreement stipulated that possession of the land was transferred to the respondents, subject to ensuring that they account for and deliver the harvest to the petitioner. However, the respondents failed to make the required installment payments and to deliver the corresponding harvest from the riceland.

Procedural History

On March 7, 2000, the petitioner sent a demand letter to the respondents to vacate the riceland within ten days. When this request was ignored, the petitioner filed a complaint for unlawful detainer on April 5, 2000, before the Municipal Trial Court (MTC) of Victoria, Laguna, praying for the respondents to vacate the property and for compensation of P400,000 per year for use of the property, alongside attorney's fees and litigation expenses.

The respondents filed an answer admitting the execution of the Contract to Sell but made counterclaims regarding jurisdiction and the existence of the cause of action. On August 2, 2001, the MTC ruled in favor of the petitioner, ordering the respondents to vacate and awarding compensation. The respondents appealed to the Regional Trial Court (RTC), which modified the order to a yearly compensation amount of P400,000. Subsequently, the respondents brought a petition for review before the Court of Appeals (CA).

Court of Appeals Decision

On May 13, 2003, the CA issued a decision that set aside the RTC's ruling and dismissed the complaint, asserting that the MTC lacked jurisdiction over the case. The CA concluded that the matter involved contractual obligations and rights beyond the scope of unlawful detainer suits, which typically adjudicate only possession issues. Instead, it deemed the case one incapable of pecuniary estimation, thus placing it under the exclusive original jurisdiction of the RTC.

Petitioner’s Arguments

In seeking a review of the CA's decision, the petitioner argued that the CA erred in allowing the appeal due to the lack of verification of the allegations in the linked petition. Additionally, the petitioner contended that the dismissal of the unlawful detainer complaint was unfounded since the lack of jurisdiction was incorrectly determined, and that the RTC should have affirmed the MTC's judgment regarding possession.

Respondents’ Defense

The respondents countered that the verification was merely a formal requirement and claimed that the petitioner waived this argument by failing to file a comment to their petition. They maintained that the case indeed revolved around issues incapable of precise monetary valuation, hinging on contractual rights stemming from the Contract to Sell.

Supreme Court’s Ruling

The Supreme Court dismissed the petition, affirming the CA's decision. It articulated that the issue at hand primarily involved whether the complaint could be reco

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