Title
Manchester Development Corp. vs. Court of Appeals
Case
G.R. No. 75919
Decision Date
May 7, 1987
A dispute over filing fees arose when petitioners underpaid, alleging unspecified damages exceeding P78M. Court ruled jurisdiction invalid due to underpayment; amended complaint couldn’t cure defect, overturning prior leniency on fee disputes.

Case Summary (G.R. No. 75919)

Key Dates

  • Complaint filed: Prior to September 12, 1985
  • Amended complaint filed: September 12, 1985
  • Court En Banc resolution: May 7, 1987

Applicable Law

  • 1987 Philippine Constitution (effective February 1987)
  • Rules of Court on docket (filing) fees
  • Precedent: Magaspi vs. Ramolete, 115 SCRA 193

Procedural Background

  1. Petitioners filed an original complaint alleging over ₱78 million in damages but omitted any specific amount in the prayer. They paid a docket fee of only ₱410, treating the action as one for specific performance “not capable of pecuniary estimation.”
  2. Upon the Court’s order, petitioners filed an amended complaint naming an additional co-plaintiff and deleting any damage amounts in the body. After further directive, they inserted a reduced damages figure of ₱10 million in the body—but still not in the prayer.
  3. The trial court admitted the amended complaint. The Court of Appeals ruled that the filing fee must be assessed on the damages alleged in the original complaint, not the amended one.

Nature of the Dispute

  • Central Issue: Whether the filing fee must be computed based on the damages stated in the original complaint (₱78,750,000) or the amended complaint (₱10 million).
  • Related Issue: Whether an honest difference of opinion over the correct docket fee can vest jurisdiction despite under-assessment.

Contention on Filing Fee Assessment

Petitioners, invoking Magaspi vs. Ramolete, argued that the filing fee should be based on the amended complaint’s specified damages. They contended that once the case had been filed and the amended complaint admitted, the amended allegations governed fee computation.

Comparative Analysis with Magaspi vs. Ramolete

  • Magaspi involved an action for recovery of land possession with incidental damages. The trial court originally treated the damages as ancillary and levied a nominal fee. Upon amendment reducing damages, the Supreme Court held that the original honest misapprehension over fee did not oust jurisdiction; the amendment superseded and governed fee assessment.
  • In contrast, the present case was clearly a combined action for tortious damages and specific performance. No honest difference of opinion could exist regarding its monetary nature, as over ₱78 million was plainly alleged.

Court’s Findings on Jurisdiction and Filing Fee

  1. Jurisdiction vests only upon payment of the correct docket fee based on the amount of damages prayed for.
  2. The trial court never acquired jurisdiction by virtue of the ₱410 payment, nor did the amended complaint or its fee regularize the defect.
  3. All proceedings after the under-assessment are null and void.
  4. The Court of Appeals correctly ruled that the original complaint’s damages govern the filing fee, not the amended pleading.

New Rule on Pleading Requirements and Filing Fees

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