Title
Mercado vs. Court of Appeals
Case
G.R. No. L-44001
Decision Date
Jun 10, 1988
Long-time lessees lost stalls after sub-leasing; trial court ruled in their favor, but Supreme Court upheld finality of judgment, dismissing certiorari as improper remedy.

Case Summary (G.R. No. L-44001)

Background of the Case

This case involves a dispute over public market stalls in Baliuag, Bulacan, following the destruction of the market by fire in February 1956. Members of the Bulaong Group, having constructed the stalls at their own expense and made subsequent rental payments to the municipality, entered into sub-lease agreements with the Mercado Group in 1972. The municipality later canceled the leases of the Bulaong Group, declaring the Mercado Group as the rightful lessees based on Municipal Ordinance No. 14, which prohibited subleasing.

Summary Judgment Proceedings

The Bulaong Group filed complaints to recover their stalls and seek damages. During pre-trial proceedings, both parties stipulated many facts, leading the Mercado Group to file for summary judgment, arguing that no genuine issues of fact remained. The Bulaong Group acknowledged a single issue of fact requiring evidence—actual damages. Despite submitting affidavits to support their claims, the Mercado Group did not object or request a hearing on the matter of damages. On October 24, 1975, the trial court issued a summary judgment, rejecting the municipality's claim for ownership of the stalls, declaring the Bulaong Group as builders in good faith, and awarding them the value of their stalls with stipulations.

Appeals and Court of Appeals Rulings

Following the summary judgment, the Mercado Group filed for reconsideration, which the court denied. They subsequently attempted to appeal on January 7, 1976, but the trial court ruled that their appeal was filed outside the reglementary period. The Mercado Group then sought relief from the Court of Appeals through a special civil action of certiorari and prohibition, challenging the summary judgment and claiming denial of due process due to lack of a formal hearing on damages.

Upon review, the Court of Appeals affirmed the trial court's decision and clarified that the summary judgment procedure was valid, stating that any error in judgment regarding evidentiary appreciation did not deprive the court of jurisdiction. They emphasized that the Mercado Group’s failure to perfect the appeal within the required timeframe precluded their ability to challenge the summary judgment through certiorari.

Supreme Court Findings

The Supreme Court upheld the Court of Appeals' ruling, reiterating that the petitioners had failed to perfect an appeal from the summary judgment within the allowed period, and that any resulting errors by the trial court in its judgment did not constitute a lack of jurisdiction. The court maintained that errors made in the exercise of jurisdiction are only correctable via appeal, not certiorari.

Determination of Builder

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