Title
Philippine International Trading Corp. vs. M.V. Zileena
Case
G.R. No. 102904
Decision Date
Oct 30, 1992
Philippine International Trading Corp. sued for damaged cement shipment; RTC dismissed due to Singapore venue clause. Supreme Court ruled venue clause procedural, not jurisdictional, and respondents waived objection by submitting to RTC. Case remanded.

Case Summary (G.R. No. 102904)

Applicable Law

The case is decided under the provisions of the 1987 Philippine Constitution following the legal query regarding the proper venue for the collection case initiated by the petitioner.

Venue and Jurisdiction Dispute

The primary legal issue concerns whether the Regional Trial Court of Makati had proper venue to adjudicate the collection case, given the stipulation in the party's agreement that disputes would fall under the exclusive jurisdiction of the High Court of Singapore. The case sought to interpret this stipulation in terms of its legal implications regarding jurisdiction versus mere venue.

Events Leading to the Dispute

Following the loss of the cement bags, the petitioner filed a complaint in the Regional Trial Court, which included a request for a writ of preliminary attachment against the M/V Zileena. The court granted this request, allowing temporary relief while the case was pending. After subsequent motions and proceedings that included the respondents attempting to lift the attachment, the respondents ultimately filed a motion to dismiss the suit on multiple grounds.

Grounds for Dismissal

The respondents argued that (1) venue was improperly laid due to the contractually agreed exclusivity of jurisdiction in Singapore, (2) the petitioner's claims had been waived or extinguished as per the contractual obligations, and (3) one of the defendants had no standing as a real party-in-interest in this case. The trial court eventually dismissed the case based on these arguments.

Court's Reasoning

In reviewing the dismissal, the lower court underscored that the parties had indeed agreed that disputes would be litigated exclusively in Singapore's High Court. It emphasized that this agreement should be viewed as a stipulation of venue rather than jurisdiction, which is conferred by law. The court referenced precedents, including Lingner and Fiser GMBH vs. Intermediate Appellate Court, establishing that an agreement outlining venue does not deprive courts of jurisdiction conferred by law.

Petitioner's Position

The petitioner contested the trial court's dismissal, arguing that the provision in question was an illegal agreement attempting to oust Philippine courts of jurisdiction and that the respondents' conduct —such as seeking the lifting of the attachment—constituted a waiver of their right to contest the venue.

Court's Analysis of Waiver

The Supreme Court noted that the respondents' actions indicated a willingness to subm

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