Title
Spouses Liu vs. Court of Appeals
Case
G.R. No. 238805
Decision Date
Sep 23, 2020
Spouses Liu discovered fraudulent annotations on their land title, filed for recovery, but case dismissed due to jurisdictional error; MTC, not RTC, had authority.

Case Summary (G.R. No. L-27388)

Antecedents

The conflict originated from a complaint filed by the petitioners against the private respondent, Alvin Cruz, concerning the recovery of real property, specifically a parcel of land located at Juan Luna Street, Poblacion, Davao City. The land in question was registered under Transfer Certificate of Title No. T-296879, with the petitioners claiming ownership in fee simple. The petitioners reported a lost original owner's duplicate of the title, leading to police involvement and the subsequent filing of an Affidavit of Loss, which outlined discovered fraudulent entries on the title. They alleged that their signatures were forged on an Affidavit of Recovery and a Special Power of Attorney, both of which were used to facilitate the unauthorized sale of the property to Cruz for P1,488,000.00.

Respondent's Defense

In response, the private respondent denied petitioners' claims and asserted that he was a good faith purchaser for value. He argued that he received offers for the property from third parties and claimed unbothered possession since the purchase. The private respondent also denied any wrongdoing or knowledge regarding the alleged forgeries related to the Affidavit of Recovery and Special Power of Attorney.

RTC Ruling

The Regional Trial Court (RTC) denied the private respondent's motion to dismiss on jurisdictional grounds, asserting that the assessed value of the property did not confer jurisdiction on the Municipal Trial Court (MTC). The RTC's subsequent rulings reinforced its jurisdiction over the case.

CA Decision

Upon appeal, the Court of Appeals (CA) ruled that the determination of jurisdiction was contingent on the assessed value of the property as stated in the complaint, which was P19,840.00. Consequently, the CA declared that the MTC had exclusive jurisdiction over the proceedings. The petitioner’s motion for reconsideration was subsequently denied through a resolution issued by the CA.

Issues Raised

The petitioners raised several issues including claims of grave abuse of discretion by the CA regarding the classification of the action as one incapable of pecuniary estimation and the resulting jurisdictional determinations. They contended that the RTC should retain jurisdiction over this matter.

Procedural Flaws and Legal Principles

The Supreme Court determined that the petition for certiorari was improperly filed as it should have been a verified petition for review under Rule 45, given that there was an adequate remedy through an appeal available to the petitioners. The reliance on certiorari as a remedy was characterized as a fatal procedural error, thus resulting in the dismissal of their petition for lack of merit.

Substantive Merits

On substantive review, the Supreme Court highlighted that actions for recon

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