Title
Valderrama Lumber Manufacturers' Co., Inc. vs. L. S. Sarmiento, Co., Inc.
Case
G.R. No. L-18535
Decision Date
May 30, 1962
Petitioner contested jurisdiction in an ejectment case, claiming prior possession since 1958. Supreme Court ruled lower courts lacked jurisdiction due to defective complaint, nullifying proceedings and making injunction permanent.

Case Summary (G.R. No. L-18535)

Procedural and Factual Antecedents

On September 26, 1960, petitioner received written notice from counsel for L. S. Sarmiento & Co., Inc. demanding that petitioner vacate the premises within ten days on the ground that the land had already been leased by the government to respondent. Petitioner did not comply. Respondent then filed an ejectment action in the Justice of the Peace Court of Mabini, Davao, alleging entitlement as lessee and seeking petitioner’s removal.

Petitioner answered and raised affirmative defenses, including lack of jurisdiction. It asserted that it had prior, peaceful, and open possession since 1958 and that there was a pending conflict between the parties in the Bureau of Lands regarding the property, which had not yet been finally resolved.

After trial, the Justice of the Peace Court of Mabini, Davao rendered judgment against petitioner. It ordered petitioner to vacate within five days from receipt of the decision, to pay rentals at P239.82 per month from September 5, 1960 until surrender of possession, and to pay P500.00 as attorney’s fees and costs.

On motion for reconsideration and/or new trial, the Justice of the Peace Court amended the dispositive portion to require petitioner to vacate completely after the decision became final or earlier upon immediate execution of the judgment pursuant to Section 8, Rule 72 of the Rules of Court. It denied reconsideration and left the modified judgment in force.

Appeal and the Order for Immediate Execution

Petitioner appealed to the Court of First Instance of Davao by filing a timely Notice of Appeal and a supersedeas bond. The bond amount was P2,178.74, approved by the court, to stay execution of the December 15, 1960 decision in accordance with Rule 72, Section 8. Opposing counsel did not object.

During the pendency of the appeal, respondent moved for immediate execution, alleging petitioner’s failure to deposit within the first ten days of March, 1961 the monthly rent of P239.82, allegedly corresponding to February 1961. Over petitioner’s opposition, the Court of First Instance granted respondent’s motion. The Provincial Sheriff complied with the writ of execution on June 21, 1961.

Subsequently, when respondent received a Writ of Preliminary Injunction issued by the Supreme Court on June 29, 1961, respondent “allowed the petitioner the use” of the premises, as reflected in the pleadings. Respondent later filed a motion to dissolve the Supreme Court writ on July 28, 1961.

Administrative and Possessory Claims Over the Property

It was not disputed that on August 18, 1958 petitioner applied for a permit to use and occupy the log pond with the Bureau of Forestry. The District Forester of Davao permitted petitioner to construct a pier and log pond. Petitioner then introduced improvements and, starting November 3, 1958, deposited log products in the pond and shipped them for export.

Petitioner also filed a lease application with the Davao District Land Office on March 30, 1959 to clear doubts regarding the Bureau of Forestry’s jurisdiction. In January 1960, petitioner learned that Bureau of Lands surveyors were surveying the area in connection with a lease application of respondent. Petitioner protested to the Bureau of Lands, but the protest was not entertained because respondent, as successful bidder at public auction, had already been awarded the right to lease the property and petitioner’s March 30, 1959 application was not shown on the Bureau of Lands records in Manila.

On August 30, 1960, the Republic of the Philippines, represented by the Secretary of Agriculture and Natural Resources, executed a contract of lease with respondent over the property in dispute.

The Core Jurisdictional Issue

The Supreme Court framed the main issue as whether the Justice of the Peace Court of Mabini, Davao had jurisdiction over the ejectment case. Petitioner attacked jurisdiction based on alleged defects in the ejectment complaint.

Petitioner contended that the complaint was insufficient because it did not allege that the plaintiff had prior possession of the land. It further argued that the complaint did not allege that petitioner’s deprivation of possession was effected through any of the means enumerated in Section 1, Rule 72—namely force, intimidation, threats, strategy, or stealth. Petitioner also stated that the complaint did not set out any contractual relationship between the parties, nor priority of rights over the land.

Respondent countered that petitioner’s prior possession was merely by tolerance of the Republic of the Philippines and that respondent, as lessee, stepped into the lessor’s position. Respondent argued that tolerance ends upon demand, and that respondent’s demand to vacate caused petitioner to lose any right to possess thereafter.

Determinative Role of the Allegations in the Complaint

The Court held that the allegations in the complaint determined jurisdiction, citing Baguioro vs. Barrios, 77 Phil. 120. It reviewed the complaint’s allegations and noted that the complaint stated that the plaintiff was the lessee from the Republic of the Philippines of the foreshore land occupied by the defendant. It also recited that on September 5, 1960 the plaintiff demanded that the defendant vacate within ten days, asserting the plaintiff’s right to use and possess because of the lease agreement. It alleged refusal to vacate and stated that petitioner’s acts compelled the plaintiff to hire counsel.

The Court observed, however, that the complaint did not allege that plaintiff was deprived of possession by any of the means specified in Section 1, Rule 72, such that a case for forcible entry would be made. Nor did it allege that the right of possession of petitioner had terminated and that petitioner unlawfully withheld possession so as to constitute unlawful detainer. The Court emphasized that if dispossession did not occur through the enumerated means, Courts of First Instance, not justice of the peace courts, have jurisdiction, referencing the authorities cited in the decision (including 2 Moran 287, 1957 Ed.). It likewise stated that to make out detainer, the complaint must show that withholding of possession or refusal to vacate was unlawful, while not necessarily using statutory terminology, citing Co Tiamco vs. Dias, 75 Phil. 672.

Defect in the “Unlawful Withholding” Allegation

The Court found the complaint “fatally silent” on the jurisdictional requisite. Although the complaint used the word “unwarranted,” the Court held that the term was used merely as a descriptive reference to the defendant’s acts alleged earlier, and not as a characterization of the defendant’s withholding of possession as unlawful or equivalent language. Accordingly, it concluded that the Justice of the Peace Court had not acquired jurisdiction.

Because the Justice of the Peace Court lacked jurisdiction, the Court ruled that the Court of First Instance likewise did not acquire appellate jurisdiction. The orders issued and the enforcement act

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