It held as follows: In determining the jurisdiction of an action whose subject is incapable of pecuniary estimation, the nature of the principal action or remedy sought must first be ascertained. (Attached and marked as Annex "B'' is a copy of letter of the defendant dated April 24, 2012.). 344, 348 (1992); Genesis Investment, Inc. v. Heirs of Ceferino Ebarasabal, 721 Phil. CEB-39025 for lack of jurisdiction is REINSTATED. The equitable doctrine is not applied where it will be productive of great hardship. . 09-94 which reads: 'in cases where the claim for damages is the main cause of action ... the amount of such claim shall be considered in determining the jurisdiction of the court.'. Now, the courts will not make an order obviously nugatory. Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those who in any manner contravene the tenor thereof; are liable for damages. In reciprocal obligations, it is the injured party who has a right to choose between fulfillment (see Art. In this case, the total amount of demand in the complaint is only ₱280,000.00, which is less than the jurisdictional amount of the RTCs. x x x, A case for breach of contract [sic] is a cause of action either for specific performance or rescission of contracts. In praying that the assailed CA dispositions be set aside and that the RTC's February 19, 2013 Order dismissing Civil Case No. * Cases involving specific performance of contractual and statutory obligations filed by buyers of subdivision lots or condominium units against the owner, developer, dealer, broker, or salesman Jurisdiction of the Katarungang Pambarangay (Under the Local Government Code of 1991) ... 1403 (2), Civil Code of the Philippines. Should a party default on his obligation, a court may issue an order for specific performance, requiring a party to perform a particular action. 951 (2007). 7. Breach of contract may give rise to an action for specific performance or rescission of contract.1 It may also be the cause of action in a complaint for damages filed pursuant to Art. 7691,39 provides that where the amount of the demand exceeds ₱100,000.00, exclusive of interest, damages of whatever kind, attorney's fees, litigation expenses, and costs, exclusive jurisdiction is lodged with the RTC. Download Form (docx, 42.67 KB) Download Form (pdf, 1.02 MB) Form Number: Pro Se 9. An analysis of the factual and material allegations in the Complaint shows that there is nothing therein which would support a conclusion that respondent's Complaint is one for specific performance or rescission of contract. The DEALER OUTLET must have a minimum 200 kilos on a six-day or per week pick-up for the entire duration of the contract to free the dealer outlet from being charge[d] Php 200/week on falling below required minimum kilos per week of laundry materials. The reasons upon which the reversal of the judgment is based are those prescribed by section 487 of Act No. On November 29, 1988, respondent, in a Letter of Intent addressed to Manila Bankers Life Insurance Corporation, petitioner, expressed his intention to purchase a condominium unit at Valle Verde Terraces. 36 BF Corporation v. Werdenherg International Corporation, G.R. The nearest approach to the idea has been, with reference to merchandise, in a decision to the effect that if the purchaser refuses without lawful reason to accept delivery when tendered by the seller in conformity with the contract of sale, the seller may elect to enforce compliance or to rescind. 5 Id. 1 See Radio Communications of the Philippines, Inc. v.Court of Appeals, 435 Phil. So ordered. CEBU CITY. The defendants filed a general denial, alleging that the plaintiff has not sustained damages of any kind or character, and praying that the case be dismissed at the cost of the plaintiff. Ramon Fernandez for appellant. Damages" is neither an action for L-13438 November 20, 1918. 62, 68 (2002). 42 GUIDELINES IN THE IMPLEMENTATION OF REPUBLIC ACT NO. If the doctrine of mutuality of remedy is to apply, the vendor should likewise be entitled to similar relief. 07711 that set aside the February 19, 2013 Order5 of the RTC, Branch 17, Cebu City dismissing Civil Case No. On or about February 26, 2015, Defendants Edwards and Lathrop, as the Seller, and Plaintiffs predecessor and assignor, Urban Blox, LLC and/or Assignee, as the Buyer, In consideration [sic] for such renewal of franchise-dealership rights, the dealer outlet must have a minimum 200 kilos on a six-day or per week pick-up for the entire duration of the contract to FREE the dealer outlet from being charge [sic] Php200/week on falling below required minimum kilos per week of laundry materials. . (Irureta Goyena vs. Tambunting [1902], 1 Phil., 490; Thunga Chui vs. Que Bentec [1903], 2 Phil., 561; Couto Soriano vs. Cortes [1907, 8 Phil., 459; Dievas vs. Co Chongco [1910], 16 Phil., 447.) Specific Performance asks the court to force the opposing party into a contract that binds them to actually perform the contract at issue, rather than award damages for breach of contract. The Complaint's body, heading, and relief are bereft of such allegation. Plaintiff was, and still is, willing to execute the deed in accordance with the terms agreed upon with the defendants. Under the provisions of Batas Pambansa Blg. Scribd is the world's largest social reading and publishing site. The plaintiff and appellant bases his argument on articles 1254, 1258, 1278, 1450, and 1279 of the Civil Code. WHEREFORE, the Petition is GRANTED and the December 11, 2013 Decision and March 19, 2014 Resolution of the Court of Appeals in CA-G.R. SAMPLES OF BASIC LEGAL FORMS I. CAPTIONS Under the Judiciary Reorganization Act of 1980 (Batas Pambansa Blg.129), all courts except the Supreme Court, the Sandiganbayan and the Court of Tax Appeals were abolished and the following Courts were created: Intermediate Appellate Court; Regional Trial Court created in 13 Judicial Regions including the National … 12. The reasoning supporting the authorities is that the performance of contracts must and should be mutual. Acquires personal right to the fruits of the thing from the time the obligation to deliver arises 4. Nevertheless, as the civil law and the common law seem to arrive at the same goal on this subject, we should at least notice as persuasive authority the jurisprudence of the United States and Great Britain. Interior Land Co. [1908], 137 Wis., 341; The Maryland Clay Co. vs. Simpers [1903], 96 Md., 1; Old Colony R. Corp. vs. Evans [1856], 6 Gray, 25; Raymond vs. San Gabriel rec. About the month of December, 1916, the defendants made a proposition to the plaintiff for the purchase of this property. In an action for damages, the court In their Complaint 6 for specific performance and damages, petitioners claimed among others that Sejas was the registered owner of a 434-square meter parcel of land in Tukuran, Zamboanga del Sur covered by Transfer Certificate of Title No. But the article in recognition of a negative result also provides, "whenever the promise to purchase and sell cannot be fulfilled, the provisions relative to obligations and contracts, contained in this book, shall be applicable in the respective cases to the vendor and the vendee." CEB-39025 for lack of jurisdiction. To the contrary, respondent's counsels designated the Complaint as one for "Breach of Contract & Damages," which is a misnomer and inaccurate. The complaint sought the award of ₱200,000.00 as incidental and consequential damages; the amount of ₱30,000.00 as legal expenses; the amount of ₱30,000.00 as exemplary damages; and the amount of ₱20,000.00 as cost of the suit, or for the total amount of ₱280,000.00 as damages. . As such, since there exist no courts of equity and no equity jurisprudence in this jurisdiction, the authority arising from the common law is not of binding force in the Philippines. Decree of specific performance is discretionary relief. Where the seller has broken a contract to deliver specific or ascertained goods, a court may, on the application of the buyer, direct that the contract shall be performed specifically, without giving the seller the option … However, as will be discussed below, breach of contract may also be the cause of action in a complaint for damages. The court shall decree the rescission claimed, unless there be just cause authorizing the fixing of a period. L-45710 (Mortgage Loan, Insolvency, Rescission, Specific Performance, Reciprocal Obligations) Vestil, 364 Phil. ", The Lawphil Project - Arellano Law Foundation. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him. Category: Civil Pro Se Forms. Otherwise, jurisdiction belongs to the Municipal Trial Court.40, The above jurisdictional amount had been increased to ₱200,000.00 on March 20, 1999 and further raised to ₱300,000.00 on February 22, 2004 pursuant to Section 5 of RA 7691.41, Then in Administrative Circular No. CEB-39025 falls within the jurisdiction of the RTC pursuant to Section 19 of Batas Pambansa Blg. Specific performance is ''[t]he remedy of requiring exact performance of a contract in the specific form in which it was made, or according to the precise terms agreed upon. at 25-34; penned by Associate Justice Ma. Jurisdiction in civil cases. On December 11, 2013, the CA rendered the assailed Decision setting aside the February 19, 2013 Order of the RTC and remanding the case to the court a quo for further proceedings. 129, OTHERWISE KNOWN AS THE "JUDICIARY REORGANIZATION ACT OF 1980.". The particular action is for the specific performance of a contract for the sale and purchase of real estate. Plaintiff Remarkable Laundry and Dry Cleaning Services, is a sole proprietorship business owned by Archemedes Solis with principal office address at PREDECO CMPD AS-Ostechi Bldg. and rescis-sion, with the payment of damages in either case. In sum, after juxtaposing Article IV of the Remarkable Dealer Outlet Contract vis-a-vis the prayer sought in respondent's Complaint, this Court is convinced that said Complaint is one for damages. If it is primarily for the recovery of a sum of money, the claim is considered capable of pecuniary estimation, and whether jurisdiction is in the municipal trial courts or in the courts of first instance would depend on the amount of the claim. 1598. For costs of suit; and. According to respondent, said case is one whose subject matter is incapable of pecuniary estimation and that the damages prayed for therein are merely incidental thereto. IVAR O. AFZELIUS and his wife, PATROCINIO R. AFZELIUS, defendants-appellees. Plaintiff, by counsels, to the Honorable Court most respectfully states THAT: 1. Nor does an action to recover damages for breach of contract ordinarily afford a complete and adequate remedy. The undersigned concurs in the result, but nevertheless believes that all the costs of this action and half of those of the first ought to be paid by the defendants. Rescission may also refer to a remedy granted by law to the contracting parties and sometimes even to third persons in order to secure reparation of damages caused them by a valid contract; by means of restoration of things to their condition in which they were prior to the celebration of the contract.27, In a line of cases, this Court held that , In determining whether an action is one the subject matter of which is not capable of pecuniary estimation this Court has adopted the criterion of first ascertaining the nature of the principal action or remedy sought. . In the event that the court does not order specific performance of the contract, for compensatory damages in the amount of $__ for breach of contract; 3. The article of the Civil code chiefly relied upon by appellant, No. This initiative monitors the performance of government agencies, ensuring they are in line with the Aquino Administration’s commitment to good governance, by encouraging excellence performance … Sometime on [sic] the second (2nd) quarter of 2012, defendant failed to follow the required standard purchase quota mentioned in article IV of the subject dealership agreement. "25 Rescission of contract under Article 1191 of the Civil Code, on the other hand, is a remedy available to the obligee when the obligor cannot comply with what is incumbent upon him.26 It is predicated on a breach of faith by the other party who violates the reciprocity between them. WHEREFORE, premises considered, the instant case is hereby DISMISSED for lack of jurisdiction. (Art. The following contracts are rescissible: (1) Those which are entered into by guardians whenever the wards whom they represent suffer lesion by more than one-fourth of the value of the things which are the object thereof; (2) Those agreed upon in representation of absentees, if the latter suffer the lesion stated in the preceding number; (3) Those undertaken in fraud of creditors when the latter cannot in any other manner collect the claims due them; (4) Those which refer to things under litigation if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority; (5) All other contracts specially declared by law to be subject to rescission. The RL Main Operator has the option to cancel, terminate this dealership outlet contract, at its option should [sic] in the event that there are unpaid services equivalent to a two-week minimum required number of kilos of laundry materials but not ₱8,000 worth of collectibles, for services performed by the RL Main Operator or its assigned Franchise Outlet, unpaid bills on ordered and delivered support products, falling below required monthly minimum number of kilos. August 31, 2012, Cebu City, Philippines.29. An action for rescission of contract, as a counterpart of an action for specific performance, is incapable of pecuniary estimation, and therefore falls under the jurisdiction of the RTC.17, Thus, the totality of damages principle finds no application in the instant case since the same applies only when damages is principally and primarily demanded in accordance with the specification in Administrative Circular No. To reiterate, the defendant temporarily stopped its business operation prior to the two-year contract duration had elapsed to the prejudice of the plaintiff, which is a clear disregard of its two-year obligation to operate the business unless a pre-termination is called. Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. But the courts should lend their assistance to the plaintiff to compel the defendants to fulfill their obligation. Thus, it is not correct to immediately conclude, as the CA erroneously did, that since the cause of action is breach of contract, the case would only either be specific pe1formance or rescission of contract because it may happen, as in this case, that the complaint is one for damages. However, if the cause of default is due to issuance of a bouncing check the amount of such check shall earn same penalty charge with additional 5% for the first two weeks and 10% for the next two weeks and its succeeding two weeks thereafter from the date of dishonor until fully paid without prejudice to the filling of appropriate cases before the courts of justice. Any violation of the above-mentioned provisions shall result in the immediate termination of this agreement, without prejudice to any of the RL Main Operators rights or remedies granted to it by law. de Atas. CEB-39025 for Breach of Contract and Damages is hereby REVERSED and SET ASCDE. 129 as amended by Republic Act No. c) Thirty Thousand Pesos (₱30,000.00) as exemplary damages. 8. The property was to be mortgaged to the plaintiff to secure the payment of this balance of P8,000. Resolution grants the injured party the option to pursue, as principal actions, either a rescission or specific performance of the obligation, with payment of damages in either case. 39 AN ACT EXPANDING THE JURISDICTION OF THE METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL COURTS, AND MUNICIPAL CIRCUIT TRIAL COURTS, AMENDING FOR THE PURPOSE BATAS PAMBANSA BLG. . The Code of Civil Procedure in its Chapter XXI entitled "Costs in the Several Courts" states in section 487 that "Costs shall ordinarily be allowed to the prevailing party as a matter of course . . In the language of Chief Justice Marshall, "The right of a vendor to come into a court of equity to enforce a specific performance is unquestionable." 2. He may also seek rescission even after he has chosen fulfillment, if the latter should become impossible. About These Forms In General. July 10, 2001 A.D.. Kirsten L. Hansen Designated Agent EarthLink Network, Inc. 3100 New York Drive Pasadena 91107 Actions for specific performance of contracts have been expressly pronounced to be exclusively cognizable by courts of first instance: De Jesus vs. Judge Garcia, L-26816, February 28, 1967; Manufacturer's Distributors, Inc. vs. Yu Siu Liong, L-21285, April 29, 1966. 798, 807 (2013). The American and English cases that relate to specific performance by the vendor are with a few exceptions all one way. Here we have presented a good and valid contract, bilateral in character, and free from all taint of fraud. 09-9442 this Court declared that "where the claim for damages is the main cause of action, or one of the causes of action, the amount of such claim shall be considered in determining the jurisdiction of the court." Breach of contract may also be the cause of action in a complaint for damages filed pursuant to Article 1170 of the Civil Code. 35 ARTICLE 2226. CEB-39025 for lack of jurisdiction, stating: In the instant case, the plaintiffs complaint is for the recovery of damages for the alleged breach of contract. Rather, "[b]reach of contract is a cause of action,32 but not the action or relief itself"33 Breach of contract may be the cause of action in a complaint for specific performance or rescission of contract, both of which are incapable of pecuniary estimation and, therefore, cognizable by the RTC. Respondent's complaint denominated "It is attached to an obligation in order to ensure performance and has a double function: (1) to provide for liquidated damages, and (2) to strengthen the coercive force of the obligation by the threat of greater responsibility in the event of breach."36. which has jurisdiction is determined by Expenses to the amount of P83.93 were incurred for these purposes. T. L. McGirr for appellees. MARIA LOURDES P.A. CEB-39025 is for the recovery of a sum of money in the form of damages. They asserted that in determining jurisdiction over the subject matter, the allegations in the Complaint and the principal relief in the prayer thereof must be considered; that since respondent merely prayed for the payment of damages in its Complaint and not a judgment on the claim of breach of contract, then jurisdiction should be determined based solely on the total amount of the claim or demand as alleged in the prayer; that while breach of contract may involve a claim for specific performance or rescission, neither relief was sought in respondent's Complaint; and, that respondent "chose to focus his [sic] primary relief on the payment of damages,"21 which is "the true, actual, and principal relief sought, and is not merely incidental to or a consequence of the alleged breach of contract. 1191.) The rule in nearly all jurisdictions is that specific performance may be had at the suit of the vendor of land, the vendee being decreed to accept the deed and pay the purchase price. 25 Ayala Life Assurance, Inc. v.Ray Burton Development Corporation, 515 Phil. ----------------------------------------------------------------------------------------------------------. 11. The rule of equity jurisprudence in such a case is that mere pecuniary inability to fulfill an engagement does not discharge the obligation of the contract, not does it constitute any defense to a decree for specific performance. 14. . It provides: Art. In a June 29, 2015 Resolution,19 this Court resolved to give due course to the Petition, which claims that the CA erred in declaring that the RTC had jurisdiction over respondent's Complaint which, although denominated as one for breach of contract, is essentially one for simple payment of damages. The trial court, after finding the facts as herein stated, made application thereto of the law of Specific Performance. Sections 9-25 deal with specific performance of contracts: Basic rules. In the case for damages, however, the court that has jurisdiction depends upon the total amount of the damages claimed. Complaint for Specific Performance or Damages Based on a Contract to Convey Real Property. Assailed in this Petition for Review on Certiorari3 is the December 11, 2013 Decision4 of the Court of Appeals (CA) in CA-G.R. A specific performance example is when a party defaults on its contractual obligation and is ordered by the court to fulfill said obligations. 1170. Spouses Romeo Pajares and Ida T. Pajares,Defendants. A complaint primarily seeking to (Irureta Goyena vs. Tambunting [1902], 1 Phil., 490; Thunga Chui vs. Que Bentec [1903], 2 Phil., 561; Couto Soriano vs. Cortes [1907, 8 Phil., 459; Dievas vs. Co Chongco [1910], 16 Phil., 447.) enforce the accessory obligation If, then, it is found that it is impossible for the defendants to live up to their agreement, naturally the plaintiff will rest content if for no other reason than for the protection of his financial interests. The vendee is entitled to specific performance essentially as a matter of course. 3. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial Courts in Civil Cases. The aforementioned act of unilateral cessation of operation by the defendant constitutes a serious breach to [sic] the contract because it totally, whimsically and grossly disregarded the Remarkable Laundry Dealer Outlet Contract, which resulted to [sic] failure on its part in obtaining the minimum purchase or delivery of 200 kilos per week for the entire duration of its cessation of operations. Effective on December 1, 2016. When a court grants specific performance, the defendant is required to do whatever is promised. as one for "'Breach of Contract & CEB SP No. REMARKABLE LAUNDRY AND DRY CLEANING, represented by ARCHEMEDES G. SOLIS, Respondent. Respondent thus prayed, as fol1ows: WHEREFORE, premises considered, by reason of the above-mentioned breach of the subject dealer contract agreement made by the defendant, it is most respectfully prayed of the Honorable Court to order the said defendant to pay the following incidental and consequential damages to the plaintiff, to wit: a) TWO HUNDRED THOUSAND PESOS (PHP200,000.00) plus legal interest as incidental and consequential [sic] for violating Articles IV and XVI of the Remarkable Laundry Dealer Contract dated 08 September 2011. b) Thirty Thousand Pesos (₱30,000.00) as legal expenses. To explore … 1170 of the Civil Code.2 In the specific performance and rescission of contract cases, the subject matter is incapable of pecuniary estimation, hence jurisdiction belongs to the Regional Trial Court (RTC). Hence, the present Petition. . No. Philippine cases have so held. Open navigation menu 19. Neither can we sustain respondent's contention that its Complaint is incapable of pecuniary estimation since it primarily seeks to enforce the penal clause contained in Article IV of the Remarkable Dealer Outlet Contract, which reads: Article IV: STANDARD REQUIRED QUOTA & PENALTIES. 1170 of the Civil Code.2 In the specific performance and rescission of contract cases, the subject matter is incapable of pecuniary estimation, hence jurisdiction belongs to the Regional Trial Court (RTC). It [sic] further stated that they [sic] would just notify or advise the office when they are [sic] ready for the business again making the whole business endeavor totally dependent upon their [sic] whims and caprices. vs. the following decisions of the supreme court of Spain interpretative of these articles can be noted: April 17, 1897; October 10, 1904; February 4, 1905. Specific performance is a remedy that seeks the specific enforcement of transferring ownership of the subject property as contracted for in the underlying sales contract. Philippine jurisprudence, however, has never as yet been afforded an opportunity to so hold. . (Cathcart vs. Robinson [1831], 5 Pet., 264.) Respondent filed CA-G.R. CEB-39025 be reinstated, petitioners in their Petition and Reply20 espouse the original findings of the RTC that Civil Case No. Automatic charging shall become part of the billing on the services of the dealer outlet on cases where the minimum requirements on required kilos are not met. contained in the penal clause is actually Specific performance is a remedy sought in civil court instead of money and is often used in contracts for the sale of land but can apply in other circumstances. On 08 SEP 2011, parties entered and signed a Remarkable Laundry Dealer Outlet Contract for the processing of laundry materials, plaintiff being the owner of Remarkable Laundry and the defendant being the authorized dealer of the said business. Automatic charging shall become part of the billing on the services of the dealer outlet on cases where the minimum requirements on required kilos are not met.[']. Other portions of the Civil Code not called to our attention by the appellant, notably articles 1096, 1098, 1124 and 1451, recognize what is denominated in the common law as Specific Performance.
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