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[CIVPRO] | [VENUE] 1

[Gab]

GO vs. UCPB
[GR NO. 156187] | [November 11, 2004] | [CHICO-NAZARIO, J.]

CASE SUMMARY Must be recit ready. Important facts and ruling of the court plus basis

DOCTRINE copy SCRA syllabus related to the topic if possible

FACTS
Petitioner Go and Looyuko are co-owners of Noahs Ark International, etc. August
1996, they applied for an Omnibus Line accommodation with UCPB in the amount
of 900k. Favorably acted upon. Secured by Real Estate Mortgages over parcels of
land in Mandaluyong. (24k and 14k square meters)
July 21, 1997 Omnibus Line accommodation was cancelled by UCPB. Go
demanded return of TCTs. UCPB refused and notarized and registered the 2 pre-
signed mortgages. UCPB on June 15, 1999, filed for extrajudicial foreclosure for
nonpayment of obligation. Auction sale set on April 11, and May 3, 2000.
Go filed complaint (in RTC Pasig) for cancellation of Real Estate mortgages and
damages with prayer for TRO and preliminary injunction against UCPB and its
officers. (Cancel mortgage and prevent sale)
UCPB, instead of filing an answer, filed a motion to dismiss. Said 1.) court has no
jurisdiction due to nonpayment of docket fees. 2.) wrong venue 3.) real-party in
interest not impleaded/no cause of action. 4.) complaint improperly verified. 5.)
petitioner guilty of forum shopping.
TC granted application for preliminary injunction. Auction sale enjoined. Also
denied Motion to Dismiss. MR denied. Questioned before CA in a petition for
certiorari.
CA set aside TC and directed TC to dismiss due to improper venue. MR of
petitioner denied.
Petition for review on certiorari on SC.

PROCEDURE SUMMARY

Action (Petition for review, appeal Decision (RTC: petition denied)


of CA decision etc.)
Go filed complaint in RTC Pasig. Lots in CA petition for certiorari granted
Mandaluyong. dismissal. MR of petitioner denied.
UCPB filed motion to dismiss for Petition for review on certiorari on SC
improper venue (real action) ruled in favor of UCPB. Improper venue.
Petition denied.
TC granted injunction. Denied UCPBs
motion to dismiss. Also denied MR.
ISSUE
1. WON Venue was proper NO

RATIO
1. WON YES because the court chever chever
a. Real action recovery of real property, or as provided for in Section 1, Rule 4,
a real action is an action affecting title to or possession of real property, or
interest therein. Venue for real actions is the same for RTCs and MTCs court
which has territorial jurisdiction over the area where the real property or any
part thereof lies.
b. Personal action is one brought for the recovery of personal property, for the
enforcement of some contract or recovery of damages for its breach, or for
the recovery of damages for the commission of an injury to the person or
property. Venue for personal actions is likewise the same for RTCs and MTCs.
Court where the plaintiff or any of the principal plaintiffs resides, or where
the defendant or any of the principal defendants resides, at the election of
the plaintiff, as indicated in Section 2 of Rule 4.
c. Controlling factor in determining venue is primary objective for which said
cases are filed:
i. Commodities Storage & Ice Plant Corp. vs. CA - an action to redeem by
the mortgage debtor affects his title to the foreclosed property.
Seasonable or not, redemption involves the title to the foreclosed
property. It is a real action.
ii. Fortune Motors vs. CA extrajudicial foreclosure of real property results
in a conveyance of the title of the property sold to the highest bidder
at the sale, an action to annul the foreclosure sale is necessarily an
action affecting the title of the property sold real action.
iii. Punsalan, Jr. vs. Vda. De Lacsamana - action for annulment of sale and
his claim for damages are closely intertwined with the issue of
ownership of the building. Recovery is primary objective. real action.
iv. Ruiz vs. J.M. Tuason Co. complaint is for specific performance yet
asked deed of sale of land be issued in his favor with TCT. Primary
objective to recover real action
v. Dr. Antonio A. Lizares, Inc. vs. Hon. Hermogenes Caluag action
praying that defendant be ordered to accept payment for lot which the
latter contracted to buy on installment with damages and to enjoin
repossession is a real action. First step to establish title.
vi. Land Tenure Admin. Vs. Hon. Higinio Macadaeg - lessee seeks to
establish an interest in an hacienda that runs with the land and one
that must be respected by the purchaser of the land even if the latter
is not a party to the original lease contract. Lessee is primarily
interested in establishing right to recover possession of land real
action.
vii. Espineli vs. Hon Santiago main relief sought was delivery of
certificate of title. It depended upon who has better right to lot in
question. As it is not possible for the court to decide the main relief,
[CIVPRO] | [VENUE] 3
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without passing upon the claim of the parties with respect to the title
to and possession of the lot in question Real action.
Carandang vs. CA - action for nullification of the mortgage documents
and foreclosure of the mortgaged property is a real action that affects
the title to the property. Thus, venue of the real action is before the
court having jurisdiction over the territory in which the property lies,
which is the Court of First Instance of Laguna.
d. Petitioner contends cancellation of mortgage is a personal action. He resides
in Pasig City so venue proper. Cited Francisco Hernandez vs. Rural Bank of
Lucena.
e. Reliance on the case is misplaced. Firstly, said case was primarily an action
to compel the mortgagee bank to accept payment of the mortgage debt and
to release the mortgage. Not expressly included in Sec. 1, Rule 4 of 1997
Rules of CIvPro. The mortgagee has not foreclosed the mortgage. The
plaintiffs' title is not in question. They are in possession of the mortgaged
lots.
f. In the case at bar, the action for cancellation of real estate mortgage filed by
herein petitioner was primarily an action to compel private respondent bank
to return to him the properties covered by TCTs No. 64070 and No. 3325 over
which the bank had already initiated foreclosure proceedings because of the
cancellation by the said respondent bank of the omnibus credit line on 21
July 1997. The prime objective is to recover said real properties.
g. Carandang distinctly articulated that Hernandez ruling does not apply where
mortgaged property has already been foreclosed. Here, and as correctly
pointed out by the appellate court, respondent bank had already initiated
extrajudicial foreclosure proceedings, and were it not for the timely issuance
of a restraining order secured by petitioner Go in the lower court, the same
would have already been sold at a public auction.
h. Asset Privatization Trust vs. CA it was succinctly stated that the prayer for
the nullification of the mortgage is a prayer affecting real property, hence, is
a real action.

DECISION - In sum, the cancellation of the real estate mortgage, subject of the
instant petition, is a real action, considering that a real estate mortgage is a
real right and a real property by itself.
Petition denied