ADDITIONAL NOTES REMEDIAL LAW

INTRODUCTION

The Congress cannot repeal, alter, or supplement rules concerning PLEADING, PRACTICE, AND PROCEDURE. The
Supreme Court now has the sole authority to promulgate rules concerning pleading, practice, and procedure in
all courts.

JURISDICTION

Court of Appeals, in its own discretion, shall have the power to try cases and conduct hearings, receive evidence,
and perform any and all acts necessary to resolve factual issues raised in cases falling within the original and
appellate jurisdiction. It includes the power to grant and conduct new trials or further proceedings.
Jurisdiction cannot be conferred by waiver.
Lack of jurisdiction may be raised at any stage even on appeal. The fact that lack of jurisdiction was raised for
the first time on appeal is of no moment. The defense of lack of jurisdiction over the subject matter may be
raised at any stage of the proceedings, even for the first time on appeal.
Jurisdiction cannot be conferred by laches or estoppel. HOWEVER, a party may be barred by laches or estoppel
from challenging the jurisdiction of the court when the petitioner themselves invoked the jurisdiction of the
court and did not ever raise the issue of the courts jurisdiction during the entire proceedings.
In ejectment cases, MTC has the jurisdiction to preliminarily determined the issue of possession.
Declaration of default: A party must file an answer or restraining order within the reglementary period even if
there is a pendency of certiorari proceedings unless he has obtained injunction suspending the proceedings. If
he did not do so, he shall be declared in default.
Jurisdiction is determined by the cause of action as alleged in the complaint and not by the amount ultimately
substantiated and awarded.
The factual allegations in a complaint should be considered in tandem with the statements and inscriptions on
the documents attached to it as annexes or integral parts. A mere reference to the attached document could
facially resolved the question on jurisdiction.

REAL ACTION
Even if the action is one for specific performance but the ultimate objection of the plaintiff is to obtain
title to real property, the action is real action capable of pecuniary estimation.
Complaint for annulment of deed of sale is a real action because the ultimate objective is to obtain title
to real property. Jurisdiction is determined by the assessed value of the real property.
Action for annulment of extrajudicial foreclosure sale of real property is in the nature of a real action
since there has been foreclosure sale and thus the action affects title to the real property.
An action for cancellation of TCT is a real action where the court has to determine which of the 2 titles
over the same lot is valid.
An action for recovery of possession of land is a real action.

INCAPABLE OF PECUNIARY ESTIMATION

The assessed value of the disputed lot is immaterial for purposes of RTCs APPELLATE JURISDICTION. All
cases decided by the MTC are generally appealable to the RTC irrespective of the amount involved.
However, if MTC had no jurisdiction, this defect cannot be cured by an appeal unless it comes within the
terms of S48 R40.
An action for injunction is incapable of pecuniary estimation. The exclusive original jurisdiction to try
cases which are incapable of pecuniary estimation is vested in the RTC.
The subject matter of actions for recission of contracts is not capable of pecuniary estimation. If the
money claim is purely incidental to, or a consequence of the principal sought, the action would be one
incapable of pecuniary estimation.
When the principal action is specific performance and payment of sum of money is only incidental, the
action is incapable of pecuniary estimation/
EXPROPRIATION CASES are incapable of pecuniary estimation. The subject of an expropriation is the
determination of the government/s right to take private property for public use. RTC has jurisdiction.
A complaint to redeem a land subject of a free patent is a civil action incapable of pecuniary estimation.
Action for declaratory relief is incapable of pecuniary estimation. RTC has jurisdiction.
Any case involving the issue of validity of a law, resolution, etc is incapable of pecuniary estimation/

CAPABLE OF PECUNIARY ESTIMATION

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 An action for quasi-delict is capable of pecuniary estimation based on the amount of the damages being
claimed.
An action to compel the assignment of shares of stock is an action for recovery of personal property.
Capable of pecuniary estimation.
An action for foreclosure of real estate mortgage is a real action capable of pecuniary estimation.
Jurisdiction depends upon the assessed value of the realty mortgaged.
An action for partition of real property is a real action capable of pecuniary estimation. The assessed
value of the realty determines the jurisdiction.
An action for consignation is capable of pecuniary estimation as the amount sought to be consigned
determines the jurisdiction.
An action to compel the assignment of shares of stock is an action for recovery of personal property.
Capable of pecuniary estimation.
AND OR.
An alternative relief for damages made the action for specific performance capable of pecuniary
estimation. (example: Specific performance to compel a builder to finish the construction of the
house or to pay him the sum of P250,00 for damages)
Cumulative relief for Specific Performance and Damages is INCAPABLE OF PECUNIARY
ESTIMATION. The claim for damages is not an equivalent of the action for specific performance
since it was prayed for as an additional rather than an alternative relief.

CASES NOT WITHIN THE EXCLUSIVE JURISDICTION OF ANY COURT/QUASI COURT

The RTC shall exercise exclusive original jurisdiction in all cases not within the exclusive jurisdiction of
any court, tribunal or person or body exercising judicial or quasi judicial functions.
Example: Boundary dispute between a municipality and an independent component city.
Example: Action involving the recognition and enforcement of a foreign judgment.

CLAIM FOR MONEY, EXCLUSIONS FROM JURISDICTIONAL AMOUNT

In computing the jurisdictional amount, DIAL-C [damages, interests, attorneys fees, litigation expenses,
and costs] are excluded.
In an action for collection of debt with interest: The accrued interest on a loan is a primary and
inseparable component of the cause of action, not merely incidental thereto. Hence, the accrued
interest must be included in the computation of the jurisdictional amount. The fact if the debtor had
agreed in writing to pay interest and accrued interest is determinable at the time of the filing of the
complaint.
As a general rule, damages of whatever kind are excluded in determining the jurisdictional amount.
EXCEPTION TO THIS ARE THE CASES where the claim for damages is the MAIN CAUSE OF ACTION (tort
cases or quasi delict) If the exception applies, the amount of such claim shall be considered in
determining the jurisdiction of the courts.
EXAMPLE: Recovery of parcel of land plus damages. Here, the claim for damages was merely
incidental to the cause of action involving the claim for recovery of possession.

SPECIAL COMMERCIAL COURTS

The matter of whether the RTC resolves an issue in the exercise of its general jurisdiction or of its
limited jurisdiction as a special court is only a MATTER OF PROCEDURE. IT HAS NOTHING TO DO WITH
THE QUESTION OF JURISDICTION. Motion to dismiss thus does not apply. The proper course of action is
to refer the case to the Executive Judge for re-docketing as a commercial case. Then, the Executive
Judge should assign the case to the only designated Special Court.
Example: Corporation case filed in RTC. It must be filed in Special Commercial Court through re-
raffling.

NULLIFICATION OF DECISION OF THE LAND REGISTRATION COURT

Under B.P. Blg. 129, CA has exclusive original jurisdiction over actions for annulment of judgments of the
RTC.

JURISDICTION OVER LABOR MATTERS

Where the claim to the principal relief sought is to be resolved not by reference to the labor laws or to
the CBA but by the general civil law, jurisdiction belongs to the REGULAR COURTS O JUSTICE; NOT THE
LABOR ARBITER OR THE NLRC.
Example: Employee obtained loans and cash advances from the company. Employee was
dismissed. Company filed a suit with the RTC to collect the loans of the employee. Such action is

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 properly filed before the RTC because what is involved is a simple loan collection case which can
be resolved by the Civil code provisions on obligations and contracts.
Example: Employer illegally dismissed the employee as the latter allegedly promoted the
products of another corporation. An illegal dismissal case by the employee should be filed
before the Labor Arbiter.
Example: In the case of indirect employer where there is no employer-employee relationship,
the Labor Arbiter was without jurisdiction. The complaint should have been filed with the
regular courts.
Example: Respondent employee resigned from Company A and started working with Company
B. Company A filed an action for injunction with the RTC praying that the respondent be
enjoined from working for Company B and that damages be awarded to it for respondents
violation of the 2-year no compete clause in the employment contract. HERE, RTC has
jurisdiction. Petitioner does not ask for any relief under the Labor Code but merely seeks to
recover damages based on Breach of contract.
Example: Employee filed a complaint for damages with the RTC for claiming that the company
abused its right by gradually deducting from her salary the amount the bank had to pay to its
depositor. RTC has jurisdiction because the employees cause of action is based on quasi-delict
or tort under Art. 19 of the Civil Court.
Example: Insurance company granted car plan to employee which should be paid within 3 years
from hiring. Employee was later on terminated from work. Insurance company brought an
action for replevin with the RTC to recover the car. RTC has jurisdiction because the action
involves the parties relationship as debtor and creditor and not as employer-employee.
Example: In case of illegal dismissal by a company in Singapore or any foreign country, Labor
Arbiter of the NLRC shall have original and exclusive jurisdiction to hear and decide claims
arising from an employer-employee relationship or by virtue of any law or contract involving
Filipino workers for overseas deployment.

DEPARTMENT OF AGRARIAN RELATIONS ADJUDICATION BOARD

Unlawful detainer case. In case of an affirmative defense of agricultural tenancy, the Court shall conduct
a preliminary hearing to determine the truth of the defense. The hearing is essential since if there is a
tenancy arrangement, then the Department of Agrarian Relations Adjudication Board (DARAB) would
have jurisdiction. If determined as so, the court should dismiss the complaint.

RULE 1 GENERAL PROVISIONS

The requirement in Art. 151 of the Family Code (earnest efforts toward a compromise involving members of the
same family prior to the filing of the petition) applies only in ordinary civil action. It does not apply to special
proceedings such as a petition for judicial settlement of estate.

COMMENCEMENT OF CIVIL ACTION

A civil action is deemed commenced by the filing of the original complaint in the court. If an additional
defendant is impleaded in a later pleading, the action is deemed commenced with regard to him on the
date of filing of later pleading.
A complaint may be filed by registered mail. The date of such payment of docket fees or mailing shall be
considered as the date of filing of the complaint.
All complaints, petitions, answers and other similar pleadings should specify the amount of damages
being prayed for NOT ONLY IN THE BODY OF THE PLEADING BUT ALSO IN THE PRAYER. Such damages
shall be considered in the assessment of the filing fees.
Any pleading that fails to comply with this requirement shall not be accepted nor admitted.
They shall be expunged from the record.
In case of supplemental complaint, docket fees should be paid at the time of the filing of the
supplemental complaint; otherwise, the supplemental complaint should e expunged.

DOCKET FEES
A court acquires jurisdiction over any case only upon the payment of the prescribed docket fee.
Where the docket fees for real action have been paid but docket fees for related claims for damages
were not, the court acquired jurisdiction over the real action. What the court should do is to expunge
claim for damages.
He court can allow the payment by instalment of the docket fee if the plaintiff pleads financial difficulty.
ESTOPPEL: One is estopped from raising the defense of non-payment of the docket fee if the party
participated in the trial. The deficiency docket fee shall be assessed as a lien on the judgment award.

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 Filing fees are intended to take care of court expenses in handling the case. The payment of said fees
cannot be made dependent on the result of the action taken.

CASES WHEN DOCKET FEES NEED NOT BE PAID AT THE COMMENCEMENT OF THE SUIT
NOTE: In numbers 1 to 4, docket fee shall be considered as lien on the judgment award.
: In numbers 5-6, petition is exempt from payment of docket fees.
1. If the damages/claims arose AFTER the filing of the complaint/initiatory pleading. OR if the court
awards damages not prayed for in the complaint.
2. INDIGENT Litigant.
3. Failure of the adverse party to TIMELY raise the issue of non-payment of docket
4. Civil action instituted with the CRIMINAL ACTION where the moral, exemplary, nominal, and
temperate damages are not specified in the complaint/information.
5. Petition for writ of AMPARO shall be exempt from payment of docket and other lawful fees.
6. Indigent Petitioner for a WRIT of HABEAS DATA exempt.