Professional Documents
Culture Documents
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* SECOND DIVISION.
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SERENO, J.:
Before this Court is a Petition for Review on Certiorari
under Rule 45 of the Rules of Court, assailing the Decision
dated 31 May 20071 and Resolution dated 24 July 20072
issued by the Court of Appeals (CA).
Petitioner Paglaum Management and Development
Corporation (PAGLAUM) is the registered owner of three
parcels of land located in the Province of Cebu3 and covered
by Transfer Certificate of Title (TCT) Nos. 112488,4
112489,5 and T-68516.6 These lots are co-owned by
Benjamin B. Dy, the president of
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1 Rollo, pp. 45-53. Penned by CA Associate Justice Fernanda Lampas
Peralta and concurred in by Associate Justices Edgardo P. Cruz and
Normandie B. Pizarro.
2 Rollo, p. 55.
3 Petition, p. 5; Rollo, p. 19.
4 Rollo, pp. 75-76.
5 Rollo, pp. 73-74.
6 Rollo, pp. 77-78.
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7 Petition, p. 6; Rollo, p. 20. See also Stockholders Resolution of
PAGLAUM dated 11 December 1998, Rollo, pp. 116-117.
8 Credit Line Agreement dated 3 February 1994, Rollo, pp. 80-81; CA
Decision, p. 2, Rollo, p. 46.
9 Real Estate Mortgage dated 11 February 1994, Rollo,
pp. 173-176; Real Estate Mortgage dated 11 February 1994, Rollo, pp.
177-180; Real Estate Mortgage dated 22 April 1998, Rollo, pp. 181-184.
10 Rollo, pp. 176, 180 and 184.
11 Rollo, pp. 176 and 180.
509
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12 Rollo, p. 184.
13 Letter dated 14 March 1995 of Union Bank to HealthTech, Rollo, pp.
82-83; letter dated 11 February 1997 of Union Bank to HealthTech, Rollo,
pp. 84-85; Petition, p. 5, Rollo, p. 19; CA Decision, p. 2, Rollo, p. 46;
Restructuring Agreement dated 11 December 1998, Rollo, pp. 99-108.
14 Restructuring Agreement dated 11 December 1998, Rollo,
pp. 99-108.
15 Petition, p. 6; Rollo, p. 20.
16 Rollo, pp. 99-108.
17 Id., at p. 106.
18 Letter dated 9 October 2000, Rollo, p. 122.
510
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19 Petition, p. 8; Rollo, p. 22.
20 Petition, p. 8; Rollo, p. 22; CA Decision, p. 2, Rollo, p. 46.
21 Petition, p. 8; Rollo, p. 22.
22 Rollo, pp. 59-72.
23 Resolution dated 13 December 2001, Rollo, pp. 125-129.
24 Rollo, pp. 130-135.
25 Order dated 11 March 2003, Rollo, pp. 166-170.
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26 Order dated 19 September 2003, Rollo, p. 171-172.
27 CA Decision, Rollo, pp. 44-53.
28 Resolution dated 24 July 2007, Rollo, pp. 54-55.
29 Petition, p. 12; Rollo, p. 26.
30 Comment [on] Petition for Review on Certiorari; Rollo, pp. 260-268.
31 Comment (On the Petition for Review on Certiorari) dated 26
December 2007; Rollo, pp. 270-277.
32 258-A Phil. 336; 178 SCRA 564 (1989).
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Being a real action, the filing and trial of the Civil Case
No. 01-1567 should be governed by the following relevant
provisions of the Rules of Court (the Rules):
Rule 4
VENUE OF ACTIONS
“Section 1. Venue of real actions.—Actions affecting title to or
possession of real property, or interest therein, shall be
commenced and tried in the proper court which has
jurisdiction over the area wherein the real property
involved, or a portion thereof, is situated.
Forcible entry and detainer actions shall be commenced and
tried in the municipal trial court of the municipality or city
wherein the real property involved, or a portion thereof, is
situated.
Sec. 3. When Rule not applicable.—This Rule shall not apply
—
(a) In those cases where a specific rule or law provides
otherwise; or
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33 Id., at pp. 340-341; p. 568.
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“At the outset, we must make clear that under Section 4 (b) of
Rule 4 of the 1997 Rules of Civil Procedure, the general rules on
venue of actions shall not apply where the parties, before the
filing of the action, have validly agreed in writing on an exclusive
venue. The mere stipulation on the venue of an action, however, is
not enough to preclude parties from bringing a case in other
venues. The parties must be able to show that such
stipulation is exclusive. In the absence of qualifying or
restrictive words, the stipulation should be deemed as
merely an agreement on an additional forum, not as
limiting venue to the specified place.
x x x x x x x x x
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34 531 Phil. 318; 499 SCRA 718 (2006).
35 Id., at pp. 322-323; pp. 722-723.
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36 Real Estate Mortgage dated 11 February 1994, Rollo, p. 173; Real
Estate Mortgage dated 11 February 1994, Rollo, p. 177; Real Estate
Mortgage dated 22 April 1998, Rollo, p. 181.
515
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37 Restructuring Agreement, pp. 3-4; Rollo, pp. 101-102.
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38 Restructuring Agreement, p. 8; Rollo, p. 106.
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