TOPIC: JURISDICTION, HLURB Respondent Hugo filed a Motion to Dismiss on her behalf and on behalf of

respondent Carrion, citing the grounds of lack of jurisdiction to hear the case on the
CADIMAS V. CARRION part of the RTC and estoppel and/or laches on the part of petitioner. Respondent
SECOND DIVISION, G.R. No. 180394 September 29, 2008 Hugo argued that the Housing and Land Use Regulatory Board (HLURB) has
TINGA, J.: jurisdiction over the complaint because ultimately, the sole issue to be resolved was
whether petitioner, as the owner and developer of the subdivision on which the
POINT OF THE CASE: Regular courts have jurisdiction over a complaint filed by an subject property stood, was guilty of committing unsound real estate business
ordinary seller of property (emphasis supplied). practices.

The complaint must sufficiently describe the lot as a subdivision lot and sold by the
RTC: issued an Omnibus Order, which denied the motion to dismiss. The RTC held
defendant in his capacity as a subdivision developer to fall within the purview of
that the court’s jurisdiction is not determined by the defenses set up in the answer
P.D. No. 957 and P.D. No. 1344 and thus within the exclusive jurisdiction of the
or the motion to dismiss.
HLURB (emphasis supplied).

--------------------------------------------------------------------------------------------------------------- Respondent Hugo sought a reconsideration of the omnibus order.

Meaning: If buyer is complaining against a seller for unsound real estate The RTC set the pre-trial conference of the case.
practices, it is the HLURB which has jurisdiction.

If seller is complaining, it is the RTC which holds jurisdiction (such as in this case). ***However, respondents elevated the matter to the Court of Appeals via a special
civil action for certiorari, praying that the Omnibus Order be reversed and set aside
FACTS: and that the complaint in Civil Case No. Q-04-53581 be dismissed for lack of
jurisdiction.
Petitioner Cadimas, through her attorney-in-fact, Rosales, filed the
complaint for accion reivindicatoria and damages against respondents Carrion and CA: set aside the assailed orders of the RTC and ordered the dismissal of petitioner’s
Hugo. complaint for lack of jurisdiction. Also, the Court of Appeals denied petitioner’s
motion for reconsideration.
In the complaint, petitioner averred that she and respondent Carrion were parties
to a Contract to sell, wherein petitioner sold to respondent Carrion a town house to ISSUE: WON the RTC has jurisdiction over petitioner’s complaint.
be paid in instalments. According to petitioner, Carrion had violated said contract
when she transferred ownership of the property to respondent Hugo under the guise
HELD: Yes. The RTC has jurisdiction over petitioner’s complaint.
of a special power of attorney, which authorized the latter to manage and administer
the property for and in behalf of respondent Carrion. Allegedly, petitioner asked
respondent Carrion in writing to explain the alleged violation but the latter ignored RATIO:
petitioner’s letter, prompting petitioner to demand in writing that Carrion and Hugo
vacate the property and to cancel the contract. The nature of an action and the jurisdiction of a tribunal are determined by the
material allegations of the complaint and the law at the time the action was
Then, petitioner filed a Motion to Declare Defendant Carrion In Default, alleging that commenced. Jurisdiction of the tribunal over the subject matter or nature of an
despite the service of summons and a copy of the complaint, Carrion failed to file a action is conferred only by law and not by the consent or waiver upon a court which,
responsive pleading within the reglementary period. otherwise, would have no jurisdiction over the subject matter or nature of an action.
Reading Section 1 of Presidential Decree (P.D.) No. 1344 which enumerates the It is an elementary rule of procedural law that jurisdiction of the court over the
regulatory functions of the HLURB together with its preamble shows that the NHA subject matter is determined by the allegations of the complaint irrespective of
or the HLURB has jurisdiction over complaints arising from contracts between the whether or not the plaintiff is entitled to recover upon all or some of the claims
subdivision developer and the lot buyer or those aimed at compelling the subdivision asserted therein. As a necessary consequence, the jurisdiction of the court cannot
developer to comply with its contractual and statutory obligations to make the be made to depend upon the defenses set up in the answer or upon the motion to
subdivision a better place to live in. dismiss, for otherwise, the question of jurisdiction would almost entirely depend
upon the defendant. What determines the jurisdiction of the court is the nature of
Nothing in the complaint or in the contract to sell suggests that petitioner is the the action pleaded as appearing from the allegations in the complaint. The
proper party to invoke the jurisdiction of the HLURB. There is nothing in the averments in the complaint and the character of the relief sought are the matters to
allegations in the complaint or in the terms and conditions of the contract to sell that be consulted. Thus, the allegations in respondents’ motion to dismiss on the
would suggest that the nature of the controversy calls for the application of either unsound real estate business practices allegedly committed by petitioner, even if
P.D. No. 957 or P.D. No. 1344 insofar as the extent of the powers and duties of the proved to be true, cannot serve to oust the RTC of its jurisdiction over actions for
HLURB is concerned. breach of contract and damages which has been conferred to it by law.

Note particularly paragraphs (b) and (c) of Sec. 1, P.D. No. 1344 as worded, where SECTION 1. In the exercise of its functions to regulate the real
the HLURB’s jurisdiction concerns cases commenced by subdivision lot or estate trade and business and in addition to its powers provided
condominium unit buyers. As to paragraph (a), concerning "unsound real estate for in Presidential Decree No. 957, the National Housing Authority
practices," the logical complainants would be the buyers and customers against the shall have exclusive jurisdiction to hear and decide cases of the
sellers (subdivision owners and developers or condominium builders and realtors), following nature:
and not vice versa.
A. Unsound real estate business practices;
The complaint does not allege that petitioner is a subdivision lot buyer. The contract
to sell does not contain clauses which would indicate that petitioner has obligations B. Claims involving refund and any other claims filed by
in the capacity of a subdivision lot developer, owner or broker or salesman or a subdivision lot or condominium unit buyer against the
person engaged in real estate business. From the face of the complaint and the project owner, developer, dealer, broker, or salesman;
contract to sell, petitioner is an ordinary seller of an interest in the subject property and
who is seeking redress for the alleged violation of the terms of the contract to sell.
Petitioner’s complaint alleged that a contract to sell over a townhouse was entered C. Cases involving specific performance of contractual
into by and between petitioner and respondent Carrion and that the latter breached and statutory obligations filed by buyers of subdivision
the contract when Carrion transferred the same to respondent Hugo without lot or condominium unit against the owner, developer,
petitioner’s consent. Thus, petitioner sought the cancellation of the contract and the dealer or salesman.
recovery of possession and ownership of the town house. Clearly, the complaint is
well within the jurisdiction of the RTC.

On Respondent’s contention:

Respondents claim that the resolution of the case ultimately calls for the
interpretation of the contract to sell and the determination of whether petitioner is
guilty of committing unsound real estate business practices, thus, the proper forum
to hear and decide the matter is the HLURB. The argument does not impress.