Go v. Distinction Properties Development and Construction, Inc

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Go v. Distinction Properties Development and Construction, Inc.

G.R. No. 194024, 25 April 2012

Facts:
1. Philip L. Go, Pacifico Q. Lim and Andrew Q. Lim (petitioners) are
registered individual owners of condominium units in Phoenix Heights
Condominium located at H. Javier/Canley Road, Bo. Bagong Ilog,
Pasig City, Metro Manila.

2. On August 2008, petitioners, as condominium unit-owners, filed a


complaint7 before the HLURB against DPDCI for unsound business
practices and violation of the MDDR. The case was docketed as
REM- 080508-13906.

3. They alleged that DPDCI committed misrepresentation in their


circulated flyers and brochures as to the facilities or amenities that
would be available in the condominium and failed to perform its
obligation to comply with the MDDR.

4. DPDCI denied that it had breached its promises and representations


to the public concerning the facilities in the condominium. It alleged
that the brochure attached to the complaint was “a mere preparatory
draft” and not the official one actually distributed to the public, and
that the said brochure contained a disclaimer as to the binding effect
of the supposed offers therein.

5. DPDCI questioned the petitioners’ personality to sue as the action


was a derivative suit. After due hearing, the HLURB rendered its
decision8 in favor of petitioners.

6. The CA ruled that the HLURB had no jurisdiction over the complaint
filed by petitioners as the controversy did not fall within the scope of
the administrative agency’s authority under P.D. No. 957. The
HLURB not only relied heavily on the brochures which, according to
the CA, did not set out an enforceable obligation on the part of
DPDCI, but also erroneously cited Section 13 of the MDDR to support
its finding of contractual violation.

Issue:

Whether or not the HLURB has jurisdiction over the complaint filed by
petitioners.

Ruling:
Basic as a hornbook principle is that jurisdiction over the subject
matter of a case is conferred by law and determined by the
allegations in the complaint which comprise a concise statement of
the ultimate facts constituting the plaintiff’s cause of action.
The nature of an action, as well as which court or body has
jurisdiction over it, is determined based on the allegations contained
in the complaint of the plaintiff, irrespective of whether or not the
plaintiff is entitled to recover upon all or some of the claims asserted
therein. The averments in the complaint and the character of the relief
sought are the ones to be consulted.
Once vested by the allegations in the complaint, jurisdiction also
remains vested irrespective of whether or not the plaintiff is entitled to
recover upon all or some of the claims asserted therein. Thus, it was
ruled that the jurisdiction of the HLURB to hear and decide cases is
determined by the nature of the cause of action, the subject matter or
property involved and the parties.

In this case, the complaint filed by petitioners alleged causes of


action that apparently are not cognizable by the HLURB considering
the nature of the action and the reliefs sought. A perusal of the
complaint discloses that petitioners are actually seeking to nullify and
invalidate the duly constituted acts of PHCC – the April 29, 2005
Agreement27 entered into by PHCC with DPDCI and its Board
Resolution28 which authorized the acceptance of the proposed
offsetting/settlement of DPDCI’s indebtedness and approval of the
conversion of certain units from saleable to common areas. All these
were approved by the HLURB.

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