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SPS. DANILO v. SPS. PEDRO

FACTS:

The petitioners, Spouses Danilo and Cristina Decena, owned a parcel of land covered by TCT No. 134391. They entered into a Memorandum of Agreement (MOA) with the respondents, Spouses Pedro and Valeria Piquero, wherein they sold the property for P940,250.00 payable in six installments. The petitioners agreed to transfer the property to the respondents upon the execution of the MOA, with the condition that if two of the postdated checks would be dishonored, the petitioners could reconvey the property. The first two checks issued were dishonored. The petitioners filed a Complaint in the RTC of Malolos, Bulacan, seeking the annulment of the sale/MOA, recovery of possession, and damages. The respondents filed a motion to dismiss the complaint, claiming improper venue and lack of jurisdiction over the property. The trial court initially denied the motion, considering the action for damages and attorney's fees as personal and thus, could be filed in Bulacan. However, upon reconsideration, the court dismissed the complaint, stating that the principal action was a real action and should have been filed in the RTC of Parañaque City where the property was located.

ISSUES:

  1. Whether the petitioners' action for damages and attorney's fees is a personal action or a real action.

  2. Whether the petitioners' second cause of action for the recovery of possession of the property can be joined with their other causes of action.

RULING:

  1. The Supreme Court ruled that the petitioners' action is a personal action. The action sought damages and attorney's fees, which are personal in nature and do not involve the recovery, possession, or title to property. Hence, the action can be filed in the RTC where the petitioners reside.

  2. The Supreme Court ruled that the petitioners' second cause of action for the recovery of possession of the property can be joined with their other causes of action. Section 5(c), Rule 2 of the Rules of Court allows the joinder of causes of action, provided that at least one of the causes of action falls within the jurisdiction of the RTC. In this case, the recovery of possession of the property is a real action which falls within the jurisdiction of the RTC.

PRINCIPLES:

  • An action for damages and attorney's fees is a personal action. It does not involve the recovery, possession, or title to property. (Personal Action)

  • The recovery of possession of property is a real action. It involves the determination of the right to possession and ownership of real property. (Real Action)

  • Section 5(c), Rule 2 of the Rules of Court allows the joinder of causes of action, provided that at least one of the causes of action falls within the jurisdiction of the court.