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JIMMY T. GO v. UNITED COCONUT PLANTERS BANK

FACTS:

Petitioner Jimmy T. Go and respondent United Coconut Planters Bank (UCPB) had a dispute over the cancellation of real estate mortgages. Petitioner and Alberto T. Looyuko applied for a loan with UCPB, securing it with real estate mortgages on two parcels of land under their names. UCPB canceled the loan and refused to return the titles to the mortgaged properties. UCPB subsequently notarized and registered the mortgages for foreclosure. To protect his interests, petitioner filed a complaint against UCPB seeking to cancel the real estate mortgages. UCPB moved to dismiss the complaint, citing improper venue. The trial court denied UCPB's motion, but the Court of Appeals reversed the trial court's orders and dismissed the case for improper venue. Petitioner then filed a petition for review on certiorari before the Supreme Court, challenging the Court of Appeals' decision. The main issue is whether the complaint for cancellation of the real estate mortgages is a personal or real action in terms of venue determination.

ISSUES:

  1. Whether petitioner's complaint for cancellation of real estate mortgage is a personal or real action for the purpose of determining venue.

RULING:

  1. The court ruled that petitioner's complaint for cancellation of real estate mortgage is a real action. The venue for real actions is the court which has territorial jurisdiction over the area where the real property or any part thereof lies.

PRINCIPLES:

  • In determining the venue for cases involving real property, the primary objective of the case is the controlling factor.

  • An action to redeem by the mortgage debtor affects the title to the foreclosed property, making it a real action.

  • An action to annul a foreclosure sale is a real action since it affects the title of the property sold.

  • An action for the annulment or rescission of a sale of real property is considered a real action as the primary objective is to recover the real property.

  • An action praying for the execution of a deed of sale and the issuance of a transfer certificate of title shows that the primary objective is to recover the parcel of land itself, making it a real action.

  • An action that affects title to land, even if the immediate remedy sought is payment by the defendant, is considered a real action.

  • The nature of the principal claim determines the venue, even if the standing crop is considered immovable property.

  • The determination of who has a better right to the lot in question is necessary to decide the main relief of delivering the certificate of title, making it a real action.

  • An action for cancellation of real estate mortgage is a real action because a real estate mortgage is a real right and a real property by itself.

  • An action affecting the title to the property should be commenced and tried in the place where the property is located.