JURISDICTION OF THE MUNICIPAL TRIAL COURTS Actually, when you know the jurisdiction of the RTC, automatically you know the jurisdiction of the MTC. In criminal cases for example, sa RTC, imprisonment of more than 6 years until death penalty. So, necessarily 6 years or below, sa MTC. Same with civil cases. Summary of jurisdiction of MTC: A.) As to original jurisdiction – Section 33 B.) As to delegated jurisdiction – Section 34 C.) As to special jurisdiction – Section 35 A.) EXCLUSIVE ORIGINAL JURISDICTION OF THE MTC Sec. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial Courts in civil cases. - Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial Courts shall exercise: 1) Exclusive original jurisdiction over civil actions and probate proceedings, testate and intestate, including the grant of provisional remedies in proper cases, where the value of the personal property, estate, or amount of the demand does not exceed Two hundred thousand pesos (P200,000.00) or, in Metro Manila where such personal property, estate, or amount of the demand does not exceed four hundred thousand pesos (P400,000.00), exclusive of interest, damages of whatever kind, attorney's fees, litigation expenses, and costs, the amount of which must be specifically alleged: Provided, That interest, damages of whatever kind, attorney's fees, litigation expenses, and costs shall be included in the determination of the filing fees: Provided further, That where there are several claims or causes of actions between the same or different parties, embodied in the same complaint, the amount of the demand shall be the totality of the claims in all the causes of action, irrespective of whether the causes of action arose out of the same or different transactions. Well if you know the jurisdiction of the RTC on money claims and probate cases, automatically you will also know that of the MTC. Under the law, it is only the principal claim or the main claim which is computed. Interest, damages of whatever kind, attorneys fees, litigation expenses and cost are not included in determining the jurisdiction. Even if the amount of damages and attorney’s fees do not determine jurisdiction, they must still be specifically alleged in the complaint for the purpose of payment of docket fees. Thus, the higher the amount one is claiming the higher the filing fee. So with that , we will now go to decided cases involving docket fees. JURISPRUDENCE ON THE FILING FEE IN CIVIL CASES: Rule 111, the filing of criminal action, the civil aspect is deemed instituted. If it claims for moral and exemplary damages, the filing fees should be paid immediately. If not stated, then it will be a lien in the judgment. Compensatory damages are exempt from the filing of the fee. Technically, a complaint in a civil case is not considered as filed unless you pay the complete amount of the docket fee. Even if a complaint is filed, say, on December 1 and the payment is made only on the December 4, the complaint is deemed officially filed on the December 4 when the payment of the whole amount is effected. This is so material for the purpose of prescription. Suppose today December 1 is the last day for the filing of the complaint and the whole amount is not fully paid. ON December 2, the action is prescribed already. Thus, the court acquires no jurisdiction over the case until the filing of the fee for the whole amount is made. JBD 41 In the case of MANCHESTER DEVELOPMENT CORP. vs. CA 149 SCRA 562 FACTS: The plaintiff files a complaint and paid the docket fee but he did not specify the amount of the damages he was claiming. He contended that he is claiming for moral damages in such amount as the court will grant. Respondent contended, on the other hand, that it cannot be done, there is a necessity to state the exact amount of the damages in order to determine the correct amount of the docket fee. So the plaintiff amended the complaint and paid the balance of the docket fees. ISSUE: Whether or not the subsequent amendment cures the defect? HELD: No, the defect is incurable. Thus, the action has to be dismissed. The court acquires no jurisdiction over the case. The remedy is to re-file the complaint and pay again the complete amount of the docket fee. The prior payment made is forfeited in as much as the defect in the first complaint is incurable. So based on the MANCHESTER ruling, you cannot cure the defect by merely amending the complaints. The moment the case is filed, the court acquires jurisdiction. You cannot by yourself confer jurisdiction. Very harsh noh? However, the SC, after reflecting on what it said in the case of MANCHESTER, realized the harshness of their decision. This Manchester ruling was relaxed in the subsequent case of SUN INSURANCE OFFICE which now the governing law: SUN INSURANCE OFFICE LTD. vs. COURT OF APPEALS 170 SCRA 274 [1989] HELD: Thus, the Court rules as follows: 1. It is not simply the filing of the complaint or appropriate initiatory pleading, but the payment of the prescribed docket fee, that vests a trial court with jurisdiction over the subject matter or nature of the action. Where the filing of the initiatory pleading is not accompanied by payment of the docket fee, the court may allow payment of the fee within a reasonable time but in no case beyond the applicable prescriptive or reglementary period. 2. The same rule applies to permissive counterclaims, third party claims and similar pleadings, which shall not be considered filed until and unless the filing fee prescribed therefore is paid. The court may also allow payment of said fee within a reasonable time but also in no case beyond its applicable prescriptive or reglementary period. 3. Where the trial court acquires jurisdiction over a claim by the filing of the appropriate pleading and payment of the prescribed filing fee but, subsequently, the judgment awards a claim not specified in the pleading, or if specified the same has been left for determination by the court, the additional filing fee therefor shall constitute a lien on the judgment. It shall be the responsibility of the Clerk of Court or his duly authorized deputy to enforce said lien and assess and collect the additional fee. For example, I make a partial payment of the docket fee because of inadequacy of money. Under the SUN INSURANCE ruling, kung kulang ang bayad, huwag namang i-dismiss ang kaso! Give the party a reasonable time to pay the balance. “When the filing of the initiatory (complaint) pleading is not accompanied by the payment of the docket fees, the court may allow the payment of the fee within a reasonable time but in no case beyond the prescriptive period.” Meaning, if by the time you paid the balance, nag prescribe na ang cause of action, ah wala na! So, provided that the action has not prescribed. The same rule applies to permissive counterclaims. So this answers the question: Q: Is the defendant obliged to pay the docket fee? JBD 42 A: It DEPENDS: if the counterclaim is permissive, dapat magbayad ka. If the counterclaim is compulsory, libre yan! And the third rule laid down in Sun Insurance: if the judgment awards a claim not specified in the pleadings, the filing fee therefor shall be a lien in the judgment. It shall be the responsibility of the clerk of Court or his duly-authorized deputy to enforce the lien, assess and collect the additional fee. Q: When can this possibly happen? A: That can happen for example if I ask for damages. A man was hospitalized because of physical injuries. Nag file siya ng kaso. Sabi ng court, may damages ito. So the court acknowledged the claim of P300,000. But after the case is filed, di pa rin siya nakabayad sa hospital. After filing, marami pang gastos! So in other words he might ask from the court another P 50,000. Q: Can the court award the P 50,000? A: Yes, because the additional expenses came only after the filing of the case. The additional expenses occurred only after filing the case. So nagkulang ngayon ang docket fee. Bayaran mo, don’t dismiss the case! The Sun Insurance is a leading case on docket fee. It was followed with a third case in December 1989 which further clarified the SUN INSURANCE ruling. This is the case of TACAY vs. RTC OF TAGUM, DAVAO DEL NORTE 180 SCRA 433 [1989] NOTE: When this case was filed, wala pa yong INSURANCE. The guiding rule was still MANCHESTER. But while this was pending lumabas na yong SUN INSURANCE. FACTS: The case was for recovery of land with damages (accion publiciana). So it is not purely for damages. So how will you assess the filling fees? Based on the value of the land, binayaran ng plaintiff ang docket fee. Defendant moved to dismiss based on MANCHESTER because the plaintiff did not specify in the complaint how much damages he was claiming. Now the RTC of Tagum denies the motion to dismiss. The defendant goes to the SC citing MANCHESTER. Of course sabi ng SC wala na ang Manchester because of Sun Insurance. But here is another rule: HELD: Dalawa ang filing fee: the assessed value of the land and for the damages. There are two (2) options here: (1.) Kung nabayaran ang docket fee for the recovery of land pero wala ang para sa damages, do not dismiss the entire case! That is crazy if you will dismiss the entire case kasi nagbayad man siya ng docket fee for the recovery of the land. Just do not consider the claim for the damages. Or, (2.) second option, citing SUN INSURANCE, give him reasonable time to pay the balance. So that's the case of TACAY. “Where the action involves real property and a related claim for damages as well, the legal fees shall be assessed on the basis of both (a) the value of the property and (b) the total amount of related damages sought. The court acquires jurisdiction over the action if the filing of the initiatory pleading is accompanied by the payment of the requisite fees, or, if the fees are not paid at the time of the filing of the pleading, as of the time of full payment of the fees within such reasonable time as the court may grant, unless, of course, prescription has set in the meantime.” Now, there are other interesting cases on the issue on docket fees. FILIPINAS SHELL PETROLEUM CORP. vs. COURT OF APPEALS 171 SCRA 674 [1989] JBD 43 FACTS: Adrian dela Paz sued all oil companies (Shell, Caltex, Mobil, etc.) of the Philippines for infringement of patent with prayer for the payment of reasonable compensation for damages. According to him, these companies used in their operation a certain type of machine which he claimed he invented. His patent was infringed. Thus, all these companies are all liable to him for royalties. The estimated yearly royalty due him is P236,572. Since the violation has been for many years already, his claims reached millions. The trial court ordered him to pay P945,636.90 as docket fee. He had no money so he questioned it. So sabi rig court: “We will allow you to file the case and the docket fee is deductible from whatever judgment of damages shall be awarded by the court.” So, parang file now pay later. HELD: There is no such thing as file now pay later. No justification can be found to convert such payment to something akin to a contingent fee which would depend on the result of the case. Hindi pwede sa gobyerno yan! Example is kung matalo ka sa kaso – the case is dismissed. Tabla ang gobyerno? So, di pwede yan! “Filing fees are intended to take care of court expenses in the handling of cases in terms of cost of supplies, use of equipments, salaries and fringe benefits of personnel, etc., computed as to man hours used in handling of each case. The payment of said fees therefore, cannot be made dependent on the result of the action taken, without entailing tremendous losses to the government and to the judiciary in particular.” Alam ninyo, ang dapat sana n'yang ginawa, nag file sya ng motion to allow him to litigate as a pauper. In legal ethics, pwede yan sa abogado – yung contingent fee: “Attorney, will you handle my case? Wala akong pera. I will offer a contingent fee.” “Okay, I’ll handle your case. Pag-talo, wala kang utang. Pag panalo, kalahati sa akin.” Yan! Pwede yan. Pero sa gobyerno, wala yan because usually the judiciary gets its budget from the filing fees. LACSON vs. REYES 182 SCRA 729 FACTS: There was a case filed and then the lawyer filed a motion to direct the plaintiff to pay him his attorney’s fees – a motion for payment of attorney’s fees. So sabi ng court: “Attorney, magbayad ka ng docket fee.” “Bakit? Motion nga lang yan, may docket fee pa? Grabeeh!” HELD: No, bayad ka uli. “It may be true that the claim for attorney's fees was but an incident in the main case, still, it is not an escape valve from the payment of docket fees because as in all actions, whether separate or as an offshoot of a pending proceeding, the payment of docket fees is mandatory. The docket fee should be paid before the court would validly act on the motion.” SUSON vs. COURT OF APPEALS 278 SCRA 284 [August 21, 1997) FACTS: Mortz filed a case against Charles in Leyte. After filing, the court dismissed the case because it should be filed in Cebu. Mortz wrote a letter to the Office of the Court Administrator (OCA) asking that the docket fee paid in Leyte be considered applicable to Cebu. OCA granted his request. Charles questioned it because of the rule that the payment of docket fee is jurisdictional. HELD: “The OCA has neither the power nor the authority to exempt any party not otherwise exempt under the law or under the Rules of Court in the payment of the prescribed docket fees. It may be noteworthy to mention here that even in the Supreme Court, there are numerous instances when a litigant has had to re-file a petition previously dismissed by the Court due to a technicality (violation of a pertinent Circular), and in these JBD 44 instances, the litigant is required to pay the prescribed docket fee and not apply to the refiled case the docket fees paid in the earlier dismissed case.” “In the case at bar, in the strict sense, Mortz’s complaint cannot be deemed to have been ‘re-filed’ in Cebu City because it was not originally filed in the same court but in the RTC Leyte. Thus, when Mortz’s complaint was docketed by the clerk of court of the RTC Cebu City, it became an entirely separate case from that was dismissed by the RTC of Leyte due to improper venue. As far as the case in Cebu is concerned, while undoubtedly the order of dismissal is not an adjudication on the merits of the case, the order, nevertheless, is a final order. This means that when private respondent did not appeal therefrom, the order became final and executory for all legal intents and purposes.” DE LEON vs. COURT OF APPEALS 287 SCRA 94 [March 6, 1998] FACTS: The question for decision is whether in assessing the docket fees to be paid for the filing of an action for annulment or rescission of a contract of sale, the value of the real property, subject matter of the contract, should be used as basis, or whether the action should be considered as one which is not capable of pecuniary estimation and therefore the fee charged should be a flat rate of P400.00 as provided in Rule 141, Section 7(b)(1) of the Rules of Court. Polgas argued that an action for annulment or rescission of a contract of sale of real property is a real action and, therefore, the amount of the docket fees to be paid by Dagul should be based either on the assessed value of the property, subject matter of the action, or its estimated value as alleged in the complaint. Since Dagul alleged that the land, in which they claimed an interest as heirs, had been sold for P4,378,000.00 to Polgas, this amount should be considered the estimated value of the land for the purpose of determining the docket fees. Dagul countered that an action for annulment or rescission of a contract of sale of real property is incapable of pecuniary estimation and, so, the docket fees should be the fixed amount of P400.00 in Rule 141, Section 7(b). HELD: Dagul is correct. “In determining whether an action is one the subject matter of which is not capable of pecuniary estimation, this Court has adopted the criterion of first ascertaining the nature of the principal action or remedy sought. If it is primarily for the recovery of a sum of money, the claim is considered capable of pecuniary estimation, and whether jurisdiction is in the municipal courts or in the courts of first instance would depend on the amount of the claim. “ However, where the basic issue is something other than the right to recover a sum of money, or where the money claim is purely incidental to, or a consequence of, the principal relief sought, like in suits to have the defendant perform his part of the contract (specific performance) and in actions for support, or for annulment of a judgment or to foreclose a mortgage, this Court has considered such actions as cases where the subject of the litigation may not be estimated in terms of money, and are cognizable exclusively by courts of first instance.” “The rationale of the rule is plainly that the second class cases, besides the determination of damages, demand an inquiry into other factors which the law has deemed to be more within the competence of courts of first instance, which were the lowest courts of record at the time that the first organic laws of the Judiciary were enacted allocating jurisdiction.” “Actions for specific performance of contracts have been expressly pronounced to be exclusively cognizable by courts of first instance and no cogent reason appears, and none is here advanced by the parties, why an action for rescission (or resolution) should be differently treated, a "rescission" being a counterpart, so to speak, of ‘specific performance’.” “In both cases, the court would certainly have to undertake an investigation into facts that would justify one act or the other. No award for damages may be had in an action for rescission without first conducting an inquiry into matters which would justify the setting JBD 45 aside of a contract. Issues of the same nature may be raised by a party against whom an action for rescission has been brought, or by the plaintiff himself.” “It is, therefore, difficult to see why a prayer for damages in an action for rescission should be taken as the basis for concluding such action as one capable of pecuniary estimation — a prayer which must be included in the main action if plaintiff is to be compensated for what he may have suffered as a result of the breach committed by defendant, and not later on precluded from recovering damages by the rule against splitting a cause of action and discouraging multiplicity of suits.” “Thus, although eventually the result may be the recovery of land, it is the nature of the action as one for rescission of contract which is controlling.” “Since the action of Polgas against Dagul is solely for annulment or rescission which is not susceptible of pecuniary estimation, the action should not be confused and equated with the ‘value of the property’ subject of the transaction; that by the very nature of the case, the allegations, and specific prayer in the complaint, sans any prayer for recovery of money and/or value of the transaction, or for actual or compensatory damages, the assessment and collection of the legal fees should not be intertwined with the merits of the case and/or what may be its end result.” TOTALITY RULE Now, continuing with Section 33, it says there in paragraph [1]: “Provided further, That where there are several claims or causes of actions between the same or different parties, embodied in the same complaint, the amount of the demand shall be the totality of the claims in all the causes of action, irrespective of whether the causes of action arose out of the same or different transactions.” What do you call that rule? The TOTALITY RULE. ILLUSTRATION: Joinder of causes of action. The defendant secured from me two or more loans. Let’s say, apat na utang covered by four (4) promissory notes and all of them are due and he has not paid me any. Let's say each note covers a principal amount of P75,000. Now, I decided to file one complaint embodying my four causes of action against him although I have the option also to file four separate complaints. If you will look at the value of each claim which is P75,000 that is triable by the MTC. But if you will add the four claims that will be P300,000.00. Q: Which will prevail? The amount of each of the claim or the total? A: The total amount will prevail. So it should be filed in the RTC. That is the totality rule. Never mind that there are four (4) separate loans because the law says “irrespective of whatever the cause of action arose out of the same or different transactions.” Now in that example, there is only one plaintiff and one defendant. The plaintiff has four claims against the same defendant. Now suppose there are 4 plaintiffs suing the same defendant in what is called in procedure as joinder of causes of action and joinder of parties. EXAMPLE: There are four (4) passengers riding on a public vehicle. They were all injured when the bus met an accident and all of them were hospitalized. So after they were discharged, the four of them wanted to sue the bus company for damages arising from contract of carriage or culpa contractual. Since they hired the same lawyer, the lawyer said, “Why will I file 4 complaints? Isahin na lang. I will join them.” In effect, he joined 4 causes of action. Q: The same question will arise. What will be now the basis of jurisdiction? The claim of every plaintiff or the total claims of the 4 plaintiffs? A: The total claims. You apply the totality rule because the law says “where there are several claims or cause of action between the same or different parties.” So whether the parties are the same or the parties are different embodied in the same complaint the amount of the demand shall be the totality of the claims the totality rule applies in both situations. JBD 46 We will now go to paragraph [2] of Section 33. [2] Exclusive original jurisdiction over cases of forcible entry and unlawful detainer: Provided, That when, in such cases, the defendant raises the question of ownership in his pleadings and the question of possession cannot be resolved without deciding the issue of ownership, the issue of ownership shall be resolved only to determine the issue of possession. x x x x” This is related to the Law on Property – FORCIBLE ENTRY (recovery of physical possession, e.g. squatting) and UNLAWFUL DETAINER (e.g. you eject a lessee does not pay his rent.) – MTC lahat iyan. The two cases should not be confused with accion publiciana which is also the recovery of possession but that is a better right. Now, in unlawful detainer, the plaintiff also prays not only to eject the defendant but also to claim for back rentals or the reasonable amount of the use and occupation of the property in case of forcible entry. Q: Suppose the unpaid rentals already amount to almost half a million pesos – so, unlawful detainer plus back rentals of half a million. Where should the case be filed? A: The case should still be filed with the MTC. What determines jurisdiction is the nature of the action, and not the amount of recoverable rentals. Kahit na one (1) million pa yan, MTC pa rin yan. Q: In an action for forcible entry or unlawful detainer, can the party present evidence of ownership? A: The general rule is NO because the MTC cannot adjudicate ownership. That has to be threshed out in the proper civil action in the RTC. But if evidence of ownership is presented in the forcible entry or unlawful detainer case, it is only incidental and it is only resolved to determine the issue of possession. But the declaration of ownership is not final – that is only prima facie. The question of ownership must be litigated in a separate action in the RTC. Let us now proceed to the third paragraph of Section 33 as amended by R.A. 7691: [3] Exclusive original jurisdiction in all civil actions which involve title to, or possession of, real property or any interest therein where the assessed value of the property or interest therein does not exceed Twenty thousand pesos (P20,000.00) or, in civil actions in Metro Manila, where such assessed value does not exceed Fifty thousand pesos (P50,000.00) exclusive of interest, damages of whatever kind, attorney's fees, litigation expenses and costs: Provided, That in cases of land not declared for tax purposes, the value of such property shall be determined by the assessed value of the adjacent lots. (As amended by RA 7691) Aside from forcible entry and unlawful detainer, MTCs have now jurisdiction over other real actions like accion publiciana and accion reinvidicatoria cases where the assessed value of the land should be P20,000 or less. In Metro Manila, it is P50,000 or less. That is the amendment brought about by RA 7691 which expanded the jurisdiction of the MTC. B.) DELEGATED JURISDICTION OF THE MTC Sec. 34. Delegated Jurisdiction in Cadastral and Land Registration Cases. MetTCs, MTCs and MCTCs may be assigned by the Supreme Court to hear and determine cadastral or land registration cases covering lots where there is no controversy or opposition, or contested lots where the value of which does not exceed One hundred thousand pesos (P100,000.00), such value to be ascertained by the affidavit of the claimant or by agreement of the respective claimants if there are more than one, or from the corresponding tax declarations of the real property. Their decisions in these cases shall be appealable in the same manner as decisions of the RTCs. (As amended by RA 7691) Review: These are related to your study of Land, Titles and Deeds (The Property Registration Decree) When you file a petition for land registration, the object is to have your property registered and fall under the Torrens System of the Land Registration. Patituluhan ba! Now, what is the difference between a land registration proceeding and a cadastral proceeding? Cadastral is compulsory registration. JBD 47 Q: Now, what is this delegated jurisdiction all about? A: It refers only to cadastral and land registration cases which involve the titling of property under the Torrens system or cadastral land registration. Under the Property Registration Decree, only the RTC has authority to entertain land registration and cadastral cases. But now, Section 34 gives the Supreme Court the authority to DELEGATE MTCs to hear and decide land registration and cadastral cases under the following conditions: 1.) when there is no controversy or nobody is contesting your petition; or 2.) even if the petition is contested where the value of the land to be titled does not exceed P100,000. In which case, these MTCs can decide and their decisions are appealable directly to the CA. Para bang acting RTC sila ba. That’s what it is called delegated jurisdiction. ‘Delegate’ means it really has to be assigned to you. Now do not confuse this P100,000 (Section 34) with the P20,000 under Section 33. Section 34 deals with cadastral and land registration cases. Section 33 involves civil cases (accion publiciana, etc.) C.) SPECIAL JURISDICTION OF MTC Sec. 35. Special jurisdiction in certain cases. - In the absence of all the Regional Trial Judges in a province or city, any Metropolitan Trial Judge, Municipal Trial Judge, Municipal Circuit Trial Judge may hear and decide petitions for a writ of habeas corpus or applications for bail in criminal cases in the province or city where the absent Regional Trial Judges sit. This is what we call special jurisdiction. That only applies to two (2) types of cases: (1) Habeas corpus and (2) hearing of petitions for bail. Remember that habeas corpus is not within the jurisdiction of the MTC. It is with the RTC. Also, the hearing on petition for bail, RTC yan because the offense may be a heinous one, but under the law on criminal procedure you can file a petition for bail to have your temporary freedom while the case is going on. That’s supposed to be in the RTC. But suppose there is no available RTC judge, all of them are sick or all of them are attending a convention (this actually happened in Davao in 1990) Section 35 provides that the MTC, in the absence of RTC judges, can hear and decide on habeas corpus case petitions and applications or petitions for bail in criminal cases. So acting pa rin yan because they are urgent and the liberty of a person is at stake. That is allowed because of the urgency of the situation. There is no need for a SC authorization. However, this is only allowed in the absence of the RTC judges. But if the RTC judge comes back, he has to take over the petition. So with that we are through with the jurisdiction of our courts. So we will now proceed to remedial law proper. JBD 48