Facts:
Petitioner filed a complaint with RTC Davao City for sum of money totaling 238,000 consisting of principal and interests. Respondent was declared in default for failing to answer. The RTC rendered judgment in favor of petitioner. On 28 May 2004, respondent filed a Petition for Relief from Judgment alleging that there was no effective service of summons upon her since there was no personal service of the same. The summons was received by one Mrs. Alicia dela Torre, who was not authorized to receive summons or other legal pleadings or documents on respondents behalf. Respondent attributes her failure to file an Answer to fraud, accident, mistake or excusable negligence. She claimed that she had good and valid defenses against petitioner and that the RTC had no jurisdiction as the principal amount being claimed by petitioner was only P40,000.00, an amount falling within the jurisdiction of the Municipal Trial Court (MTC).
The RTC granted the petition and set aside the previous decision for lack of jurisdiction on the part of the court, without prejudice to the case being refiled in the proper Municipal Trial Courts.
Issues:
1) Whether or not the Regional Trial Court has jurisdiction over this case for sum of money, damages and attorneys fees where the principal amount of the obligation is P40,000.00 but the amount of the demand per allegation of the complaint is P238,000.00;
2) Whether or not respondents relief from judgment is proper during the period for filing a motion for reconsideration and appeal.
Decision:
1) The case is within the jurisdiction of the RTC since the interest on the loan is a primary and inseparable component of the cause of action, not merely incidental thereto, and already determinable at the time of filing of the Complaint, it must be included in the determination of which court has the jurisdiction over petitioners case. Jurisdiction is determined by the cause of action as alleged in the complaint and not by the amount ultimately substantiated and awarded.
2) The RTC committed an error for granting the Petition for Relief from Judgment since a petition for relief under Rule 38 of the Rules of Court is only available against a final and executory judgment. In this case, judgment had not attained finality. The 15-day period to file a motion for reconsideration or appeal had not yet lapsed.
Petitioner filed a complaint with RTC Davao City for sum of money totaling 238,000 consisting of principal and interests. Respondent was declared in default for failing to answer. The RTC rendered judgment in favor of petitioner. On 28 May 2004, respondent filed a Petition for Relief from Judgment alleging that there was no effective service of summons upon her since there was no personal service of the same. The summons was received by one Mrs. Alicia dela Torre, who was not authorized to receive summons or other legal pleadings or documents on respondents behalf. Respondent attributes her failure to file an Answer to fraud, accident, mistake or excusable negligence. She claimed that she had good and valid defenses against petitioner and that the RTC had no jurisdiction as the principal amount being claimed by petitioner was only P40,000.00, an amount falling within the jurisdiction of the Municipal Trial Court (MTC).
The RTC granted the petition and set aside the previous decision for lack of jurisdiction on the part of the court, without prejudice to the case being refiled in the proper Municipal Trial Courts.
Issues:
1) Whether or not the Regional Trial Court has jurisdiction over this case for sum of money, damages and attorneys fees where the principal amount of the obligation is P40,000.00 but the amount of the demand per allegation of the complaint is P238,000.00;
2) Whether or not respondents relief from judgment is proper during the period for filing a motion for reconsideration and appeal.
Decision:
1) The case is within the jurisdiction of the RTC since the interest on the loan is a primary and inseparable component of the cause of action, not merely incidental thereto, and already determinable at the time of filing of the Complaint, it must be included in the determination of which court has the jurisdiction over petitioners case. Jurisdiction is determined by the cause of action as alleged in the complaint and not by the amount ultimately substantiated and awarded.
2) The RTC committed an error for granting the Petition for Relief from Judgment since a petition for relief under Rule 38 of the Rules of Court is only available against a final and executory judgment. In this case, judgment had not attained finality. The 15-day period to file a motion for reconsideration or appeal had not yet lapsed.
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