Sunday, February 8, 2015

MONSANTO V. DE GUZMAN [2014]

doctrine

“Filing the appropriate initiatory pleading and the payment of the prescribed docket fees vest a trial court with jurisdiction over the subject matter.”
nature
Petition for Review on Certiorari
facts
Flordelis B. Menzon, Regional Director of the Home Development Mutual Fund (Pag-IBIG), requested the intervention of Judge Sinforiano A. Monsanto of the RTC of Catbalogan, Samar on the alleged anomalous auction sale conducted by Sheriff De Guzman. 
According to Pag-IBIG, De Guzman previously acceded to its request to move the date of the auction sale to January 20, 2004; however, to its surprise, the sale proceeded as originally scheduled on January 15, 2004.  Pag-IBIG also claimed that the winning bid of Leoncio Lim in the amount of P500K was grossly disadvantageous to the government considering that the outstanding loan obligations of the mortgagor, Eduardo Monsanto (Eduardo), was more than the bid amount
Judge Monsanto refrained from acting on the letter considering that Eduardo is his relative; instead he re-assigned the same to Judge Sibanah E. Usman.
Judge Usman declared that Atty. Cesar Lee argued on behalf of Pag-IBIG; and that Pascual Monsanto appeared on behalf of Eduardo.  However, Judge Usman noted that no formal petition or complaint was actually filed which presents a judicial issue; moreover, the acts complained of partake of administrative matter.  Consequently, Judge Usman referred the matter to the Office of the Court Administrator (OCA) for further action.
Pascual filed with the OCAa Motion to Lift Writ of Execution and Notice to Vacate.  Pascual alleged that De Guzmanissued a Notice to Vacate; that the same is being enforced with grave threats and harassment; that the protest of Pag-IBIG remains pending with and unresolved by OCA; that the trial court did not transmit the records of the case to the OCA; that the winning bid of P500K submitted by Leoncio is disadvantangeous to the government; that Eduardo’s loan with Pag-IBIG is being proposed for restructuring; and that the writ of execution and notice to vacate would gravely prejudice their rights.  Pascual thus prayed that:
·          An order be issued lifting the Writ of Execution and the Notice to Vacate;
·          An order be issued enjoining or restraining the subject Sheriff from enforcing the said Notice to vacate; and
·          Court officials or personnel above mentioned be made to explain respecting the handling of the case
OCA directed Judge Usman to:
(1)      conduct an investigation on the missing records of ‘Home Development Mutual Fund (Pag-IBIG) vs. Eduardo Monsanto’ and to report thereon within THIRTY (30) days from notice; and
(2)      take action on (a) Items A and B of the ‘Motion to Lift Writ of Execution and Notice to Vacate’ and (b) the letter of Home Development Mutual Fund dated 18 February 2004, a copy of which is annexed to the ‘Motion to Lift Writ of Execution and Notice to Vacate’, herewith attached.
Judge Usman notified Pag-IBIG, Eduardo, and Leoncio of a hearing scheduled on June 14, 2005.14  This time, the case was captioned as “Home Development Mutual Fund (Pag-IBIG Fund), mortgagee, v. Eduardo Monsanto, mortgagor.”
Pag-IBIG informed the trial court that the loan of Eduardo had been restructured and that Eduardo had commenced paying monthly amortizations; that as a result of the restructuring, Pag-IBIG is withdrawing its Petition for Extra-judicial Foreclosure; and that it is no longer interested in pursuing an administrative action against De Guzman.
Leoncio opposed Pag-IBIG’s manifestation.Leoncio filed with Branch 27 a Manifestation withEx-Parte Motion for Issuance of Writ of Possession claiming that the reglementary period had elapsed without Eduardo redeeming the subject property; as such, he is already entitled to the issuance of a writ of possession.
On July 15, 2005, Decoroso D. Monsanto and Pascual moved to intervene in the case.Both claimed that they are co-owners and actual possessors of the subject property.
Ruling of the RTC – Branch 28
The public auction sale are in order.  The impugned Sheriff De Guzman had accordingly performed his functions.  There is no showing that he has abuse[d] his authority during the conduct of the public auction. 
Atty. Cesar E. Lee prayed that an order be issued directing de Guzmanto make the necessary notice to all concern[ed] of the fact that the mortgagee has restructured his loan with the mortgagor, and in effect, redeemed his obligation subject matter of this foreclosure proceeding.
De Guzman explained that even assuming that there was restructuring of the [mortgage] loan it is very clear that it was done after the lapse of the one (1) year redemption period and also there was no notice given to the Office of the Clerk of Court. 
Eduardo, Pascual, and Pag-IBIG filed MRs; however, the same were denied by the trial court in its August 30, 2005 Order. 
Ruling of the CA
No GAD on the part of the RTC and affirming its July 1, 2005 and August 30, 2005 Orders.

Petitioners’ Arguments
·          Pettionersargue that the ex parte motion for the issuance of a writ of possession should be under oath, and requires prior notice and hearing;
·          The mere filing of the sheriff’s certificate of sale with the Register of Deeds is not equivalent to registration as required in order for the one-year redemption period to commence;
·          PDNo. 1529 did not repeal Act No. 3135;
·          that the occupants of the subject property hold rights adverse to the mortgagor Eduardo; and that the extrajudicial foreclosure proceedings was attended by numerous irregularities.
Respondent Lim’s Arguments
·          Mere filing of the sheriff’s Certificate of Sale with the Samar Register of Deeds on March 5, 2004 was equivalent to the registration thereof;
·          Samar Registrar of Deeds assured him that mere receipt of the Certificate of Sale is tantamount to registration; he relied upon this representation and assurance in good faith; and that petitioners’ remedy is to file a separate case for recovery of ownership and possession.
issues/Ruling
The Petition is dismissed.
“Filing the appropriate initiatory pleading and the payment of the prescribed docket fees vest a trial court with jurisdiction over the subject matter.”  Section 5, Rule 1 of the Rules of Court specifically provides that “[a] civil action is commenced by the filing of the original complaint in court.”  Moreover, “[e]very ordinary civil action must be based on a cause of action.”
No proper initiatory pleading was filed before the trial court.
No formal complaint or petition was filed in court.  The case was “commenced” through a letter of Pag-IBIG asking the intervention of Executive Judge Monsanto on the alleged anomalous foreclosure sale conducted by De Guzman.
Letter could not in any way be considered as a pleading.  Section 1, Rule 6 of the Rules of Court defines pleadings as “written statements of the respective claims and defenses of the parties submitted to the court for appropriate judgment.”
Pag-IBIG’s letter could not be considered as a formal complaint or petition”
·          the parties to the case were not identified pursuant to Section 1,Rule 3 and Section 1,Rule 7.  
·          so-called claim or cause of action was not properly mentioned or specified. 
·          letter miserably failed to comply with the requirements of Rule 7, Rules of Court.  The letter bore no caption; it was not even assigned a docket number; the parties were not properly identified; the allegations were not properly set forth; no particular relief is sought; in fact, only the intervention of Executive Judge Monsanto is requested;
·          it was not signed by a counsel; and
·          most of all, there is no verification or certification against forum-shopping.
Judge Usman of Branch 28 resolved the following incidents: (1) the motion for issuance of writ of possession filed by Leoncio; and (2) the motion to lift writ of execution and notice to vacate. 
However, the said Manifestation with Ex Parte Motion for Issuance of Writ of Possession was not even filed before Branch 28; in fact, it was submitted for consideration of Branch 27.  Moreover, the Motion to Lift Writ of Execution and Notice to Vacate was filed by Pascual before the OCA; the RTC Branches 27 and 28 of Catbalogan, Samar, were only furnished copies thereof.
Judge Usman proceeded to take cognizance of the case notwithstanding his prior observation that no formal petition or complaint was actually filed and which presents a judicial issue. 
Judge Usman opined that the acts complained of partake of administrative matter and thus referred the same to the OCA for further action. 
The letter of OCA directing Judge Usman to take action on the Motion to Lift Writ of Execution and Notice to Vacate could not be interpreted as vesting Judge Usman with the authority and jurisdiction to take cognizance of the matter. 
No payment of docket fees.
No docket fees were paid before the trial court.  Section 1, Rule 141 of the Rules of Court mandates that “[u]pon the filing of the pleading or other application which initiates an action or proceeding, the fees prescribed therefor shall be paid in full.”  “It is hornbook law that courts acquire jurisdiction over a case only upon payment of the prescribed docket fee.”
In Far East Bank and Trust Company v. Shemberg Marketing Corporation:
A court acquires jurisdiction over a case only upon the payment of the prescribed fees.  The importance of filing fees cannot be gainsaid for these are intended to take care of court expenses in the handling of cases in terms of costs of supplies, use of equipment, salaries and fringe benefits of personnel, and others, computed as to man-hours used in the handling of each case.  The non-payment or insufficient payment of docket fees can entail tremendous losses to government in general and to the judiciary in particular.
RTC Branch 28 did not acquire jurisdiction over the matter/case.  All the proceedings undertaken by the trial court are null and void, and without force and effect. 

Petition denied.

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