1636[1].) Specific performance is a remedy sought in civil court instead of money and is often used in contracts for the sale of land but can apply in other circumstances. Under current law, courts grant specific performance when they perceive that damages will be inadequate compensation. The stability of commercial transactions requires that the rights of the seller be protected just as effectively as the rights of the buyer. REGIONAL TRIAL COURT 129, as amended (BP 129). 7. (7 R. C. L., 801, citing cases.) CEB-39025 is for the recovery of a sum of money in the form of damages. But, where the primary issue is something other than the right to recover a sum of money, where the money claim is purely incidental to, or a consequence of the principal relief sought, such are actions whose subjects are incapable of pecuniary estimation, hence cognizable by the RTCs.15, Verily, what determines the nature of the action and which court has jurisdiction over it are the allegations of the complaint and the character of the relief sought.16, In our considered view, the complaint, is one incapable of pecuniary estimation; thus, one within the RTC's jurisdiction. e) Such other reliefs that the Honorable Court deems as just and equitable.8 (Italics in the original), Petitioners submitted their Answer,9 to which respondent filed its Reply.10. L-45710 (Mortgage Loan, Insolvency, Rescission, Specific Performance, Reciprocal Obligations) But the article in recognition of a negative result also provides, "whenever the promise to purchase and sell cannot be fulfilled, the provisions relative to obligations and contracts, contained in this book, shall be applicable in the respective cases to the vendor and the vendee." at 25-34; penned by Associate Justice Ma. An analysis of the factual and material allegations in the Complaint shows that there is nothing therein which would support a conclusion that respondent's Complaint is one for specific performance or rescission of contract. Specific performance is an alternative to a courts decision to award damages and it is commonly used as injunctive relief in cases involving real property or the disclosure of confidential information. Under Article 1159 of the Civil Code of the Philippines provides [sic]: 'Obligations arising .from contracts have the force of law between the contracting parties and should be complied with in good faith. No. 129, OTHERWISE KNOWN AS THE "JUDICIARY REORGANIZATION ACT OF 1980.". 431, 438 (2006), citing Black's Law Dictionary, Sixth Centennial Edition, at 1138. However, as will be discussed below, breach of contract may also be the cause of action in a complaint for damages. Plaintiff appealed questions of law. Philippine cases have so held. Category: Civil Pro Se Forms. The nearest approach to the idea has been, with reference to merchandise, in a decision to the effect that if the purchaser refuses without lawful reason to accept delivery when tendered by the seller in conformity with the contract of sale, the seller may elect to enforce compliance or to rescind. 2 See Pacmac, Inc. v. Intermediate Appellate Court, 234 Phil. In the case for damages, however, the court that has jurisdiction depends upon the total amount of the damages claimed. (Freeman vs. Paulson [1909], 107 Minn., 64; Migatz vs. Stieglitz [1905], 166 Ind., 362; Robinson vs. Appleton [1888], 124 Ill., 276; Hodges vs. Kowing [1889], 58 Conn., 12; Curtis Land & Loan Co. vs. The excuse of the defendants is that they do not now have the money to pay the first installment. The undersigned concurs in the result, but nevertheless believes that all the costs of this action and half of those of the first ought to be paid by the defendants. The appellant shall recover costs of both instances. ENTITLED "AN ACT EXPANDING THE JURISDICTION OF THE METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL COURTS AND MUNICIPAL CIRCUIT TRIAL COURTS, AMENDING FOR THE PURPOSE BATAS PAMBANSA BLG. Article 1451 provides that, "A promise to sell or buy, when there is an agreement as to the thing and the price, entitles the contracting parties reciprocally to demand the fulfillment of the contract." CEB-39025 for lack of jurisdiction. August 31, 2012, Cebu City, Philippines.29. No. In Pacmac, Inc. v. Intermediate Appellate Court,37 this Court held that the party who unilaterally terminated the exclusive distributorship contract without any legal justification can be held liable for damages by reason of the breach committed pursuant to Article 1170. This initiative monitors the performance of government agencies, ensuring they are in line with the Aquino Administration’s commitment to good governance, by encouraging excellence performance … Rescission may also refer to a remedy granted by law to the contracting parties and sometimes even to third persons in order to secure reparation of damages caused them by a valid contract; by means of restoration of things to their condition in which they were prior to the celebration of the contract.27, In a line of cases, this Court held that –, 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. The particular action is for the specific performance of a contract for the sale and purchase of real estate. Defendant Ida Pajares is of legal age, Filipino, married with address at Hermag Village, Basak Mandaue City where she can be served with summons and other processes of the Honorable Court. Now, the courts will not make an order obviously nugatory. ----------------------------------------------------------------------------------------------------------. The power to rescind obligations is implied in reciprocal ones, in case one of the obligors should not comply with what is incumbent upon him. However, where the basic issue is something other than the right to recover a sum of money, where the money claim is purely incidental to, or a consequence of, the principal relief sought, 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 1of first instance (now Regional Trial Courts).28. A specific performance example is when a party defaults on its contractual obligation and is ordered by the court to fulfill said obligations. Article 1197 of the Civil Code, provides — If the obligation does not fix a period, but from its nature and the circumstances it can be inferred that a period was intended, the courts may fix the duration thereof. The defendant purposely ignored the letters by [sic] the plaintiff. "25 Rescission of contract under Article 1191 of the Civil Code, on the other hand, is a remedy available to the obligee when the obligor cannot comply with what is incumbent upon him.26 It is predicated on a breach of faith by the other party who violates the reciprocity between them. 7691, the amount of demand or claim in the complaint for the Regional Trial Courts (RTCs) to exercise exclusive original jurisdiction shall exceed ₱300,000.00; otherwise, the action shall fall under the jurisdiction of the Municipal Trial Courts. SAMPLES OF BASIC LEGAL FORMS I. CAPTIONS Under the Judiciary Reorganization Act of 1980 (Batas Pambansa Blg.129), all courts except the Supreme Court, the Sandiganbayan and the Court of Tax Appeals were abolished and the following Courts were created: Intermediate Appellate Court; Regional Trial Court created in 13 Judicial Regions including the National … On November 29, 1988, respondent, in a Letter of Intent addressed to Manila Bankers Life Insurance Corporation, petitioner, expressed his intention to purchase a condominium unit at Valle Verde Terraces. Under the provisions of Batas Pambansa Blg. Philippine jurisprudence, however, has never as yet been afforded an opportunity to so hold. Action for specific performance; Art. 39 AN ACT EXPANDING THE JURISDICTION OF THE METROPOLITAN TRIAL COURTS, MUNICIPAL TRIAL COURTS, AND MUNICIPAL CIRCUIT TRIAL COURTS, AMENDING FOR THE PURPOSE BATAS PAMBANSA BLG. To the contrary, respondent's counsels designated the Complaint as one for "Breach of Contract & Damages," which is a misnomer and inaccurate. Petitioners sought to reconsider, but were denied. (Hopper vs. Hopper [1863], 16 N. J. Respondent thus prayed, as fol1ows: WHEREFORE, premises considered, by reason of the above-mentioned breach of the subject dealer contract agreement made by the defendant, it is most respectfully prayed of the Honorable Court to order the said defendant to pay the following incidental and consequential damages to the plaintiff, to wit: a) TWO HUNDRED THOUSAND PESOS (PHP200,000.00) plus legal interest as incidental and consequential [sic] for violating Articles IV and XVI of the Remarkable Laundry Dealer Contract dated 08 September 2011. b) Thirty Thousand Pesos (₱30,000.00) as legal expenses. 1165, par. 62, 68 (2002). T-8,337 7 (TCT T-8,337); that by virtue of a private handwritten document, 8 Sejas sold said parcel of land to them in 1982; that thereafter, they took possession of the … Other portions of the Civil Code not called to our attention by the appellant, notably articles 1096, 1098, 1124 and 1451, recognize what is denominated in the common law as Specific Performance. An extraordinary equitable remedy that compels a party to execute a contract according to the precise terms agreed upon or to execute it substantially so that, under the circumstances, justice will be done between the parties. Plaintiff, by counsels, to the Honorable Court most respectfully states THAT: 1. Republic of the PhilippinesSUPREME COURTManila, G.R. 129, OTHERWISE KNOWN AS THE 'JUDICIARY REORGANIZATION ACT OF 1980. SPOUSES ROMEO PAJARES and IDA T. PAJARES, Petitioners The property was to be mortgaged to the plaintiff to secure the payment of this balance of P8,000. It should be recalled that the principal obligation of petitioners under the Remarkable Laundry Dealership Contract is to act as respondent's dealer outlet. Just as surely should the plaintiff who has lived up to his bargain and who has been put to expense to do so, be permitted to coerce the defendant into going through with the contract. for rescission of contract. as one for "'Breach of Contract & The cessation of operation by the defendant, which is tantamount to gross infraction to [sic] the subject contract, resulted to [sic] incidental damages amounting to Two Hundred Thousand Pesos (PHP200,000.00). Respondent's complaint denominated Breach of contract may give rise to an action for specific performance or rescission of contract.1 It may also be the cause of action in a complaint for damages filed pursuant to Art. The action is usually one that has been previously detailed in a contract. (Attached and marked as Annex "C" to "C-2" are the Demand Letters dated May 2, 2012, June 2, 2012 and June 19, 2012 respectively.). 26 Art. T. L. McGirr for appellees. If the doctrine of mutuality of remedy is to apply, the vendor should likewise be entitled to similar relief. Plaintiff Remarkable Laundry and Dry Cleaning Services, is a sole proprietorship business owned by Archemedes Solis with principal office address at PREDECO CMPD AS-Ostechi Bldg. Eddy Ng Kok Wei, respondent, is a Singaporean businessman who ventured into investing in the Philippines. the costs will generally go to the prevailing party, that is, to the appellant." In ruling that respondent's Complaint is incapable of pecuniary estimation and that the RTC has jurisdiction, the CA comported itself with the following ratiocination: A case for breach of contract [sic] is a cause of action either for specific performance or rescission of contracts. After negotiating for some time, it was agreed that the defendants would pay plaintiff the sum of P10,000 for the land, P2,000 of which was to be handed over upon the signing of the deed, and the balance of P8,000, paid in monthly installments of P150. and rescis-sion, with the payment of damages in either case. . Neither can we sustain respondent's contention that its Complaint is incapable of pecuniary estimation since it primarily seeks to enforce the penal clause contained in Article IV of the Remarkable Dealer Outlet Contract, which reads: Article IV: STANDARD REQUIRED QUOTA & PENALTIES. (Irureta Goyena vs. Tambunting [1902], 1 Phil., 490; Thunga Chui vs. Que Bentec [1903], 2 Phil., 561; Couto Soriano vs. Cortes [1907, 8 Phil., 459; Dievas vs. Co Chongco [1910], 16 Phil., 447.) Spouses Romeo Pajares and Ida T. Pajares,Defendants. The injured party may choose between the fulfillment and the rescission of the obligation, with the payment of damages in either case. specific performance nor a complaint 28 Russel v. Hon. a) TWO HUNDRED THOUSAND PESOS (PHP200,000.00) plus legal interest as incidental and consequential [damages] for violating Articles IV and XVI of the Remarkable Laundry Dealer Contract dated 08 SEP 2011; b) Thirty Thousand Pesos (₱30,000.00) as legal expenses; c) Thirty Thousand Pesos (₱30,000.00) as exemplary damages; d) Twenty Thousand Pesos (₱20,000.00) as cost of suit; e) Such other reliefs that the Honorable Court deems as just and equitable. 38 SEC. 07711 that set aside the February 19, 2013 Order5 of the RTC, Branch 17, Cebu City dismissing Civil Case No. 1.) In other words, they plead impossibility of performance. In consideration [sic] for such renewal of franchise-dealership rights, the dealer outlet must have a minimum 200 kilos on a six-day or per week pick-up for the entire duration of the contract to FREE the dealer outlet from being charge [sic] Php200/week on falling below required minimum kilos per week of laundry materials. CEB-39025 be reinstated, petitioners in their Petition and Reply20 espouse the original findings of the RTC that Civil Case No. In praying that the assailed CA dispositions be set aside and that the RTC's February 19, 2013 Order dismissing Civil Case No. 8. The plaintiff and appellant bases his argument on articles 1254, 1258, 1278, 1450, and 1279 of the Civil Code. However, breach of contract may also be the cause of action in a complaint for damages. Complaint for Specific Performance or Damages Based on a Contract to Convey Real Property. 5. Where the seller has broken a contract to deliver specific or ascertained goods, a court may, on the application of the buyer, direct that the contract shall be performed specifically, without giving the seller the option … To compel specific performance 2. Reiterating my request that you pardon us for all the trouble, I am. vs. an action for damages capable of The term specific performance refers to literal performance of ones obligations under a contract. It argued that the RTC acted with grave abuse of discretion in dismissing Civil Case No. Philippine law is, in this respect, identical with the general rule, which is that "On reversal, . The Court grants the Petition. Defendant through a letter dated April 24, 2012 said it [sic] would CEASE OPERATION. 174387, December 9, 2015, 777 SCRA60, 86. CEB-39025 for lack of jurisdiction, stating: In the instant case, the plaintiffs complaint is for the recovery of damages for the alleged breach of contract. 392, 400 (1999), citing Singson v. Isabela Sawmill, 177 Phil. Thus, it is not correct to immediately conclude, as the CA erroneously did, that since the cause of action is breach of contract, the case would only either be specific pe1formance or rescission of contract because it may happen, as in this case, that the complaint is one for damages. On or about February 26, 2015, Defendants Edwards and Lathrop, as the Seller, and Plaintiffs predecessor and assignor, Urban Blox, LLC and/or Assignee, as the Buyer, 77 Phil. (Art. CEB-39025 is for breach of contract, or one whose subject is incapable of pecuniary estimation, jurisdiction thus falls with the RTC. 12. In other words, where the complaint primarily seeks to recover damages, all claims for damages should be considered in determining which court has jurisdiction over the subject matter of the case regardless of whether they arose from a single cause of action or several causes of action.1âwphi1. So should the respective rights of the parties be. 1170 of the Civil Code.2 In the specific performance and rescission of contract cases, the subject matter is incapable of pecuniary estimation, hence jurisdiction belongs to the Regional Trial Court (RTC). Johnson, Street, Avanceña and Fisher, JJ., concur. Violation of this provision if remained unsettled for two months shall be considered as violation [wherein] Article XV of this agreement shall be applied.34, To Our mind, petitioners' responsibility under the above penal clause involves the payment of liquidated damages because under Article 222635 of the Civil Code the amount the parties stipulated to pay in case of breach are liquidated damages. Specific performance grants the plaintiff what he actually bargained for in the contract rather than damages (pecuniary compensation for loss or injury incurred through the unlawful conduct of another) for not receiving it; thus specific performance is an equitable rather than legal reme… According to respondent, said case is one whose subject matter is incapable of pecuniary estimation and that the damages prayed for therein are merely incidental thereto. 09-94 which reads: 'in cases where the claim for damages is the main cause of action ... the amount of such claim shall be considered in determining the jurisdiction of the court.'. Scribd is the world's largest social reading and publishing site. CEB-39025 for Breach of Contract and Damages is hereby REVERSED and SET ASCDE. (see Art. Legal Forms of Philippines 1. In an action for damages, the court For costs of suit; and. To recover damages in case of breach 3. agreement that is broken by one of the parties: One party either does not start or fails to finish what was agreed MARIA LOURDES P.A. --Civil Code of the Philippines, Vol. The reasoning supporting the authorities is that the performance of contracts must and should be mutual. 27 ARTICLE 1381. If, then, it is found that it is impossible for the defendants to live up to their agreement, naturally the plaintiff will rest content if for no other reason than for the protection of his financial interests. Indisputably, there has been an offer and an acceptance, and all that remained to effectuate the contract was the execution of the deed and the mortgage. .) IVAR O. AFZELIUS and his wife, PATROCINIO R. AFZELIUS, defendants-appellees. 25 Ayala Life Assurance, Inc. v.Ray Burton Development Corporation, 515 Phil. As to whether the vendor can compel the vendee to perform, which is the point before the court, the jurisprudence of the supreme court of Spain and the commentaries of Manresa do not in the least attempt to distinguish between one or the other party, the vendor or the vendee, but constantly and without exception use the word "reciprocamente." The judgment then was in favor of the defendants, dismissing the plaintiff's complaint, without prejudice to any other remedy which the plaintiff might have, and without any finding as to the costs. The article applies only where the goods to be delivered are specific or ascertained. 07711, a Petition for Certiorari14 seeking to nullify the RTC's February 19, 2013 and April 29, 2013 Orders. 5 Id. The equitable doctrine is not applied where it will be productive of great hardship. July 10, 2001 A.D.. Kirsten L. Hansen Designated Agent EarthLink Network, Inc. 3100 New York Drive Pasadena 91107 . Under the aforementioned Dealer Contract, specifically in Article XV of the same are classified as BREACH BY THE OUTLETS: 'The parties agree that the happening of any of the stipulation and events by the dealer outlet is otherwise [sic] in default of any of its obligations or violate any of the terms and condition under this agreement. … 33 Baguioro v. Barrios and Tupas Vda. 120, 124 (1946). The trial court, after finding the facts as herein stated, made application thereto of the law of Specific Performance. 2. The Complaint's body, heading, and relief are bereft of such allegation. 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 trial courts or in the courts of first instance would depend on the amount of the claim. 36 BF Corporation v. Werdenherg International Corporation, G.R. Vestil, 364 Phil. BRANCH ______ Expenses to the amount of P83.93 were incurred for these purposes. Nor does an action to recover damages for breach of contract ordinarily afford a complete and adequate remedy. Any violation of the above-mentioned provisions shall result in the immediate termination of this agreement, without prejudice to any of the RL Main Operators rights or remedies granted to it by law. However, in an April 29, 2013 Order,13 the RTC held its ground. CEB-39025. 4 Id. L-13438             November 20, 1918. This article of the Civil Code appears to have been prepared to meet exactly such a situation, to the end that the contracting parties can reciprocally compel the observance of the necessary formalities. pecuniary estimation. Specific performance is a specialized remedy used by courts when no other remedy (such as money) will adequately compensate the other party. 19. Open navigation menu . In their Complaint 6 for specific performance and damages, petitioners claimed among others that Sejas was the registered owner of a 434-square meter parcel of land in Tukuran, Zamboanga del Sur covered by Transfer Certificate of Title No. But the courts should lend their assistance to the plaintiff to compel the defendants to fulfill their obligation. When a court grants specific performance, the defendant is required to do whatever is promised. It provides: Art. 4. Jurisdiction in civil cases. During pre-trial, the issue of jurisdiction was raised, and the parties were required to submit their respective position papers. They failed to do this, and instead, the defendant, Patrocinio R. Afzelius, wrote a letter to plaintiff, as follows: MY DEAR SIR: It is with regret that I inform you that it is now absolutely impossible for us to effect the purchase of the property at Juan Luna Street, as it was our desire to do. (Attached and marked as Annex "B'' is a copy of letter of the defendant dated April 24, 2012.). Republic of the Philippines . 344, 348 (1992); Genesis Investment, Inc. v. Heirs of Ceferino Ebarasabal, 721 Phil. 951 (2007). Before closing, I request you to pardon us for the troubles we have caused you, for, in truth, we acted in good faith, but, as you will readily realize, without having the P2,000 in our hands, it will be impossible for us to effect the purchase. Specific Performance asks the court to force the opposing party into a contract that binds them to actually perform the contract at issue, rather than award damages for breach of contract. To reiterate, the defendant temporarily stopped its business operation prior to the two-year contract duration had elapsed to the prejudice of the plaintiff, which is a clear disregard of its two-year obligation to operate the business unless a pre-termination is called. at 97; penned by Judge Silvestre A. Maamo, Jr. 15 Citing Villena v. Payoyo, 550 Phil 686, 691 (2007). (Cathcart vs. Robinson [1831], 5 Pet., 264.) However, if the cause of default is due to issuance of a bouncing check the amount of such check shall earn same penalty charge with additional 5% for the first two weeks and 10% for the next two weeks and its succeeding two weeks thereafter from the date of dishonor until fully paid without prejudice to the filling of appropriate cases before the courts of justice.