G.R. NO. 154684 - FRANCEL REALTY CORPORATION,VS. RICARDO T. SYCIP. DECISION - Supreme Court E-Library

Ruling

accordingly dismissed by the MTC (See answer, p. 28, record). The filing of the instant case is another blatant attempt by [petitioner] to circumvent the law. For it is well-settled that where a complaint arises from the failure of a buyer [of real property] on installment basis to pay based on a right to stop monthly amortizations under Presidential Decree No. 957, as in the case at bench, the determinative question is exclusively cognizable by the Housing and Land Use Regulatory Board (HLURB) (Francel Realty Corp. v. Court of Appeals, 252 SCRA 127 [1996]). " WHEREFORE, premises considered, the decision appealed from is hereby AFFIRMED in toto ." [4] The assailed Resolution denied petitioner's Motion for Reconsideration. The Facts The CA narrated the facts as follows: "x x x [I]n November, 1989, [petitioner] and [respondent] entered into a contract to sell a house and lot covered by TCT No. T-281788. Upon execution of the contract to sell, [respondent] made a down payment of P119,700.00, which was considered as monthly rentals at the rate of P2,686.00 per month. On March 16, 1990, the townhouse subject of the contract to sell was transferred in the name of [respondent] as evidenced by TCT No. T-281788. Despite the transfer of the title in the name of [respondent], the latter refused to pay the balance of P250,000.00. By applying the down payment of P119,700.00 to defendant's monthly rental starting from December 1989, said amount has been reduced to nothing. Despite several demands made by [petitioner] to [respondent], including the demand dated December 12, 1991 made by [petitioner's] counsel, the [respondent] refused to reconvey the subject property to [petitioner]. The [petitioner] suffered actual damages in the form of repairs amounting to not less than P100,000.00 as well as moral and exemplary damages, attorney's fees and litigation expenses. x x x. "The [respondent] filed a motion to dismiss on the ground of lack of jurisdiction but the court below denied the motion stating that the ground relied upon by [respondent did not appear to be] indubitable. "Denying the material allegations of the complaint, the [respondent] again invoked the court's lack of jurisdiction over the subject matter of the case. Further, there is a pending case between the same parties and involving the same townhouse before the Housing and Land Use Regulatory Board for unsound real estate business practices. Likewise, the [respondent] justified his refusal to pay the amortizations alleging that the [petitioner] sold and delivered to him a defective townhouse unit under Sec. 3 of Presidential Decree No. [957]. "After trial, the court below dismissed the case for lack of jurisdiction." [5] Ruling of the Court of Appeals Agreeing with the trial court, the CA held that the case involved not just reconveyance and damages, but also a determination of the rights and obligations of the parties to a sale of real estate under PD 957; hence, the case fell exclusively under the