CA dismissed Virgilio Briones' complaint challenging the foreclosure of his property, claiming the case must be heard in Makati per the contract. However, Briones argued the contracts were forged. The Supreme Court held that CA gravely abused its discretion by dismissing the case outright based on venue. While contracts can stipulate venue, this stipulation did not clearly require exclusive venue in Makati. As Briones contested the contracts' validity, claiming fraud, he could not be expected to comply with the disputed venue stipulation, as that would imply validating the contracts. The dismissal was overturned and Briones' complaint was ordered reinstated.
CA dismissed Virgilio Briones' complaint challenging the foreclosure of his property, claiming the case must be heard in Makati per the contract. However, Briones argued the contracts were forged. The Supreme Court held that CA gravely abused its discretion by dismissing the case outright based on venue. While contracts can stipulate venue, this stipulation did not clearly require exclusive venue in Makati. As Briones contested the contracts' validity, claiming fraud, he could not be expected to comply with the disputed venue stipulation, as that would imply validating the contracts. The dismissal was overturned and Briones' complaint was ordered reinstated.
CA dismissed Virgilio Briones' complaint challenging the foreclosure of his property, claiming the case must be heard in Makati per the contract. However, Briones argued the contracts were forged. The Supreme Court held that CA gravely abused its discretion by dismissing the case outright based on venue. While contracts can stipulate venue, this stipulation did not clearly require exclusive venue in Makati. As Briones contested the contracts' validity, claiming fraud, he could not be expected to comply with the disputed venue stipulation, as that would imply validating the contracts. The dismissal was overturned and Briones' complaint was ordered reinstated.
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committed grave abuse of outright dismissal of his case. FACTS: Virgilio Briones filed a complaint for Nullity of Mortgage Contract, Promissory Note, Loan Agreement, Foreclosure of Mortgage, Cancellation of TCT and Damages against Cash Asia. Briones’ property was foreclosed and a writ of possession was issued to Cash Asia. He discovered that he purportedly executed a promissory note, loan agreement, and deed of real estate mortgage to Cash Asia, with a venue stipulation that all legal actions arising out of this notice in connection with the REM shall be brought in or submitted only to the jurisdiction of proper courts of Makati. Briones assails the validity of the contracts signed, saying it was forged. RTC denied Cash Asia’s motion to dismiss due to lack of merit, because Briones’ cause of action was not heard. CA dismissed Briones’ complaint and that the case must be heard in courts of proper jurisdiction in Makati, as per the contract. ISSUE: W/N CA gravely abused its discretion in ordering the outright dismissal of Briones’s complaint due to improper venue HELD: YES. Written stipulations as to the venue may be restrictive in the sense that the suit may be filed only in the place agreed upon, or merely permissive in that the parties may file their suit not only in the place agreed upon but also in places fixed by law. Such stipulation must be shown to be exclusive or directive, and absence of qualifying and restrictive words, should make the stipulation deemed as merely an agreement on an additional forum and not as limiting venue. In the case, although stipulated that the case must be heard in proper courts in Makati, however, Briones’s complaint assails the validity of the subject contracts, claiming fraud, so he cannot be expected to comply with the venue, as it would be an implicit recognition of the contract’s validity. Therefore, Briones properly filed its complaint on filing