Fajutagana, Cristine Joy A.

Fact Pattern 2021

Facts
Spouses Pedro and Maria, residents of Batangas City, owned five (5) parcels of
land, one of which is located at Manila and with a building erected thereon. Bong, a
resident of Bacoor Cavite, is the lessee on the said building erected on a parcel of lot in
Manila with a monthly rent of fifty thousand pesos (P50,000) and a lease term of up to
December 2022.
Bong also obtained a loan from Spouses Pedro and Maria amounting to three
hundred twenty thousand pesos (P 320,000) with a monthly interest of five percent (5%)
payable within one year or until January 15, 2020. The term of the loan is evidence by a
notarized promissory note.
Lani, wife of Bong, and with the same residence as his husband, has a loan also
obtained from Spouses Pedro and Maria amounting to two hundred thousand pesos (P
200,000) with a monthly interest of five percent (5%) payable on December 31, 2019.

Causes of Action
Spouses Pedro and Maria has three cause of action against Bong and Lani.
1.Bong is already four (4) months delayed on his rental payments on the leased
building, amounting to two hundred thousand pesos (P200,000).
2.The loan of Bong amounting to three hundred twenty thousand pesos (P
320,000) plus its corresponding interest becomes due and demandable on January
15,2020. A letter demand was already sent by Spouses Pedro and Maria, but to no avail.
3.Also, the loan of Lani, amounting to two hundred thousand pesos (P200,000)
plus corresponding interest becomes due and demandable on December 31,2019.
Repeated demands was also sent by Spouses Pedro and Maria, but said loan remains
unpaid.

Relief that may be sought by Spouses Pedro and Maria

a. On the first cause of action
As a lessor, Spouses Pedro and Maria have the right to receive the payment from the
lessee. On the other hand, Bong, as a lessee must pay the stipulated rent. Article 1657
of the New Civil Code provides that:

Article 1657. The lessee is obliged:

(1) To pay the price of the lease according to the terms stipulated;

(2) To use the thing leased as a diligent father of a family, devoting it to the use
stipulated; and in the absence of stipulation, to that which may be inferred from the
nature of the thing leased, according to the custom of the place;

(3) To pay expenses for the deed of lease.

For failure of Bong to pay the rent amount, Spouse Pedro and Maria may ask for
the rescission of the lease contract and indemnification for damage, or only the
latter allowing the contract to remain in force as provided for in Article 1659 of the New
Civil Code to wit:
Article 1659. If the lessor or the lessee should not comply with the
obligations set forth in articles 1654 and 1657, the aggrieved party may ask for the rescission
 of the contract and indemnification for damages, or only the latter, allowing the contract to
remain in force. (1556)

Where the lessee fails to pay on time the stipulated rents, the lessor has the right to
rescind the contract, recover the unpaid rents, and eject the lessee. (Hernaez vs.
Montelibano, 34 Phil. 954 [1916]; Avila vs. Veloso, 69 Phil. 357 [1939].)

A lessor may seek rescission of a lease contract and ejectment of the lessee
simultaneously in a single action for unlawful detainer. (Dayao vs. Shell Company, 97
SCRA 407 [1980].)

b. On the second and third cause of action

Spouses Pedro and Maria have a right to demand and receive the payment of the loan
obtained by Bong and Lani amounting to P320,000 plus interest; and P 200,000 plus
interest, respectively.
For failure of Bong and Lani to pay the said loan amount after it became due and
demandable; and despite repeated demands, the creditor Spouses Pedro and Maria may
file for an Action to Recover a sum of money.

Parties
a. On the first cause of action

Spouses Pedro and Maria, as lessor, are indispensable parties as the

plaintiffs; and Bong as the lessee is the indispensable party as the defendant.

b. On the second and third cause of action

Spouses Pedro and Maria are the indispensable parties as the plaintiffs and
Bong and Lani are the indispensable parties as the defendants.
There can be a permissive joinder of parties for the second and third cause
of action, complying with the following:
a) the right to relief arises out of the same series of transaction, that is the
loan obtained by Bong and Lani respectively;

b) and there is a question of law common to all parties, which is the liability
of Bong and Lani for the loan they obtained separately.

Jurisdiction
a. On the first cause of action
Since the relief that may be sought by Spouses Pedro and Maria in the first cause of
action are rescission of the contract of lease, recovery of unpaid rent, and ejectment of
Bong, the Metropolitan Trial Court has jurisdiction over the case.
BP 129.Section 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and
Municipal Circuit Trial Courts in civil cases. – Metropolitan Trial Courts, Municipal Trial
Courts, and Municipal Circuit Trial Courts shall exercise:

1. Xxx
2. Exclusive original jurisdiction over cases of forcible entry and unlawful detainer : xxx
 b. On the second and third cause of action

The Regional Trial Court has jurisdiction over the second and third cause of action.
The total amount of money sought to be recovered is P520,00 exclusive of interest.
BP 129. REGIONAL TRIAL COURTS. Section 19. Jurisdiction in civil cases. –
Regional Trial Courts shall exercise exclusive original jurisdiction:

Xxx

(3) In all actions in admiralty and maritime jurisdiction where he demand or claim
exceeds Three hundred thousand pesos (P300,000.00) or, in Metro Manila, where
such demand or claim exceeds Four hundred thousand pesos (400,000.00);

Revised Rules of Court Rule 2. Section 5. Joinder of causes of action. — A

party may in one pleading assert, in the alternative or otherwise, as many causes of
action as he may have against an opposing party, subject to the following conditions:

(a) xxx

(b) xxx

(c) xxx

(d) Where the claims in all the causes action are principally for recovery of money,
the aggregate amount claimed shall be the test of jurisdiction.

Venue
a. On the first cause of action
Spouses Pedro and Maria must file the action on Manila where the property
was located.

Revised Rules of Court Rule 4 Section 1. Venue of real actions. — Actions affecting
title to or possession of real property, or interest therein, shall be commenced and
tried in the proper court which has jurisdiction over the area wherein the real property
involved, or a portion thereof, is situated.

Forcible entry and detainer actions shall be commenced and tried in the municipal
trial court of the municipality or city wherein the real property involved, or a portion
thereof, is situated.

b. On the second and third cause of action

Spouses Pedro and Maria may choose to file on Batangas City or Bacoor
City for the recovery of a sum of money from Bong and Lani

Revised Rules of Court Rule 4 Section 2. Venue of personal actions. — All other
actions may be commenced and tried where the plaintiff or any of the principal
plaintiffs resides, or where the defendant or any of the principal defendants resides,
or in the case of a non-resident defendant where he may be found, at the election of
the plaintiff.