Atwel Vs Concepcion Case Digest
Atwel Vs Concepcion Case Digest
Atwel Vs Concepcion Case Digest
FACTS:
The controversy in this case involves a parcel of land which
was for the benefit of Concepcion Progressive Association
(CPA) in Hilongos, Leyte. The property was later converted
into a wet market where agricultural, livestock and other farm
products were sold. It also housed a cockpit and an area for
various forms of amusement. The income generated from the
property, mostly rentals from the wet market, was paid to
CPA.
In 1997, while CPA was in the process of registering as a stock
corporation, its other elected officers and members formed
their own group and registered themselves in the Securities
and Exchange Commission (SEC) as officers and members of
Concepcion Progressive Association, Inc. (CPAI). Atwel et al
were not listed either as officers or members of CPAI. Later,
CPAI objected to Atwel et als collection of rentals from the
wet market vendors.
In 2000, CPAI filed a case in the SEC for mandatory injunction.
With the passage of RA 8799, the case was transferred to
Branch 24 of the Southern Leyte RTC and subsequently, to
Branch 8 of the Tacloban City RTC. Both were special
commercial courts.
Atwel et al contested the jurisdiction of the special
commercial court over the case. According to them, they were
not CPAI members, hence the case did not involve an intracorporate dispute between and among members so as to
warrant the special commercial courts jurisdiction over it.
CPAI, on the other hand, argued that Atwel et al were already
in estoppel as they had participated actively in the court
proceedings.
ISSUE: W/N the case should have been filed with the
special commercial court
HELD: NO.
The SEC has original and exclusive jurisdiction over (2)
Controversies
arising
out
of
intra-corporate,
partnership, or association relations, between and
among stockholders, members, or associates; or
association of which they are stockholders, members,
or associates, respectively;