203 James v. Eurem Realty

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TRIAL COURTS MAY DISMISS AN ACTION ON THE GROUND OF PRESCRIPTION ONLY WHEN

PLEADINGS SHOW IT IS TIME-BARRED


The affirmative defense of prescription does not automatically warrant the dismissal of the complaint.
While trial courts have authority and discretion to dismiss an action on the ground of prescription, it
may only do so when the parties’ pleadings or other facts on record show it to be indeed time-barred.
(James v. Eurem Realty Development Corporation, G.R. No. 190650, October 14, 2013)

x—————x

TRIAL COURTS MAY DISMISS AN ACTION ON THE GROUND OF PRESCRIPTION ONLY WHEN
PLEADINGS SHOW IT IS TIME-BARRED

James v. Eurem Realty Development Corporation


G.R. No. 190650, October 14, 2013
Reyes, J.

FACTS:
This is a petition for review of the CA Decision which dismissed the appeal from the RTC Resolution
holding that the action for declaration of nullity of title and ownership of real property with damages had
already prescribed

On September 17, 2003, the heirs of Gorgonio James filed a Civil Case (Civil Case 5877) against
Eurem Realty Development Corporation, alleging among others that the title of respondent’s
predecessor-in-interest, Eufracio Lopez, is void ab initio as it was derived from the void title of Primitivo
James (Gorgonio’s brother) as declared by a CA decision in CA-G.R. No. 50208-R (Civil Case 1447),
and that Lopez acted in bad faith in assigning the property to Eurem Realty as he fully knew that he
had no right or interest over said property. Eurem Realty, on the other hand, argued that prescription
has already set in, since the petitioners filed the complaint on September 17, 2003 or more than 30
years after its predecessor-in-interest Lopez bought the property from Primitivo way back in April 25,
1972.

ISSUE:
Is the action filed by petitioners barred by prescription

HELD:
No, the period for filing of Civil Case 5877 has not yet prescribed. The Court notes that the RTC’s
dismissal was triggered by the defenses raised by the respondent in its answer. There was yet to be a
trial on the merits but the RTC merely relied on the averments in the complaint and answer and
forthwith dismissed the case. On this point, the Court has already ruled that the “affirmative defense of
prescription does not automatically warrant the dismissal of a complaint. While trial courts have
authority and discretion to dismiss an action on the ground of prescription, it may only do so when the
parties’ pleadings or other facts on record show it to be indeed time-barred. If the issue of prescription
is one involving evidentiary matters requiring a full-blown trial on the merits, it cannot be determined in
a motion to dismiss. Civil Case 5877 is one for the declaration of nullity of TCT No. T-10713 in the
name of the respondent and for the declaration of the petitioners’ absolute ownership over said
property. As basis for their claim, the petitioner claimed that the respondent’s title over the property is
void ab initio. An action to declare the nullity of a void title does not prescribe.

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