15 Regulus Development Inc. vs. de La Cruz PDF

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REGULUS DEVELOPMENT INC. VS.

DE LA CRUZ

781 SCRA 607

FACTS:

The petitioner is the owner of an apartment (San Juan Apartments) located at San Juan Street, Pasay City.
Antonio dela Cruz (respondent) leased two units (Unit 2002-A and Unit 2002-B) of the San Juan
Apartments in 1993 and 1994. The petitioner sent the respondent a letter to terminate the lease of the
two subject units. Due to the respondent’s refusal to vacate the units, the petitioner filed a complaint3
for ejectment before MTC Pasay City. The MTC resolved the case in the petitioner’s favor and ordered the
respondent to vacate the premises, and pay the rentals due until the respondent actually complies.

The respondent appealed to the RTC. Pending appeal, the respondent consigned the monthly rentals to
the RTC due to the petitioner’s refusal to receive the rentals. The RTC affirmed the decision of the MTC in
toto and denied the motion for reconsideration filed by the respondent. The petitioner filed a motion (to
withdraw funds deposited by the defendant-appellant as lessee) praying for the withdrawal of the rentals
consigned by the respondent with the RTC.

In an order dated July 25, 2003, the RTC granted the petitioner’s motion. As a result thereof, RTC issued a
writ of execution. Respondent filed a petition for certiorari under Rule 65 before CA but the CA affirmed
RTC’s orders.

SC affirmed said resolution.

Petitioner then returned to RTC for an issuance of a writ of execution against the supersedeas bond
representing rentals for the leased property. RTC granted the motion. By virtue of insufficiency thereof,
the petition filed for a motion to levy the respondent’s property which was also granted IN AN ORDER
DATED JUNE 30, 2008. CA affirmed RTC’s decision.

Hence this petition.

ISSUE:

The petitioner poses the core issue of whether the RTC had jurisdiction to levy on the respondent’s real
property.

RULING: The appellate jurisdiction of courts is conferred by law. The appellate court acquires jurisdiction
over the subject matter and parties when an appeal is perfected.

On the other hand, equity jurisdiction aims to provide complete justice in cases where a court of law is
unable to adapt its judgments to the special circumstances of a case because of a resulting legal
inflexibility when the law is applied to a given situation. The purpose of the exercise of equity jurisdiction,
among others, is to prevent unjust enrichment and to ensure restitution.

The RTC orders which allowed the withdrawal of the deposited funds for the use and occupation of the
subject units were issued pursuant to the RTC’s equity jurisdiction, as the CA held in the petition docketed
as CA-G.R. SP No. 81277.

The RTC’s equity jurisdiction is separate and distinct from its appellate jurisdiction on the ejectment case.
The RTC could not have issued its orders in the exercise of its appellate jurisdiction since there was nothing
more to execute on the dismissed ejectment case. As the RTC orders explained, the dismissal of the
ejectment case effectively and completely blotted out and cancelled the complaint. Hence, the RTC orders
were clearly issued in the exercise of the RTC’s equity jurisdiction, not on the basis of its appellate
jurisdiction.

The RTC, as the court of origin, has jurisdiction to order the levy of the respondent's real property.

Execution shall be applied for in the court of origin, in accordance with Section 1,45 Rule 39 of the Rules
of Court.

The court of origin with respect to the assailed RTC orders is the court which issued these orders. The RTC
is the court with jurisdiction to order the execution of the issued RTC orders.

Hence, the petitioner correctly moved for the issuance of the writ of execution and levy of the
respondent's real property before the RTC as the court of origin.

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