Supena v Dela Rosa (Civil Procedure)

Case on Splitting of Causes of Action

Rodrigo Supena v. Jdg. Rosalio Dela Rosa

Facts:

·       Petitioner is president of Mortgagee BPI Agricultural Development Bank (BAID);

·       Petitioner charged respondent for “gross ignorance of the law” for issuing an unlawful order on May 25, 1993 in a foreclosure case;

·       BAID decided to extra-judicially foreclose the mortgage of PQL Realty Incorporated in Manila;

·       One day before the scheduled sale, on the basis of a mere ex-parte motion filed by PQL, respondent judge made an order to hold the sale at public auction in abeyance;

·       The only ground relied upon was that they agreed to hold foreclosure proceedings in Makati and not in Manila;

Issue:

WON judge is guilty as charged

Ruling:

Yes, Judge Dela Rosa is guilty of gross ignorance of the law.

·       Three different kinds of sales: (a) ordinary execution sale; (b) judicial foreclosure sale; (c) extrajudicial foreclosure sale;

·       Ordinary execution sale: Rule 39

·       Judicial Foreclosure: Rule 68

·       Extra-judicial foreclosure: RA 3135 (An Act Regulating The Sale of Property Under Special Powers Inserted in or Annexed in Real Estate Mortgages);

·       The case is extra-judicial sale; hence RA 3135 governs and where Section 2 thereof provides that:

“Said sale cannot be made legally outside of the province in which the property sold is situated; and in case the place is within said province in which the sale is to be made is the subject of stipulation, such sale shall be made in said place or in the municipal building of the municipality in which the property or part thereof is situated.”

·       The subject property is in Manila, hence it cannot be made outside of Manila

Petitioner contention: By written agreement of the parties, the venue of an action may be changed or transferred from one province to another (Rule 4, Sec. 3)

SC:

When rule not applicable (Rule 4, Section 5): This rule shall not apply in those cases where a specific rule or law provides otherwise.

Section 1, Rule 2: An action means an ordinary suit in a court of justice, by which one party prosecute another for enforcement or protection of a right, or the prevention or redress of a wrong.

·       Extra-judicial foreclosure are not judicial proceedings; venue of agreement does not gain relevance

”Stipulations in a contract, which specify a definite place for the institution of an action arising in connection therewith, do not, as a rule, supersede the general rules on the matter but should be construed merely as an agreement on an additional forum, not as limiting venue to the specified place.”