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City of Dumaguete V PPA

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SUPREME COURT REPORTS ANNOTATED VOLUME 656 5/24/21, 8:23 PM

G.R. No. 168973. August 24, 2011.*

CITY OF DUMAGUETE, herein Represented by City


Mayor, Agustin R. Perdices, petitioner, vs. PHILIPPINE
PORTS AUTHORITY, respondent.

Certiorari; Words and Phrases; Grave abuse of discretion exists


where an act is performed with a capricious or whimsical exercise of
judgment equivalent to lack of jurisdiction·the abuse of discretion
must be patent and gross as to amount to an evasion of positive duty
or to a virtual refusal to perform a duty enjoined by law, or to act at
all in contemplation of law, as where the power is exercised in an
arbitrary and despotic manner by reason of passion or personal
hostility.·The grant of a petition for certiorari under Rule 65 of the
Rules of Court requires grave abuse of discretion amounting to lack
or excess of jurisdiction. Grave abuse of discretion exists where an
act is performed with a capricious or whimsical exercise of
judgment equivalent to lack of jurisdiction. The abuse of discretion
must be patent and gross as to amount to an evasion of positive
duty or to a virtual refusal to perform a duty enjoined by law, or to
act at all in contemplation of law, as where the power is exercised in
an arbitrary and despotic manner by reason of passion or personal
hostility.
Procedural Rules and Technicalities; If a stringent application
of procedural rules would hinder rather than serve the demands of
substantial justice, the former must yield to the latter.·Procedural
rules were conceived to aid the attainment of justice. If a stringent
application of the rules would hinder rather than serve the
demands of substantial justice, the former must yield to the latter.
In Basco v. Court of Appeals, 326 SCRA 768 (2000), we allowed a
liberal application of technical rules of procedure, pertaining to the
requisites of a proper notice of hearing, upon consideration of the
importance of the subject matter of the controversy, as illustrated in
well-settled cases.
Actions; Jurisdiction; Basic as a hornbook principle is that

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jurisdiction over the subject matter of a case is conferred by law and


determined by the allegations in the complaint which comprise a
concise statement of the ultimate facts constituting the plaintiffÊs

_______________

* FIRST DIVISION.

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City of Dumaguete vs. Philippine Ports Authority

cause of action.·Basic as a hornbook principle is that jurisdiction


over the subject matter of a case is conferred by law and determined
by the allegations in the complaint which comprise a concise
statement of the ultimate facts constituting the plaintiff Ês cause of
action. The nature of an action, as well as which court or body has
jurisdiction over it, is determined based on the allegations
contained in the complaint of the plaintiff, irrespective of whether
or not the plaintiff is entitled to recover upon all or some of the
claims asserted therein. The averments in the complaint and the
character of the relief sought are the ones to be consulted. Once
vested by the allegations in the complaint, jurisdiction also remains
vested irrespective of whether or not the plaintiff is entitled to
recover upon all or some of the claims asserted therein. As a
necessary consequence, the jurisdiction of the court cannot be made
to depend upon the defenses set up in the answer or upon the
motion to dismiss; for otherwise, the question of jurisdiction would
almost entirely depend upon the defendant. What determines the
jurisdiction of the court is the nature of the action pleaded as
appearing from the allegations in the complaint. The averments
therein and the character of the relief sought are the ones to be
consulted.
Same; Same; Land Registration; Presently, jurisdiction over an
application for land registration remains with the Regional Trial
Court (RTC) where the land is situated, except when such
jurisdiction is delegated by the Supreme Court to the Metropolitan
Trial Court, Municipal Trial Courts, and Municipal Circuit Trial
Courts under certain circumstances.·Batas Pambansa Blg. 129,

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otherwise known as The Judiciary Reorganization Act of 1980,


created the RTC in place of the CFI. Presently, jurisdiction over an
application for land registration remains with the RTC where the
land is situated, except when such jurisdiction is delegated by the
Supreme Court to the Metropolitan Trial Court, Municipal Trial
Courts, and Municipal Circuit Trial Courts under certain
circumstances.
Same; Same; Same; Foreshore Lands; Whether or not a subject
property is indeed foreshore land is a factual issue which the
Regional Trial Court (RTC) should resolve in the exercise of its
jurisdiction, after giving both parties the opportunity to present their
respective evidence at a full-blown trial.·Respondent sought the
dismissal of LRC Case No. N-201 on the ground of lack of
jurisdiction, not because of the insufficiency of the allegations and
prayer therein, but

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City of Dumaguete vs. Philippine Ports Authority

because the evidence presented by petitioner itself during the trial


supposedly showed that the subject property is a foreshore land,
which is not alienable and disposable. The RTC granted the Motion
to Dismiss of respondent in its Order dated September 7, 2000. The
RTC went beyond the allegations and prayer for relief in the
Application for Original Registration of petitioner, and already
scrutinized and weighed the testimony of Engr. Dorado, the only
witness petitioner was able to present. As to whether or not the
subject property is indeed foreshore land is a factual issue which
the RTC should resolve in the exercise of its jurisdiction, after
giving both parties the opportunity to present their respective
evidence at a full-blown trial.
Pleadings, Practice and Procedure; Service of Pleadings; Where
there is considerable distance between the offices of two opposing
counsels, and personal service of pleadings and motions by one upon
the other is clearly not practicable, a written explanation as to why
personal service was not done would only be superfluous.·Our
ruling in the above-cited cases is relevant to the instant case.
Counsel for petitioner holds office in Dumaguete City, Negros

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Oriental, in the Visayas; while counsel for respondent holds office in


Quezon City, Metro Manila, in Luzon. Given the considerable
distance between the offices of these two counsels, personal service
of pleadings and motions by one upon the other was clearly not
practicable and a written explanation as to why personal service
was not done would only be superfluous. In addition, we refer once
more to the merits of the Motion for Reconsideration and
Supplemental Motion for Reconsideration of the RTC Order dated
September 7, 2000 filed by petitioner, which justify the liberal
interpretation of Section 11, Rule 13 of the Rules of Court in this
case.
Same; Notice of Hearing; Even if a motion may be defective for
failure to address the notice of hearing of said motion to the parties
concerned, such defect may be cured by the courtÊs taking cognizance
thereof and the fact that the adverse party was otherwise notified of
the existence of said pleading·there is substantial compliance with
the rules if a copy of the said motion was furnished to the counsel of
the other party.·Jurisprudence confirms that the requirements laid
down in Sections 4, 5, and 6, Rule 15 of the Rules of Court that the
notice of hearing shall be directed to the parties concerned, and
shall state the time and place for the hearing of the motion, are
mandatory. If not religiously complied with, they render the motion
pro

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City of Dumaguete vs. Philippine Ports Authority

forma. As such, the motion is a useless piece of paper that will not
toll the running of the prescriptive period. Yet, again, there were
previous cases with peculiar circumstances that had compelled us to
liberally apply the rules on notice of hearing and recognize
substantial compliance with the same. Once such case is Philippine
National Bank v. Paneda, 515 SCRA 639 (2007), where we
adjudged: Thus, even if the Motion may be defective for failure to
address the notice of hearing of said motion to the parties
concerned, the defect was cured by the courtÊs taking cognizance
thereof and the fact that the adverse party was otherwise notified of
the existence of said pleading. There is substantial compliance with

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the foregoing rules if a copy of the said motion for reconsideration


was furnished to the counsel of herein private respondents. In the
present case, records reveal that the notices in the Motion were
addressed to the respective counsels of the private respondents and
they were duly furnished with copies of the same as shown by the
receipts signed by their staff or agents. Consequently, the Court
finds that the petitioner substantially complied with the
pertinent provisions of the Rules of Court and existing
jurisprudence on the requirements of motions and
pleadings.

PETITION for review on certiorari of the decision and


resolution of the Court of Appeals.
The facts are stated in the opinion of the Court.
Neil Ray M. Lagahit and Gary Guido Q. Tabios for
petitioner.
Office of the Government Corporate Counsel for
respondent.

LEONARDO-DE CASTRO, J.:
Before Us is a Petition for Review under Rule 45 of the
Rules of Court assailing the Decision1 dated March 4, 2005

_______________
1 Rollo, pp. 25-32; penned by Associate Justice Isaias P. Dicdican with
Associate Justices Pampio A. Abarintos and Vicente L. Yap, concurring.

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City of Dumaguete vs. Philippine Ports Authority

and Resolution2 dated June 6, 2005 of the Court of Appeals


in CA-G.R. SP No. 64379, which granted the Petition for
Certiorari and Prohibition of respondent Philippine Ports
Authority and set aside the Orders dated December 7, 2000
and February 20, 2001 of the Regional Trial Court (RTC),
Branch 44 of the City of Dumaguete in LRC Case No. N-
201.
The antecedent facts are as follows:
On October 14, 1998, petitioner City of Dumaguete,
through Mayor Felipe Antonio B. Remollo (Remollo), filed

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before the RTC an Application for Original Registration of


Title over a parcel of land with improvements, located at
Barangay Looc, City of Dumaguete (subject property),
under the Property Registration Decree. The application
was docketed as LRC Case No. N-201.
Petitioner alleged in support of its application:

„1. That the applicant, City of Dumaguete through its Honorable


Mayor Felipe Antonio B. Remollo, is the owner of the land subject of
this application with all improvements and buildings comprising
the EngineerÊs Compound where it is now situated and has been in
continuous occupation and possession of the same for more than 30
years or from the year 1960 (Affidavit of Ownership executed by
Felipe Antonio G. Remollo, the City Mayor, dated August 21, 1998
herein attached as ANNEX A). The said land consist of 5,410
square meters and is situated and bounded and described as shown
on the plan (true and photostatic copies of the original plan marked
Psu-07-006805 approved by the Regional Technical Director of the
[Department of Environment and Natural Resources] DENR,
Regional Office, Cebu City herein attached as ANNEX B) and
technical descriptions attached hereto (technical description
attached as ANNEX C) and made a part hereof;
2. That said land at the last assessment for taxation was
assessed at P676,250, Philippine currency, with market value of
P1,352,500.00, Philippine currency. (Declaration of Real Property
with the assessed and market values attached as ANNEX D);

_______________
2 Id., at pp. 39-41.

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City of Dumaguete vs. Philippine Ports Authority

3. That to the best of my knowledge and belief, there is no


mortgage or encumbrance of any kind whatsoever affecting said
land, nor another person having any estate or interest therein, legal
or equitable, in possession, remainder, reversion or expectancy;
4. That the land was acquired by possessory title in open,
continuous, adverse occupation and possession in the concept of
owner for more than thirty years since 1960 (please refer to ANNEX

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A);
5. That the land is adjoined by the following:
NorthWest
NorthEast
SouthEast
All along line 1-2-3-4-5-6-7-8-9-10 by Flores Avenue, City Road
and the Dumaguete Port Road
SouthWest – along line 10-1 by Plan Msi-V-20453
xxxx
8. That the land included is bounded on the West by Flores
Avenue and on the North by the City Road, all public highways and
on the East by the Dumaguete Port Road, a private road made part
of the Port Zone.‰3

In an Order4 dated October 23, 1998, the RTC noted


that:

„A perusal of the records of the case shows that the annexes lack the
following copies:
a) two blue print copies of the approved plan;
b) two copies of the technical description of the lot sought to be
registered;
c) two copies of the SurveyorÊs certificate;
d) a certificate in quadruplicate of the City Assessor of the assessed
value of the land;
e) all original muniments of title in the possession of the applicant
which prove ownership of the land;

_______________
3 Records, pp. 2-3.
4 Id., at pp. 33-34.

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City of Dumaguete vs. Philippine Ports Authority

f) two copies of the petition/application.


Further, the application did not state the number of the lot sought to
be registered, the number of parcels applied for, the improvements found
thereon, and indicate whether it claims a portion of the road which
serves as a boundary line.

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All these must be alleged in the petition so that the Court will know
the nature of the property.‰

The RTC explained that the extra copies submitted by


petitioner shall be forwarded by the RTC Clerk of Court to
the Land Registration Commission (LRC) in Manila for
comment. Only thereafter would the RTC set the
application for hearing.
Petitioner filed its Compliance5 with the above-
mentioned Order, submitting additional copies of the
required documents and clarifying thus:

1. The approved plan does not state the number of lot sought to be
registered because it is a public land, thus, only PSU-07-006805
appears on the plan which is being applied for registration;
2. Only one (1) parcel of land is applied for by petitioners which
consist of five thousand four hundred ten (5,410) square meters,
more or less;
3. The City EngineerÊs Building within the City EngineerÊs compound
are the only improvement found thereon; and
4. Petitioners do not claim any portion of the road which serves as a
boundary line.

The RTC accordingly set the initial hearing of LRC Case


No. N-201 on April 12, 1999, and sent notices to the
parties.
The Republic of the Philippines, represented by the
Director of Lands, and respondent, represented by the
Office of the Government Corporate Counsel, filed separate
Oppositions6 to

_______________
5 Id., at pp. 37-38.
6 Id., at pp. 25-26 and 58-61.

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City of Dumaguete vs. Philippine Ports Authority

the application for registration of petitioner. Both the


Republic and respondent averred that petitioner may not

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register the subject property in its name since petitioner


had never been in open, continuous, exclusive, and
notorious possession of the said property for at least 30
years immediately preceding the filing of the application;
and the subject property remains to be a portion of the
public domain which belongs to the Republic.
After several postponements of the scheduled hearings,
petitioner presented the testimony of its first witness,
Engineer Rilthe P. Dorado (Engr. Dorado), on January 14,
2000. Engr. DoradoÊs examination on the witness stand was
terminated on April 7, 2000. The presentation of the other
witnesses of petitioner was then scheduled to continue on
June 2, 2000.7
However, before the next hearing, respondent filed a
Motion to Dismiss,8 seeking the dismissal of LRC Case No.
N-201 on the ground that the RTC lacked jurisdiction to
hear and decide the case. Respondent argued that Section
14(1) of Presidential Decree No. 1529, otherwise known as
the Property Registration Decree, refers only to alienable
and disposable lands of the public domain under a bona
fide claim of ownership. The subject property in LRC Case
No. N-201 is not alienable and disposable, since it is a
foreshore land, as explicitly testified to by petitionerÊs own
witness, Engr. Dorado. A foreshore land is not registerable.
This was precisely the reason why, respondent points out,
that the subject property was included in Presidential
Proclamation No. 1232 (delineating the territorial
boundaries of the Dumaguete Port Zone), so that the same
would be administered and managed by the State, through
respondent, for the benefit of the people.
In its Terse Opposition to OppositorÊs Motion to Dismiss,
petitioner claimed that the subject property was a swamp

_______________
7 Id., at pp. 93 and 108.
8 Id., at pp. 116-124.

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reclaimed about 40 years ago, which it occupied openly,


continuously, exclusively, and notoriously under a bona fide
claim of ownership. The technical description and approved
plan of the subject property showed that the said property
was not bounded by any part of the sea. Petitioner invoked
Republic Act No. 1899,9 which authorizes chartered cities
and municipalities to undertake and carry out, at their own
expense, the reclamation of foreshore lands bordering
them; and grants said chartered cities and municipalities
ownership over the reclaimed lands. Presidential
Proclamation No. 1232 is immaterial to the present
application for registration because it merely authorizes
respondent to administer and manage the Dumaguete Port
Zone and does not confer upon respondent ownership of the
subject property.10
Respondent filed a Reply/Rejoinder (To ApplicantÊs
Opposition to OppositorÊs Motion to Dismiss),11 asserting
that there are no factual or legal basis for the claim of
petitioner that the subject property is reclaimed land.
Petitioner sought the original registration of its title over
the subject property acquired through alleged continuous
possession for 30 years under Section 14(1) of the Property
Registration Decree, and not through the reclamation of
the said property at its own expense under Republic Act
No. 1899. The present claim of petitioner that the subject
property is reclaimed land should not be allowed for it
would improperly change the earlier theory in support of
the application for registration. Respondent reiterated that
the subject property is foreshore land which cannot be
registered; and that Presidential Proclamation No. 1232 is
very material to LRC Case No. N-201 because it confirms
that areas within the Dumaguete Port Zone, including the
subject property, are not alienable and disposable lands of
the public domain.

_______________
9 An Act to Authorize the Reclamation of Foreshore Lands by
Chartered Cities and Municipalities.
10 Records, pp. 129-131.
11 Id., at pp. 155-160.

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City of Dumaguete vs. Philippine Ports Authority

On September 7, 2000, the RTC issued an Order12


granting the Motion to Dismiss of respondent based on the
following ratiocination:

„The Court agrees with [herein respondent] Philippine Ports


Authority that the basis of the [herein petitionerÊs] application for
original registration of the subject lot is Section 14 of the
Presidential Decree No. 1529, otherwise known as the Property
Registration Decree. A circumspect scrutiny of said Section readily
shows that it refers to alienable and disposable lands of the public
domain as proper subjects of registration, provided the applicant
has met the other requirements such as open, continuous, exclusive
and notorious possession for at least thirty (30) years under a bona
fide claim of ownership.
It having been shown by [petitionerÊs] own evidence that the lot
subject of the application for original registration is a foreshore
land, and therefore not registerable (Dizon, et al. vs. Bayona, et al.,
98 SCRA 942, 944), the application must be denied.
Again as correctly argued by [respondent], [petitionerÊs] reliance
on Republic Act 1899 which authorizes all municipalities and
chartered cities to undertake and carry out the reclamation by
dredging, filling or other means of any foreshore lands bordering
them and which confers ownership on them of the lands so
reclaimed, is misplaced, as such has never been alleged in the
application. It is fundamental that a party cannot prove what it has
not alleged in his complaint or application, as in this case.
The admission by Engr. Dorado that there is no formal
declaration from the executive branch of government or law passed
by Congress that the land in question is no longer needed for public
use or special industries x x x further militates against the
application.
Moreover, the authority granted to municipalities and chartered
cities to undertake and carry out at their own expense the
reclamation by dredging, filling, or other means, of any foreshore
lands bordering them is for the purpose of establishing, providing,
constructing, maintaining, and repairing proper and adequate
docking and harbor facilities as such municipalities and chartered
cities

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_______________
12 Id., at pp. 134-137.

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may determine in consultation with the Secretary of Finance and


the Secretary of Public Works and Communications.
By its own evidence, [petitioner] has utilized the subject property
allegedly reclaimed by it as Office of the City Engineer and not as
docking and harboring facilities. [Petitioner] has failed to show that
such reclamation was undertaken by it in consultation with the
Secretary of Finance and the Secretary of Public Works and
Communications.‰13

The RTC decreed in the end that „the instant


application for original registration is dismissed for lack of
merit.‰14
In its Motion for Reconsideration15 and Supplemental
Motion for Reconsideration,16 petitioner contended that
the dismissal of its application was premature and
tantamount to a denial of its right to due process. It has yet
to present evidence to prove factual matters in support of
its application, such as the subject property already being
alienable and disposable at the time it was occupied and
possessed by petitioner.
Petitioner also pointed out that its witness, Engr.
Dorado, „testified only as to the physical status of the land
in question at the time when the cadastral survey of
Dumaguete was made sometime in 1916.‰17 In fact, Engr.
Dorado expressly testified that the subject property was
„part of the shore or foreshore a long time ago[;]‰18 and he
did not testify at all that the subject property was a
foreshore lot at the time petitioner occupied and possessed
the same. The physical state of the subject property had
already changed since 1916. It is now within the „alienable
and disposable area as per the Land Classification Map No.
674, Project No. 1-D, BL C-6, certified

_______________

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13 Id., at pp. 136-137.


14 Id., at p. 137.
15 Id., at pp. 138-141.
16 Id., at pp. 151-152.
17 Id., at p. 138.
18 Id., at pp. 138-139.

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City of Dumaguete vs. Philippine Ports Authority

on July 3, 1927, of the Bureau of Lands, now Land


Management Sector of the Department of Environment and
Natural Resources[,]‰19 as verified and certified by the
Chief of the Map Projection Section, Land Management
Sector, DENR Regional Office in Cebu City, who has yet to
take the witness stand before the RTC.
Petitioner insisted that the RTC should continue with
the hearing of LRC Case No. N-201 and allow petitioner to
present evidence that the subject property is reclaimed
land. Petitioner sufficiently alleged in its application for
registration that it has been in „open, continuous,
exclusive, and notorious possession of the [subject property]
for more than thirty (30) years under a bona fide claim of
ownership.‰20 In support of such allegation, petitioner
must necessarily prove that the subject property was
previously a swampy area, which had to be filled or
reclaimed before the construction of the City EngineerÊs
Office building thereon.
Respondent based its Opposition (To ApplicantÊs Motion
for Reconsideration dated September 28, 2000)21 and
Opposition (To ApplicantÊs Supplemental Motion for
Reconsideration)22 on technical and substantive grounds.
According to respondent, the Motion for Reconsideration
of petitioner violated Sections 4 (Hearing of motion), 5
(Notice of hearing), and 6 (Proof of service necessary), Rule
15 of the Rules of Court. Petitioner did not set its Motion
for Reconsideration for hearing even when the said Motion
could not be considered as non-litigable. The RTC could not
hear the motion for reconsideration ex parte as they are
prejudicial to the rights of respondent. Petitioner also

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failed to comply with Section 11, Rule 13 of the Rules of


Court when it did not attach to the Motion for
Reconsideration a written explanation

_______________
19 Id., at p. 139.
20 Id.
21 Id., at pp. 142-150.
22 Id., at pp. 161-166.

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why it did not resort to personal service of the said Motion.


Thus, respondent averred that the Motion for
Reconsideration of petitioner should be treated as a mere
scrap of paper with no legal effect. It did not interrupt the
reglementary period to appeal and the RTC Order dated
September 7, 2000, dismissing LRC Case No. N-201, had
already attained finality. Respondent also pointed out that
the Supplemental Motion for Reconsideration of petitioner
suffered from the same fatal defects as the original Motion
for Reconsideration.
Respondent again posited that the subject property was
foreshore land belonging to the State and not subject to
private appropriation, unless the same had already been
declared by the executive or legislative department of the
national government as no longer needed for coast guard
service, public use, or special industries, and classified as
alienable and disposable. Full-blown trial in LRC Case No.
N-201 was no longer necessary as the evidence so far
presented by petitioner had already established that the
RTC lacked jurisdiction over the subject matter of the case.
In its Order23 dated November 16, 2000, the RTC
initially agreed with respondent that the Motion for
Reconsideration of petitioner violated Sections 4, 5, and 6,
Rule 15 and Section 11, Rule 13 of the Rules of Court.
Resultantly, the Motion for Reconsideration of petitioner
was considered as not filed and did not toll the running of

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the period to file an appeal, rendering final and executory


the order of dismissal of LRC Case No. N-201.
However, after taking into consideration the
Supplemental Motion for Reconsideration of petitioner, the
RTC issued another Order24 dated December 7, 2000,
setting aside its Order dated September 7, 2000 in the
interest of justice and resolving to have a full-blown
proceeding to determine factual issues in LRC Case No. N-
201.

_______________
23 Id., at pp. 153-154.
24 Id., at p. 167.

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City of Dumaguete vs. Philippine Ports Authority

It was then the turn of respondent to file with the RTC a


Motion for Reconsideration25 of the Order dated December
7, 2000. In an Order26 dated February 20, 2001, the RTC
denied the motion of respondent and admitted the
following:

„A thorough review and perusal of the disputed order dated


September 7, 2000 and December 7, 2000, whereby this Court
dismissed [petitionerÊs] petition for registration of Lot No. 1,
Dumaguete Cadastre, and later set aside the Order of September 7,
2000, shows that there was honest mistake in declaring said lot 1,
as a shoreline. Indeed, the adjoining lots are already titled and
bounded by a City Road. It is not bounded by a sea. The Court
wants to correct this error in its findings on the September 7, 2000
Order, that Lot No. 1 is situated on the shoreline of Dumaguete
City. The Court simply committed an oversight on the petitionerÊs
evidence that the lot in question is a foreshore land x x x when in
fact it is not. And it is for this reason that the court reconsidered
and set aside said September 7, 2000 Order, to correct the same
while it is true that said September 7, 2000 Order had attained its
finality, yet this Court cannot in conscience allow injustice to
perpetuate in this case and that hearing on the merits must proceed
to determine the legality and truthfulness of its application for

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registration of title.‰

Respondent sought recourse from the Court of Appeals


by filing a Petition for Certiorari and Prohibition under
Rule 65 of the Rules of Court, docketed as CA-G.R. SP No.
64379. Respondent challenged the RTC Orders dated
December 7, 2000 and February 20, 2001 for having been
issued by the RTC in grave abuse of discretion amounting
to lack or excess of jurisdiction. Respondent reiterated that
the RTC Order dated September 7, 2000, dismissing LRC
Case No. N-201 had already attained finality. The defects of
the Motion for Reconsideration of petitioner rendered the
same as a mere scrap of paper, which did not toll the
running of the prescriptive period to appeal the RTC Order
dated September 7, 2000.

_______________
25 Id., at pp. 169-172.
26 Id., at p. 179.

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The Court of Appeals, in its Decision dated March 4,


2005, found merit in the Petition of respondent and set
aside the RTC Orders dated December 7, 2000 and
February 20, 2001. The appellate court, in its Resolution
dated June 6, 2005, denied the Motion for Reconsideration
of petitioner.
Hence, petitioner comes before us via the instant
Petition for Review with the following assignment of error:

GROUND FOR THE APPEAL


„Error of law: The March 4, 2005 decision of the Court of Appeals
and its June 6, 2005 Resolution, erred on question of law in setting
aside the Orders of the Regional Trial Court, Branch 44, dated
December 7, 2000 and February 20, 2001. The said Orders of the
trial court were made in order to determine factual issues and to
correct its error in its findings on the September 7, 2000 Order.
Thus, the Court of Appeals decision is contrary to law, justice,

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equity and existing jurisprudence.‰27

Respondent insists on the strict application of Sections


4, 5, and 6, Rule 15 and Section 11, Rule 13 of the Rules of
Court. Violations of the said rules were fatal to the Motion
for Reconsideration and Supplemental Motion for
Reconsideration of the petitioner, and as a result, the RTC
Order dated September 7, 2000, dismissing LRC Case No.
N-201, had already become final and executory and, thus,
beyond the jurisdiction of the RTC to set aside. Respondent
urges us to reject the plea of petitioner for a liberal
application of the rules in the absence of a compelling
reason to do so.
We grant the Petition.
The grant of a petition for certiorari under Rule 65 of the
Rules of Court requires grave abuse of discretion
amounting to lack or excess of jurisdiction. Grave abuse of
discretion exists where an act is performed with a
capricious or whimsical exercise of judgment equivalent to
lack of jurisdiction. The

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27 Rollo, p. 16.

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abuse of discretion must be patent and gross as to amount


to an evasion of positive duty or to a virtual refusal to
perform a duty enjoined by law, or to act at all in
contemplation of law, as where the power is exercised in an
arbitrary and despotic manner by reason of passion or
personal hostility.28
The Court of Appeals erred in granting the writ of
certiorari in favor of respondent. The RTC did not commit
grave abuse of discretion when, in its Orders dated
December 7, 2000 and February 20, 2001, it set aside the
order of dismissal of LRC Case No. N-201 and resolved to
have a full-blown proceeding to determine factual issues in
said case.

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Procedural rules were conceived to aid the attainment of


justice. If a stringent application of the rules would hinder
rather than serve the demands of substantial justice, the
former must yield to the latter.29 In Basco v. Court of
Appeals,30 we allowed a liberal application of technical
rules of procedure, pertaining to the requisites of a proper
notice of hearing, upon consideration of the importance of
the subject matter of the controversy, as illustrated in well-
settled cases, to wit:

„The liberal construction of the rules on notice of hearing is


exemplified in Goldloop Properties, Inc. v. CA:
Admittedly, the filing of respondent-spousesÊ motion for
reconsideration did not stop the running of the period of
appeal because of the absence of a notice of hearing required
in Secs. 3, 4 and 5, Rule 15, of the Rules of Court. As we have
repeatedly held, a motion that does not contain a notice of
hearing is a mere scrap of paper; it presents no question
which merits the attention of the court. Being a mere scrap of
paper, the trial

_______________
28 Casent Realty and Development Corporation v. Premiere Development
Bank, G.R. No. 163902, January 27, 2006, 480 SCRA 426, 434.
29 Basco v. Court of Appeals, 392 Phil. 251, 266; 326 SCRA 768, 783 (2000).
30 Id.

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court had no alternative but to disregard it. Such being the


case, it was as if no motion for reconsideration was filed and,
therefore, the reglementary period within which respondent-
spouses should have filed an appeal expired on 23 November
1989.
But, where a rigid application of that rule will result in a
manifest failure or miscarriage of justice, then the rule may
be relaxed, especially if a party successfully shows that the
alleged defect in the questioned final and executory judgment
is not apparent on its face or from the recitals contained

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therein. Technicalities may thus be disregarded in


order to resolve the case. After all, no party can even
claim a vested right in technicalities. Litigations
should, as much as possible, be decided on the merits
and not on technicalities.
Hence, this Court should not easily allow a party to lose
title and ownership over a party worth P4,000,000.00 for a
measly P650,000.00 without affording him ample opportunity
to prove his claim that the transaction entered into was not in
fact an absolute sale but one of mortgage. Such grave
injustice must not be permitted to prevail on the anvil of
technicalities.
Likewise, in Samoso v. CA, the Court ruled:
But time and again, the Court has stressed that the rules
of procedure are not to be applied in a very strict and
technical sense. The rules of procedure are used only to help
secure not override substantial justice (National Waterworks
& Sewerage System vs. Municipality of Libmanan, 97 SCRA
138 [1980]; Gregorio v. Court of Appeals, 72 SCRA 120
[1976]). The right to appeal should not be lightly
disregarded by a stringent application of rules of
procedure especially where the appeal is on its face
meritorious and the interests of substantial justice
would be served by permitting the appeal (Siguenza v.
Court of Appeals, 137 SCRA 570 [1985]; Pacific Asia Overseas
Shipping Corporation v. National Labor Relations
Commission, et al., G.R. No. 76595, May 6, 1998). . . .
In the instant case, it is petitionerÊs life and liberty that is at
stake. The trial court has sentenced him to suffer the penalty of
reclusion perpetua and his conviction attained finality on the basis
of mere technicality. It is but just, therefore, that petitioner be given

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the opportunity to defend himself and pursue his appeal. To do


otherwise would be tantamount to grave injustice. A relaxation of
the procedural rules, considering the particular circumstances
herein, is justified.‰31 (Emphasis ours.)

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In the case at bar, the Motion for Reconsideration and


Supplemental Motion for Reconsideration of petitioner,
which sought the reversal of RTC Order dated September
7, 2000 dismissing LRC Case No. N-201, cite meritorious
grounds that justify a liberal application of procedural
rules.
The dismissal by the RTC of LRC Case No. N-201 for
lack of jurisdiction is patently erroneous.
Basic as a hornbook principle is that jurisdiction over
the subject matter of a case is conferred by law and
determined by the allegations in the complaint which
comprise a concise statement of the ultimate facts
constituting the plaintiff Ês cause of action. The nature of an
action, as well as which court or body has jurisdiction over
it, is determined based on the allegations contained in the
complaint of the plaintiff, irrespective of whether or not the
plaintiff is entitled to recover upon all or some of the claims
asserted therein. The averments in the complaint and the
character of the relief sought are the ones to be consulted.
Once vested by the allegations in the complaint,
jurisdiction also remains vested irrespective of whether or
not the plaintiff is entitled to recover upon all or some of
the claims asserted therein.32
As a necessary consequence, the jurisdiction of the court
cannot be made to depend upon the defenses set up in the
answer or upon the motion to dismiss; for otherwise, the
question of jurisdiction would almost entirely depend upon
the defendant. What determines the jurisdiction of the
court is the nature of the action pleaded as appearing from
the allega-

_______________
31 Id., at pp. 266-267; pp. 783-785.
32 Gomez v. Montalban, G.R. No. 174414, March 14, 2008, 548 SCRA
693, 705-706.

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tions in the complaint. The averments therein and the


character of the relief sought are the ones to be consulted.33
Under Act No. 496, otherwise known as the Land
Registration Act, as amended by Act No. 2347, jurisdiction
over all applications for registration of title to land was
conferred upon the Courts of First Instance (CFI) of the
respective provinces in which the land sought to be
registered was situated. Jurisdiction over land registration
cases, as in ordinary actions, is acquired upon the filing in
court of the application for registration, and is retained up
to the end of the litigation.34
The land registration laws were updated and codified by
the Property Registration Decree, and under Section 17
thereof, jurisdiction over an application for land
registration was still vested on the CFI of the province or
city where the land was situated, viz.:

„SEC. 17. What and where to file.·The application for land


registration shall be filed with the Court of First Instance of the
province or city where the land is situated. The applicant shall file
together with the application all original muniments of titles or
copies thereof and a survey plan of the land approved by the Bureau
of Lands.
The Clerk of Court shall not accept any application unless it is
shown that the applicant has furnished the Director of Lands with a
copy of the application and all annexes.‰

Batas Pambansa Blg. 129, otherwise known as The


Judiciary Reorganization Act of 1980, created the RTC35 in
place of the CFI. Presently, jurisdiction over an application
for land registration remains with the RTC where the land
is situated, except when such jurisdiction is delegated by
the Supreme

_______________
33 Fort Bonifacio Development Corporation v. Domingo, G.R. No.
180765, February 27, 2009, 580 SCRA 397, 404.
34 Realty Sales Enterprise, Inc. v. Intermediate Appellate Court, 238
Phil. 317, 329; 154 SCRA 328, 339 (1987).
35 Section 13.

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City of Dumaguete vs. Philippine Ports Authority

Court to the Metropolitan Trial Court, Municipal Trial


Courts, and Municipal Circuit Trial Courts under certain
circumstances.36
It is not disputed that the Application for Original
Registration of Title filed by petitioner before the RTC of
the City of Dumaguete conformed to Section 15 of the
Property Registration Decree, which prescribes the form
and contents of such applications. In its Application,
petitioner prayed that its title to the subject property,
which it repeatedly alleged to have acquired through
continuous and adverse possession and occupation of the
said property for more than 30 years or since 1960, be
placed under the land registration laws. The allegations
and prayer in the Application of petitioner were sufficient
to vest jurisdiction on the RTC over the said Application
upon the filing thereof.
Respondent sought the dismissal of LRC Case No. N-201
on the ground of lack of jurisdiction, not because of the
insufficiency of the allegations and prayer therein, but
because the evidence presented by petitioner itself during
the trial supposedly showed that the subject property is a
foreshore land, which is not alienable and disposable. The
RTC granted the Motion to Dismiss of respondent in its
Order dated September

_______________
36 Batas Pambansa Blg. 129, Section 34 reads:
SEC. 34. Delegated Jurisdiction in Cadastral and Land Registration
Cases.·Metropolitan Trial Courts, Municipal Trial Courts, and
Municipal Circuit Trial Courts may be assigned by the Supreme Court to
hear and determine cadastral or land registration cases covering lots
where there is no controversy or opposition, or contested lots where the
value of which does not exceed One hundred thousand pesos
(P100,000.00), such value to be ascertained by the affidavit of the
claimant or by agreement of the respective claimants if there are more
than one, or from the corresponding tax declaration of the real property.
Their decisions in these cases shall be appealable in the same manner as
decisions of the Regional Trial Courts. (As amended by Republic Act No.

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7691.)

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7, 2000. The RTC went beyond the allegations and prayer


for relief in the Application for Original Registration of
petitioner, and already scrutinized and weighed the
testimony of Engr. Dorado, the only witness petitioner was
able to present.
As to whether or not the subject property is indeed
foreshore land is a factual issue which the RTC should
resolve in the exercise of its jurisdiction, after giving both
parties the opportunity to present their respective evidence
at a full-blown trial. As we have explained in the Estate of
the Late Jesus S. Yujuico v. Republic:37

„The plain import of Municipality of Antipolo is that a land


registration court, the RTC at present, has no jurisdiction over the
subject matter of the application which respondent Republic claims
is public land. This ruling needs elucidation.
Firmly entrenched is the principle that jurisdiction over the
subject matter is conferred by law. Consequently, the proper CFI
(now the RTC) under Section 14 of PD 1529 (Property Registration
Decree) has jurisdiction over applications for registration of title to
land.
xxxx
Conformably, the Pasig-Rizal CFI, Branch XXII has jurisdiction
over the subject matter of the land registration case filed by
Fermina Castro, petitionersÊ predecessor-in-interest, since
jurisdiction over the subject matter is determined by the allegations
of the initiatory pleading·the application. Settled is the rule that
„the authority to decide a case and not the decision rendered
therein is what makes up jurisdiction. When there is jurisdiction,
the decision of all questions arising in the case is but an exercise of
jurisdiction.
In our view, it was imprecise to state in Municipality of Antipolo
that the „Land Registration Court [has] no jurisdiction to entertain
the application for registration of public property x x x‰ for such
court precisely has the jurisdiction to entertain land registration

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applications since that is conferred by PD 1529. The applicant in a


land registration case usually claims the land subject matter of the
application as his/her private property, as in the case of the
application of Castro. Thus, the conclusion of the CA that the Pasig-
Rizal CFI has no jurisdiction over the subject matter of the applica-

_______________
37 G.R. No. 168661, October 26, 2007, 537 SCRA 513.

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tion of Castro has no mooring. The land registration court


initially has jurisdiction over the land applied for at the
time of the filing of the application. After trial, the court, in
the exercise of its jurisdiction, can determine whether the
title to the land applied for is registerable and can be
confirmed. In the event that the subject matter of the
application turns out to be inalienable public land, then it
has no jurisdiction to order the registration of the land and
perforce must dismiss the application.‰38 (Emphasis ours.)

It is true that petitioner, as the applicant, has the


burden of proving that the subject property is alienable and
disposable and its title to the same is capable of
registration. However, we stress that the RTC, when it
issued its Order dated September 7, 2000, had so far heard
only the testimony of Engr. Dorado, the first witness for the
petitioner. Petitioner was no longer afforded the
opportunity to present other witnesses and pieces of
evidence in support of its Application. The RTC Order
dated September 7, 2000·already declaring the subject
property as inalienable public land, over which the RTC
has no jurisdiction to order registration·was evidently
premature.
The RTC Order dated September 7, 2000 has not yet
become final and executory as petitioner was able to duly
file a Motion for Reconsideration and Supplemental Motion
for Reconsideration of the same, which the RTC eventually
granted in its Order dated December 7, 2000. Admittedly,

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said motions filed by petitioner did not comply with certain


rules of procedure. Ordinarily, such non-compliance would
have rendered said motions as mere scraps of paper,
considered as not having been filed at all, and unable to toll
the reglementary period for an appeal. However, we find
that the exceptional circumstances extant in the present
case warrant the liberal application of the rules.

_______________
38 Id., at pp. 539-541.

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Also, the Motion for Reconsideration and Supplemental


Motion for Reconsideration of the Order dated September
7, 2000 filed by petitioner did not comply with Section 11,
Rule 13 of the Rules of Court, for these did not include a
written explanation why service or filing thereof was not
done personally. Nonetheless, in Maceda v. De Guzman
Vda. de Macatangay,39 citing Solar Team Entertainment,
Inc. v. Ricafort,40 and Musa v. Amor,41 we explained the
rationale behind said rule and the mandatory nature of the
same, vis-à-vis the exercise of discretion by the court in
case of non-compliance therewith:

„In Solar Team Entertainment, Inc. v. Ricafort, this Court,


passing upon Section 11 of Rule 13 of the Rules of Court, held that a
court has the discretion to consider a pleading or paper as not filed
if said rule is not complied with.
Personal service and filing are preferred for obvious
reasons. Plainly, such should expedite action or resolution on
a pleading, motion or other paper; and conversely, minimize,
if not eliminate, delays likely to be incurred if service or filing
is done by mail, considering the inefficiency of the postal
service. Likewise, personal service will do away with the
practice of some lawyers who, wanting to appear clever, resort
to the following less than ethical practices: (1) serving or
filing pleadings by mail to catch opposing counsel off-guard,
thus leaving the latter with little or no time to prepare, for

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instance, responsive pleadings or an opposition; or (2) upon


receiving notice from the post office that the registered
containing the pleading of or other paper from the adverse
party may be claimed, unduly procrastinating before claiming
the parcel, or, worse, not claiming it at all, thereby causing
undue delay in the disposition of such pleading or other
papers.
If only to underscore the mandatory nature of this
innovation to our set of adjective rules requiring personal
service whenever practicable, Section 11 of Rule 13 then gives
the

_______________
39 516 Phil. 755; 481 SCRA 415 (2006).
40 355 Phil. 404; 293 SCRA 661 (1998).
41 430 Phil. 128; 380 SCRA 347 (2002).

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court the discretion to consider a pleading or paper as not


filed if the other modes of service or filing were not resorted
to and no written explanation was made as to why personal
service was not done in the first place. The exercise of
discretion must, necessarily consider the practicability
of personal service, for Section 11 itself begins with the
clause „whenever practicable.‰
We thus take this opportunity to clarify that under Section
11, Rule 13 of the 1997 Rules of Civil Procedure, personal
service and filing is the general rule, and resort to other
modes of service and filing, the exception. Henceforth,
whenever personal service or filing is practicable, in the light
of the circumstances of time, place and person, personal
service or filing is mandatory. Only when personal service or
filing is not practicable may resort to other modes be had,
which must then be accompanied by a written explanation as
to why personal service or filing was not practicable to begin
with. In adjudging the plausibility of an explanation, a court
shall likewise consider the importance of the subject matter of
the case or the issues involved therein, and the prima facie

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merit of the pleading sought to be expunged for violation of


Section 11.
In Musa v. Amor, this Court, on noting the impracticality of
personal service, exercised its discretion and liberally applied
Section 11 of Rule 13:
As [Section 11, Rule 13 of the Rules of Court] requires,
service and filing of pleadings must be done personally
whenever practicable. The court notes that in the present
case, personal service would not be practicable.
Considering the distance between the Court of Appeals and
Donsol, Sorsogon where the petition was posted, clearly,
service by registered mail [sic] would have entailed
considerable time, effort and expense. A written
explanation why service was not done personally
might have been superfluous. In any case, as the rule is
so worded with the use of „may,‰ signifying
permissiveness, a violation thereof gives the court
discretion whether or not to consider the paper as not
filed. While it is true that procedural rules are necessary to
secure an orderly and speedy administration of justice, rigid
application of Section 11, Rule 13 may be relaxed in this case
in the interest of substantial justice.

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In the case at bar, the address of respondentÊs counsel is Lopez,


Quezon, while petitioner SoniaÊs counselÊs is Lucena City. Lopez,
Quezon is 83 kilometers away from Lucena City. Such distance
makes personal service impracticable. As in Musa v. Amor, a
written explanation why service was not done personally „might
have been superfluous.‰42 (Emphases supplied and citations
omitted.)

Our ruling in the above-cited cases is relevant to the


instant case. Counsel for petitioner holds office in
Dumaguete City, Negros Oriental, in the Visayas; while
counsel for respondent holds office in Quezon City, Metro
Manila, in Luzon. Given the considerable distance between
the offices of these two counsels, personal service of

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pleadings and motions by one upon the other was clearly


not practicable and a written explanation as to why
personal service was not done would only be superfluous.43
In addition, we refer once more to the merits of the Motion
for Reconsideration and Supplemental Motion for
Reconsideration of the RTC Order dated September 7, 2000
filed by petitioner, which justify the liberal interpretation
of Section 11, Rule 13 of the Rules of Court in this case.
Jurisprudence confirms that the requirements laid down
in Sections 4, 5, and 6, Rule 15 of the Rules of Court that
the notice of hearing shall be directed to the parties
concerned, and shall state the time and place for the
hearing of the motion, are mandatory. If not religiously
complied with, they render the motion pro forma. As such,
the motion is a useless piece of paper that will not toll the
running of the prescriptive period.44
Yet, again, there were previous cases with peculiar
circumstances that had compelled us to liberally apply the
rules on

_______________
42 Maceda v. De Guzman Vda. de Macatangay, supra note 39 at pp.
763-765; pp. 423-425.
43 Records, pp. 141 and 152.
44 De La Peña v. De La Peña, 327 Phil. 936, 942; 258 SCRA 298, 304
(1996).

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notice of hearing and recognize substantial compliance


with the same. Once such case is Philippine National Bank
v. Paneda,45 where we adjudged:

„Thus, even if the Motion may be defective for failure to address the
notice of hearing of said motion to the parties concerned, the defect
was cured by the courtÊs taking cognizance thereof and the fact that
the adverse party was otherwise notified of the existence of said
pleading. There is substantial compliance with the foregoing rules if
a copy of the said motion for reconsideration was furnished to the

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counsel of herein private respondents.


In the present case, records reveal that the notices in the Motion
were addressed to the respective counsels of the private
respondents and they were duly furnished with copies of the same
as shown by the receipts signed by their staff or agents.
Consequently, the Court finds that the petitioner
substantially complied with the pertinent provisions of the
Rules of Court and existing jurisprudence on the
requirements of motions and pleadings.‰46 (Emphasis
supplied.)

It was not refuted that petitioner furnished respondent


and respondent actually received copies of the Motion for
Reconsideration, as well as the Supplemental Motion for
Reconsideration of the RTC Order dated September 7, 2000
filed by petitioner. As a result, respondent was able to file
its Oppositions to the said Motions. The RTC, in issuing its
Order dated December 7, 2000, was able to consider the
arguments presented by both sides. Hence, there was
substantial compliance by petitioner with the rules on
notice of hearing for its Motion for Reconsideration and
Supplemental Motion for Reconsideration of the RTC Order
dated September 7, 2000. Respondent cannot claim that it
was deprived of the opportunity to be heard on its
opposition to said Motions.
In view of the foregoing circumstances, the RTC
judiciously, rather than abusively or arbitrarily, exercised
its

_______________
45 G.R. No. 149236, February 14, 2007, 515 SCRA 639.
46 Id., at p. 653.

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128 SUPREME COURT REPORTS ANNOTATED


City of Dumaguete vs. Philippine Ports Authority

discretion when it subsequently issued the Order dated


December 7, 2000, setting aside its Order dated September
7, 2000 and proceeding with the trial in LRC Case No. N-
201.

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SUPREME COURT REPORTS ANNOTATED VOLUME 656 5/24/21, 8:23 PM

WHEREFORE, the instant Petition for Review of


petitioner City of Dumaguete is hereby GRANTED. The
Decision dated March 4, 2005 and Resolution dated June 6,
2005 of the Court of Appeals in CA-G.R. SP No. 64379 are
SET ASIDE, and the Orders dated December 7, 2000 and
February 20, 2001 of Branch 44 of the Regional Trial Court
of the City of Dumaguete in LRC Case No. N-201 are
REINSTATED. The said trial court is DIRECTED to
proceed with the hearing of LRC Case No. N-201 with
dispatch.
SO ORDERED.

Corona (C.J., Chairperson), Bersamin, Del Castillo and


Villarama, Jr., JJ., concur.

Petition granted, judgment and resolution set aside.

Notes.·Reclaimed lands are no longer foreshore or


submerged lands, and thus may qualify as alienable
agricultural lands of the public domain provided the
requirements of public land laws are met. (Chavez vs.
Public Estates Authority, 415 SCRA 403 [2003])
The landÊs proximity alone to the waters alone does not
necessarily make it a foreshore land·it must be shown
that the land is „between high and low water and left dry
by the flux and reflux of the tides‰ or „between the high
and low water marks,‰ which is „alternatively wet and dry
according to the flow of the tide.‰ (Republic vs. Leonor, 609
SCRA 75 [2009])
··o0o··

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