Remedial Law

Original Development and Construction Corporation vs Court of Appeals

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G.R. No. 94677 – 202 SCRA 753 – Remedial Law – Civil Procedure – Payment of Docket Fees – Pure Money Claims vs In Rem Actions 

Original Development and Construction Corporation (ODECOR) sued Home Insurance and Guaranty Corporation (HIGC), and the National Home Mortgage Finance Corporation (NHMC) for breach of contract and for damages. ODECOR accused the two of divesting its customers which resulted to massive losses for the corporation.

In ODECOR’s claim for damages it asserted its claim for actual, consequential, exemplary and moral damages, “the amount of which will be proved at the trial”; that for actual damages it’s claiming P2,272,193.10 but the rest appears to be unspecified amount of damages which the trial court could not assess. ODECOR paid the docket fee for the claim for the actual damages specified as well as the docket fees for the unspecified damages.

HIGC then moved for the dismissal of the complaint on the ground that the trial court did not acquire jurisdiction over it because of non-payment of the proper docket fees.

The trial court did not order the dismissal of the case but rather directed the Clerk of Court to issue a certificate of reassessment of the proper docket fee and if there is a deficiency ODECOR should pay the same. In the assessment, the Clerk of Court determined that the claim for attorney’s fee which was stated in the body of the complaint was not reiterated in the PRAYER of the complaint hence, the docket fees paid by ODECOR could not have included payment for the fees  for the claim of attorney’s fee. ODECOR was then ordered to amend its complaint.

In its amended complaint, ODECOR restated substantially all its allegations in the first complaint except that it specified its claim for attorney’s fees as equivalent to 25% of the total monthly liability and other expenses of litigation and costs of the suit.

HIGC then filed a petition for certiorari before the Court of Appeals questioning the jurisdiction of the trial court. The CA ruled in favor HIGC and enjoined the trial court from hearing the case.

ODECOR then filed a petition for certiorari before the Supreme Court.

ISSUE: Whether or not the trial court acquired jurisdiction over the case.

HELD: No. The claims for the other damages (other than actual) are vague. The terms used by ODECOR in its claims i.e. “the amount of which will be proved at the trial” and the demand for attorney’s fees as “equivalent to 25% of the total monetary liability and other expenses of litigation and costs of this suit” are not definite enough to be the basis of the computation of the proper docket fees.

While it is not required that the exact amounts be stated, the plaintiff must ascertain, in his estimation, the sums he wants and the sums required to determine the amount of such docket and other fees. Thus, it is evident that the complaint did not state enough facts and sums to enable the Clerk of Court of the lower court to compute the docket fees payable and left to the judge “mere guesswork” as to these amounts, which is fatal.

NOTES: The court may allow amendment of a pleading (in complaints purely for money and damages) if such does not specify the amount of claims. When amended, the pleader shall pay the appropriate docket fees. Where the amount of claim is specified but the docket fees paid were not sufficient, the pleader is allowed to cure the defect by paying the deficiency. PROVIDED, that in both cases prescription has not set.

If the action involves real property and a related claim for damages and the prescribed fees for an action involving real property have been paid but the amounts of the unrelated damages are unspecified, the court undeniably has jurisdiction over the action on the real property but may not have acquired jurisdiction over the accompanying claim for damages. Accordingly, the court may expunge the claims for damages or allow the amendment of the complaint so as to allege the precise amount of each item of damages within the prescriptive period.

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