Ofelia C. Lavibo v. Hon. Court of Appeals

Summary

Tradal Corporation sued to eject Lavibo and Bargas from a townhouse unit sold under a contract to sell for P1,500,000.00. Despite contractual prohibition against occupancy before full payment, Tradal allowed occupancy based on postdated checks that later bounced. The Metropolitan Trial Court and Regional Trial Court dismissed the ejectment case, ruling it was premature since the underlying contract had not been properly rescinded. The Court of Appeals reversed, ordering ejectment and rental payments. The Supreme Court ultimately reinstated the lower courts' dismissal, emphasizing that since the complaint essentially sought rescission rather than simple ejectment, and the contract to sell remained valid until properly rescinded, the ejectment action was premature and beyond the MeTC's jurisdiction. The case demonstrates the importance of proper legal characterization and jurisdictional requirements in real estate disputes.