Xavierville Iii Homeowners Association v. Xavierville Ii Homeowners Association

Summary

This case involved a jurisdictional dispute between two homeowners associations over whether a complaint for injunction and damages should be heard by the Regional Trial Court or the Housing and Land Use Regulatory Board. Petitioner Xavierville III filed the complaint with RTC Quezon City, but respondent Xavierville II argued HLURB had jurisdiction. The RTC denied the motion to dismiss, but the Court of Appeals reversed, finding the case cognizable by HLURB and noting defects in the complaint's verification. Before the Supreme Court could resolve the jurisdictional issue, the parties entered into compromise agreements that settled their dispute. The Supreme Court dismissed the petition as moot, emphasizing that compromise agreements have binding effect and res judicata when approved by final court order, citing established jurisprudence on the validity of such settlements under Article 1306 of the Civil Code.