- Petitioner
- Optimum Development
- Respondent
- Jovellanos
- Citation
- G.R. No. 189145
- Court
- Supreme Court
- Decided
- December 4, 2013
Court jurisdiction over unlawful detainer case and validity of contract to sell cancellation under RA 6552
Summary
This case involves a jurisdictional dispute over an unlawful detainer action filed by Optimum Development Bank against Sps. Jovellanos who defaulted on their contract to sell for residential property. The MeTC and RTC ruled in favor of Optimum, finding valid jurisdiction and proper contract cancellation. However, the CA reversed, holding the case involved matters incapable of pecuniary estimation requiring RTC jurisdiction. The Supreme Court ultimately reinstated the MeTC decision, clarifying that Metropolitan Trial Courts have conditional authority to interpret contracts and resolve ownership issues incidental to possession disputes in ejectment cases. The Court found Optimum properly cancelled the contract under RA 6552 (Maceda Law) by following required procedures: 60-day grace period, notarized cancellation notice, and 30-day additional period. The case establishes important precedent on MeTC jurisdiction in unlawful detainer cases involving contract interpretation and the application of RA 6552 to installment property sales.