Republic of the Philippines

SUPREME COURT
Baguio City

THIRD DIVISION

G.R. No. 194024 April 25, 2012

PHILIP L. GO, PACIFICO Q. LIM and ANDREW Q. LIM Petitioners,

vs.
DISTINCTION PROPERTIES DEVELOPMENT AND CONSTRUCTION, INC. Respondent.

DECISION

MENDOZA, J.:

Before the Court is a petition for review on certiorari under Rule 45 of the 1997 Rules of Civil
Procedure assailing the March 17, 2010 Decision1 and October 7, 2010 Resolution2 of the Court of
Appeals (CA) in CA-G.R. SP No. 110013 entitled "Distinction Properties Development &
Construction, Inc. v. Housing Land Use Regulatory Board (NCR), Philip L. Go, Pacifico Q. Lim and
Andrew Q. Lim."

Factual and Procedural Antecedents:

Philip L. Go, Pacifico Q. Lim and Andrew Q. Lim (petitioners) are registered individual owners of
condominium units in Phoenix Heights Condominium located at H. Javier/Canley Road, Bo. Bagong
Ilog, Pasig City, Metro Manila.

Respondent Distinction Properties Development and Construction, Inc. (DPDCI) is a corporation

existing under the laws of the Philippines with principal office at No. 1020 Soler Street, Binondo,
Manila. It was incorporated as a real estate developer, engaged in the development of condominium
projects, among which was the Phoenix Heights Condominium.

In February 1996, petitioner Pacifico Lim, one of the incorporators and the then president of DPDCI,
executed a Master Deed and Declaration of Restrictions (MDDR)3 of Phoenix Heights Condominium,
which was filed with the Registry of Deeds. As the developer, DPDCI undertook, among others, the
marketing aspect of the project, the sale of the units and the release of flyers and brochures.

Thereafter, Phoenix Heights Condominium Corporation (PHCC) was formally organized and
incorporated. Sometime in 2000, DPDCI turned over to PHCC the ownership and possession of the
condominium units, except for the two saleable commercial units/spaces:

1. G/F Level BAS covered by Condominium Certificate of Title (CCT) No. 21030 utilized as
the PHCC’s administration office, and

2. G/F Level 4-A covered by CCT No. PT-27396/C-136-II used as living quarters by the
building administrator.

Although used by PHCC, DPDCI was assessed association dues for these two units.

Meanwhile, in March 1999, petitioner Pacifico Lim, as president of DPDCI, filed an Application for
Alteration of Plan4 pertaining to the construction of 22 storage units in the spaces adjunct to the
parking area of the building. The application, however, was disapproved as the proposed alteration
would obstruct light and ventilation.

In August 2004, through its Board,5 PHCC approved a settlement offer from DPDCI for the set-off of
the latter’s association dues arrears with the assignment of title over CCT Nos. 21030 and PT-
27396/C-136-II and their conversion into common areas. Thus, CCT Nos. PT-43400 and PT-43399
were issued by the Registrar of Deeds of Pasig City in favor of PHCC in lieu of the old titles. The
said settlement between the two corporations likewise included the reversion of the 22 storage
spaces into common areas. With the conformity of PHCC, DPDCI’s application for alteration
(conversion of unconstructed 22 storage units and units GF4-A and BAS from saleable to common
areas) was granted by the Housing and Land Use Regulatory Board (HLURB).6
In August 2008, petitioners, as condominium unit-owners, filed a complaint7 before the HLURB
against DPDCI for unsound business practices and violation of the MDDR. The case was docketed
as REM- 080508-13906. They alleged that DPDCI committed misrepresentation in their circulated
flyers and brochures as to the facilities or amenities that would be available in the condominium and
failed to perform its obligation to comply with the MDDR.

In defense, DPDCI denied that it had breached its promises and representations to the public
concerning the facilities in the condominium. It alleged that the brochure attached to the complaint
was "a mere preparatory draft" and not the official one actually distributed to the public, and that the
said brochure contained a disclaimer as to the binding effect of the supposed offers therein. Also,
DPDCI questioned the petitioners’ personality to sue as the action was a derivative suit.

After due hearing, the HLURB rendered its decision8 in favor of petitioners. It held as invalid the
agreement entered into between DPDCI and PHCC, as to the alteration or conversion of the subject
units into common areas, which it previously approved, for the reason that it was not approved by
the majority of the members of PHCC as required under Section 13 of the MDDR. It stated that
DPDCI’s defense, that the brochure was a mere draft, was against human experience and a
convenient excuse to avoid its obligation to provide the facility of the project. The HLURB further
stated that the case was not a derivative suit but one which involved contracts of sale of the
respective units between the complainants and DPDCI, hence, within its jurisdiction pursuant to
Section 1, Presidential Decree (P.D.) No. 957 (The Subdivision and Condominium Buyers’
Protective Decree), as amended. The decretal portion of the HLURB decision reads:

WHEREFORE, in view of the foregoing, judgment is hereby rendered:

1. Ordering respondent to restore/provide proper gym facilities, to restore the hallway at the
mezzanine floor.

2. Declaring the conversion/alteration of 22 storage units and Units GF4-A and BAS as
illegal, and consequently, and ordering respondent to continue paying the condominium dues
for these units, with interest and surcharge.

3. Ordering the Respondent to pay the sum of Php998,190.70, plus interests and
surcharges, as condominium dues in arrears and turnover the administration office to PHCC
without any charges pursuant to the representation of the respondent in the brochures it
circulated to the public with a corresponding credit to complainants’ individual shares as
members of PHCC entitled to such refund or reimbursements.

4. Ordering the Respondent to refund to the PHCC the amount of Php1,277,500.00,

representing the cost of the deep well, with interests and surcharges with a corresponding
credit to complainants’ individual shares as members of PHCC entitled to such refund or
reimbursements.

5. Ordering the Respondent to pay the complainants moral and exemplary damages in the
amount of ₱ 10,000.00 and attorney’s fees in the amount of ₱ 10,000.00.

All other claims and counterclaims are hereby dismissed accordingly.

IT IS SO ORDERED.9

Aggrieved, DPDCI filed with the CA its Petition for Certiorari and Prohibition10 dated August 11, 2009,
on the ground that the HLURB decision was a patent nullity constituting an act without or beyond its
jurisdiction and that it had no other plain, speedy and adequate remedy in the course of law.

On March 17, 2010, the CA rendered the assailed decision which disposed of the case in favor of
DPDCI as follows:

WHEREFORE, in view of the foregoing, the petition is GRANTED. Accordingly, the

assailed Decision of the HLURB in Case No. REM-0800508-13906 is ANNULLED and SET ASIDE
and a new one is entered DISMISSING the Complaint a quo.

IT IS SO ORDERED.11
The CA ruled that the HLURB had no jurisdiction over the complaint filed by petitioners as the
controversy did not fall within the scope of the administrative agency’s authority under P.D. No. 957.
The HLURB not only relied heavily on the brochures which, according to the CA, did not set out an
enforceable obligation on the part of DPDCI, but also erroneously cited Section 13 of the MDDR to
support its finding of contractual violation.

The CA held that jurisdiction over PHCC, an indispensable party, was neither acquired nor waived
by estoppel. Citing Carandang v. Heirs of De Guzman,12 it held that, in any event, the action should
be dismissed because the absence of PHCC, an indispensable party, rendered all subsequent
actuations of the court void, for want of authority to act, not only as to the absent parties but even as
to those present.

Finally, the CA held that the rule on exhaustion of administrative remedies could be relaxed. Appeal
was not a speedy and adequate remedy as jurisdictional questions were continuously raised but
ignored by the HLURB. In the present case, however, "[t]he bottom line is that the challenged
decision is one that had been rendered in excess of jurisdiction, if not with grave abuse of discretion
amounting to lack or excess of jurisdiction."13

Petitioners filed a motion for reconsideration14 of the said decision. The motion, however, was denied
by the CA in its Resolution dated October 7, 2010.

Hence, petitioners interpose the present petition before this Court anchored on the following

GROUNDS

(1)

THE COURT OF APPEALS ERRED IN HOLDING THAT THE HLURB HAS NO

JURISDICTION OVER THE INSTANT CASE;

(2)

THE COURT OF APPEALS ALSO ERRED IN FINDING THAT PHCC IS AN

INDISPENSABLE PARTY WHICH WARRANTED THE DISMISSAL OF THE CASE BY
REASON OF IT NOT HAVING BEEN IMPLEADED IN THE CASE;

(3)

THE COURT OF APPEALS HAS LIKEWISE ERRED IN RELAXING THE RULE ON NON-
EXHAUSTION OF ADMINISTRATIVE REMEDIES BY DECLARING THAT THE APPEAL
MAY NOT BE A SPEEDY AND ADEQUATE REMEDY WHEN JURISDICTIONAL
QUESTIONS WERE CONTINUOUSLY RAISED BUT IGNORED BY THE HLURB; and

(4)

THAT FINALLY, THE COURT A QUO ALSO ERRED IN NOT GIVING DUE RESPECT OR
EVEN FINALITY TO THE FINDINGS OF THE HLURB.15

Petitioners contend that the HLURB has jurisdiction over the subject matter of this case. Their
complaint with the HLURB clearly alleged and demanded specific performance upon DPDCI of the
latter’s contractual obligation under their individual contracts to provide a back-up water system as
part of the amenities provided for in the brochure, together with an administration office, proper gym
facilities, restoration of a hallway, among others. They point out that the violation by DPDCI of its
obligations enumerated in the said complaint squarely put their case within the ambit of Section 1,
P.D. No. 957, as amended, enumerating the cases that are within the exclusive jurisdiction of the
HLURB. Likewise, petitioners argue that the case was not a derivative suit as they were not suing for
and in behalf of PHCC. They were suing, in their individual capacities as condominium unit buyers,
their developer for breach of contract. In support of their view that PHCC was not an indispensable
party, petitioners even quoted the dispositive portion of the HLURB decision to show that complete
relief between or among the existing parties may be obtained without the presence of PHCC as a
party to this case. Petitioners further argue that DPDCI’s petition before the CA should have been
dismissed outright for failure to comply with Section 1, Rule XVI of the 2004 Rules of Procedure of
the HLURB providing for an appeal to the Board of Commissioners by a party aggrieved by a
decision of a regional officer.

DPDCI, in its Comment,16 strongly objects to the arguments of petitioners and insists that the CA did
not err in granting its petition. It posits that the HLURB has no jurisdiction over the complaint filed by
petitioners because the controversies raised therein are in the nature of "intra-corporate disputes."
Thus, the case does not fall within the jurisdiction of the HLURB under Section 1, P.D. No. 957 and
P.D. No. 1344. According to DPDCI, petitioners sought to address the invalidation of the corporate
acts duly entered and executed by PHCC as a corporation of which petitioners are admittedly
members of, and not the acts pertaining to their ownership of the units. Such being the case, PHCC
should have been impleaded as a party to the complaint. Its non-inclusion as an indispensable party
warrants the dismissal of the case. DPDCI further avers that the doctrine of exhaustion is
inapplicable inasmuch as the issues raised in the petition with the CA are purely legal; that the
challenged administrative act is patently illegal; and that the procedure of the HLURB does not
provide a plain, speedy and adequate remedy and its application may cause great and irreparable
damage. Finally, it claims that the decision of the HLURB Arbiter has not attained finality, the same
having been issued without jurisdiction.

Essentially, the issues to be resolved are: (1) whether the HLURB has jurisdiction over the complaint
filed by the petitioners; (2) whether PHCC is an indispensable party; and (3) whether the rule on
exhaustion of administrative remedies applies in this case.

The petition fails.

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's 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.17 Thus, it was ruled that the jurisdiction of the HLURB to hear and
decide cases is determined by the nature of the cause of action, the subject matter or property
involved and the parties.18

Generally, the extent to which an administrative agency may exercise its powers depends largely, if
not wholly, on the provisions of the statute creating or empowering such agency.19 With respect to the
HLURB, to determine if said agency has jurisdiction over petitioners’ cause of action, an examination
of the laws defining the HLURB’s jurisdiction and authority becomes imperative. P.D. No.
957,20 specifically Section 3, granted the National Housing Authority (NHA) the "exclusive jurisdiction
to regulate the real estate trade and business." Then came P.D. No. 134421 expanding the jurisdiction
of the NHA (now HLURB), as follows:

SECTION 1. In the exercise of its functions to regulate the real estate trade and business and in
addition to its powers provided for in Presidential Decree No. 957, the National Housing Authority
shall have exclusive jurisdiction to hear and decide cases of the following nature:

(a) Unsound real estate business practices;

(b) Claims involving refund and any other claims filed by subdivision lot or condominium unit
buyer against the project owner, developer, dealer, broker or salesman; and

(c) Cases involving specific performance of contractual and statutory obligations filed by
buyers of subdivision lot or condominium unit against the owner, developer, dealer, broker or
salesman.

This provision must be read in light of the law’s preamble, which explains the reasons for enactment
of the law or the contextual basis for its interpretation.22 A statute derives its vitality from the purpose
for which it is enacted, and to construe it in a manner that disregards or defeats such purpose is to
nullify or destroy the law.23 P.D. No. 957, as amended, aims to protect innocent subdivision lot and
condominium unit buyers against fraudulent real estate practices.24
The HLURB is given a wide latitude in characterizing or categorizing acts which may constitute
unsound business practice or breach of contractual obligations in the real estate trade. This grant of
expansive jurisdiction to the HLURB does not mean, however, that all cases involving subdivision
lots or condominium units automatically fall under its jurisdiction. The CA aptly quoted the case
of Christian General Assembly, Inc. v. Ignacio,25 wherein the Court held that:

The mere relationship between the parties, i.e., that of being subdivision owner/developer and
subdivision lot buyer, does not automatically vest jurisdiction in the HLURB. For an action to fall
within the exclusive jurisdiction of the HLURB, the decisive element is the nature of the action as
enumerated in Section 1 of P.D. 1344. On this matter, we have consistently held that the concerned
administrative agency, the National Housing Authority (NHA) before and now the HLURB, has
jurisdiction over complaints aimed at compelling the subdivision developer to comply with its
contractual and statutory obligations.26 [Emphases supplied]

In this case, the complaint filed by petitioners alleged causes of action that apparently are not
cognizable by the HLURB considering the nature of the action and the reliefs sought. A perusal of
the complaint discloses that petitioners are actually seeking to nullify and invalidate the duly
constituted acts of PHCC - the April 29, 2005 Agreement27 entered into by PHCC with DPDCI and its
Board Resolution28 which authorized the acceptance of the proposed offsetting/settlement of DPDCI’s
indebtedness and approval of the conversion of certain units from saleable to common areas. All
these were approved by the HLURB. Specifically, the reliefs sought or prayers are the following:

1. Ordering the respondent to restore the gym to its original location;

2. Ordering the respondent to restore the hallway at the second floor;

3. Declaring the conversion/alteration of 22 storage units and Units GF4-A and BAS as
illegal, and consequently, ordering respondent to continue paying the condominium dues for
these units, with interest and surcharge;

4. Ordering the respondent to pay the sum of PHP998,190.70, plus interest and surcharges,
as condominium dues in arrears and turnover the administration office to PHCC without any
charges pursuant to the representation of the respondent in the brochures it circulated to the
public;

5. Ordering the respondent to refund to the PHCC the amount of PHP1,277,500.00,

representing the cost of the deep well, with interests and surcharges;

6. Ordering the respondent to pay the complainants moral/exemplary damages in the

amount of PHP100,000.00; and

7. Ordering the respondent to pay the complainant attorney’s fees in the amount of
PHP100,000.00, and PHP3,000.00 for every hearing scheduled by the Honorable Office.29

As it is clear that the acts being assailed are those of PHHC, this case cannot prosper for failure to
implead the proper party, PHCC.

An indispensable party is defined as one who has such an interest in the controversy or subject
matter that a final adjudication cannot be made, in his absence, without injuring or affecting that
interest.30 In the recent case of Nagkakaisang Lakas ng Manggagawa sa Keihin (NLMK-OLALIA-
KMU) v. Keihin Philippines Corporation,31 the Court had the occasion to state that:

Under Section 7, Rule 3 of the Rules of Court, "parties in interest without whom no final
determination can be had of an action shall be joined as plaintiffs or defendants." If there is a failure
to implead an indispensable party, any judgment rendered would have no effectiveness. It is
"precisely ‘when an indispensable party is not before the court (that) an action should be dismissed.’
The absence of an indispensable party renders all subsequent actions of the court null and void for
want of authority to act, not only as to the absent parties but even to those present." The purpose of
the rules on joinder of indispensable parties is a complete determination of all issues not only
between the parties themselves, but also as regards other persons who may be affected by the
judgment. A decision valid on its face cannot attain real finality where there is want of indispensable
parties.32 (Underscoring supplied)
Similarly, in the case of Plasabas v. Court of Appeals,33 the Court held that a final decree would
necessarily affect the rights of indispensable parties so that the Court could not proceed without their
presence. In support thereof, the Court in Plasabas cited the following authorities, thus:

"The general rule with reference to the making of parties in a civil action requires the joinder of all
indispensable parties under any and all conditions, their presence being a sine qua non of the
exercise of judicial power. (Borlasa v. Polistico, 47 Phil. 345, 348) For this reason, our Supreme
Court has held that when it appears of record that there are other persons interested in the subject
matter of the litigation, who are not made parties to the action, it is the duty of the court to suspend
the trial until such parties are made either plaintiffs or defendants. (Pobre, et al. v. Blanco, 17 Phil.
156). x x x Where the petition failed to join as party defendant the person interested in sustaining the
proceeding in the court, the same should be dismissed. x x x When an indispensable party is not
before the court, the action should be dismissed. (People, et al. v. Rodriguez, et al., G.R. Nos. L-
14059-62, September 30, 1959) (sic)

"Parties in interest without whom no final determination can be had of an action shall be joined either
as plaintiffs or defendants. (Sec. 7, Rule 3, Rules of Court). The burden of procuring the presence of
all indispensable parties is on the plaintiff. (39 Amjur [sic] 885). The evident purpose of the rule is to
prevent the multiplicity of suits by requiring the person arresting a right against the defendant to
include with him, either as co-plaintiffs or as co-defendants, all persons standing in the same
position, so that the whole matter in dispute may be determined once and for all in one litigation.
(Palarca v. Baginsi, 38 Phil. 177, 178).

From all indications, PHCC is an indispensable party and should have been impleaded, either as a
plaintiff or as a defendant,34 in the complaint filed before the HLURB as it would be directly and
adversely affected by any determination therein. To belabor the point, the causes of action, or the
acts complained of, were the acts of PHCC as a corporate body. Note that in the judgment rendered
by the HLURB, the dispositive portion in particular, DPDCI was ordered (1) to pay ₱ 998,190.70,
plus interests and surcharges, as condominium dues in arrears and turnover the administration
office to PHCC; and (2) to refund to PHCC ₱ 1,277,500.00, representing the cost of the deep well,
with interests and surcharges. Also, the HLURB declared as illegal the agreement regarding the
conversion of the 22 storage units and Units GF4-A and BAS, to which agreement PHCC was a
party.

Evidently, the cause of action rightfully pertains to PHCC. Petitioners cannot exercise the same
except through a derivative suit. In the complaint, however, there was no allegation that the action
was a derivative suit. In fact, in the petition, petitioners claim that their complaint is not a derivative
suit.35 In the cited case of Chua v. Court of Appeals,36 the Court ruled:

For a derivative suit to prosper, it is required that the minority stockholder suing for and on behalf of
the corporation must allege in his complaint that he is suing on a derivative cause of action on behalf
of the corporation and all other stockholders similarly situated who may wish to join him in the suit. It
is a condition sine qua non that the corporation be impleaded as a party because not only is the
corporation an indispensable party, but it is also the present rule that it must be served with process.
The judgment must be made binding upon the corporation in order that the corporation may get the
benefit of the suit and may not bring subsequent suit against the same defendants for the same
cause of action. In other words, the corporation must be joined as party because it is its cause of
action that is being litigated and because judgment must be a res adjudicata against it.
(Underscoring supplied)

Without PHCC as a party, there can be no final adjudication of the HLURB’s judgment. The CA was,
thus, correct in ordering the dismissal of the case for failure to implead an indispensable party.

To justify its finding of contractual violation, the HLURB cited a provision in the MDDR, to wit:

Section 13. Amendment. After the corporation shall have been created, organized and operating,
this MDDR may be amended, in whole or in part, by the affirmative vote of Unit owners constituting
at least fifty one (51%) percent of the Unit shares in the Project at a meeting duly called pursuant to
the Corporation By Laws and subject to the provisions of the Condominium Act.

This citation, however, is misplaced as the above-quoted provision pertains to the amendment of the
MDDR. It should be stressed that petitioners are not asking for any change or modification in the
terms of the MDDR. What they are really praying for is a declaration that the agreement regarding
the alteration/conversion is illegal. Thus, the Court sustains the CA’s finding that:
There was nothing in the records to suggest that DPDCI sought the amendment of a part or the
whole of such MDDR. The cited section is somewhat consistent only with the principle that an
amendment of a corporation’s Articles of Incorporation must be assented to by the stockholders
holding more than 50% of the shares. The MDDR does not contemplate, by such provision, that all
corporate acts ought to be with the concurrence of a majority of the unit owners.37

Moreover, considering that petitioners, who are members of PHCC, are ultimately challenging the
agreement entered into by PHCC with DPDCI, they are assailing, in effect, PHCC’s acts as a body
corporate. This action, therefore, partakes the nature of an "intra-corporate controversy," the
jurisdiction over which used to belong to the Securities and Exchange Commission (SEC), but
transferred to the courts of general jurisdiction or the appropriate Regional Trial
Court (RTC), pursuant to Section 5b of P.D. No. 902-A,38 as amended by Section 5.2 of Republic
Act (R.A.) No. 8799.39

An intra-corporate controversy is one which "pertains to any of the following relationships: (1)
between the corporation, partnership or association and the public; (2) between the corporation,
partnership or association and the State in so far as its franchise, permit or license to operate is
concerned; (3) between the corporation, partnership or association and its stockholders, partners,
members or officers; and (4) among the stockholders, partners or associates themselves."40

Based on the foregoing definition, there is no doubt that the controversy in this case is essentially
intra-corporate in character, for being between a condominium corporation and its members-unit
owners. In the recent case of Chateau De Baie Condominium Corporation v. Sps. Moreno,41 an
action involving the legality of assessment dues against the condominium owner/developer, the
Court held that, the matter being an intra-corporate dispute, the RTC had jurisdiction to hear the
same pursuant to R.A. No. 8799.

As to the alleged failure to comply with the rule on exhaustion of administrative remedies, the Court
again agrees with the position of the CA that the circumstances prevailing in this case warranted a
relaxation of the rule.

The doctrine of exhaustion of administrative remedies is a cornerstone of our judicial system. The 1âwphi1

thrust of the rule is that courts must allow administrative agencies to carry out their functions and
discharge their responsibilities within the specialized areas of their respective competence.42 It has
been held, however, that the doctrine of exhaustion of administrative remedies and the doctrine of
primary jurisdiction are not ironclad rules. In the case of Republic of the Philippines v. Lacap,43 the
Court enumerated the numerous exceptions to these rules, namely: (a) where there is estoppel on
the part of the party invoking the doctrine; (b) where the challenged administrative act is patently
illegal, amounting to lack of jurisdiction; (c) where there is unreasonable delay or official inaction that
will irretrievably prejudice the complainant; (d) where the amount involved is relatively so small as to
make the rule impractical and oppressive; (e) where the question involved is purely legal and will
ultimately have to be decided by the courts of justice; (f) where judicial intervention is urgent; (g)
where the application of the doctrine may cause great and irreparable damage; (h) where the
controverted acts violate due process; (i) where the issue of non-exhaustion of administrative
remedies has been rendered moot; (j) where there is no other plain, speedy and adequate remedy;
(k) where strong public interest is involved; and (l) in quo warranto proceedings.44 [Underscoring
supplied]

The situations (b) and (e) in the foregoing enumeration obtain in this case.

The challenged decision of the HLURB is patently illegal having been rendered in excess of
jurisdiction, if not with grave abuse of discretion amounting to lack or excess of jurisdiction. Also, the
issue on jurisdiction is purely legal which will have to be decided ultimately by a regular court of law.
As the Court wrote in Vigilar v. Aquino:45

It does not involve an examination of the probative value of the evidence presented by the parties.
There is a question of law when the doubt or difference arises as to what the law is on a certain state
of facts, and not as to the truth or the falsehood of alleged facts. Said question at best could be
resolved only tentatively by the administrative authorities. The final decision on the matter rests not
with them but with the courts of justice. Exhaustion of administrative remedies does not apply,
because nothing of an administrative nature is to be or can be done. The issue does not require
technical knowledge and experience but one that would involve the interpretation and application of
law.
Finally, petitioners faulted the CA in not giving respect and even finality to the findings of fact of the
HLURB. Their reliance on the case of Dangan v. NLRC,46 reiterating the well-settled principles
involving decisions of administrative agencies, deserves scant consideration as the decision of the
HLURB in this case is manifestly not supported by law and jurisprudence.

Petitioners, therefore, cannot validly invoke DPDCI’s failure to fulfill its obligation on the basis of a
plain draft leaflet which petitioners were able to obtain, specifically Pacifico Lim, having been a
president of DPDCI. To accord petitioners the right to demand compliance with the commitment
under the said brochure is to allow them to profit by their own act. This, the Court cannot tolerate.

In sum, inasmuch as the HLURB has no jurisdiction over petitioners’ complaint, the Court sustains
the subject decision of the CA that the HLURB decision is null and void ab initio. This disposition,
however, is without prejudice to any action that the parties may rightfully file in the proper forum.

WHEREFORE, the petition is DENIED.

SO ORDERED.

JOSE CATRAL MENDOZA

Associate Justice

WE CONCUR:

PRESBITERO J. VELASCO, JR.

Associate Justice
Chairperson

DIOSDADO M. PERALTA ROBERTO A. ABAD

Associate Justice Associate Justice

ESTELA M. PERLAS-BERNABE
Associate Justice

ATTESTATION

I attest that the conclusions in the above Decision had been reached in consultation before the case
was assigned to the writer of the opinion of the Court’s Division.

PRESBITERO J. VELASCO, JR.

Associate Justice
Chairperson, Third Division

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution and the Division Chairperson’s Attestation, I
certify that the conclusions in the above Decision had been reached in consultation before the case
was assigned to the writer of the opinion of the Court’s Division.

RENATO C. CORONA
Chief Justice

Footnotes

1
Rollo, pp. 37-52. Penned by Associate Justice Apolinario D. Bruselas, Jr. with Associate
Justice Noel G. Tijam and Associate Justice Rodil V. Zalameda, concurring.

2
Id. at 69-70.
3
Id. at 103.

4
Id. at 141.

5
Id. at 144-145.

6
Id. at 175.

7
Annex "D" of Petition, id. at 71.

8
Dated May 25, 2009, Annex "H" of Petition, id. at 189-194.

9
Rollo, pp. 193-194.

10
Annex "I" of Petition, id. at 195.

11
Rollo, p. 52.

12
G.R. No. 160347, November 29, 2006, 508 SCRA 469.

13
Rollo, pp. 51-52.

14
Annex "B" of Petition, id. at 53-67.

15
Rollo, p. 12.

16
Dated January 16, 2011, id. at 335-348.

City of Dumaguete v. Philippine Ports Authority, G.R. No. 168973, August 24, 2011,
17

citing Gomez v. Montalban, G.R. No. 174414, March 14, 2008, 548 SCRA 693, 705-706.

Peralta v. De Leon, G.R. No. 187978, November 24, 2010, 636 SCRA 232, citing De los
18

Santos v. Sarmiento, G.R. No. 154877, March 27, 2007, 519 SCRA 62, 73.

19
Peralta v. De Leon, G.R. No. 187978, November 24, 2010, 636 SCRA 232, 242.

Regulating the Sale of Subdivision Lots and Condominiums, Providing Penalties for
20

Violations Thereof.

Empowering the National Housing Authority to Issue Writ of Execution in the Enforcement
21

of Its Decision under Presidential Decree No. 957.

Lim v. Ruby Shelter Builders and Realty Development Corporation, G.R. No. 182707,
22

September 1, 2010, 629 SCRA 740, 743.

Luzon Development Bank v. Enriquez, G.R. Nos. 168646 & 168666, January 12, 2011, 639
23

SCRA 332, 337-338, citing Pilipinas Kao, Inc. v. Court of Appeals, 423 Phil. 834, 858 (2001).

Id. at 350, citing Metropolitan Bank and Trust Company, Inc. v. SLGT Holdings, Inc., G.R.
24

Nos. 175181-175182, 175354 &175387-175388, September 14, 2007, 533 SCRA 516, 526.

25
G.R. No. 164789, August 27, 2009, 597 SCRA 266.

Christian General Assembly, Inc. v. Ignacio, G.R. No. 164789, August 27, 2009, 597 SCRA
26

266, 281-282, citing Roxas v. Court of Appeals, 439 Phil. 966, 976-977 (2002).

27
Rollo, pp. 89-91.

28
Id. at 144-145.

29
Rollo, pp. 76-77.
 Fort Bonifacio Development Corporation v. Hon. Sorongon, G.R. No. 176709, May 8, 2009,
30

587 SCRA 613, 622-623, citing Moldes v. Villanueva, G.R. No. 161955, 31 August 2005, 48
SCRA 697, 707.

31
G.R. No. 171115, August 9, 2010, 627 SCRA 179.

Nagkakaisang Lakas ng Manggagawa sa Keihin (NLMK-OLALIA-KMU) v. Keihin

32

Philippines Corporation, G.R. No. 171115, August 9, 2010, 627 SCRA 179, 186-187.

33
G.R. No. 166519, March 31, 2009, 582 SCRA 686.

34
Section 7, Rule 3, Rules of Court

35
Rollo, p. 20

36
485 Phil. 644, 655-656 (2004).

37
Id. at 46.

Reorganization of the Securities and Exchange Commission with Additional Power and
38

Placing the said Agency under the Administrative Supervision of the Office of the President.

39
The Securities Regulation Code.

40
Yujuico v. Quiambao, G.R. No. 168639, January 29, 2007, 513 SCRA 243, 254.

41
G.R. No. 186271, February 23, 2011.

Universal Robina Corporation v. Laguna Lake Development Authority, G.R. No. 191427,
42

May 30, 2011, citing Caballes v. Perez-Sison, G.R. No. 131759, March 23, 2004, 426 SCRA
98.

43
G.R. No. 158253, March 2, 2007, 517 SCRA 255.

44
Vigilar v. Aquino, G.R. No. 180388, January 18, 2011, 639 SCRA 772, 777.

G.R. No. 180388, January 18, 2011, 639 SCRA 772, 778, citing Republic of the Philippines
45

v. Lacap, G.R. No. 158253, March 2, 2007, 517 SCRA 255.

46
G.R. No. 63127-28, 212 Phil. 653 (1984).