Eduardo, a resident of the City of Manila, filed before the Regional Trial Court (R TC) of Manila a complaint for the annulment of a Deed of Real Estate Mortgage he signed in favor of Galaxy Bank (Galaxy), and the consequent· foreclosure and auction sale of his mortgaged Makati property. Galaxy filed a Motion to Dismiss on the ground of improper venue alleging that the complaint should be filed with the RTC ofMakati since the complaint involves the ownership and possession of Eduardo’s lot. Resolve the motion with reasons. (5%)
Suggested answer only. Not an official answer and not legal advice.
The Motion to Dismiss filed by Galaxy Bank should be denied.
Under Section 2, Rule 4 of the Rules of Court and settled jurisprudence (PNB-Republic Bank v. Sian-Limsiaco), an action for the annulment of a real estate mortgage is a personal action because a mortgage contract does not directly affect title to or possession of real property. Personal actions may be commenced and tried where the plaintiff or defendant resides, at the election of the plaintiff.
Here, Eduardo instituted the action for annulment of the real estate mortgage in the Regional Trial Court of Manila, where he resides. Since the action is personal in nature, venue was properly laid in Manila, making the location of the mortgaged property in Makati immaterial.
Therefore, Galaxy Bank's Motion to Dismiss on the ground of improper venue is untenable and must be denied.
This is not an official scoring system and carries no weight with the Supreme Court or any bar review provider. It measures how much of the suggested answer's wording your response covers, not whether your reasoning is correct. For practice only.
Quick check
What determines whether a civil action is classified as a real action or a personal action?
The classification of an action as real or personal depends on the primary relief sought in the complaint.
Where is the proper venue for instituting a personal action under Rule 4 of the Rules of Court?
Personal actions may be commenced and tried where the plaintiff or defendant resides, at the election of the plaintiff.
Why is an action for the annulment of a real estate mortgage categorized as a personal action?
An action to annul a mortgage is personal because the mortgage does not convey title to or possession of the real property.
If a plaintiff residing in Manila files a complaint to annul a mortgage over his property located in Makati, where is venue proper?
Because the action to annul a mortgage is personal, venue is properly laid in the RTC of Manila where the plaintiff resides.
Under Rule 4 of the Rules of Court, what is the legal effect of instituting a personal action in the RTC of the plaintiff's residence?
Venue is properly laid when a personal action is commenced in the court of the place where the plaintiff resides.
Learn more about these topics
1. Action Nature
In civil procedure, actions are classified as either real or personal depending on their primary objective. A real action affects title to, possession of, or interest in real property, whereas a personal action seeks the recovery of personal property, enforcement of a contract, or recovery of damages. An action to annul a real estate mortgage is considered a personal action because a mortgage is merely an accessory contract that does not convey title to or ownership over the mortgaged real estate.
2. Venue of Actions
Venue refers to the geographic location or specific court where an action may be instituted and tried. Under Rule 4 of the Rules of Court, real actions must be commenced and tried in the court having jurisdiction over the area where the real property is situated. Conversely, personal actions may be commenced and tried where the plaintiff resides, where the defendant resides, or in the case of a non-resident defendant, where he may be found, at the election of the plaintiff.
3. Mortgage Annulment Venue
When a plaintiff files an action primarily seeking the annulment of a mortgage contract prior to any valid transfer of title resulting from foreclosure, the action remains personal in character. The fact that the property subject of the mortgage is located in a different municipality or city does not compel the plaintiff to file the case in that location. Venue is properly laid in the RTC of the city where the plaintiff actually resides at the time the complaint is filed.