Prince Chong entered into a lease contract with King Kong over a commercial building where the former conducted his hardware business. The lease contract stipulated, among others, a monthly rental of P50,000.00 for a four (4)-year period commencing on January 1, 2010. On January 1, 2013, Prince Chong died. Kin Il Chong was appointed administrator of the estate of Prince Chong, but the former failed to pay the rentals for the months of January to June 2013 despite King Kong’s written demands. Thus, on July 1, 2013, King Kong filed with the Regional Trial Court (RTC) an action for rescission of contract with damages and payment of accrued rentals as of June 30, 2013. (4%)
(A) Can Kin Il Chong move to dismiss the complaint on the ground that the RTC is without jurisdiction since the amount claimed is only P300,000.00?
(B) If the rentals accrued during the lifetime of Prince Chong, and King Kong also filed the complaint for sum of money during that time, will the action be dismissible upon Prince Chong’s death during the pendency of the case?
Suggested answer only. Not an official answer and not legal advice.
(A) No, Kin Il Chong cannot move to dismiss for lack of jurisdiction; and (B) no, the action will not be dismissible upon Prince Chong's death. Under B.P. 129, an action for rescission of contract is incapable of pecuniary estimation and
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Quick check
Which court has exclusive original jurisdiction over an action for rescission of a lease contract regardless of the amount of accrued rentals claimed?
An action for rescission of contract is incapable of pecuniary estimation and falls under the exclusive original jurisdiction of the Regional Trial Court.
What happens to a pending civil action for a contractual money claim when the defendant dies before final judgment is rendered?
Under Rule 3, Section 20, a contractual money action filed before death is not dismissed and continues against the estate.
How is a final money judgment obtained against a defendant who died during the pendency of a contractual action enforced?
A money judgment obtained against a deceased defendant is enforced as a claim against the estate under Rule 86.
What is the primary test to determine whether a civil action is incapable of pecuniary estimation under B.P. Blg. 129?
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Within what period must an executor or administrator be substituted as a party when a defendant dies during a pending money suit?
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Learn more about these topics
1. Rescission Jurisdiction
Under Section 19(1) of Batas Pambansa Blg. 129, actions in which the subject of the litigation is incapable of pecuniary estimation fall within the exclusive original jurisdiction of the Regional Trial Court. An action for rescission of a lease contract seeks to restore the status quo ante rather than merely collect a debt. Although a claim for unpaid rentals and damages is included, the primary relief of rescission renders the subject matter incapable of pecuniary estimation, vesting subject matter jurisdiction exclusively in the Regional Trial Court regardless of the monetary amount claimed.
2. Surviving Money Actions
Under Rule 3, Section 20 of the Revised Rules of Court, when an action is for recovery of money arising from contract, express or implied, and the defendant dies before entry of final judgment, the case shall not be dismissed. Instead, the action continues against the estate of the deceased defendant. The executor or administrator of the estate is substituted as defendant, and the court retains jurisdiction over the case until final judgment. Any monetary award obtained by the plaintiff is subsequently enforced as a claim against the estate under Rule 86.
3. Party Substitution Rule
When a party to a pending contractual money action dies prior to final judgment, procedural due process mandates the formal substitution of the legal representative of the deceased. The trial court orders the legal representative, administrator, or executor of the estate to appear and be substituted within thirty days from notice. This procedural mechanism ensures that the rights of the estate are fully protected during litigation, preventing the automatic abatement of contractual actions and preserving the jurisdiction of the court to render a binding judgment.