2017 Remedial Law, Q2

Santa filed against Era in the RTC of Quezon City an action for specific performance praying for the delivery of a parcel of land subject of their contract of sale. Unknown to the parties, the case was inadvertently raffled to an RTC designated as a special commercial court. Later, the RTC rendered judgment adverse to Era, who, upon realizing that the trial court was not a regular RTC, approaches you and wants you to file a petition to have the judgment annulled for lack of jurisdiction.
What advice would you give to Era? Explain your answer. (4%)

Quick check

Does a Regional Trial Court designated as a Special Commercial Court lose general jurisdiction over ordinary civil actions?

What is the legal effect when an ordinary civil action is inadvertently raffled to a Special Commercial Court branch?

Which ground under Rule 47 of the Rules of Civil Procedure permits a petition for annulment of judgment?

How does Philippine jurisprudence distinguish jurisdiction from the exercise of jurisdiction?

What is the proper advice for a litigant seeking to annul a judgment because the case was heard by a Special Commercial Court?

Learn more about these topics

1. Special Commercial Courts
Regional Trial Courts designated as Special Commercial Courts do not constitute separate or distinct judicial entities with limited subject-matter jurisdiction. They remain trial courts of general jurisdiction created by statute. The administrative designation of specific court branches to handle intra-corporate disputes, intellectual property, and other commercial matters is a matter of court management and internal case allocation. Consequently, an improper raffle or assignment of an ordinary civil action to a Special Commercial Court does not divest the trial court of its statutory jurisdiction over civil cases.

2. Annulment of Judgment
Under Rule 47 of the Rules of Civil Procedure, a petition for annulment of judgment is an extraordinary remedy available only on two specific grounds: extrinsic fraud and lack of jurisdiction. Lack of jurisdiction refers strictly to lack of jurisdiction over the subject matter or over the person of the defending party. Because a Special Commercial Court possesses general RTC subject-matter jurisdiction, inadvertently rendering judgment in an ordinary civil suit constitutes an exercise of jurisdiction rather than an absence of jurisdiction, making an annulment petition legally unviable.

3. Jurisdiction Versus Exercise
Jurisdiction is the authority to hear and determine a cause, while the exercise of jurisdiction relates to the decision or order rendered by the court. An error in the internal distribution or assignment of cases among branches of the same Regional Trial Court involves a procedural irregularity in the exercise of jurisdiction rather than a total absence of subject-matter jurisdiction. Procedural defects in case allocation must be timely raised during trial proceedings and cannot serve as a valid ground to nullify a final and executory judgment.

About these questions and answers
The questions reproduced here are the official texts of the Philippine Bar Examinations, published by the Supreme Court. They are reproduced for study purposes.The suggested answers are the author’s own.

They are not official answers, have no connection with the Supreme Court, the Office of the Bar Confidant, or any bar review institution, and are not endorsed by any of them. Official answer keys, where released, should be preferred over anything here.Nothing on this page is legal advice, and reading it creates no lawyer-client relationship. Do not rely on any suggested answer in an actual legal matter. Consult counsel on your own facts.Suggested answers reflect the law and jurisprudence the author considers applicable as of the date shown.

Where a question comes from an earlier examination, the suggested answer applies the law as it now stands, which may differ from the law in force when the question was given, and may therefore differ from what would have been the correct answer at that time. Where the difference is material, the answer notes it.The practice scoring feature measures wording overlap with the suggested answer. It is not a grade, carries no official weight, and says nothing about whether your reasoning is sound.Errors are possible. If you find one, please tell me and I will correct it.Last reviewed: October 2026