Ulrich is resident and owner of a house and lot situated in Pasay City. Thereafter, Ulrich discovered a deed of real estate mortgage over the house and lot which he supposedly executed to secure a loan from Nigel. The mortgage contract contained a stipulation that “all civil actions arising from or connected with this instrument or any of its provisions shall be brought before the proper courts of Bacolod City, to the exclusion of all other venues of action which are hereby expressly waived.” Aggrieved, Ulrich filed against Nigel an action to declare void the spurious deed of real estate mortgage before the Regional Trial Court in Pasay City. In his answer, Nigel raised an affirmative defense that the venue was improperly laid. The action must be filed exclusively in Bacolod City pursuant to the mandatory venue stipulation. Which between Pasay City and Bacolod City is the proper venue for the action to nullify the deed of real estate mortgage? Explain.
Suggested answer only. Not an official answer and not legal advice.
Pasay City is the proper venue for the action to nullify the deed of real estate mortgage.
Under jurisprudence, a party directly assailing the validity of a contract is not bound by an exclusive venue stipulation contained therein, as it is inconsistent to enforce a clause in a repudiated document. Moreover, an action to annul a real estate mortgage is a personal action, which may be filed where the plaintiff resides under Section 2, Rule 4 of the Rules of Court.
Here, because Ulrich directly assails the mortgage as spurious, the exclusive venue stipulation favoring Bacolod City does not apply. As a personal action, venue is properly laid in Pasay City, where plaintiff Ulrich resides.
Therefore, Pasay City is the proper venue for the action.
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
Which city is the proper venue for an action to declare void a spurious deed of real estate mortgage?
A party directly assailing the validity of a contract is not bound by an exclusive venue stipulation contained in the repudiated document.
What type of action is a complaint to declare void a deed of real estate mortgage?
An action to nullify a real estate mortgage is a personal action because it does not affect title to or possession of real property.
Under Rule 4, Section 2 of the Rules of Court, where may a personal action be filed?
Section 2 of Rule 4 provides that personal actions may be filed where the plaintiff or defendant resides, at the option of the plaintiff.
When is an exclusive venue stipulation in a written agreement unenforceable against a party?
An exclusive venue clause cannot be enforced against a party who directly assails the instrument containing it as void or spurious.
How must a defendant raise the objection that venue was improperly laid in a civil action?
Improper venue must be raised as an affirmative defense in the answer under the Rules of Civil Procedure.
Learn more about these topics
1. Venue Stipulations
Under Section 4, Rule 4 of the Rules of Court, parties may agree in writing on an exclusive venue for their disputes. However, when a party directly assails the authenticity or validity of the contract containing the venue clause, the exclusive venue stipulation does not apply. It is legally inconsistent to enforce a venue clause contained within an instrument that the plaintiff repudiates as completely void or forged.
2. Personal Actions
An action to declare void a real estate mortgage is a personal action because it does not involve title to or possession of real property. Under Section 2, Rule 4 of the Rules of Court, personal actions may be commenced and tried where the plaintiff or defendant resides, or in the case of a non-resident defendant, where he may be found, at the election of the plaintiff.
3. Improper Venue
Improper venue is an affirmative defense raised when an action is filed in a territorial jurisdiction other than that prescribed by law or contract. Where an exclusive venue stipulation is inapplicable because the underlying instrument is directly challenged as spurious, filing the case at the plaintiff's residence is proper and does not constitute improper venue.