VENUE

Place or locality where

the case is to be filed
Real Action – recovery of real property or as indicated in S.2a, R4,
one which affects title to, possession, interest in real property. It
includes, partition, condemnation or property and foreclosure of
mortgage on real property

Personal Action – recovery of personal property; enforcement of a

contract, or recovery of damages
If the question involves the venue of an action, the examinee must follow
the following steps: (a) Ask first whether the action is real or personal. (b)
After determining the nature of the action, then apply the rules on venue
under Rule 4.

REAL ACTION - court which has jurisdiction over the area wherein the real property
involved, or a portion thereof, is situated (S1, R4) action to annul a sale of land,
ejectment,

PERSONAL ACTION. —where the plaintiff or any of the principal plaintiffs resides, or
where the defendant or any of the principal defendants resides, or in the case of a
non-resident defendant where he may be found, at the election of the plaintiff. (S2, R4)
 Not every action that involves a real property is a real action. To be
real action the matter in litigation must affect title, possession or
interest in a real property..

An action for damages to real property, while involving realty is a personal action because although
it involves real property, it does not involve any of the issues mentioned.

An action to recover possession of real property (ejectment) plus damages is a real action because
possession of the real property is involved.

An action to recover possession of a personal property is a personal action.

An action for a declaration of the nullity of marriage is a personal action (Tamano vs. Ortiz, 291
SCRA 584).

An action for specific performance is a personal action (Siosoco vs. Court of Appeals, 303 SCRA
186).
. An action that seeks the execution of a deed of sale where the
primary objective is to regain ownership and possession of property
is a real action(Sps. Saraza v Francisco, November 27, 2013), even if
denominated as an action for specific performance (Gochan v.
Gochan)

Action to annul contract of loan with accessory real estate mortgage is a

personal action
Nonresidents DEFENDANTS. —and the action affects the personal status of the plaintiff, or any property
of said defendant located in the Philippines, = court of the PLACE WHERE THE PLAINTIFF RESIDES, or
WHERE THE PROPERTY OR ANY PORTION THEREOF IS SITUATED or found. (S3, R1)

Nonresident Plaintiff – residence of defendant (Ang v. Sps. Ang)

Although a complaint is entitled to be one for specific performance, the action is

actually a real action for the recovery of land where the plaintiff asks that a transfer
certificate of title covering said land be issued to him or . The action must therefore,
be filed where the property is situated (NOT THE TITLE BUT SEE THE
ALLEGATION)
Also, if the action is denominated as one for specific performance, but the plaintiff seeks for the
issuance of a deed of assignment in his favor of certain shares of stocks to regain ownership and
possession of said shares, the action is not one for specific performance but a personal action for
the recovery of property. The docket fee therefore, should be computed based on the value of
the property and not based on the docket fee for specific performance
If he does not raise the issue of venue, the Court has no authority to motu
proprio dismiss a case for improper venue.

Since venue is not a matter of substantive law but is primarily for the
convenience of the parties it would be up for the defendant to question the
venue.

Exception: In cases covered by summary procedure or those

covered by the rules on small claims,
 Section 4. When Rule not applicable. — This Rule shall not apply.
(a) In those cases where a specific rule or law provides otherwise; or
(b) Where the parties have validly agreed in writing before the filing of the action on the
exclusive venue thereof

A. In those cases where a specific rule or law provides otherwise

BAR 2015 - Under Rule 11.3 of the Special ADR Rules, the petition for
vacation of a domestic arbitral award may be filed with the Regional Trial
Court having jurisdiction over the place in which one of the parties is
doing business, where any of the parties reside or where arbitration
proceedings were conducted
 B. Where the parties have validly agreed in writing before the filing of the action on the
exclusive venue thereof

Venue can be stipulated upon and may have the effect of changing the
rules on venue provided for in the Rules.
The parties may stipulate on the venue as long as the agreement is (a) in
writing, (b) made before the filing of the action, and (c) exclusive as to the
venue.
SMC v. Monasterion June 30, 2005)

In an exclusive warehouse agreement between the parties, they agreed that any action
arising from it shall be brought in the courts of Makati.

Monasterio undertook the segregation, handling, receiving of SMC products under the
agreement. He also did some cashiering services and so he asked for compensation but SMC
refused. He filed a complaint for sum of money in Naga City. SMC moved to dismiss on the
ground of improper venue which the trial court denied.

Held: the exclusivity of venue should not be applied if the action does not relate to the
contract.
B. Where the parties have validly agreed in writing before the filing of the action on the
exclusive venue thereof

Venue can be stipulated upon and may have the effect of changing the
rules on venue provided for in the Rules.

The parties may stipulate on the venue as long as the agreement is

(a) in writing,
(b) made before the filing of the action, and
(c) (c) exclusive as to the venue.
 B. Where the parties have validly agreed in writing before the filing of the action on the
exclusive venue thereof

BRIONES V. CA - January 14, 2015

In this relation, case law likewise provides that in cases where the complaint assails only
the terms, conditions, and/or coverage of a written instrument and not its validity,
the exclusive venue stipulation contained therein shall still be binding on the parties, and
thus, the complaint may be properly dismissed on the ground of improper venue. 35

petitioner Briones directly assailed the validity of the loan agreement, promissory note, and deed of real
estate mortgage, claiming forgery in their execution. The Court, thus, declared that Briones cannot be
expected to comply with the aforesaid venue stipulation, as his compliance therewith would mean an
implicit recognition of their validity. Certainly, a complaint directly assailing the validity of the written
instrument itself should not be bound by the exclusive venue stipulation contained therein and should be
filed in accordance with the general rules on venue

To be sure, it would be inherently consistent for a complaint of this nature to recognize the
exclusive venue stipulation when it, in fact, precisely assails the validity of the instrument in
which such stipulation is contained.
Complaint for Reformation of Loan and Mortgage Contract FILED in RTC DAVAO CITY. Trial Court
dismiss for improper venue, holding The venue stipulations found in the subject instruments are
indeed restrictive in nature. The provisions of the said promissory note are clear that any
action arising out of or in connection with Promissory Note shall only be in Pasig City or Metro
Manila at the sole option of the defendant bank.

Venue Stipulations provide-

Section 8. Venue. - The venue of all suits and actions arising out of or in connection with this
Mortgage shall be Pasig City or in the place where any of the Mortgaged properties are
located, at the absolute option of the Mortgagee, the parties hereto waiving any other
venue.18
Clearly, the aforesaid venue stipulation is not permissive but restrictive in nature,
considering that it effectively limits the venue of the actions arising therefrom to the courts
of: (a) Pasig City; or (b) in the place where any of the Mortgaged properties are
located.19
Such being the case, petitioner's complaint, which was filed before the Regional Trial
Court of Davao City where the mortgaged property is located, should not have been
dismissed as the same complied with the venue stipulation stated in the Real Estate
Mortgage.£A⩊ phi£
Rule 8, Section 12. Affirmative defenses. — (a) A defendant shall raise his or her affirmative
defenses in his or her answer, which shall be limited to the reasons set forth under
Section 5(b), Rule 6, and the following grounds:
1. That the court has no jurisdiction over the person of the defending party;
2. THAT VENUE IS IMPROPERLY LAID;
xxxx

(b) Failure to raise the affirmative defenses at the earliest opportunity shall constitute
a waiver thereof.

(c) The court shall motu proprio resolve the above affirmative defenses within thirty
(30) calendar days from the filing of the answer.

WHAT IF THE COURT DENIES THE AD –

(e) Affirmative defenses, if denied, shall not be the subject of a motion for reconsideration or
petition for certiorari, prohibition or mandamus, but may be among the matters to be raised on
appeal after a judgment on the merits. (n)
If the question shows that venue is improper, do not file a motion to dismiss
anchored on lack of jurisdiction. Venue has nothing to do with jurisdiction in
civil cases.
The Daily Stoics – Ryan Holiday and Stephen Hanselman
END