NAME: SCORE:

PART 2 – RULE 4

I.

Sherlock, 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 BDO Bank
(BDO), and the consequent· foreclosure and auction sale of his mortgaged Makati property. BDO
filed a Motion to Dismiss on the ground of improper venue alleging that the complaint should be filed
with the RTC of Makati since the complaint involves the ownership and possession of Sherlock's lot.
Resolve the motion with reasons. (5%)

II.

Harry, a resident of Lingayen, Pangasinan sued William, a resident of San Fernando La Union in the
RTC (RTC) of Quezon City for the collection of a debt of P1 million. William did not file a motion to
dismiss for improper venue but filed his answer raising therein improper venue as an affirmative
defense. He also filed a counterclaim for P80,000 against A for attorney's fees and expenses for
litigation. William moved for a preliminary hearing on said affirmative defense. For his part, Harry
filed a motion to dismiss the counterclaim for lack of jurisdiction.

1. Rule on the affirmative defense of improper venue. [3%]

2. Rule on the motion to dismiss the counterclaim on the ground of lack of jurisdiction over the
subject matter. [2%]

III.

Victor, a resident of Angeles City, borrowed P300,000.00 from Tim, a resident of Pasay City. In the
loan agreement, the parties stipulated that "the parties agree to sue and be sued in the City of
Manila."

a) In case of non-payment of the loan, can Tim file his complaint to collect the loan from Victor in
Angeles City?

b) Suppose the parties did not stipulate in the loan agreement as to the venue, where can Tim file
his complaint against Victor?

c) Suppose the parties stipulated in their loan agreement that "venue for all suits arising from this
contract shall be the courts in Quezon City," can Tim file his complaint against Victor in Pasay City?