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LUCIANO P. PAZ, Petitioner, vs. REPUBLIC OF THE PHILIPPINES, ACTING THROUGH THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, PUBLIC ESTATES AUTHORITY, FILINVEST DEVELOPMENT CORPORATION, and FILINVEST ALABANG, INC., Respondents.
FACTS
On November 29, 2000, petitioner Luciano P. Paz filed a petition for the cancellation of Original Certificate of Title (OCT) No. 684, docketed as LRC Case No. 00-059, ostensibly under Section 108 of Presidential Decree No. 1529 (Property Registration Decree). The petition impleaded the Republic of the Philippines, Filinvest Development Corporation (FDC), and Filinvest Alabang, Inc. (FAI) as respondents. Petitioner claimed ownership over two large parcels of land totaling approximately 14,310 hectares. He alleged that OCT No. 684, registered in the name of the Republic, included Lot 392 of the Muntinlupa Estate (approximately 244 hectares), which was segregated, resulting in the issuance of Transfer Certificate of Title (TCT) No. 185552 also in the Republic’s name. Pursuant to a joint venture agreement, FDC and FAI developed Lot 392 into a subdivision, leading to the cancellation of TCT No. 185552 and the issuance of individual TCTs in the names of the Republic and FAI, which were then sold to third parties. The petition prayed for the cancellation of OCT No. 684, TCT No. 185552, and all subsequent derived titles, the issuance of a new title in his name, the vacation of the property by respondents, and the award of damages.
Respondents FDC and FAI moved to dismiss the petition on the grounds that: (1) the serious dispute over title was litigable in an ordinary action outside the limited jurisdiction of land registration courts and was not proper under Section 108 of P.D. No. 1529, which only authorizes amendment or alteration, not cancellation, of titles; (2) lack of jurisdiction over the persons of respondents due to invalid service of summons; (3) non-payment of docket fees; and (4) absence of a certificate of non-forum shopping.
Petitioner countered that his petition was not an initiatory pleading requiring compliance with regular civil procedure but a mere incident of a past registration proceeding, and that service of the petition itself sufficed to bring respondents within the court’s jurisdiction.
On May 21, 2001, the Regional Trial Court (RTC) granted the motion to dismiss, ruling that the petition was essentially an action for recovery or reconveyance of property, complete with parties, subject matter, cause of action, and reliefs, making it an initiatory pleading subject to mandatory jurisdictional requirements like docket fees and a certificate of non-forum shopping. Petitioner assailed this dismissal via a petition for certiorari in the Court of Appeals (CA). On August 1, 2002, the CA dismissed the petition, finding no grave abuse of discretion by the RTC, as any error was at most an error of judgment correctible by appeal, not certiorari.
ISSUE
Whether the Court of Appeals erred in affirming the RTC’s dismissal of the petition for cancellation of title, specifically on the grounds that the petition was an initiatory pleading requiring compliance with ordinary civil procedure and jurisdictional requirements, and not a mere incident under Section 108 of P.D. No. 1529.
RULING
The Supreme Court DENIED the petition and AFFIRMED the decision of the Court of Appeals. The Court held that the petition filed by Paz, although captioned as one under Section 108 of P.D. No. 1529, was in substance an original action for reconveyance and recovery of title, not a mere continuation of a previous registration proceeding. Section 108 applies only to alterations that do not affect the title’s validity or involve serious controversies; it cannot be used to cancel a certificate of title and issue a new one to another person, as this would constitute a collateral attack on a Torrens title. The proper remedy for such a claim is an ordinary civil action for reconveyance. Consequently, the petition was an initiatory pleading that required the performance of jurisdictional acts, including payment of the correct docket fees, valid service of summons to vest personal jurisdiction over respondents, and attachment of a certificate against forum shopping. The failure to comply with these requirements warranted the dismissal of the petition. The RTC did not commit grave abuse of discretion in granting the motion to dismiss, and the CA correctly affirmed the dismissal.
