G.R. No. 133365 , September 16, 2003
Platinum Tours and Travel, Incorporated, Petitioner, vs. Jose M. Panlilio, Respondent.

FACTS

Petitioner Platinum Tours filed a collection suit (Civil Case No. 94-1634) against Pan Asiatic Travel Corporation and its president, Nelida Galvez, before the RTC of Makati, Branch 62. The court rendered a default judgment in Platinum’s favor. During execution, Galvez’s Manila Polo Club membership certificate was levied and sold. Respondent Jose Panlilio then moved to intervene, claiming a prior chattel mortgage over the same club shares securing a loan from Galvez. The trial court denied his motion, prompting Panlilio to file a separate collection case with application for a writ of preliminary attachment (Civil Case No. 96-365) against Galvez before RTC Makati, Branch 146. Panlilio subsequently moved to consolidate this new case with the earlier case in Branch 62.
Judge Diokno of Branch 62 issued an order allowing the consolidation. Platinum assailed this order via certiorari in the Court of Appeals. The CA annulled the consolidation order, ruling it was grave abuse of discretion, but left it to Judge Diokno’s discretion to either return Civil Case No. 96-365 to Branch 146 or keep it in his docket as a separate case. Platinum’s motion for partial reconsideration, praying for the case’s return or re-raffle, was denied.

ISSUE

Whether the annulment of the consolidation order divested RTC Branch 62 of jurisdiction over Civil Case No. 96-365, thereby requiring its return to Branch 146.

RULING

The Supreme Court denied the petition, upholding the Court of Appeals. The annulment of the consolidation order did not strip Branch 62 of its jurisdiction over Civil Case No. 96-365. Jurisdiction, which is the authority to hear and decide a case, is conferred by law and determined by the allegations in the complaint. A distinction exists between “jurisdiction” and the “exercise of jurisdiction.” The error in granting consolidation was an error in the exercise of jurisdiction, not a defect in jurisdiction itself. Since the collection case falls within the general jurisdiction of the RTC and was properly filed, Branch 62 acquired jurisdiction over it. Any error in the procedural order of consolidation is merely an error of judgment that does not nullify the court’s underlying authority. The Court found the petition premature, as Platinum acted on an unfounded fear of delay without waiting for Judge Diokno’s actual decision on whether to retain or return the case. The RTC of Makati, Branch 62, is not legally prevented from proceeding with Civil Case No. 96-365 if it chooses to retain the case.