G.R. No. 35246 ; September 22, 1931
CENTRAL AZUCARERA DE TARLAC, plaintiff-appellant, vs. RICARDO DE LEON and RAFAEL FERNANDEZ, defendants-appellees.

FACTS

Plaintiff Central Azucarera de Tarlac entered into a milling contract with defendant Ricardo de Leon concerning land in Lubao, Pampanga. The contract stipulated that all litigation would be submitted to the Court of First Instance of Manila. Defendant Rafael Fernandez later acquired the land. The plaintiff filed a complaint in the Court of First Instance of Manila, seeking the appointment of a receiver and an order compelling the defendants to appoint arbitrators and execute deeds to record the contract. The defendants filed a demurrer, arguing the court lacked jurisdiction because the land was situated in Pampanga. The trial court sustained the demurrer based on Section 377 of the Code of Civil Procedure (venue provision for actions affecting real property).

ISSUE

Whether the Court of First Instance of Manila had jurisdiction over the subject matter of the action, notwithstanding that the land subject of the contract was located in Pampanga.

RULING

Yes. The Supreme Court reversed the trial court’s order. Jurisdiction over the subject matter (actions involving interests in real property) is conferred by law ( Act No. 136 , Section 56) upon Courts of First Instance. Section 377 of the Code of Civil Procedure merely fixes venue, which is a procedural matter and a personal privilege that can be waived. The parties validly waived the statutory venue by stipulating in their contract that litigation would be brought in Manila. Furthermore, the defendants, by filing pleadings (including a demurrer based not solely on lack of jurisdiction over the person) and opposing the plaintiff’s motion for a receiver, made a general voluntary appearance, thereby submitting to the court’s jurisdiction. The case was remanded for further proceedings.

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