FIRST DIVISION
G.R. No. 225925, June 14, 2021
MANUELITO P. JUGUETA, Petitioner, v. ARTHUR J. LEDESMA AND BOARD OF DIRECTORS OF PARAÑAQUE SOUTH ADMIRAL VILLAGE HOMEOWNERS ASSOCIATION, INC. (PSAVHAI), Respondents.
D E C I S I O N
CARANDANG, J.:
Before this Court is a Petition for Review on Certiorari1 under Rule 45 of the Rules of Court (Rules), assailing the Decision2 dated December 28, 2015 and Resolution3 dated July 22, 2016 of the Court of Appeals (CA) in CA-G.R. SP No. 132286 filed by petitioner Manuelito P. Jugueta (Jugueta).
- Construction of a duplex building in the village had been allowed as early as 1995. Attached is an excerpts (sic) of 1996 Board decision allowing such practice.
- The Board finds the imported dogs at No. 9 S. Osmeña as pets and cannot be considered as breeding for commercial purposes, hence, not in violation of any existing rules and regulations of the village.
- Perimeter fence of complained residence approximates those of numerous residences in the village which practice has been tolerated and allowed since the creation of the Association.
- The dead-end street as cited in the above-mentioned letter was not expropriated, but leased out on a long term-basis by the Board of Directors as said dead-end street was not serving any purpose. The Board in 1996 found the dead-end street of no use, but the lease of such portion alleviated the financial difficulties of the Association. The lease arrangement was properly covered by the necessary Board resolution.
- The Board did not find any illegal tappings to South Admiral Village's existing drainage as allege[d] in the a fore-mentioned letter.5
WHEREFORE, premises considered, appeal is GRANTED. Accordingly, the decision of the ENCRFO dated August 29, 2007 is hereby SET ASIDE and a new decision entered declaring the "one residential building per lot rule" as still in full force and effect and ordering respondent association to implement the same. Further, respondent is hereby ordered to pay to this Board a fine of P10,000 for illegally leasing out a portion of the subdivision road and to cease and desist from further committing such act.
SO ORDERED.14
Section 8. Questions that may be decided. – No errors which does not affect the jurisdiction over the subject matter or the validity of the judgment appealed from or the proceedings therein will be considered unless stated in the assignment of errors, or closely related to or dependent on an assigned error and properly argued in the brief, save as the court may pass upon plain errors and clerical errors.
The Supreme Court has ample authority to review and resolve matters not assigned and specified as errors by either of the parties in the appeal if it finds the consideration and determination of the same essential and indispensable in order to arrive at a just decision in the case. This Court, thus, has the authority to waive the lack of proper assignment of errors if the unassigned errors closely relate to errors properly pinpointed out or if the unassigned errors refer to matters upon which the determination of the questions raised by the errors properly assigned depend.
The same also applies to issues not specifically raised by the parties. The Supreme Court, likewise, has broad discretionary powers, in the resolution of a controversy, to take into consideration matters on record which the parties fail to submit to the Court as specific questions for determination. Where the issues already raised also rest on other issues not specifically presented, as long as the latter issues bear relevance and close relation to the former and as long as they arise from matters on record, the Court has the authority to include them in its discussion of the controversy as well as to pass upon them. In brief; in those eases wherein questions not particularly raised by the parties surface as necessary for the complete adjudication of the rights and obligations of the parties and such questions fall within the issues already framed by the parties, the interests of justice dictate that the Court consider and resolve them.49 (Citations omitted; emphasis supplied)
A controversy which arises out of the relations between and among members of the association; between any or all of them and the association of which they are members; and between such association and the State insofar as it concerns their individual franchise or right to exist. It refers also to a controversy which is intrinsically connected with the regulation of associations or dealing with the internal affairs of such entity.50
Section 2. Appeal. – Any party may, upon notice to the Board and the other party, appeal a decision rendered by the Board of Commissioners to the Office of the President within fifteen (15) days from receipt thereof, in accordance with P.D. No. 1344 and A.O. No. 18 Series of 1987. (Emphasis supplied)
- Unsound real estate business practices;
- Claims involving refund and any other claims filed by subdivision lot or condominium unit buyer against the project owner, developer, dealer, broker or salesman; and
- Cases involving specific performance of contractual and statutory obligations filed by buyers of subdivision lot or condominium unit against the owner, developer, dealer, broker or salesman.53
Section 20. Duties and Responsibilities of the HLURB. – In addition to the powers, authorities and responsibilities vested in it by Republic Act No. 8763, Presidential Decree No. 902 - A, Batas Pambansa Big. 68 and Executive Order No. 535, Series of 1981, as amended, the HLURB shall:
x x x
(d) Hear and decide intra - association and/or inter - association controversies and/or conflicts, without prejudice to filing civil and criminal cases by the parties concerned before the regular courts: Provided, That all decisions of the HLURB are appealable directly to the Court of Appeals; (Emphasis and underscoring supplied; italics in the original)
Endnotes:
1Rollo, pp. 13-28.
2 Penned by Associate Justice Jane Aurora C. Lantion, with the concurrence Associate Justices Fernanda Lampas Peralta and Nina G. Antonio-Valenzuela; id. at 37-47
3 Penned by Associate Justice Jane Aurora C. Lantion, with the concurrence Associate Justices Fernanda Lampas Peralta and Nina G. Antonio-Valenzuela; id. at 56-57.
4 Id. at 38, 70.
5 Id. at 75.
6 Id. at 76-80.
7 Id. at 82-87.
8 Id. at 85.
9 Penned by Housing and Land Use Regulatory Board Arbiter Atty. Leonard Jacinto A. Soriano; id. at 129-131.
10 Id. at 130-131.
11 Id. at 130.
12 Id.
13 Approved by Chief Executive Officer and Commissioner Romulo Q. Fabul, and Commissioners Jesus Y. Pang and Arturo M. Dublado; id. at 195-197.
14 Id. at 197.
15 Id. at 196.
16 Approved by Chief Executive Officer and Commissioner Romulo Q. Fabul and Commissioners Teresita A. Desierto and Jesus Y. Pang; id. at 207-208.
17 Id. at 208.
18 Penned by Deputy Executive Secretary for Legal Affairs Michael G. Aguinaldo; id. at 265-268.
19 Id. at 268.
20 Supra note 2.
21Rollo, p. 47.
22 Id. at 43-44.
23 Id. at 44-45.
24 Id. at 45-47.
25 Section 13, Title IV of P.D. 957 states:chanroblesvirtualawlibrarySection 13. Hearing. In the hearing for determining the existence of any ground or grounds for the suspension and/or revocation of registration certificate and license to sell as provided in Section 8 and 9 hereof, the following shall be complied with:
(a) Notice. No such hearing shall proceed unless the respondent is furnished with a copy of the complaint against him or is notified in writing of the purpose of such hearing.
(b) Venue. The hearing may be held before the officer or officers designated by the Authority on the date and place specified in the notice.
(c) Nature of proceeding. The proceedings shall be non-litigious and summary in nature / without regard to legal technicalities obtaining in courts of law. The Rules of court shall not apply in said hearing except by analogy or in a suppletory character and whenever practicable and convenient.
(d) Power incidental to the hearing. For the purpose of the hearing or other proceeding under this Decree, the officer or officers designated to hear the complaint shall have the power to administer oaths, subpoena witnesses, conduct ocular inspections, lake depositions, and require the production of any book, paper, correspondence, memorandum, or other record which are deemed relevant or material to the inquiry.
26 Paragraph (f). Section 1, Rule XII of the 2004 Rules of Procedure of the HLURB states:chanroblesvirtualawlibrarySection 1. Powers of the Arbiter. – The Arbiter shall have the following powers:
x x x
f. To suspend or revoke, upon proper notice and hearing, the certificate of registration of the association upon any ground provided by law, rules and regulations of HLURB including but not limited to the following:chanroblesvirtualawlibraryx x x
2. Serious misrepresentation as to what the association can do or is doing;
x x x
4. Misuse of a right, privilege, or franchise conferred upon it by law, or exercise of a right, privilege or franchise in contravention of law;
x x x x
27 Supra note 3.
28Rollo, pp. 49-54.
29 Id. at 56.
30 Id. at 13-28.
31 Id. at 21-22.
32 Id. at 22.
33 Id.
34 Id.
35 Id. at 23-24.
36 Id. at 24.
37 Id. at 25.
38 Id. at 25-27.
39 Id. at 336.
40 Id.
41 Id. at 338-345.
42 Id. at 353.
43 Id.
44 Id.
45Asian Transmission Corporation v. Canlubang Sugar Estates, 457 Phil. 260, 285 (2003).
46Multi-Realty Development Corp v. Makati Tuscany Condominium Corp., 524 Phil. 318, 336 (2006).
47Hi-Tone Marketing Corporation v. Baikal Realty Corporation, 480 Phil. 545, 561 (2004)
48 166 Phil. 505 (1977).
49 Id.
50 Paragraph (w), Section 4, Implementing Rules and Regulations of R.A. 9904.
51 Housing and Land Use Regulatory Board of Commissioners Resolution No. 765, Series of 2004.
52 Empowering the National Housing Authority to Issue Writ of Execution in the Enforcement of its Decision under Presidential Decree No. 957.
53 P.D. 1344, Section 1.
54 P.D. 1344, Section 2.
55 Paragraph (d) of Section 64 of the Implementing Rules and Regulations of R.A. 9904 states:chanroblesvirtualawlibrarySection 64. Duties and Responsibilities of the HLURB. – In addition to the powers, authorities and responsibilities vested in it by Republic Act No. 8763, Presidential Decree No. 902-A, Balas Pambansa Big. 68 and Executive Order No. 535, Series of 1981, as amended, the HLURB shall:
x x x
d. Hear and decide intra-association and/ or inter-association controversies and/ or conflicts, without prejudice to filing civil and criminal cases by the parties concerned before the regular courts: Provided, That all decisions of the HLURB are appealable directly to the Court of Appeals. [Emphasis and italics in the original, underscoring supplied]
56Land Bank of the Philippines v. Court of Appeals, 789 Phil. 577 (2016).
CAGUIOA, J.:
With regard to the appeal of cases decided by the HLURB that are not included in Section 1 of P.D. 1344, it is the CA that has appellate jurisdiction. As a rule, appeals from the judgment or final rulings of quasi-judicial agencies are appealable to the CA via petition for review under Rule 43 of the Rules of Court. The HLURB is a quasi-judicial agency exercising quasi-judicial powers or functions. It has the authority to resolve real estate management cases and homeowners' association cases.
Noticeably, in the present case, Jugueta filed his appeal involving an intra-association dispute to the OP instead of the CA.
To allay any confusion in the appellate jurisdiction of HLURB cases, it is worthy to highlight Section 20 of Republic Act No. (R.A.) 9904, which explicitly states the appellate procedure for intra[-]association disputes decided by the [HLURB-BOC] is vested in the CA. Section 20 of R.A. 9904 provides that:Section 20. Duties and Responsibilities of the HLURB. – In addition to the powers, authorities and responsibilities vested in it by Republic Act No. 8763, Presidential Decree No. 902-A, Batas Pambansa Blg. 68 and Executive Order No. 535, Series of 1981, as amended, the HLURB shall:chanroblesvirtualawlibraryx x x
(d) Hear and decide intra-association and/or inter-association controversies and/or conflicts, without prejudice to filing civil and criminal cases by the parties concerned before the regular courts: Provided, That all decisions of the HLURB are appealable directly to the Court of Appeals; x x x
Although R.A. 9904 took effect on July 10. 2010, while the appeal of Jugueta in the OP remained pending, the cited provision is consistent with the issuances governing the appellate jurisdiction [over] HLURB decisions/order[s] such as Rule 43 of the Rules, the 2004 HLURB Rules of Procedure, and P.D. 1344 at the time he filed his appeal to the OP. The exclusive appellate jurisdiction over intra-association disputes decided by the HLURB is clearly vested in the CA. x x x1 (Emphasis, italics and underscoring in the original)
SECTION 5. In addition to the regulatory and adjudicative functions of the Securities and Exchange Commission over corporations, partnerships and other forms of associations registered with it as expressly granted under existing laws and decrees, it shall have original and exclusive jurisdiction to hear and decide cases involving:x x x
(b) Controversies arising out of intra-corporate or partnership relations, between and among stockholders, members, or associates; between any or all of them and the corporation, partnership or association of which they are stockholders, members or associates, respectively; and between such corporation, partnership or association and the state insofar as it concerns their individual franchise or right to exist as such entity;
x x x x
SECTION 6. In order to effectively exercise such jurisdiction, the Commission shall possess the following powers:
x x x
In the exercise of the foregoing authority and jurisdiction of the Commission, hearings shall be conducted by the Commission or by a Commissioner or by such other bodies, boards, committees and/or any officer as may be created or designated by the Commission for the purpose. The decision, ruling or order of any such Commissioner, bodies, boards, committees and/or officer may be appealed to the Commission sitting en banc within thirty (30) days after receipt by the appellant of notice of such decision, ruling or order. The Commission shall promulgate rules of procedures to govern the proceedings, hearings and appeals of cases falling within its jurisdiction.
The aggrieved party may appeal the order, decision or ruling of the Commission sitting en banc to the Supreme Court by petition for petition for review in accordance with the pertinent provisions of the Rules of Court. (Emphasis supplied)
SECTION 14. Corporations, Authorities and Agencies Under the Supervision of the Department. – The following corporations, authorities and agencies are hereby placed under the supervision of the Department and their respective charters are correspondingly amended to the extent that the pertinent provisions thereof are inconsistent with the provisions of this Decree. The specific amendments to be affected in the respective charters of the affected corporations and authorities shall be provided for in the Letters of Implementation to be issued by the President to implement this Decree, which legal issuance shall form part of this Decree.
x x x
(c) Home Financing Commission
x x x x (Emphasis and underscoring supplied)
In Maria Luisa Park Association, Inc. v. Almendras, this Court discussed the scope of the [HLURB's] jurisdiction at length:We agree with the trial court that the instant controversy falls squarely within the exclusive and original jurisdiction of the [HIGC], now HLURB.
Originally, administrative supervision over homeowners' associations was vested by law with the [SEC]. However, pursuant to [E.O.] 535, the HIGC assumed the regulatory and adjudicative functions of the SEC over homeowners' associations. Section 2 of [E.O.] 535 provides:2. In addition to the powers and functions vested under the Home Financing Act, the Corporation, shall have among others, the following additional powers:(a) x x x and exercise all the powers, authorities and responsibilities that are vested on the Securities and Exchange Commission with respect to homeowners associations, the provision of Act 1459, as amended by P.D. 902-A, to the contrary notwithstanding;
(b) To regulate and supervise the activities and operations of all houseowners associations registered in accordance therewith.
x x x
Moreover, by virtue of this amendatory law, the HIGC also assumed the SEC's original and exclusive jurisdiction under Section 5 of [P.D.] 902-A to hear and decide cases involving:b) Controversies arising out of intra-corporate or partnership relations, between and among stockholders, members, or associates; between any and/or all of them and the corporation, partnership or association of which they are stockholders, members or associates, respectively; and between such corporation, partnership or association and the state insofar as it concerns their individual franchise or right to exist as such entity.
x x x x
Later on, the above[-]mentioned powers and responsibilities, which had been vested in the HIGC with respect to homeowners' associations, were transferred to the HLURB pursuant to [R.A.] 8763, entitled "Home Guaranty Corporation Act of 2000."10 (Italics in the original; citation omitted)
SECTION 1. In the exercise of its functions to regulate the real estate trade and business and in addition to its powers provided for in Presidential Decree No. 957, the National Housing Authority shall have exclusive jurisdiction to hear and decide cases of the following nature:
- Unsound real estate business practices;
- Claims involving refund and any other claims filed by subdivision lot or condominium unit buyer against the project owner, developer, dealer, broker or salesman; and
- Cases involving specific performance of contractual and statutory obligations filed by buyers of subdivision lot or condominium unit against the owner, developer, dealer, broker or salesman.
SECTION 2. The decision of the [NHA] shall become final and executory after the lapse of fifteen (15) days from the date of its receipt. It is appealable only to the President of the Philippines and in the event the appeal is filed and the decision is not reversed and/or amended within a period of thirty (30) days, the decision is deemed affirmed. Proof of the appeal of the decision must be furnished the [NHA]. (Emphasis supplied)
SECTION 8. Transfer of Functions. – The regulatory functions of the [NHA] pursuant to Presidential Decree Nos. 957, 1216, 1344 and other related laws are hereby transferred to the [HSRC] x x x. Among these regulatory functions are: x x x (11) Hear and decide cases on unsound real estate business practices; claims involving refund filed against project owners, developers, dealers, brokers or salesmen and cases of specific performance. (Emphasis supplied)
Endnotes:
1Ponencia, pp. 9-10.
2 AN ACT PROVIDING FOR A MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS' ASSOCIATIONS, AND FOR OTHER PURPOSES, otherwise known as the "MAGNA CARTA FOR HOMEOWNERS AND HOMEOWNERS' ASSOCIATION," January 7, 2010.
3 REORGANIZATION OF THE SECURITIES AND EXCHANGE COMMISSION WITH ADDITIONAL POWERS AND PLACING THE SAID AGENCY UNDER THE ADMINISTRATIVE SUPERVISION OF THE OFFICE OF THE PRESIDENT, March 11, 1976.
4 AN ACT REORGANIZING THE JUDICIARY, APPROPRIATING FUNDS THEREFOR, AND FOR OTHER PURPOSES, otherwise known as "THE JUDICIARY REORGANIZATION ACT OF 1980," August 14, 1981.
5Power Sector Assets and Liabilities Management Corporation v. Commissioner of Internal Revenue, G.R. No. 198146, August 8, 2017, 835 SCRA 235, 258.
6 B.P. 129, Sec. 9(3).
7 CREATING THE DEPARTMENT OF HUMAN SETTLEMENTS AND THE HUMAN SETTLEMENT DEVELOPMENT CORPORATION, APPROPRIATING FUNDS THEREFOR, AND ACCORDINGLY AMENDING CERTAIN PRESIDENTIAL DECREES, June 2, 1978.
8 AMENDING THE CHARTER OF THE HOME FINANCING COMMISSION, RENAMING IT AS HOME FINANCING CORPORATION, ENLARGING ITS POWERS, AND FOR OTHER PURPOSES, May 3, 1979.
9 G.R.Nos. 204187 & 206606, April 1, 2019, 899 SCRA 300.
10 Id. at 317-319.
11 Id. at 319-320.
12 EMPOWERING THE NATIONAL HOUSING AUTHORITY TO ISSUE WRIT OF EXECUTION IN THE ENFORCEMENT OF ITS DECISION UNDER PRESIDENTIAL DECREE NO. 957, April 2, 1978.
13 GRANTING CONTINUING AUTHORITY TO THE PRESIDENT OF THE PHILIPPINES TO REORGANIZE THE NATIONAL GOVERNMENT, June 9, 1978.
14 REORGANIZING THE HUMAN SETTLEMENTS REGULATORY COMMISSION, otherwise known as the "CHARTER OF THE HUMAN SETTLEMENTS REGULATORY COMMISSION," February 7, 1981.
15 IDENTIFYING THE GOVERNMENT AGENCIES ESSENTIAL FOR THE NATIONAL SHELTER PROGRAM AND DEFINING THEIR MANDATES, CREATING THE HOUSING AND URBAN DEVELOPMENT COORDINATING COUNCIL, RATIONALIZING FUNDING SOURCES AND LENDING MECHANISMS FOR HOME MORTGAGES AND FOR OTHER PURPOSES, December 17, 1986.
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