511 Phil. 308
CALLEJO, SR., J.:
Ako si Josephine Pablo, naninirahan sa 2338 M. Roxas St., Sta. Ana, Manila, na nasasakop ng Barangay 873, Zone 96, ay nangangako kay GG Robert Berba na nagmamay-ari ng aking tinitirahan ay maghuhulog ng halagang Tatlong Libong Piso P3,000.00 kada ika-sampu ng buwan bilang hulog sa aking pagkakautang kay GG Berba na umaabot sa halagang P81,818.00 na ang nasabing halagang ito ay aking huhulugan hanggang aking mabayaran ng buo ang aking pagkakautang. Ako rin, si Josephine Pablo, ay nangangako na ang hindi ko pagsunod o pagbayad ng buwanang hulog, ako ay kusang aalis sa aking tinitirahan. Bukod pa sa hulog sa aking pagkakautang, ako rin ay magbabayad ng halagang P3,450.00 bilang aking upa sa aking tinitirahan.[3]By May 2000, Pablo and the lessees still had a balance of P71,716.00. As of May 1, 2001, the total arrearages of the lessees amounted to P135,115.63.[4] On May 2, 2001, Berba, through counsel, wrote the lessees, demanding payment of the said amount and to vacate the house within 30 days from notice, otherwise she will sue them.[5] The lessees ignored the demand. On June 21, 2001, Berba filed a complaint[6] against Josephine Pablo and the Heirs of Carlos Palanca in the Metropolitan Trial Court (MTC) of Manila for unlawful detainer. She prayed that, after due proceedings, judgment be rendered in her favor:
WHEREFORE, it is most respectfully prayed for that judgment be rendered in favor of plaintiff ordering defendant (sic) –Berba, however, failed to append to her complaint a certification from the Lupon ng Tagapamayapa that no conciliation or settlement had been reached.Other reliefs just and equitable are, likewise, prayed for under the premises.[7]
a) to vacate the premises situated at 2338 M. Roxas Street, Sta. Ana, City of Manila;b) to pay plaintiff the sum of One Hundred Thirty-Five Thousand One Hundred Fifteen and 63/100 Pesos (P135,115.63) representing monthly rentals in arrears to the present;c) to pay plaintiff the amount of Four Thousand Five Hundred Sixty-Two and 63/100 Pesos (P4,562.63) per month representing monthly rent on the premises for the year 2001 until finality of the judgment;d) to pay plaintiff the sum of Twenty Thousand Pesos (P20,000.00) by way of attorney's fees;e) to reimburse plaintiff all expenses for litigation estimated in the amount of Ten Thousand Pesos;f) to pay costs of suit.
WHEREFORE, judgment is rendered in favor of the plaintiff and ordering the defendants and all persons claiming rights under them to vacate the premises at 2338 M. Roxas St., Sta. Ana, Manila and restore possession thereof to the plaintiff. Ordering the defendant to pay the amount of P135,115.63 representing monthly rentals since 1999 until December 2000. Ordering the defendant to pay the plaintiff the sum of P4,562.63 per month beginning January 2001 and for the succeeding months until finally vacated. Ordering the defendant to pay the reduced amount of P10,000.00 as attorney's fees plus the costs of suit.The defendants appealed the decision to the RTC. On motion of the plaintiff, the RTC issued an order for the execution of the decision pending appeal.[13] The defendants filed a motion for the recall of the Order,[14] but before the court could resolve the motion, the Sheriff turned over the physical possession of the property to Berba on May 20, 2002.[15]
SO ORDERED.[12]
WHEREFORE, the decision of the Court a quo is ordered set aside. The complaint is also ordered DISMISSED WITHOUT PREJUDICE. The Writ of Execution issued by the Court a quo pending appeal is also set aside.The RTC ruled that under Section 408 of the Local Government Code, parties who reside in the same city or municipality although in different barangays are mandated to go through conciliation proceedings in the Lupon.[19] The court cited the rulings of this Court in Morata v. Go,[20] and Vda. de Borromeo v. Pogoy.[21]
SO ORDERED.[18]
Citing the ruling of this Court in Diu v. Court of Appeals,[25] Berba claimed that Section 408 of the Local Government Code should be construed liberally together with Section 412. She further averred that she had complied substantially with the requisites of the law, and recalls that conciliation proceedings before the Lupon resulted in the execution of an Agreement on June 5, 1999. Upon failure to comply with the agreement, all chances of amicable settlement were effectively foreclosed. Hence, Pablo and the Heirs of Palanca were estopped from claiming that she failed to comply with the Local Government Code's requirement of prior referral of their dispute to the Lupon.
a) The raising of other affirmative defenses apart from the non-referral to the Barangay Court by the respondents constitute a waiver of such requirement; andb) There was substantial compliance on the part of the petitioner with respect to referring her complaint before the Barangay Court.[24]
THE HONORABLE COURT OF APPEALS SERIOUSLY ERRED WHEN IT FAILED TO CONSIDER THE DECISION OF THIS HONORABLE COURT IN THE CASE OF DIU VS. COURT OF APPEALS (251 SCRA 478) AND IN DECLARING THAT THERE WAS NO SUBSTANTIAL COMPLIANCE WITH THE MANDATE OF PD 1508 (NOW R.A. 7160) WITH RESPECT TO PRIOR REFERRAL TO THE BARANGAY COURT, THEREBY DECIDING THE CASE NOT IN ACCORD WITH LAW AND APPLICABLE DECISIONS OF THE COURT.[26]The petitioner avers that she is a sickly widow, in the twilight of her years, and whose only source of income are the rentals generated from the property, which she also uses to pay her medical expenses. She avers that the continued denial of her right to the fruits of the subject property is highly unjust and contrary to the spirit behind the enactment of Presidential Decree (P.D.) No. 1508.[27]
We also agree that the Secretary of the Lupon is mandated to transmit the settlement to the appropriate city or municipal court within the time frame under Section 418 of the LGC and to furnish the parties and the Lupon Chairman with copies thereof. The amicable settlement which is not repudiated within the period therefor may be enforced by execution by the Lupon through the Punong Barangay within a time line of six months, and if the settlement is not so enforced by the Lupon after the lapse of said period, it may be enforced only by an action in the proper city or municipal court as provided for in Section 417 of the LGC of 1991, as amended, which reads:In the present case, respondent Josephine Pablo failed to comply with her obligation of repaying the back rentals of P81,818.00 and the current rentals for the house. Hence, the petitioner had the right to enforce the Agreement against her and move for her eviction from the premises. However, instead of filing a motion before the Lupon for the enforcement of the agreement, or (after six months), an action in the Metropolitan Trial Court (MTC) for the enforcement of the settlement, the petitioner filed an action against respondent Josephine Pablo for unlawful detainer and the collection of unpaid rentals, inclusive of those already due before the June 5, 1999 Agreement was executed. The action of the petitioner against respondent Pablo was barred by the Agreement of June 5, 1999.SEC. 417. Execution. – The amicable settlement or arbitration award may be enforced by execution by the Lupon within six (6) months from the date of the settlement. After the lapse of such time, the settlement may be enforced by action in the proper city or municipal court. (Italics supplied).Section 417 of the Local Government Code provides a mechanism for the enforcement of a settlement of the parties before the Lupon. It provides for a two-tiered mode of enforcement of an amicable settlement executed by the parties before the Lupon, namely, (a) by execution of the Punong Barangay which is quasi-judicial and summary in nature on mere motion of the party/parties entitled thereto; and (b) by an action in regular form, which remedy is judicial. Under the first remedy, the proceedings are covered by the LGC and the Katarungang Pambarangay Implementing Rules and Regulations. The Punong Barangay is called upon during the hearing to determine solely the fact of non-compliance of the terms of the settlement and to give the defaulting party another chance at voluntarily complying with his obligation under the settlement. Under the second remedy, the proceedings are governed by the Rules of Court, as amended. The cause of action is the amicable settlement itself, which, by operation of law, has the force and effect of a final judgment.
Section 417 of the LGC grants a period of six months to enforce the amicable settlement by the Lupon through the Punong Barangay before such party may resort to filing an action with the MTC to enforce the settlement. The raison d'etre of the law is to afford the parties during the six-month time line, a simple, speedy and less expensive enforcement of their settlement before the Lupon.[31]
SEC. 412 Conciliation.- (a) Pre-condition to filing of complaint in court. – No complaint, petition, action, or proceeding involving any matter within the authority of the lupon shall be filed or instituted directly in court or any other government office for adjudication, unless there has been a confrontation between the parties before the lupon chairman or the pangkat, and that no conciliation or settlement has been reached as certified by the lupon secretary or pangkat secretary as attested to by the lupon chairman or pangkat chairman or unless the settlement has been repudiated by the parties thereto.Under Sec. 408 of the same Code, parties actually residing in the same city or municipality are bound to submit their disputes to the Lupon for conciliation/amicable settlement, unless otherwise provided therein:
(b) Where parties may go directly to court. – The parties may go directly to court in the following instances:
(1) Where the accused is under detention;
(2) Where a person has otherwise been deprived of personal liberty calling for habeas corpus proceedings;
(3) Where actions are coupled with provisional remedies such as preliminary injunction, attachment, delivery of personal property, and support pendente lite; and
(4) Where the action may otherwise be barred by the statute of limitations.
(c) Conciliation among members of indigenous cultural communities. – The customs and traditions of indigenous cultural communities shall be applied in settling disputes between members of the cultural communities.
SEC. 408. Subject Matter for Amicable Settlement; Exception Thereto. – The lupon of each barangay shall have authority to bring together the parties actually residing in the same city or municipality for amicable settlement of all disputes except:If the complainant/plaintiff fails to comply with the requirements of the Local Government Code, such complaint filed with the court may be dismissed for failure to exhaust all administrative remedies.[32]
(a) Where one party is the government or any subdivision or instrumentality thereof;
(b) Where one party is a public officer or employee, and the dispute relates to the performance of his official functions;
(c) Offenses punishable by imprisonment exceeding one (1) year or a fine exceeding Five Thousand pesos (P5,000.00);
(d) Offenses where there is no private offended party;
(e) Where the dispute involves real properties located in different cities or municipalities unless the parties thereto agree to submit their differences to amicable settlement by an appropriate lupon;
(f) Disputes involving parties who actually reside in barangays of different cities or municipalities, except where such barangay units adjoin each other and the parties thereto agree to submit their differences to amicable settlement by an appropriate lupon;
(g) Such other classes of disputes which the President may determine in the interest of justice or upon the recommendation of the Secretary of Justice.
The court in which non-criminal cases not falling within the authority of the lupon under this Code are filed may, at any time before trial, motu proprio refer the case to the lupon concerned for amicable settlement.