Venue of personal actions | Venue (RULE 4) | CIVIL PROCEDURE

VENUE OF PERSONAL ACTIONS UNDER THE PHILIPPINE RULES OF COURT
(Rule 4, Section 2, 1997 Rules of Civil Procedure)

I. OVERVIEW

In Philippine civil procedure, “venue” refers to the particular province or city where a court action is to be instituted and tried. It is a matter of procedural law, as opposed to jurisdiction which is a matter of substantive law. Under the 1997 Rules of Civil Procedure, personal actions generally follow the transitory rule on venue: the plaintiff may choose either the place of his/her residence or that of the defendant’s. This choice, of course, is subject to certain exceptions (such as valid stipulations on exclusive venue).

The primary rule on personal actions is found in Section 2, Rule 4 of the Rules of Court:

“Sec. 2. Venue of personal actions. – All other actions may be commenced and tried where the plaintiff or any of the principal plaintiffs resides or where the defendant or any of the principal defendants resides, or in the case of a non-resident defendant, where he may be found, at the election of the plaintiff.”

“Personal actions” are distinguished from “real actions” in that the latter specifically involve title to, ownership, possession, or interest in real property, and therefore must be filed in the court of the place where the real property is located (Rule 4, Sec. 1).

II. WHAT ARE PERSONAL ACTIONS?

An action is personal when it does not affect or involve title to or interest in real property. Generally, the following are treated as personal actions:

  1. Actions for Recovery of Personal Property
    Example: A complaint to recover a piece of machinery or a valuable piece of jewelry.

  2. Actions for Enforcement of a Contract or Payment of Sums of Money
    Example: A collection suit for a debt arising from a contract of loan.

  3. Actions for Damages or Injuries to Person or Property (where realty is only incidental to the claim)
    Example: An action for damages arising from a breach of contract, or an action for damages to one’s car in a vehicular accident.

  4. Other Claims Where Real Property Is Merely Incidental
    The action might involve the use or condition of realty but does not directly concern its title, possession, or ownership (and thus does not convert it into a real action).

In other words, if the plaintiff’s primary objective is the recovery of a sum of money or personal property, or the enforcement of a personal right, the action is personal.

III. GENERAL RULE ON VENUE FOR PERSONAL ACTIONS

  1. Choice of Venue
    Under Section 2, Rule 4 of the Rules of Court, the plaintiff in a personal action has two choices for filing his/her complaint:

    • The plaintiff’s place of residence (or where any principal plaintiff resides, if there are multiple plaintiffs), or
    • The defendant’s place of residence (or where any principal defendant resides, if there are multiple defendants).

  2. Non-Resident Defendant
    If the defendant is not a resident of the Philippines, the plaintiff may file the case in the place where the defendant may be found, or in the place of the plaintiff’s residence—whichever is convenient or feasible for service of summons.

  3. Residence for Venue Purposes

    • Individual Parties: The term “resides” is interpreted in its ordinary sense, meaning the actual or habitual place of abode. This is not strictly limited to a person’s “domicile” under the private international law concept but refers to the party’s address for personal and professional activities or primary residence.
    • Corporations and Juridical Entities: If the defendant is a corporation, venue is commonly laid in the place where the principal office is located or where the plaintiff’s residence or principal place of business is located (depending on how the corporate by-laws are set, or where the principal business operations actually take place). Philippine jurisprudence generally correlates “residence” of a corporation with its principal office indicated in the Articles of Incorporation.

  4. Plaintiff’s Election
    Since the provision states that the action may be filed where the plaintiff “resides or where the defendant resides,” the plaintiff makes the election. This choice, however, must be exercised in good faith; a frivolous or manipulative selection of venue merely to harass the defendant may be challenged.

IV. EXCEPTIONS TO THE GENERAL RULE

  1. Stipulation on Venue
    The parties to a contract may agree in writing on where an action arising from their contract must be filed (often called a “forum selection clause” or “stipulation on venue”). This stipulation on venue is generally valid as long as:

    • It is in writing;
    • It is clear and categorical;
    • It is exclusive;
    • It is not contrary to public policy; and
    • It is not contrived to deprive courts of jurisdiction over the subject matter.

    If the parties validly agreed on exclusive venue, courts will honor that agreement and the suit must be filed in the designated venue.

  2. Actions Covered by Specific Rules or Laws
    Certain types of actions have special laws or specific rules that specify their own venues, effectively overriding the general rule on personal actions. Examples:

    • Family law cases (e.g., Annulment of Marriage, Legal Separation, Declaration of Nullity) must be filed in the Family Court of the province or city where the petitioner or respondent has been residing for at least six months prior to the date of filing or in the case of a non-resident respondent, where he/she may be found.
    • Small Claims Cases under the Revised Rules on Small Claims Cases: the venue may be subject to specific rules depending on the Supreme Court issuance.
    • Libel Cases in civil suits may fall under special procedural rules, taking into account the place where the defamatory article was printed and first published, or where the offended party actually resides if certain conditions are met (especially when lodged as a civil case in relation to a criminal action).

  3. Waiver by Failure to Timely Object
    Improper venue is a matter of privilege that can be waived if the defendant fails to seasonably raise it in a motion to dismiss or answer (Rule 9, Section 1). If the defendant fails to question the venue at the earliest opportunity, the court will continue to exercise jurisdiction.

V. PROCEDURAL CONSIDERATIONS

  1. Distinction from Jurisdiction

    • Venue is not jurisdictional: A court may have jurisdiction over the subject matter, but the action might still be dismissed if it is filed in the wrong venue (provided the defendant timely objects).
    • If there is no timely objection, the court may proceed to hear the case despite an improper venue.

  2. Principal Plaintiffs and Defendants

    • The Rules refer to “the plaintiff or any of the principal plaintiffs” or “the defendant or any of the principal defendants.” The phrase “principal” aims to prevent venue from being unfairly predicated on the residence of a party with a minor interest or one who was joined merely for venue-shopping purposes.
    • The determination of “principal” parties must be gleaned from the allegations of the complaint and the nature of their respective claims or liabilities.

  3. Forum Shopping vs. Venue

    • “Venue shopping” is not automatically “forum shopping.” Forum shopping involves filing multiple actions in different courts to secure a favorable judgment, whereas venue shopping might be merely selecting among possible valid places of venue.
    • However, an attempt to file in an inconvenient or contrived venue—solely to harass or obtain an undue advantage—may be scrutinized by courts. There could be a dismissal if there is proof of bad faith or deliberate forum shopping.

  4. Multiple Claims in One Complaint

    • If a single complaint joins multiple causes of action (some real, some personal), the applicable venue rule would typically be determined by the principal cause of action or the nature of the primary claim. If the real action is the principal cause of action, the complaint should be filed in the place where the property is located. If the personal action is the principal cause of action, then the transitory rule applies.
    • This can be complex, and courts will look at the overall gravamen of the complaint.

VI. ILLUSTRATIVE EXAMPLES

  1. Action for Sum of Money (Breach of Contract)

    • Plaintiff A (who resides in Quezon City) and Defendant B (who resides in Makati City).
    • Plaintiff A can file suit in the Regional Trial Court (RTC) of Quezon City or Makati City.
    • If B is a non-resident found in Pasay City, A could elect to file in Quezon City (A’s residence) or in Pasay City (where B is found).

  2. Action for Damages (Tort/Quasi-Delict)

    • An action for damages arising from a vehicular accident is generally a personal action. The plaintiff can file it in the city or province where he/she resides or where the defendant resides.
    • If the alleged tort or quasi-delict was covered by an insurance contract with a stipulation on venue, the stipulation might govern if it is valid and exclusive.

  3. Action Against a Corporation

    • If the corporation’s principal place of business is in Cebu City, and the plaintiff resides in Davao City, the plaintiff may file the action either in Cebu City or in Davao City.
    • But if there is a valid stipulation that suits can only be filed in Makati City (e.g., in the contract’s forum selection clause), that stipulation controls if exclusive.

VII. KEY TAKEAWAYS

  1. Personal vs. Real Actions

    • Personal actions: Where the plaintiff seeks the recovery of personal property, enforcement of a personal right or obligation, or damages. Venue is the place of residence of either plaintiff or defendant, at the plaintiff’s election.
    • Real actions: Must be filed where the real property involved is situated.

  2. Transitory Rule

    • The rule on transitory actions is broad and flexible, rooted in considerations of the parties’ convenience.

  3. Exceptions Abound

    • Always check for stipulations on venue, special laws, or special rules that may provide for exclusive venues.

  4. Waivability of Improper Venue

    • A defendant must seasonably raise the defense of improper venue in a motion to dismiss or in the answer (before any responsive pleading) or else it is deemed waived.

  5. Good Faith in Venue Selection

    • The plaintiff’s choice of venue should not be exercised in bad faith or to unduly inconvenience the defendant.

VIII. CONCLUSION

The venue of personal actions under Rule 4, Section 2 of the Philippine Rules of Court affords plaintiffs the flexibility to sue either in their own place of residence or that of the defendant, subject to exceptions such as stipulations on exclusive venue, special laws, or timely challenges to improper venue. While venue is often a straightforward procedural consideration, litigants must carefully determine the correct venue at the outset, lest they risk dismissal for improper venue (if objected to in due time) or potential issues of forum shopping. Properly identifying whether an action is personal (rather than real) is crucial in ensuring compliance with the applicable rule on venue.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.

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