Garcia Vs Ferro Chemicals
Garcia Vs Ferro Chemicals
Garcia Vs Ferro Chemicals
Antonio Garcia and Ferro entered into a deed of absolute sale and purchase of
shares of stocks in the name of Antonio Garcia. The contract was entered into to
prevent the stocks from being sold at public auction to pay for the outstanding
obligations of Antonio.
A deed of right of repurchase was entered into by the parties in which Antonio can
redeem the properties within 180 days. Before the lapse of such period, Antonio
exercised his right to repurchase but Ferro refused. Garcia filed an action for
specific performance and annulment of transfer of shares.
Ferro then charged Garcia with estafa under Article 318 for allegedly
misrepresenting that the shares were free from lien and encumbrances. RTC
acquitted Garcia and so the case was elevated to the CA and the latter held in
favor of Ferro. When the case reached the Supreme court, Antonio Garcia claims
that both he and Ferro acted in bad faith when they entered into the deed of
absolute sale as a scheme to defraud Garcias creditors, thus they were in pari
delicto and Ferro should not be allowed to recover.
SC found out that there were issues not raised before the courts.
Issue: WN the RTC had jurisdiction over the case
Held:
No, Jurisdiction of a court over the subject matter is vested by law. In
criminal cases, the imposable penalty of the crime charged in the information
determines the court that has jurisdiction over the case The information charged
Garcia with the violation of Article 318 of the RVP punishable by arresto mayor or
imprisonment for a period of 1 month and 1 day to six months.
The information was filed on September 3, 1990, the law in force at the time
was BP 129 before it was amended by RA 7691. under said law, the metropolitan
trial court had jurisdiction over the case.
The trial courts lack of jurisdiction cannot be cured by the paries silence on
the matter.