When Filing Two Property Lawsuits Is Not Forum Shopping: The Hocorma Ruling

The Supreme Court has clarified an important point for property owners and litigants: filing an ejectment case and a separate collection case involving the same property does not automatically amount to forum shopping. In Santos Ventura Hocorma Foundation, Inc. v. Mabalacat Institute, Inc. (G.R. No. 211563, September 29, 2021), the Court explained when these two actions can proceed separately without violating the rules.

The Facts of the Case

Santos Ventura Hocorma Foundation, Inc. (SVHFI) owned a parcel of land in Mabalacat, Pampanga. Mabalacat Institute, Inc. (MII) occupied the property since 1983 through SVHFI's tolerance. In March 2002, SVHFI demanded rental payments, but MII refused to pay.

SVHFI then filed a collection case for unpaid rent before the Regional Trial Court (RTC) of Makati City. While that case was pending, SVHFI also filed an ejectment case against MII before the Municipal Circuit Trial Court (MCTC) of Mabalacat and Magalang, Pampanga.

MII moved to dismiss the collection case, arguing that SVHFI committed forum shopping by filing two cases involving the same property. The RTC agreed and dismissed the collection case. The Court of Appeals affirmed. SVHFI elevated the matter to the Supreme Court.

The Issue

The central question was whether SVHFI committed forum shopping when it filed the ejectment case while the collection case was still pending.

The Ruling: No Forum Shopping

The Supreme Court ruled in favor of SVHFI, holding that the two cases do not involve the same cause of action.

Forum shopping exists when a party files multiple suits involving the same parties, the same rights asserted, and the same reliefs prayed for, such that a judgment in one would amount to res judicata in the other. The Court applied this test and found that the second and third elements were lacking.

Different Rights and Reliefs

In an ejectment case, the only issue is physical possession of the property. The damages recoverable are limited to the fair rental value or reasonable compensation for the use and occupation of the property.

In a collection case, however, the claim is for payment of rentals based on the alleged obligation to pay, without regard to the legality of occupancy. The Court noted that the collection case requires a full-blown trial to determine the propriety and amount of rent, which cannot be done in the summary procedure of an ejectment case.

No Res Judicata

The Court also held that a judgment in an ejectment case would not bar a subsequent collection case, and vice versa. The only overlap is that any amount recovered in one case for unpaid rentals cannot be recovered again in the other, on the ground of unjust enrichment.

Why the Cases Cannot Be Joined

The Court also pointed out that an ordinary civil action like collection of sum of money cannot be joined with a special civil action like ejectment under Section 5, Rule 2 of the Rules of Court. This prohibition exists because ejectment cases are governed by summary procedure, while collection cases require a full trial. Since the two actions cannot be joined in one pleading, filing them separately is not forum shopping.

Practical Takeaways

• Filing both an ejectment case and a collection case over the same property is not automatically forum shopping — the key is whether the causes of action are identical.
• Ejectment cases are limited to the issue of physical possession and the recovery of fair rental value or reasonable compensation for use and occupation.
• Collection cases for unpaid rent are separate and distinct from ejectment cases, as they involve determining the obligation to pay and the correct amount.
• Be careful about double recovery — amounts recovered for unpaid rentals in one case cannot be recovered again in the other.
• The rule against forum shopping is not a trap for litigants who file separate cases that cannot be joined under the Rules of Court.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.