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Odilao Vs Unionbank

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Theresa Faye De Guzman
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93 views

Odilao Vs Unionbank

Uploaded by

Theresa Faye De Guzman
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Odilao vs.

UnionBank

GR No. 254787

Summary:

The Supreme Court ruled that venue stipulations in contracts are not controlling when the validity of the
contract itself is being, challenged, reinstating the complaint for reformation of mortgage and ordering
the trial court to proceed with the case.

Facts:

Lucille Odilao filed a complaint for reformation of mortgage against UnionBank of the Philippines and
the Register of Deeds of Davao City. Odilao claimed that the loan and mortgage agreements between
her and the bank were contracts of adhesion and did not reflect the true and mutual intention of the
parties. The trial court dismissed the complaint based on venue stipulation in the loan documents, which
stated that any action arising from agreements should be filed in Pasig City. The Court of Appeals
affirmed the dismissal.

Issue:

WON the trial court erred in dismissing the complaint for improper venue

Held:

The Supreme Court ruled that the dismissal was incorrect. Venue stipulations in contracts are not
controlling when the validity of the contract itself is being assailed. Odilao was not disputing the
authenticity of the loan and mortagage documents but was seeking for reformation. The complaint was
filed in the Regional Trial Court of Davao City where the property is located, thus complying with the
venue stipulation. Venue rules are intended to provide convenience to the parties and should not
restrict their access to the courts and an exclusive venue stipulation can only be valid and binding if its
expressed in writing by the parties before the filing of the suit.

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