Jesus Lim Arranza , Et al vs. B.F. Homes, et al. G.R. No. 131683, June 19, 2000

FACTS: Respondent BF Homes, Inc (BFHI) , is a domestic corporation engaged in developing subdivision and selling residential lots. One of the subdivisions that respondent developed was the BF Homes Paranaque Subdivision. With the withdrawal of substantial investments in BFHI , respondent filed with the SEC a petition for rehabilitation. Atty Florencio Orendain was appointed as receiver. He was later relieved by the SEC of his duties as a Receiver. The new Board of Receivers revoked the authority given by Orendain to use the open spaces at Concha Cruz Drive and to collect community assessment funds; deferred the purchase of new pumps ; recognized BF Paranaque Homeowners Association (BFPHAI) as the representative of all homeowners; took over the management of the Clubhouse and deployed its own guards.

Petitioners filed with the HLURB a class suit “for and in behalf of the more than 7,000 homeowners” against respondent BFHI et al to enforce the rights of purchasers of lots in BF Homes Paranaque 3. Respondents asserts that the SEC, not the HLURB, has jurisdiction arguing that the SEC, being the appointing authority should be the one to take cognizance of controversies arising from the performance of the receiver’s duties.


ISSUE: Does HLURB has jurisdiction over petitioner’s complaint for specific performance to enforce their rights as purchasers of subdivision lots ?


HELD: Yes. Petitioner’s complaint for specific performance to enforce their rights as purchasers of subdivision lots as regards right of way, water, open spaces, road and perimeter wall repairs, and security falls within the jurisdiction of HLURB, not SEC. What petitioners seek to enforce are respondent’s obligations as a subdivision developer. Petitioners do not aim to enforce a pecuniary demand. The claim for respondent should be viewed in the light of respondent’s failure its statutory and contractual obligations to provide petitioners a “decent human settlement” and “ample opportunities for improving the quality of their life. The HLURB, not the SEC, is equipped with the expertise to deal with that matter. The HLURB should view the issue of whether the Board of Receivers correctly revoked the agreements entered into between the previous receiver and the petitioners from the perspective of the homeowners’ interest which PD 957 (The Subdivision and Condominium Buyers’ Protective Decree) aims to protect.