REFUGIA V. CA (REMEDIAL)

Issue: Whether the MTC, as well as the RTC, in the exercise of its appellate jurisdiction, have jurisdiction to resolve the issue of ownership in an action for unlawful detainer where the issue of possession cannot be resolved without deciding the question of ownership.

As the law on forcible entry and unlawful detainer cases now stands, even where the defendant raises the question of ownership in his pleadings and the question of possession cannot be resolved without deciding the issue of ownership, the MTCs, nevertheless have the undoubted competence to resolve the issue of ownership albeit only to determine the issue of possession as set forth in Section 33(2) of BP 129.

In the case at bar, petitioners failed to show that they were legally entitled to continue occupying the unit in question. On the considerations detailed, we agree with the position of respondent CA that petitioners would in effect be occupying the premises by mere tolerance. A person who occupies the land of another at the latter's tolerance or permission, without any contract between them, is necessarily bound by an implied promise that he will vacate the same upon demand, failing which a summary action for ejectment is the proper remedy against him. The status of petitioners is analogous to that of a lessee or tenant whose term of lease has expired but whose occupancy continued by tolerance of the owner.