4/7/2021 E-Library - Information At Your Fingertips: Printer Friendly WHEREFORE, the instant petition is DENIED. The Decision dated August 16, 2006 and the Order dated September 19, 2006 of the RTC are SET ASIDE. The Decision dated May 20, 2005 of the MTCC is also SET ASIDE. The Complaint is DISMISSED for lack of jurisdiction. SO ORDERED.[21] Aggrieved by the CA Decision, petitioner filed a Petition for Review on Certiorari[22] before this Court, alleging that the nature of its complaint is one for collection of sum of money and attorney's fees, and not one for breach of contract.[23] Petitioner claimed that the lease contracts were already terminated at the time of respondent's refusal to return the security deposit.[24] Since an action of breach of contract presupposes the existence of a contract, and that breach must be committed during the effectivity of the same, petitioner's action for the return of the security deposit cannot be considered as an action for breach of contract.[25] Respondent, in his Comment,[26] claimed that the ruling of the CA that the action is one for breach of contract is correct. However, respondent has a legal and justifiable reason to withhold the refund of the security deposits, because petitioner vandalized the leased units and destroyed the same when the latter left the premises.[27] Issues The issues for Our resolution are: (1) whether the MTCC has jurisdiction over the case; and (2) whether the RTC was correct when it offset the amount of the security deposit with the amount of the repairs made by the respondent, plus the amount of nominal damages awarded to respondent. Ruling of the Court In order to determine whether the subject matter of an action is one which is capable of pecuniary estimation, the nature of the principal action or remedy sought must be considered. If it is primarily for recovery of a sum of money, then the claim is considered as capable of pecuniary estimation, and the jurisdiction lies with the municipal trial courts if the amount of the claim does not exceed P300,000.00 outside Metro Manila, and does not exceed P400,000.00 within Metro Manila. However, where the basic issue of the case is something other than the right to recover a sum of money, where the money claim is merely incidental to the principal relief sought, then the subject matter of the action is not capable of pecuniary estimation, and is within the jurisdiction of the RTC.[28] The CA held that the allegations of the complaint filed by petitioner make out a case for breach of contract where an action for specific performance is an available remedy. Since the same is incapable of pecuniary estimation, the same is cognizable by the RTC. The refund of the P90,000.00 security deposit was merely incidental to the main action for specific performance.[29] https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/66024 4/8