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Question

II. JURISDICTION

F. Doctrine of Adherence to Jurisdiction and Residual Jurisdiction

Scenario:

Marie and John, both residents of Barangay Woodville, entered into a loan agreement with XYZ Bank. The loan agreement stipulated that any disputes arising from the agreement shall be resolved through arbitration in Metro Manila.

However, Marie and John failed to pay their loan obligations, prompting XYZ Bank to file a collection case against them in the Regional Trial Court (RTC) of Woodville. Marie and John filed a motion to dismiss, arguing that the case should be referred to arbitration as stated in the loan agreement.

During the proceedings, the RTC denied the motion to dismiss and proceeded with the collection case. Marie and John then filed a petition for certiorari before the Court of Appeals (CA), questioning the RTC's denial of their motion to dismiss.

Discuss the following:

1. Whether the Doctrine of Adherence to Jurisdiction applies in this case; and
2. Whether the Doctrine of Residual Jurisdiction applies in this case.

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Answer