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Question
Plaintiff X sues Defendant Y in the Municipal Trial Court (MTC) for a money claim arising from a contract. During pendency, the parties sign a Compromise Agreement and the court, after due notice, approves the compromise and dismisses the case with prejudice. Later, Defendant Y raises lack of subject matter jurisdiction as a defense to the dismissal, arguing that the claim actually concerns a real property dispute that falls within the RTC’s exclusive jurisdiction and that the MTC cannot adjudicate such matters. (a) Identify the controlling doctrine on whether lack of subject matter jurisdiction can be waived or cured by consent or compromise. (b) Apply the doctrine to the facts: does the compromise cure the lack of SMJ? Explain. (c) State the proper remedy if SMJ is lacking and the likely disposition of the case moving forward.