PESANE MONGAO(joined by husband) v.
owners of the subject properties,
PRYCE PROPERTIES CORPORATION
2005, TINGA, J.
FACTS
1) Sps MONGAO
a) Complaint for Rescission and
Damages
b) Against PRYCE Corporation
c) RTC General Santos City.
d) That:
i) P and PRYCE executed a MOA
wherein the P agreed to sell to the
latter a land, in Polomolok, South
Cotabato, for P5M
ii) PRYCE paid P550,000 as earnest
money.
iii) That however, after considerable
delay, R offered to pay the balance
by issuing a check payable to P and
Ps mother Nellie Animas, which P
rejected.
iv) That R continuously refused to heed
Ps written and oral demands to pay
the balance solely to P.
v) That there is no Deed of Absolute
Sale, executed by P in favor of R,
which caused the cancellation of the
TCT in the name of P, and the
issuance of a new TCT in the name of
R
2) R
a) Answer, with Compulsory Counterclaim
i) That a certain Animas approached an
officer of R, and negotiated the sale
of properties, belonging to Animas
family.
(1) Said properties were in the verge
of foreclosure by the bank.
ii) That the subject property was one of
the 2 parcels of land is the said sale
by Animas.
iii) That the subject property, allegedly
belonged to parents of P, but was
registered in Ps name, as a trustee.
iv) That the true agreement between R
and the Animas was for R to
purchase the 2 parcels of land
belonging to the father of P
v) Admitted the execution of the MOA,
but qualified that R did not pay the
earnest money directly and solely to
P (2) nature of Ps title to the property.
vi) That said earnest money was part of
the amount directly paid by R to DBP,
to redeem certain properties of
Animas family
vii) That P and Ps father, registered
executed the corresponding Deed of
Sale and MOA, after R delivered
checks to the bank as payment for
redemption.
viii) That controversy arose after R
manifested intent to complete
payments, but P demanded to be
paid solely, to the exclusion of the
rest of Animas family.
ix) Admitted issuing check of P3.3M
payable to P and Ps mother, which
was never refused by P.
x) That due to the demands of both P
and the Animas family, R was
constrained to deposit the payment
with the Clerk of Court of RTC of
Davao
xi) For its counterclaim, prayed that P be
liable for attys fees for Ps hasty and
unjustified institution of the case
3) Ps
a) Moved for Judgment on the Pleadings
i) That the Answer admitted the
material allegations of the complaint,
and therefore, failed to tender an
issue.
(1) The Answer admitted the
existence of the contract of sale
and Rs refusal to satisfy the
unpaid balance of the purchase
price despite demand.
ii) That R cannot avoid recision by
raising the defense that R contracted
with the Animas family
iii) Belied Rs claim of consignation,
(1) The deposit was transmitted
through a mere letter
4) RTC
a) Granted Ps Motion for Judgment on the
Pleadings
5) RTC
a) MOA, and Deed of Absolute Sale
between P and R, rescinded
b) R to execute Deed of Reconveyance of
property, registered in its name, back to
Ps name
c) P to return to R, the amount of what she
received by virtue of the contract
6) CA
a) Reversed and remanded the case for
trial on the merits.
i) Judgment on the Pleadings was
improper.
ii) There were actual issues raised in
the Answer, which required
presentation and assessment of
evidence
(1) genuineness of the Deed of Sale;
7) P
a) MR
8) CA
a) Denied MR
9) P
 a) Petition for Review, SC
SC Granted Petition for Review; CA Decision
Reversed and Set Aside.
ISSUE
WON judgement on the pleadings was
proper? YES
1) Judgment on the Pleadings
a. Section 1, Rule 19 of 1997 Rules
of Civil Procedure, (which is a
restatement of 1964 rules of
Court which was applicable
during the proceeding before
RTC), provides that where an
Answer fails to tender an issue, or
otherwise admits the material
allegations of the adverse partys
pleading, the court may, on
motion of that part, direct
Judgment on such Pleading.
i. An Answer which fails to
tender an issue, is one
that does not comply with
the requirements for a
specific denial, provided in
Section 10 (or Section 8)
of Rule 8
ii. An Answer which admits
material allegations of the
adverse partys pleadings,
is:
1. one that expressly
confesses the
truthfulness thereof
and
2. one that omits to
deal with them all.
iii. If an answer does in fact
specifically deny the
material averments of the
complaint in the manner
indicated by Section 10 of
Rule 8, and/or asserts
affirmative defenses, a
judgment on the pleadings
would naturally NOT be
proper.
b. There is joinder of issues when
the Answer (by defendant) makes
a specific denial of the material
allegations in the complaint or
asserts affirmative defense which
could bar recovery by the
Plaintiff.
i. And where there is proper
joinder of issues, the TC is
barred from rendering
Judgment only on the
Pleadings.
c. In CAB, Ps action for recision is
mainly based on alleged breach
by R of contractual obligations
under the MOA
On the other hand, nothing in the
allegations in PRYCEs answer
makes out a proper joinder of
issues.
Ps cause of action for rescission
is founded mainly on a perfected
contract of sale allegedly entered
into between P and R as
embodied in the MOA.
The allegations in Rs
Answer do not make out a
specific denial that a
contract of sale was
perfected between the
parties.
Also, PRYCE does not
contest the due execution
and/or genuineness of said
MOA.
In fact, the Answer admitted, in
categorical terms the paragraph 5
of Ps Complaint
Paragraph 5: In a
Memorandum of
Agreement dated 20
December 1993 []
plaintiff Pesane Animas
Mongao agreed to sell the
aforesaid parcel of land to
defendant
d. While PRYCE offered the
affirmative defense that the
separate demands of MONGAO
and the Animas family compelled
it to issue the check payable to
both MONGAO and her mother.
i. However, this only implies
an admission by PRYCE
that it effected payment
contrary to the express
terms of the contract of
sale.
ii. Nowhere in the terms of
the MOA does it state that
the payment of the
purchase price be
tendered to any person
other than MONGAO.
e. PRYCE justifies its refusal to
tender payment solely to
MONGAO by alleging that the
latter was a mere trustee and not
the beneficial owner of the
property subject of the sale and
 therefore not the proper party to
receive payment.
i. However, such defense
cannot prevent P from
seeking rescission of the
contract of sale.
ii. The express terms of the
MOA, the genuineness and
the due execution of which
are not denied, clearly
show that the contract of
sale was executed only
between MONGAO and
PRYCE.
f. Note, as regards the above: an
Answer may allege affirmative
defenses which may strike down
the plaintiffs cause of action.
i. An affirmative defense is
one which is not a denial
of an essential ingredient
in the plaintiffs cause of
action, but one which, if
established, will be a good
defensei.e. an "avoidance"
of the claim
ii. Affirmative defenses
include fraud, statute of
limitations, release
payment, illegality, statute
of frauds, estoppel, former
recovery, discharge in
bankruptcy, and any other
matter by way of
confession and avoidance.
iii. When the answer asserts
affirmative defenses, there
is proper joinder of issues
which must be ventilated
in a full-blown trial on the
merits;
1. Cannot be resolved
by a mere
judgment on the
pleadings.
iv. However, before an
allegation qualifies as an
affirmative defense, it
must be of such nature as
to bar the plaintiff from
claiming on his cause of
action.
WON there was consignation in the current
case? NO
1) SC adopted TC ruling
a. That mere consignment or
deposit of the check to the Clerk
of Court without observing the
mandatory provisions of Articles
1256 to 1257 of the New Civil
Code, does not produce the effect
of payment in order that the
obligor or the defendant herein
shall be released from the
obligation, hence, no payment of
the unpaid balance had been
made.
b. In CAB, PRYCE did not file any
formal complaint for consignation
but merely deposited the check
with the Clerk of Court.
c. A formal complaint must be
commenced with the trial court to
provide the proper venue for the
determination if there is a valid
tender of payment.