Professional Documents
Culture Documents
Rubio and Escueta's defense is that Lim The Decision dismissing [respondents,
has no cause of Action because Rubio Lim] complaint is REVERSED and SET
has not entered into a contract of sale ASIDE and a new one is entered.
with the latter. That the P100,000 Accordingly;
respondent (Lim) claimed Rubio received a. the validity of the subject contract of
as down payment for the lots is a simple sale in favor of [respondent] is upheld.
transaction by way of a loan with Lim. b. Rubio is directed to execute a Deed of
Absolute Sale conditioned upon the
However, the Baloloys failed to payment of the balance of the purchase
appear at the pre-trial. Upon motion price by [respondent] within 30 days
of respondent (Lim), the trial court from the receipt of the entry of judgment
declared the Baloloys in default. Baloloys of this Decision.
then filed a motion to lift the order c. the contracts of sale between Rubio
declaring them in default, which was and Escueta involving Rubios share in
denied by the trial court in an order the disputed properties is declared NULL
dated November 27, 1991. Consequently, and VOID.
respondent was allowed to adduce d. Rubio and Escueta are ordered to pay
evidence ex parte. Thereafter, the trial jointly and severally the [respondent] the
court rendered a partial decision dated amount ofP[20,000] as moral damages
July 23, 1993 against the Baloloys. and P[20,000] as attorneys fees.
3. the appeal of Rubio and Escueta on
The Baloloys filed a petition for relief the denial of their counterclaim is
from judgment and order dated July 4, DISMISSED.
1994 and supplemental petition dated
July 7, 1994. This was denied by the trial Petitioners Motion for
court in an order dated September 16, Reconsideration of the CA Decision
1994. Hence, appeal to the Court of was denied. Hence, this petition.
Appeals was taken challenging the order
denying the petition for relief. Take Note of Petitioner's ff.
Argument(s):
Trial on the merits ensued between
respondent and Rubio and Escueta. After 1. CA did not consider the circumstances
trial, the trial court rendered its assailed surrounding petitioners failure to appear
Decision dismissing the complaint and at the pre-trial and to file the petition for
amended complaint againts Petitioners relief on time. As to the failure to appear
Escueta, Rubio and the Register of at the pre-trial, there was fraud, accident
Deeds. The counterclaim of petitioners is and/or excusable neglect, because
also dismissed. However, [petitioner] petitioner Bayani was in the United
Rubio is ordered to return to the States. There was no service of the
[respondent],Lim, the amount of notice of pre-trial or order. Neither did
P102,169.80, with interest at the rate of the former counsel of record inform him.
six percent (6%) per annum from April Consequently, the order declaring him in
10, [1990] until the same is fully paid.
FACTS: Sometime in 1968, a real Petitioner then filed a motion for leave to
property (915.50sqm) located in Quezon file supplemental complaint in Civil Case
City, was originally awarded by the No. Q-91-10071, seeking to include
Peoples Homesite and Housing respondent Evangelista, Northern Star
Corporation (petitioners predecessor) to Agri-Business Corporation and BPI
a certain Adela Salindon. After the death Agricultural Development Bank as
of Salindon, it was transferred to Arsenio defendants (subsequent purchasers). The
Florendo, Jr., Milagros Florendo, Beatriz trial court, however, denied the motion.
Florendo and Eloisa Florendo- Thus, petitioner, filed before the Regional
Kulphongpatana through an extrajudicial Trial Court of Quezon City a complaint for
settlement executed by the heirs of Annulment of Deed of Assignment, Deed
Salindon. However, the award in favor of of Absolute Sale, Real Estate Mortgage,
Salindon was nullified and set aside in a Cancellation of TCT Nos. 122944 and
decision in G.R. No. L-60544, entitled 126639, and Damages, against Sarte,
Arsenio Florendo, Jr., et al. vs. Hon. respondent Evangelista, Northern Star
Perpetuo D. Coloma, for having been Agri-Business Corporation, BPI
issued in excess of jurisdiction and with Agricultural Development Bank and the
grave abuse of discretion, and petitioner Register of Deeds of Quezon City. But the
was declared the owner of the property. trial court dismissed without prejudice
said case on October 23, 1995, on the
ground of the pendency of Civil Case No.
Despite said decision, the property was Q-91-10071.
auctioned off by the Quezon City
Treasurers Office for unpaid real property The trial court, in Civil Case No. Q-91-
taxes by the Florendos. The highest 10071, rendered its decision in favor of
bidder was Luisito Sarte. Sarte filed a petitioner, stating that:
petition for issuance of title and 3. Any transfers, assignment, sale or
confirmation of sale, which was granted mortgage of whatever nature of the
by the RTC QC. Consequently, Transfer parcel of land subject of this case
Certificate of Title (TCT) No. 28182 was made by defendant Luisito Sarte or
issued in the name of Sarte, who divided his/her agents or assigns before or
the property into Lot 1-A (TCT No during the pendency of the instant
108070), and Lot 1-B. case are hereby declared null and
It was in 1991 that petitioner filed Civil void, together with any transfer
Case No. Q-91-10071 for recovery of real certificates of title issued in
property with Sarte, the City Treasurer of connection with the aforesaid
Quezon City and the Quezon City transactions by the Register of
Register of Deeds, as defendants. While Deeds of Quezon City who is likewise
the case was pending, Sarte executed in ordered to cancel or cause the
favor of respondent Jose Evangelista, a cancellation of such TCTs;
Deed of Assignment covering Lot 1-A.TCT
No. 108070 was cancelled and TCT No. Respondent then filed with the CA a
122944 was issued in the name of petition for annulment of the trial courts
Evangelista. Subsequently, the Register judgment, particularly paragraph 3 of the
of Deeds annotated on TCT No. 122944 dispositive portion, referring to the nullity
AGUIRRE, ALMIRANTE, BAARES, CABREROS, FLORES, JABINES, MORES, ORTEGA, SALGADO,
QUINTO, VILLAMIN, VERGARA-HUERTA
29 | R E M E D I A L L A W R E V I E W 1 : C I V I L P R O C E D U R E
of any transfer, assignment, sale or matter of the claim, and in either case,
mortgage made by Sarte. In his petition, the judgment or final order and
respondent alleged extrinsic fraud as resolution are void.A trial court acquires
ground. According to respondent, since jurisdiction over the person of the
he was not a party to Civil Case No. Q-91- defendant either by his voluntary
10071, he was prevented from appearance in court and his submission
ventilating his cause, right or interest to its authority or by service of summons.
over the property, and the judgment was
not binding on him, as the trial court did In this case, it is undisputed that
not acquire jurisdiction over his person. respondent was never made a party to
Civil Case No. Q-91-10071. It is basic that
The CA granted the petition and declared no man shall be affected by any
null and void paragraph 3 of the proceeding to which he is a stranger, and
dispositive portion of the trial courts strangers to a case are not bound by
decision insofar as petitioners title to the judgment rendered by the court.
property is concerned.The CA found that Respondent is adversely affected by such
respondent was not a party to Civil Case judgment, as he was the subsequent
No. Q-91-10071 and the trial court did purchaser of the subject property from
not acquire any jurisdiction over his Sarte, and title was already transferred to
person. The CA also ruled that the him. It will be the height of inequity to
judgment violated respondents right allow respondents title to be nullified
against deprivation of the property without being given the opportunity to
without due process of law. Petitioner present any evidence in support of his
filed a Motion for Reconsideration, but ostensible ownership of the property.
the same was denied by the CA. Hence, Much more, it is tantamount to a
this Petition. violation of the constitutional guarantee
that no person shall be deprived of
ISSUE: WHETHER OR NOT THE CA property without due process of
ERRED IN ANNULLING PARAGRAPH 3 OF law.Clearly, the trial courts judgment is
THE TRIAL COURTS DECISION ON void insofar as paragraph 3 of its
GROUNDS OF LACK OF JURISDICTION dispositive portion is concerned.
AND LACK OF DUE PROCESS OF LAW
Petitioner further argues that it should
HELD: No. The Supreme Court held that not bear the consequence of the trial
Annulment of judgment is a recourse courts denial of its motion to include
equitable in character, allowed only in respondent as defendant in Civil Case No.
exceptional cases as where there is no Q-91-10071. True, it was not petitioners
available or other adequate fault that respondent was not made a
remedy.Jurisprudence and Section 2, Rule party to the case. But likewise, it was not
47 of the Rules of Court lay down the respondents fault that he was not given
grounds upon which an action for the opportunity to present his side of the
annulment of judgment may be brought, story. Whatever prompted the trial court
i.e., (1) extrinsic fraud, and (2) lack of to deny petitioners motion to include
jurisdiction or denial of due process. respondent as defendant is not for the
Court to reason why. Petitioner could
have brought the trial courts denial to
Lack of jurisdiction refers to either lack of the CA on certiorari but it did not.
jurisdiction over the person of the Instead, it filed Civil Case No. Q-95-23940
defending party or over the subject for Annulment of Deed of Assignment,
AGUIRRE, ALMIRANTE, BAARES, CABREROS, FLORES, JABINES, MORES, ORTEGA, SALGADO,
QUINTO, VILLAMIN, VERGARA-HUERTA
30 | R E M E D I A L L A W R E V I E W 1 : C I V I L P R O C E D U R E
Deed of Absolute Sale, Real Estate of litis pendentia. Be that as it may, the
Mortgage, Cancellation of TCT Nos. undeniable fact remains -- respondent is
122944 and 126639, and Damages, not a party to Civil Case No. Q-91-10071,
against herein respondent Sarte and and paragraph 3, or any portion of the
others. Unfortunately for petitioner, this trial courts judgment for that matter,
was dismissed by the Regional Trial Court cannot be binding on him.
of Quezon City (Branch 82) on the ground