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2) MOLAVE paid P1M upon signing the contract and another P1.3M as first
installment but refused to pay the rest after being informed of the
Contentions:
existence of alleged tenants on the land by the DAR.
That it acted in GOOD FAITH in purchasing the property;
3) 2 YEARS LATER, MEDINA wrote a letter to MOLAVE rescinding the contract
to sell and learned a month earlier that MEDINA sold the land to DOA That MOLAVE was estopped for agreeing the cancellation of the
REALTY with the TCT already issued. contract to sell;
4) After learning of the sale, MOLAVE filed with the RTC-Tarlac an ACTION That after the complaint was filed, TINITIGAN (president of MOLAVE)
FOR SPECIFIC PERFORMANCE, DELIVERY OF POSSESSION and ANNULMENT received from MEDINA’s COUNSEL a P1.3M partial reimbursement as
OF TITLE in CIVIL CASE against MEDINA, DOA REALTY and its chairman of shown by a receipt.
the Board of Directors, SY KA KIENG.
Finally, the letter of DOA REALTY’s lawyer to the DAR stating that MEDINA
had retained him to represent her in the tenance case on the land
RULINGS+RATIO
cannot serve as notice to DOA REALTY that MEDINA executed a contract
to sell in favor of MOLAVE as the letter did not mention such contract. At
best, it could only serve as a notice to DOA REALTY that the land could
SECTION 1, RULE 16 of the RULES OF CIVIL PROCEDURE provides that the have a tenancy problem.
trial court may dismiss a complainton the ground that the claim or
demand set forth in the plaintiff’scomplaint has been paid, waived,
abandoned, or otherwise EXTINGUISHED. This provision admits the THEREFORE, MOLAVE DEVELOPMENT has NO VALID CLAIM AGAINST DOA
obligation set forth in the complaint but points out that such obligation REALTY and its president.
has been extinguished.
FALLO: WHEREFORE, the Court REVERSES and SETS ASIDE the…Decision
and…Resolution of the Court of Appeals…and REINSTATED the…Resolution of
the Regional Trial COURT…DISMISSING the complaint against DOA REALTY and
SY KA KIEND. SO ORDERED.