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Republic of the PhilippinesSUPREME COURT

Baguio City

THIRD DIVISION

G.R. No. 194024 April 25, 2012

PHILIP L. GO, PACIFICO Q. LIM Petitioners,s!ISTINCTION PROPERTIES E!ELOPMENT AN CONSTRUCTION, INC.Respon"ent!

D # C I S I O N

MENO"A, J.:

Before the Court is a p#$i$io% &or r#'i#( o% )#r$ior*ri +%#r R+l# 45assailing CADecision

FACTS$

Li- p#$i$io%#rare r#/i$#r# i%i'i+*l o(%#r o& )o%o-i%i+- +%i$ i% Po#%i H#i/$Con"o%iniu% in Pasig City, &etro &anila!

R#po%#%$ i$i%)$io% Prop#r$i# #'#lop-#%$ *% Co%$r+)$io%, I%). PCI3 i *)orpor*$io%e'isting un"er the la(s of the Philippines (ith principal office at No! )*+* Soler Street,Binon"o, &anila! It (as i%)orpor*$# * * r#*l #$*$# #'#lop#r, #%/*/# i% $# #'#lop-#%$ o&)o%o-i%i+- pro#)$, *-o%/ (i) (* $# Po#%i H#i/$ Co%o-i%i+-!

P#$i$io%#r P*)i&i)o Li-, o%# o& $# i%)orpor*$or *% $# $#% pr#i#%$ o& PCI,e'ecute" aMaster Deed and Declaration of Restrictions (MDDR) of Phoeni' Heights Con"o%iniu%, (hich (as

file" (ith the Registry of Dee"s!

-s the "eeloper, DPDCI un"ertoo., a%ong others, the %ar.eting aspect of the pro/ect, the sale ofthe units an" the release of flyers an" brochures!

Thereafter, Phoeni' Heights Con"o%iniu% Corporation 0PHCC1 (as for%ally organi2e" an"incorporate"! So-#$i-# i% 2000, PCI $+r%# o'#r $o PHCC $# o(%#rip *% po#io% o&$# )o%o-i%i+- +%i$, #)#p$ &or $# $(o *l#*l# )o--#r)i*l +%i$6p*)#$

)! 345 6eel B-S coere" by Con"o%iniu% Certificate of Title 0CCT1 No! +)** utili2e" asthe PHCC7s a"%inistration office, an"

+! 345 6eel 89- coere" by CCT No! PT9+:;


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Tro+/ i$ 8o*r,5PHCC *ppro'# * #$$l#-#%$ o&r &ro- PCI &or $# #$o&& o& $#l*$$#r: *o)i*$io% +# arrears (ith the assign%ent of title o& $# $(o *l#*l# )o--#r)i*l+%i$ *% $#ir )o%'#rio% i%$o )o--o% *r#*.

The sai" settle%ent bet(een the t(o corporations li.e(ise inclu"e" the reersion of the ++ storagespaces into co%%on areas! >ith the confor%ity of PHCC, PCI: *ppli)*$io% &or *l$#r*$io%

)o%'#rio% o& +%)o%$r+)$# 22 $or*/# +%i$ *% +%i$ GF4A *% 8AS &ro- *l#*l# $o)o--o% *r#*3 (*/r*%$# 7 $# Ho+i%/ *% L*% U# R#/+l*$or7 8o*r HLUR8 1!

POLICE SENIOR SUPERINTENENT IMAPINTO MACAAI8,Petitioner,s!THE PHILIPPINE NATIONAL POLICE IRECTORATE FOR PERSONNEL AN RECORSMANAGEMENT,Respon"ent!

D # C I S I O N

PERALTA, J.:

Rule to nullify an" set asi"e the Decision of the C- (hich nullifie" the RTC of &ara(i City7s "ecision!

FACTS9 o& R#p+li) A)$ 9;5, other(ise .no(n as theADepart%ent of the Interior an" 6ocal 3oern%ent -ct of );;*,A the Chief of Directorial Staff of thePhilippine National Police 0PNP1 issue" 3eneral Or"er No! ))


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an" National Police Co%%ission, he erroneously entere" his birth "ate as anuary )), );8

RTC issue" an #ntry of 5inal u"g%ent !f there is afailure to im#lead an indis#ensable #arty any &udgment rendered $ould have no

effectiveness.

!t is "precisely #hen an indispensable party is not before the court $that% an actionshould be dismissed.& "he absence of an indis#ensable #arty renders all subse;uentactions of the court null and void for $ant of authority to act not only as to the absent

parties but even to those present.> "he #ur#ose of the rules on &oinder of indis#ensable#arties is a com#lete determination of all issues not only bet$een the #arties themselvesbut also as regards other #ersons $ho may be affected by the &udgment.A decision validon its face cannot attain real finality here there is ant of indispensable parties.14

Citing preious authorities, the Court also hel" in the 3o case that$

"he general rule $ith reference to the ma3ing of #arties in a civil action re;uires the &oinder of allindis#ensable #arties under any and all conditions their #resence being a sine 'ua non of thee(ercise of )udicial poer.(orlasa v. 6olistico ?< 6hil. =?@ =?)

T# +r#% o& pro)+ri%/ $# pr##%)# o& *ll i%ip#%*l# p*r$i# i o% $# pl*i%$i&&. 1

!ERB IMPORTANT< I% $# i%$*%$ )*#, $#r# i * %#)#i$7 $o i-pl#* $# PNP, NAPOLCOM*% CSC #)*+# $#7 $*% $o # *'#r#l7 *&)$# 7 p#$i$io%#rJ p#$i$io% (i) i%'ol'#+$*%$i*l *% )o%$ro'#ri*l *l$#r*$io% i% p#$i$io%#rJ #r'i)# r#)or! &oreoer, as correctlypointe" out by the

Office of the Solicitor 3eneral 0OS31, i& p#$i$io%#rJ #r'i)# i #$#%# 7 $#% 7#*r, $#

/o'#r%-#%$, $ro+/ $# PNP, *ll # +r#%# 7 $# *i$io%*l *l*r7 *% #%#&i$ $*$(o+l *'# $o # /i'#% $o p#$i$io%#r +ri%/ +) #$#%io% ! Thus, asi"e fro% the OS3, all otheragencies (hich %ay be affecte" by the change shoul" be notifie" or represente" as the truth is bestascertaine" un"er an a"ersary syste% of /ustice!F

-s the aboe9%entione" agencies (ere not i%plea"e" in this case %uch less gien notice of theprocee"ings, the "ecision of the trial court granting petitioners prayer for the correction of entries inhis serice recor"s, is 'oi.-s %entione" aboe, the absence of an in"ispensable party ren"ers allsubse=uent actions of the court null an" oi" for (ant of authority to act, not only as to the absentparties but een as to those present!):

On the =uestion of (hether or not respon"ent is estoppe" fro% assailing the "ecision of the RTC forfailure of the OS3, as goern%ent representatie, to participate in the procee"ings before the trialcourt or to file an opposition to petitioners petition for correction of entries in his serice recor"s, thisCourt rules that +) *% *pp*r#%$ o'#ri/$ * %o #*ri%/ o% $# '*lii$7 o& $# *pp#*l (i)$# p#$i$io%#r &il# #&or# $# CA.

N#i$#r )*% $# S$*$#, * r#pr##%$# 7 $# /o'#r%-#%$, # )o%i#r# i% #$opp#l +# $o$# p#$i$io%#rJ ##-i%/ *)@+i#)#%)# $o $# +/-#%$ o& $# RTC (#% i$ i%i$i*ll7 -*#)orr#)$io% $o o-# o& p#$i$io%#rJ r#)or (i$ $# PNP.This Court has reiterate" ti%e an"again that the absence of opposition fro% goern%ent agencies is of no controlling significance,
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because the S$*$# )*%%o$ # #$opp# 7 $# o-iio%, %ista.e or error of its officials oragents!)?Nor is the Republic barre" fro% assailing the "ecision granting the petition for correction ofentries if, on the basis of the la( an" the ei"ence on recor", such petition has no %erit! );

-s to the secon" an" last assigne" errors, suffice it to say that consi"ering that the assaile" "ecisionof the RTC is null an" oi", the sa%e coul" not hae attaine" finality! Settle" is the rule that a oi"

/u"g%ent cannot attain finality an" its e'ecution has no basis in la(!+*
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&anila

#N B-NC

G.R. No. 1;1101 +l7 5, 2011HACIENA LUISITA, INCORPORATE,Petitioner,LUISITA INUSTRIAL PARK CORPORATION *% RI"AL COMMERCIAL 8ANKINGCORPORATION,Petitioners9in9Interention,s!PRESIENTIAL AGRARIAN REFORM COUNCIL= SECRETARB NASSER PANGANAMAN OFTHE EPARTMENT OF AGRARIAN REFORM= ALBANSA NG MGA MANGGAGAANG 8UKING HACIENA LUISITA, RENE GALANG, NOEL MALLARI, *% ULIO SUNIGA)*% iSUPER!ISORB GROUP OF THE HACIENA LUISITA, INC. *% INSORANABA,Respon"ents!

D # C I S I O N!ELASCO, R., J.:

THE CASE


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T*#)o #'#%$+*ll7 or/*%i# * pi%o&& )orpor*$io%, #r#i% p#$i$io%#r HLI, * '#i)l# $o&*)ili$*$# $o)? *)@+ii$io% 7 $# &*r-(or?#r! 5or this purpose, Ta"eco coneye" to H6I theagricultural lan" portion 08,;)@!:@ hectares1 an" other far%9relate" properties of Hacien"a 6uisita ine'change for H6I shares of stoc.!

In );?;, so%e 9> o& $# $#% &*r-(or?#r#%#&i)i*ri# F83co%ple%ent of Hacien"a 6uisita

i/%i&i# i% * r#r#%+- $#ir *))#p$*%)# o& $# propo# HLI: S$o)? i$ri+$io% Op$io%Pl*%0SODP1!

On &ay )), );?;, the SDO- (as for%ally entere" into by Ta"eco, H6I, an" the @,?8? =ualifie"5>Bs!

Prior $o *ppro'*l, AR S#)r#$*r7 Miri*- #%orS*%$i*/o propo# $*$ $# SP #r#'i#, *lo%/ $# &ollo(i%/ li%#BsF (ill be %aintaine" atany gien ti%e

Noe%ber +), );?; 9 the P-RC, un"er then Sec! Defensor9Santiago, issue" R#ol+$io% No. 9122, *ppro'i%/ the SDP of Ta"eco4H6I!

5ro% );?; to +**@, H6I clai%e" to hae e'ten"e" the follo(ing benefits to the 5>Bs$0a1 billion pesos 0P,***,***,***1 (orth of salaries, (ages an" fringe benefits0b1 @; %illion shares of stoc. "istribute" for free to the 5>Bs0c1 )@* %illion pesos 0P)@*,***,***1 representing G of the gross pro"uce0"1 :!@ %illion pesos 0P:,@**,***1 representing G fro% the sale of @** hectares of conerte"agricultural lan" of Hacien"a 6uisita0e1 +8*9s=uare %eter ho%elots "istribute" for free0f1 +!8 %illion pesos 0P+,8**,***1 representing G fro% the sale of ?* hectares at ?* %illion pesos

0P?*,***,***1 for the SCT#0g1 Social serice benefits, such as but not li%ite" to free hospitali2ation4%e"ical4%aternity serices,ol" age4"eath benefits an" no interest bearing salary4e"ucational loans an" rice sugar accounts!T(o separate groups subse=uently conteste" this clai% of H6I! 0the #etitions%#rotets)

CON!ERSION PROPEROn -ugust )@, );;@, HLI *ppli# &or $# )o%'#rio% o& 500 #)$*r# o& l*% o& $# *)i#%*&ro- */ri)+l$+r*l $o i%+$ri*l +#, pursuant to Sec!


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The secon" petition, pr*7i%/ &or $# r#'o)*$io% *% %+lli&i)*$io% o& $# SOA *% $#i$ri+$io% o& $# l*% i% $# *)i#%*, (* &il# 7Alyansa ng mga /anggagaang 0uidng +acienda ,uisitaAM8ALA3.

T# AR $#% )o%$i$+$# * Sp#)i*l T*? For)# STF3to atten" to issues relating to the SDP ofH6I!

-fter inestigation an" ealuation, the ST5 foun" that H6I * %o$ )o-pli#(ith its obligationsun"er R- in"sor -n"aya, an" Rene 3alang, (ho file" the reocatory petitionsbefore the D-R! A HLI (o+l *'# i$, G*l*%/, $# #l&$7l# #* o& AM8ALA, /*i%# HLI


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#-plo7-#%$ i% +%# 1990 *%, $+, )o+l %o$ *'# ##% * p*r$7 $o $# SOA ##)+$# *7#*r #*rli#r.A r#/*r $# S+p#r'ior7 Gro+p, HLI *ll#/# $*$ +p#r'ior *r# %o$r#/+l*r &*r-(or?#r,but the co%pany nonetheless consi"ere" the% 5>Bs un"er the SDO- as a %ere concession toenable the% to en/oy the sa%e benefits gien =ualifie" regular far%(or.ers! Ho(eer, if the SDO-(oul" be cancele" an" lan" "istribution effecte", so H6I clai%s, citing 5ortich ! Corona, the

superisors (oul" be e'clu"e" fro% receiing lan"s as far%(or.ers other than the regularfar%(or.ers (ho are %erely entitle" to the Afruits of the lan"!AT# SOA %o l# i#%$i&i# D$# SP @+*li&i# #%#&i)i*ri#D * D$# &*r-(or?#r (o*pp#*r i% $# *%%+*l p*7roll, i%)l+i'# o& $# p#r-*%#%$ *% #*o%*l #-plo7##, (o *r#r#/+l*rl7 or p#rioi)*ll7 #-plo7# 7 HLI.D3alang, per H6I7s o(n a"%ission, is e%ploye" by H6I, an" is, thus, a =ualifie" beneficiary of theSDP he co%es (ithin the "efinition of a real party9in9interest un"er Sec! +, Rule of the Rules ofCourt, %eaning, one (ho stan"s to be benefite" or in/ure" by the /u"g%ent in the suit or is the partyentitle" to the aails of the suit!

T# *-# ol $r+# (i$ r#p#)$ $o $# S+p#r'ior7 Gro+p (o# -#-#r (#r# *-i$$#l7#-plo7# 7 HLI *% (o# %*-# *% i/%*$+r# #'#% *pp#*r# i% $# *%%# o& $# SOA.Being =ualifie" beneficiaries of the SDP, Suniga an" the other


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inclu"es the po(er to reo.e or recall the approal of the plan! To "eny P-RC such reocatorypo(er (oul" re"uce it into a toothless agency of C-RP, because the ery sa%e agency tas.e" toensure co%pliance by the corporate lan"o(ner (ith the approe" SDP (oul" be (ithout authority toi%pose sanctions for non9co%pliance (ith it!

H6I$ the parties to the SDO- shoul" no( loo. to the Corporation Co"e, instea" of to R-


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It %ay be (ell to note at this /uncture that Sec! @ of R- ;:**, a%en"ing Sec! : of R- BsF on thebasis of nu%ber of "ays (or.e" an" at no cost to the% of one9thirtieth 0)4*1 of ))?,;),;:Bs, (ho (ere =ualifie" beneficiaries at the ti%e of theapproal of the SDP, suffere" fro% (atering "o(n of shares! -s "eter%ine" earlier, each original5>B is entitle" to )?,?*8!+ H6I shares! The original 5>Bs got less than the guarantee" )?,?*8!+

H6I shares per beneficiary, because the ac=uisition an" "istribution of the H6I shares (ere base" on%an "ays or nu%ber of "ays (or.e" by the 5>B in a year7s ti%e! -s e'plaine" by H6I, abeneficiary nee"s to (or. for at least : "ays in a fiscal year before he or she beco%es entitle" toH6I shares! If it falls belo( : "ays, the 5>B, unfortunately, "oes not get any share at yearen"! The nu%ber of H6I shares "istribute" aries "epen"ing on the nu%ber of "ays the 5>Bs (ereallo(e" to (or. in one year! >orse, H6I hire" far%(or.ers in a""ition to the original Bs,such that, as in"icate" in the Co%pliance "ate" -ugust +, +*)* sub%itte" by H6I to the Court, thetotal nu%ber of far%(or.ers of H6I as of sai" "ate stoo" at )*,@*+! -ll these far%(or.ers, (hichinclu"e the original Bs, (ere gien shares out of the ))?,;),;:


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To the Court, there is a purpose, (hich is at once "iscernible as it is practical, for the three9%onththreshol"! Re%oe this ti%eline an" the corporate lan"o(ner can eritably ea"e co%pliance (ithagrarian refor% by si%ply "eferring to absur" li%its the i%ple%entation of the stoc. "istributionsche%e! the reason un"erpinning the *9year acco%%o"ation "oes not apply to corporatelan"o(ners in "istributing shares of stoc. to the =ualifie" beneficiaries, as the shares %ay be issue"in a %uch shorter perio" of ti%e!

Ta.ing into account the aboe "iscussion, the reocation of the SDP by P-RC shoul" be uphel"Ebecause of iolations ofF D-O )*! It bears stressing that un"er Sec! 8; of R- Bs, an" gae the% the opportunity to co%%ent or oppose the propose" conersion! D-R,after going through the necessary processes, grante" the conersion of @** hectares of Hacien"a6uisita pursuant to its pri%ary /uris"iction un"er Sec! @* of R-


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o(ners coul" legally sell an" coney the lots though these (ere preiously sub/ect of C-RPcoerage! #rgo, RCBC an" 6IPCO acte" in goo" faith in ac=uiring the sub/ect lots!

-n" second, both 6IPCO an" RCBC purchase" portions of Hacien"a 6uisita for alue! n"eniably,6IPCO ac=uire" ** hectares of lan" fro% Centennary for the a%ount of PhP:@* %illion pursuant toa Dee" of Sale "ate" uly *, );;?! On the other han", in a Dee" of -bsolute -ssign%ent "ate"Noe%ber +@, +**8, 6IPCO coneye" portions of Hacien"a 6uisita in faor of RCBC by (ay

of dacion en #agoto pay for a loan of PhP8),


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&anila

THIRD DIVISION

G.R. No. 15909; +l7 5, 2010

METROPOLITAN 8ANK AN TRUST COMPANB,Petitioner,s!RURAL 8ANK OF GERONA, INC.Respon"ent!

D # C I S I O N

8RION, J.:

P#$i$io%#r M#$ro*%? &il# $i P#$i$io% &or R#'i#( o% C#r$ior*ri1+%#r R+l# 45!The C-"ecision set asi"e the RTC of Tarlac, Branch


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On October , );:?, the C#%$r*l 8*%? *ppro'# Po%)i*%o L*/-*%: lo*% *ppli)*$io%&or P220,000.00!!

!ERB IMPORTANT< &ore than a %onth after RB3 ha" %a"e the aboe (ith"ra(als fro% itsaccount (ith &etroban., $# C#%$r*l 8*%? i+# #i$ *'i)#, r#'#ri%/ *ll $# *ppro'#I8R lo*%.

T# C#%$r*l 8*%? i-pl#-#%$# $# r#'#r*l 7 #i$i%/ &ro- M#$ro*%?: #-*% #poi$*))o+%$ $# *-o+%$ )orr#po%i%/ $o *ll $r## I8R lo*%!

&etroban., ho(eer, clai%e" that these a%ounts (ere insufficient to coer all the cre"it a"ices that(ere reerse" by the Central Ban.! It "e%an"e" pay%ent fro% RB3 (hich coul" %a.e partialpay%ents!

A o& O)$o#r 1;, 19;9, M#$ro*%? )l*i-# $*$ R8G * *% o+$$*%i%/ *l*%)#o& P>>4,220.00. To )oll#)$ $i *-o+%$, i$ &il# * )o-pl*i%$ &or )oll#)$io% o& +- o& -o%#7*/*i%$ R8G!

RTC r+l# &or M#$ro*%?, &i%i%/ $*$ l#/*l +ro/*$io% * #%+# It thus or"ere" RB3 to pay&etroban. the su% of P8,+**!**, plus interest at )8G per annu% until the a%ount is fully pai"!

O% *pp#*l, $# CA %o$# $*$ $i (* %o$ * )*# o& l#/*l +ro/*$io% +%#r Ar$i)l# 1>02 o&$# Ci'il Co#.Neertheless, the C- recogni2e" that &etroban. ha" a right to be rei%burse" of thea%ount it ha" pai" an" faile" to recoer, as it suffere" loss in an agree%ent that inole" only theCentral Ban. an" the RB3!

It clarifie", ho(eer, that a "eter%ination still ha" to be %a"e on (ho shoul" rei%burse &etroban.!Noting that no ei"ence e'ists (hy the Central Ban. reerse" the cre"it a"ices it ha" preiouslyconfir%e", $# CA #)l*r# $*$ $# C#%$r*l 8*%? o+l # i-pl#*# * * %#)#*r7 p*r$7o i$ )o+l # li/$ o% $# I8R lo*% r#'#r*l.

Thus, the C- set asi"e the RTC "ecision, an" re%an"e" the case to the trial court for furtherprocee"ings after the Central Ban. is i%plea"e" as a necessary party!MR ENIE.

ISSUEhen a thir" person, not intereste" in the obligation, pays (ith the e'press or tacitapproal of the "ebtor

01 >hen, een (ithout the .no(le"ge of the "ebtor, a person intereste" in the fulfill%ent ofthe obligation pays, (ithout pre/u"ice to the effects of confusion as to the latter7s share!E#%phasis supplie"!F

-s "iscusse", &etroban. (as a thir" party to the Central Ban.9RB3 agree%ent, ha" no intereste'cept as a con"uit, an" (as not legally ans(erable for the IBRD loans! Despite this, it (as&etroban.7s "e%an" "eposit account, instea" of RB37s, (hich the Central Ban. procee"e" against,on the assu%ption perhaps that this (as the %ost conenient %eans of recoering the cancelle"

loans! That &etroban.7s pay%ent (as inoluntarily %a"e "oes not change the reality that it (as&etroban. (hich effectiely ans(ere" for RB37s obligations!

>as there e'press or tacit approal by RB3 of the pay%ent enforce" against &etroban.K -fter&etroban. receie" the Central Ban.7s "ebit a"ices in Noe%ber );:?, it 0&etroban.1 accor"ingly"ebite" the a%ounts it coul" fro% RB37s special saings account (ithout any ob/ection fro%RB3!)8RB37s Presi"ent an" &anager, Dr! -=uiles -bellar, een (rote &etroban., on -ugust )8,);:;, (ith proposals regar"ing possible %eans of settling the a%ounts "ebite" by Central Ban. fro%&etroban.7s "e%an" "eposit account!)@These instances are all in"icatie of RB37s approal of&etroban.7s pay%ent of the IBRD loans! That RB37s tacit approal ca%e after pay%ent ha" been%a"e "oes not co%pletely negate the legal subrogation that ha" ta.en place!

-rticle )* of the Ciil Co"e states that subrogation transfers to the person subrogate" the cre"it(ith all the rights thereto appertaining, either against the "ebtor or against thir" persons! -s theentity against (hich the collection (as enforce", &etroban. (as subrogate" to the rights of CentralBan. an" has a cause of action to recoer fro% RB3 the a%ounts it pai" to the Central Ban., plus)8G per annu% interest!

U%#r $i i$+*$io%, i-pl#*i%/ $# C#%$r*l 8*%? * * p*r$7 i )o-pl#$#l7 +%%#)#*r7! >enote that the C- erroneously beliee" that the Central Ban.7s presence is necessary Ain or"er ' ' '
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to she" light on the %atter of reersals %a"e by it concerning the loan applications of the en" usersan" to hae a co%plete "eter%ination or settle%ent of the clai%!A)


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&anila

S#COND DIVISION

G.R. No. 1150 O)$o#r 2, 201>

OSCAR CONSTANTINO, MAIMA CONSTANTINO *% CASIMIRA MATURINGAN, Petitioners,s!HEIRS OF PERO CONSTANTINO, R., r#pr##%$# 7 ASUNCIONLAQUINANUM,Respon"ents!

D # C I S I O N

PERE", J.:

A P#$i$io% &or R#'i#( o% C#r$ior*ri +%#r R+l# 45.

THE FACTSith Counterclai%)that Pe"ro Sr!, uponhis "eath, left seeral parcels of lan", na%ely$ )1 a lot (ith an area of +8* s= % coere" by Ta'Declaration No!+*?)8 +1 a lot (ith an area of );+ s= % also situate" at Sta! &onica,Hagonoy,Bulacan, preiously coere" by Ta' Declaration No! ;@8 an" 1an agricultural lan" (ith an area of5our 081 hectares, %ore or less! The petitioners clai%e" that the "ocu%ent APag%a%ana sa 6abasng Hu.u%anA pertaining to the +8* s= % lot (as perfectly ali" an" legal, as it (as a pro"uct of%utual an" oluntary agree%ent bet(een an" a%ong the "escen"ants of the "ecease" Pe"ro Sr!

5urther, petitioners allege" that the respon"ents hae no cause of action against the% consi"eringthat the respon"ents7 la(ful share oer the estate of Pe"ro Sr!, ha" alrea"y been transferre" to the%as ei"ence" by the Dee" of #'tra/u"icial Settle%ent (ith >aier)8"ate" @ Dece%ber);


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&anila

S#COND DIVISION

G.R. No. 1150 O)$o#r 2, 201>

OSCAR CONSTANTINO, MAIMA CONSTANTINO *% CASIMIRA MATURINGAN, Petitioners,s!HEIRS OF PERO CONSTANTINO, R., r#pr##%$# 7 ASUNCIONLAQUINANUM,Respon"ents!

D # C I S I O N

PERE", J.:

Before the Court is a Petition for Reie( on Certiorari un"er Rule 8@ assailing the C- Decision (hichreerse" the RTC "ecision!

FACTSaier (ho (asalso allege"ly in agree%ent (ith the petitioners!

!ERB IMPORTANT< # */r## (i$ $# $ri*l )o+r$ $*$ r#po%#%$ *r# Dpri'i#D $o M*ri*L*@+i%*%+-.

Dpri'i#D $o# #$(##% (o- *% *)$io% i ##-# i%i%/ *l$o+/ $#7 *r# %o$ li$#r*ll7p*r$i# $o $# *i *)$io%.

This Court, in Correa ! Pascual,)ha" occasion to e'plain that Apriity in estate "enotes the priitybet(een assignor an" assignee, "onor an" "onee, grantor an" grantee, /oint tenant for life an"re%ain"er%an or reersioner an" their respectie assignees, en"or by "ee" of (arranty an" a

re%ote en"ee or assignee! - priy in estate is one, it has been sai", (ho "eries his title to theproperty in =uestion by purchase one (ho ta.es by coneyance.D I% &i%#, r#po%#%$, *+))#ori%i%$#r#$, #ri'# $#ir ri/$ &ro- *% *r# i% $# *-# poi$io% * $#irpr##)#or i% (o# o# $#7 %o( $*%.-s such successors, respon"ents7 situation isanalogous to that of a transferee pen"ente lite illustrate" in Santiago 6an" Deelop%ent Corporation! Court of -ppeals,+reiterating 5etalino ! San2(here this Court hel"$

23 NO. !ERB IMPORTANT


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ISSUE o% RULES ON E!IENCE4 pr#'io+l7 o(%# 7 P#roCo%$*%$i%o, Sr. (* $r*%rr# $o M*ri* Co%$*%$i%o +%#r T* #)l*r*$io% No. 95>5=i/li/$i%/ o+r3

1. T# #i$#%)# o& E$r*+i)i*l S#$$l#-#%$ (i$ *i'#r p#r o). No.>19, P*/# No. 44, 8oo?No. 11, S#ri# o& 19 7 No$*r7 P+li) Ro-#ri)o Flor#, r.D

Cl#*rl7, $# *o'# $ip+l*$io% i *% *-iio% */*i%$ r#po%#%$: i%$#r#$ o& $# &*)$ o&o(%#rip 7 P#ro Sr. o& $# 192 @ - lo$ )o'#r# 7 T* #)l*r*$io% No. 95>4, (i) (*

$r*%rr# $o r#po%#%$: -o$#r, $# *+/$#r o& P#ro r.Such that, in one of the issuessub%itte" to be resole" by the trial court, this (as inclu"e"$ A>hether or not the ADee" of#'tra/u"icial Settle%ent (ith >aierA is enforceable against the plaintiffs, thus curing the legalinfir%ities, if any, of the APag%a%ana sa 6abas ng Hu.u%anA


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cannot be controerte" by the party %a.ing such a"%ission an" are conclusie as to such party, an"all proofs to the contrary or inconsistent there(ith shoul" be ignore", (hether ob/ection is interpose"by the party or not! The allegations, state%ents or a"%issions containe" in a plea"ing are conclusieas against the plea"er! - party cannot subse=uently ta.e a position contrary of or inconsistent (ith(hat (as plea"e"!8)0Citations o%itte"1

>e are a(are that the last paragraph of Section :, Rule )? of the Rules of Court seres as a caeatfor the rule of conclusieness of /u"icial a"%issions for, in the interest of /ustice, issues that %ayarise in the course of the procee"ings but (hich %ay not hae been ta.en up in the pre9trial can stillbe ta.en up!

Section :, Rule )? of the Rules of Court rea"s$

Section :! Recor" of pre9trial! The procee"ings in the pre9trial shall be recor"e"! 8a$#i8pon theter%ination thereof, the court shall issue an or"er (hich shall recite in "etail the %atters ta.en up inthe conference, the action ta.en thereon, the a%en"%ents allo(e" to the plea"ings, an" theagree%ents or a"%issions %a"e by the parties as to any of the %atters consi"ere"! Shoul" theaction procee" to trial, the or"er shall, e'plicitly "efine an" li%it the issues to be trie"! The contents

of the or"er shall control the subse=uent course of the action, unless %o"ifie" before trial to preentin/ustice!

In a""ition, Section 8 of Rule )+; of the Rules of Court, proi"es that$

A% *-iio%, '#r*l or (ri$$#%, -*# 7 * p*r$7 i% $# )o+r# o& $# pro)##i%/ i% $#*-# )*#, o# %o$ r#@+ir# proo&. T# *-iio% -*7 # )o%$r*i)$# o%l7 7 o(i%/ $*$i$ (* -*# $ro+/ p*lp*l# -i$*?# or $*$ %o +) *-iio% (* -*#.

A )o%$#-pl*$# i% $# *&or#-#%$io%# pro'iio% o& $# R+l# o& Co+r$, $# /#%#r*l r+l#r#/*ri%/ )o%)l+i'#%# o& +i)i*l *-iio% +po% $# p*r$7 -*?i%/ i$ *% $#ip#%*$io% o& proo& *-i$ o& $(o #)#p$io%< 13 (#% i$ i o(% $*$ $# *-iio% (*

-*# $ro+/ p*lp*l# -i$*?#, *% 23 (#% i$ i o(% $*$ %o +) *-iio% (* i% &*)$-*#. T# l*$$#r #)#p$io% *llo( o%# $o )o%$r*i)$ *% *-iio% 7 #%7i%/ $*$ # -*#+) *% *-iio%.42

Ho(#'#r, r#po%#%$ &*il# $o r#&+$# $# #*rli#r *-iio%6$ip+l*$io% #&or# *% +ri%/ $#$ri*l. >hile "enying o(nership by Pe"ro Sr! of the );+ s= % lot, respon"ent -suncion 6a=uin"anu%,(hen place" on the stan", offere" a ague e'planation as to ho( such parcel of lan" (as ac=uire"by Pe"ro r! - portion of her testi%ony8is hereto repro"uce" as follo(s$

A-TT! DO&IN3O$

J$ Do you .no( if as part of the estate of the late Pe"ro Constantino, Sr! is another parcel of lan"also situate" at Sta! &aria, Hagonoy, Bulacan (ith an area of );+ s=uare %etersK

-$ It is not o(ne" by Pe"ro Constantino, Sr!, sir! It is our property o(ne" by Pe"ro Constantino, r!that (as inherite" by %y %other &aria Constantino!

J$ -n" "o you .no( ho( Pe"ro Constantino, r! ac=uire" that parcel of lan", the one that you%entione" a (hile agoK

-$ Qinagisnan .o na po yong lupang yon pag.abata pa na yon e a%in!A 0Highlighting ours1
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The aboe assertion of "enial is si%ply a self9sering "eclarationunsupporte" by ei"ence! Thisren"ers conclusie the stipulations %a"e "uring the pre9trial conference! Conse=uently, respon"entsare boun" by the infir%ities of the contract on (hich they base" their right oer the property sub/ect%atter thereof! Consi"ering that the infir%ities in the t(o "ee"s relate to e'clusion of heirs, acircu%ention of an heir7s right to his or her legiti%e, it is apt to reiterate our ruling in Neri ! Heirs ofHa"/i usop y,88"isposing that$

Hence, in the e'ecution of the #'tra9u"icial Settle%ent of the #state (ith -bsolute Dee" of Sale infaour of spouses y, all the heirs of -nnunciation shoul" hae participate"! Consi"ering that#utropia an" Victoria (ere a"%itte"ly e'clu"e" an" that then %inors Rosa an" Douglas (ere notproperly represente" therein, the settle%ent (as not ali" an" bin"ing upon the% an" conse=uently,a total nullity! 0Highlighting ours1

5urther highlighting the effect of e'clu"ing the heirs in the settle%ent of estate, the case of Segura !Segura,8@eluci"ate" thus$

It is clear that Section ) of Rule :8 "oes not apply to the partition in =uestion (hich (as null an" oi"as far as the plaintiffs (ere concerne"! The rule coers only partition! The partition in the present

case (as inali" because it e'clu"e" si' of the nine heirs (ho (ere entitle" to e=ual shares in thepartitione" property! n"er the rule Ano e'tra/u"icial settle%ent shall be bin"ing upon any person(ho has not participate" therein or ha" no notice thereof!A -s the partition (as a total nullity an" "i"not affect the e'clu"e" heirs, it (as not correct for the trial court to hol" that their right to challengethe partition ha" prescribe" after t(o years fro% its e'ecution ' ' '!

In light of the foregoing, (hile both parties acte" in iolation of the la( on legiti%es, the pari "elictorule, e'presse" in the %a'i%s A#' "olo %alo non oritur actionA an" Ain pari "elicto potior estcon"ition "efen"entis,A (hich refuses re%e"y to either party to an illegal agree%ent an" leaes the%(here they are, "oes not apply in this case! 0n"erline supplie"18


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each other, an" it shall leae the parties (here it fin"s the%! This "octrine fin"s e'pression in the%a'i%s Ae' "olo %alo nonoritur actioA an" Ain pari "elicto potior est con"itio "efen"entis!A++

-s a "octrine in ciil la(, the rule on pari "elicto is principally goerne" by -rticles )8)) an" )8)+ ofthe Ciil Co"e, (hich state that$

-rticle )8))! >hen the nullity procee"s fro% the illegality of the cause or ob/ect of the contract, an"the act constitutes a cri%inal offense, both parties being in pari "elicto, they shall hae no actionagainst each other, an" both shall be prosecute"!

''' '''

-rticle )8)+! If the act in (hich the unla(ful or forbi""en cause consists "oes not constitute acri%inal offense, the follo(ing rules shall be obsere"$

''' '''

)! >hen the fault is on the part of both contracting parties, neither %ay recoer (hat he has gien by

irtue of the contract, or "e%an" the perfor%ance of the other7s un"erta.ing

''' '''!

!ERB IMPORTANT< T# p#$i$io% *$ #%) o# %o$ p#*? o& *% ill#/*l )*+# o& )o%$r*)$)o%$i$+$i%/ * )ri-i%*l o&%# +%#r Ar$i)l# 1411.Neither can it be sai" that -rticle )8)+ fin"sapplication although such proision (hich is part of Title II, Boo. IV of the Ciil Co"e spea.s ofcontracts in general, as (ell as contracts (hich are null an" oi" ab initio pursuant to -rticle )8*; ofthe Ciil Co"e such as the sub/ect contracts, (hich as clai%e", are iolatie of the %an"atoryproision of the la( on legiti%es!

# o %o$ ip+$# $*$ #r#i% p*r$i#, $ro+/ $# ## $#7 #p*r*$#l7 ##)+$# #pri'#

#*) o$#r o& ri/$&+l *r# i% $# $(o lo$ +#)$ o& $# #p*r*$# )o%$r*)$ $*$ i, i& $#$(o 23 p*r)#l o& l*% +#)$ -*$$#r $#r#o&, &or- p*r$ o& $# #$*$# o& $# l*$# P#ro Sr.

It is asserte" by the petitioners that their e'ecution in );;+ of the contract "eno%inate" asAPag%a%ana sa 6abas ng Hu.u%anA (hich e'clu"e" other heirs of Pe"ro Sr!, (as (ith anun"erlying agree%ent (ith the other heirs inclu"ing &aria Constantino, "aughter of Pe"ro r! an"gran"%other of respon"ents!+@

The agree%ent (as for the other heirs to recogni2e the );+ s=uare %eters lot sub/ect %atter of theA#'tra/u"icial Settle%ent (ith >aierA e'ecute" in );


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Ti i %o$ $o *7, o(#'#r, $*$ $# CA (* )orr#)$ i% +poli%/ $# '*lii$7 o& $# )o%$r*)$#%o-i%*$# * DP*/-*-*%* * L** %/ H+?+-*%.D T# CA #)iio% #i%/, li?#(i#,*# o% p*ri #li)$o, i *lo i%)orr#)$.

Fi%i%/ $# i%*ppli)*ili$7 o& $# i% p*ri #li)$o o)$ri%#, # &i% o))*io% $o $r# $*$Ar$i)l# 1412 o& $# Ci'il Co# $*$ r#*$# li $o $# o)$ri%# p#*? o& $# ri/$ *%

oli/*$io% o& $# p*r$i# $o $# )o%$r*)$ (i$ *% ill#/*l )*+# or o#)$ (i) o# %o$)o%$i$+$# * )ri-i%*l o&%#. I$ *ppli# $o )o%$r*)$ (i) *r# 'oi &or ill#/*li$7 o& +#)$-*$$#r *% %o$ $o )o%$r*)$ r#%#r# 'oi &or #i%/ i-+l*$#, 2or $o# i% (i) $# p*r$i#o %o$ r#*ll7 i%$#% $o # o+% $#r#7. Sp#)i&i)*ll7, i% p*ri #li)$o i$+*$io% i%'ol'# $#p*r$i# i% o%# )o%$r*)$ (o *r# o$ *$ &*+l$, +) $*$ %#i$#r )*% r#)o'#r %or *'# *%7*)$io% */*i%$ #*) o$#r!

I% $i )*#, $#r# *r# $(o ## o& #$r*+i)i*l *i/%-#%$ unto the signatories of theportions of the estate of an ancestor co%%on to the% an" another set of signatories li.e(iseassigning unto the%seles portions of the sa%e estate! The separate Dee"s ca%e into being out ofan i"entical intention of the signatories in both to e'clu"e their co9heirs of their rightful share in theentire estate of Pe"ro Sr! It (as, in reality, an assign%ent of specific portions of the estate of Pe"ro

Sr!, (ithout resorting to a la(ful partition of estate as both sets of heirs inten"e" to e'clu"e the otherheirs!

Cl#*rl7, $# pri%)ipl# o& i% p*ri #li)$o )*%%o$ # *ppli#. T# i%*ppli)*ili$7 i i)$*$# %o$o%l7 7 $# &*)$ $*$ $(o ##, %o$ o%# )o%$r*)$, *r# i%'ol'#, +$ #)*+# o& $# -or#i-por$*%$ r#*o% $*$ +) *% *ppli)*$io% (o+l r#+l$ i% $# '*li*$io% o& o$ ##i%$#* o& $#ir %+lli&i)*$io% * %#)#i$*$# 7 $#ir ill#/*li$7. I$ -+$ # #-p*i# $*$ $#+%#rl7i%/ */r##-#%$ r#+l$i%/ i% $# ##)+$io% o& $# ## i %o$i%/ +$ * 'oi*/r##-#%$. Ar$i)l# 1409 o& $# Ci'il Co# pro'i# $*$

!IRGILIO G. CAGATAO,Petitioner,s!GUILLERMO ALMONTE, ARTHUR AGUILAR, SPS. ERNESTO FERNANE" AN A!ELINAFERNANE", MAR!IN OHN FERNANE", MARSON FERNANE", *% MARUNFERNANE",Respon"ents!

D # C I S I O N

MENO"A, J.:

R8@ petition assailing the C- "ecision (hich %o"ifie" the RTC Decision!

FACTSar!


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-part fro% these ano%alous transactions, Cagatao insiste" that TCT No! T9+8;8: in the na%e ofthe 5ernan"e2 Siblings (as a nullity because the sale fro% the Spouses 5ernan"e2 (as i-+l*$#,as testifie" to by -elina 5ernan"e2 05ernan"e2!

The respon"ents clai%e" that Cagatao (as unable to present proof of title or any public "ocu%ente%bo"ying the sale of the property fro% 3atchalian to &an2ulin an" fro% the latter to Cagatao!

T#7 *lo *r/+# $*$ #'#% i& * o-#$#* p*$#%$ (* i%## i+# $o G*$)*li*%, $# *-##)*-# 'oi (#% # G*$)*li*%3 i %o$ o))+p7 $# l*% i-#l&, i% 'iol*$io% o&Co--o%(#*l$ A)$ No. 141 P+li) L*% A)$ o& 19>3.1>

RTC r+l# $*$ C*/*$*o: #'i#%)# (* i%+&&i)i#%$ $o pro'# i o(%#rip o'#r $# l*% i%@+#$io% #)*+# M*%+li% %#'#r *)@+ir# * l*(&+l $i$l# $o $# prop#r$7 &ro- i pr##)#or,G*$)*li*%.The court e'plaine" that the transfer to &an2ulin (as null an" oi" because it faile" toco%ply (ith Section +*)@of Co%%on(ealth -ct No! )8)! -s to the suppose" coneyance of the lotfro% &an2ulin to Cagatao, it coul" not hae been ali" because the "ocu%ent allege" to be a "ee"of sale (as a priate "ocu%ent (hich "i" not conclusiely establish his 0Cagatao7s1 right to theproperty because of the re=uire%ent in contract la( that the trans%ission of rights oer ani%%oable property %ust be containe" in a public "ocu%ent!

RTC i-i# $# )o-pl*i%$ &or *%%+l-#%$ o& ## o& *l#.

C*/*$*o *pp#*l# $o $# CA!

CA p*r$l7 /r*%$# i p#$i$io% *% -oi&i# $# #)iio% o& $# RTC, leaing the parties (here itfoun" the%!

-lthough the C- "eclare" that Cagatao7s clai% of o(nership coul" not be recogni2e", it neerthelessrule" that his possession coul" not be "isturbe" because only the true o(ner coul" challenge hi% forpossession of the sub/ect property! 6eaing the parties (here it foun" the%

Respon"ents file" an &R! CA r#'#r# i$#l&(hen it rule" that the "ee" of sale bet(een Carlosan" Spouses 5ernan"e2 )o+l %o$ # #)l*r# %+ll *% 'oi, #p#)i*ll7 #)*+# C*rlo (*%o$ i-pl#*# * * p*r$7 i% $# )*#.

C*/*$*o: $+r% $o &il# *% MR. MR ENIE.

R45 $o SC.

ISSUE r#l*$# $o PARTIES00, I%)., *% $*$#%*%$, #r#i% r#po%#%$, *r# $# %#(l7#l#)$# -#-#r o& $# 8o*r o& ir#)$or=

(il# i% $# S#)o% A-#%# Co-pl*i%$, $# pl*i%$i&& i L#/*pi To(#r >00, I%).,r#pr##%$# 7 p#$i$io%#r * $# *ll#/#l7 i%)+-#%$ r#)o%$i$+$# 8o*r o& ir#)$or o&L#/*pi To(#r >00, I%).

T# Co+r$ */r## (i$ $# Co+r$ o& App#*l $*$ $# S#)o% A-#%# Co-pl*i%$ i -#*%$ $o# * #ri'*$i'# +i$ &il# 7 p#$i$io%#r i% #*l& o& $# )orpor*$io%.The Court of -ppeals state"in its Decision that petitioners /ustifie" the inclusion of 6egaspi To(ers **, Inc! as plaintiff in CiilCase No! *8)*here a stoc.hol"er or %e%ber is "enie" the right of inspection, his suit (oul"be i%i'i+*lbecause the (rong is "one to hi% personally an" not to the other stoc.hol"ersor the corporation! #r# $# (ro%/ i o%# $o * /ro+p o& $o)?ol#r, * (#r#pr#rr# $o)?ol#rJ ri/$ *r# 'iol*$#, * )l* or r#pr##%$*$i'# +i$ (ill #prop#r &or $# pro$#)$io% o& *ll $o)?ol#r #lo%/i%/ $o $# *-# /ro+p. But (herethe acts co%plaine" of constitute a (rong to the corporation itself, the cause of actionbelongs to the corporation an" not to the in"ii"ual stoc.hol"er or %e%ber! -lthough in %osteery case of (rong to the corporation, each stoc.hol"er is necessarily affecte" because thealue of his interest therein (oul" be i%paire", this fact of itself is not sufficient to gie hi%
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an in"ii"ual cause of action since the corporation is a person "istinct an" separate fro%hi%, an" can an" shoul" itself sue the (rong"oer! Other(ise, not only (oul" the theory ofseparate entity be iolate", but there (oul" be %ultiplicity of suits as (ell as a iolation of thepriority rights of cre"itors! 5urther%ore, there is the "ifficulty of "eter%ining the a%ount of"a%ages that shoul" be pai" to each in"ii"ual stoc.hol"er!

Ho(eer, in cases of %is%anage%ent (here the (rongful acts are co%%itte" by the "irectors ortrustees the%seles, a stoc.hol"er or %e%ber %ay fin" that he has no re"ress because the for%erare este" by la( (ith the right to "eci"e (hether or not the corporation shoul" sue, an" they (illneer be (illing to sue the%seles! The corporation (oul" thus be helpless to see. re%e"y!Because of the fre=uent occurrence of such a situation, the co%%on la( gra"ually recogni2e" theright of a stoc.hol"er to sue on behalf of a corporation in (hat eentually beca%e .no(n as aA"eriatie suit!A It has been proen to be an effectie re%e"y of the %inority against the abuses of%anage%ent! Thus, an in"ii"ual stoc.hol"er is per%itte" to institute a "eriatie suit on behalf ofthe corporation (herein he hol"s stoc. in or"er to protect or in"icate corporate rights, (heneerofficials of the corporation refuse to sue or are the ones to be sue" or hol" the control of thecorporation! In such actions, the suing stoc.hol"er is regar"e" as the no%inal party, (ith thecorporation as the party9in9 interest!)?

Since it is the corporation that is the real party9in9interest in a "eriatie suit, then the reliefs praye"for %ust be for the benefit or interest of the corporation!);>hen the reliefs praye" for "o not pertainto the corporation, then it is an i%proper "eriatie suit!+*

T# r#@+ii$# &or * #ri'*$i'# +i$ *r# * &ollo(94 F#r+*r7 1;, 2005

REPU8LIC OF THE PHILIPPINES,petitioner,s!GREGORIO AGUNOB, SR., #$ *l., SPOUSES EUARO *% ARCELITA MARQUE" *% RURAL8ANK OF GAPAN, NUE!A ECIA,respon"ents!

D # C I S I O N

GARCIA, J.:

Interplaying in this case are t(o 0+1 counter9balancing "octrines in the la( of lan" titles$ one, the"octrine of fraus et )us nun'uam cohabitant(hich basically %eans that no one %ay en/oy thefruits of frau",)an" the other, the "octrine that a frau"ulent title %ay be the root of ali" title in thena%e of an innocent buyer for alue an" in goo" faith!+

Ino.ing the first, petitioner Republic of the Philippines in this R45 p#$i$io% &or r#'i#( o% )#r$ior*ri,see.s to nullify an" set asi"e the #)iio% *$# S#p$#-#r 2, 2002of the C- (hich reerse" anearlier "ecision of the RTC in the *)$io% &or )*%)#ll*$io% o& &r## p*$#%$, ori/i%*l )#r$i&i)*$# o& $i$l#*% #ri'*$i'# $r*%r )#r$i&i)*$# o& $i$l#,thereat file" by the petitioner against, a%ong others,the herein respon"ents!

The facts are (ell lai" out in the "ecision un"er reie($

Gr#/orio A/+%o7, Sr. &il# i *ppli)*$io% &or Fr## P*$#%$coering t(o parcels of lan" in Nuea#ci/a! He (as issue" the free patent by the Director of 6an"s!

The Register of Dee"s of Nuea #ci/a registere" the 5ree Patent an" issue" thecorrespon"ing OCT in the na%e of 3regorio -gunoy, Sr!

T# #ir o& E+#io P#r#, r#pr##%$# 7 Fr*%)i)* P#r#, )*+# $# *%%o$*$io% o% $#*i OCT o& *% *'#r# )l*i-in their faor oer a portion of )@!)@; hectares of the property!

The sai" heirs of #usebio Pere2 file" a for%al protest "oc.ete" as B!6! Clai% No! :


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Upo% $# #*$ o& $# (i o& Gr#/orio A/+%o7, Sr. $# l*% (* +#)$ o& * ## o&E$r*+i)i*l P*r$i$io% *-o%/ $# #ir. Corr#po%i%/ TCT (#r# i+# +$ +#@+#%$l7)*%)#ll# 7 r#*o% o& $# )o%)+rr#%$ *l# $o o*@+i% S*%/*ol i% (o# &*'or * TCT (*i+#.

+ri%/ $# &ollo(i%/ 7#*r +p $o $# &ili%/ o& $# +ppl#-#%$*l pro$#$ i% 19, $# o(%#rip

o& $# prop#r$7 (* $r*%rr# 7 *% #$(##% %+-#ro+ i%i'i+*l -+l$ipl# $i-#. TCT(#r# i+#.

o*@+i% S*%/*ol ol *% +%i'i# por$io% o& $r## >3 #)$*r# o& $# prop#r$7 $o For$+%*$oP*r* for an" in consi"eration of the su% of Three Thousan" 5ie Hun"re" Pesos 0,@**!**1

T# &ollo(i%/ *7, # ol $# prop#r$7 $o !ir/i%i* P. i-#%#!

T# *'#r# )l*i- o& Fr*%)i)* P#r#, #$ *l. *%%o$*$# *$ $# *)? o& $# OCT (* )*%)#ll#7 $# R#/i$#r o& ## o& N+#'* E)i*.

Virginia P! i%ene2 sol" the property n faor of spouses Blan"ino an" osefina -! Sala Cru2

O% No'#-#r 2, 192, For$+%*$o P*r*, $ro+/ i *$$or%#7i%&*)$ Glori* 8#r/o%i*,-or$/*/# $# prop#r$7

T# -or$/*/# (* &or#)lo# *% $# prop#r$7 (* ol *$ p+li) *+)$io%. Thereafter, thecorrespon"ing certificate of sale (as e'ecute" in faor of Perpetual 5inance an" Cre"it, Inc!

e %ortgage" (ith the Rural Ban. of 3apan! %ortgage (as li.e(ise foreclose" an" the properties(ere sol" at public auction in faor of the sai" ban.!

oa=uin Sangabol sol" the property to #"uar"o R! Dee for an" in

I% 19, $# #ir o& R+p#r$o P#r# ol#$ o% o& E+#io3, %o( r#pr##%$# 7 S*i%* P.H#r%*%#, &il# * +ppl#-#%$*l pro$#$4

T# 8+r#*+ o& L*% )o%+)$# *%#( *% i%'#$i/*$io% *% o)+l*r i%p#)$io%

!ERB IMPORTANT< T# Ci#& o& $# L#/*l i'iio% r#)o--#%# $o $# ir#)$or o& L*%$*$ )o+r$ *)$io% # i%$i$+$# &or $# )*%)#ll*$io% o& Fr## *% i$ )orr#po%i%/ Ori/i%*lC#r$i&i)*$# o& Ti$l# i% $# %*-# Gr#/orio A/+%o7, Sr., * (#ll * o$#r +#@+#%$ $r*%r)#r$i&i)*$# o& $i$l# i+# $#r#&ro- *# o% $# &or#/oi%/ &i%i%/

!ERB IMPORTANT< R#p+li) o& $# Pilippi%#, $r+ $# O&&i)# o& $# Soli)i$or G#%#r*l, &il#$# )o-pl*i%$4i% $i )*# */*i%$ #'#r*l #%*%$. I$ (* *% *)$io% &or )*%)#ll*$io% o&

&r## p*$#%$, ori/i%*l )#r$i&i)*$# o& $i$l# *% #ri'*$i'# $r*%r )#r$i&i)*$# o& $i$l#

RTC r+l# i% &*'or o& $# R#p+li) *% )*%)#ll# $# OCT *% TCT.

T#r#&ro-, $# po+# E+*ro ## *% Ar)#li$* M*r@+### *% $# R+r*l 8*%? o& G*p*%,N+#'* E)i* (ent to the Court of -ppeals

CA r#'#r# $# RTC.
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R#p+li) (#%$ $o $# SC +%#r R45.

ISSUEithout "oubt, if our "ecision hereon (ere to be infaor of petitioner, the real beneficiary thereof is not the State! -n" because, as no less a"%itte" bythe petitioner, the lan"s sub/ect of this case are no longer part of the public "o%ain, the nullificationof -gunoy7s 5ree Patent P9)88@* an" OCT No! P98@++ (oul" not result in the reersion of thelan"s sub/ect thereof to the %ass of public lan"! -n" the goern%ent, not being the real party9in9interest, is (ithout personality to institute reersion procee"ings! So it is that in an earlier case, )*(eha" an occasion to say$
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T#r# i %o -#ri$ i% p#$i$io%#rJ )o%$#%$io% $*$ o%l7 $# S$*$# -*7 ri%/ *% *)$io% &orr#)o%'#7*%)# o& $# lo$ i% ip+$#. To r#i$#r*$#, Lo$ 2>44 i * pri'*$# prop#r$7 i% op#%,)o%$i%+o+, #)l+i'# *% %o$orio+ po#io% o& $# S*%$i*/o &*-il7. T# %+lli&i)*$io% o&i$ &r## p*$#%$ *% $i$l# (o+l %o$ $#r#&or# r#+l$ i% i$ r#'#rio% $o $# p+li) o-*i%.H#%)#, $# S$*$#, r#pr##%$# 7 $# Soli)i$or G#%#r*l, i %o$ $# r#*l p*r$7 i% i%$#r#$.

E#Fen on the supposition that the sale (as oi", the general rule that the "irect result of a preiousillegal contract cannot be ali" 0on the theory that the spring cannot rise higher than its source1cannot apply here for >e are confronte" (ith the functionings of the Torrens Syste% of Registration!The "octrine to follo( is si%ple enough$ a frau"ulent or forge" "ocu%ent of sale %ay beco%e theROOT of a ali" title if the certificate of title has alrea"y been transferre" fro% the na%e of the trueo(ner to the na%e of the forger or the na%e in"icate" by the forger!

It is een (orse in this case because here, there is no forger to spea. of! The re%ar. of 6an"Inspector ose &en"igoria about the aban"on%ent by #usebio Pere2 an" Valenciano #spiritucannot, by itself, be frau"ulent! -n", for all (e .no(, that re%ar. %ay een turn out to be the truth!>hat petitioner perceies as frau" %ay be nothing %ore than the "ifferences of professionalopinions bet(een 6an" Inspector ose &en"igoria an" 3eo"etic #ngineer &elencio &angahas! But

regar"less of (ho bet(een the t(o is correct, the har" reality is that the properties in =uestion are nolonger floating ob/ects on a s#ring that cannot rise higher than its source, as they are no( ery %uchashore an" fir%ly stan"ing on the high soli" groun" of the Torrens syste% of lan" registration! 8a$#hi8.nNt

HEREFORE, the assaile" "ecision of the Court of -ppeals is hereby -55IRD an" this petitionD#NI#D!

SO ORD#R#D!


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R#p+li) o& $# Pilippi%#Supre%e Court

&anila

THIR I!ISION

UANA COMPLE I HOMEONERSASSOCIATION, INC Petitioners,

9 ersus 9

FILESTATE LAN,INC., Respon"ents!

G.R. No. 1522;2

&arch @, +*)+

999999999999999999999999999999999999999999999999999999999999999999999999999999999999 ECISIONMENO"A, J.3 $# p*r$i# ri%/i%/ $# )l* +i$ *r# +&&i)i#%$l7 %+-#ro+ or r#pr##%$*$i'# o& $# )l**% )*% &+ll7 pro$#)$ $# i%$#r#$ o& *ll )o%)#r%#.24

!ERB IMPORTANT< I% $i )*#, $# +i$ i )l#*rl7 o%# $*$ #%#&i$ *ll )o--+$#r *%-o$ori$ (o +# L* P* Ro*.-s succinctly state" by the C-$T# +#)$ -*$$#r o& $# i%$*%$ )*#, i.#., $# )lo+r# *% #)*'*$io% o& $# L* P* Ro*, ii%i$i*ll7 o(% $o # o& )o--o% or /#%#r*l i%$#r#$ $o -*%7 p#ro% ! The recor"s reeal thatnu%erous in"ii"uals hae file" %anifestations (ith the lo(er court, coneying their intention to /oinpriate respon"ents in the suit an" clai%ing that they are si%ilarly situate" (ith priate respon"entsfor they (ere also pre/u"ice" by the acts of petitioners in closing an" e'caating the 6a Pa2 Roa"!&oreoer, the in"ii"uals sought to be represente" by priate respon"ents in the suit are so

nu%erous that it is i%practicable to /oin the% all as parties an" be na%e" in"ii"ually as plaintiffs inthe co%plaint! These in"ii"uals clai% to be resi"ents of arious barangays in BiUan, 6aguna an"other barangays in San Pe"ro, 6aguna!

-nent the issue on the propriety of the >PI, Section , Rule @? of the Rules of Court lays "o(n therules for the issuance thereof! Thus$

0a1 That the applicant is entitle" to the relief "e%an"e", an" the (hole or part of such reliefconsists in restraining the co%%ission or continuance of the acts co%plaine" of, or in theperfor%ance of an act or acts, either for a li%ite" perio" or perpetually0b1 That the co%%ission, continuance or non9perfor%ance of the act or acts co%plaine" of"uring the litigation (oul" probably (or. in/ustice to the applicant or

0c1 That a party, court, or agency or a person is "oing, threatening, or atte%pting to "o, or isprocuring or suffering to be "one, so%e act or acts probably in iolation of the rights of the applicantrespecting the sub/ect of the action or procee"ing, an" ten"ing to ren"er the /u"g%ent ineffectual!

- (rit of preli%inary in/unction is aailable to preent a threatene" or continuous irre%e"iable in/uryto parties before their clai%s can be thoroughly stu"ie" an" a"/u"icate"! E+@F The re=uisites for itsissuance are$ 0)1 the e'istence of a clear an" un%ista.able right that %ust be protecte" an" 0+1 an
http://sc.judiciary.gov.ph/jurisprudence/2012/march2012/152272.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2012/march2012/152272.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2012/march2012/152272.htm#_ftn25http://sc.judiciary.gov.ph/jurisprudence/2012/march2012/152272.htm#_ftn25http://sc.judiciary.gov.ph/jurisprudence/2012/march2012/152272.htm#_ftn24http://sc.judiciary.gov.ph/jurisprudence/2012/march2012/152272.htm#_ftn25


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urgent an" para%ount necessity for the (rit to preent serious "a%age!E+PI! Their right to the use of 6a Pa2 Roa" is "isputable since they hae noclear legal right therein! -s correctly rule" by the C-$Here, contrary to the ruling of respon"ent u"ge, priate respon"ents faile" to proe as yet that theyhae a clear an" un%ista.able right oer the 6a Pa2 Roa" (hich (as sought to be protecte" bythe in/unctie (rit! They %erely anchor their purporte" right oer the 6a Pa2 Roa" on the bareallegation that they hae been using the sa%e as public roa" right9of9(ay for %ore than ten years! -%ere allegation "oes not %eet the stan"ar" of proof that (oul" (arrant the issuance of the in/unctie(rit! 5ailure to establish the e'istence of a clear right (hich shoul" be /u"icially protecte" throughthe (rit of in/unction is a sufficient groun" for "enying the in/unction!Conse=uently, the case shoul" be further hear" by the RTC so that the parties can fully proe theirrespectie positions on the issues!

Due process consi"erations "ictate that the assaile" in/unctie (rit is not a /u"g%ent on the %eritsbut %erely an or"er for the grant of a proisional an" ancillary re%e"y to presere the status =uountil the %erits of the case can be hear"! The hearing on the application for issuance of a (rit ofpreli%inary in/unction is separate an" "istinct fro% the trial on the %erits of the %ain case! E+;FTheei"ence sub%itte" "uring the hearing of the inci"ent is not conclusie or co%plete for only aAsa%plingA is nee"e" to gie the trial court an i"ea of the /ustification for the preli%inary in/unctionpen"ing the "ecision of the case on the %erits!E*FThere are ital facts that hae yet to be presente""uring the trial (hich %ay not be obtaine" or presente" "uring the hearing on the application for thein/unctie (rit!E)F&oreoer, the =uantu% of ei"ence re=uire" for one is "ifferent fro% that for theother!E+F

HEREFORE,the petitions are ENIE! -ccor"ingly, the uly ), +**) Decision an" 5ebruary +),+**+ Resolution of the Court of -ppeals in C-93!R! SP No!


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Baguio City

#N B-NC

G.R. No. 120 April 20, 2010

ATTB. SBL!IA 8ANA, #$ *l.,Petitioners,s!EUARO R. ERMITA, i% i )*p*)i$7 * E#)+$i'# S#)r#$*r7, T# ir#)$or G#%#r*l o& $#Pilippi%# I%&or-*$io% A/#%)7 *% T# N*$io%*l Tr#*+r#r,Respon"ents!

D # C I S I O N

LEONAROE CASTRO, J.:

Ori/i%*l A)$io% &il# (i$ $# SC &orP#$i$io% &or 8ertiorari *% proii$io% )*ll#%/i%/ $#)o%$i$+$io%*li$7 o& E#)+$i'# Or#r No. >;i+# 7 Pr#i#%$ Glori* M*)*p*/*l Arro7oPr#i#%$ Arro7o3.Petitioners characteri2e their action as * )l* +i$file" on their o(n behalfan" on behalf of all their co9e%ployees at the National Printing Office 0NPO1!

The NPO (as for%e" on uly +@, );?:, "uring the ter% of for%er Presi"ent Cora2on C! -=uino0Presi"ent -=uino1, by irtue of #'ecutie Or"er No! +?@)(hich proi"e", a%ong others, thecreation of the NPO fro% the %erger of the 3oern%ent Printing Office an" the releant printingunits of the Philippine Infor%ation -gency 0PI-1! Section < of #'ecutie Or"er No! +?@ rea"s$

S#CTION

. Pri%$i%/ o& o&&i)i*l *llo$=

). Pri%$i%/ o& p+li) o)+-#%$ +) * $# O&&i)i*l G*#$$#, G#%#r*l Appropri*$io%A)$, Pilippi%# R#por$, *% #'#lop-#%$ i%&or-*$io% -*$#ri*l o& $# Pilippi%#I%&or-*$io% A/#%)7.

The Office %ay also accept other goern%ent printing /obs, inclu"ing goern%ent publications, asi"efro% those enu%erate" aboe, but not in an e'clusie basis!

The "etails of the organi2ation, po(ers, functions, authorities, an" relate" %anage%ent aspects ofthe Office shall be proi"e" in the i%ple%enting "etails (hich shall be prepare" an" pro%ulgate" inaccor"ance (ith Section II of this #'ecutie Or"er!

The Office shall be attache" to the Philippine Infor%ation -gency!
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!ERB IMPORTANT


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In &athay ! The Consoli"ate" Ban. an" Trust Co%pany,the Court hel" that$

!ERB IMPORTANT< H#r#, $# p#$i$io% &*il# $o $*$# $# %+-#r o& NPO #-plo7## (o(o+l # *&)$# 7 $# **il# E#)+$i'# Or#r *% (o (#r# *ll#/#l7 r#pr##%$# 7p#$i$io%#r.It (as the Solicitor 3eneral, as counsel for respon"ents, (ho pointe" out that there(ere about @8; e%ployees in the NPO!8The


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&anila

THIR I!ISION

G.R. No. 1042 *%+*r7 >1, 200

CAPITOLINA !I!ERO NAPERE, petitioner,s!AMANO 8AR8ARONA *% GER!ACIA MONAS 8AR8ARONA,respon"ents!

R E S O L U T I O N

NACHURA, J. #ursuant to >7ection 8/ Rule = of the 8< Rules

of Civil 6rocedureA!

Ti %o$i&i)*$io%, *l$o+/ &il# l*$#, #&)$i'#l7 i%&or-# $# lo(#r )o+r$ o& $# #*$ o&li$i/*%$ o#&* M*/l**%/ o * $o &r## #r )o+%#l o& *%7 li*ili$7 &or &*il+r# $o -*?# * r#por$o& #*$ +%#r S#)$io% 1, R+l# > o& $# R+l# o& Co+r$.In our ie(, counsel satisfactorilye'plaine" to the lo(er court the circu%stances of the late reporting, an" the latter in fact grante"counsel an e'ten"e" perio"! T# $i-#li%# o& $# r#por$ i $#r#&or# * %o%i+#!

ISSUE< #$#r or %o$ )o+%#l prop#rl7 /*'# $# )o+r$ $# %*-# *% *r# o& $# l#/*lr#pr##%$*$i'# o& $# #)#*# $*$ S#)$io% 1, R+l# > p#)i&i#.

SC RULING


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relationship has ter%inate"! The fact that the allege" transfer %ay hae actually ta.en place isi%%aterial to this conclusion, if only for the reason that it is not for counsel, after the "eath of hisclient, to %a.e such %anifestation because he then has lost the authority to spea. for an" bin" hisclient! T+, *$ -o$, $# p#$i$io%#r )*% # *i $o # * $r*%r##pendente lite(o# $*$+i p#%i%/ (i$ $# lo(#r )o+r$.

'astly, a close e'a%ination of the "ocu%ents attache" to the recor"s "isclose that the sub/ect %atterof the Juitclai% allege"ly e'ecute" by osefa in faor of Re%is%un"o is 6ot )++*9#, (hile thesub/ect %atter of the "ee" of sale e'ecute" by Re%is%un"o in the petitioners faor is 6ot )++*9D!This circu%stance alone raises the possibility that there is %ore than %eets the eye in thetransactions relate" to this case!

). T# H#ir * L#/*l R#pr##%$*$i'#.

The C- correctly har.e" bac. to the plain ter%s of Section )e li.e(ise sai" in Gochan v. Qoung$ +

5or the protection of the interests of the "ece"ent, this Court has in preious instances recogni2e"the heirs as proper representaties of the "ece"ent, een (hen there is alrea"y an a"%inistratorappointe" by the court! >hen no a"%inistrator has been appointe", as in this case, there is all the%ore reason to recogni2e the heirs as the proper representaties of the "ecease"!

o#&*J #*$ )#r$i&i)*$#24o( $*$ # (* i%/l# *$ $# $i-# o& #r #*$. T# r#)or o%o$ o( $*$ # l#&$ * (ill. T#r#&or#, * )orr#)$l7 #l 7 $# CA, i% *ppl7i%/ S#)$io% 1,R+l# >, #r #ir *r# #r +r'i'i%/ i$#r Mi)*#li, M*ri*, "oi-*, *% Co%ol*)io%3 *%$# )ilr#% o& #r #)#*# i$#r, Lo+r# M*%+#l, C#*r, H+ro *% R#/+lo3 (o o+l# #r l#/*l r#pr##%$*$i'#. M#%#%#, *l$o+/ *lo * i$#r, o+l # #)l+# &or #i%/o%# o& $# *'#r# p*r$i# i% $# )*# #&or# $# RTC.

HEREFORE, pre%ises consi"ere", (e ENBthe petition for lac. of %erit! >e AFFIRMthe Court

of -ppeals "ecision that the suriing heirs of the "ecease" osefa 9 na%ely &ichaelis &! Ro"rigo&aria &! Cecilio osi%a D! &aglasang Consolacion &! Bag9a( an" the chil"ren of 6our"es &!6u%apas, na%ely &anuel 6u%apas, Cesar 6u%apas, Huros 6u%apas an" Regulo &a=uilan 9shoul" be her substitutes an" are hereby so or"ere" to be substitute" for her in Ciil Case Nos! B9)+; an" B9)+?)!

Costs against the petitioner!
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SO ORERE!


&anila

S#COND DIVISION

G.R. No. 1;>292 S#p$#-#r 1, 2010

MEMORACION ". CRU", r#pr##%$# 7 EGARO ". CRU",Petitioner,s!OSALO ". CRU",Respon"ent!

D # C I S I O N

CARPIO, J.:

T# C*#

R8@ petition to annul "ecision of C- (hich affir%e" (ith %o"ification the Or"er of the &anila RTC!

FACTSe fin" the appeal %eritorious!

The Petition for -nnul%ent of Sale, Reconeyancean" Da%ages surie" the "eath of petitioner

The criterion for "eter%ining (hether an action suries the "eath of a petitioner (as eluci"ate" inBonilla ! Barcena,:to (it$

The =uestion as to (hether an action suries or not "epen"s on the nature of the action an" the"a%age sue" for! I% $# )*+# o& *)$io% (i) +r'i'#, $# (ro%/ )o-pl*i%# o& *&)$
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pri-*ril7 *% pri%)ip*ll7 prop#r$7 *% prop#r$7 ri/$, $# i%+ri# $o $# p#ro% #i%/ -#r#l7i%)i#%$*l.

O% $# o$#r *%, i% $# )*+# o& *)$io% (i) o %o$ +r'i'#, $# i%+r7 )o-pl*i%# o& i$o $# p#ro%, $# prop#r$7 *% ri/$ o& prop#r$7 *&)$# #i%/ i%)i#%$*l .

I& $# )*# *&)$ pri-*ril7 *% pri%)ip*ll7 prop#r$7 *% prop#r$7 ri/$, $#% i$ +r'i'# $##*$ o& $# pl*i%$i&& or p#$i$io%#r!

The instant case for annul%ent of sale of real property %erits surial "espite the "eath of petitioner&e%oracion ! Cru2!

The C- erre" in affir%ing RTC7s "is%issal of thePetition for -nnul%ent of Dee" of Sale,Reconeyance an" Da%ages

#% * p*r$7 i# +ri%/ $# p#%#%)7 o& * )*#, S#)$io% 1, R+l# > o& $# 199; R#'i#R+l# o& Ci'il Pro)#+r# %#)#*ril7 *ppli#,viz$

Sec! )

The court shall forth(ith or"er sai" legal representatie or representaties to appear an" be

substitute" (ithin a perio" of thirty 0*1 "ays fro% notice!

If no legal representatie is na%e" by the counsel for the "ecease" party, or if the one sona%e" shall fail to appear (ithin the specifie" perio", the court %ay or"er the opposingparty, (ithin a specifie" ti%e, to procure the appoint%ent of an e'ecutor or a"%inistrator forthe estate of the "ecease" an" the latter shall i%%e"iately appear for an" on behalf of the"ecease"! The court charges in procuring such appoint%ent, if "efraye" by the opposingparty, %ay be recoere" as costs!

In the instant case, petitioner 0plaintiff1 &e%oracion ! Cru2 "ie" on * October );;

On +8 anuary );;:, respon"ent 0"efen"ant1 Os(al"o ! Cru2 %oe" to "is%iss the case allegingthat it "i" not surie &e%oracion7s "eath! The RTC grante" the %otion to "is%iss in the assaile"Or"er "ate" + une );;:!

# r+l# $*$ i$ (* #rror &or $# RTC $o i-i $# )*#.-s %entione" earlier, the petition forannul%ent of "ee" of sale inoles property an" property rights, an" hence, suries the "eath ofpetitioner &e%oracion! T# RTC (* i%&or-#, *l#i$ #l*$#l7,1>o& $# #*$ o& M#-or*)io%,*% (* +ppli# (i$ $# %*-# *% *r# o& #r l#/*l r#pr##%$*$i'#, E/*ro Cr+ !
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*$ $# RTC )o+l *'# o%# (* $o r#@+ir# E/*ro Cr+ $o *pp#*r i% )o+r$ *% +$i$+$#M#-or*)io% * p*r$7 $o $# p#%i%/ )*#, p+r+*%$ $o S#)$io% 1, R+l# > o& $# 199; R#'i#R+l# o& Ci'il Pro)#+r#, *% #$*li# +ripr+#%)#.

>e note that on ): October );;:, #"gar"o Cru2 file" (ith the RTC a &anifestation, stating that he isretaining the serices of -tty! Roberto T! Neri! >e =uote$ )8

Consistent (ith our ruling in Heirs of Haberer v. Court of A##eals,)@(e consi"er such &anifestation,signe" by &e%oracion7s heir, #"gar"o Cru2, an" retaining -tty! Neri7s serices as counsel, * formalsubstitution o& #)#*# M#-or*)io% 7 #r #ir, E/*ro Cr+. I$ *lo %## -#%$io% $*$O(*lo Cr+, *l$o+/ *lo *% #ir o& M#-or*)io%, o+l # #)l+# * * l#/*lr#pr##%$*$i'# i% $# )*# &or #i%/ *% *'#r# p*r$7 $#r#i%.1
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&anila

SECON I!ISION

G.R. No. 141>> O)$o#r , 200

HERITAGE PARK MANAGEMENT CORPORATION,petitioners,s!CONSTRUCTION INUSTRB AR8ITRATION COMMISSION *% ELPIIO UB, oi%/ +i%#+%#r %*-# *% $7l# o& EISON E!ELOPMENT AN CONSTRUCTION,respon"ents!

E C I S I O N

!ELASCO, R., J.5 O)$o#r >0, 200

SPOUSES ANTONIO F. ALGURA *% LORENCITA S.. ALGURA,petitioners,s!THE LOCAL GO!ERNMENT UNIT OF THE CITB OF NAGA, ATTB. MANUEL TEOON, ENGR.LEON PALMIANO, NATHAN SERGIO *% 8ENAMIN NA!ARRO, SR.,respon"ents!

D # C I S I O N

!ELASCO, R., J.ith the loss of the rentals, the %eager inco%e fro% 6orencita -lguras sari5sari storean" -ntonio

-lguras s%all ta.e ho%e pay beca%e insufficient for the e'penses of the -lgura spouses an" theirsi' 0


76/82

by the assessors office of Naga City! &ore so, accor"ing to her, the %eager net inco%e fro% hers%all sari9sari store an" the rentals of so%e boar"ers, plus the salary of her husban", (ere notenough to pay the fa%ilys basic necessities!

To buttress their position as =ualifie" in"igent litigants, petitioners also sub%itte" the affi"ait of#rlin"a Bangate, (ho atteste" un"er oath, that she personally .ne( spouses -ntonio -lgura an"

6orencita -lgura, (ho (ere her neighbors that they "erie" substantial inco%e fro% their boar"ersthat they lost sai" inco%e fro% their boar"ers rentals (hen the 6ocal 3oern%ent nit of the City ofNaga, through its officers, "e%olishe" part of their house because fro% that ti%e, only a fe(boar"ers coul" be acco%%o"ate" that the inco%e fro% the s%all store, the boar"ers, an" the%eager salary of -ntonio -lgura (ere insufficient for their basic necessities li.e foo" an" clothing,consi"ering that the -lgura spouses ha" si' 0


77/82

On uly );, );?8, the Court, in -"%inistratie &atter No! ?9


78/82

On &arch ), +***, Rule )8) on 6egal 5ees (as a%en"e" by the Court in -!&! No! **9+9*)9SC,(hereby certain fees (ere increase" or a"/uste"! In this Resolution, the Court a%en"e" Section ), S#)$io% 21 o% $#ir *ppli)*$io% $oli$i/*$# * i%i/#%$ li$i/*%$ ri%/ $o $# &or# $# i+# o% (#$#r * $ri*l )o+r$ * $o *ppl7o$ R+l# 141, S#)$io% 1 *% R+l# >, S#)$io% 21 o% +) *ppli)*$io% or o+l $# )o+r$

*ppl7 o%l7 R+l# 141, S#)$io% 1 *% i)*r R+l# >, S#)$io% 21 * *'i%/ ##% +p#r## 7R+l# 141, S#)$io% 1 o% L#/*l F##.

The Court rules that Rule , Section +) an" Rule )8), Section )< 0later a%en"e" as Rule )8),Section )? on &arch ), +*** an" subse=uently a%en"e" by Rule )8), Section ); on -ugust )


81/82

The Court opts to reconcile Rule , Section +) an" Rule )8), Section ); because it is a settle"principle that (hen conflicts are seen bet(een t(o proisions, all efforts %ust be %a"e to har%oni2ethe%! Hence, Aeery statute Eor ruleF %ust be so construe" an" har%oni2e" (ith other statutes EorrulesF as to for% a unifor% syste% of /urispru"ence!A+@

In Manila Ooc3ey Club !nc. v. Court of A##eals, this Court enunciate" that in the interpretation of

see%ingly conflicting la(s, efforts %ust be %a"e to first har%oni2e the%! This Court thus rule"$

Conse=uently, eery statute shoul" be construe" in such a (ay that (ill har%oni2e it (ithe'isting la(s! This principle is e'presse" in the legal %a'i% inter#retare et concordare legeslegibus est o#timus inter#retandi, that is, to interpret an" to "o it in such a (ay as tohar%oni2e la(s (ith la(s is the best %etho" of interpretation!+00,000.003. I& $# $ri*l )o+r$ &i% $*$ $# *ppli)*%$ -##$ $# i%)o-#*% prop#r$7 r#@+ir#-#%$, $# *+$ori$7 $o li$i/*$# * i%i/#%$ li$i/*%$ i *+$o-*$i)*ll7/r*%$# *% $# /r*%$ i * -*$$#r o& ri/$.

Ho(#'#r, i& $# $ri*l )o+r$ &i% $*$ o%# or o$ r#@+ir#-#%$ *'# %o$ ##% -#$, $#% i$(o+l #$ * #*ri%/ $o #%*l# $# *ppli)*%$ $o pro'# $*$ $# *ppli)*%$ * D%o -o%#7 orprop#r$7 +&&i)i#%$ *% *'*il*l# &or &oo, #l$#r *% *i) %#)#i$i# &or i-#l& *% i&*-il7.DIn that hearing, the a"erse party %ay a""uce counterailing ei"ence to "isproe theei"ence presente" by the applicant after (hich the trial court (ill rule on the application "epen"ingon the ei"ence a""uce"! In a""ition, Section +) of Rule also proi"es that the a"erse party %aylater still contest the grant of such authority at any ti%e before /u"g%ent is ren"ere" by the trialcourt, possibly base" on ne(ly "iscoere" ei"ence not obtaine" at the ti%e the application (ashear"! If the court "eter%ines after hearing, that the party "eclare" as an in"igent is in fact a person(ith sufficient inco%e or property, the proper "oc.et an" other la(ful fees shall be assesse" an"collecte" by the cler. of court! If pay%ent is not %a"e (ithin the ti%e fi'e" by the court, e'ecutionshall issue or the pay%ent of prescribe" fees shall be %a"e, (ithout pre/u"ice to such othersanctions as the court %ay i%pose!

The Court conce"es that Rule )8), Section ); proi"es specific stan"ar"s (hile Rule , Section +)"oes not clearly "ra( the li%its of the entitle%ent to the e'e%ption! Qno(ing that the litigants %ayabuse the grant of authority, the trial court %ust use soun" "iscretion an" scrutini2e ei"ence strictly

in granting e'e%ptions, a(are that the applicant has not hur"le" the precise stan"ar"s un"er Rule)8)! The trial court %ust also guar" against abuse an" %isuse of the priilege to litigate as anin"igent litigant to preent the filing of e'orbitant clai%s (hich (oul" other(ise be regulate" by alegal fee re=uire%ent!

T+, $# $ri*l )o+r$ o+l *'# *ppli# R+l# >, S#)$io% 21 $o $# *ppli)*$io% o& $# Al/+r**&$#r $#ir *&&i*'i$ *% +ppor$i%/ o)+-#%$ o(# $*$ p#$i$io%#r i %o$ *$i&7 $#$(i% r#@+ir#-#%$ o% /ro -o%$l7 i%)o-# *% o(%#rip o& r#*l prop#r$7 +%#r R+l# 141.Instea" of "is=ualifying the -lguras as in"igent litigants, the trial court shoul" hae calle" a hearing
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as re=uire" by Rule , Section +) to enable the petitioners to a""uce ei"ence to sho( that they"i"nt hae property an" %oney sufficient an" aailable for foo", shelter, an" basic necessities forthe% an" their fa%ily!+:In that hearing, the respon"ents (oul" hae ha" the right to also presentei"ence to refute the allegations an" ei"ence in support of the application of the petitioners tolitigate as in"igent litigants! Since this Court is not a trier of facts, it (ill hae to re%an" the case tothe trial court to "eter%ine (hether petitioners can be consi"ere" as in"igent litigants using the

stan"ar"s set in Rule , Section +)!

OCTRINE< R#)*pi$+l*$i%/ $# r+l# o% i%i/#%$ li$i/*%$, $#r#&or#, i& $# *ppli)*%$ &or##-p$io% -##$ $# *l*r7 *% prop#r$7 r#@+ir#-#%$ +%#r S#)$io% 19 o& R+l# 141, $#% $#/r*%$ o& $# *ppli)*$io% i -*%*$or7.

O% $# o$#r *%, (#% $# *ppli)*$io% o# %o$ *$i&7 o%# or o$ r#@+ir#-#%$, $#% $#*ppli)*$io% o+l %o$ # #%i# o+$ri/$= i%$#*, $# )o+r$ o+l *ppl7 $# Di%i/#%)7$#$D +%#r S#)$io% 21 o& R+l# > *% +# i$ o+% i)r#$io% i)r#$io%*r73 i% #$#r-i%i%/$# -#ri$ o& $# pr*7#r &or ##-p$io%.

-ccess to /ustice by the i%poerishe" is hel" sacrosanct un"er -rticle III, Section )) of the );?:

Constitution! The -ction Progra% for u"icial Refor%s 0-PR1 itself, initiate" by for%er Chief usticeHilario 3! Dai"e, r!, place" pri%e i%portance on easy access to /ustice by the poor as one of itssi' %a/or co%ponents! 6i.e(ise, the /u"icial philosophy of 'iberty and 6ros#erityof Chief ustice

-rte%io V! Panganiban %a.es it i%peratie that the courts shall not only safeguar" but also enhancethe rights of in"ii"ualsW(hich are consi"ere" sacre" un"er the );?: Constitution! >ithout "oubt,one of the %ost precious rights (hich %ust be shiel"e" an" secure" is the unha%pere" access tothe /ustice syste% by the poor, the un"erpriilege", an" the %arginali2e"!

HEREFORE, the petition is GRANTEan" the -pril )8, +*** Or"er granting the "is=ualification ofpetitioners, the uly ):, +*** Or"er "enying petitioners &otion for Reconsi"eration, an" theSepte%ber )), +**) Or"er "is%issing the case in Ciil Case No! RTC9;;988* before the Naga CityRTC, Branch +: are ANNULLEan"SET ASIE! 5urther%ore, the Naga City RTC is or"ere" to setthe A1+56arte&otion to 6itigate as In"igent 6itigantsA for hearing an" apply Rule , Section +) of the

);;: Rules of Ciil Proce"ure to "eter%ine (hether petitioners can =ualify as in"igent litigants!

No costs!

SO ORERE.
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