Case Digest (G.R. No. 147012)
Facts:
The case involves petitioners Cristino O. Arroyo, Jr. and Sandra R. Arroyo, and respondent Eduardo A. Taduran. The events leading to the case began in 1988 when Eduardo Taduran and Cristino Arroyo, Jr., who are cousins, entered into a verbal agreement to establish a corporation and acquire a suitable office space. Following this agreement, Cristino Arroyo, Jr. purchased a condominium unit from Cityland Development Corporation for P348,718.30. The funds for this purchase were sourced from a loan taken by Arroyo from the Commercial Bank of Manila, which was secured by a time deposit belonging to Taduran. When the loan matured, the bank applied the proceeds from Taduran's time deposit, amounting to P500,000, to settle Arroyo's loan. The title to the condominium was subsequently issued in the names of Cristino and Sandra Arroyo. However, the petitioners failed to meet their financial obligations to Cityland Development Corporation, leading to the extrajudicial foreclosure...
Case Digest (G.R. No. 147012)
Facts:
- Parties and Relationship: Respondent Eduardo Taduran and petitioner Cristino Arroyo, Jr. are cousins.
- Verbal Agreement: In 1988, they entered into a verbal agreement to form a corporation and acquire a suitable office.
- Purchase of Condominium Unit: Pursuant to the agreement, petitioner Cristino Arroyo, Jr. purchased a condominium unit from Cityland Development Corporation for P348,718.30.
- Loan and Guarantee: The purchase was financed through a loan from the Commercial Bank of Manila (now Bank of Commerce), guaranteed by respondent Taduran’s time deposit of P500,000 in the same bank.
- Application of Time Deposit: When the loan matured, respondent Taduran applied his time deposit to pay the loan.
- Title Issued to Petitioners: Title to the condominium unit was issued in the name of petitioner Cristino Arroyo, Jr. and his wife, Sandra Arroyo.
- Foreclosure and Redemption: Petitioners failed to pay certain obligations to Cityland, leading to the extrajudicial foreclosure of the property, which they later redeemed.
- Demand for Reconveyance: Respondent discovered petitioners were using the property and demanded the transfer of title to his name based on their verbal agreement.
- Legal Action: When petitioners refused, respondent filed a complaint for specific performance, reconveyance, and damages in the Makati RTC.
Issue:
- Existence of Agency: Whether a principal-agent relationship existed between respondent Taduran and petitioner Cristino Arroyo, Jr. requiring the transfer of title to the condominium unit.
- Entitlement to Indemnification: Whether respondent Taduran is entitled to indemnification for the P500,000 time deposit applied to the loan of petitioner Cristino Arroyo, Jr.
- Propriety of Relief Granted: Whether the trial court and Court of Appeals erred in ordering indemnification despite the absence of a specific prayer for it in the complaint.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)