Case Digest (G.R. No. 168970) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Celestino Balus v. Saturnino Balus and Leonarda Balus Vda. de Calunod, petitioner Celestino and respondents Saturnino and Leonarda are siblings and compulsory heirs of the late Rufo Balus. On January 3, 1979, Rufo mortgaged a 3.0740-hectare parcel in Lagundang, Bunawan, Iligan City to Rural Bank of Maigo, Lanao del Norte. Unable to pay, Rufo’s land was foreclosed; the Bank became the bidder at the public auction, obtained a Certificate of Sale on November 20, 1981, and, after the redemption period lapsed, a Definite Deed of Sale on January 25, 1984. A new title was then issued in the Bank’s name. In 1989, unaware that title had already passed to the Bank, the siblings executed an Extrajudicial Settlement of Estate allocating to each a one-third share (10,246 sqm) of the property and expressing intent to redeem the land. In 1992 respondents alone bought back the entire lot from the Bank and secured TCT No. T-39,484. Petitioner retained possession of his one-third share. In 199 Case Digest (G.R. No. 168970) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and Succession
- Petitioner Celestino Balus and respondents Saturnino Balus and Leonarda Balus Vda. de Calunod are heirs of spouses Rufo and Sebastiana Balus (d. 1978; Rufo d. 1984).
- No dispute that Rufo owned exclusively the subject land prior to mortgage.
- Mortgage, Foreclosure, Auction and Title Transfer
- On January 3, 1979, Rufo mortgaged a 3.0740-hectare parcel in Lagundang, Bunawan, Iligan City, Original Title No. P-439(788), to Rural Bank of Maigo.
- After default, the property was auctioned; Certificate of Sale to the Bank dated November 20, 1981; no redemption; Definite Deed of Sale executed January 25, 1984; new title issued in Bank’s name before Rufo’s death.
- Extrajudicial Settlement and Repurchase
- On October 10, 1989, heirs executed an Extrajudicial Settlement adjudicating each a one-third share (10,246 sqm) and expressing intent to redeem the property from the Bank.
- On October 12, 1992, respondents purchased entire property from the Bank; Transfer Certificate of Title No. T-39,484(a.f.) issued in their names.
- Petitioner remained in possession after respondents’ purchase.
- Proceedings Below
- June 27, 1995: Respondents filed Complaints for recovery of possession and damages, alleging notice to petitioner of new ownership.
- February 7, 1997: RTC ordered respondents to execute deed of sale for petitioner’s one-third share and deliver consigned P6,733.33; dismissed other claims.
- May 31, 2005: CA reversed, ordering petitioner to surrender possession to respondents, holding co-ownership extinguished upon foreclosure and title transfer.
Issues:
- Main Issue
- Whether co-ownership between petitioner and respondents over the property persisted after foreclosure, title transfer to the Bank, and respondents’ repurchase, such as to entitle petitioner to compel respondents to re-sell or reimburse his one-third share.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)