Case Digest (G.R. No. 85448)
Facts:
The case involves Banco de Oro Savings and Mortgage Bank (the petitioner) and spouses Abelardo and Alegria Nery (the respondents). The events leading to this case began on October 30, 1978, when the Bank granted a loan of Four Hundred Thousand Pesos (₱400,000.00) to the Nerys for the construction of a two-story building, secured by a real estate mortgage. Due to the Nerys' failure to pay the amortizations, the mortgaged property was sold at public auction on February 16, 1982, with the Bank as the highest bidder. The Bank consolidated its title to the property on November 27, 1983, after the Nerys failed to redeem it within the reglementary period, resulting in the issuance of Transfer Certificate of Title No. 74529 in the Bank's name.
Despite the Bank's ownership, the Nerys did not vacate the premises. They requested additional time to repurchase the property and agreed to pay monthly rentals for their continued occupation, claiming they had tenants in the buil...
Case Digest (G.R. No. 85448)
Facts:
Loan and Mortgage Agreement
- On 30 October 1978, Banco de Oro Savings and Mortgage Bank (the Bank) granted a loan of P400,000.00 to spouses Abelardo and Alegria Nery (the Nerys) for the construction of a two-story building. The loan was secured by a real estate mortgage.
Default and Foreclosure
- The Nerys defaulted on their loan amortizations, leading to the foreclosure of the mortgaged property. The property was sold at public auction on 16 February 1982, with the Bank as the highest bidder.
Consolidation of Title
- On 27 November 1983, the Bank consolidated title to the property after the Nerys failed to redeem it within the reglementary period. TCT No. 74529 was issued in the Bank's name.
Refusal to Vacate and Request for Repurchase
- Despite the foreclosure, the Nerys did not vacate the premises. They requested more time to repurchase the property and agreed to pay monthly rentals or reasonable compensation for their continued occupation, citing that they had leased portions of the building to tenants.
Ejectment Suits
- As the Nerys and their tenants neither vacated the property nor paid compensation, the Bank filed three separate ejectment suits on 26 October 1984 before the Metropolitan Trial Court (MTC) of Parañaque.
MTC Decision
- On 11 July 1988, the MTC ruled in favor of the Bank, ordering the Nerys and their tenants to vacate the premises and pay fixed monthly amounts as reasonable compensation. The Nerys sought reconsideration, which was denied.
Execution of MTC Decision
- The MTC granted the Bank's Motion for Immediate Execution after the Nerys failed to appeal or post a supersedeas bond. On 5 September 1988, the Sheriff of Parañaque delivered possession of the property to the Bank.
Petition for Certiorari and Injunction
- The Nerys filed a Petition for Certiorari with the Regional Trial Court (RTC) of Makati, challenging the MTC's jurisdiction and seeking to set aside its judgment. The RTC denied their application for a Writ of Preliminary Injunction.
Appeal to the Court of Appeals
- The Nerys then filed a Petition for Mandamus, Certiorari, and Prohibition with the Court of Appeals, which issued a Temporary Restraining Order and later a Writ of Preliminary Injunction, enjoining the enforcement of the MTC Decision.
Issue:
Propriety of the Ejectment Remedy
- Whether the Bank's filing of ejectment suits was the proper remedy, given that the Nerys' continued occupation was by tolerance or permission.
Jurisdiction of the MTC
- Whether the MTC had jurisdiction over the ejectment suits, considering the Nerys' argument that the suits were filed more than one year after the accrual of the Bank's cause of action.
Finality of the MTC Decision
- Whether the MTC Decision had become final and executory due to the Nerys' failure to appeal.
Legality of the Foreclosure
- Whether the foreclosure was premature and irregular, as alleged by the Nerys.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)