Facts:
Binan Steel Corporation v. Hon. Court of Appeals, Mylene C. Garcia and Myla C. Garcia, G.R. No. 142013 and G.R. No. 148430, October 15, 2002, Supreme Court Third Division, Corona, J., writing for the Court.
On July 22, 1998, Binan Steel Corporation (BSC) filed a complaint for collection with damages against Joenas Metal Corporation and spouses Ng Ley Huat and Leticia Dy Ng in the Regional Trial Court (RTC), Branch 7, Manila (Civil Case No. 98-89831). On July 24, 1998 the trial court issued a Writ of Preliminary Attachment after BSC posted bond; the sheriff levied on July 27, 1998 a 268-sq.m. lot registered in the Ngs’ names (TCT No. 11387) in Quezon City. That levy was annotated in the Registry of Deeds pursuant to the Property Registration Decree.
Prior to annotation, on June 29, 1998 the Ngs executed a deed of sale to Mylene and Myla Garcia; the mortgagee, Far East Bank and Trust Company (now BPI), approved the sale and the Garcias registered the transaction only on August 12, 1998, whereupon TCT No. 11387 was cancelled and TCT No. 194226 in the Garcias’ names was issued; the earlier annotation of the preliminary attachment was transferred to the new title. The Garcias filed a complaint-in-intervention in the Manila RTC on August 28, 1998; the trial court denied it. The trial court rendered default judgment for BSC on April 14, 1999. A Notice of Sale of Execution issued June 14, 1999.
The Garcias filed Civil Case No. 99-36804 in Branch 98, RTC Quezon City seeking cancellation of the notice of levy on TCT No. 194226 and obtained a temporary restraining order (TRO) enjoining the sheriff from conducting the sale. The Manila RTC, however, directed the auction to proceed unless enjoined by the Court of Appeals or Supreme Court. The Garcias petitioned the Court of Appeals (seeking a writ of preliminary injunction) and the CA’s Third Division issued a TRO on August 5, 1999, preventing the scheduled auction. BSC moved to intervene in the CA proceeding on August 16, 1999; the CA First Division denied intervention by resolution dated October 21, 1999 and denied reconsideration on January 31, 2000. BSC sought relief from this Court by a special civil action (G.R. No. 142013) to annul the CA resolutions.
Separately, the Garcias’ petition for injunction filed in the CA was dismissed by the CA Fifteenth Division on February 10, 2000 for forum-shopping; reconsideration was denied May 31, 2001. The Garcias filed a petition for review on certiorari in this Court (G.R. No. 148430). The two petitions were consolidated by the Supreme Court on February 27, 2002.
Meanwhile, despite a later TRO issued by this Court on August 15, 2001 being belated for preventing the auction, the property was publicly au...(Pro-only)
Issues:
- Which party has the superior right to the disputed parcel: Binan Steel Corporation, by virtue of its annotated preliminary attachment and execution sale, or Mylene and Myla Garcia, by virtue of their deed of sale later registered on TCT No. 194226?
- Did Mylene and Myla Garcia violate the rule against forum-shopping by pursuing relief in multiple fora conc...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)