Title
Bisaya Land Transportation Co. vs. Cuenco
Case
G.R. No. L-18173
Decision Date
Apr 22, 1968
A quo warranto case against BLTCI led to a cross-claim by stockholder Miguel Cuenco, who filed a lis pendens on corporate properties. The Supreme Court ruled the lis pendens improper, as the case did not directly affect title or possession.

Case Digest (G.R. No. L-18173)

Facts:

Bisaya Land Transportation Company, Inc. v. Miguel Cuenco, G.R. No. L-18173, April 22, 1968, Supreme Court (Makalintal, J., writing for the Court; Reyes, J.B.L., [Acting C.J.], Dizon, Bengzon, J.P., Zaldivar, Sanchez, and Angeles, JJ., concurring). The Solicitor General filed in 1959 a petition for quo warranto in the Court of First Instance of Manila (Special Civil Case No. 39766) seeking the forcible dissolution of Bisaya Land Transportation Co., Inc. on grounds of acts amounting to forfeiture of its franchise; the corporation’s officers (including Miguel Cuenco) were impleaded and the petition sought, among other relief, appointment of a receiver.

Respondent Miguel Cuenco answered individually, admitted some corporate wrongdoing insofar as it concerned the corporation but denied personal participation, joined the prayer for dissolution and, separately, filed an eighteen-count cross-claim in his capacity as a bona fide stockholder and director for the benefit of the corporation. On his cross-claim he sought recovery and reimbursement from certain individual directors for alleged fraudulent diversion of funds to the corporation’s detriment.

On August 31, 1959, Miguel Cuenco recorded a notice of lis pendens in the Register of Deeds for the City of Cebu affecting two registered titles (Nos. 4293 and 3425) covering corporate real properties. The corporation petitioned the Court of First Instance of Cebu for cancellation of that notation; after hearing, the trial court (Hon. Jose S. Rodriguez) rendered a decision dated September 29, 1960 ordering cancellation of the lis pendens as irregular and unwarranted. Miguel Cuenco appealed that cancellation to the Supreme Court — the present appeal challenging the trial court’s annulment of the lis pendens.

The parties and the Court below argued under Rule 14, Section 24 (formerly Rule 7), of the Rules of Court and Section 79 of the Land Registration Act about whether the action then pending (a quo warranto fo...(Pro-only)

Issues:

  • Was the notation of lis pendens filed by Miguel Cuenco proper under Rule 14, Section 24 of the Rules of Court and Section 79 of the Land Registration Act?
  • Is the Court’s decision distinguishable from Register of Deeds v. Magdalena Estate, Inc., G.R. No. L-9102 (May 22, 1959), such that that precedent does not c...(Pro-only)

Ruling:

  • (Pro-only)

Ratio:

  • (Pro-only)

Doctrine:

  • (Pro-only)

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