Case Digest (G.R. No. L-49101)
Facts:
Raoul S.V. Bonnevie and Honesto V. Bonnevie v. The Honorable Court of Appeals and the Philippine Bank of Commerce, G.R. No. L-49101, October 24, 1983, the Supreme Court Second Division, Guerrero, J., writing for the Court.
Petitioner Honesto V. Bonnevie filed a complaint on January 26, 1971 in the Court of First Instance of Rizal against respondent Philippine Bank of Commerce seeking annulment of a Deed of Mortgage dated December 6, 1966 and annulment of an extrajudicial foreclosure consummated by public auction on August 19, 1968. Honesto alleged the mortgage lacked consideration and was executed by one who was not the owner, and that the foreclosure under Act No. 3135 did not comply with statutory conditions; he alternatively prayed for equitable redemption after foreclosure. After Honesto rested his case, his brother Raoul S.V. Bonnevie moved to intervene based on an assignment from Honesto; the intervention was granted.
The bank answered, denying allegations and asserting affirmative defenses including lack of its written consent to the sale-with-assumption, that notices of demand and foreclosure were sent to Jose Lozano at his address, that payments had not been fully made despite renewals, that title remained in Jose Lozano's name in land records, and that customary banking practice permitted third-party payments on accounts. Trial evidence showed: the Lozanos mortgaged the property December 6, 1966; they executed a Deed of Sale with Assumption of Mortgage to Honesto on December 8, 1966; the promissory note was signed December 12, 1966; Honesto paid P18,944.22 to the bank between April 28, 1967 and July 12, 1968; Honesto assigned his rights to Raoul on May 4, 1968; the bank applied for foreclosure June 10, 1968; notices were published June 30, July 7 and July 14, 1968; auction occurred August 19, 1968 and the bank purchased for P84,387.00; the certificate of sale was registered September 2, 1968; Honesto's first written offer to redeem was dated September 29, 1969 and an adverse claim was annotated October 9, 1969.
The Court of First Instance dismissed the complaint on March 29, 1976. The petitioners appealed to the Court of Appeals (CA-G.R. No. 61193-R); the Court of Appeals, Third Division (Reyes, J., ponente), affirmed the trial court in a decision promulgated August 11, 1978 and denied a motion for reconsideration on October 3, 1978. Petitioners filed the present petiti...(Subscriber-Only)
Issues:
- Was the Deed of Mortgage executed by spouses Jose M. Lozano and Josefa P. Lozano in favor of the Philippine Bank of Commerce validly and legally executed?
- Was the extrajudicial foreclosure of that mortgage validly and legally effected under Act No. 3135?
- Did petitioners have a right to redeem the foreclosed property?
- If petitioners had a right to redeem, was the bank justified in refusing their offers to repurchase...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)