Case Digest (G.R. No. 216023)
Facts:
Dr. Restituto C. Buenviaje v. Spouses Jovito R. and Lydia B. Salonga, Jebson Holdings Corporation and Ferdinand Juat Banez, G.R. No. 216023, October 05, 2016, the Supreme Court First Division, Perlas‑Bernabe, J., writing for the Court.Petitioner Dr. Restituto C. Buenviaje (Buenviaje) bought Unit 5 of the Brentwoods Tagaytay Villas project from developer Jebson Holdings Corporation (Jebson) by a Contract to Sell dated June 9, 1997; the contract price was P10,500,000, a large portion of which (P7,800,000) was paid through a “swapping arrangement” whereby Buenviaje conveyed a house and lot and a golf share to Jebson, with the balance paid periodically. The project was the subject of a Joint Venture Agreement (JVA) dated May 29, 1997 between Jebson (developer) and landowners Spouses Jovito R. and Lydia B. Salonga (Sps. Salonga), who were to receive three of ten units; the JVA required Jebson to secure permits and required the buyers’ conformity for certain transactions.
After Jebson failed to complete and deliver Unit 5 within the contractual time, Buenviaje filed on May 27, 2002 before the HLURB Regional Field Office IV (HLURB‑RIV) a Complaint for Specific Performance with Damages (and alternatively rescission) against Jebson, its officer Ferdinand Juat Banez, and Sps. Salonga, consolidated with complaints by other buyers. The HLURB‑RIV (Dec. 5, 2002) rescinded the contracts to sell, held respondents solidarily liable, ordered return of swapped properties and reimbursements with 12% interest, and imposed administrative fines for PD 957 violations.
Sps. Salonga appealed to the HLURB Board of Commissioners (HLURB‑BOC). The HLURB‑BOC (Sept. 16, 2004) reversed HLURB‑RIV: it upheld the validity of the contracts to sell, rescinded only the swapping arrangements and ordered return/payment of the swapped properties’ values, fixed six months for completion of several units, and awarded Sps. Salonga moral damages and attorney’s fees against certain complainants. The HLURB‑BOC denied reconsideration (Jan. 25, 2005).
The Office of the President (OP) affirmed the HLURB‑BOC (Nov. 30, 2005). Buenviaje and another buyer petitioned for review before the Court of Appeals (CA); during proceedings, Beliz Realty withdrew its claims against Sps. Salonga. The CA (Nov. 29, 2013) affirmed the OP, sustaining specific performance as the principal relief, upholding rescission only of the swapping arrangements, and accepting the HLURB‑BOC’s finding that Buenviaje connived in diluting cash payments (thus liable for moral damages and attorney’s fees). The CA denied motions for reconsideration (Dec. 15, 2014). Buenviaje filed this Rule 45 petition for review on...(Subscriber-Only)
Issues:
- Was the grant of specific performance to Buenviaje proper under the circumstances, rather than rescission (resolution) of the Contract to Sell?
- Can Sps. Salonga be held solidarily liable with Jebson and Banez for completion and delivery of Unit 5?
- Was the “swapping arrangement” between Buenviaje and Jebson properly rescinded as a fraudulent conveyance?
- Was the award of moral damages and attorney’s fees agains...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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