Title
Bukidnon Doctors' Hospital Inc. vs. Metropolitan Bank and Trust Co.
Case
G.R. No. 161882
Decision Date
Jul 8, 2005
A hospital, after defaulting on a loan, leased foreclosed properties from the bank. The Supreme Court ruled a writ of possession improper, requiring an ejectment suit due to the lease agreement.
A

Case Digest (G.R. No. 161882)

Facts:

  • Loan and Mortgage
    • In 1995, Bukidnon Doctors’ Hospital, Inc. (petitioner) obtained a ₱25 million loan from Metropolitan Bank & Trust Co. (respondent) to construct a hospital.
    • To secure the loan, the petitioner mortgaged six parcels of land in Valencia, Bukidnon, covered by TCT Nos. T-52197 to T-52202, registered in the names of Dr. Rene Sison and Rory P. Roque.
  • Foreclosure and Consolidation of Title
    • Upon default, the mortgage was extrajudicially foreclosed; the respondent, as sole bidder, purchased the properties at public auction.
    • The petitioner failed to redeem within the statutory period; on October 1, 2001, the respondent consolidated ownership and was issued new certificates of title.
  • Lease Negotiations and Contract
    • On July 7, 2001, the petitioner requested to continue occupancy and offered ₱100,000/month rent for at least three years to avoid hospital disruption.
    • On December 17, 2001, the respondent proposed ₱200,000/month, one-month advance, three-month deposit, retroactive effectivity June 2001, and six-month review.
    • By letter dated May 30, 2002, the respondent agreed to ₱150,000/month with effectivity November 2001.
  • Demand to Vacate and RTC Proceedings
    • On July 16, 2003, the respondent demanded vacation within 15 days; the petitioner refused, citing the lease.
    • On August 21, 2003, the respondent filed an ex parte motion for a writ of possession in RTC Malaybalay City (Misc. Case No. 735-03); the court granted the writ on November 17, 2003, and denied reconsideration on January 23, 2004.
    • The petitioner filed a Notice of Appeal on January 29, 2004 (later withdrawn), filed an action for specific performance and damages (Civil Case No. 3312-03), a petition for rehabilitation (Spec. Pro. Case No. 2004-019), and on March 4, 2004, filed a petition for review on certiorari under Rule 45, raising only a legal issue.

Issues:

  • Procedural Questions
    • Whether the petitioner engaged in forum‐shopping by pursuing multiple proceedings.
    • Whether the petitioner waived its right to file a Rule 45 petition by initially filing an appeal under Rule 41.
    • Whether direct recourse to the Supreme Court under Rule 45 was proper, considering the doctrine of hierarchy of courts.
  • Substantive Question
    • Whether a writ of possession under Act 3135, as amended, remains the correct remedy to evict a former mortgagor who has become a lessee after foreclosure and consolidation of title.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster, building context before diving into full texts. AI-powered analysis, always verify critical details.