Title
Central Realty and Development Corp. vs. Solar Resources, Inc.
Case
G.R. No. 229408
Decision Date
Nov 9, 2020
PNB sold land to Central; Molina claimed ownership, later sold to Solar. RTC canceled Molina’s claim, Solar filed own claim. SC ruled improper summary judgment, remanded for consolidation.

Case Digest (G.R. No. 111357)

Facts:

  • Property and Initial Sale
    • The Philippine National Bank sold to Central Realty and Development Corporation (Central) by Deed of Sale dated December 15, 1989, a parcel in Binondo, Manila covered by OCT No. 10964 (7,350 sq m).
    • OCT No. 10964 was cancelled and TCT No. 198996 was issued to Central.
    • Central consistently exercised acts of ownership: tax payments, leasing portions, mortgaging, and entering into a September 23, 2011 joint venture with Federal Land, Inc. (Federal Land) for a condominium project (approved by HLURB).
  • Adverse Claims and Competing Litigations
    • May 2010 – Dolores V. Molina caused annotation of an adverse claim on TCT No. 198996, alleging a 1993 sale by Central.
    • February 4, 2011 – Central filed Civil Case No. P-11-726/LRC N-86 for cancellation of Molina’s adverse claim (Branch 4, RTC-Manila). April 11, 2014 – Branch 4 ordered cancellation of Molina’s adverse claim, finding it baseless.
    • September 10, 2013 – Molina filed Civil Case No. 13-130626 (Branch 6, RTC-Manila) for specific performance and nullity of mortgage against Central and Federal Land; docketed before Molina’s sale to Solar.
    • December 18, 2013 – Solar Resources, Inc. (Solar) purchased the property from Molina and on June 9, 2014 annotated its own adverse claim on TCT No. 198996.
    • Solar sought substitution in Civil Case No. 13-130626 after Molina’s death; CA later reversed substitution (CA-G.R. SP No. 151032, May 11, 2018).
    • Central then filed Civil Case No. P-14-0163 (Branch 16, RTC-Manila) for cancellation of Solar’s adverse claim, alleging:
      • Lapse of 30-day annotation period;
      • Procedural defect – based on cancelled Molina claim;
      • Baselessness – no valid title in Molina;
      • Solar not an innocent purchaser, allegedly conspiring with Molina.
    • Solar opposed, invoking litis pendentia (ownership issues in Branch 6 case), asserting good faith and distinct adverse claim.
    • Central moved for judgment on the pleadings; Solar moved to dismiss for litis pendentia. Both motions remained pending.
    • February 4, 2016 – Trial court (Branch 16) admitted judicial affidavits from both sides.
    • May 30, 2016 – Trial court issued an omnibus resolution:
      • Denied Central’s motion for judgment on the pleadings (Solar raised affirmative defenses).
      • Denied Solar’s motion to dismiss for litis pendentia (no common cause of action).
      • Rendered summary judgment motu proprio, sustaining Solar’s adverse claim (based on Solar–Molina deed) and dismissing Central’s petition.
    • January 3, 2017 – Motion for partial reconsideration denied.
    • Central filed a Rule 45 petition before the Supreme Court raising pure questions of law and seeking declaration of ownership and consolidation of all related cases.

Issues:

  • Does the petition raise only questions of law, thereby justifying direct resort to the Supreme Court under Rule 45?
  • What are the legal effects of the May 30, 2016 Omnibus Resolution on Central’s petition, Solar’s opposition with motion to dismiss, and Central’s motion for judgment on the pleadings?
  • Can the Supreme Court in this Rule 45 proceeding declare Central as the lawful owner of the property?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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