Title
Claudio vs. Spouses Saraza
Case
G.R. No. 213286
Decision Date
Aug 26, 2015
Petitioners sought annulment of forged deed and mortgage; SC ruled Spouses Saraza not mortgagees in good faith due to lack of valid title and failure to verify ownership.

Case Digest (G.R. No. 213286)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case:
    • The case originated from Civil Case No. 04-0661-CFM, filed by petitioners Mamerta Lopez Claudio, Eduardo L. Claudio, Asuncion Claudio-Contegino, Ana Claudio-Isulat, Dolores Claudio-Mabini, and Fermin L. Claudio against respondents Florentino Claudio and Spouses Federico and Norma Saraza.
    • The petitioners sought the annulment of a deed of absolute sale, power of attorney, and real estate mortgage involving a property covered by Transfer Certificate of Title (TCT) No. 142989 in Pasay City.
  • Allegations of the Petitioners:
    • The petitioners claimed that Porfirio Claudio (deceased) and Mamerta Claudio acquired the subject property during their marriage.
    • Florentino Claudio allegedly forged the signatures of Porfirio and Mamerta in a deed of absolute sale dated October 2003, purportedly selling the property to him for P500,000.00.
    • The petitioners also alleged that the signatures of Fermin and Asuncion, who purportedly consented to the sale, were forged.
    • Florentino subsequently mortgaged the property to Spouses Saraza on June 22, 2004, to secure a loan of P1,000,000.00.
    • The petitioners argued that Spouses Saraza were mortgagees in bad faith because they knew Porfirio was deceased and Mamerta was in the U.S. at the time of the alleged sale.
  • Procedural History:
    • The Regional Trial Court (RTC) denied Spouses Saraza’s motion to dismiss.
    • After the petitioners presented their evidence, Spouses Saraza filed a demurrer to evidence, which the RTC granted, dismissing the case without prejudice.
    • The Court of Appeals (CA) affirmed the RTC’s decision, ruling that Spouses Saraza were mortgagees in good faith who relied on TCT No. 145979 issued in Florentino’s name.

Issues:

  • Whether the CA erred in ruling that Spouses Saraza were mortgagees in good faith despite the mortgage being executed before Florentino obtained title to the property.
  • Whether the CA erred in finding that the deed of absolute sale executed on June 10, 2004, validated the mortgage.
  • Whether the CA erred in ruling that Spouses Saraza were not required to look beyond the certificate of title.
  • Whether the CA erred in finding that Spouses Saraza were mortgagees in good faith because the mortgage was registered shortly after execution.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court reversed the CA’s decision, reinstated the case, and remanded it to the RTC for further proceedings. The Court emphasized that Spouses Saraza were not mortgagees in good faith and that the petitioners’ evidence warranted a trial on the merits.

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