Case Digest (G.R. No. 142840)
Facts:
In 1974, Pulp and Paper, Inc. (PPI), owner of the Concorde Condominium in Makati City, executed a Master Deed covering two titled lots and organized Concorde Condominium, Inc. (CCI) in 1975 to hold and manage all common areas. Without CCI’s knowledge, PPI consolidated and subdivided the two parcels in 1995–1996, secured separate TCTs Nos. 206284 and 206285, then in 1997 amended the project plan and Master Deed before the HLURB to exclude the uncovered rear parking lot (Lot 2), obtaining TCT No. 208874 unannotated. PPI mortgaged that lot to PNB-International Finance Ltd. (PNB-IFL) for a ₱26.3 million loan; upon default, the lot was sold at auction to Philippine National Bank (PNB) in 1999. In 2000, CCI filed for annulment of title, mortgage, and reconveyance with the HLURB-NCR Field Office, alleging fraud, bad faith and violation of the Condominium Act. The Arbiter upheld HLURB jurisdiction, voided PPI’s amendment and mortgage, ordered cancellation of new titles, reinstatement ofCase Digest (G.R. No. 142840)
Facts:
- Concorde Condominium project and master deed
- Pulp and Paper, Inc. (PPI) developed Concorde Condominium, a 7-storey building in Makati, and on November 4, 1974 executed a master deed covering two parcels (TCT Nos. 351672 & 420504, totaling 2,231 sqm).
- The master deed defined “common areas” (basement, lobby, hallways, structural elements, utilities) and “limited common areas” (covered/uncovered parking) and provided for organization of Concorde Condominium, Inc. (CCI) on January 6, 1975 to hold title and manage common areas.
- Segregation, new titles, and mortgage
- Without CCI’s knowledge or consent, PPI consolidated/subdivided the parcels. LRA Consulta No. 2439 (June 10, 1996) ordered issuance of new TCTs Nos. 206284 (1,225 sqm) and 206285 (1,006 sqm) in PPI’s name, annotated with the master deed.
- PPI secured HLURB clearance (March 25, 1997) to amend the plan/master deed to exclude the uncovered parking (Lot 2) and had the Register of Deeds cancel TCT No. 206285 and issue TCT No. 208874 without annotation.
- On May 23, 1997 PPI mortgaged Lot 2 (TCT No. 208874) to PNB-International Finance Ltd. (PNB-IFL) for ₱26.3 M. Mortgage was foreclosed; PNB acquired certificate of sale September 1, 1999.
- HLURB, OP, and CA proceedings
- CCI sued PPI, PNB-IFL, PNB, and Register of Deeds in HLURB-NCRFO (May 5, 2000) for annulment of title/mortgage and reconveyance. Arbiter (June 5, 2003) affirmed HLURB jurisdiction, found PPI’s plan amendment unlawful but validated mortgage and sale; awarded CCI compensation and damages.
- Following interventions, Arbiter’s December 14, 2005 decision declared TCTs 206284/206285/208874 null and void; reinstated original TCTs 351672/420504 in favor of CCI; voided mortgage and sale; ordered title delivery and awarded exemplary damages.
- HLURB Board (March 17, 2011) and Office of the President (June 14, 2013) affirmed Arbiter’s Dec 2005 decision. CA (Mar 21, 2016) reversed: held HLURB lacked jurisdiction, validated mortgage/sale to PNB-IFL/PNB; dismissed New PPI’s petition; denied reconsideration Nov 21, 2016.
Issues:
- Whether HLURB has jurisdiction over CCI’s complaint for annulment of title and mortgage.
- Whether CA properly dismissed New PPI’s petition for review for failure to exhaust administrative remedies.
- Whether PNB-IFL is a mortgagee in good faith and PNB an innocent purchaser.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)