Case Digest (G.R. No. 203946)
Facts:
In Arturo A. Dacquel v. Spouses Ernesto Sotelo and Flora Dacquelasotelo, petitioner Arturo Dacquel, a brother-in-law of respondent Flora Sotelo, purportedly acquired a 350-square-meter lot in Malabon City by a Deed of Sale dated September 1, 1994, for a stated consideration of ₱140,000.00. The parcel originally stood under Transfer Certificate of Title (TCT) No. 738 in the names of the Sotelos, who had begun constructing a seven-door apartment on the land in 1994. Due to budget limitations, they borrowed ₱140,000.00 from Dacquel, agreeing orally that the debt would double to ₱280,000.00 and be settled through rental proceeds of four units. To secure the loan, the Sotelos executed the Deed of Sale and transferred title to Dacquel, who registered it under TCT No. M-10649. By March 2000, after Dacquel allegedly collected ₱280,000.00 in rent, the Sotelos demanded reconveyance. When Dacquel refused, they filed a Complaint for Annulment of Title and Reconveyance on May 29, 2000, beforCase Digest (G.R. No. 203946)
Facts:
- Underlying Transaction
- In 1994, spouses Ernesto and Flora Sotelo (the Sotelos) began constructing a seven-door apartment on their Malabon City land (TCT No. 738).
- Due to budget constraints, they borrowed ₱140,000 from Flora’s brother Arturo Dacquel, agreeing to repay double (₱280,000) from rental income of four units.
- As security, on September 1, 1994, the Sotelos executed a Deed of Sale conveying the lot to Dacquel for ₱140,000; TCT No. 738 was cancelled and TCT No. M-10649 issued in Dacquel’s name.
- Procedural History
- In March 2000, after Dacquel collected ₱280,000, the Sotelos demanded reconveyance; Dacquel refused.
- On May 29, 2000, the Sotelos filed a complaint for annulment of title and reconveyance in RTC, Branch 74, Malabon City.
- RTC (May 27, 2009) denied the complaint for lack of evidence, upholding Dacquel’s title.
- CA (July 12, 2012) reversed, holding the Deed of Sale to be an equitable mortgage, ordering reconveyance and cancellation of TCT M-10649; attorney’s fees of ₱100,000 granted.
- CA denied Dacquel’s motion for reconsideration (Oct 10, 2012).
- Dacquel filed a Rule 45 petition to the Supreme Court.
Issues:
- Whether the September 1, 1994 Deed of Sale is, in truth, an equitable mortgage.
- Whether Dacquel’s registered title should be nullified and reconveyed to the Sotelos.
- Whether the Sotelos are entitled to attorney’s fees.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)