Case Digest (G.R. No. 231053)
Facts:
Desiderio Dalisay Investments, Inc. v. Social Security System, G.R. No. 231053, April 04, 2018, Supreme Court Third Division, Velasco Jr., J., writing for the Court (Bersamin, Leonen, Martires, and Gesmundo, JJ., concurring).The dispute concerns several parcels (TCT Nos. T-18203, T-18204, T-255986, T-255985; aggregate ~2,450 sq.m.) and an improved building in Agdao, Davao City. In 1976 the Social Security System (SSS) instituted collection proceedings before the Social Security Commission (SSC) against members of the Dalisay Group of Companies (DGC) for unremitted SSS contributions. Over the years the Dalisay group offered the subject property as a dacion en pago to offset indebtedness; initial offers were made in 1977 and again in 1981, with appraisal activity culminating in a May 21, 1982 appraisal of about P1,955,000.
On May 27, 1982, a meeting of the SSS Committee on Buildings, Supplies and Equipment — attended by DGC’s counsel Atty. Honesto Cabarroguis — produced an expressed offer to SSS of P2,000,000 and assurances that the property would be turned over free of liens. The SSC adopted Resolution No. 849 (June 9, 1982) accepting the proposed dacion at P2,000,000; SSS communicated acceptance by letter dated June 17, 1982 setting how the P2,000,000 would be applied and inviting preparation of documents for final transfer. By July–August 1982 DGC representatives informed SSS they would vacate and turn over the property; PNB later executed a Deed of Confirmatory Sale in favor of DDII for reacquired properties (Dec. 29, 1995).
When certificates of title were not delivered, SSS filed an Affidavit of Adverse Claim (Mar. 20, 1998) and demanded the titles (Apr. 2, 1998). DDII responded with letters explaining unresolved issues and later, on October 8, 2002, filed Civil Case No. 29,353-02 in the Regional Trial Court (RTC), Branch 14, Davao City, for quieting of title, recovery of possession and damages, alleging there was never a perfected dacion and asserting counterclaims for back rentals.
The RTC (July 22, 2010) ruled for DDII, holding there was no perfected dacion — characterizing SSS’s communications as a qualified acceptance/counter-offer and finding possession only by tolerance — and awarded possession, monthly use damages and attorney’s fees. The RTC denied reconsideration (Sept. 20, 2010). SSS appealed to the Court of Appeals (CA) which reversed and set aside the RTC decision, finding a perfected dacion en pago consummated by delivery to SSS and ...(Pro-only)
Issues:
- Was there a perfected dacion en pago between Desiderio Dalisay Investments, Inc. (DDII) and SSS?
- Does the fact that the Transfer Certificates of Title remained in DDII’s name indicate the parties were only in the preparatory stage (i.e., no perfected dacion)?
- Had the prescriptive period to file DDII’s quieting action already run or otherwise barred the claim?
- Did DDII’s long inaction amount to lach...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)