Case Digest (G.R. No. 138567)
Facts:
Development Bank of the Philippines v. Spouses Wilfredo Gatal and Azucena Gatal, G.R. No. 138567, March 04, 2005, Supreme Court Third Division, Sandoval-Gutierrez, J., writing for the Court.In 1993, respondents Spouses Wilfredo and Azucena Gatal obtained a loan of P1,500,000.00 from petitioner Development Bank of the Philippines (DBP), secured by a real estate mortgage on a commercial lot in Tagbilaran City (TCT No. T-22697). After respondents failed to pay, DBP foreclosed in December 1994 and, in January 1996, the title was consolidated in DBP’s name.
DBP offered the property at public auction on October 29, 1996, but there were no acceptable bids. On November 18, 1996, DBP offered the property for negotiated sale with specified down payment terms. Respondents bid P2,160,000.00 (with a 10% deposit), but another bidder, Jimmy Torrefranca, offered P2,300,000.00 and was declared the preferred bidder; respondents requested to match that offer but DBP refused.
Aggrieved, respondents filed an action for injunction (Civil Case No. 5996) in RTC Branch 4, Tagbilaran City, seeking to void the sale to Torrefranca, to enforce their asserted right of pre-emption, and to maintain the status quo; Branch 4 granted a preliminary injunction on February 22, 1997. Separately, DBP filed a petition for issuance of a writ of possession (Civil Case No. 6097) in RTC Branch 47 on August 27, 1997; Branch 47 issued the writ on October 31, 1997.
Respondents moved in Branch 47 on November 12, 1997 to dismiss Civil Case No. 6097 and to quash the writ of possession, asserting litis pendentia because of Civil Case No. 5996 pending in Branch 4. On December 18, 1997, Branch 47 dismissed Civil Case No. 6097 and recalled the writ on that ground; its denial of DBP’s motion for reconsideration followed in an order dated February 10, 1998.
DBP elevated the matter to the Court of Appeals via a petition for certiorari (CA-G.R. SP No. 47736). On January 18, 1999 the Court of Appeals dismissed the petition, thereby ...(Subscriber-Only)
Issues:
- Did the Court of Appeals err in upholding RTC Branch 47’s dismissal of Civil Case No. 6097 on the ground of litis pendentia?
- Was petitioner DBP entitled to a writ of possession as a matter of right after consolidation of title and in accordance with Section 33, Rule 39 of the Rules of Court and relevant statutes and jurisprudence?
- Did petitioner engage in forum shopping b...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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