Title
Ernesto Oppen, Inc. vs. Compas
Case
G.R. No. 203969
Decision Date
Oct 21, 2015
Dispute over Las Piñas land titles between EOI and Compas; RTC jurisdiction upheld under P.D. No. 1529, improper venue waived by EOI.

Case Digest (G.R. No. 126703)
Expanded Legal Reasoning Model

Facts:

  • Procedural and Contextual Background
    • Ernesto Oppen, Inc. (EOI) initiated a petition for review on certiorari seeking to reverse the Court of Appeals’ decisions denying its motions to dismiss.
    • The petition targeted the June 29, 2012 Decision and the October 1, 2012 Resolution of the Court of Appeals, which upheld the Regional Trial Court’s (RTC) orders.
    • EOI’s prior motions included a second motion to dismiss the amended petition for failure to state a cause of action and one for reconsideration, both denied by RTC-Las PiAas.
    • The central dispute arose over two parcels of land in Las PiAas City, each comprising 11,452 square meters, originally registered in the name of the Philippine Merchant Marine School, Inc. (PMMSI).
  • Property and Title History
    • The properties were covered by Transfer Certificate of Title (TCT) Nos. S-100612 and S-100613.
    • On May 21, 1984, these properties were levied upon by virtue of the decision rendered by the Metropolitan Trial Court (MeTC), Branch 7, Manila in Civil Case No. 098646-CV involving a compromise agreement between Manufacturers Building, Inc. (MBI) and PMMSI.
    • Subsequent actions included:
      • Annotation of the Notice of Levy on the titles on August 22, 1986.
      • EOI’s annotation of its lien on TCT No. S-100612 on August 10, 1987, following the issuance of a writ of execution from MeTC-Branch 16 in Civil Case No. 116548.
      • The issuance of a certificate of sale to EOI on October 19, 1987, and its eventual entry on the title on August 24, 1989.
    • The properties were later sold in a public auction where EOI was the highest bidder, culminating in the issuance of a Final Deed of Sale dated September 28, 1990.
    • EOI subsequently filed for the cancellation of PMMSI’s title and the issuance of a new one in its favor.
      • On March 18, 2004, under a writ of execution dated December 9, 2003, EOI obtained TCT No. T-95712, which cancelled the previous title.
  • Petitions, Motions, and Subsequent Legal Proceedings
    • On November 8, 2002, the same properties were sold in another public auction where respondent Alberto Compas emerged as the winning bidder.
      • Compas’ sale was annotated on both titles on November 11, 2002, with the Final Deed of Sale issued after PMMSI’s failure to redeem within the redemption period (expired November 11, 2003).
    • Compas later sought cancellation of TCT Nos. S-100612 and S-100613 and the issuance of new titles in his name, leading to filing with RTC-Las PiAas under LRC Case No. LP-05-0089.
      • Following Compas’ amended petition filed on March 3, 2008, EOI filed two separate motions to dismiss:
        • The first motion (filed on July 15, 2009) alleged that the amended petition failed to state a cause of action.
ii. The RTC denied the first motion based on the rationale that Compas was entitled to enforce his lien on EOI’s title. iii. The second motion (filed on May 21, 2010) argued that, pursuant to Section 108 of Presidential Decree (P.D.) No. 1529, proper venue was the court of original registration, not RTC-Las PiAas.
  • The RTC’s orders:
    • On October 7, 2010, RTC-Las PiAas denied EOI’s second motion to dismiss, holding that Section 108 was inapplicable and that jurisdiction was conferred under Section 2 of P.D. No. 1529.
    • On March 4, 2011, the RTC also denied EOI’s motion for reconsideration of its October 7, 2010 order.
  • EOI’s subsequent petition for certiorari before the Court of Appeals (CA) alleged grave abuse of discretion by RTC-Las PiAas.
  • Arguments and Comments by Parties
    • The central contention from EOI:
      • EOI relied on Section 108 of P.D. No. 1529 to claim that jurisdiction should reside with the court where the original registration was docketed (LRC No. N-1238).
      • It argued that because the amended petition involved a post-registration petition, the venue should be shifted accordingly.
    • Respondents’ and Compas’ positions:
      • PMMSI argued that Section 2 of P.D. No. 1529 was applicable since Section 108 only pertains to summary corrections—namely clerical errors—not complex disputes.
      • Compas maintained that as a holder of a superior lien, he faced the risk of EOI’s subordinate lien nullifying his rights, thereby bolstering his claim to a new title.
      • EOI, in its replies, contended that existing encumbrances should remain carried over in subsequent titles as dictated by Section 59 of P.D. No. 1529, and that Compas’s late filing (March 3, 2008) further undermined his argument under Section 108.

Issues:

  • Jurisdiction over the Amended Petition
    • Whether the RTC-Las PiAas had jurisdiction over the amended petition challenged by Compas.
    • Whether Section 108 of P.D. No. 1529, which prescribes the venue for petitions following original registration, was applicable when complex, adversarial issues were raised.
  • Proper Venue and Timeliness of Raising Defenses
    • Whether EOI’s second motion to dismiss, raising the ground of improper venue, was procedurally preserved.
    • The impact of failing to assert all available objections in the initial motion to dismiss (as mandated by the Omnibus Motion Rule and Section 8 of Rule 15 of the Revised Rules of Court).

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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