Title
Genova vs. De Castro
Case
G.R. No. 132076
Decision Date
Jul 22, 2003
A property ownership dispute in the Philippines leads to a compromise agreement, but the petitioner fails to make the required payment, resulting in a motion for a writ of execution and a refund ordered by the Supreme Court based on equitable grounds.
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Case Digest (G.R. No. 132076)

Facts:

  • Roberto U. Genova owned land in Sta. Ana, Manila, registered under TCT No. 172539.
  • In 1989, Genova borrowed P1,000,000.00 from Levita De Castro, securing the loan with a mortgage on the property.
  • Genova defaulted on a prior loan from United Coconut Planters Bank (UCPB), leading to foreclosure.
  • De Castro redeemed the property from UCPB and obtained a new title (TCT No. 194123) through a deed of sale, which was improperly executed as Genova intended only to sign a mortgage.
  • Genova filed for reformation of contract, reconveyance, and damages against De Castro, resulting in a compromise agreement approved by the Regional Trial Court on June 8, 1992.
  • Genova was to repurchase the property for P3,332,196.59 but only paid P2,287,000.00 within the four-month period.
  • De Castro moved for a writ of execution to enforce the agreement after Genova failed to pay the remaining balance.
  • The trial court initially denied De Castro's motion, but the Court of Appeals later granted it, leading Genova to appeal to the Supreme Court.

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court partly granted the consolidated petitions.
  • It affirmed the Court of Appeals' decision in CA-G.R. SP No. 41521, reversing the Regional Trial Court's dismissal of the unlawful detainer case.
  • The decision in CA-G.R. SP No. 48422 wa...(Unlock)

Ratio:

  • A compromise agreement is binding and has the force of law unless consent is vitiated.
  • Genova's failure to pay the full amount within the stipulated period allowed De Castro to seek a writ of execution for ejectment.
  • The Court rejected Genova's argument that he could pay af...continue reading

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