Case Digest (G.R. No. 229339)
Facts:
Globe Asiatique Realty Holdings Corporation v. Union Bank of the Philippines, G.R. No. 229339, July 29, 2019, Supreme Court Second Division, Reyes, J., writing for the Court.
Petitioner Globe Asiatique Realty Holdings Corporation (Globe Asiatique) sued respondent Union Bank of the Philippines (Union Bank) for reformation of certain documents and damages. The dispute arises from a May 19, 2006 Memorandum of Agreement (MOA) under which Union Bank agreed to purchase, from time to time, installment accounts receivables arising from Globe Asiatique’s sale of condominium units as evidenced by Contracts to Sell.
Between October 30, 2006 and May 30, 2007 Globe Asiatique, through its officers, executed ten Deeds of Assignment (DAs) and eleven Special Powers of Attorney (SPAs) in favor of Union Bank covering specific units in GA Tower 1. The DAs purported to transfer Globe Asiatique’s rights, title and interests “on that parcel of land, and subsequent improvements thereon.” The SPAs empowered Union Bank to, among other things, deliver notices of cancellation, execute Deeds of Absolute Sale transferring title, and restructure or convert assigned Contracts to Sell.
On November 17, 2011 Globe Asiatique requested reformation of the DAs and SPAs, asserting that the documents failed to express the parties’ true agreement—that only receivables, not the land parcels, were to be assigned. When Union Bank did not acquiesce, Globe Asiatique filed a Complaint for reformation on September 27, 2012 invoking Article 1361 of the Civil Code (reformation for mutual mistake) and sought attorney’s fees.
Union Bank, in its Answer dated November 16, 2012, admitted the MOA and that assignment forms accompanied its implementation but denied Globe Asiatique’s allegation of mutual mistake and asserted affirmative defenses: the DAs were executed as security for credit facilities and the Notice of Assignment and Instruction to Pay (NAIP) served as the operative assignment of receivables. Union Bank prayed for dismissal and an award of costs and attorney’s fees.
After pre-trial, Globe Asiatique moved for summary judgment on June 4, 2014; Union Bank opposed on June 20, 2014. The Regional Trial Court (RTC), Branch 265, Pasig City, denied the Motion for Summary Judgment in an Order dated September 2, 2014, finding genuine issues of material fact; its denial of reconsideration was promulgated on April 30, 2015. Globe Asiatique filed a petition for certiorari with the Court of Appeals (CA) on July 31, 2015.
The CA, in a Decision penned by Associate Justice Marlene Gonzales-Sison (with Associate Justices Ramon A. Cruz and Henri Jean Paul B. Inting concurring), dismissed Globe Asiatique’s peti...(Pro-only)
Issues:
- Did the Court of Appeals err in finding that the Regional Trial Court did not commit grave abuse of discretion in denying Globe Asiatique’s Motion for Summary Ju...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)