Title
Gloria vs. Builders Savings and Loan Association, Inc.
Case
G.R. No. 202324
Decision Date
Jun 4, 2018
Spouses Gloria’s heirs alleged fraud, forgery, and simulation in a mortgage transaction involving their property, leading to foreclosure. The Supreme Court annulled the mortgage, upheld Lourdes’ standing as co-owner, and ruled the documents void due to forgery and fraud.

Case Digest (G.R. No. 88013)
Expanded Legal Reasoning Model

Facts:

  • Ownership and Succession
    • Spouses Juan and Conchita Gloria are registered owners of a parcel of land in Kamuning, Quezon City (TCT No. 35814).
    • Juan Gloria died on August 14, 1987, leaving their daughter Maria Lourdes Gloria-Payduan as compulsory heir.
  • Transaction and Litigation
    • In June 1988, Benildo Biag offered to “reconstitute” TCT No. 35814, obtained the original title from petitioners, but instead mortgaged the property to Builders Savings and Loan Association, Inc.
    • Biag secured Conchita’s and a forged Juan’s signatures on a promissory note (June 28, 2001) and mortgage deed (June 26, 2001), without proper notarization; the property was foreclosed and sold to Builders Savings.
    • On December 7, 1993, Conchita and Lourdes filed a Second Amended Complaint in RTC Civil Case No. Q-93-16621 for:
      • Declaration of nullity of the mortgage and promissory note;
      • Cancellation of annotations in TCT No. 35814;
      • Return of the title;
      • Moral, exemplary, actual damages, attorney’s fees and costs.
  • RTC and CA Proceedings
    • RTC Branch 224 Decision (Sep. 26, 2003) dismissed the complaint for lack of merit; Counterclaims dismissed.
    • RTC Reconsideration Order (Mar. 12, 2004) granted plaintiffs’ motion, declaring the mortgage and note void, ordering cancellation of encumbrances, return of TCT, and awarding ₱200,000 moral damages and ₱20,000 attorney’s fees.
    • CA Decision (Mar. 13, 2012) reversed the RTC, dismissing the Complaint on grounds of:
      • Maria Lourdes not a real party in interest;
      • Defective verification and missing certification against forum shopping;
      • Reliance on hearsay testimony.
    • CA Resolution (June 18, 2012) denied reconsideration, prompting the present petition for review on certiorari.

Issues:

  • Whether Maria Lourdes Gloria-Payduan, as co-owner by succession, is a real party in interest to annul the mortgage.
  • Whether the CA correctly entertained and based dismissal on defects in the amended complaint’s verification and certification against forum shopping.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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