Title
Heirs of Jose Mariano and Helen S. Mariano, represented by Danilo David S. Mariano, et al. vs. City of Naga
Case
G.R. No. 197743
Decision Date
Oct 18, 2022
A dispute over a five-hectare land in Naga City, where the Supreme Court ruled the City acted in bad faith but deemed property return unfeasible. Just compensation, exemplary damages, and attorney's fees were awarded to the petitioners.

Case Digest (G.R. No. 197743)
Expanded Legal Reasoning Model

Facts:

  • Ownership and Deed of Donation
    • The 22.9301-hectare property under TCT No. 671 is registered in the names of Macario A. Mariano and Jose A. Gimenez (registered owners).
    • On July 30, 1954, City Heights Subdivision (CHS), through its officers (including Lopez Jr.) and with the registered owners’ spouses’ marital consent, offered to donate five hectares for the City Hall, plaza, and public market.
    • Municipal Resolution No. 89 (Aug 11, 1954) authorized Mayor Monico Imperial to accept the donation; a Deed of Donation was notarized on August 16, 1954.
  • Dispute over Validity and Possession
    • Petitioners allege the donation was void for failure to comply with the condition that CHS be awarded the construction contract (which was in fact bid out to another contractor).
    • CHS’s general manager and one of the registered owners wrote in 1959 and 1968 to demand return or purchase of the lot, but no sale materialized.
  • Procedural Antecedents
    • September 2003: Petitioners (heirs, as represented by administrator Danilo D. Mariano) demand City of Naga to vacate and return the property.
    • February 12, 2004: Petitioners file Complaint for Unlawful Detainer in MTC-Naga Branch I (Civil Case No. 12334), praying for ejectment, return of possession, and P2.5 million/month in rentals.
    • February 15, 2005: MTC dismisses for lack of jurisdiction.
    • June 20, 2005: RTC-Naga Branch 26 reverses, orders ejectment and payment of rentals.
    • July 20, 2011: CA reverses RTC and reinstates MTC dismissal.
    • March 12, 2018: SC First Division (First Division Decision) grants petitioners’ ejectment, holding the deed void, directs City and all agencies to vacate, pay P1.25 million/month from Nov 30, 2003, and attorney’s fees P75,000.
    • July 23, 2018: First Division denies City’s first motion for reconsideration.
    • November 12, 2019: SC grants City leave to file Second Motion for Reconsideration (2nd MR).

Issues:

  • Did petitioners’ delay amount to laches, barring their claim to possession or compensation?
  • Should the City’s Second Motion for Reconsideration be granted in the higher interest of justice—namely, is payment of just compensation with interest (in lieu of physical recovery) the proper remedy?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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