Case Digest (G.R. No. 56515)
Facts:
In Heirs of Josefina Gabriel v. Secundina Cebrero, Celso Laviàa, and Manuel C. Chua, the petitioners are the heirs of the late Josefina Gabriel (Gabriel), and the respondents are Secundina Cebrero (Cebrero), her attorney-in-fact Celso D. Laviàa (Laviàa), and Manuel C. Chua (Chua), President of Progressive Trade & Services Enterprises (Progressive). On January 24, 1991, Cebrero, through Remedios Muyot as her attorney-in-fact, executed a real estate mortgage over a 2,281 sq. m. property in Sampaloc, Manila (TCT No. 158305) to secure her P8,000,000.00 obligation under an amicable settlement dated January 11, 1991 in an annulment case. When Cebrero failed to pay within the extension period (until December 31, 1991), Gabriel foreclosed the mortgage, and on December 15, 1993, the RTC of Manila, Branch 23 ordered Cebrero to pay P8,000,000.00 plus interest and attorney’s fees or face public auction of her undivided share. No appeal was filed, and on July 12, 1994, Gabriel, as sole biddeCase Digest (G.R. No. 56515)
Facts:
- Mortgage and Amicable Settlement (January 1991)
- On January 24, 1991, Secundina M. Cebrero, by her attorney-in-fact Remedios Muyot, executed a real estate mortgage over a 2,281 sq. m. property in Sampaloc, Manila (TCT No. 158305), as security for ₱8,000,000.00.
- The mortgage arose from an amicable settlement (January 11, 1991) in a donation revocation case, wherein Josefina Gabriel acknowledged Cebrero’s absolute ownership and relinquished claims in exchange for the ₱8 million.
- Foreclosure Proceedings and Public Auction (1993–1995)
- Upon default, Gabriel filed foreclosure in 1993 (Civil Case No. 92-62638). On December 15, 1993, RTC Manila Branch 23 ordered Cebrero to pay ₱8,000,000.00 plus interest and fees, or the mortgaged undivided portion of the property would be auctioned.
- No appeal was filed. On July 12, 1994, Gabriel was sole bidder and purchased Cebrero’s ½ conjugal share plus 1/9 inheritance interest for ₱13,690,574.00. The Final Deed of Sale issued November 16, 1995.
- Subsequent Sale, Nullity Complaint, and Appellate History (1994–2016)
- Gabriel discovered a Deed of Absolute Sale (September 27, 1994) by attorney-in-fact Celso Laviña conveying the entire property to Progressive Trade & Services Enterprises (TCT No. 225341). On November 27, 1996, Gabriel (through Eduardo Caniza) filed a complaint for nullity of sale and TCT.
- Gabriel died October 14, 1997; her heirs substituted. RTC Manila Branch 52 (September 26, 2013) declared the sale and TCT null and void. CA (October 20, 2015) reversed, upholding the sale and title. This petition for review on certiorari followed.
Issues:
- Whether the complaint was validly filed given that the certification against forum shopping was signed by an attorney-in-fact without an attached Special Power of Attorney.
- Whether the RTC acquired jurisdiction over the case despite the alleged defect in authorization and the subsequent substitution of heirs.
- Whether a purchaser with notice of an existing mortgage can remain a buyer in good faith and defeat foreclosure rights.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)