Case Digest (G.R. No. 207407)
Facts:
In Heirs of Gregorio Lopez, represented by Rogelia Lopez, et al. v. Development Bank of the Philippines (now Philippine Investment Two (SPV-AMC), Inc.), decided November 19, 2014 under the 1987 Constitution, the subject is a 2,734-sqm property in Bustos, Bulacan originally owned by Gregoria Lopez, who died in 1922 survived by three sons, Teodoro, Francisco, and Carlos. Upon their deaths, only Teodoro left issue—Gregorio, Enrique, Simplicio, and Severino—who became co-owners of equal undivided shares. In 1990, Enrique executed a false affidavit of self-adjudication purporting to be the sole heir, sold the entire property to Marietta Yabut, and, after she obtained Torrens title in 1993, mortgaged it to DBP as security for a loan. Marietta’s possession was annotated with lis pendens after petitioners filed in 1993 for annulment of Enrique’s affidavit, deed of sale, and mortgage, plus reconveyance of their three-fourth share and redemption of Enrique’s undivided one-fourth share. InCase Digest (G.R. No. 207407)
Facts:
- Succession and Ownership
- Gregoria Lopez owned a 2,734-sqm property in Bustos, Bulacan; died March 19, 1922, survived by sons Teodoro, Francisco, and Carlos.
- Sons became co-owners; Teodoro died 1933, survived by children Gregorio, Enrique, Simplicio, and Severino, each entitled to an undivided one-fourth share. Petitioners are heirs of Gregorio and Severino and Simplicio (substituted by his daughter Eliza).
- Transactions and Court Proceedings
- November 29, 1990: Enrique executed a false affidavit of self-adjudication as sole heir and sold the entire property to Marietta Yabut; heirs demanded nullification and sought redemption of Enrique’s one-fourth share.
- 1993–1994: Marietta obtained a loan from DBP, mortgaged the property; original certificate of title (TCT) issued to her July 26, 1993; supplemental mortgage annotation dated February 28, 1995. Heirs filed suit for annulment of affidavit, sale, mortgage, reconveyance of their shares, and annotated a lis pendens.
- 1996: DBP foreclosed for nonpayment; certificate of sale registered September 11, 1996; title consolidated in DBP’s favor.
- December 27, 2005: RTC nullified Enrique’s affidavit and sale beyond his one-fourth share, declared Marietta not an innocent purchaser and DBP not a mortgagee in good faith, ordered reconveyance to heirs and annulment of mortgage.
- May 8, 2009 & August 16, 2010: CA reversed RTC as to DBP, held DBP an innocent mortgagee for value; petitioners’ motion for reconsideration denied.
- October 15, 2010: Petitioners filed this Rule 45 petition before the Supreme Court.
Issues:
- Whether Enrique’s affidavit of self-adjudication and subsequent sale to Marietta validly transferred the property.
- Whether DBP, as mortgagee and later purchaser, is entitled to the protection of an innocent mortgagee for value, thereby validating the mortgage and foreclosure sale.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)