Title
Homeowners Savings and Loan Bank vs. Dailo
Case
G.R. No. 153802
Decision Date
Mar 11, 2005
A wife contested a mortgage on conjugal property executed without her consent; the Supreme Court ruled it void, emphasizing spousal consent and rejecting claims of family benefit.

Case Digest (G.R. No. 153802)
Expanded Legal Reasoning Model

Facts:

  • Background and Parties
    • Respondent Miguela C. Dailo and Marcelino Dailo, Jr. were married on August 8, 1967.
    • During their marriage, they purchased a house and lot in Barangay San Francisco, San Pablo City, Laguna, from Sandra Dalida.
    • The property was declared for tax purposes under Assessment of Real Property No. 94-051-2802.
    • The Deed of Absolute Sale was executed solely in favor of the late Marcelino Dailo, Jr., excluding respondent.
  • Loan and Mortgage Transaction
    • On December 1, 1993, Marcelino executed a Special Power of Attorney (SPA) in favor of Lilibeth Gesmundo authorizing her to obtain a loan from Homeowners Savings & Loan Bank.
    • Gesmundo obtained a loan of ₱300,000.00 from petitioner, secured by a Real Estate Mortgage over the subject property.
    • These transactions were conducted without the knowledge or consent of respondent.
  • Default and Foreclosure
    • The loan remained unpaid at maturity.
    • Petitioner initiated extrajudicial foreclosure proceedings on the property, culminating in a Certificate of Sale issued in favor of petitioner as the highest bidder.
    • After one year without redemption, petitioner consolidated ownership by executing an Affidavit of Consolidation of Ownership and a Deed of Absolute Sale on June 6, 1996.
  • Death of Marcelino and Subsequent Events
    • Marcelino died on December 20, 1995.
    • Respondent discovered petitioner had employed Roldan Brion to clean the property and that her Ford sedan was destroyed by fire caused by Brion’s negligence.
    • Respondent filed Civil Case No. SP-2222 (97) to nullify the mortgage, the certificate of sale, affidavit of consolidation, deed of sale, and to seek reconveyance, preliminary injunction, and damages.
  • Trial Court Decision
    • The trial court ruled in favor of respondent, declaring the mortgage and related documents null and void for lack of consent per Article 124 of the Family Code.
    • The court ordered reconveyance of the property to respondent.
    • The court also awarded damages totaling ₱100,000.00 for destruction of respondent’s car, attorney’s fees, moral and exemplary damages, along with costs of suit.
    • Petitioner’s counterclaim was dismissed.
  • Court of Appeals Decision
    • The appellate court affirmed the trial court’s finding that the property was conjugal in nature.
    • The mortgage was declared void for lack of consent of respondent.
    • Petitioner was held liable for damages caused by the acts of its employee, Brion.
    • However, the Court of Appeals deleted the awards for damages and attorney’s fees for lack of basis.
  • Petition to the Supreme Court
    • Petitioner filed a petition for review questioning:
      • The validity of the mortgage as to Marcelino’s undivided share.
      • Whether the conjugal partnership is liable for the loan obtained by Marcelino that allegedly benefited the family.

Issues:

  • Whether the mortgage constituted by the late Marcelino Dailo, Jr. on the conjugal property is valid as to his undivided share without the consent of the spouse.
  • Whether the conjugal partnership is liable for the payment of the loan obtained by Marcelino, given that it allegedly redounded to the benefit of the family.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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