Case Digest (G.R. No. 98920)
Facts:
This is Jesus F. Ignacio v. The Hon. Court of Appeals (Former First Division), Renato G. Yalung and Marina T. Yalung, G.R. No. 98920, July 14, 1995, Supreme Court First Division, Quiason, J., writing for the Court.
On December 24, 1987, petitioner Jesus F. Ignacio purchased from respondents Renato G. Yalung and Marina T. Yalung, under a public instrument titled “Deed of Sale Under Pacto de Retro,” a house and lot in Pasig for P1,000,000.00. The property was covered by Transfer Certificate of Title No. 64873 issued the same day. The deed expressly reserved to the vendors (the Yalungs) the right to repurchase within 90 days for the same price plus 5% interest; an additional five-day extension was later granted but the respondents did not redeem within that period.
On April 19, 1988, petitioner filed before the Regional Trial Court, Branch 151, Pasig, acting as a land registration court, a petition for consolidation of ownership (LRC Case No. R-3936), seeking cancellation of TCT No. 64873 and issuance of title in his name. Respondents filed a Manifestation admitting execution of the deed but contended that the parties intended an equitable mortgage to secure a loan rather than a pacto de retro sale, invoked Civil Code provisions on mortgages, asserted unconscionability of interest, and claimed they remained in actual possession; they asked for dismissal or, alternatively, declaration of the deed as equitable mortgage.
After trial (documentary and testimonial evidence, including the testimony of Renato Yalung), the trial court rendered judgment on August 9, 1988, finding the instrument to be a sale with right of repurchase (pacto de retro), consolidating title in favor of petitioner, and ordering cancellation of TCT No. 64873 and issuance of a new transfer certificate to petitioner. Respondents appealed to the Court of Appeals, which, on March 4, 1991 in CA-G.R. CV No. 19047, reversed the trial court, holding that the Regional Trial Court sitting as a land registration court had no jurisdiction over a petition for consolidation of title (an ordinary civil action under Article 1607 of the Civil Code), and dismissed the land registration case without prejudice. Respondents’ motion for reconsideration before ...(Subscriber-Only)
Issues:
- Did the Regional Trial Court sitting as a land registration court have jurisdiction to entertain the petition for consolidation of ownership filed in LRC Case No. R-3936?
- Did respondents waive or are they estopped from challenging the jurisdiction of the land registration court by participating in the proceeding?
- Was the “Deed of Sale Under Pacto de Retro” an equitable mo...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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