Case Digest (G.R. No. 228011)
Facts:
Petitioner Danilo Santiago F. Jimenez, represented by his attorney-in-fact Dr. Sonia R. Jimenez-Catarroja, challenged the validity of a Deed of Donation and subsequent titles after their mother Corona's alleged donation to Damian F. Jimenez, Jr. produced TCT No. N-217728. On May 21, 2001 Damian mortgaged the property to Arturo C. Calubad and Antonio Keh for P7,000,000, the mortgage was annotated on the title, Sonia filed an Affidavit of Adverse Claim on July 12, 2002, the property was foreclosed and sold at public auction on October 24, 2002 to Calubad and Keh, and TCT No. N-257432 was later issued to them; the RTC declared the Deed of Donation forged but recognized Calubad and Keh as innocent mortgagees in good faith, which the Court of Appeals affirmed.Issues:
- Can Calubad and Keh, as mortgagees in good faith and purchasers at a foreclosure sale, prevail over Sonia’s adverse claim annotated after the mortgage registration?
- Whether this Court should revisit the factual finding that Calubad and Keh acted in good faith under a Rule 45 petition for review on certiorari?
Ruling:
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Ratio:
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Doctrine:
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Case Digest (G.R. No. 228011)
Facts:
Danilo Santiago F. Jimenez, as represented by his Attorney-in-Fact Dr. Sonia R. Jimenez-Catarroja (Petitioner) challenged the title of Arturo C. Calubad and Antonio Keh (Respondents) over a 532-square meter lot located at No. 18 South Maya Street, Philam Homes, Quezon City. The property was originally titled in the name of Corona F. Jimenez under TCT No. RT-122097 (126876). A Deed of Donation dated August 31, 2000 purportedly in favor of Damian F. Jimenez, Jr. resulted in the cancellation of Corona's title and issuance of TCT No. N-217728 in Damian's name on September 7, 2000. On May 21, 2001 Damian mortgaged the property to Calubad and Keh for a P7,000,000.00 loan and the mortgage was annotated on TCT No. N-217728; the Jimenez siblings later discovered the Deed of Donation during estate settlement after Corona died on January 16, 2002. Sonia registered an Affidavit of Adverse Claim dated July 12, 2002 which was annotated on the title, and on October 21, 2002 the Jimenez siblings filed before the Regional Trial Court (RTC) of Quezon City a complaint to annul the Deed of Donation and TCT No. N-217728 and to cancel the mortgage, with a prayer for preliminary injunction which the RTC denied; the scheduled extrajudicial foreclosure sale on October 24, 2002 proceeded, Calubad and Keh emerged as highest bidders, a Certificate of Sale dated November 3, 2002 issued, and TCT No. N-257432 was consolidated and issued in their names on December 11, 2003. The RTC, in a Decision dated December 20, 2012, declared the Deed of Donation a forgery and nullified it but nonetheless recognized TCT No. N-257432 in favor of Calubad and Keh as innocent mortgagees for value and in good faith; the Court of Appeals affirmed this Decision in a Decision dated May 19, 2016 and denied Danilo's motion for reconsideration on October 25, 2016, prompting this Petition for Review on Certiorari to the Supreme Court, which promulgated its decision on February 10, 2021.Issues:
Was Arturo C. Calubad and Antonio Keh’s mortgage and subsequent purchase at the foreclosure sale valid as mortgagees in good faith given the forged Deed of Donation? Did Sonia’s Affidavit of Adverse Claim annotated after the registration of the mortgage defeat the rights of Calubad and Keh and require cancellation of TCT No. N-257432 and reinstatement of TCT No. RT-122097?Ruling:
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Ratio:
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Doctrine:
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Case Digest (G.R. No. 228011)
Facts:
- Parties and their capacities
- Danilo Santiago F. Jimenez, as represented by his attorney-in-fact Dr. Sonia R. Jimenez-Catarroja, is the Petitioner.
- Damian F. Jimenez, Jr. is the person who executed the Deed of Donation and later mortgaged the property.
- Corona F. Jimenez was the registered owner of the subject 532-square meter lot covered by TCT No. RT-122097 (126876).
- Arturo C. Calubad and Antonio Keh are mortgagees and respondents who purchased the property at a foreclosure auction.
- The Register (Registrar) of Deeds of Quezon City, and the ex-officio sheriff, Atty. Mercedes S. Gatmaytan (now Atty. Perlita V. Ele), are respondents in the underlying proceedings.
- Antecedent transactions and title history
- Corona F. Jimenez allegedly executed a Deed of Donation in favor of Damian F. Jimenez, Jr. dated August 31, 2000.
- Pursuant to the Deed of Donation, TCT No. RT-122097 (126876) was cancelled and in lieu thereof TCT No. N-217728 was issued in the name of Damian on September 7, 2000.
- On May 21, 2001, Damian mortgaged the property to Calubad and Keh for a P7,000,000.00 loan; the mortgage was annotated on TCT No. N-217728 the same day.
- On July 12, 2002, Dr. Sonia R. Jimenez-Catarroja (Sonia) registered an Affidavit of Adverse Claim annotated on the back of TCT No. N-217728.
- Sonia and the other Jimenez siblings discovered the Deed of Donation during settlement of Corona’s estate; Corona died on January 16, 2002.
- Proceedings leading to foreclosure and consolidation of title
- Sonia and the Jimenez siblings filed a complaint for annulment of the Deed of Donation and TCT No. N-217728, and for cancellation of the mortgage with prayer for preliminary injunction on October 21, 2002.
- The RTC denied the prayer for preliminary injunction; the extrajudicial foreclosure sale proceeded on October 24, 2002.
- Calubad and Keh were the highest bidders at the public auction; a Certificate of Sale dated November 3, 2002 was issued.
- On December 11, 2003, the title was consolidated and TCT No. N-257432 was issued in favor of Calubad and ...(Subscriber-Only)
Issues:
- Primary legal questions presented
- Whether Arturo C. Calubad and Antonio Keh, as mortgagees in good faith and as purchasers at the foreclosure sale, may retain the consolidated title (TCT No. N-257432) despite the Affidavit of Adverse Claim annotated by Sonia after the mortgage’s registration.
- Whether the knowledge of Calubad and Keh of Sonia’s adverse claim before the auction defeats their status as purchasers in good faith and thus bars them from acquiring valid title.
- Whether the factual findings of the RTC and the CA that Calubad and Keh were innocent mortgagees in good faith should be reviewed under Rule 45 or be accorded finality.
- Subsidiary doctrinal issues
- Whether the doctrine of mortgagee in good faith applies when the mortgagor’s Torrens title is forged.
- Whether a foreclosure sale ...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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