Title
Limpin, Jr. vs. Intermediate Appellate Court
Case
G.R. No. 70987
Decision Date
Jan 30, 1987
Mortgaged properties sold, foreclosed, and contested; Supreme Court upheld Ponce's priority rights over subsequent buyers, affirming foreclosure validity.

Case Digest (G.R. No. 70987)

Facts:

Gregorio Y. Limpin, Jr. and Rogelio Sarmiento, petitioners, vs. Intermediate Appellate Court and Guillermo Ponce, respondents, G.R. No. 70987, January 30, 1987, First Division, Narvasa, J., writing for the Court.

On February 28, 1973 the spouses Jose and Marcelina Aquino mortgaged four lots (TCTs Nos. 92836, 92837, 92839 and 92840) in Quezon City to Guillermo Ponce and his wife as security for a loan; the mortgages were registered on March 1, 1973. In 1978 the Aquinos sold the two lots covered by TCTs Nos. 92836 and 92837 to Butuan Bay Wood Export Corporation, which caused an adverse claim to be annotated on those titles on February 24, 1978.

In 1979 Gregorio Y. Limpin, Jr. obtained a money judgment against Butuan Bay Wood Export Corporation in Civil Case No. 10463 of the Court of First Instance of Davao. To satisfy that judgment the two lots (92836 and 92837) were levied on September 3, 1980 and sold at public auction to Limpin as highest bidder on October 6, 1980. The covering titles were cancelled and replaced by TCTs Nos. 285450 and 285451 in Limpin’s name; Limpin thereafter sold the two lots to Rogelio M. Sarmiento on November 21, 1981, and TCTs in Sarmiento’s name were later issued.

On September 2, 1980 (the day before Limpin’s levy) Ponce filed suit for judicial foreclosure of the mortgage (Civil Case No. Q-30726, Court of First Instance, Quezon City). Judgment was rendered for Ponce on June 8, 1982 and, after the judgment became final, the trial court ordered public auction of the four mortgaged lots on September 13, 1983. On October 12, 1983 the four lots were sold at the foreclosure sale to Ponce himself (highest bid matching the judgment); the sheriff’s certificate of sale was registered the same day.

Ponce moved for confirmation of the foreclosure sale and for issuance of a writ of possession covering all four lots, but the trial court (in an order dated October 26, 1983) confirmed only the sale of TCTs Nos. 92839 and 92840 and refused to confirm the sale as to 92836 and 92837 because those titles had been cancelled and new ones issued in favor of Limpin (and later Sarmiento) by virtue of the execution sale in Davao. Ponce’s motion for reconsideration was denied.

Ponce then filed a special civil action for certiorari and mandamus in the Intermediate Appellate Court (IAC), impleading Limpin and Sarmiento as private respondents. After hearings and memoranda the IAC, in A.C.‑G.R. No. 02516, set aside the trial court’s orders insofar as they denied confirmation of the sale of the lots form...(Subscriber-Only)

Issues:

  • Was the special civil action of certiorari and mandamus the proper remedy and did the Intermediate Appellate Court have jurisdiction to review the trial court’s refusal to confirm the foreclosure sale?
  • Should the trial court’s refusal to confirm Ponce’s foreclosure sale as to the lots covered by TCTs Nos. 92836 and 92837 be upheld, or do Ponce’s mortgage rights prevail over the levies, execution sale to Limpin, and subsequent transfer to Sarmiento?
  • Did the alleged Deed of Partial Release (July 20, 1977) or the unregistered donation to the Dona Josefa Edralin Marcos Foundation extingu...(Subscriber-Only)

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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