Case Digest (G.R. No. 135929)
Facts:
Limson v. Court of Appeals, G.R. No. 135929, April 20, 2001, Supreme Court Second Division, Bellosillo, J., writing for the Court. Petitioner Lourdes Ong Limson filed a complaint on May 14, 1979 alleging that in July 1978 spouses Lorenzo de Vera and Asuncion Santos‑de Vera (respondent spouses), through their agent Marcosa Sanchez, offered to sell to her a 48,260 sqm parcel in Barrio San Dionisio, Paranaque at P34.00 per square meter; she paid P20,000 on July 31, 1978 which the spouses acknowledged in a receipt described as "earnest money" and which gave her a ten‑day option to purchase. Petitioner alleged repeated attempts to consummate the sale in August 1978, payment of additional checks on August 23, 1978 to settle back taxes and tenants' quitclaims, and later discovery (September 15, 1978) that a transfer certificate of title (TCT No. S‑72946) had been issued to respondent spouses only that day; she filed an Affidavit of Adverse Claim and informed respondent Tomas Cuenca, Jr. and Sunvar Realty Development Corporation (SUNVAR) of her asserted contract.Respondent spouses executed a Deed of Sale to SUNVAR on September 15, 1978; TCT No. S‑72377 was issued in favor of SUNVAR on September 26, 1978 and the petitioner’s adverse claim was annotated. Petitioner sought annulment of the Deed of Sale, cancellation of SUNVAR’s title, restoration of the spouses' title, specific performance (execution of a deed of sale in her favor upon payment of the balance), and damages and attorney’s fees.
Respondent spouses answered denying a perfected contract to sell, asserting that the agreement was an option which had expired, and counterclaimed for damages. SUNVAR and Cuenca answered denying notice or bad faith and, alternatively, sought reimbursement from respondent spouses if the sale were annulled; they cross‑claimed against respondent spouses for bad faith. Respondent spouses, in turn, denied liability on the cross‑claim and alleged that SUNVAR had waived claims against them.
After a protracted trial (the records were reconstituted following a fire at Pasay City Hall on January 18, 1992), the Regional Trial Court, Branch 111, Pasay City, rendered a decision dated June 30, 1993 in favor of petitioner ordering annulment and rescission of the September 15, 1978 Deed, cancellation of SUNVAR’s title and restoration of TCT No. S‑72946 in the spouses’ names, and directing the spouses to execute a deed of sale to petitioner upon payment of the balance; the RTC also awarded P50,000 as attorney’s fees and costs.
The Court of Appeals (Special Fifth Division; Decision penned by Associate Justice Jesus M. Elbinias) reversed in a Decision dated May 18, 1998, ordering the Register of Deeds of Makati City to lift the Adverse Claim and other encumbrances petitioner had caused annotated on TCT No. S‑75377 and a...(Subscriber-Only)
Issues:
- Was the agreement between petitioner and the respondent spouses a perfected contract to sell or merely an option?
- Did respondent SUNVAR buy the property in good faith and without notice of petitioner’s claimed right?
- Were the Court of Appeals’ awards of nominal and exemplary damages and attorneys’ fee...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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