Title
Liwag vs. Happy Glen Loop Homeowners Association, Inc.
Case
G.R. No. 189755
Decision Date
Jul 4, 2012
Dispute over water facility on Lot 11, deemed open space; sale voided due to easement for community benefit, upheld by courts.
A

Case Digest (G.R. No. 189755)

Facts:

  • Parties and Procedural History
    • Petitioner Emeteria Liwag filed a Rule 45 Petition before the Supreme Court assailing the CA Decision (Mar. 13, 2009) and Resolution (Sept. 18, 2009) in CA-GR SP No. 100454.
    • Respondent Happy Glen Loop Homeowners Association, Inc. appealed from:
      • The Decision (Oct. 5, 2004) of HLURB Arbiter Melchor in HLURB Case No. REM-030904-12609, which voided the sale of Lot 11, Block 5 and confirmed an easement for water facilities.
      • The Decision (June 7, 2005) of the HLURB Board of Commissioners in HLURB Case No. REM-A-041210-0261, which reversed the Arbiter and upheld the sale.
      • The Decision (Mar. 5, 2007) and Order (July 26, 2007) of the Office of the President (O.P.) in OP Case No. 05-G-224, which set aside the HLURB Board and reinstated the Arbiter’s ruling.
      • The CA thereafter affirmed with modification the O.P. rulings.
  • Underlying Material Facts
    • Happy Glen Loop Subdivision in Deparo, Caloocan City had a deep well and overhead water tank as its only source of water since circa 1978, when F.G.R. Sales assigned its rights and receivables to Ernesto Marcelo.
    • Marcelo represented to buyers and regulatory agencies (NHA, HSRC) that a water facility existed and continuously maintained it for almost 30 years.
    • In September 1995, Marcelo sold Lot 11, Block 5—site of the water facility—to Hermogenes Liwag, issuing TCT No. C-350099.
    • After Hermogenes’s death in 2003, Emeteria Liwag demanded removal of the overhead tank; the Association filed before HLURB a complaint for specific performance, confirmation and maintenance of water facilities, annulment of sale, and cancellation of TCT C-350099.
  • Procedural Developments
    • HLURB Arbiter Melchor (Oct. 5, 2004) held that:
      • An easement for the water system existed on Lot 11;
      • The deed of sale to spouses Liwag was void ab initio;
      • A permanent TRO be issued; and
      • Respondents pay attorney’s fees and damages.
    • HLURB Board (June 7, 2005) reversed, ruling Lot 11 was not open space, Marcelo complied with P.D. 1216 donations, and use was merely tolerated.
    • O.P. (Mar. 5, 2007; July 26, 2007) set aside the Board, affirmed the Arbiter, and found Lot 11 part of open space under P.D. 957 and P.D. 1216.
    • CA (Mar. 13, 2009) affirmed HLURB jurisdiction, the existence of an easement and open‐space status, but deleted criminal referral, attorney’s fees, and damages.
    • Petitioner’s motion for reconsideration was denied (Sept. 18, 2009); she elevated the case to the Supreme Court.

Issues:

  • HLURB Jurisdiction
    • Whether the HLURB has exclusive jurisdiction over the Association’s complaint alleging unsound real estate business practices and violations of P.D. 957.
  • Existence of Easement
    • Whether an easement for a water facility exists on Lot 11, Block 5 of Happy Glen Loop Subdivision.
  • Classification as Open Space
    • Whether Lot 11, Block 5 constitutes part of the required open space under P.D. 1216.
  • Validity of Sale and Torrens Title
    • Whether the sale of Lot 11, Block 5 to spouses Liwag is void ab initio, requiring cancellation of TCT No. C-350099, notwithstanding the principle of indefeasibility of title and the prohibition on collateral attacks.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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