Case Digest (G.R. No. 189061)
Facts:
Midway Maritime and Technological Foundation, represented by its Chairman/President PhD in Education Dr. Sabino M. Manglicmot v. Marissa E. Castro, et al., G.R. No. 189061, August 06, 2014, Supreme Court First Division, Reyes, J., writing for the Court.The petition arises from a dispute over a residential building standing on two parcels of land in Cabanatuan City. The parcels were originally owned by Louis Castro, Sr., who, as president of Cabanatuan City Colleges (CCC), mortgaged the property to Bancom Development Corporation in 1974. When CCC defaulted, Bancom foreclosed and acquired the property at public auction in 1979; the mortgage and rights were later assigned to Union Bank, which consolidated ownership by 1984. The respondents (Castro children) had occupied and constructed the residential house on a portion of the land pursuant to a lease from CCC; the Supreme Court earlier ruled in Castro, Jr. v. Court of Appeals (321 Phil. 262 (1995)) that that residential house was not owned by CCC and therefore should not have been included in a writ of possession issued to the foreclosing creditor.
In July 1993, Tomas Cloma bought the two parcels from Union Bank at auction, later leased them to the petitioner, and thereafter sold the land to his daughter, Adoracion Cloma (the petitioner's president is her husband). Meanwhile, the respondents asserted ownership of the residential house (built and used by them between 1977 and 1985) and alleged that the petitioner, through Dr. Manglicmot, leased the building (except the portion occupied by their caretaker Josefino) from their mother in June 1993, paying P6,000 monthly and later P10,000 after October 1995, but defaulted on rent beginning August 1995.
The respondents sued in Civil Case No. 3700 (AF) for ownership, recovery of possession, and damages; their Amended Complaint was filed April 19, 2000. The petitioner denied respondents’ ownership and claimed that Adoracion (through her purchase from Tomas) owned both the land and the improvements. The Regional Trial Court (RTC), Branch 28, Cabanatuan City, rendered judgment on July 2, 2001 declaring the respondents absolute owners of the building and ordering the petitioner to pay unpaid rentals totaling P672,000.00. The Court of Appeals affirmed the RTC in its Decision dated O...(Pro-only)
Issues:
- Was there a lease between the petitioner and the respondents over the residential building?
- Are the respondents the owners of the residential building and, if so, is the petitioner estopped from denying their title in light of the lease and prior final judgment in Castro?
- Did Tomas’s (and Adoracion’s) purchase at auction include the residential building and, relatedly, did any purported transfer or purcha...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)