G.R. No. L-18766 - People vs. LOPEZ

Petitioner Celestina T. Naguiat allegedly granted private respondent Aurora Queaño a loan of P200,000.00 on 11 August 1980, to be secured by real estate mortgage over Queaño’s Pasay properties covered by TCT Nos. 28631 and 28632 (631 sq. m. total).
As alleged loan proceeds, Naguiat (a) endorsed to Queaño Associated Bank Check No. 090990 dated 11 August 1980 for P95,000.00 (originally issued to Naguiat by Corporate Resources Financing Corporation), and (b) issued Filmanbank Check No. 065314 dated 11 August 1980 for P95,000.00 payable to Queaño; Naguiat further claimed P10,000.00 cash was delivered to round up the amount to P200,000.00, which Queaño disputed as having been deducted upfront as 5% monthly interest.
To secure the loan, Queaño executed a notarized Deed of Real Estate Mortgage dated 11 August 1980 in favor of Naguiat and surrendered the owner’s duplicate titles; she also executed a promissory note for P200,000.00 at 12% per annum, payable on 11 September 1980.
Queaño issued Security Bank and Trust Company postdated check dated 11 September 1980 for P200,000.00 payable to Naguiat; upon presentment on maturity, the check was dishonored for insufficiency of funds; Queaño’s stop-payment request on 12 September 1980 was refused by the bank per policy when funds are insufficient.

On 16 October 1980, Naguiat’s counsel demanded settlement. In a meeting thereafter attended by Queaño and one Ruby Ruebenfeldt, Queaño asserted she never received the loan proceeds because the checks were retained by Ruebenfeldt, who acted as Naguiat’s agent and was instructed to release the checks only upon delivery of additional collateral.
Evidence showed Ruebenfeldt had previously acted in loan dealings involving Naguiat, introduced Queaño to Naguiat, accompanied Queaño in dealings, and even issued Security Bank & Trust Co. Check No. 017399 for P220,000.00 payable to Naguiat, postdated 15 November 1980, purportedly to cover Queaño’s supposed liability; when deposited on 15 November 1980, it was dishonored as drawn against a closed account; the BP 22 complaint against Ruebenfeldt was dismissed as civil in nature.

Naguiat initiated extrajudicial foreclosure; the Rizal Provincial Sheriff scheduled the auction sale on 14 August 1981.
On 11 August 1981, Queaño filed Civil Case No. 9330-P with the RTC of Pasay City for cancellation of the mortgage; the trial court enjoined the foreclosure.
On 8 March 1991, the RTC declared the mortgage null and void and ordered the return of the owner’s duplicate titles to Queaño.
On appeal, the Court of Appeals (Decision dated 21 December 1994) affirmed in toto the RTC, ruling: (a) the notarized mortgage’s recitals were overcome by clear and convincing evidence of lack of consideration; (b) no proof the checks were encashed or credited to Queaño; (c) admissions and acts of Ruebenfeldt were admissible under agency principles, including agency by estoppel.

Naguiat filed a Rule 45 Petition, challenging the factual findings and insisting that (a) the notarized mortgage enjoys a presumption of truthfulness, and (b) Ruebenfeldt’s pronouncements are inadmissible under res inter alios acta (Rule 130, Sec. 28), denying any agency.
The case was assigned to the Supreme Court Second Division, which denied the petition and affirmed the CA.

Whether the Supreme Court may review the factual findings of the RTC and CA in a Rule 45 petition and whether any recognized exception applies.

Whether the alleged loan was perfected and supported by consideration, specifically:

Does the notarized mortgage’s presumption of regularity and truthfulness conclusively establish receipt of loan proceeds?
Does delivery/issuance of checks constitute delivery of the loan object and payment absent proof of encashment or credit?

Whether the acts and declarations of Ruby Ruebenfeldt are admissible and binding on Naguiat under the rules on admissions by an agent and agency by estoppel.

Whether the real estate mortgage is valid and enforceable if the principal loan was not perfected for lack of delivery of loan proceeds.