Title
National Housing Authority vs. Roxas
Case
G.R. No. 171953
Decision Date
Oct 21, 2015
NHA must honor contract for increased lot area; attorney’s fees require COA approval, upholding state immunity for monetary claims.

Case Digest (G.R. No. 171953)
Expanded Legal Reasoning Model

Facts:

# Background of the Case

The National Housing Authority (NHA), a government-owned and -controlled corporation, is responsible for the development of the Dagat-dagatan Development Project in Navotas, Metro Manila. Ernesto Roxas applied for commercial lots in the project in 1985, specifically Lot 9 and Lot 10, with an area of 176 square meters. His application was approved, and he made a downpayment of P79,200.00. A relocation survey later renumbered the lots to Lot 5 and Lot 6.

# Increase in Lot Area

A final subdivision survey revealed that the area of the lots increased from 176 to 320 square meters. The NHA informed Roxas of the increase and offered the additional 144 square meters at P3,500.00/square meter. Roxas expressed interest but requested a price reduction to P1,500.00/square meter, citing the original terms of the agreement. The NHA rejected his appeal.

# Legal Action

Roxas filed a complaint for specific performance and damages, seeking to enforce the original terms of the order of payment and notice of award. The Regional Trial Court (RTC) ruled in favor of Roxas, declaring him the legal awardee of the lots and ordering the NHA to execute a contract to sell the entire 320 square meters at P1,500.00/square meter. The NHA appealed, but the Court of Appeals (CA) affirmed the RTC's decision.

# Writ of Execution

After the decision became final and executory, Roxas filed a motion for the issuance of a writ of execution, which the RTC granted. The NHA sought reconsideration, but its motion was denied. The NHA then filed a petition for certiorari with the CA, arguing that the RTC committed grave abuse of discretion in issuing the writ of execution. The CA dismissed the petition, prompting the NHA to elevate the matter to the Supreme Court.

Issues:

  • Whether the NHA, as a government-owned and -controlled corporation, is immune from suit.
  • Whether the monetary judgment for attorney's fees awarded to Roxas must first be submitted to the Commission on Audit (COA) before execution.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court modified the writ of execution, allowing the specific performance of the contract to sell but requiring Roxas to first file his claim for attorney's fees with the COA.

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