Title
Nayve-Pua vs. Union Bank of the Philippines
Case
G.R. No. 253450
Decision Date
Jan 22, 2024
Lani Nayve-Pua contested that property acquired during her cohabitation was jointly owned. The SC upheld that the mortgage was valid as the property was registered solely under Stephen's name and was his exclusive property.

Case Digest (G.R. No. 253450)
Expanded Legal Reasoning Model

Facts:

  • Background and Parties
    • Lani Nayve-Pua (Petitioner) lived with Stephen Pua (her partner) since December 1975, cohabiting as husband and wife without being legally married.
    • They have four children born during the cohabitation period before their official marriage in July 1983.
    • In March 1978, Lani and Stephen bought a property in Diliman, Quezon City, registered under Stephen's name as "single".
    • The house built on the property became their family home.
  • Mortgage and Foreclosure
    • In January 2004, Lani discovered the property was mortgaged by Spouses Cromwell and Catherine Uy (related by family to Stephen) to Union Bank of the Philippines (Union Bank) as collateral for a loan.
    • The Uys defaulted on the loan, leading to foreclosure and public auction of the property which Union Bank won.
  • Legal Action and Claims
    • Lani filed a complaint to annul the real estate mortgage (REM), foreclosure, and certificate of sale, denying consent to the mortgage, asserting forgery of her signature on a Special Power of Attorney (SPA) used by the Uys.
    • Union Bank argued that the property was Stephen's exclusive property, acquired before marriage and hence not conjugal property, and that the notarized SPA bore valid signatures.
  • Court Proceedings
    • The Regional Trial Court (RTC) dismissed Lani's complaint, holding the property was Stephen's separate property under the conjugal partnership of gains regime, given it was acquired prior to marriage and registered under his sole name.
    • The Court of Appeals (CA) affirmed this decision, emphasizing the prima facie presumption under Article 147 of the Family Code is rebuttable and that Lani failed to demonstrate exclusive cohabitation as husband and wife or contribution to the property's acquisition.
    • Lani moved for reconsideration, which was denied.
    • Lani elevated the case to the Supreme Court.

Issues:

  • Whether the real estate mortgage and subsequent foreclosure by Union Bank on the property should be annulled.
  • Whether Lani's consent was necessary and if its purported absence or forgery affects the validity of the mortgage.
  • Whether the property is conjugal or Stephen's exclusive property.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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