Case Digest (G.R. No. 176841)
Facts:
Anthony Orduna, Dennis Orduna, and Antonita Orduna v. Eduardo J. Fuentebella, et al., G.R. No. 176841, June 29, 2010, First Division, Velasco Jr., J., writing for the Court. The petitioners (the Ordunas) sought review under Rule 45 of the Court of Appeals' decision affirming the Regional Trial Court's dismissal of their suit for annulment of title and reconveyance.The dispute concerns a 74-square-meter residential lot in Fairview Subdivision, Baguio City, originally registered to Armando Gabriel, Sr. under TCT No. 67181. In about 1996 Gabriel Sr. allegedly sold the lot orally to Antonita Orduna for PhP125,000 payable in installments; no formal deed was executed. Antonita and her sons took possession, built a house, and paid real property taxes (Tax Declaration No. 96-04012-111087). They made partial payments which Gabriel Sr. and later his son, Armando Gabriel, Jr., acknowledged by receipts and letters; Gabriel Jr. even authorized them to fence the lot and accepted payments (letters and receipts dated 1996–1997).
After Gabriel Sr.'s death Gabriel Jr. was issued TCT No. T-71499, but he borrowed PhP50,000 from Bernard Banta and, upon default, executed a Deed of Sale dated June 30, 1999 transferring the lot to Bernard and causing issuance of TCT No. T-72782. Bernard sold to Marcos Cid and Benjamin F. Cid who then sold to Eduardo J. Fuentebella; TCT No. T-3276 in Eduardo’s name was issued on May 16, 2000. The successive purchasers claimed to have examined the registry and found the title unencumbered; Eduardo asserted he inspected the lot and found it unoccupied. Eduardo (through counsel) later demanded that persons occupying the lot vacate.
On July 3, 2001 petitioners (joined by Teresita Gabriel, Gabriel Jr.'s wife) filed a complaint for Annulment of Title and Reconveyance (RTC Civil Case No. 4984-R) seeking annulment of TCT No. T-3276 and reconveyance in their favor upon payment of the unpaid balance. Gabriel Jr. did not answer. By decision dated May 26, 2003 the RTC, Branch 3, Baguio City dismissed the complaint for lack of merit and awarded moral/exemplary damages and attorney's fees to some respondents; the RTC found Eduardo a purchaser in good faith and held the alleged oral sale unenforceable under the Statute of Frauds, among other grounds. Petitioners appealed.
On December 4, 2006 the Court of Appeals (CA)...(Pro-only)
Issues:
- Is the alleged oral sale between Armando Gabriel, Sr. and Antonita Orduna unenforceable under the Statute of Frauds (Art. 1403(2))?
- Was there adequate consideration for the alleged sale between Gabriel Sr. and Antonita?
- Has petitioners’ action for annulment of title and reconveyance prescribed?
- Are the respondent-purchasers (Bernard, the Cids, and Eduardo) innocent purchasers...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)