G.R. No. 138896 - Barangay San Roque vs. Heirs of Pastor

In early August 2003, Shigekane Suzuki (Suzuki) inquired, through Helen Soneja, about purchasing Unit No. 536 (CCT No. 18186) and Parking Slot No. 42 (CCT No. 9118) in Cityland Pioneer, Mandaluyong City, owned by Yung Sam Kang (Kang).
After negotiation, Suzuki paid a P100,000 reservation fee (BPI Check No. 83349) on August 5, 2003, and the remaining P2,700,000 (BPI Check No. 83350) on August 21, 2003, and on August 26, 2003 executed a notarized Deed of Absolute Sale covering both properties.

Suzuki took possession of the unit, began renovations, and repeatedly demanded delivery of the original titles, then held by Alexander Perez (Orion’s loan officer) for safekeeping.
Verification at the Registry of Deeds revealed:

CCT No. 9118 (parking slot) bore no encumbrance but remained under “Cityland Pioneer.”
CCT No. 18186 (unit) carried an SRRV restriction (Entry No. 73321/C-10186) requiring Philippine Retirement Authority approval for conveyance, and a cancelled mortgage annotation (Entry No. 66432/C-10186, cancelled June 16, 2000).

To protect his interest, Suzuki filed Affidavits of Adverse Claim on September 8 and October 28, 2003, over the unit and parking slot, respectively.

On October 9, 2003, Orion’s counsel claimed Kang had executed a Dacion en Pago in Orion’s favor on February 2, 2003 covering Unit No. 536, later registered on October 15, 2003; no annotation appeared in CCTs.
On January 27, 2004, Suzuki filed a complaint for specific performance and damages against Kang and Orion before the RTC, alleging his rights as an innocent purchaser.

RTC Branch 213, Mandaluyong City (June 29, 2009) ruled for Suzuki, ordering Orion to deliver CCT Nos. 18186 and 9118 and awarding moral, exemplary damages, attorney’s fees, litigation expenses, and costs.
CA (August 23, 2012) affirmed Suzuki’s right to the titles but deleted all damage awards; denied Orion’s motion for reconsideration (January 25, 2013).
Orion filed a Petition for Review on Certiorari under Rule 45 with the Supreme Court.

Whether the sale from Kang to Suzuki is void for lack of spousal consent under Korean law.
Whether Suzuki is disqualified as a good-faith purchaser due to the PRA restriction in CCT No. 18186.
Whether Orion’s asserted Dacion en Pago (February 2, 2003) validly conveyed Unit No. 536 and prevails over Suzuki’s sale under Article 1544, New Civil Code.
Whether Orion exercised due diligence and properly registered or asserted its claimed rights over the properties.