Case Digest (G.R. No. 73558)
Facts:
Alfredo M. Ouano v. Court of Appeals and Heirs of Julieta M. Ouano, G.R. No. 129279, March 04, 2003, Supreme Court First Division, Azcuna, J., writing for the Court.The dispute arose from an extrajudicial foreclosure of two parcels of land in Opao, Mandaue City. In 1977 Julieta M. Ouano obtained a loan from Philippine National Bank (PNB) secured by a real estate mortgage over the two parcels. After Julieta defaulted, PNB filed for extrajudicial foreclosure with the City Sheriff of Mandaue City on September 29, 1980. The sheriff prepared and caused publication of a notice of sale for an auction scheduled December 5, 1980 (published November 13, 20 and 27, 1980) and posted notices in public places.
The scheduled sale never occurred because the parties executed a series of four pro-forma Agreements to Postpone Sale, each requesting that the sheriff defer the auction to a later date "without any further republication of the notice of sale." The first agreement was filed two days before the original December 5, 1980 date and moved the sale to February 5, 1981; subsequent agreements moved the sale to February 28, March 30, and finally May 29, 1981. Several of these agreements were executed or filed only after the rescheduled dates; in any event there was no republication and no reposting of notice for the May 29, 1981 sale.
On May 29, 1981 the sheriff proceeded with the auction and awarded the properties to PNB, the sole bidder, issuing a Certificate of Sale. Julieta failed to redeem within one year and PNB consolidated title on February 12, 1983, and later conveyed the properties to petitioner Alfredo Ouano (first by Deed of Promise to Sell in February 1983 and later by Deed of Sale). The Register of Deeds issued Torrens titles in Alfredo Ouano’s name in 1986 after a Deed of Sale dated February 25, 1986.
Upon discovering alleged irregularities, Julieta sent demand letters in March 1983 and filed suit in the Regional Trial Court (RTC) of Cebu (Mandaue) in April 1983 seeking nullification of the May 29, 1981 foreclosure sale; Alfredo Ouano intervened to protect his title. On January 29, 1990 the RTC rendered judgment voiding the May 29, 1981 sale for failure to comply with the posting and republication requirements of Act No. 3135 as amended by Act No. 4118, and ordered cancellation and reinstatement of titles and monetary relief. PNB and petitioner appealed to the Court of Appeals. In a decision dated February 17, 1997 the Court of Appeals affirmed the RTC on the same ground (lack of publication/reposting). A motion for reconsideration was denied April 15, 1997.
PNB and petitioner filed petitions for review with the Supreme Court; PNB’s petition was dismissed for lateness a...(Subscriber-Only)
Issues:
- Were the posting and publication requirements of Act No. 3135, as amended by Act No. 4118 (Sec. 3), complied with in the May 29, 1981 extrajudicial foreclosure sale such that the sale is valid?
- Does Rule 39, Section 24 of the Rules of Court (allowing adjournment of execution sales by written consent) apply to extrajudicial foreclosure sales and permit resetting the sale without republication/reposting?
- Is Julieta M. Ouano estopped from challenging the validity of the foreclosure sale because she requested postponements and signed Agreements waiving republication?
- Does the delay of almost two...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)