Case Digest (G.R. No. 105188)
Facts:
In June 1982, A.U. Valencia & Co., Inc. and Felix PeAarroyo filed with the Regional Trial Court of Pasig a complaint for specific performance against Myron C. Papa, in his capacity as Administrator of the Testate Estate of Angela M. Butte. They alleged that on June 15, 1973, Papa, acting as Butte’s attorney-in-fact, sold to PeAarroyo a 286.60-square-meter lot in La Loma, Quezon City, covered by TCT No. 28993. Before the title could be released, Butte died and the lot remained mortgaged to Associated Banking Corporation. After securing an adverse claim annotation in January 1977 and the release of the title in April 1977, PeAarroyo learned that the bank’s mortgage rights had been assigned to the estate of Ramon Papa, Jr. Papa then collected P800 monthly rentals despite respondents’ repeated demands for the title. Valencia and PeAarroyo prayed that Papa deliver the title, refund accrued and future rentals, and pay attorney’s fees. Delfin Jao intervened, claiming he had bought theCase Digest (G.R. No. 105188)
Facts:
- Background of the Transaction
- On June 15, 1973, Angela M. Butte, through her attorney-in-fact Myron C. Papa, purportedly sold to Félix PeAarroyo, through A.U. Valencia & Co., Inc., a 286.60 sqm parcel in La Loma, Quezon City, under TCT No. 28993, for a total of ₱45,000 (₱5,000 cash on May 24, 1973, and ₱40,000 by check on June 15, 1973).
- Prior to the sale, the property was mortgaged to Associated Banking Corporation; title release was withheld pending redemption of several mortgaged parcels. Butte died before title issuance; PeAarroyo annotated an adverse claim on January 18, 1977.
- Procedural History
- June 1982: Valencia and PeAarroyo filed in RTC Pasig a complaint for specific performance against Papa (as Butte’s administrator), seeking delivery of the owner’s duplicate of TCT No. 28993, accrued and future rentals (₱800/mo.), attorney’s fees (₱20,000), and costs.
- Intervention and Third-Party Practice:
- Delfin Jao intervened, claiming subsequent purchase rights from PeAarroyo (Aug 20, 1973) and damages for non-delivery.
- Papa filed a third-party complaint against spouses Reyes & Santos, who acquired the lot at a 1980 tax sale for ₱14,000, alleging invalidity and seeking cancellation of the tax sale.
- June 29, 1987: RTC rendered judgment granting Papa redemption rights, ordering conveyance to PeAarroyo or payment of ₱45,000 + 12% interest, requiring PeAarroyo to convey to Jao or pay ₱5,000 + 12% interest, and awarding ₱5,000 attorney’s fees.
- January 27, 1992: CA affirmed with modification—ordering Papa to deliver the owner’s duplicate of TCT No. 28993 (or effect issuance of a new title in PeAarroyo’s name); affirmed remaining RTC relief; costs against Papa.
- April 22, 1992: CA denied Papa’s motion for reconsideration.
- January 23, 1998: SC docketed Papa’s Rule 45 petition for review on certiorari, raising issues on consummation of sale, non-joinder of estates, and cancellation of assignment.
Issues:
- Whether the sale was consummated despite Papa’s alleged non-encashment of the ₱40,000 check.
- Whether the CA erred by, in effect, nullifying or ignoring an alleged mortgage-rights assignment in favor of the Estate of Ramon Papa, Jr., a non-party.
- Whether the Estates of Angela M. Butte and Ramon Papa, Jr. were indispensable parties whose absence vitiates the proceedings.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)