Case Digest (G.R. No. 256720)
Facts:
Martinez Leyba, Inc. owned three titled contiguous parcels in Antipolo, Rizal (TCT Nos. 250242, 250243, 250244). Pen Development Corporation and Las Brisas Resorts Corporation (which later merged as Las Brisas) held adjacent title TCT No. 153101, developed the land beginning 1967, and received repeated written notices from Martinez (beginning March 11, 1968) that their fence and improvements overlapped Martinez’s lands; Martinez filed suit for quieting of title, cancellation and recovery on March 24, 1997. The Regional Trial Court found overlap per Verification Survey Plan Vs-04-000394, held Las Brisas a builder in bad faith, ordered cancellation of overlapping portions of TCT No. 153101, recovery of possession, demolition without indemnity, and awarded damages; the Court of Appeals affirmed with modification (deleting moral and exemplary damages, awarding nominal damages Php100,000), and the Supreme Court denied the petition for review.Issues:
- Whether Petitioners were posses
Case Digest (G.R. No. 256720)
Facts:
- Background of the dispute
- Plaintiff-Appellee Martinez Leyba, Inc. is a corporation and the registered owner of three contiguous parcels in Antipolo, Rizal, identified as Lot Nos. 29, 30 and 31, Block 3, (LRC) Pcs-7305, registered under TCT Nos. 250242, 250244 and 250243, respectively.
- Defendants-Appellants Pen Development Corporation and Las Brisas Resorts Corporation are domestic corporations that merged and the surviving entity is Las Brisas Resorts Corporation, registered owner of a parcel under TCT No. 153101 adjacent to Martinez Leyba, Inc.'s lands.
- Las Brisas occupied and fenced its land in 1967 and constructed improvements thereafter.
- On March 11, 1968 and in subsequent letters dated March 31, 1970 and November 3, 1970, Martinez Leyba, Inc. notified Las Brisas that the latter's fence and improvements appeared to encroach on Martinez Leyba, Inc.'s titled land; Las Brisas responded only by a letter dated July 31, 1971 expressing confusion over title origins.
- Martinez Leyba, Inc. commissioned Geodetic Engineer Ricardo S. Cruz to perform a verification survey which was approved by the Regional Technical Director for Lands of the DENR as Verification Survey Plan Vs-04-000394 on May 23, 1996.
- The verification survey showed overlap by TCT No. 153101 on Martinez Leyba, Inc.'s titles to the extent of: 567 sq.m. of Lot No. 29; 1,389 sq.m. of Lot No. 30; and 1,498 sq.m. of Lot No. 31.
- On March 24, 1997 Martinez Leyba, Inc. filed a Complaint for Quieting of Title, Cancellation of Title and Recovery of Ownership with Damages against Las Brisas before the Regional Trial Court of Antipolo City, docketed as Civil Case No. 97-4386.
- Parties' substantive claims and defenses
- Martinez Leyba, Inc. alleged that TCT Nos. 250242, 250243 and 250244 emanated from OCT No. 756 (registered August 14, 1915) and that Las Brisas' TCT No. 153101 derived from OCT No. 9311 (registered September 14, 1973), thus creating a cloud on Martinez Leyba, Inc.'s prior titles.
- Las Brisas denied encroachment, asserted valid title to TCT No. 153101 acquired May 18, 1967 from Republic Bank, and claimed possession in good faith as an innocent purchaser for value; it also sought reimbursement for development expenses.
- Martinez Leyba, Inc. requested cancellation of overlapping portions of TCT No. 153101, quieting of its titles, recovery of possession, damages (actual, moral P5,000,000; exemplary P1,000,000; nominal P1,000,000) and attorney's fees.
- Trial court proceedings and decision
- Trial evidence included the verification survey (VS-04-000394), witness testimony for plaintiff and defendant, and documentary exhibits formally offered and admitted by the RTC.
- The RTC found the verification survey established overlapping of TCT No. 153101 over Martinez Leyba, Inc.'s titles and noted Martinez Leyba, Inc.'s mother title dated 1915 preceded Las Brisas' mother title dated 1973.
- The RTC ruled that while Las Brisas acquired its title in good faith, such good faith ceased upon receipt of written notices from Martinez Leyba, Inc., rendering Las Brisas a builder in bad faith from that moment.
- The RTC applied Civil Code provisions (Articles 449, 450, 526 cited) and Supreme Court precedents (e.g., Chan v. CA; Ortiz v. Fuentebella; Tan Queto v. CA) to hold that a builder in bad faith loses what is built without right to indemnity.
- Judgment dated January 20, 2009 ordered: quieting of TCT Nos. 250242, 250243 and 250244; cancellation of portions of TCT No. 153101 insofar as they overlapped those titles; vacatur and turnover of possession; removal of structures at defendant's expense without right to indemnity or, alternatively, appropriation by plaintiff or payment for land value; award of moral damages P1,000,000; exemplary damages P1,000,000; attorney's fees P100,000; and costs.
- Las Brisas filed a Motion for Reconsideration which the RTC denied by Order dated August 7, 2009.
- Court of Appeals proceedings and decision
- Las Brisas appealed to the Court of Appeals in CA-G.R. CV No. 97478, contesting hearsay admission of the verification survey, the finding of bad f...(Subscriber-Only)
Issues:
- Primary legal issues raised on review
- Whether Pen Development Corporation and Las Brisas Resorts Corporation are possessors/builders in bad faith with respect to the overlapped portions.
- Whether Martinez Leyba, Inc. incurred laches by delaying enforcement of its claimed rights over the encroached portions.
- Whether the verification survey plans and relocation survey were hearsay and inadmissible when the objection was raised for the first time on appeal.
- Whether the documentary verification survey, as a public document, was admissible and entitled to presumption of regularity.
- Whether awards of ...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)