Case Digest (G.R. No. 173089) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Philippine National Bank v. Abello, the respondents—Elenita V. Abello, Ma. Elena Elizabeth A. Fider, Jonathan V. Abello, Manuel V. Abello, Jr., and Vincent Edward V. Abello—filed on November 21, 2008 before the Regional Trial Court (RTC) of Bacolod City, Branch 49, Civil Case No. 08-13309 a Complaint for Cancellation/Discharge of Mortgage Liens annotated on Transfer Certificates of Title (TCT) Nos. T-127632, T-82974, and T-58311, all located in Negros Occidental and registered under Manuel and Elenita Abello. The complaint challenged various real estate mortgages entered in favor of Philippine National Bank (PNB): five increments on TCT No. T-127632 between 1963 and 1974 aggregating up to ₱94,200, and a ₱227,000 mortgage on October 30, 1975 covering TCT Nos. T-82974 and T-58311. Following the death of Manuel Abello in 1998, his heirs executed a Declaration of Heirship in 2003 authorizing Elenita as estate administrator. The respondents contended that PNB’s right to foreclose Case Digest (G.R. No. 173089) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Parties and procedural posture
- Petitioner: Philippine National Bank (PNB), defendant in the trial court and appellant in the CA.
- Respondents: Elenita V. Abello, Ma. Elena Elizabeth A. Fider, Jonathan V. Abello, Manuel V. Abello Jr., and Vincent Edward V. Abello; plaintiffs below and appellees in the CA.
- Mortgage inscriptions on the subject titles
- TCT No. T-127632 (Spouses Abello) – multiple real estate mortgages in favor of PNB:
- September 18, 1963 – P5,890.00 (inscribed Aug. 9, 1968).
- February 21, 1968 – P6,600.00 (inscribed Feb. 22, 1968).
- August 14, 1973 – P50,000.00 (inscribed Aug. 23, 1973); amendment on Oct. 8, 1973 increasing to P94,200 (inscribed Oct. 11, 1973).
- March 18, 1974 – credit limit accommodations increased to P75,000.
- TCT Nos. T-82974 & T-58311 – Real Estate Mortgage of P227,000.00 executed Oct. 30, 1975, inscribed Nov. 4, 1975 (Entry 80024).
- Lower court proceedings
- RTC (Bacolod City, Branch 49):
- Complaint for cancellation/discharge of mortgage (Nov. 21, 2008), on ground of prescription.
- Decision (Aug. 26, 2014): Ordered cancellation of all mortgage annotations; held right to foreclose accrued Mar. 19, 1984 (TCT 127632) and Nov. 5, 1985 (TCT 82974, 58311).
- CA (Cebu City):
- Petition for certiorari (filed post-RTC decision); Motion for Reconsideration denied.
- Decision (Jan. 31, 2018): Denied petition; affirmed RTC; held prescription ran from last payment date Dec. 31, 1985 with demand Jan. 8, 2002.
- Present petition
- PNB’s Rule 45 petition: Challenges CA and RTC rulings, argues complaint failed to state cause of action and respondents waived prescription defense.
- Respondents’ comment: PNB’s own admissions suffice to determine cause of action and prescriptive period.
Issues:
- Whether the respondents’ complaint stated a cause of action for cancellation of mortgage encumbrances.
- Whether the action to foreclose the REMs had prescribed, considering:
- Proper commencement of prescriptive period (maturity vs inscription).
- Allegations and proof of maturity date or demand.
- Whether the CA and RTC erred in ordering cancellation of the annotated encumbrances on the TCTs.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)