Case Digest (G.R. No. 182128) Core Legal Reasoning Model
Core Legal Reasoning Model
Facts:
In Philippine National Bank v. Teresita Tan Dee, Antipolo Properties, Inc. (now Prime East Properties, Inc.) and AFP-RSBS, Inc., the petitioner Philippine National Bank (PNB) sought review of the Court of Appeals’ August 13, 2007 Decision and March 13, 2008 Resolution, which affirmed the Office of the President’s August 4, 2004 ruling upholding an HLURB decision in favor of respondent Teresita Tan Dee. In July 1994, Dee entered into a contract to sell a 204-sq. m. residential lot in Binangonan, Rizal, under TCT No. 619608 with Antipolo Properties, Inc. (API/PEPI). In August 1996, API/PEPI assigned to AFP-RSBS rights over the larger parcel that included Dee’s lot. On September 10, 1996, PEPI secured a ₱205,000,000 loan from PNB by mortgaging several properties, including Dee’s lot. The Housing and Land Use Regulatory Board (HLURB) cleared the mortgage on September 18, 1996. After Dee fully paid the purchase price, PEPI and AFP-RSBS executed a deed of absolute sale in July 1998. D Case Digest (G.R. No. 182128) Expanded Legal Reasoning Model
Expanded Legal Reasoning Model
Facts:
- Contract of Sale and Mortgage
- In July 1994, Teresita Tan Dee purchased on installment Lot 12, Block 21-A (204 sqm), TCT No. 619608, from Antipolo Properties, Inc. (now Prime East Properties, Inc. or PEPI).
- In August 1996, PEPI assigned a 213,093-sqm tract (including Dee’s lot) to AFP-RSBS, Inc.
- On September 10, 1996, PEPI obtained a ₱205 million loan from Philippine National Bank (PNB), mortgaging multiple properties including Dee’s lot; HLURB clearance was issued on September 18, 1996.
- Completion of Sale and Administrative Proceedings
- After full payment, PEPI and AFP-RSBS executed a deed of sale in favor of Dee in July 1998. Dee demanded the owner’s duplicate title from PNB but was refused.
- Dee filed with HLURB on April 24, 2002 a complaint for specific performance. On May 21, 2003, HLURB ordered PNB to release the mortgage and surrender TCT No. 619608 to Dee, and PEPI/AFP-RSBS to deliver a clean title or pay damages.
- HLURB’s Board of Commissioners affirmed on March 15, 2004 (modifying interest). The Office of the President (OP) affirmed on August 4, 2004 (modifying monetary awards).
- Judicial Appeals
- PNB petitioned the Court of Appeals (CA); on August 13, 2007, the CA denied the petition and affirmed the OP decision.
- CA denied PNB’s motion for reconsideration on March 13, 2008. PNB filed this Rule 45 petition before the Supreme Court.
Issues:
- Mortgage versus Buyer’s Rights
- Does PNB’s duly registered and HLURB-approved mortgage over TCT No. 619608 bar the outright release of the title to Dee?
- Can the mortgage be cancelled or released in favor of Dee absent redemption by PEPI/AFP-RSBS under Section 25, PD 957, or direct payment by Dee to PNB?
- Privity and Stipulation Pour Autrui
- Is PNB bound by undertakings in the Affidavit of Undertaking between PEPI/AFP-RSBS and Dee, or does privity of contract preclude such obligation?
- Does paragraph 6 of the Affidavit constitute a stipulation pour autrui creating obligations in favor of Dee?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)