Case Digest (A.M. No. RTJ-04-1861)
Facts:
In 1971, Nelson Plana died, leaving five lots under TCT Nos. T-57960 to T-57964 in his name and that of his wife, Merlinda Relano. On December 17, 1975, Merlinda’s then‐husband, Ramon Chiang, secured a Deed of Definite Sale from her—later found to be simulated and without consideration—by which five new Torrens titles (TCT Nos. T-86912 to T-86916) were issued in Ramon’s name. In 1980, Merlinda sued Ramon to recover four lots (covered by TCT Nos. T-86912 to T-86915), and on October 29, 1999, the Supreme Court in Modina v. Court of Appeals declared that Deed of Definite Sale void and restored those four properties to Merlinda. Meanwhile, on June 25, 1996, Ramon mortgaged the fifth lot (Lot 10031, under TCT No. T-86916) to Lourdes Tan Chua for P130,000, annotated as Entry No. 656728. In July 1998, Ramon filed a separate Accounting case (RTC Iloilo City, Branch 39, Civil Case No. 25285) against Lourdes, leading to a Partial Compromise Agreement in 2001 whereby Lourdes conditionallyCase Digest (A.M. No. RTJ-04-1861)
Facts:
- Parties and Titles
- Petitioner: Merlinda Relano Plana (née Relano), widow of Nelson Plana – originally registered owner of Lot 10031 under TCT No. T-57961.
- Respondents: Lourdes Tan Chua (Lourdes), mortgagee in good faith; heirs of Ramon Chiang (Ramon), registered owner under TCT No. T-86916.
- Transactions and Litigations
- December 17, 1975 – Merlinda’s purported “Deed of Definite Sale” to Ramon; original TCT Nos. T-57960–T-57964 cancelled; new TCT Nos. T-86912–T-86916 issued in Ramon’s name (Lot 10031 under TCT T-86916).
- 1979–1980 – Four lots sold by Ramon to Serafin Modina; Lot 10031 first mortgaged to DBP (annotated on TCT T-86916) and later to Lourdes on June 25, 1996 for ₱130,000.00 (annotated as Entry No. 656728).
- 1980–1999 – Merlinda sued Ramon for reconveyance of four lots; in Modina v. CA (G.R. No. 109355), this Court on October 29, 1999, declared the Deed of Definite Sale void for simulation and lack of consideration, voiding subsequent sales of the four lots. Lot 10031 remained under Ramon’s title.
- July 13, 1998 – Ramon filed Civil Case No. 25285 (Accounting) against Lourdes for P130,000.00 loan; he later consigned ₱83,500.00 in court; Lourdes counterclaimed for foreclosure and damages; parties entered Partial Compromise Agreement on March 15, 2001, conditionally accepting the ₱83,500.00 deposit.
- August 25, 2000 – Merlinda filed a Complaint for Reconveyance of Lot 10031 (CC No. 00-26387) against Ramon and Lourdes in RTC Branch 39, Iloilo City.
- November 12, 2012 – RTC: (a) declared sale of Lot 10031 and its mortgage void; (b) cancelled TCT T-86916 and annotation; (c) reinstated TCT T-57961; and (d) awarded Merlinda moral damages (₱100,000.00), exemplary damages (₱100,000.00), attorney’s fees (₱50,000.00).
- June 25, 2018 – CA (1) found Lourdes a mortgagee in good faith; (2) deemed the mortgage valid; (3) ordered annotation of the mortgage on reinstated TCT T-57961; modified RTC award.
- October 16, 2019 – CA denied Merlinda’s motion for reconsideration.
- January 10, 2023 – This Court’s En Banc decision partly grants review: affirms CA with modification, cancels TCT T-86916 and annotation, reinstates TCT T-57961, upholds damages to Merlinda, orders Lourdes and counsel to show cause.
Issues:
- Was Lourdes a mortgagee in good faith?
- What are Merlinda’s rights as true owner versus Lourdes’s rights as mortgagee?
- What is the effect of Lourdes’s and her counsel’s nondisclosure of Civil Case No. 25285 and the Partial Compromise Agreement?
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)