Title
Robern Development Corp. vs. People's Landless Association
Case
G.R. No. 173622
Decision Date
Mar 11, 2013
Al-Amanah rejected PELA’s ₱300,000 offer for a Davao lot, sold it to Robern for ₱400,000; Court ruled no perfected contract with PELA, upheld sale to Robern, but awarded damages for Al-Amanah’s bad faith.

Case Digest (G.R. No. 173622)
Expanded Legal Reasoning Model

Facts:

  • Parties and Property
    • Al-Amanah Islamic Development Bank (Al-Amanah) owned a 2,000-square-meter lot in Magtu-od, Davao City, covered by TCT No. 138914.
    • People’s Landless Association (PELA) members, informal settlers on the lot, were asked (Dec. 12, 1992) to vacate or buy at P100/sqm; bank rejected the price and reiterated eviction demands.
  • PELA’s Offer and Deposits
    • March 18, 1993: PELA offered to buy the lot for P300,000 (P150,000 down, balance in one year); bank annotated “offer acknowledged/received but processing to take effect upon putting up of the partial amt. of P150,000 on or before April 15, 1993.”
    • By May 3, 1993, PELA deposited P150,000 via four receipts labeled “partial deposit on sale of TCT No. 138914”; meanwhile, PELA members improved the property.
  • Rejection of PELA’s Offer and Letters to Vacate
    • Nov. 29, 1993 and Dec. 14, 1993: Al-Amanah’s Head Office formally rejected the P300,000 offer (citing P500/sqm bank price), demanded PELA vacate and remove structures within 15 days, and offered to refund P150,000.
  • Robern’s Purchase Transaction
    • Dec. 27, 1993: Robern Development Corporation (Robern) offered P400,000 (20% deposit, cash basis, will shoulder relocation); Al-Amanah Board accepted.
    • Robern paid P80,000 deposit; informed to eject occupants and pay P320,000 balance by Feb. 9, 1994; balance paid Mar. 4, 1994; Deed of Sale executed Apr. 6, 1994; TCT No. 212983 issued in Robern’s name.
  • PELA’s Court Proceedings
    • Apr. 1994: PELA consigned P150,000 in RTC and wrote Al-Amanah to process documents, claiming full payment.
    • July 14, 1994: PELA filed suit for Annulment and Cancellation of Void Deed of Sale against Al-Amanah, Robern, and officers; secured TRO and preliminary injunction from RTC (Nov. 9, 1994), affirmed by CA in SP No. 35238.
  • Decisions Below
    • RTC (Aug. 10, 1999): Dismissed PELA’s complaint—no perfected sale with PELA (offer only, no acceptance, OIC lacked board authority), valid sale to Robern.
    • CA (Aug. 16, 2005; reso. May 30, 2006): Reversed RTC—found perfected contract with PELA, invalidated Robern sale, ordered reconveyance and damages; denied motions for reconsideration.

Issues:

  • Was there a perfected contract of sale between PELA and Al-Amanah?
  • If not, should the sale of the lot to Robern be upheld as valid?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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