Title
Royal Plains View, Inc. vs. Mejia
Case
G.R. No. 230832
Decision Date
Nov 12, 2018
Land dispute over Lot 371 in Tagum City; rescission of conditional sale deemed invalid; Maceda Law inapplicable; petitioners ordered to pay balance for deed execution.

Case Digest (G.R. No. 173425)
Expanded Legal Reasoning Model

Facts:

  • Subject Property and Original Transactions
    • Lot No. 371, original area 123,099 sqm, covered by OCT No. (P-1324) P-232 in Tagum City, owned by Dominador Ramones.
    • September 17, 1960: Dominador executed Contract of Sale in favor of Bias Mejia for 7,309 sqm (reduced by agreement to 6 ha); title remained in Dominador’s name.
    • February 17, 1965: Dominador sold remaining 6.3 ha to Pablo Benitez by Deed of Absolute Sale.
  • Chain of Possession and Splitting of Title
    • Bias died; his son Nestor C. Mejia inherited his rights and occupied the entire 12.3 ha under OCT P-232.
    • 2005: Nestor met Renato Padillo of Royal Plains View, Inc. (RPVI). They agreed to split the 12.3 ha into two titles, resulting in TCT Nos. T-225549 and T-225550, both still in spouses Ramones’ names. RPVI retained T-225549; T-225550 delivered to Casimiro Benitez.
  • Deeds of Conditional Sale and Alleged Default
    • March 23, 2005: RPVI (through Rosemarie Padillo) and Nestor entered into a Deed of Conditional Sale of TCT No. T-225549 for ₱8 million (₱500,000 down, 36 monthly installments).
    • April 11, 2007: They revoked the 2005 deed and executed a new Deed of Conditional Sale reflecting ₱1,972,000 paid and 40 monthly installments of ₱150,000, plus an alleged oral agreement to divide the 60,000 sqm into two halves.
    • RPVI sold individual lots to third parties; Nestor allegedly sold the whole property to spouses Egina for ₱12 million; eight derivative TCTs issued then later cancelled.
  • Rescission and Litigious History
    • RPVI defaulted on installments; Nestor issued a notarized “Rescission of Deed of Conditional Sale” dated February 5, 2010, alleging default.
    • October 12, 2011: RPVI filed Civil Case No. 4263 for nullity of the rescission, specific performance, sums of money, etc., against Nestor and Ramones’ heirs.
    • Nestor defaulted; RTC (April 12, 2013) dismissed RPVI’s complaint with prejudice, finding badges of fraud and that Nestor had no title to sell.
    • CA (May 26, 2016) reversed, characterizing the deed as a contract to sell, applying R.A. 6552 (Maceda Law), and ordering RPVI to pay balance of ₱4,432,500 within 60 days, upon which Nestor would execute the deed of absolute sale. CA denied reconsideration (February 7, 2017).
    • RPVI petitioned the Supreme Court for review on certiorari.

Issues:

  • Whether a party declared in default in the trial court may nonetheless file an appellee’s brief in the appellate court.
  • Whether Nestor’s rescission (cancellation) of the April 11, 2007 Deed of Conditional Sale is valid.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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