Title
Solid Homes, Inc. vs. Spouses Jurado
Case
G.R. No. 219673
Decision Date
Sep 2, 2019
Spouses Jurado assigned rights to a foreclosed lot; Solid Homes consented but failed to replace it. Courts ordered replacement or refund with interest, deleting unjustified damages.

Case Digest (G.R. No. 219673)
Expanded Legal Reasoning Model

Facts:

  • Contract to Sell between Solid Homes, Inc. and Spouses Calica (1977)
    • Subject Property: 1,241 sqm residential lot in Loyola Grand Villas Subdivision, Marikina for ₱434,350.00.
    • Payment Terms: ₱86,870.00 downpayment; balance in 96 monthly installments of ₱5,646.55.
  • Assignment of Rights to Spouses Jurado (1983)
    • Deed of Assignment: Spouses Calica assigned their vendee rights to Spouses Jurado for ₱130,352.00; Solid Homes prepared the standard form and its officer attested it.
    • Payments and Receipts: Spouses Jurado paid a transfer fee (provisional receipt issued) and received a credit memorandum of ₱108,001.00; total payments by both groups reached ₱480,262.95 by February 22, 1983.
  • Discovery of Mortgage and Foreclosure; Replacement Undertaking
    • Spouses Jurado learned from Solid Homes’ officer that the lot had been mortgaged and foreclosed.
    • Solid Homes promised to replace the foreclosed lot; Spouses Jurado submitted documents and followed up by letters dated October 23, 1992 and August 7, 1996 without success.
  • HLURB Proceedings
    • First HLURB Complaint (2000–2005): Spouses Jurado filed for specific performance and damages; HLURB Arbiter (June 13, 2007) dismissed the complaint for lack of prior written consent and prescription; HLURB Board (April 20, 2005) affirmed dismissal without prejudice.
    • Second HLURB Complaint (2005–2009): Refiled with documentary evidence; Solid Homes defended with lack of consent, prescription, laches, res judicata, forum shopping, estoppel; HLURB Board (May 22, 2008) reversed Arbiter and ordered:
      • Replacement of the foreclosed lot or payment of its fair market value.
      • ₱30,000.00 attorney’s fees, ₱30,000.00 moral damages, costs of suit.
      • Modified (October 2, 2009): Spouses Jurado to pay balance of ₱145,843.35 + 12% p.a. from availability of replacement; alternative FMV payment + 12% p.a.; damages and fees unchanged.
  • Office of the President (2012)
    • Adopted HLURB findings by reference; held Solid Homes consented to assignment, defenses meritless, no laches; dismissed Solid Homes’ appeal.
    • Denied reconsideration (2012–2013).
  • Court of Appeals (2015)
    • Affirmed OP except removed awards of moral damages and attorney’s fees for lack of factual/legal basis; costs of suit imposed.
    • Denied Solid Homes’ motion for partial reconsideration (July 22, 2015).

Issues:

  • Procedural and Jurisdictional Issues
    • Whether the OP properly adopted by reference the HLURB findings of fact and conclusions of law.
    • Whether the complaint was barred by res judicata, forum shopping, prescription, laches or estoppel.
  • Substantive Issues
    • Whether there was privity of contract between Solid Homes and Spouses Jurado given the non-assignment clause.
    • Whether Solid Homes consented to the assignment and transfer of rights.
    • Whether ordering the replacement of the foreclosed lot and conveyance of title (or payment of FMV) was proper.
    • Whether Solid Homes’ counterclaims should have been granted.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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