Asto. Adm. No. 743 - Aguirre vs. Ramos

In October 1996, spouses Amado O. Ibañez and Esther R. Ibañez borrowed ₱1,300,000.00 from Francisco E. Muñoz, Sr., Consuelo Estrada and Ma. Consuelo E. Muñoz, payable in three months at 3% interest per month. They executed on October 14, 1996 a joint and several Promissory Note.
On October 17, 1996, the spouses Ibañez mortgaged their land (TCT No. 202978) as security, granting extrajudicial foreclosure rights upon default or insolvency.

On September 23, 1997, Ma. Consuelo and Consuelo applied to foreclose the mortgage for alleged violations and dishonored checks.
On December 8, 1997, the spouses Ibañez filed in RTC Manila Civil Case No. 97-86454 a Complaint for injunction and damages to stop the public auction, later amended on December 12, 1997, resulting in a status quo order on December 16, 1997.

On June 11, 2002, parties filed a Joint Motion for Approval of Amended Compromise Agreement, approved by RTC as its Hatol on June 17, 2002. Key terms:

Total payment of ₱3,000,000.00 to Francisco, Consuelo and Ma. Consuelo.
Initial ₱2,000,000.00 from a GSIS loan within three months; balance ₱1,000,000.00 within one year, secured by mortgage on a Cavite property.
If GSIS loan fails, status quo order to be lifted and certificate of sale issued.
Waiver of other claims; right to execute on default.

September 2002: spouses Ibañez manifested delay in GSIS loan and executed mortgage on TCT No. T-77676.
February 28, 2006: counsel Bermejo moved to lift status quo and issue writ of possession for failure to comply.
March 24, 2006: RTC granted that motion, lifting status quo and directing certificate of sale.
June 15, 2006: RTC granted spouses Ibañez’ motion to reconsider, nullifying the March 24, 2006 Order due to counsel substitution defects.
August 11, 2006: RTC adopted the Hatol as its final decision, finding complete compliance with the compromise terms.
February 20, 2007: RTC denied reconsideration by James Harper (Francisco’s legal representative), upholding adoption of the Hatol as final and executory.
June 26, 2007: Writ of Execution issued; new owner’s copy of TCT No. 202978 delivered to spouses Ibañez.

October 29, 2009: CA granted heirs’ petition for certiorari, set aside the August 11, 2006 and February 20, 2007 Orders, and reinstated the March 24, 2006 Order lifting status quo.
September 29, 2010: CA denied spouses Ibañez’ motion for reconsideration.
February 15, 2017: Supreme Court rendered decision in G.R. No. 194272.