Case Digest (G.R. No. 159746)
Facts:
- Petitioners: Spouses Ramon Mendiola and Araceli N. Mendiola.
- Respondents: Honorable Court of Appeals, Pilipinas Shell Petroleum Corporation, and Tabangao Realty, Inc.
- On July 31, 1985, Pilipinas Shell entered into a distribution agreement with Pacific Management & Development, owned by Ramon Mendiola.
- To secure obligations, petitioners executed a real estate mortgage on August 1, 1985, covering their property in Parañaque, Rizal.
- Following Pacific's default, Shell initiated extrajudicial foreclosure proceedings in April 1987.
- The auction occurred on May 14, 1987, but the petitioners were unaware and later found their property sold to Tabangao Realty, Inc. for P670,000.00.
- After applying the sale proceeds, a deficiency of P170,228.00 remained, leading Shell to file a collection suit against Ramon in the RTC of Manila (Civil Case No. 87-41852).
- Ramon counterclaimed, asserting the foreclosure was invalid and in bad faith.
- On March 22, 1988, petitioners filed a separate action in the RTC of Makati to annul the foreclosure (Civil Case No. 88-398).
- Shell and Tabangao moved to dismiss the Makati case, citing the pendency of the Manila case, but the Makati RTC denied these motions.
- The Manila RTC affirmed the validity of the foreclosure on July 22, 1994.
- On February 3, 1998, the Makati RTC declared the foreclosure void due to lack of an actual auction and due process violations.
- Shell's motion for reconsideration was denied, leading to an appeal to the Court of Appeals.
- The CA denied the petitioners' motion to dismiss the appeal and their motion for reconsideration, prompting the petitioners to file a petition for certiorari, mandamus, and prohibition.
Issue:
- (Unlock)
Ruling:
- The Supreme Court ruled that the petition for certiorari, mandamus, and prohibition lacked merit.
- The appeal by Shell and Tabangao from the denial of their motion for reconsideratio...(Unlock)
Ratio:
- Section 1, Rule 41 of the 1997 Rules of Civil Procedure generally prohibits appeals from the denial of a motion for reconsideration, but this does not apply to final orders or judgments.
- The denial of a motion for r...continue reading
Case Digest (G.R. No. 159746)
Facts:
The case involves the petitioners, Spouses Ramon Mendiola and Araceli N. Mendiola, against the respondents, the Honorable Court of Appeals, Pilipinas Shell Petroleum Corporation, and Tabangao Realty, Inc. The events leading to this case began on July 31, 1985, when Pilipinas Shell entered into a distribution agreement with Pacific Management & Development, a sole proprietorship owned by Ramon Mendiola. To secure the performance of obligations under this agreement, the petitioners executed a real estate mortgage on August 1, 1985, covering their property in Parañaque, Rizal. Following Pacific's default on its obligations, Shell initiated extrajudicial foreclosure proceedings in April 1987.
On May 14, 1987, the scheduled auction for the property took place, but the petitioners, who were present at the venue, did not witness the auction. They later discovered that their property had been sold to Tabangao Realty, Inc. for P670,000.00, surpassing Shell's bid of P660,000.00. After applying the sale proceeds to Pacific's obligations, a deficiency of P170,228.00 remained unpaid, prompting Shell to file a collection suit against Ramon in the Regional Trial Court (RTC) of Manila, which was docketed as Civil Case No. 87-41852.
In response, Ramon filed an answer with a counterclaim, asserting that the foreclosure was invalid and conducted in bad faith. Subsequently, on March 22, 1988, the petitioners filed a separate action in the RTC of Makati to annul the extrajudicial foreclosure, which was assigned Civil Case No. 88-398. Both Shell and Tabangao moved to dismiss the Makati case, citing various grounds, including the p...