Case Digest (G.R. No. 136368)
Facts:
In 1981, Jaime C. Tan sold Lot No. 645-C, a 34,829 sqm parcel in Bunawan, Davao City, to spouses Jose A. Magdangal and Estrella Magdangal for ₱59,200, granting himself a one-year option to repurchase. Tan failed to redeem the property and died in January 1988. His heirs, represented by Jaime V. Tan, Jr., filed a reformation suit (RTC Case No. 19049-88) in May 1988, alleging that the transaction was in truth an equitable mortgage, not an absolute sale. In June 1991, the Regional Trial Court declared the sale an equitable mortgage and ordered Tan, Jr. to pay the purchase price plus 12% interest within 120 days after finality of judgment, upon which the Magdangals’ title would be canceled and Tan’s original title reinstated. The Court of Appeals affirmed on September 28, 1995, and its Entry of Judgment was recorded on March 13, 1996. The Magdangals then moved for writ of possession, claiming the redemption period had expired 15 days after October 5, 1995, while Tan, Jr. deposited
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Case Digest (G.R. No. 136368)
Facts:
- Subject Property and Original Agreement
- Lot No. 645-C (34,829 sqm) in Bunawan, Davao City, titled in TCT No. T-72067 under Jaime C. Tan and Praxedes V. Tan.
- January 22, 1981: Tan executes a Deed of Absolute Sale for ₱59,200 in favor of spouses Jose and Estrella Magdangal, with a simultaneous repurchase option valid for one year.
- Failure to Redeem and Judicial Proceedings
- Tan fails to redeem within the one-year period and dies January 4, 1988.
- May 2, 1988: Heirs (later substituted by Jaime V. Tan, Jr.) file Civil Case No. 19049-88 (RTC Davao) seeking reformation of the deed into an equitable mortgage. Magdangals secure cancellation of TCT T-72067 and registration of TCT T-134470 in their names.
- June 4, 1991: RTC Branch 11 renders judgment:
- Deed reformed into equitable mortgage.
- Tan, Jr. ordered to pay ₱59,200 plus 12% interest from May 2, 1988, within 120 days after finality.
- Upon payment, cancel Magdangals’ TCT T-134470 and reinstate TCT T-72067.
- September 28, 1995: Court of Appeals (CA) Special Third Division affirms RTC decision. Parties receive the decision on October 5, 1995.
- March 13, 1996: CA clerk enters the appellate decision in the Book of Entries of Judgment, stating it became final and executory on October 21, 1995.
- March 21, 1996: Magdangals file in the RTC a Motion for Consolidation and Writ of Possession, asserting the 120-day redemption period expired.
- March 27 and April 16, 1996: Tan, Jr. files in CA a Motion for Execution and in RTC a Manifestation and Motion, depositing redemption price plus interest (₱116,032) with the RTC clerk on April 17, 1996.
- June 10, 1996 (RTC Order):
- Denies Magdangals’ motion for possession.
- Considers April 17 deposit as full payment within 120 days, orders registry adjustments restoring TCT T-72067.
- Reckons the 120-day period from the CA Entry of Judgment (March 13, 1996).
- July 24, 1996: RTC denies Magdangals’ motion for reconsideration.
- July 15, 1998 and November 9, 1998: CA denies Tan, Jr.’s petition for certiorari and his motion for reconsideration, prompting Supreme Court review.
Issues:
- From what date does the 120-day redemption period run—receipt of the CA decision or the official Entry of Judgment?
- Which rule on finality and execution of judgments governs—the old Rule 51 (Revised Rules of Court) or the new Section 1, Rule 39 (1997 Revised Rules)?
- Whether retroactive application of the 1997 procedural rule deprived petitioner of his vested right to redeem.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)