G.R. No. 90639 - Testate Estate of Lim vs. City of Manila

The late Concordia T. Lim secured a real estate loan amounting to P875,488.54 from the Government Service Insurance System (GSIS).
To secure this loan, a mortgage was constituted over two parcels of land (initially under Transfer Certificates of Title Nos. 64075 and 63076, later changed to TCT Nos. 125718 and 125719) with a three-story building located at 810 Nicanor Reyes St., Sampaloc, Manila.
Upon Lim’s failure to pay the loan, the mortgage was extrajudicially foreclosed, and the properties were sold at a public auction where the GSIS emerged as the highest bidder.
After Lim did not exercise her right of redemption, the titles were consolidated in favor of the GSIS in 1977.
Pursuant to Resolution No. 188 by the GSIS Board of Trustees dated March 29, 1979, the estate of Lim, represented by her administratrix Ernestina Crisologo Jose, was permitted to repurchase the foreclosed properties.
A Deed of Absolute Sale was executed on April 11, 1979, formalizing the repurchase by Lim’s estate.

The City Treasurer of Manila required Lim’s estate to settle the real estate taxes for the years 1977, 1978, and the first quarter of 1979 amounting to P67,960.39 as a pre-condition for transferring the titles.
Lim’s estate paid the said amount under protest.
Subsequent to the payment, demand letters were sent to both the GSIS and the City Treasurer of Manila seeking reimbursement, but both parties refused to refund the taxed amount.

On March 14, 1980, Lim’s estate filed an action before the Regional Trial Court of Manila to recover the sum of money equivalent to the taxes paid under protest.
During the pendency of the case, it was admitted that the foreclosed properties had been sold to another person through the administratrix.
The lower court dismissed the complaint, holding that the proper venue was the Local Board of Assessment Appeals under Section 30 of the Real Property Tax Code for matters concerning protested tax assessments.
The lower court also cited, by way of obiter dictum, the ruling in City of Baguio v. Busuego to support the imposition of the tax, noting that the contractual clause in the Deed of Sale imposed liability on the vendee for “any and all the taxes… relative to the execution and/or implementation” of the transaction.

Whether the trial court had jurisdiction to try an action for refund or reimbursement of real estate taxes paid under protest, despite the administrative remedy provided under Section 30 of the Real Property Tax Code.

Whether the plaintiff-appellant (Lim’s estate) is entitled to recover the amount paid under protest, given that it did not hold beneficial use of the property during the periods in question.
Whether the contractual clause in the Deed of Sale can be interpreted to impose liability on the vendee for the overdue real estate taxes for the years 1977, 1978, and the first quarter of 1979.

Whether the plaintiff-appellant retains the necessary standing (personality to sue) for a refund even after the transfer of the property title to a subsequent buyer.