Case Digest (G.R. No. 132887)
Facts:
The Manila Banking Corporation v. Edmundo S. Silverio and the Court of Appeals, G.R. No. 132887, August 11, 2005, Supreme Court Second Division, Chico‑Nazario, J., writing for the Court.Petitioner The Manila Banking Corporation (TMBC) filed a collection suit with application for preliminary attachment against Ricardo C. Silverio, Sr. and Delta Motors Corporation in the Regional Trial Court (RTC) of Makati (Civil Case No. 90‑513). On July 2, 1990, by order of Branch 62, notice of levy on attachment and writ of attachment were annotated on Transfer Certificates of Title (TCTs) Nos. 31444 (452448) and 45926 (452452), covering two parcels in La Huerta, Paranaque City that were of record in the name of Purificacion Ver (and alleged to be owned by Ricardo, Sr. at the time).
On September 11, 1989, a deed of sale was dated transferring those parcels from Ricardo, Sr. to his nephew, Edmundo S. Silverio; the deed was produced in the proceedings but was not shown to have been notarized or registered contemporaneously. TMBC obtained a favorable decision in its collection suit on March 29, 1993; that judgment was taken up for review to the Court of Appeals.
On July 22, 1993, Edmundo asked TMBC to cause cancellation of the annotations because, he alleged, the properties had been sold to him before the July 1990 levy. After TMBC did not act, Edmundo filed on December 17, 1993 a petition in the RTC of Makati for cancellation of the notice of levy on attachment and writ of attachment on the two TCTs, alleging the September 1989 sale divested Ricardo, Sr. of ownership before the levy. TMBC answered and filed a compulsory counterclaim, asserting the 1989 sale was void or simulated.
After trial, on May 2, 1995 the RTC, Branch 145, dismissed Edmundo’s petition and likewise dismissed TMBC’s counterclaim for lack of merit, finding the deed simulated. On appeal, the Court of Appeals reversed and ordered the Register of Deeds of Paranaque City to cancel the notice of levy and writ of attachment (Decision dated October 17, 1997; Resolution denying reconsideration dated February 25, 1998). TMBC filed a petition for review on certiorari under Rule 45 to the Supreme Court, challenging the ...(Pro-only)
Issues:
- May TMBC, as a judgment creditor and a third person, question the validity of the September 11, 1989 sale between Ricardo, Sr. and Edmundo on the ground of absolute simulation?
- Was the September 11, 1989 sale between Ricardo, Sr. and Edmundo absolutely simulated and therefore void ab initio such that the July 2, 1990 levy on the titles was valid?
- Did the Court of Appeals err in ordering cancellation of the notice of levy and writ of attachment...(Pro-only)
Ruling:
- (Pro-only)
Ratio:
- (Pro-only)
Doctrine:
- (Pro-only)