G.R. No. 127941 - Toledo-Banaga vs. Damalerio

The case concerns a redemption of property originally foreclosed and sold to private respondent Candelario Damalerio.
Petitioner Biblia Toledo-Banaga filed an action for redemption, but the trial court ruled she lost her right to redeem the property.
Certificates of Title (TCTs) were issued to Damalerio, against which Banaga annotated a notice of lis pendens on March 3, 1983.

On appeal, the Court of Appeals (CA) reversed the trial court decision, allowing Banaga a period to redeem the property.
Private respondent’s petition to the Supreme Court (SC) was dismissed, making the CA decision final.
On June 11, 1992, Banaga attempted to redeem the property with financing assistance from co-petitioner Jovita Tan.

The trial court, on August 7, 1992, upheld Banaga's redemption and ordered the Register of Deeds to cancel Damalerio’s TCTs and issue new titles in Banaga's name.
Private respondent’s motion for reconsideration was denied January 4, 1993.
Damalerio filed a petition for certiorari with the CA, resulting in a temporary restraining order (TRO) enjoining execution of the trial court orders.
Despite lis pendens on the title, Banaga sold the property to Tan on January 7, 1993; Tan subdivided the property under Damalerio’s name, showing awareness of the ownership dispute.
Titles were issued to Tan on March 24, 1993, with lis pendens annotations.

On October 28, 1993, the CA set aside the trial court’s orders and declared Damalerio absolute owner for failure of Banaga to redeem within the 30-day period.
This decision became final after SC dismissed Banaga’s petition for review.

The trial court issued a writ of execution on December 27, 1994, ordering the cancellation of titles in Banaga's and Tan's names and reinstatement of Damalerio's titles.
The Register of Deeds refused, citing the need to first surrender titles issued to Tan.
The trial court denied the motion to cite the Register of Deeds in contempt and ruled the remedy to be by consulta to the Land Registration Commissioner.
The trial court also denied a writ of possession to Damalerio, ruling that a separate action was needed.

The CA granted Damalerio’s petition for certiorari and mandamus and set aside the trial court’s rulings denying contempt citation and writ of possession.
The CA declared titles issued to Banaga and Tan null and void and ordered the issuance of new titles to Damalerio.
The CA ordered the issuance of writs of execution and possession in favor of Damalerio.

Petitioners challenged the CA decision, arguing that Tan was a buyer in good faith and that the surrender of titles should precede issuance of new titles.
The Supreme Court noted discrepancies in the petition but still proceeded to rule on the merits.

Whether private respondent Damalerio is the absolute owner of the property and entitled to have the titles issued in his name.

Whether petitioner Tan, as a buyer of the property, is a buyer in good faith or bad faith.

Whether the execution of final judgment requiring issuance of titles to Damalerio can be delayed or prevented due to the refusal to surrender titles by the registered owner (Tan).

Whether the remedy of private respondent to effect cancellation of the erroneous titles is by consulta to the Land Registration Commissioner or through enforcement by writ of execution and mandamus.

Whether the court’s refusal to grant writ of possession to Damalerio was proper.

Whether the doctrine of res judicata applies to bar further litigation on ownership.