Case Digest (G.R. No. L-41621)
Facts:
In Pastora Valmonte, Jose de Leon and Joaquin Valmonte v. Court of Appeals, Philippine National Bank, Artemio Valenton and Areopagita J. Joson, petitioners Pastora Valmonte, her husband Jose de Leon and her father Joaquin Valmonte challenged the validity of an extrajudicial foreclosure and subsequent transfer of three parcels of land in Jaen, Nueva Ecija. On November 5, 1951, Joaquin sold the 70.6-hectare property to Pastora, who on November 12, 1951 obtained a ₱16,000 crop loan from PNB and executed a Real Estate Mortgage over the same lots. On September 19, 1952, Pastora deputized Virginia V. del Castelo to borrow an additional ₱5,000 from PNB under a second mortgage. After notice was duly published and posted, PNB foreclosed the ₱5,000 mortgage on August 19, 1954, as the sole bidder, and acquired the parcels. The one-year redemption period expired August 19, 1955. Following competing purchase offers, petitioners secured an extension to December 31, 1955 to redeem but failed.Case Digest (G.R. No. L-41621)
Facts:
- Sale and Initial Mortgage
- On November 5, 1951, Joaquin Valmonte sold three parcels (70.6 ha) in Jaen, Nueva Ecija to his daughter Pastora Valmonte.
- On November 12, 1951, Pastora obtained a P16,000 crop loan from PNB and executed a real estate mortgage over the same parcels (TCT No. NT-10423).
- Second Loan, Mortgage, and Foreclosure Notices
- On September 19, 1952, Pastora, then single, gave a special power of attorney to Virginia del Castelo to borrow P5,000 from PNB; Castelo executed a separate mortgage.
- June 14, 1954: PNB sent notice of extrajudicial sale for the P5,000 mortgage; published July 19, 26 and August 2, 1954 in Nueva Era and posted in six public places.
- August 19, 1954: Auction conducted by Deputy Sheriff; PNB sole bidder at P5,524.40; certificate of sale issued; one-year redemption period to August 19, 1955.
- Offers, Extension, and Transfer to Valenton
- Late 1955: Offers to purchase ranged P27,000–P35,000; Joaquin requested extension to repurchase at P35,000.
- PNB’s Board extended redemption to December 31, 1955; appellants failed to redeem.
- January 3–6, 1956: Artemio Valenton paid P35,000; PNB executed deed of absolute sale and affidavits; TCT No. NT-18901 issued in Valenton’s name.
- Judicial Proceedings
- August 1, 1958: Plaintiffs filed complaint to annul foreclosure, recover property, damages; defendants counterclaimed.
- January 27, 1968: CFI dismissed complaint and counterclaim.
- March 24, 1975: Court of Appeals affirmed.
- February 18, 1999: Supreme Court denies Rule 45 petition.
Issues:
- Validity of Extrajudicial Foreclosure Sale
- Whether publication and posting complied with Act 3135.
- Effect of conducting sale on a declared holiday and adequacy of bid price.
- Authority of the sheriff and burden of proof on mortgagors.
- Merger of Mortgages
- Whether the P16,000 and P5,000 mortgages merged into one indivisible obligation upon the second mortgage’s execution.
- Pactum Commissorium
- Whether PNB’s failure to foreclose the senior mortgage constituted a prohibited automatic acquisition of ownership.
- Validity of Transfer to Valenton
- Whether transfer of title to Valenton was void due to an outstanding annotation of the unextinguished mortgage.
- Denial of Motion to Amend
- Whether the trial court erred in refusing leave to amend the complaint to conform to evidence.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)