Case Digest (G.R. No. 1002)
Facts:
In 1990, petitioner Magdalena T. Villasi engaged Fil-Garcia Construction, Inc. (FGCI) to erect a seven-storey condominium at Aurora Boulevard corner N. Domingo Street, Cubao, Quezon City. When Villasi failed to fully pay the P7,490,325.10 contract price, FGCI sued her in Civil Case No. Q-91-8187 before the RTC of Quezon City, Branch 77, for P2,865,000 in unpaid accomplishment billings. Villasi denied liability, claiming she had overpaid and that FGCI completed only 28% of the work. On June 26, 1996, the RTC ruled in FGCI’s favor, awarding unpaid billings, unused materials, moral damages, and attorney’s fees. On November 20, 2000, the Court of Appeals reversed, finding an overpayment of P1,244,543.33 plus P425,004 for materials and imposed liquidated damages. FGCI’s petition to the Supreme Court was dismissed on October 1, 2001, becoming final on November 27, 2001. Villasi then obtained a writ of execution on April 28, 2004, leading the sheriff to levy a building at No. 140 KalayCase Digest (G.R. No. 1002)
Facts:
- Contract and initial collection suit
- In 1990, Magdalena T. Villasi engaged Fil-Garcia Construction, Inc. (FGCI) to build a seven-storey condominium in Cubao, Quezon City, for a contract price.
- Villasi allegedly failed to pay P2,865,000.00 of the accomplishment billings. FGCI filed Civil Case No. Q-91-8187 before the RTC of Quezon City, Branch 77, praying for unpaid billings.
- RTC Decision and appellate proceedings
- On 26 June 1996, the RTC rendered judgment in favor of FGCI ordering Villasi to pay:
- P2,865,000.00 as unpaid accomplishment billings;
- P500,000.00 for unused building materials;
- P100,000.00 as moral damages; and
- P100,000.00 as attorney’s fees.
- FGCI appealed to the Court of Appeals (CA CV-No. 54750). On 20 November 2000, the CA reversed and set aside the RTC decision, holding that Villasi had made an overpayment and ordering FGCI to return:
- P1,244,543.33 as overpayment;
- P425,004.00 for construction materials; and
- Liquidated damages at 1/10 of 1% of the contract price per day of delay.
- Supreme Court petition and execution writ
- FGCI’s petition for certiorari (G.R. No. 147960) was denied for late filing by this Court on 1 October 2001; the entry of judgment became final on 27 November 2001.
- Villasi moved for execution of the CA’s 20 November 2000 decision. On 28 April 2004, the RTC issued a writ of execution.
- Levy on property and third-party claim
- The deputy sheriff levied on a building at No. 140 Kalayaan Avenue (TCT Nos. 379193 & 379194), declared for taxation in FGCI’s name, though the lots were registered in the names of Spouses Filomeno Garcia and Ermelinda Halili-Garcia.
- After posting and publication, a public auction was set for 25 January 2006. The Spouses Garcia filed an affidavit of third-party claim (terceria) and a motion to set aside notice of sale, asserting ownership of the property.
- On 24 February 2005, the RTC suspended the sale; the RTC denied Villasi’s motion for reconsideration on 11 October 2005. Villasi’s certiorari petition to the CA was dismissed on 19 May 2009; the CA denied reconsideration on 28 October 2009.
- Present petition
- Villasi filed this Rule 45 petition for review on certiorari before the Supreme Court, assailing the CA’s decision and resolution.
Issues:
- Whether the Court of Appeals grievously erred in upholding the RTC’s suspension of the sale on execution based on the Spouses Garcia’s affidavit of third-party claim.
- Whether the CA erred in holding there was no basis to pierce the veil of FGCI’s corporate fiction.
- Whether the Branch Sheriff should be directed to file the appropriate notice of levy with the Register of Deeds of Quezon City.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)