Case Summary (G.R. No. 143530)
Background of the Case
- Sea Foods Corporation Inc. (SFC) was the registered owner of Lot 300, a parcel of land measuring 61,736 square meters in Zamboanga City, under Transfer Certificate of Title No. T-3182.
- In the early 1960s, petitioners, including Gellia Altizo and others, began occupying a portion of Lot 300.
- In 1989, the petitioners formed the United Muslim Christian Urban Poor Association, Inc. (UMCUPAI) to negotiate for the acquisition of Lot 300.
Agreement Between SFC and UMCUPAI
- On October 4, 1991, SFC and UMCUPAI entered into a "Letter of Intent" outlining the intention to sell Lot 300 to UMCUPAI at a price of P105.00 per square meter.
- The agreement specified that UMCUPAI would raise the necessary funds for the purchase and that an Absolute Deed of Sale would be executed upon full payment.
Subsequent Transactions and Title Issuance
- SFC subdivided Lot 300 into three lots: Lot 300-A, Lot 300-B, and Lot 300-C, with new titles issued for each.
- On January 11, 1995, SFC sold Lot 300-A to UMCUPAI.
- On July 20, 1995, SFC sold Lot 300-C to BRYC-V Development Corporation (BRYC-V), despite objections from UMCUPAI.
Legal Proceedings Initiated by BRYC-V
- Following the sale, BRYC-V requested petitioners to vacate Lot 300-C, which they refused.
- BRYC-V subsequently filed a complaint for unlawful detainer against the petitioners in the Municipal Trial Court (MTC) of Zamboanga City.
MTC and RTC Decisions
- The MTC ruled in favor of BRYC-V on November 11, 1996.
- The Regional Trial Court (RTC) reversed the MTC's decision, asserting that the Letter of Intent granted UMCUPAI a preferential right to purchase Lot 300-C.
Court of Appeals Ruling
- BRYC-V appealed to the Court of Appeals, which reversed the RTC's decision on March 8, 1999.
- The appellate court held that BRYC-V, as the registered owner, had the right to possess Lot 300-C, and the Letter of Intent did not transfer ownership or possession to the petitioners.
Petitioners' Arguments and Final Ruling
- Petitioners contended that the Letter of Intent granted them the right to remain on Lot 300-C, similar to the sale of Lot 300-A to UMCUPAI...continue reading