Title
Anama vs. Court of Appeals
Case
G.R. No. 128609
Decision Date
Jan 28, 2004
Anama failed to pay installments under a land purchase contract with PSBank, leading to rescission. SC upheld PSBank's actions, ruling payments applied to interest, not principal, and no due process violation.

Case Summary (G.R. No. 128609)

Facts of the Case

On March 24, 1973, Douglas F. Anama entered into a Contract to Buy with Philippine Savings Bank, which entailed the purchase of a parcel of land previously owned by Anama's parents. Following failure to pay a mortgage on the property, PSBank foreclosed it. Under the contract, Anama was to pay a total of P135,000, with installment provisions including forfeiture of amounts paid upon default. Anama initially paid two installments but defaulted on the third installment due on April 30, 1973. After a series of partial payments and requests for extensions, PSBank cancelled the contract and sold the property to spouses Co and Baria.

Trial Court Proceedings

Anama filed a complaint in the Regional Trial Court of Pasig seeking to declare the deed of sale null, cancel the title issued to the spouses, and for specific performance and damages. The RTC required both parties to submit memoranda after trial. However, delays in transcription of stenographic notes hampered progress, leading to a tortuous appeal process. The RTC eventually ruled in favor of PSBank, validating the bank's rescission of the contract, arguing Anama's failure to adhere to payment terms justified such action.

Appellate Proceedings

Anama appealed the RTC's decision. However, the Court of Appeals dismissed the appeal due to Anama’s failure to include a proper assignment of errors in his appellant’s brief. The appellate court reasoned that the trial court's proceedings were not fundamentally flawed by the absence of submitted memoranda, deeming these non-essential elements in the trial process. Anama’s Motion for Reconsideration failed, prompting him to seek relief from the Supreme Court.

Supreme Court Analysis

The Supreme Court examined whether Anama was denied due process when the trial court rendered judgment without his memorandum. It concluded that while memoranda are useful, their submission is not mandatory, and non-submission does not invalidate court processes if due representation was otherwise provided. The Court reiterated that due process is fundamentally about the opportunity to be heard and that Anama had participated fully in the trial.

Payment Obligations and Contract Validity

The Court addressed the legitimacy of the payments Anama claimed to have made towards the third installment, including amounts received by PSBank labeled for penalties. It reiterated that the

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