Title
Angeles vs. Intermediate Appellate Court
Case
G.R. No. 75009
Decision Date
Sep 29, 1989
Spouses owned a lot; heirs disputed sale, partition, and mortgage. Writ of possession invalid against non-party heirs; mortgagee not in good faith due to prior knowledge of claims. Certiorari upheld as proper remedy.

Case Summary (G.R. No. 75009)

Antecedent Facts

On January 3, 1960, Pablo Cayetano passed away, leaving the property jointly owned with Filomena. By an extrajudicial settlement executed on April 10, 1961, Filomena and her children, except for one who had predeceased Pablo, became the co-owners of the property. Following the registration of this settlement, Transfer Certificate of Title (TCT) No. 42347 was replaced with TCT No. 68065 in their names. Filomena later sold half of this property to her son Juanito on November 10, 1980, leading to further transactions and conflict regarding ownership and possession.

Subsequent Transactions and Legal Actions

Juanito Cayetano later forged an Agreement of Partition of Common Property, claiming a larger ownership interest in the property. Despite his mother's ongoing lawsuit to annul the sale to him, he transferred his half-share to Bartolome Guevarra on December 22, 1981. Juanito then borrowed funds from Francisco M. Angeles to redeem the property from Guevarra and, in turn, mortgaged it to Angeles.

Heirs of Pablo, upon learning of these transactions, disowned the partition agreement as a forgery and demanded that Juanito fulfill his mortgage obligations. Angeles was informed of their claims but proceeded with the foreclosure of the mortgage, purchasing the property at a public auction on June 28, 1982.

Legal Proceedings

Subsequent to the foreclosure, private respondents (Filomena’s children excluding Juanito) initiated a civil action against him, shaking the foundation of the property transaction. Concurrently, they filed criminal complaints against Juanito and Angeles concerning the falsification of documents. On August 13, 1982, Filomena passed away, complicating matters further.

Trial Court and Court of Appeals Decisions

The Regional Trial Court later issued a writ of possession allowing Angeles to eject the private respondents from the property. When the private respondents challenged this order, claiming they were not parties to the mortgage obligation, the Intermediate Appellate Court ruled in their favor, finding that the writ of possession could not be enforced against them. The Court held that the private respondents had established adverse possession and were not parties in the mortgage or foreclosure proceedings.

Legal Arguments and Findings

Angeles contested this decision, asserting that he acted as an innocent mortgagee unaware of any claim on the property and argued that the lis pendens notices recorded later could not affect his rights. However, the Court emphasized that upon receiving the demand letter regarding the alleged forgery, he should have conducted further inquiries, thus negating his claim of good faith.

The Court also clarified that the original ownership rights of the private respondents took precedence because they filed an ac

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