Title
ASB Realty Corp. vs. Espenesin
Case
G.R. No. 207059
Decision Date
Aug 19, 2020
ASB Realty's CCTs altered by Register of Deeds without court order; SC ruled respondent liable for gross negligence, applying res judicata due to prior case resolution.

Case Summary (G.R. No. 207059)

Relevant Agreements and Actions

Due to its financial predicament, ASB Realty entered a Memorandum of Agreement (MOA) with Malayan Insurance Co., Inc. (MICO) on April 30, 2002, wherein MICO would develop the project as Malayan Plaza. The MOA stipulated that ASB Realty would retain certain condominium units and parking spaces, which were originally listed in multiple schedules within the MOA.

Issuance of Condominium Certificates

On March 11, 2015, the Register of Deeds of Pasig City, Espenesin, issued Condominium Certificates of Title (CCTs) in the name of ASB Realty Corporation. However, this issuance was followed by an alteration where the name of ASB was removed and replaced by MICO’s name without any court order, leading to ASB’s claim of wrongful alteration of ownership.

Legal Action and Ombudsman Decision

In response to the alteration, ASB Realty filed a complaint for falsification and violation of certain anti-graft provisions against Espenesin at the Office of the Ombudsman. Espenesin defended his actions, claiming to have made corrections under the guidance of Atty. Francis Serrano. The Ombudsman dismissed the complaint, concluding there was insufficient evidence of falsification, determining that alterations made before the entry into the registration book were permissible.

Court of Appeals Ruling

ASB Realty then sought a review from the Court of Appeals, which upheld the Ombudsman’s decision. The CA ruled that Espenesin acted in good faith and that the ownership issues were to be resolved through appropriate legal channels rather than through administrative proceedings.

Legal Issues Under Consideration

The primary legal issue examined was whether Espenesin's actions constituted administratively actionable misconduct for altering the CCTs. This consideration was influenced by parallel proceedings in G.R. Nos. 192685 and 199115, wherein Espenesin was found administratively liable for similar acts.

Res Judicata Principle

The Court highlighted the principles of res judicata, asserting that the findings in the previous cases concerning Espenesin’s actions were binding. The elements of identity of parties, subject matter, and causes of action were

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