Title
Supreme Court
Bulawan vs. Aquende
Case
G.R. No. 182819
Decision Date
Jun 22, 2011
Ownership dispute over Lot No. 1634-B; CA annulled RTC's final decision due to Aquende's indispensability and due process violation.

Case Summary (G.R. No. 182819)

Background of the Case

This case involves a petition for review on the decision by the Court of Appeals that annulled a prior judgment by the Regional Trial Court in Legazpi City. The conflict centers around ownership of Lot No. 1634-B, with Bulawan claiming ownership based on her purchase from the Yaptengco brothers, who purportedly inherited the property from Yap Chin Cun. Respondent Aquende asserts ownership based on a title he acquired, arguing that the trial court's decision adversely affected him without due process.

Trial Court's Initial Decision

On November 26, 1996, the trial court ruled in favor of Bulawan, declaring her the rightful owner of Lot 1634-B and voiding other titles claiming rights over it. Following this decision, Yap appealed; the appeal was dismissed on July 20, 2001, thus rendering the trial court's decision final and executable. A writ of execution was issued on July 19, 2002.

Aquende's Intervention

Aquende, who learned of the writ indirectly and alleged he had no notice of the litigation affecting his property, filed a Third Party Claim. He argued that he was an indispensable party not brought into the original case and thus the trial court lacked jurisdiction over him. The trial court denied his request, stating it had lost jurisdiction over the case.

Petition for Annulment by Aquende

Aquende subsequently petitioned the Court of Appeals for annulment of the trial court's judgment on the grounds of lack of jurisdiction and extrinsic fraud, asserting that he was not afforded the opportunity to protect his property rights in the initial proceedings. He alleged collusion between Bulawan and the trial judge.

Court of Appeals’ Ruling

The Court of Appeals found merit in Aquende's claims, ruling that he was indeed an indispensable party who should have been impleaded in the original case, rendering the trial court’s decision void. It emphasized that without proper jurisdiction over Aquende, the trial court acted beyond its authority. It reinstated Aquende's title and ordered the earlier cancellation of certificates of title nullified.

Petitioner’s Arguments

Bulawan contended that the Court of Appeals improperly annulled a final decision, arguing that the appellate court could not consider Aquende an indispensable party. She claimed that he was not affected by the ruling since his property was distinct from the subject matter of the original lawsuit.

Supreme Court's Determination

The Supreme Court upheld the appellate court's decision, reaffirming that annulment of judgment is a remedy available regardless of whether the decision had been

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