Title
Campos vs. Bank of the Philippine Islands
Case
G.R. No. 207597
Decision Date
May 30, 2016
Campos mortgaged land, built improvements, defaulted on loan; Bank foreclosed, obtained writ of possession. SC ruled writ issuance ministerial, good faith claim irrelevant, no due process violation.
A

Case Summary (G.R. No. 207597)

Background Facts

In 1980, Campos mortgaged 14 lots to the Far East Bank and Trust Company (now merged with BPI) to secure a loan of one million pesos. Among these lots was Lot No. 7-G-4. In the late 1980s, Campos constructed a building on the subject lot, allegedly with the bank’s knowledge. However, due to business failures, Campos defaulted on his loan, which subsequently grew to eleven million pesos, prompting the Bank to seek foreclosure.

Foreclosure Process

BPI became the highest bidder during a public auction with a bid of 11.3 million pesos and subsequently consolidated ownership when Campos failed to redeem the properties within the allowed period. BPI filed for a writ of possession, which the Regional Trial Court (RTC) granted on August 7, 2006. The implementation of this writ occurred on September 8, 2006.

Motion for Suspension of Writ of Possession

Campos filed a motion to suspend the writ's implementation on February 12, 2007, asserting he had constructed the building in good faith and demanded reimbursement for its value based on the Civil Code Articles 448, 450, and 546. BPI opposed, arguing that per their mortgage agreement, they had no obligation to reimburse Campos for improvements made post-mortgage.

RTC's Denial of Campos' Motion

The RTC denied Campos' motion on April 16, 2007, explaining that, after the redemption period expired, their duty to issue a writ of possession became ministerial. It noted that any claim for reimbursement should be pursued in a separate action, not in this non-litigious proceeding.

Motion for Reconsideration and Court of Appeals Intervention

Campos moved for reconsideration, referencing Policarpio v. Court of Appeals, where evidence was allowed concerning good faith. However, the RTC denied this on September 10, 2007, stating that Campos' motion came long after the writ had become final.

CA Dismissal of Petition

Campos filed a petition for certiorari with the Court of Appeals (CA), which dismissed the petition on July 24, 2012, concluding no grave abuse of discretion existed on the part of the RTC. The CA noted that BPI had the right to demand possession post-redemption and reiterated that Campos's remedy was to file a petition to challenge the writ after being given possession, not beforehand.

Arguments in the Petition

In the Supreme Court petition, Campos reiterated his right to prove he was a builder in good faith and argued about the assessed values of the lots compared to the inflated original loan amount. He claimed he was denied notice of the proceedings, which he argued constituted undue enrichment of the Bank.

Counterarguments by Houston and BPI

Houston filed comments challenging Campos' good faith, asserting that all future improvements were included under the mortgage agreement. BPI reinforced the notion that Campos was mistaken regarding the loan valuation and improperly sought relief through the suspension of the writ of possession.

Supreme Court's Ruling

The Supreme Court denied Campos' petition, maintaining that it is not a

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