Title
Conde vs. Intermediate Appellate Court
Case
G.R. No. 70443
Decision Date
Sep 15, 1986
Marcelo Gutierrez sued for land possession; courts ruled in his favor. Petitioners alleged fraud, but Supreme Court dismissed, citing intrinsic fraud and lack of jurisdiction to annul appellate decisions.
A

Case Summary (G.R. No. 37044)

Procedural history in the trial court and appellate court

The petitioners originally filed a complaint in the Regional Trial Court of Capas seeking, among other reliefs, annulment of an earlier appellate judgment that ordered turnover of ownership and possession of disputed property to Marcelo Gutierrez. The petitioners alleged that Gutierrez obtained ownership by fraud by fabricating filiation to the alleged deceased owners. The RTC dismissed the complaint for lack of jurisdiction to annul a Court of Appeals judgment. The petitioners then sought relief from the Intermediate Appellate Court by petition for certiorari, mandamus and injunction, which the IAC dismissed for lack of jurisdiction and later on the merits, reasoning that only the Supreme Court could annul a decision of the Court of Appeals and that the alleged fraud was, in any event, only intrinsic.

Supreme Court remand to the Intermediate Appellate Court

The Supreme Court intervened and remanded the action to the Intermediate Appellate Court for decision on the merits, concluding that the IAC erred in declaring that the annulment action should have been filed with the Supreme Court. The Supreme Court observed that Section 9 of B.P. No. 129 vests in the Intermediate Appellate Court exclusive jurisdiction over actions for annulment of judgments of regional trial courts and that, given the procedural posture of the case (an appellate judgment rendered on review of a trial court decision), the IAC should hear and decide the annulment action.

The Intermediate Appellate Court’s decision on remand

On remand the IAC dismissed the petition for lack of jurisdiction and for lack of merit. With respect to jurisdiction, the IAC reasoned that because the annullability of a decision proceeds in stages (Metropolitan Trial Court → Regional Trial Court → Court of Appeals), logically a final appellate judgment should be annulable only by the Supreme Court and the IAC lacked power to annul its own decision absent an express grant in B.P. No. 129. On the merits the IAC concluded that the alleged fraud was intrinsic — consisting of fabricated documents and evidence regarding filiation — and thus insufficient to support annulment of the judgment.

Supreme Court’s analysis of the IAC’s remand decision

The Supreme Court criticized the IAC for revisiting jurisdiction when the remand order required a merits determination, and emphasized the organizational role of the IAC in synthesizing facts and issues for the Court. The Court noted that once it remanded the case for decision on the merits, the IAC should have confined itself to resolving the substantive allegations of fraud rather than reasserting lack of jurisdiction. The Court reiterated the limited function of the Supreme Court to review questions of law, while recognizing instances where further fact-finding by an intermediate appellate tribunal is desirable.

Determination on the nature of the alleged fraud

The Supreme Court reviewed the allegations and the record and concluded that, even assuming the petitioners’ factual allegations were true, the fraud alleged was intrinsic in character. The Court explained the conventional distinction: extrinsic fraud prevents a party from having a trial or

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