Case Summary (G.R. No. 150613-14)
Factual Background
Dycoco allegedly executed a REM in favor of Adelaida, covering a parcel of land in Sta. Cruz, Manila, registered under TCT No. 105730. The mortgage was intended to secure a loan of P250,000.00 payable in six months at an interest rate of 5% per month. Following Dycoco's failure to pay this amount, Adelaida foreclosed the mortgage, leading to the issuance of TCT No. 243525 in her name.
Legal Proceedings Initiated
In response to Adelaida’s complaint for ejectment against Dycoco's attorneys-in-fact, he filed for annulment of the REM and the corresponding transfer of title before the Regional Trial Court (RTC) of Manila. Dycoco's representatives claimed the REM was forged, presenting evidence that Dycoco was working in the U.S. on the date the REM was signed, including his U.S. passport and various official documents.
Initial Rulings
The RTC dismissed Dycoco’s annulment complaint on May 23, 2005, stating that his representatives failed to prove the lack of genuine execution of the REM. The Court of Appeals upheld this dismissal, emphasizing that Dycoco’s absence as a witness diminished the probative value of the evidence presented.
Acknowledgment and Notarization Concerns
The acknowledgment section of the REM was incomplete, lacking the identification of Dycoco before the notary public. As such, the nature of the document only categorized it as a private document, requiring stricter proof standards. Consequently, Adelaida had the burden to prove that Dycoco's signature was genuine, which she failed to do satisfactorily by presenting only a photocopy of the REM.
Burden of Proof and Evidence Presented
Dycoco's attorneys-in-fact provided his U.S. passport and a Special Power of Attorney executed in the U.S. to support their claims. The appellate court found that the absence of Dycoco's direct testimony was detrimental to the case, despite evidence of his non-presence in the Philippines during the purported date of the REM's execution.
Testimony Contradictions
Evelyn Sagalongos testified that Dycoco was present during the REM signing; however, this assertion conflicted with the evidence regarding Dycoco’s travel history as documented in his passport. Her testimony lacked credibility, as Dycoco was not mentioned as a witness in the REM documentation.
Decision of the Court
The Supreme Court ultimately granted Dycoco’s petition, reversing and setting asid
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Case Overview
- The case revolves around a petition for review on certiorari regarding the Court of Appeals’ decision from November 29, 2007, which affirmed the dismissal of an action for annulment of a real estate mortgage and transfer certificate of title sought by petitioner Virgilio Dycoco.
- The main contention is the authenticity of a "Real Estate Mortgage with Special Power to Sell Mortgaged Property without Judicial Proceedings" (REM) executed in favor of respondent Adelaida Orina.
Background of the Case
- On October 9, 1995, Dycoco allegedly executed the REM covering a parcel of land in Sta. Cruz, Manila, registered under Transfer Certificate of Title (TCT) No. 105730 in his name.
- Adelaida claimed that Dycoco was indebted to her for P250,000.00, payable within six months at a 5% monthly interest rate, which led to the execution of the REM.
- Following Dycoco's failure to fulfill his obligation, Adelaida extrajudicially foreclosed the REM, leading to the cancellation of Dycoco’s TCT and issuance of a new title (TCT No. 243525) in her name.
Ejectment Proceedings
- Adelaida, joined by her husband German R. Orina and represented by attorney-in-fact Evelyn M. Sagalongos, filed an ejectment complaint against Dycoco's attorneys-in-fact (his brothers-in-law) who occupied the property.
- In response, Dycoco filed for annulment of the REM and the transfer certificate of title with damages before the Regional Trial Court (RTC) of Manila, claiming forgery of his signature on the REM.
Evidence Presented
- Dycoco’s attorneys-in-fact presented various documents, including:
- His U.S. passport indicating