Title
Gemina vs. Heirs of Espejo, Jr.
Case
G.R. No. 232682
Decision Date
Sep 13, 2021
Dispute over property ownership; Gemina claims possession since 1978, heirs of Espejo assert co-ownership. SC ruled procedural error, remanded for evidence presentation.
property dispute
absence of counsel
evidence ex parte

Case Summary (G.R. No. 232682)

Factual Background

The dispute concerned a parcel identified as located at 156 Session Road, Woodcrest Homes, Talanay, Area B, Batasan Hills, Quezon City (the subject property). Gemina contended that he purchased and continuously possessed the subject property in the concept of an owner since 1978 and offered documents including a Deed of Absolute Sale dated May 16, 1978, a Deed of Conditional Sale dated November 20, 1995, building permits, tax declarations and receipts, photographs of trees he had planted, and association records to prove possession and ownership. The heirs of Espejo asserted that the land was covered by TCT No. RIV786U (93809) in the names of Gerardo V. Espejo, Jr. and Nenafe, and that Gerardo's surviving heirs immediately succeeded to his rights upon his death in 1975.

Procedural History in the Trial Court

The heirs of Espejo initially sent a demand letter dated December 15, 2004, and later filed an action for recovery of possession before the RTC after withdrawing an earlier unlawful detainer complaint filed in the Metropolitan Trial Court. At pre-trial the defendant Gemina personally appeared but his retained counsel failed to attend. The trial court reset the pre-trial and, upon continued absence of counsel, permitted the plaintiffs to present evidence ex parte by Order dated November 26, 2012. Counsel for Gemina later withdrew for health reasons, filed a motion for reconsideration which the trial court denied for lack of a notice of hearing, and the plaintiffs proceeded with ex parte presentation. Gemina subsequently secured the assistance of the Public Attorney’s Office and filed motions for reconsideration, all of which the RTC denied.

Trial Court Ruling

In its September 3, 2013 Decision the RTC found for the plaintiffs by preponderance of evidence, holding that the heirs of Espejo established the identity of the property and their title thereto under the requisites of Article 434. The court accepted documentary proof including a Deed of Absolute Sale in the chain of title, a transfer of rights, tax declarations, TCT 93809, marriage and birth certificates, and testimony of Ma. Teresa R. Espejo. The RTC ordered Gemina and all persons claiming under him to vacate the premises, awarded reasonable compensation of PHP 10,000 per month from March 22, 2006, legal interest at 6% per annum from that date and 12% per annum after finality of judgment, and attorneys’ fees of PHP 10,000.

Court of Appeals Decision

The Court of Appeals affirmed the RTC decision on February 22, 2017, with modifications. The CA ruled that the November 26, 2012 Order allowing ex parte presentation of evidence stood because the Withdrawal of Counsel with Attached Motion for Reconsideration lacked the mandatory notice of hearing required by Sections 4 and 5, Rule 15, and thus the motion was defective. The appellate court also held that objections to identity of the property were waived for not being raised in the answer. The CA reduced the legal interest to 6% per annum throughout pursuant to BSP Resolution No. 796, deleted the award of attorneys’ fees, and denied Gemina’s appeal. Its denial of reconsideration was affirmed in a June 30, 2017 Resolution.

Issues Presented to the Supreme Court

The petition raised principally two issues: whether the Court of Appeals erred in affirming the trial court’s allowance for ex parte presentation of plaintiffs’ evidence despite the defendant’s presence at pre-trial, thereby violating due process; and whether the Court of Appeals erred in affirming judgment despite alleged failure of the respondents to prove the identity of the land as required in an action to recover possession.

Petitioner's Contentions

Gemina argued that the mere absence of his counsel at pre-trial should not ipso facto authorize an order for the plaintiffs’ ex parte presentation because the Rules should give significance to the appearance of parties as well as counsel and because he personally attended the pre-trial. He contended that the withdrawal motion was directed against an interlocutory order and thus could not be treated as a mere scrap of paper for lack of a notice of hearing. He further argued that allowing ex parte evidence presentation would result in a miscarriage of justice and that the identity of the property was not sufficiently established.

Respondents' Contentions

The heirs of Espejo maintained that the absence of notice of hearing in the motion for reconsideration was fatal under Sections 4 and 5, Rule 15, and that Gemina waived defenses not raised in his answer. They argued that the combination of TCT 93809's technical description and Teresa Espejo’s testimony sufficiently proved identity and title, and that the CA correctly modified only the interest rate and deleted attorneys’ fees.

Supreme Court Ruling

The Supreme Court granted the petition. The Court held that where the party-defendant personally appeared at pre-trial, the non-appearance of his counsel did not automatically justify the plaintiffs’ ex parte presentation of evidence. The Court found that the RTC’s November 26, 2012 Order permitting ex parte evidence was unwarranted and prejudicial to Gemina because other remedies were available against counsel’s nonappearance. The Court further held that the Motion for Reconsideration attached to the Withdrawal of Counsel should not have been summarily denied solely for lack of a notice of hearing where the adverse party filed a Comment and had the opportunity to be heard. Because Gemina had been deprived of the chance to present his defense, the Court remanded the case to the RTC for further proceedings to receive evidence.

Legal Basis and Reasoning

The Court relied on a line of precedent beginning with Paredes v. Verano to interpret the then-existing wording of Section 5, Rule 18, and concluded that a stringent, technical application producing forfeiture of a party’s right to be heard should be avoided where other judicial remedies exist. The Court noted that subsequent amendment under A.M. No. 19-10-20-SC clarified that the sanction of ex parte presentation is applicable when both the party and counsel fail to appear. The Court also invoked Preyslers Jr. v. Manila Southcoast Development Corp. to reason that lack of notice of hearing in a motion for reconsideration is cured when the opposing party has an opportunity to file pleadings opposing the motion. With respect to identi

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