Case Summary (G.R. No. 127692)
Key Dates
- 1975: Original mortgage of the parcels by spouses Jesus and Caridad Trocino to Dr. Clarence Yujuico
- July 11, 1988: Auction sale following foreclosure
- December 12, 1989: Sale of parcels by the Trocinos to petitioners
- December 16, 1991: Filing of complaint for specific performance and/or rescission
- January 10, 1992: Summons allegedly served via Caridad Trocino
- March 1993: RTC decision ordering deed of sale and delivery of titles or, alternatively, rescission
- August 29, 1995: RTC order declaring original titles null and void and directing issuance of new titles in favor of petitioners
- March 13, 1996: Respondents’ petition for annulment of judgment filed before the Court of Appeals
- September 30, 1996: Court of Appeals decision annulling RTC judgment
- March 10, 2004: Supreme Court decision affirming the Court of Appeals
Applicable Law
- 1987 Philippine Constitution (decided post-1990)
- Rule 14 (Service of Summons) and Rule 45 (Petition for Review on Certiorari), Rules of Court
- Jurisdictional principles on in personam versus in rem actions
Factual Background
In 1975 Jesus and Caridad Trocino mortgaged two Cebu City parcels, foreclosed in 1988 and acquired by Dr. Yujuico. Before redemption expired, the Trocinos sold the parcels to petitioners on December 12, 1989. Petitioners redeemed from Yujuico but the Trocinos refused to convey titles, prompting the December 1991 complaint for specific performance or rescission and refund of P500,000 with interest.
RTC Proceedings and Judgment
Summons was returned served on January 10, 1992, by serving Caridad Trocino, who purportedly received copies for all heirs. Respondents answered on January 27, 1992, through counsel Atty. Bugarin, verified only by Caridad. After trial, the RTC in March 1993 ordered respondents to execute a deed of sale and deliver titles, failure of which would rescind the sale and compel refund with interest. It also awarded moral and exemplary damages, attorney’s fees, and litigation expenses. An August 1995 order declared the original titles null and void and instructed issuance of new titles to petitioners.
Court of Appeals Ruling
Respondents Adolfo and Mariano petitioned for annulment, arguing lack of valid service and absence of personal jurisdiction because Adolfo resided in Ohio and Mariano in Bohol. The Court of Appeals, on September 30, 1996, granted the petition, held the RTC decision void for lack of jurisdiction, and enjoined cancellation of TCT Nos. 10616 and 31856.
Issue
Whether the RTC validly acquired jurisdiction over each respondent through service of summons, given that the action was in personam and service was effected only through Caridad Trocino without explanation of efforts to serve non-resident heirs personally.
Analysis
- Nature of Action: Although the complaint affects real property, it is an action in personam because it seeks enforcement of contractual obligations against specific individuals. Personal service of summons is essential.
- Service on Non-Resident Heirs:
- Adolfo, residing abroad, could not be served within the Philippines; personal or substituted service with proof of efforts is required or extraterritorial service with leave of court. No such procedures were observed.
- Mariano, residing in Bohol, likewise required personal or substituted service accompanied by a return stating attempts and impossibility of personal service. T
Case Syllabus (G.R. No. 127692)
Facts of the Case
- In 1975, spouses Jesus and Caridad Trocino mortgaged two parcels of land (TCT Nos. 10616 and 31856) to Dr. Clarence Yujuico.
- The mortgage was foreclosed and the parcels sold at public auction on July 11, 1988.
- Before the expiration of the redemption period, on December 12, 1989, the Trocinos sold the same properties to petitioners Fortunato and Aurora Gomez, who then redeemed the lands from Dr. Yujuico.
- The Trocinos allegedly refused to convey ownership to the Gomezes, prompting the filing of Civil Case No. CEB-11103 for specific performance and/or rescission on December 16, 1991.
Trial Court Proceedings
- Summons and complaint were “served” on January 8, 1992 by leaving copies with Caridad Trocino, purportedly on behalf of all heirs including Adolfo and Mariano Trocino.
- On January 27, 1992, the heirs filed their Answer through counsel Atty. Expedito P. Bugarin; Caridad Trocino verified the pleading.
- After trial on the merits, the Regional Trial Court of Cebu City (Branch 10) rendered judgment in March 1993:
- Ordered the Trocinos to execute a Deed of Sale and deliver owner’s duplicate titles within ten days or, alternatively, rescinded the sale and required them to return P500,000 with 12% interest.
- Awarded P2,000,000 balance, P50,000 moral damages, P20,000 exemplary damages, P40,000 attorney’s fees, and P10,000 litigation expenses.
- On August 29, 1995, for failure to deliver the titles, the RTC declared the original titles null and void and directed issuance of new titles in favor of the Gomezes.
Petition for Annulment Before the Court of Appeals
- On March 13, 1996, Adolfo and Mariano Trocino petitioned the Court of Appeals to annul the RTC judgment for lack of jurisdiction over their persons, alleging invalid service of summons:
- Adolfo resided in Ohio, U.S.A., for 25 years; Mariano lived in Talibon, Bohol, since 1986.
- They denied receipt of s