Title
Landcenter Construction and Development Corp. vs. V.C. Ponce, Co., Inc.
Case
G.R. No. 160409
Decision Date
Oct 2, 2009
Dispute over Fourth Estate Subdivision ownership involving mortgage foreclosure, forged deeds, and legal battles; withdrawal of complaint nullified prior court orders, restoring parties' original positions.

Case Summary (G.R. No. 129505)

Factual Background

In 1962, V.C. Ponce created a subdivision plan that transformed 107,047 square meters of land into 239 lots. Vicente C. Ponce later mortgaged these properties, including the original TCT, to PCI Bank. The mortgaged property subsequently underwent foreclosure due to non-payment, resulting in an auction where PCI Bank acquired it. The ownership was further clouded by subsequent legal actions involving complaints for reconveyance and the reassignment of lots.

Legal Proceedings and Developments

Respondents pursued multiple legal avenues, including a complaint against PCI Bank regarding the validity of the foreclosure, resulting in a dismissal that upheld PCI Bank’s rights. A later complaint by the Respondents sought the reconveyance of 54 lots through the RTC, where a compromise was reached, significantly altering the land dynamics. Nevertheless, a forged deed of assignment surfaced, allegedly transferring property rights back to the Respondents, leading to Landcenter filing a new complaint for annulment.

RTC's Rulings

The Regional Trial Court (RTC) initially favored Landcenter, ordering the removal of sales advertisements placed by Respondents and directed the cancellation of the Respondents’ titles, asserting Landcenter’s legitimate ownership. However, Respondents contested the RTC's jurisdiction, leading to motions for reconsideration and subsequent orders that modified earlier decisions—although ultimately affirming Landcenter's claim to the property.

Court of Appeals Ruling

The Court of Appeals held that Landcenter's withdrawal of its complaint effectively restored the parties' original rights prior to litigation. It thus annulled the RTC's orders favoring Landcenter concerning the cancellation of titles in favor of Respondents. The CA maintained that the withdrawal of the complaint placed parties in their pre-litigation status, nullifying earlier judgments.

Supreme Court Findings

The Supreme Court affirmed the CA's ruling, emphasizing that the withdrawal of Landcenter's complaint nullified existing orders from the RTC, restoring the parties to their original standing. It found no reversible error within the CA's decision and agreed with the rationale that allowing such

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