Case Summary (G.R. No. 139437)
Factual Background
Langkaan Realty Development, Inc. was the registered owner of a parcel of land measuring 631,693 square meters, secured by a Real Estate Mortgage in favor of United Coconut Planters Bank for a loan of P5,000,000.00. The loan was obtained by Guimaras Agricultural Development, Inc. and included an acceleration clause that allowed for immediate foreclosure upon default. Guimaras defaulted, leading UCPB to file a petition for extra-judicial foreclosure, resulting in a sale wherein the property was auctioned and sold to UCPB for P3,095,000.00, which was later confirmed by a Certificate of Sale.
Procedural History
After failing to redeem the foreclosed property within the redemption period, Langkaan attempted to repurchase the property. The offer was rejected, prompting Langkaan to file a Complaint for Annulment of Extra-judicial Foreclosure with the Regional Trial Court (RTC) of Imus, Cavite. The RTC ruled in favor of UCPB, dismissing Langkaan's petition, which was subsequently affirmed by the Court of Appeals.
Legal Issues
The central issue was whether the extra-judicial foreclosure sale was valid on the grounds of purported non-compliance with Act No. 3135 concerning venue, posting, and publication of the Notice of Sale. The Supreme Court noted that it only addresses questions of law in such cases and does not re-examine factual evidence provided by lower courts.
Compliance with Notice and Publication Requirements
The Court affirmed the findings of lower courts regarding the notice and publication requirements of Act No. 3135. Evidence showed that the Notice of Sale was posted in three public places and was published in a newspaper of general circulation in Cavite, thereby satisfying the law's requirements. The Court upheld the positive testimony of the Deputy Sheriff regarding the posting as credible, while dismissing the opposing testimony as insufficient to outweigh the presumption of regularity in the Sheriff’s duties.
Venue of the Foreclosure Sale
With regards to the venue, the Supreme Court reviewed Act No. 3135, which stipulates that a foreclosure sale must occur within the province where the property is located. The real estate mortgage contract specified that such sales should occur at the provincial capital or in the municipal building where the property is situated. The foreclosed property being in Dasmarinas should have meant the sale occurred at the municipal building there.
Findings on Venue
Despite Langkaan’s contention that the venue for the sale should have been Trece Martires City (the provincial capital) or in Dasmarinas as per the stipulated terms, the Court emphasized that the general principle of waivable venue applies. It noted that Lang
...continue readingCase Syllabus (G.R. No. 139437)
Case Background
- The case revolves around the petition filed by Langkaan Realty Development Corporation (LANGKAAN) against United Coconut Planters Bank (UCPB) and the Court of Appeals.
- The petition seeks to annul the decision of the Court of Appeals in CA-G.R. No. CV 53514, which upheld the ruling of the Regional Trial Court (RTC) of Imus, Cavite, in Civil Case No. 360-89.
- LANGKAAN owned a 631,693 square meter property in Dasmarinas, Cavite, covered by Transfer Certificate of Title No. 111322.
Mortgage and Loan Transactions
- On April 8, 1983, LANGKAAN executed a Real Estate Mortgage with UCPB to secure a P3,000,000 loan obtained by Guimaras Agricultural Development, Inc. (GUIMARAS).
- LANGKAAN and GUIMARAS had an agreement to share the loan proceeds.
- GUIMARAS later incurred an additional loan of P2,000,000, bringing its total obligation to UCPB to P5,000,000, all secured by the real estate mortgage.
Default and Foreclosure Process
- GUIMARAS defaulted on the loan, prompting UCPB to file a "Petition for Sale under Act No. 3135" on July 28, 1986.
- A Notice of Extra-judicial Sale was issued, with the sale scheduled for August 29, 1986, and published in the "Record Newsweekly."
- The property was sold to UCPB for P3,095,000, and LANGKAAN failed to redeem the property within the specified redemption period.
Legal Actions Taken by LANGKAAN
- On March 31, 1989, LANGKAAN offered to buy back the foreclosed property for P4,000,000, which UCPB rejected, stating a selling price of P6,500,000.
- Subse