Title
National Housing Authority vs. Pascual
Case
G.R. No. 158364
Decision Date
Nov 28, 2007
NHA awarded Tatalon Estate lot to absentee Maranan; Pascual contested. SC ruled Maranan disqualified, voided title, ordered NHA to award lot to Pascual, a qualified beneficiary.

Case Summary (G.R. No. 202086)

Applicable Law

The laws relevant to this case include Republic Act No. 2616 regarding expropriation and Presidential Decree No. 1261, which designated the National Housing Authority (NHA) as the administrator of the Tatalon Estate Housing Project and outlined the criteria for awarding lots to beneficiaries based on census data.

Background of the Dispute

On August 3, 1959, R.A. No. 2616 was passed to allow the expropriation of the Tatalon Estate, enabling the sale of lots to bona fide occupants. The NHA awarded Lot 3, Block 12 to Dolores Maranan in 1983, based on her inclusion in the 1958 Araneta Census. Subsequent to the award, a Transfer Certificate of Title (TCT) was issued, and Maranan executed a Special Power of Attorney in favor of Perlita Canedo, subsequently selling the property to her.

Respondent's Claims

Soledad Pascual contested the lot's award, asserting that she was the rightful beneficiary as an occupant since 1968. She submitted a complaint to the NHA on February 14, 1983, and after various recommendations and appeals—mostly siding with Maranan—her complaint was dismissed by the NHA on October 3, 1983, with the General Manager concluding the award to Maranan to be proper.

Judicial Proceedings

Pascual's subsequent appeal, based on claims that Maranan was an absentee awardee, eventually led to a trial court decision on June 15, 1993, which favored Maranan. During the appellate process, various administrative and judicial determinations were made regarding the validity of Maranan's award and the legitimacy of Pascual's claims. The Court of Appeals, on November 21, 2002, reversed the trial court's decision and declared the award to Maranan void due to her absentee status.

Grounds for Reversal

The Court of Appeals determined that the NHA failed to exercise proper discretion in awarding the lot to Maranan, noting established criteria under P.D. No. 1261 that required continuous residency to qualify for benefits. It observed that Maranan had not resided in the Philippines since her emigration to Hawaii in 1979. Consequently, the appellate court found grounds to declare the title issued to Maranan as void.

Petitioner's Arguments

In contesting the appellate decision, the NHA raised several issues, including that the Court of Appeals erred in finding Maranan unqualified, ordering reconveyance of the lot to Pascual, asserting Pascual's estoppel due to her acceptance of another lot, and claiming res judicata in favor of the previous NHA decisions.

Court's Analysis

The Supreme Court held that respondent Pascual's actions to contest the award had not reached finality as her appeals were duly processed by the Office of the President prior to the court actions. The Court underscored the importance of adequate administrative review before judicial intervention, reinforcing the notion that architectural remedies exist for aggrieved parties when facing administrative decisions.

Final Ruling

The Supreme Court affirmed the Court of Appeals' decision to nullify the award to Mara

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