Title
Philippine Bank of Communications vs. Register of Deeds for the Province of Benguet
Case
G.R. No. 222958
Decision Date
Mar 11, 2020
PBCOM sought replacement of a lost title; RTC dismissed petitions, citing *res judicata*. SC ruled *res judicata* inapplicable, reinstated case, emphasizing proper remedy and substantive right to replace lost title.
dismissal
second petition
replacement
A

Case Summary (G.R. No. 123031)

Petitioner

PBCOM, the registered owner of the property covered by TCT No. 21320, sought issuance of an owner’s duplicate of the transfer certificate after asserting the title duplicate was lost and after discovering the registration only upon receipt of a May 2010 real property tax notice.

Respondent

The Register of Deeds for the Province of Benguet, responsible for land registration matters and the issuance and recording of certificates of title, opposed the Rule 65 certiorari petition contesting the dismissal based on res judicata and argued that PBCOM pursued the wrong remedy.

Key Dates

  • First petition for replacement filed: January 28, 2011 (LRC Case No. 11-AD-1335, raffled to RTC-Branch 62).
  • RTC-Branch 62 dismissal of first petition: July 29, 2011; omnibus motions later considered abandoned (February 9, 2012).
  • Second petition filed: 2012 (LRC Adm. Case No. 12-AD-1401, raffled to RTC-Branch 63).
  • RTC-Branch 63 dismissal of second petition: April 27, 2012 (motu proprio, on ground of res judicata).
  • CA Decision dismissing certiorari petition: February 23, 2015; CA Resolution: February 12, 2016.
  • Supreme Court decision under review: March 11, 2020 (thus applying the 1987 Constitution and current procedural law).

Applicable Law and Procedural Framework

Primary statutes and rules invoked: Rules of Court (including Rule 41 on appeals, Rule 65 on certiorari, Rule 9 on defenses subject to motu proprio dismissal), Presidential Decree No. 1529 (P.D. 1529, Property Registration Decree) particularly Sections 39–43, 51–54, 57–59, 60–63, 64–68 and Section 109 on replacement of lost owner’s duplicate, and Republic Act No. 8791 (General Banking Law) as it relates to banks’ obligations concerning real estate. The analysis is conducted under the 1987 Constitution as the governing charter.

Procedural History

PBCOM filed two successive petitions for issuance of a replacement owner’s duplicate of TCT No. 21320. The first petition, heard at RTC-Branch 62, was dismissed for insufficiency of evidence—specifically, failure to prove the fact of loss and failure to demonstrate that all reasonable efforts had been exhausted to locate the owner’s duplicate. PBCOM did not appeal that dismissal but instead filed a second petition in RTC-Branch 63. The latter dismissed the second petition motu proprio on the ground of res judicata. PBCOM sought relief by way of a Rule 65 petition for certiorari to the CA, which dismissed the petition holding that an appeal was the proper remedy and that res judicata applied. PBCOM then filed a Rule 45 petition for review on certiorari to the Supreme Court.

Factual Background

PBCOM was the registered owner by virtue of an extrajudicial foreclosure sale dated March 2, 1985. The bank alleged the owner’s duplicate TCT was not in its inventory because records from its La Union branch were not forwarded to head office. The bank learned of the property’s registration only upon receipt of a municipal tax notice in May 2010. PBCOM claimed it exerted all possible efforts to locate the duplicate, filed an affidavit of loss with the Registry of Deeds, and presented evidence ex parte in the first proceeding. Testimony indicated possible failures in record transfer by prior officers or counsel, but PBCOM did not sufficiently verify the whereabouts from those persons.

RTC-Branch 62 Dismissal of First Petition

RTC-Branch 62 dismissed PBCOM’s first petition on July 29, 2011 for insufficiency of evidence. The court found that PBCOM failed to prove the factual loss of the duplicate title and did not show it had exerted all reasonable efforts to determine the title’s whereabouts, including inquiry of past and present officers, employees, and legal counsel. The court emphasized that if another person was known or suspected to possess the title, the replacement petition would not be the proper remedy. PBCOM’s motions for reconsideration and requests to present additional evidence were deemed abandoned when not timely prosecuted.

RTC-Branch 63 Dismissal of Second Petition

RTC-Branch 63 dismissed the subsequent petition (substantively identical) motu proprio on April 27, 2012, invoking res judicata on the ground that the first dismissal was an adjudication on the merits (insufficiency of evidence) and therefore barred refiling of the same cause between the same parties. RTC-Branch 63 treated the first petition’s dismissal as a final adjudication that precluded a second identical petition.

Court of Appeals Proceedings

PBCOM filed a Rule 65 petition with the CA alleging grave abuse of discretion by the RTC judge in dismissing the second petition and contending the court failed to determine whether the evidence in the first petition was identical to that intended for the second. The CA dismissed the Rule 65 petition on two principal grounds: (1) PBCOM had availed itself of the wrong remedy because the dismissal was a final appealable order and thus proper redress was by appeal, not certiorari; and (2) the elements of res judicata were present because both petitions sought the issuance of the same owner’s duplicate TCT.

Issues Presented to the Supreme Court

  1. Whether PBCOM availed of the correct remedy in filing a Rule 65 petition for certiorari to challenge the dismissal of the second petition.
  2. Whether RTC-Branch 63 correctly dismissed the second petition on the ground of res judicata.

Legal Standard on Remedies: Appeal versus Certiorari

The Supreme Court reiterated that a Rule 65 certiorari is available only where a tribunal acts without or in excess of jurisdiction, or with grave abuse of discretion amounting to lack or excess of jurisdiction, and where there is no other plain, speedy, and adequate remedy in the ordinary course of law. An order that finally disposes of a case—such as a dismissal on the merits or final order of dismissal—may be challenged by appeal under the Rules of Court (Rule 41 and related provisions), not by certiorari, unless the order falls within enumerated exceptions (orders from which appeals are prohibited). A dismissal based on res judicata is a final appealable order; therefore appeal, not certiorari, is ordinarily the proper remedy.

Court’s Analysis on Remedy

Applying the foregoing principles, the Supreme Court agreed with the CA that PBCOM pursued the wrong remedy by invoking Rule 65. The dismissal on the ground of res judicata was a final order disposing of the petition and was therefore appealable. PBCOM itself initially filed a notice of appeal from the RTC-Branch 63 order but later withdrew it — an admission that an appeal was available. Consequently, the CA was correct to dismiss the certiorari petition insofar as remedy selection is concerned.

Motu Proprio Dismissal and Due Process

The Court recognized that the Rules of Court (Rule 9, Section 1) permit motu proprio dismissal when it appears from pleadings or evidence that the action is barred by a prior judgment, among other grounds. The Court cited jurisprudence confirming that motu proprio dismissal does not ipso facto violate due process where the record shows the matter is within the enumerated grounds for such dismissal (e.g., res judicata). Thus, PBCOM’s contention that motu proprio dismissal rendered the order void for lack of due process was untenable under the rules.

Torrens System and the Importance of the Owner’s Duplicate Certificate of Title

The Court emphasized the centrality of the owner’s duplicate certificate of title within the Torrens system: the certificate embodies indefeasibility and incontrovertibility of title, serves as conclusive evidence of ownership, and is issued in duplicate (original for the Registry of Deeds, owner’s duplicate for the registered owner). P.D. 1529 requires presentation of the owner’s duplicate for registration of voluntary instruments; absence of the duplicate prevents registration and thus affects the ability of the registered owner to affect third parties. The owner’s duplicate therefore provides substantive and practical security to the registered owner and is fundamental to exercising and vindicating ownership rights.

P.D. 1529 Section 109 and the Limited Scope of Replacement Proceedings

Section 109 of P.D. 1529 allows a registered owner to send due notice under oath to the Register of Deeds upon loss or theft of the owner’s duplicate, and permits a court, upon petition and after notice and hearing, to direct issuance of a new duplicate if the requisites are met. The Court stressed that proceedings under Section 109 are limited in scope: the court’s authority is confined to determining compliance with procedural requisites and the factual loss or destruction of the owner’s duplicate. Such proceedings do not adjudicate or pass upon ownership of the land; they are remedial and aimed at reissuing the duplicate in place of the lost one.

Application to PBCOM’s Case: Res Judicata and Refiling

The Supreme Court reasoned that because replacement proceedings under Section 109 do not adjudicate ownership and are limited to reissuance of the owner’s duplicate upon proof of loss and complian

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