Title
Philippine School of Business Administration-Quezon City vs. Tolentino-Genilo
Case
G.R. No. 159277
Decision Date
Dec 21, 2004
PSBA sought injunction to halt DPWH's use of disputed land for LRT Line 2, claiming mutual mistake in sale deed. Courts denied relief, citing PD 1818 and public welfare over private interests.
A

Case Summary (G.R. No. 159277)

Factual Background

On August 27, 1997, PSBA entered into a deed of conditional sale with DPWH for a parcel of land measuring 1,128 square meters at a total price of PHP 10,467,840.00. PSBA claims that a mutual mistake occurred regarding the area conveyed, arguing that it intended to sell only 543 square meters, which lies outside its existing perimeter fence. Following the full payment by DPWH, PSBA sought a reformation of the contract, alleging that its property was mistakenly conveyed and that the respondents intended to demolish structures on the property, which would violate its rights.

Petition for Temporary Restraining Order

On August 27, 1999, PSBA filed a complaint for the reformation of the contract along with a motion for a temporary restraining order and writ of preliminary injunction to prevent the taking of its property and the demolition of structures on it. However, the Regional Trial Court issued a resolution on September 7, 1999, denying the petitioner's application, indicating that the government project could not proceed without demolishing PSBA's structures.

Trial Court's Reasoning

The trial court concluded that the welfare of the public necessitated the government's infrastructure project, and the petitioner had failed to demonstrate the irreparable damage that would warrant the issuance of a temporary restraining order. Additionally, the court highlighted that PSBA's argument against the constitutionality of Presidential Decree No. 1818 (P.D. 1818) could not be adjudicated in a summary proceeding, thus maintaining the presumption of constitutionality of laws unless declared otherwise.

Court of Appeals and Supreme Court Review

After the trial court’s denial of its motion for reconsideration, PSBA escalated the matter to the Court of Appeals. The appellate court affirmed the trial court's decision on January 30, 2003, and subsequently denied PSBA's motion for reconsideration on July 2, 2003. PSBA contended that all requisite elements for injunctive relief were present, arguing that demolition and taking of its property without due process violated its constitutional rights.

Legal Standards for Preliminary Injunction

The requisites for granting a preliminary injunction are that the right to be protected is material and substantial; the right of the complainant is clear and unmistakable; and there is an urgent necessity to prevent serious damage. The Supreme Court found that PSBA did not demonstrate a clear right that required protection by an injunction.

Presumptive Ownership and the Deed of Conditional Sale

Significantly, the court pointed out the prima facie value of the deed, which indicated that upon full payment, PSBA forfeited its claim over the property. Since DPWH had already paid in full, the deed of conditional sale converted into an absolute sale, granting DPWH rights to use the property, including the exercise of jus utendi, until the resolution of PSBA’s complaint.

Implications of Presidential Decree No. 1818

The Supreme Court invoked P.D. 1818, which res

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