Title
Rizal Commercial Banking Corp. vs. Serra
Case
G.R. No. 203241
Decision Date
Jul 10, 2013
RCBC exercised its option to buy Serra's land, but Serra refused and fraudulently transferred the property. RCBC pursued legal action, and the Supreme Court ruled in RCBC's favor, suspending the execution period due to Serra's fraudulent actions.

Case Summary (G.R. No. 203241)

Facts

Federico A. Serra is the owner of a 374 square meter parcel of land in Masbate, Philippines. In May 1975, Serra entered into a 25-year Contract of Lease with Option to Buy with RCBC, granting the latter an option to purchase the land within ten years. On September 4, 1984, RCBC attempted to exercise this option; however, Serra informed RCBC that he was no longer interested in selling. This led RCBC to file a Complaint for Specific Performance against Serra in March 1985, initially dismissed but later reinstated by the RTC Makati in January 1989, which ordered Serra to execute a deed of sale. Serra subsequently donated the property to his mother and later it was sold to Liok, triggering further legal disputes.

Legal Background and Proceedings

RCBC sought to nullify the donation and subsequent sale, establishing that they were executed to evade Serra's obligations. The RTC Masbate ruled in favor of RCBC in October 2001, declaring the previous transactions void. The Court of Appeals affirmed this ruling in September 2007, with both Serra and Liok filing separate petitions for review. The Supreme Court ultimately denied these petitions, leading to finality of the decisions.

Execution Issue

On August 25, 2011, RCBC moved for the enforcement of the January 1989 decision, arguing that Serra's fraudulent acts suspended the enforcement period. Serra opposed, claiming the execution motion was barred by prescription and laches. On February 16, 2012, the RTC denied RCBC’s motion, asserting that RCBC failed to register its rights. This denial and subsequent motion for reconsideration were both denied by orders dated July 26, 2012.

Supreme Court Ruling

RCBC's appeal focused on whether the RTC erred in barring execution of the earlier decision. The Court found merit in RCBC's petition, affirming that delays caused by the judgment obligor (Serra) could suspend the enforcement period. The five-yea

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