Case Summary (G.R. No. 193455)
Background of the Case
On November 13, 1962, the petitioners filed a complaint against their brother Alberto D. Benipayo for the partition of properties inherited from their deceased parents, leading to Civil Case No. 52188. The court directed that these properties be sold at public auction to the highest bidder. The auction involved several lots, including two mortgaged properties in Manila with an outstanding mortgage debt of approximately P50,000.
Auction Proceedings
The properties were initially ordered to be sold, with auction sales scheduled and notices publicly posted, emphasizing that the properties were encumbered by a mortgage from the Development Bank of the Philippines. The sale proceeded on March 30, 1964, despite the petitioners' attempts to postpone it. Respondent Dualan successfully bid on one property for P235,000, while respondent Sayson won another for P173,000. Following the auction, there were disputes regarding the approval of the sales, specifically concerning the conditions placed on the vendors regarding the clearing of encumbrances on the properties.
Decision of the Presiding Judge
In an order dated April 28, 1964, the presiding judge approved the sales but imposed conditions that required the vendors (the heirs) to clear the titles of the properties from any encumbrance. This decision was challenged by the petitioners, and after their motion for reconsideration was denied, they filed a petition for certiorari against the judge's order.
Legal Principles and Arguments
The petitioners argued that the doctrine of caveat emptor should apply, contending that Dualan, as the successful bidder, should bear the responsibility for the mortgage since he was aware of it. The court analyzed the applicability of caveat emptor, concluding that it pertains primarily to execution sales, which this was not. It affirmed that the presence of a mortgage does not shift the obligation to pay the debt from the original debtor to the buyer unless expressly stipulated.
Ruling on the Sale and Mortgage Obligations
In examining the sale conditions, the court determined that Dualan, having knowledge of the mortgage, accepted the possibility of having to deal with the encumbrance should the original debtors fail to settle the mortgag
...continue readingCase Syllabus (G.R. No. 193455)
Case Background
- The case originated from a petition for certiorari filed by some children of the deceased couple, Donato Benipayo, Jr., and Pura Disonglo.
- The petitioners sought to set aside an order from the Manila Court of First Instance, which involved the approval of sheriff's sales of properties co-owned by the petitioners and the respondent, Alberto D. Benipayo.
- The sale was conditional upon the vendors clearing the titles of any encumbrances in favor of the Development Bank of the Philippines.
Procedural History
- On 13 November 1962, the petitioners filed a complaint for partition against their brother, Alberto D. Benipayo.
- After the answer was filed, a pre-trial conference resulted in an agreement to sell the contested properties at public auction.
- The properties included mortgaged lots in Manila, with a total outstanding mortgage of approximately P50,000.00.
Auction and Sale Details
- The auction was scheduled for 30 March 1964, following a notice that warned bidders of the existing mortgage.
- On the auction day, the petitioners moved to postpone the sale but were denied.
- Respondent Jose N. D