Case Summary (G.R. No. 182790)
Applicable Law
The relevant legal framework pertains to property law and the foreclosure process, which is governed by the provisions of the Civil Code, as well as applicable procedural rules in the Rules of Court regarding extrajudicial foreclosure and the requirements of notice.
Foreclosure Proceedings
Upon the plaintiffs’ failure to meet their payment obligations under the mortgage agreement, GSIS proceeded with an extrajudicial foreclosure. The sale was subsequently published in the newspaper "Voz de Manila." On January 11, 1960, GSIS filed for a writ of possession, which was granted shortly thereafter. The property was transferred to GSIS on November 10, 1960, with no opposition presented by the plaintiffs at that time.
Contestation of Sale
On September 8, 1962, nearly two years post-sale, the plaintiffs initiated a complaint against GSIS, seeking to annul the foreclosure sale on grounds they claimed the publication in "Voz de Manila" did not meet the criteria for a general circulation newspaper and that proper notice protocols had not been adhered to. The plaintiffs argued that the publication only occurred once a week for three consecutive weeks.
Court Findings on Publication
The court noted that the plaintiffs presented an affidavit claiming publication dates; however, it was established that prima facie evidence indicated compliance with the notice requirements. The burden of proof rested with the plaintiffs to demonstrate non-compliance with publication, which they failed to do. The court referred to previous cases to distinguish that the notices were indeed given, thereby rendering the plaintiffs’ claims inapplicable.
Ruling on Newspaper's Circulation
The court conducted a thorough analysis regarding whether "Voz de Manila" constituted a newspaper of general circulation. The plaintiffs alleged various deficiencies, including lack of registration and public recognition. However, the court found that it held a readership within the Spanish-speaking community, especially given the historical context at the time. The absence of records of subscriptions from universities did not invalidate its status as a newspaper of general circulation.
Waiver of Rights
Crucially, the court observed that plaintiffs had been duly notified of the auction and the subsequent court proceedings related to the foreclosure. Thei
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Case Background
- This case involves an appeal by plaintiffs Esteban M. Sadang and his wife Maria Lachica against a decision by the Court of First Instance of Manila.
- The plaintiffs borrowed a total of P173,000.00 from the Government Service Insurance System (GSIS) through two loans obtained on September 13, 1957, and August 11, 1958.
- To secure the loans, a real estate mortgage was constituted on their property located in Manila, as described in Transfer Certificate of Title No. 22386.
Default and Foreclosure Process
- The plaintiffs defaulted on their mortgage payments, including principal, interest, and surcharges, despite multiple demands from the defendant, GSIS.
- GSIS initiated an extrajudicial foreclosure of the mortgage, following the agreed terms, and published a notice of sale in the newspaper "Voz de Manila."
- The property was sold at public auction on December 2, 1959, with GSIS as the highest bidder.
- GSIS applied for a writ of possession shortly after the sale, which was granted without opposition from the plaintiffs, allowing GSIS to take possession of the property on November 10, 1960.
Legal Action Initiated by Plaintiffs
- Nearly two years after the foreclosure, on September 8, 1962, the plaintiffs filed an action in the Court of First Instance of Manila.
- They sought to annul the foreclosure sale and recover damages, arguing that the "Voz d