Title
San Lorenzo Village Association, Inc. vs. Court of Appeals
Case
G.R. No. 116825
Decision Date
Mar 26, 1998
ADEC, as successor-in-interest, sought cancellation of property restrictions in San Lorenzo Village, claiming changed conditions. Courts upheld its capacity to sue, ruling issues were for trial, not dismissal.

Case Summary (G.R. No. 116825)

Relevant Dates

The important dates include:

  • December 13, 1991: ADEC filed the petition before the RTC.
  • March 31 and October 15, 1992: Orders issued by the RTC denying SLVAI's motions to dismiss ADEC's petition.
  • March 26, 1998: Decision rendered by the Supreme Court.

Applicable Law

The legal framework incorporates provisions from the 1987 Philippine Constitution, the Civil Code, and relevant administrative laws associated with property rights and restrictions.

Case Background and Initial Petition

ADEC, claiming ownership of the parcel of land described in TCT No. 47348, filed a petition for the cancellation of certain restrictions annotated on the title which hindered its rights to utilize the property. These restrictions mandated that property owners be members of SLVAI, limited usage to residential purposes, and imposed other structural limitations. ADEC contended that the conditions warranting these restrictions had changed significantly, rendering them obsolete.

Motion to Dismiss and Trial Court's Rulings

SLVAI filed a motion to dismiss ADEC's complaint, arguing ADEC lacked the legal personality and cause of action, asserting that ADEC was not yet the registered owner of the property. The RTC denied this motion, asserting that ADEC, as the successor in interest of the original owner, possessed the requisite standing to initiate the suit. ADEC's claim to ownership was deemed sufficient to merit judicial consideration.

Court of Appeals Review

SLVAI subsequently sought a review before the Court of Appeals, which affirmed the lower court's decision. The appellate court reiterated that, under the rules concerning motions to dismiss, the factual allegations in ADEC's complaint must be hypothetically accepted as true, thus sufficient to establish standing. The Court of Appeals emphasized that ownership, contested by SLVAI, was a matter for substantive trial and not appropriate for determination in a motion to dismiss.

Supreme Court Decision

Upon review, the Supreme Court upheld the rulings of the lower courts, emphasizing that ADEC's allegations of ownership, as successor-in-interest, presented a legitimate cause of action against SLVAI. The Court clarified that the framework for determining cause of action does not extend to doubts about the veracity of ownership claims, which should be resolv

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