Title
Santana-Cruz vs. Court of Appeals
Case
G.R. No. 120176
Decision Date
Jul 20, 2001
A 1964 reconveyance judgment sought revival in 1993; SC ruled prescription barred action due to delay caused by failure to implead indispensable parties.
A

Case Summary (G.R. No. 120176)

Factual Background

The original judgment sought to be revived and executed was the Decision dated September 30, 1964 in Civil Case No. 6482, “Felipe Riple, et al. vs. Francisco Santana, et al.” That judgment ordered Francisco Santana and the Heirs of Catalina Reyes to reconvey certain lots to the plaintiffs as Heirs of Valeriana Marilao (Lots Nos. 2, 4, 6, 11 and 12 of Plan Psd-1536-LRC, covered by Transfer Certificate of Title No. 65611), upon payment of P6,233.40, and to execute the necessary deed of reconveyance within five days. The judgment also ordered payment of P1,000.00 as attorney’s fees and costs. The Court of Appeals affirmed the 1964 decision in toto by decision dated December 5, 1979, in CA-G.R. No. 48321-R.

Initiation of Revival/Execution Proceedings and Intervening Orders

On March 23, 1993, the private respondents, represented by Attorney-in-Fact Patrocinia Juanson-Cuizon, filed in the Regional Trial Court, Fourth Judicial Region, Branch 74, Antipolo, Rizal a Complaint for Revival/Execution of Judgment After Lapse of Five Years docketed as Civil Case No. 93-2636. In response, petitioner filed an Omnibus Motion dated May 7, 1993 seeking dismissal on the grounds that the complaint failed to state a cause of action, was barred by the statute of limitations, and should be expunged for allegedly being filed by a person not authorized to practice law.

On August 19, 1993, the trial court denied the Omnibus Motion and ordered that an alias writ of execution be issued to enforce the judgment affirmed by the Court of Appeals. On September 1, 1993, the court issued an Alias Writ of Execution. Petitioner then filed a Motion for Reconsideration with Motion to Quash Alias Writ of Execution on September 6, 1993, which the court denied on October 21, 1993. On the same date, the trial court issued an order granting a subsequent motion for modification and directed the Register of Deeds of Marikina to cancel the existing title and issue corresponding new certificates in the name of petitioner.

Court of Appeals Proceedings and the Prescription Ruling

Petitioner filed a Petition for Certiorari and Prohibition with a Prayer for Temporary Restraining Order with the Court of Appeals on November 19, 1993, alleging grave abuse of discretion by the trial court in issuing the three questioned orders. On October 12, 1994, the Court of Appeals granted the petition, reversed and set aside the trial court’s orders, declared the alias writ of execution void, and dismissed the complaint for revival/execution on the ground of prescription.

After the denial of petitioner’s attempts to resist reconsideration proceedings in the appellate court, the litigation became procedural and counsel-focused. Private respondents filed a Motion for Reconsideration on November 2, 1994 through Atty. Julian S. Yap, and later another motion for reconsideration on November 15, 1994 through Atty. Raul A. Mora. The Court of Appeals, in a Resolution dated December 15, 1994, denied the motion for reconsideration, characterizing it as merely reiterating issues already extensively discussed and passed upon in its earlier decision. A subsequent resolution dated December 22, 1994 noted without action a supplemental motion and manifestation submitted on December 16, 1994.

Supreme Court Petitions and the Return to the Court of Appeals

Meanwhile, private respondents sought Supreme Court review. They filed a petition for extension of time to file a petition for review, docketed as G.R. No. 118341, and then filed their petition for review on February 6, 1995 questioning the Court of Appeals Decision dated October 12, 1994 and Resolution dated December 15, 1994. On March 1, 1995, the Supreme Court denied the petition on the ground that it failed to show reversible error. The resolution became final and executory on June 23, 1995.

Earlier, private respondents also filed another extension petition docketed as G.R. No. 118360. The Supreme Court granted an extension through a Resolution dated January 25, 1995 with no further extension after the granted period. Petitioner moved to dismiss in that context on February 22, 1995. After these Supreme Court proceedings were pending, the Court of Appeals issued a new resolution on February 9, 1995 that set aside its own October 12, 1994 decision and dismissed the petition for lack of merit, holding that the private respondents’ complaint for revival/execution had not prescribed. The Court of Appeals further explained that its December 15, 1994 resolution had denied only the motion for reconsideration filed by Atty. Yap, while the subsequent motion for reconsideration—filed through Atty. Mora—was treated as warranting reversal based on its appreciation of the applicable execution and prescription rules, including the guidance attributed to National Power Corporation vs. Court of Appeals.

Petitioner later questioned the Court of Appeals’ authority to issue the February 9, 1995 resolution, arguing lack of jurisdiction because of the already filed motion for extension of time to petition for review in the Supreme Court. On April 21, 1995, the Court of Appeals denied petitioner’s manifestation and motion for a special order praying for recall and nullification of the February 9, 1995 resolution.

The Parties’ Contentions in the Supreme Court

Petitioner argued that the Court of Appeals decided questions contrary to law and applicable decisions of the Supreme Court, particularly as to jurisdiction. She contended that once private respondents, through Atty. Mora, filed in the Supreme Court on or about January 6, 1995 a motion for extension of time to file a petition for review on certiorari, they had effectively perfected their appeal, causing the Court of Appeals to lose jurisdiction over CA-G.R. SP No. 32631, including authority to amend or modify its earlier decisions and resolutions. She further invoked Section 8, Rule 9 of the Revised Internal Rules of the Court of Appeals, which provides that no motion for reconsideration or rehearing shall be acted upon if the movant has already filed in the Supreme Court an appeal by certiorari or a motion for extension of time to file such petition.

Petitioner also asserted that even if the December 15, 1994 resolution involved only the motion for reconsideration filed by Atty. Yap, the later filing of a motion for extension of time by Atty. Mora should have been treated as an abandonment of any motion for reconsideration supposedly pending with the Court of Appeals, thereby barring further action by that court under the rule she cited.

Private respondents, for their part, defended the Court of Appeals’ action on the basis of counsel representation and timing. The Court of Appeals had emphasized that it could not ignore the motion for reconsideration filed through Atty. Mora, given that there was allegedly no showing that all private respondents revoked Patrocinia Juanson-Cuizon’s authority as attorney-in-fact. It further relied on the principle that substitution of counsel cannot be presumed absent the requisites for a valid substitution. It also explained that its February 9, 1995 resolution treated the motions distinctly due to their receipt sequence and the way they were incorporated in the case records, and that it eventually set aside the December 15, 1994 resolution declaring the motion filed by Atty. Yap a nullity in light of Atty. Mora’s counsel-of-record status.

The Court’s Jurisdictional and Procedural Analysis

In resolving the issues, the Court examined the counsel-of-record and substitution concerns in the context of the Court of Appeals’ corrective action. It treated the question of whether the Court of Appeals could validly act on the motion for reconsideration as bound up with the rule on effect of filing in the Supreme Court and with whether a valid representation existed before the Court of Appeals.

The Court of Appeals had reasoned that, absent a valid substitution of counsel, Atty. Mora remained counsel of record and Atty. Yap lacked authority to represent private respondents. It held that because there was no compliance with the essential requisites for valid substitution of counsel, the motion for reconsideration filed by Atty. Yap could not bind private respondents, and its denial in the December 15, 1994 resolution could be considered a nullity. It accordingly declared that the Court’s subsequent resolution granting the motion filed by Atty. Mora and setting aside the decision was proper, and it further explained that no appeal with the Supreme Court had been perfected by private respondents when the Court of Appeals issued the questioned resolutions.

Execution, Indispensable Parties, and Prescription of the Revival/Execution Action

Beyond jurisdiction, the case required a determination of whether the revival/execution action was timely. The Court of Appeals had previously treated the complaint as not prescribed, relying on National Power Corporation vs. Court of Appeals and on the premise that delay in execution attributable to petitioner should not count against the five-year period.

The Supreme Court examined the records for the reasons underlying the non-execution and the legal sufficiency of the original reconveyance judgment’s enforceability against persons not impleaded. It noted that even during the pre-trial of the reconveyance case, the private respondents had been aware that the parcels sought to be reconveyed had been sold to third parties. Yet, those third-party vendees—identified as indispensable parties—had not been impleaded. The Court explained that owners of property over which reconveyance is asserted are indispensable parties without whom no relief is available and without whom the court cannot render a valid judgment. It invoked Section 7, Rule 3 of the Revised Rules of Court on compulsory joinder of indispensable parties and stressed the duty of plaintiffs to implead indispensable parties for complete determination.

Because the indispensable th

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