Case Summary (G.R. No. 143377)
Cancellation of Galvez’s Original Title
In 1963 the Court of First Instance, in LRC Case No. N-361, declared OCT No. 0-381 null and void and ordered its cancellation, without prejudice to subsequent actions by parties in interest. This ruling was affirmed on appeal, became final on October 23, 1973, and a writ of execution was issued and served in April 1974.
Acquisition by Shipside and Proprietary Rights
On October 28, 1963 Lepanto sold Lots 1 and 4 to Shipside, which acquired TCT No. T-5710 and exercised ownership rights thereafter.
Revival of Judgment and Cancellation Complaint
Twenty-five years after finality, the Solicitor General, on behalf of the Republic, filed in April 1999 an action for revival of judgment and cancellation of titles covering all lots under OCT 0-381, impleading Shipside and other successors.
Trial Court Proceedings and Petitioner’s Motion to Dismiss
Shipside moved to dismiss on grounds that only final and executory judgments are subject to revival (Rule 39/Art. 1144(3)), that the Republic lacked real interest (property transferred to BCDA under RA 7227), and that the action was barred by the ten-year prescription. The RTC denied the motion and its reconsideration in August and October 1999.
Petition for Certiorari and CA Rulings
Shipside sought certiorari and prohibition before the CA, alleging grave abuse of discretion by the RTC. The CA dismissed the petition for lack of proof of authority for the resident manager who signed the verification and certification against forum shopping, and denied reconsideration for same reason.
Issues Presented
- Whether a corporation’s resident manager may file a petition absent prior board authorization.
- Whether the Republic may maintain an action for revival of judgment after transfer of property to BCDA and despite prescription.
Authority to File, Verification, and Forum-Shopping Certificate
Under the Corporation Code, the power to sue lies with the board of directors and authorized officers. Although the petition initially lacked proof of authorization for the resident manager’s signature, Shipside later submitted a secretary’s certificate showing board approval before filing. The Court treats verification and non-forum-shopping certificates as formal requirements subject to correction in the interest of substantial justice. The petition’s merits and belated proof of authority justified relief from strict dismissal.
Prescription of Revival Action
An action to revive a final and executory judgment must be brought within ten years from finality (Art. 1144(3); Rule 39, § 6). The judgment here became final on October 23, 1973, but the revival complaint was filed in 1999—over twenty-five yea
...continue readingCase Syllabus (G.R. No. 143377)
Procedural History
- Petition for certiorari under Rule 65, 1997 Rules on Civil Procedure filed by Shipside Incorporated before the Supreme Court
- Court of Appeals resolutions of November 4, 1999 (dismissal of certiorari and prohibition petition) and May 23, 2000 (denial of reconsideration) assailed
- Underlying case: Civil Case No. 6346, “Republic of the Philippines vs. Heirs of Rafael Galvez, et al.” before RTC Branch 26, San Fernando, La Union
- RTC denied motion to dismiss (Aug. 31, 1999) and motion for reconsideration (Oct. 14, 1999) of the complaint for revival of judgment and cancellation of titles
Antecedent Facts
- Original Certificate of Title No. 0-381 issued Oct. 29, 1958 to Rafael Galvez covering four parcels (Lots 1, 2, 3, 4)
- April 11, 1960: Lots 1 and 4 sold by Galvez to Filipina Mamaril, Cleopatra Llana, Regina Bustos, Erlinda Balatbat (Entry No. 9115 on OCT No. 0-381)
- Transfer Certificate No. T-4304 issued for Lots 1 and 4 to the four buyers on Aug. 10, 1960
Land Descriptions of Lots 1 and 4
- Lot 1 (6,571 sq m): Defined by Plan PSU-159621, bounded by foreshore, public land, Benguet Consolidated Mining Company property, US Military Reservation Camp Wallace, old barrio road; bearings and survey dates detailed
- Lot 4 (508 sq m): Defined by same plan, bounded by Benguet Consolidated Mining Company, Pelagia Carino property, US Military Reservation Camp Wallace; bearings and survey dates detailed
Deeds and Transfer of Titles
- Aug. 16, 1960: Mamaril et al. sold Lots 1 and 4 to Lepanto Consolidated Mining Company (Entry No. 9173 on TCT No. T-4304)
- TCT No. T-4314 issued in favor of Lepanto as owner of Lots 1 and 4
- Oct. 28, 1963: Lepanto sold Lots 1 and 4 to Shipside Incorporated (Entry No. 12381 on TCT No. T-4314)
- TCT No. T-5710 issued in favor of Shipside, exercising proprietary rights thereafter
Land Registration Case No. N-361 and Cancellation of OCT No. 0-381
- Feb. 1, 1963: Court of First Instance, La Union, declared OCT No. 0-381 null and void; ordered cancellation of OCT No. 0-381 and subsequent titles referencing same parcels
- Jan. 25, 1965: Motion for reconsideration by Galvez denied
- Aug. 14, 1973: Court of Appeals affirmed nullification in CA-G.R. No. 36061-R; decision became final and executory Oct. 23, 1973
- Apr. 22, 1974: Trial court issued writ of execution; Register of Deeds served Apr. 29, 1974
Sales to Shipside Incorporated
- Shipside, Inc. acquired at third transfer in good faith and for value in October 1963
- Became registered owner of Lots 1 and 4 covered by TCT No. T-5710 (total area: 7,079 sq m)
Post-Judgment Execution Efforts
- Jan. 11, 1999: John Hay Poro Point Development Corp. alerted OSG that writ of exec