Title
Spouses Dela Cruz vs. Spouses Austria
Case
G.R. No. 161864
Decision Date
Apr 27, 2007
Petitioners sought annulment of title, lost due to counsel's procedural error; SC upheld dismissal, citing strict compliance with rules and lack of gross negligence.

Case Summary (G.R. No. 161864)

Procedural History

The initial filing was assigned to the Municipal Circuit Trial Court (MCTC) of Laur and Gabaldon in Laur, Nueva Ecija, where the court ruled in favor of the petitioners by ordering the cancellation of Original Certificate of Title No. 11859 related to a property of 410 square meters owned by them. However, this decision was reversed by the Regional Trial Court of Palayan City, Branch 40. Subsequently, on December 4, 2001, the petitioners filed a petition for review with the Court of Appeals, which was dismissed due to a procedural defect involving the Certification of Non-Forum Shopping being improperly signed by their counsel rather than the petitioners.

Subsequent Developments

After the petition for review was dismissed, the petitioners attempted to seek reconsideration, which was also denied. Following the withdrawal of their original counsel, they engaged Atty. Guillermo M. Hernandez, Jr. and sought additional time to proceed. Their attempts to file a petition for relief from judgment were initiated on May 6, 2002, asserting that their original counsel’s negligence should not bind them. The Court of Appeals denied this petition, concluding that the petitioners were accountable for their counsel's actions and had effectively "slept on their rights."

Legal Issues Raised

The petitioners presented several key issues for review:

  1. The availability of a petition for relief from judgment while a case is pending in the Court of Appeals or this Court.
  2. Whether the Court of Appeals abused its discretion in not recognizing the acts of gross negligence by the petitioners' previous counsel.
  3. The question of whether the petitioners had indeed slept on their rights regarding the alleged incompetence of their previous counsel.
  4. The appellate court's approach to evaluating the merits of the case.

Central Legal Question

The principal legal question centers on the viability of filing a petition for relief under Rule 38 of the 1997 Rules of Civil Procedure from a judgment of the Court of Appeals due to alleged negligence of counsel. The petitioners contended that they should not suffer the consequences of their procedural lapse attributed to their lawyer's negligence in failing to follow established norms regarding the certification.

Court's Ruling

The court denied the petition, affirming that a petition for relief under Rule 38 may only be invoked in exceptional circumstances where no other adequate remedy exists. It emphasized that such a remedy typically applies to judgments rendered by Municipal/Metropolitan and Regional Trial Courts and not to appellate courts. Furthermore, the submission noted that the mere negligence of counsel, which co

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