Title
Supreme Court
Spouses Hofer vs. Yu
Case
G.R. No. 231452
Decision Date
Jul 1, 2020
A compromise agreement was amended without one spouse's consent, violating due process. The Supreme Court annulled the amended decision, reinstating the original agreement.

Case Summary (G.R. No. 231452)

Applicable Law

This case is governed by provisions from the 1987 Philippine Constitution, the New Civil Code, and the pertinent rules outlined in the Rules of Court regarding annulment of judgment, specifically Rule 47.

Factual Background

In February 1995, Nelson Yu initiated a complaint against the Hofer spouses, resulting in a preliminary attachment of their conjugal properties. Subsequently, the parties executed a Compromise Agreement in August 1995, which was later judicially approved by the Regional Trial Court (RTC), dismissing the complaint contingent on the agreement's terms.

Amended Compromise Agreement and Judicial Proceedings

In May 2003, an Amended Compromise Agreement was executed solely between Respondent Yu and Bernardita Hofer without Tomas's knowledge, modifying the previous agreement significantly. The RTC subsequently approved this Amended Compromise Agreement in February 2004, which Tomas contested after becoming aware of it in March 2009.

Early Court Rulings and Challenges

Tomas filed actions to set aside the Amended Compromise Agreement and the subsequent writ of execution, asserting a lack of consent and due process violations. The RTC noted the validity of the amendments and denied some of Tomas's motions but granted others concerning procedural aspects.

Court of Appeals Decision

The Court of Appeals dismissed the petition for annulment, stating that it was barred by laches and asserting that Tomas had constructive notice of the amended decision due to its registration. The CA concluded that the notification via registered mail sufficed to bind the spouses.

Legal Analysis: Grounds for Annulment

The Supreme Court clarified that grounds for annulment could arise from extrinsic fraud or lack of jurisdiction and explored the implications of laches. The Court ruled that Tomas’s action was not barred by laches, noting his lack of knowledge about the Amended Compromise Agreement until March 2009.

Jurisdiction and Due Process

The Supreme Court emphasized that due process was violated because Tomas did not consent to the amendments affecting their conjugal properties. It reiterated that the RTC lacked jurisdiction to approve an amendment made without both parties' consent, emphasizing the essentiality of due process in any judicial decision.

Findings on the Amended Compromise Agreement

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