Title
Spouses Rasdas vs. Estenor
Case
G.R. No. 157605
Decision Date
Dec 13, 2005
Land dispute: petitioners' claim for compensation barred by res judicata; prior ruling on bad faith possession upheld, denying builders' rights.

Case Summary (G.R. No. 157605)

Procedural History

The case began when the respondent filed a Complaint for Recovery of Ownership and Possession with Damages against the petitioners in October 1992 (Civil Case No. 673). The Regional Trial Court (RTC) ruled in favor of the petitioners on November 6, 1995. However, the Court of Appeals reversed this decision on September 25, 1997, declaring the respondent as the rightful owner and ordering the petitioners to vacate the property. This decision became final and executory after being upheld by the Supreme Court.

Petition for Just Compensation

In July 1999, the petitioners initiated a new complaint (Civil Case No. 1090) against the respondent, seeking just compensation for improvements made on the land, arguing they were builders in good faith. The petitioners acknowledged the previous Court of Appeals decision but contended that they should be compensated for their constructions before any demolition occurred.

Motion to Dismiss and Original Rulings

The respondent filed a Motion to Dismiss, asserting that the petitioners' new complaint was barred by res judicata, which the RTC initially denied in August 1999. However, the RTC later reversed its decision on February 16, 2000, ruling that the previous Court of Appeals decision had established the petitioners as builders in bad faith. Consequently, the RTC dismissed the petitioners' complaint.

Affirmation by the Court of Appeals

The Court of Appeals affirmed the RTC’s dismissal, holding that the principles of res judicata applied. The petitioners contested that since the motion to dismiss had been previously denied, they were preventively barred from further motioning for dismissal based on res judicata during a preliminary hearing, which they argued was procedurally improper.

Legal Analysis of Res Judicata

The Supreme Court delineated two aspects of res judicata: "bar by prior judgment" and "conclusiveness of judgment." The Court explained that the latter was applicable, stating that when an issue has been resolved in a prior case between the same parties, it serves as conclusive evidence in subsequent cases. The Supreme Court then emphasized that the petitioners' complaint was barred since the issue of possession and ownership was settled in the earlier case.

Findings on Ownership and Bad Faith

The initial ruling by the Court of Appeals noted that the petitioners had acknowledged their lack of

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