Title
Strait Times, Inc. vs. Court of Appeals
Case
G.R. No. 126673
Decision Date
Aug 28, 1998
Petitioner claimed original title was not lost but in their possession; SC ruled RTC lacked jurisdiction to issue new duplicate, annulling reconstituted title.
A

Case Summary (G.R. No. 166387)

Relevant Dates and Legal Context

The decision is rooted in legal matters regarding registration and certificates of title, with specific references to the provisions of Act No. 496 (the Land Registration Act) and related orders concerning the issuance of new owner’s duplicates. The ruling was made under the supervision of the Regional Trial Court of Tacloban City and subsequently reviewed by the Court of Appeals.

Factual Background

Regino Penalosa, the private respondent, lost the owner’s duplicates of TCT Nos. T-3767 and T-28301 and subsequently filed a petition for their reissuance, claiming the titles were lost. The RTC granted this petition, declaring the lost titles as null and void and directing the Register of Deeds to issue a new owner’s duplicate. The decision became final on June 7, 1994. Strait Times, Inc. later filed a notice of adverse claim on TCT No. T-28301, arguing that it had legally acquired the property from Conrado Callera. The petitioner subsequently sought to annul the RTC's decision, alleging extrinsic fraud and lack of jurisdiction.

Respondent Court’s Findings

The Court of Appeals dismissed the petition for annulment on procedural and substantive grounds, noting the absence of an affidavit of merit in support of the petitioner’s claims. It stated that the exemptions due to extrinsic fraud were not substantiated because the petitioner was deemed to have constructive notice of the trial proceedings through the Register of Deeds being provided a copy of the reconstitution petition.

Legal Issues Identified

The core of the issue revolves around two questions: (1) whether extrinsic fraud occurred in the acquisition of the new owner’s duplicate, and (2) whether the RTC had the jurisdiction to grant such an order given that the original title was not lost but instead was in possession of the petitioner.

Supreme Court's Ruling on Extrinsic Fraud

The Supreme Court found no extrinsic fraud as defined under Section 2, Rule 47 of the Rules of Court. The alleged fraudulent acts were not extrinsic as they occurred within the context of the trial, and the petitioner failed to prove that it was prevented from presenting its case by means of deception. Establishing that the owner’s duplicate was in its possession, the court clarified that the alleged misleading representation regarding the loss of title was fundamentally intrinsic to the case's trial proceedings.

Jurisdictional Authority

Further, the Supreme Court affirmed the petitioner's assertion regarding the lack of jurisdiction of the RTC.

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