Case Summary (G.R. No. 213054)
Collection Proceedings and Execution of Judgment
Respondents sued Dante before the Makati RTC (Civil Case No. 01-357). On May 21, 2002, the court ordered payment of ₱100.1 million plus interest, attorney’s fees, and costs. Appeals failed, leading to the issuance of a writ of execution on February 16, 2005. Deputy Sheriff Ignacio levied on Dante’s titled property (TCT No. 126981) and conducted a judicial auction on March 29, 2005. Dante presented his wife’s affidavit asserting conjugal ownership, but failed to redeem. The Makati RTC denied his omnibus motion to quash and set aside the sale, ruling the property was not a family home exempt from execution or that the conjugal partnership had benefited from the loan.
Nullification Complaint in Parañaque RTC
On May 2, 2007, Teresita Tan filed Civil Case No. 07-0134 in the Parañaque RTC against respondents, Sheriff Ignacio, and the Register of Deeds to nullify the auction sale, cancel the certificate of sale, and annul the final deed of sale in favor of respondents.
Parañaque RTC’s Initial Dismissal and Reconsideration
On July 8, 2010, the Parañaque RTC dismissed the nullification case on res judicata grounds, finding Teresita had actively participated in the Makati proceedings. Upon her motion for reconsideration, it reversed itself on January 6, 2011, holding she was not a party to the collection case and had not waived her right to a separate action. It nullified the auction sale and related documents.
Appeal Attempts and Jurisdictional Misstep
Respondents moved for extension to file a Rule 65 petition in the Court of Appeals but inadvertently withdrew and filed a Notice of Appeal in the Parañaque RTC on June 17, 2011—ten days late. The RTC denied the appeal on August 5, 2011, and denied reconsideration on October 17, 2011.
Court of Appeals Decision Allowing Appeal
In its January 22, 2013 decision, the CA granted the certiorari petition, excused the technical lapse, and directed the Parañaque RTC to allow the late Notice of Appeal. It emphasized prudence in resolving cases on their merits and invoked the non-interference doctrine to prevent Dante’s continued evasion of a final Makati RTC judgment.
Issue on Doctrine of Judicial Stability
The Supreme Court framed the core issue as whether the Parañaque RTC violated the doctrine of judicial stability by entertaining and nullifying execution incidents that pr
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Facts
- In 2001, Simon Lori Holdings, Inc. (SLHI), Fortunato G. Pe, Raymundo G. Pe, Jovencio F. Cinco, and Jose Revilla Reyes, Jr., with PentaCapital Investment Corporation as facilitator, lent Dante Tan ₱50,000,000, secured by his shares in Best World Resources Corporation (BWRC).
- Dante failed to pay at maturity, offered to sell his BWRC shares to settle the loan, but then disappeared without executing deeds of assignment.
- Respondents filed a collection case (Civil Case No. 01-357) against Dante in Makati RTC. On May 21, 2002, the court awarded respondents ₱100,100,000 plus legal interest, attorney’s fees, and costs.
- Dante’s appeals were denied; a Writ of Execution issued on February 16, 2005. Deputy Sheriff Rommel Ignacio levied on Dante’s titled property (TCT No. 126981) and conducted an auction on March 29, 2005.
- Dante attempted to quash the writ by submitting his wife Teresita Tan’s affidavit asserting the property’s conjugal nature. Redemption period lapsed; a Sheriff’s Final Deed of Sale was issued in respondents’ favor.
Collection Case Decision and Execution
- Dante filed an Omnibus Motion claiming the property was a family home exempt from execution and that the conjugal partnership had not benefited.
- Makati RTC denied the motion: issues were belatedly raised; the family home exception had been previously resolved; presumption that Dante’s business benefited the conjugal partnership; levy and sale were valid.
- Writ of possession issued; Dante ordered to vacate. Motion for reconsideration denied. The decision became final.
Nullification Case Before Parañaque RTC
- May 2, 2007: Teresita Tan (Dante’s wife) filed Civil Case No. 07-0134 in Parañaque RTC to nullify the auction