Title
Unirock Corp. vs. Carpio
Case
G.R. No. 213421
Decision Date
Aug 24, 2020
Unirock and Hardrock's MOA, a judicially approved compromise, was upheld by the Supreme Court despite Hardrock's non-payment of royalties and a third-party ownership claim. Execution was granted, but liability for unpaid royalties required remand for further evidence.

Case Summary (G.R. No. 213421)

Relevant Background and Procedural History

The case originated from a complaint filed by Carpio and Hardrock against Unirock for quieting of title, initially proceeding under Civil Case No. 94-3393 at the Regional Trial Court (RTC). Unirock was ultimately declared the rightful owner of the properties by the Supreme Court, with a final judgment entered on January 7, 2002. Following this, Unirock and Hardrock entered into a Memorandum of Agreement (MOA) allowing Hardrock the exclusive right to quarry the mineral resources, wherein royalties were to be paid to Unirock.

Events Leading to the Dispute

Subsequently, a separate complaint was filed by Teresa Gonzales against Unirock and Hardrock, seeking nullification of Unirock's title and claiming entitlement to the royalties. This ongoing litigation prompted Unirock to claim Hardrock's failure to pay the agreed royalties, which resulted in Unirock filing a motion for execution of the compromise agreement.

RTC and CA Rulings

The RTC denied Unirock's motion for execution in an order dated July 8, 2009, finding it premature due to Gonzales's pending complaint which raised questions about Unirock's title. The Court of Appeals (CA) later affirmed this ruling in a decision dated February 25, 2014, determining that Unirock's proof of royalty non-payment was insufficient and the execution would be unjust due to the ongoing issues regarding ownership.

Legal Principles and Court's Reasoning

The Supreme Court reiterated that a compromise judgment, once duly approved, has the status of a final and executory decision that typically cannot be disturbed unless there is a demonstration of vitiated consent or forgery. The Court underscored the principle of res judicata, emphasizing that any claims related to ownership from Gonzales do not affect the rights established under the prior final judgment in favor of Unirock concerning Hardrock's obligations.

Findings on Hardrock's Obligations

Although Hardrock had acknowledged Unirock's ownership in the MOA, the Supreme Court found that the previous rulings incorrectly conflated Gonzales's interests with Hardrock’s obligations. The Court conclu

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