Title
Valencia vs. Regional Trial Court of Quezon City, Branch 90
Case
G.R. No. 82112
Decision Date
Apr 3, 1990
The Valencias contested ownership of a PHHC lot awarded to Jose Balot, leading to decades-long litigation. The Supreme Court ruled in their favor, dismissing subsequent claims under res judicata, affirming finality of judgments.

Case Summary (G.R. No. 82112)

Historical Background

The property at the center of the conflict has been occupied by the Valencias since 1950 when Rosa's mother, Irene Dadul, built a house on it. Throughout the years, despite expressing their desire to purchase the lot from PHHC, the Valencias faced hindrances including the misplacement of their application and an eventual award of the lot to a non-resident, Jose Balot. Subsequent legal actions taken by the Valencias to contest this award were unsuccessful until an appellate court ultimately favored them, recognizing their bona fide occupancy and prior application.

Earlier Legal Proceedings

The Involvement of Donelita Carino, who claimed to have purchased the Valencias’ "squatter's rights," complicated matters when she intervened in Civil Case No. Q-17465. The trial court initially ruled in Carino's favor; however, the Intermediate Appellate Court reversed this decision, confirming that the Valencias maintained rights over the lot, which were acknowledged as superior to any claims made by Carino and, implicitly, Balot.

New Complaint Filed by Corazon C. Llanes

In November 1984, Corazon C. Llanes, sister-in-law of Carino, initiated a separate civil complaint against the Valencias alleging that Rosa Valencia had sold her rights over the lot. This initiated a chain of motions and legal proceedings centered on ownership, possession, and the validity of previous claims regarding the lot.

Responses and Motions by the Valencias

The Valencias consistently asserted their rights over the property and sought to dismiss Llanes' complaint based on res judicata, arguing that the prior adjudicated case (Q-17465) effectively barred further claims regarding the same subject matter.

Court of Appeals Decision

Initially, the Court of Appeals ruled in favor of the Valencias, dismissing Llanes' complaint on the grounds of res judicata, asserting that the second case was an attempt to delay the execution of the appellate court’s judgment favoring the Valencias. However, following a motion for reconsideration by Llanes, the appellate court amended its decision, creating a distinction between the two cases based on a perceived lack of identity among parties and causes of action.

Supreme Court Review

The Supreme Court granted the petition for review filed by the Valencias after recognizing the potential delay in execution of the earlier order finalized by the Intermediate Appellate Court. The Court scrutinized whether the action taken by Llanes was barred by the earlier judgment and assessed the substantial identity of the parties involved in both cases.

Doctrine of Res Judicata

The central legal question addressed was whether the principle of res judicata applied, comprising the elements of finality, merit, jurisdiction, and identity among parties and causes of action. The Court clarified that substantial identity among parties was sufficient for res judicata to take effect; thus, Llanes’ claim essentially mirrored Carino’s, thereby applying the principle.

Findings on Ownership

The Court emphasized that any claim by Llanes could not stand against the previous definitive findings regarding the ownership and rights of the Valencias over the lot. Key judgments had already established that the Valencias were entitled to the property, rendering any subsequent claim fr

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