Case Summary (G.R. No. 78490)
Factual Background
Bayot fully paid for her condominium and received a Condominium Certificate of Title which led to her status as a stockholder of Wack Wack. In July 1984, Wack Wack issued an undated Statement of Account demanding additional payment for assessments totaling P112,367.72. Following her refusal to pay, Wack Wack initiated an extrajudicial sale of her unit. In response, Bayot sought a legal injunction to halt the sale, which the SEC granted through a temporary restraining order.
Legal Proceedings Initiated
On September 10, 1984, petitioners sought a mandamus from the Regional Trial Court of Pasig to compel the foreclosure process. The RTC issued an order allowing the foreclosure without notifying Bayot, who remained unaware of the mandamus proceedings. Despite ongoing hearings at the SEC regarding the preliminary injunction, the petitioners continued to delay proceedings until ultimately proceeding with the extrajudicial sale on November 16, 1984, contrary to the SEC's restraining order.
Motion to Dismiss and Subsequent Decisions
Petitioners filed a Motion to Dismiss SEC Case No. 2675, claiming that the extrajudicial sale rendered the case moot and that the SEC lacked jurisdiction. In March 1985, the SEC denied this Motion. After a failed reconsideration, the petitioners escalated the matter to the Court of Appeals, which upheld the SEC’s actions and denied the Motion to Dismiss through resolutions in 1987.
Jurisdiction of the SEC
The SEC retained jurisdiction over the dispute regarding the validity of assessments, categorizing it as an intra-corporate matter between Wack Wack and Bayot. The legal framework governing condominium assessments asserted that such assessments created a lien on the property, and enforcement could occur through judicial or extrajudicial means, as stipulated by the Condominium Act and Wack Wack’s own by-laws.
Validity of the Foreclosure and Restraining Order
Petitioners challenged the validity of the SEC's second restraining order, arguing that it exceeded the SEC's authority. However, the Court addressed procedural irregularities raised by the petitioners, determining that their conduct—specifically the failure to disclose the mandamus action—undermined their objections to the SEC’s jurisdiction. The circumstances suggested an intent to c
...continue readingCase Syllabus (G.R. No. 78490)
Case Background
- This case concerns a Petition for Review on certiorari that challenges two Resolutions from the Court of Appeals affirming orders from the Securities and Exchange Commission (SEC) Hearing Officer.
- The petitioners include Wack Wack Condominium Corporation, Welbilt Construction Corporation, and Eugenio Juan Gonzalez.
- The private respondent is Josefina Bayot, who purchased a condominium unit in the Wack Wack Condominium building and became a stockholder of Wack Wack upon full payment for her unit.
Facts of the Case
- Bayot acquired a condominium unit and was issued Condominium Certificate of Title 727.
- In July 1984, Wack Wack issued an undated Statement of Account listing assessments totaling P112,367.72 against Bayot, which she contested as unreasonable and unauthorized.
- Wack Wack petitioned for an extrajudicial sale of Bayot’s unit due to her unpaid assessments, setting the sale date for August 24, 1984.
- On August 23, 1984, Bayot filed a petition for Injunction and Damages with the SEC, which resulted in a temporary restraining order (TRO) against the sale.
Legal Proceedings and Developments
- The petitioners filed a petition for mandamus in the Regional Trial Court (RTC) of Pasig, seeking to compel the Sheriff to proceed with the extrajudicial sale, which the RTC granted on October 5, 1984.