Case Summary (G.R. No. 194461)
Procedural Posture
In February 2002, Zomer Development sued in the RTC for nullity of the foreclosure sale, Certificates of Sale and titles, and challenged the constitutionality of RA 8791 Sec. 47—arguing that the three-month redemption period for juridical persons violated equal protection. The Office of the Solicitor General (OSG) received notice but did not participate. The RTC dismissed the complaint for failure to implead the OSG. On appeal, the CA classified the action as declaratory relief and declined to rule on Sec. 47’s constitutionality, dismissing the appeal without prejudice. Zomer Development then petitioned the Supreme Court for mandamus to compel the CA to decide the issue.
Issues Presented
- Whether a petition for mandamus may compel the CA to rule on a statute’s constitutionality, given the discretionary nature of declaratory relief.
- Whether the case is moot in light of Goldenway Merchandising Corp. v. Equitable PCI Bank, which upheld Sec. 47’s constitutionality.
- Whether the RTC erred in dismissing the complaint for non-impleader of the Solicitor General.
Impleading the Solicitor General
Under Rule 63, Sec. 3, statutes’ validity challenges require notification to the Solicitor General, who may intervene at his discretion (Administrative Code, Sec. 35). Notice was duly furnished. The Solicitor General’s failure to participate amounted to waiver, and the RTC erred in dismissing the action for non-impleader or alleged deprivation of due process.
Discretionary Nature of Declaratory Relief
Declaratory relief lies within the court’s discretion (Rule 63, Sec. 5). The CA’s refusal to declare rights under Sec. 47 constituted an exercise of that discretion. A writ of mandamus compels only ministerial duties, not discretionary acts. The proper remedy to challenge such discretion would have been certiorari, not mandamus.
Mootness in Light of Goldenway Merchandising
Goldenway Merchandising (2013) directly addressed and upheld the constitutionality of RA 8791 Sec. 47 under the equal protection clause, finding the classification between natural and juridical persons reasonable and germane to banking stability. Subsequent cases (White Marketing Development, Spouses Limso) reaffirmed this ruling. As Sec. 47’s validity has been authoritatively settled, further adjudication would be moot.
Equal Protection Analysis
Under the 1987 Constitution, equ
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Procedural Posture
- Petition for mandamus filed before the Supreme Court seeking to compel the Court of Appeals to rule on the constitutionality of Section 47 of RA 8791 in CA-G.R. CV No. 00288.
- Regional Trial Court dismissed the original Complaint for declaratory relief, citing the non-impleader of the Solicitor General and alleged due-process violation.
- Court of Appeals dismissed the appeal “without prejudice,” classifying the action as declaratory relief and invoking its discretion under Rule 63, Section 5, to defer the constitutional issue to the Supreme Court.
- Zomer Development filed a Petition for Mandamus, arguing that the Court of Appeals unlawfully neglected its duty to decide the constitutional question.
Facts
- Zomer Development Company, Inc., a domestic corporation, owned three parcels of land in Cebu City (TCT Nos. 59105, 59123, 59214).
- The properties were mortgaged to International Exchange Bank as security for a loan.
- Upon default, the bank foreclosed extrajudicially, purchased the properties at auction, and obtained Certificates of Sale (registered December 10, 2001), resulting in new TCTs Nos. 361006–361008 in its name.
- Zomer Development filed a Complaint to nullify the Notice of Sale, Certificates of Sale, and TCTs, and to declare Section 47 of RA 8791 unconstitutional for granting juridical persons only a three-month redemption period versus one year for natural persons.
- Copies of the Complaint were furnished to the Office of the Solicitor General, which did not participate.
Issues
- Can a writ of mandamus compel the Court of Appeals to pass upon the constitutional