P. 1
Jma House Incorporated vs Austria Martinez

Jma House Incorporated vs Austria Martinez

|Views: 0|Likes:
Published by Kay Aviles
RAW CASE
RAW CASE

More info:

Published by: Kay Aviles on Dec 27, 2013
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

12/27/2013

pdf

text

original

FIRST DIVISION

JMA HOUSE INCORPORATED, G.R. No. 154156
Petitioner,
Present:

PANGANIAN, C.J.,
C!"ir#erson,
$ %ers&s $ 'NARES$SANTIAGO,
AUSTRIA$MARTINE(,
CA))EJO, SR., "n*
CHICO$NA(ARIO, JJ.

STA. MONICA INDUSTRIA)
"n* DE+E)OPMENT
CORPORATION "n* A. Pro,&-."te*:
GUERRERO DE+E)OPMENT
CORPORATION,
Res#on*ents. A&.&st /1, 0116


2$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$2


D E C I S I O N

CA))EJO, SR., J.:


e3ore t!e Co&rt is " Petition 3or Re%ie4 on Certior"ri o3 t!e De5ision617 o3 t!e Co&rt o3 A##e"-s 8CA9
in CA$G.R. C+ No. 611:5 "33ir,in. on "##e"- t!e De5ision607 o3 t!e Re.ion"- Tri"- Co&rt 8RTC9,
;&e<on Cit=, r"n5! 115, in Ci%i- C"se No. ;$>1$115?6.

JMA Ho&se In5or#or"te* 8JMA9 "##-ie* 3or " P1,511,111.11 -o"n 3ro, t!e Pioneer S"%in.s "n*
)o"n Asso5i"tion, In5. 8Pioneer9. To se5&re #"=,ent t!ereo3, JMA e2e5&te* " re"- est"te ,ort.".e
o%er " #"r5e- o3 -"n* i*enti3ie* "s )ot No. 4, -o5@ No. 1/, S&A*i%ision P-"n No. Ps*$/5//? 5o%ere*
A= Tr"ns3er Certi3i5"te o3 Tit-e 8TCT9 No. 06:106. T!e -ot, 4!i5! 4"s -o5"te* in ;&e<on Cit= "5ross
G"te 1 o3 t!e M"r=@no-- Co--e.e, !"* "n "re" o3 1,611.6 sB&"re ,eters.6/7 T!ere 4"s -i@e4ise "
t!ree$store= 5o,,er5i"- "n* resi*enti"- A&i-*in. 4!i5! 4"s o55&#ie* A= ten"nts.647 U#on t!e 3"i-&re
o3 JMA to #"= its -o"n, t!e re"- est"te ,ort.".e 4"s 3ore5-ose* e2tr"C&*i5i"--=. Pioneer 4"s t!e
4innin. Ai**er "t P0,111,111.11 *&rin. t!e s"-e "t #&A-i5 "&5tion !e-* on A&.&st 06, 1>:5. T!e
S!eri33 e2e5&te* " Certi3i5"te o3 S"-e o%er t!e #ro#ert= in 3"%or o3 Pioneer 4!i5! 4"s "nnot"te* "t
t!e *ors"- #ortion o3 TCT No. 06:106 on O5toAer 11, 1>:5.657 JMA !"* one =e"r or &nti- O5toAer
11, 1>:6 to re*ee, t!e #ro#ert=.


JMA *e5i*e* to re*ee, t!e #ro#ert= 3ro, Pioneer so,eti,e in J&ne 1>:6. It o33ere* to Aorro4 3ro,
St". Moni5" In*&stri"- "n* De%e-o#,ent Cor#or"tion 8St". Moni5"9 t!e ",o&nt o3 P0,/11,111.11.
D&rin. t!e ne.oti"tions Aet4een Rosit" A-Aerto, t!e Gener"- M"n".er o3 JMA, "n* St". Moni5"Ds
#resi*ent E&.enio Trini*"*, t!e #"rties ".ree* t!"t t!e -"tter 4o&-* #&r5!"se t!e #ro#ert= 3or
P/,101,111.11.667 Trini*"* insiste* t!"t JMA e2e5&te " *ee* o3 "Aso-&te s"-e o%er t!e #ro#ert= 3or
t!e #ri5e o3 P4,111,111.11. Rosit" A-Aerto s&..este* t!"t inste"* o3 " *ee* o3 "Aso-&te s"-e, " re"-
est"te ,ort.".e Ae e2e5&te* 5onsi*erin. t!"t t!e #ro#ert= 4"s 4ort! ,&5! ,ore t!"n
P4,111,111.11. Trini*"* re3&se*. = 4"= o3 " 5o,#ro,ise, A-Aerto s&..este* t!"t " s&##-e,ent
*ee* .i%in. JMA t!e o#tion to re#&r5!"se t!e #ro#ert= 4it!in " #erio* o3 t4o =e"rs Ae e2e5&te*.6?7
Trini*"* ".ree* to t!is #ro#os"-. T!&s, t!e -"4=ers o3 JMA "n* St". Moni5" #re#"re* t4o *ee*s.6:7
Ero, t!e P/,101,111.11 it re5ei%e* 3ro, St". Moni5", JMA re,itte* P0,/11,111.11 to Pioneer.

On J&ne 0/, 1>:6, Pioneer "n* JMA e2e5&te* " Dee* o3 )e."- Re*e,#tion "n* AAso-&te S"-e in
4!i5! Pioneer, 3or "n* 5onsi*er"tion o3 P0,/11,111.11, tr"ns3erre* to JMA "-- t!e ri.!ts o%er t!e
#ro#ert=, in5-&*in. t!e i,#ro%e,ents t!ereon, 4!i5! Pioneer "5B&ire* &n*er t!e Certi3i5"te o3 S"-e.
6>7 T!e #"rties, -i@e4ise, *e5-"re* t!erein t!"t it 4"s t!eir intention t!"t, 4it! t!e e2e5&tion o3 s"i*
*ee*, t!e -o"n o3 JMA ",o&ntin. to P1,051,111.11, in5-&*in. "-- interests, #en"-ties "n* 5!"r.es
t!ereon, 4ere 5onsi*ere* 3&--= #"i* "n* -e."--= e2tin.&is!e*.6117

On J&ne /1, 1>:6 JMA, re#resente* A= its Gener"- M"n".er Rosit" A-Aerto, e2e5&te* " Dee* o3
AAso-&te S"-e o%er t!e -ot, in5-&*in. t!e A&i-*in.s t!ereon, in 3"%or o3 St". Moni5", re#resente* A=
E&.enio Trini*"*. T!e re5ei#t 3or P4,111,111.11 "s #&r5!"se #ri5e 4"s "5@no4-e*.e* A= JMA 3ro,
St". Moni5".6117 As ".ree* &#on A= t!e #"rties, t!e #"rties -i@e4ise e2e5&te* " 5ontr"5t
*eno,in"te* "s O#tion to &=, in 4!i5! St". Moni5" ."%e JMA t!e o#tion to A&= t!e #ro#ert= 3or
P4,111,111.11 4it!in one 819 =e"r 3ro, t!e e2e5&tion o3 t!e Dee* O3 AAso-&te S"-e on or Ae3ore J&-=
1, 1>:?, 4it! " F.r"5e #erio*G o3 one =e"r i,,e*i"te-= &#on t!e e2#ir"tion t!ereo3 8&nti- J&-= 1,
1>::9. T!e #"rties ".ree* t!"t, in 5"se JMA "%"i-e* o3 s&5! e2tension, JMA 4o&-* Ae oA-i."te* to
#"= "n "**ition"- ",o&nt eB&i%"-ent to /.5H " ,ont! "s -iB&i*"te* *",".es, &nti- t!e 4!o-e ",o&nt
is 3&--= #"i* "n*Ior t!e o#tion is 3in"--= e2er5ise*.6107

A-Aerto t&rne* o%er to Trini*"* t!e o4nerDs *&#-i5"te o3 TCT No. 06:10.6 T!e Re.ister o3 Dee*s
t!ere"3ter iss&e* TCT No. /4?6/: in t!e n",e o3 St". Moni5"J61/7 !o4e%er, t!e O#tion to &= 4"s
not "nnot"te* "t t!e *ors"- #ortion o3 t!e tit-e.

As ".ree* &#on Aet4een JMA "n* St". Moni5", t!e -"tter t!en5e3ort! #"i* t!e re"-t= t"2es on t!e
#ro#ert=.6147 JMA 5ontin&e* 5o--e5tin. t!e rent"-s 3ro, t!e ten"nts o3 t!e A&i-*in.s 4it! t!e
@no4-e*.e "n* 5on3or,it= o3 St". Moni5". On No%e,Aer 1?, 1>:6, St". Moni5" ,ort.".e* t!e
#ro#ert= to t!e PCI C"#it"- Cor#or"tion "s se5&rit= 3or " P/,611,111.11 -o"n.6157

In " -etter *"te* J"n&"r= 06, 1>::, St". Moni5", t!ro&.! E&.enio Trini*"*, in3or,e* Rosit" A-Aerto
"n* t!e ten"nts o3 t!e A&i-*in.s in t!e #ro#ert= t!"t *&e to t!e 3"i-&re o3 JMA to Fre#&r5!"seG t!e
#ro#ert=, it !"* Aeen so-* to A. G&errero De%e-o#,ent Cor#or"tion 8AGCOR9 e33e5ti%e EeAr&"r= 1,
1>::, "n*, "s t!e ne4 o4ner, AGCOR 4o&-* Ae 5o--e5tin. t!e rent"-s.6167 Rosit" A-Aerto #roteste*
to Trini*"*, insistin. t!"t t!e #erio* .i%en to JMA to A&= A"5@ t!e #ro#ert= !"* not =et e-"#se*.
Ne%ert!e-ess, on EeAr&"r= 0, 1>::, St". Moni5" "n* AGCOR e2e5&te* " Dee* o3 AAso-&te S"-e
o%er t!e #ro#ert= 3or P5,?11,111.11, re5ei#t o3 4!i5! 4"s "5@no4-e*.e* A= St". Moni5".61?7 P"rt o3
t!e ",o&nt 4"s &se* A= St". Moni5" to re*ee, t!e #ro#ert= 3ro, PCI C"#it"- Cor#or"tion 4!i5!
e2e5&te* " Re-e"se o3 Re"- Est"te Mort.".e on EeAr&"r= 16, 1>::.61:7 On EeAr&"r= 1?, 1>::, t!e
Re.ister o3 Dee*s iss&e* TCT No. /?6?46 in t!e n",e o3 AGCOR.61>7 It #"i* t!e re"-t= t"2es on t!e
#ro#ert= st"rtin. 1>::.6017

Des#ite t!e s"-e o3 t!e #ro#ert= to AGCOR, Trini*"* re5ei%e*, on J&ne /1, 1>::, 3i%e 5!e5@s 3ro,
Rosit" A-Aerto *r"4n "."inst t!e "55o&nt o3 JMA in t!e tot"- ",o&nt o3 P/,111,111.11. He -i@e4ise
re5ei%e* P5?,111.11 3ro, Att=. Ros"-ie A-Aerto, Rosit"Ds sister "n* "
,e,Aer o3 t!e JMA o"r* o3 Dire5tors F"s #"rti"- #"=,ent o3 t!e "55o&nt o3 JMA 3or t!e #ro#ert=
-o5"te* "t No. //5, K"ti#&n"n Street, ;&e<on Cit=.G6017 Ho4e%er, t!e 5!e5@s 4ere *is!onore* A=
t!e *r"4ee "n@.6007 Trini*"* 3"i-e* to ret&rn t!e 5"s! ",o&nt o3 P5?,111.11 to JMA.

On O5toAer /1, 1>:>, AGCOR ,ort.".e* t!e #ro#ert= to P-"nterDs De%e-o#,ent "n@ "s se5&rit=
3or " P?,111,111.11 -o"n.60/7

A-,ost t4o =e"rs t!ere"3ter, or on No%e,Aer 11, 1>>1, JMA 3i-e* " 5o,#-"int "."inst St". Moni5"
"n* AGCOR, "s *e3en*"nts, in t!e RTC o3 ;&e<on Cit= 3or s#e5i3i5 #er3or,"n5e, re5on%e="n5e "n*
*",".es. It "--e.e* t!"t it ,ort.".e* its #ro#ert= to St". Moni5" "s se5&rit= 3or " P/,101,111.11
-o"n "n* P1,1?>,111.11 "s interestJ !o4e%er, &#on t!e insisten5e o3 Trini*"*, in -ie& o3 " re"- est"te
,ort.".e, " *ee* o3 "Aso-&te s"-e 4"s e2e5&te* o%er t!e #ro#ert= 3or t!e #ri5e o3 P4,111,111.11J "n
O#tion to &= 4"s "-so e2e5&te* in its 3"%or, .i%in. it t!e o#tion to A&= t!e #ro#ert= 3or
P4,111,111.11 4it!in " #erio* o3 one 819 =e"r 3ro, e2e5&tion t!ereo3, "n* in t!e ,e"nti,e, it
ret"ine* *o,inion o%er t!e #ro#ert=J on J"n&"r= 06, 1>::, it re5ei%e* noti5e t!"t Ae.innin. EeAr&"r=
1, 1>::, t!e ten"nts 4i-- #"= t!eir rent"-s to t!e ne4 o4ner o3 t!e #ro#ert=, *e3en*"nt AGCOR, to
4!i5! it #roteste*J *e3en*"nt St". Moni5" "ss&re* t!e #-"inti33 t!"t *e3en*"nt AGCOR 4"s "4"re o3
its o#tion to A&= t!e #ro#ert=.

JMA 3&rt!er "--e.e* t!"t it in3or,e* *e3en*"nt St". Moni5" on J&ne /1, 1>:: t!"t it 4"s re"*= to
re#&r5!"se t!e #ro#ert= 3or P5,:00,111.11 4it! "n initi"- #"=,ent o3 P/,15?,111.11 to Ae
i,,e*i"te-= ten*ere* on s"i* *"te, "n* t!e re,"inin. A"-"n5e o3 P0,?65,111.11 "3ter one ,ont!.
St". Moni5" "ss&re* JMA t!"t t!e #ro#ert= 4o&-* Ae *e-i%ere* to it 4it! AGCORDs 5on3or,it=. JMA
#"i* P/,15?,111.11 on J&ne /1, 1>::, #er re*e,#tion re5ei#t iss&e* A= Trini*"*, 4!o !o4e%er
re3&se* to re5ei%e t!e A"-"n5e. Des#ite re#resent"tions to *e3en*"nt AGCOR to "Ai*e A= t!e O#tion
to &=, AGCOR ,"int"ine* its ri.!t to #ossess "n* o4n t!e #ro#ert= "n* e%en 3i-e* eCe5t,ent 5"ses
"."inst itJ 4orse, St". Moni5" ne%er ret&rne* t!e *o4n#"=,ent .i%en on J&ne /1, 1>:: "n*
5ontin&es to Aene3it t!ere3ro,.

JMA "%erre* t!"t it !"* " ri.!t to re#&r5!"se t!e #ro#ert= &n*er t!e ter,s o3 t!e O#tion to &=
A.ree,ent *"te* J&ne /1, 1>:6, 5onsi*erin. t!"t t!e tr"ns"5tion "5t&"--= entere* into is one o3
eB&it"A-e ,ort.".e "n* not " *ee* o3 s"-e 4it! o#tion to A&=. De3en*"nt St". Moni5" is ,"n*"te*
A= -"4 to "Ai*e A= t!e s"i* ".ree,ent "n* 5o&-* not !"%e so-* t!e B&estione* #ro#ert= to *e3en*"nt
AGCOR, t"@in. into "55o&nt t!"t it !"s "55e#te* t!e ",o&nt o3 P/,15?,111.11 "s *o4n#"=,ent 3or
t!e #&r5!"se #ri5e. H"%in. so-* t!e #ro#ert= to AGCOR, *e3en*"nt St". Moni5" ,&st Ae ,"*e to
#"= t!e #-"inti33 t!e ",o&nt o3 P15,111,111.11 4!i5! is t!e "5t&"- ,"r@et %"-&e o3 t!e #ro#ert=, "s
4e-- "s t!e rent"- #"=,ents 4!i5! it 3"i-e* to 5o--e5t.6047 T!e #-"inti33 #r"=e* t!"t C&*.,ent Ae
ren*ere* in its 3"%or, t!&s:

LHEREEORE, it is ,ost res#e5t3&--= #r"=e* o3 t!is Honor"A-e Co&rt t!"t C&*.,ent Ae ren*ere* in
3"%or o3 t!e #-"inti33 or*erin.:

19 De3en*"nts St". Moni5" "n* AGCOR to res#e5t "n* "5@no4-e*.e t!e ri.!t o3 JMA to re#&r5!"se
"n* 5onseB&ent-= o4n "n* #ossess t!e #ro#ert= 3ree 3ro, -iens "n* "-- en5&,Ar"n5esJ

09 De3en*"nts to so-i*"ri-= #"= t!e #-"inti33 t!e "55r&e* rent"-s o3 P0,/60,511.11 "s o3 O5toAer 1>>1,
4it! "n "**ition"- P50,511.11 e%er= ,ont! t!ere"3ter &nti- *e3en*"nt AGCOR 5e"ses to 5o--e5t t!e
,entione* rent"-s 3ro, t!e ten"nts o3 t!e #re,isesJ

/9 Or*erin. *e3en*"nts to #"= e2e,#-"r= *",".es in t!e ",o&nt o3 P111,111.11, no,in"- *",".es
in t!e ",o&nt o3 P111,111.11, "ttorne=Ds 3ees in t!e s&, o3 P011,111.11 "n* t!e 5osts o3 s&itJ

J&st "n* eB&it"A-e re-ie3s "re, -i@e4ise, #r"=e* 3or &n*er t!e #re,ises.6057

Eor its #"rt, St". Moni5" "--e.e* in its Ans4er to t!e 5o,#-"int t!e 3o--o4in. s#e5i"- "n* "33ir,"ti%e
*e3enses: 819 JMA !"s no 5"&se o3 "5tion "."inst itJ 809 t!e 5o,#-"int is &n3o&n*e* "n* ,"-i5io&sJ
8/9 it "5te* in .oo* 3"it!J 849 t!e s&##ose* FO#tion to &=G is not s&##orte* A= %"-&"A-e 5onsi*er"tion
"n*, t!ere3ore, is &nen3or5e"A-eJ 859 "ss&,in. "r.&en*o t!"t t!ere 4"s "n e2tension to e2er5ise t!e
s"i* FO#tion to &=,G it 4"s not in 4ritin., 4it!o&t 5onsi*er"tion "n*, t!ere3ore, &nen3or5e"A-eJ 869
t!e ",o&ntIs 4!i5! JMA !"* .i%en to it !"* Aeen o33set A= t!e %"-&e o3 t!e #ro#ert= "n* t!e
res&-tin. *",".es s&st"ine* A= it 8St". Moni5"9. De3en*"nt 5-"i,e* P1,111,111.11, P511,111.11,
P011,111.11 "n* P111,111.11 5o,#&-sor= 5o&nter5-"i, re#resentin. "5t&"-, ,or"- "n* e2e,#-"r=
*",".es, in5-&*in. "ttorne=Ds 3ees "n* t!e -iti."tion e2#enses, res#e5ti%e-=.

De3en*"nt AGCOR "--e.e* in its Ans4er 4it! Cross$5-"i, "n* Co&nter5-"i,s t!"t t!e #!=si5"-
#ossession o3 t!e s&ACe5t #ro#ert= 4"s %o-&nt"ri-= s&rren*ere* A= St". Moni5" to it &#on e2e5&tion
o3 t!e Dee* o3 AAso-&te S"-e. It 5",e to @no4 o3 t!e "--e.e* FO#tion to &=G on-= on Se#te,Aer /1,
1>:: 4!en Trini*"* ,"*e "n o33er to re#&r5!"se t!e s&ACe5t #ro#ert= 4it! "n initi"- *o4n#"=,ent o3
P/,111,111.11, t!e A"-"n5e to Ae #"i* on t!e 3o--o4in. *"=. Ho4e%er, Trini*"* ne%er s!o4e* &# or
5"--e* "s #ro,ise*.

As s#e5i"- "n* "33ir,"ti%e *e3enses, it 5-"i,e* t!"t t!ere 4"s no 5"&se o3 "5tion "."inst it, sin5e
e%en "ss&,in. t!"t "n o#tion to A&= 4"s *&-= e2e5&te*, it 4"s not " #"rt= t!ereto. It #ointe* o&t t!"t
t!e o#tion 4"s not re.istere* nor "nnot"te* in t!e tit-e 4it! t!e Re.ister o3 Dee*s 3or t!e #&r#ose o3
.i%in. noti5e to t!e 4!o-e 4or-*J JMA 4"s esto##e* 3ro, 5-"i,in. t!"t its 5ontr"5t6067 4it! St".
Moni5" 4"s " s"-e 4it! ri.!t to re#&r5!"se, 5onsi*erin. t!"t t!ere 4"s no #re$e2istin. 5on*ition or
-i,it"tion 4!"tsoe%er to ser%e "s noti5e to t!ir* #ersons *e"-in. 4it! t!e s"i* #ro#ert=J it 4"s "
#&r5!"ser in .oo* 3"it! 4it!o&t @no4-e*.e o3 "n= ".ree,ent Aet4een JMA "n* St". Moni5" or "n=
3"5t t!"t 4o&-* %iti"te 5onsent in t!e "5B&isition o3 t!e #ro#ert=J it "5B&ire* -e."- tit-e t!r& s"-e "n* in
3"5t, TCT No. /?6?46 4"s iss&e* in its n",eJ "n* JMA is .&i-t= o3 -"5!es "n* it !"* not 5o,#-ete-=
e2er5ise* its o#tion to re#&r5!"se A= #"=in. t!e tot"- ",o&nt "n* t!ere is no #roo3 t!"t t!e o#tion
4"s e2ten*e* A= St". Moni5" 3or "not!er =e"r.

= 4"= o3 5ross$5-"i,, AGCOR "--e.e* t!"t JMA "n* St". Moni5" s!o&-* Ae t!e on-= #"rties in t!is
5"se, sin5e t!e= e2e5&te* t!e FO#tion to &=,G to its e25-&sion. e5"&se o3 its in5-&sion "s
*e3en*"nt, its .oo*4i-- 4"s *",".e* "n* it 4"s *e#ri%e* o3 its ri.!t o3 3&-- o4ners!i#J t!&s, 5ross$
*e3en*"nt St". Moni5" s!o&-* Ae !e-* -i"A-e 3or "5t&"- or 5o,#ens"tor= *",".es in t!e ",o&nt o3
P1,111,111.11. It -i@e4ise "sserte* 5o,#&-sor= 5o&nter5-"i,s in t!e ",o&nt o3 P511,111.11 "s
,or"- *",".es, P/11,111.11 "s e2e,#-"r= *",".es, "n* P011,111.11 "s "ttorne=Ds 3ees.60?7

On J"n&"r= 11, 1>>0, E&.enio Trini*"* *ie*.60:7 +i5tor Trini*"* Ae5",e t!e Presi*ent o3 St".
Moni5".

D&rin. tri"-, JMA #resente* Rosit" A-Aerto "n* !er sister, Att=. Ros"-ie A-Aerto "s 4itnesses.
Rosit" testi3ie* t!"t s!e .r"*&"te* 3ro, t!e Uni%ersit= o3 t!e P!i-i##ines 4it! " "5!e-or o3 Arts
*e.ree in E5ono,i5s.60>7 It 4"s E&.enio Trini*"* 4!o insiste* t!"t JMA e2e5&te " *ee* o3
"Aso-&te s"-e inste"* o3 " re"- est"te ,ort.".e to se5&re t!e P4,111,111.11 -o"n.6/17 S!e, in t&rn,
reB&este* t!"t "n o#tion to A&= Ae e2e5&te* A= t!e #-"inti33 to s&##-e,ent t!e *ee* o3 "Aso-&te s"-e
to 4!i5! Trini*"* ".ree*.6/17 JMA ret"ine* #ossession o3 t!e #ro#ert= "n* 5ontin&e* 5o--e5tin.
rent"-s 3ro, t!e ten"nts sin5e t!e tr"ns"5tion Aet4een t!e #"rties 4"s #re5ise-= " 5ontr"5t o3
,ort.".e.6/07 L!en s!e #roteste* to Trini*"*Ds -etter *"te* J"n&"r= 06, 1>:: in3or,in. !er "n* t!e
ten"nts t!"t t!e #ro#ert= !"* not Aeen re#&r5!"se* A= JMA, Trini*"* %erA"--= "ss&re* !er t!"t JMA
5o&-* re#&r5!"se t!e #ro#ert= "n* #"= t!e #ri5e t!ereo3 4it!in " re"son"A-e ti,e. Trini*"* ".ree* to
t!e re#&r5!"sin. o3 t!e #ro#ert= 3or P5,:00,111.11 #"="A-e in t4o inst"--,ents, to 4it: 8"9
P/,15?,111.11 on J&ne /1, 1>::J "n* 8A9 t!e A"-"n5e o3 P0,?6:,111.11 4it!in " re"son"A-e ti,e. On
J&ne /1, 1>::, P/,111,111.11 in 5!e5@s "n* P5?,111.11 5"s! 4"s #"i* A= JMA, t!ro&.! Att=.
Ros"-ie A-Aerto "n* Att=. Re--os" to Trini*"*, "n* 3or 4!i5! t!e -"tter iss&e* " re*e,#tion re5ei#t.
JMA 4"s re"*= to #"= t!e A"-"n5e o3 t!e re#&r5!"se #ri5e 8P0,?6:,111.119 A&t Trini*"* 5o&-* not Ae
-o5"te*, "n* 4orse, 3"i-e* to ret&rn t!e initi"- ",o&nt #"i*.6//7

On 5ross$e2",in"tion, Rosit" A-Aerto "*,itte* t!"t !er ".ree,ent 4it! Trini*"*, t!"t JMA 5"n
re#&r5!"se t!e #ro#ert= A= #"=in. t!e #ri5e 4it!in " re"son"A-e ti,e, 4"s ,ere-= %erA"- Ae5"&se
s!e tr&ste* Trini*"*.6/47 JMA *i* not 3i-e "n= 5o,#-"int 3or 5onsi.n"tion o3 t!e ",o&nt 3or its
re#&r5!"se o3 t!e #ro#ert=.6/57 S!e "*,itte* t!"t t!e 5!e5@s *e-i%ere* to Trini*"* !"* Aeen
*is!onore*.6/67 T!e res#e5ti%e -"4=ers o3 St". Moni5" "n* JMA t=#e* t!e *ee* o3 "Aso-&te s"-e "n*
o#tion to A&=.6/?7

Att=. Ros"-ie A-Aerto testi3ie* t!"t JMA is " 3",i-= 5or#or"tion. S!e -e"rne* o3 t!e *ee* o3 "Aso-&te
s"-e "n* o#tion to A&= on-= in EeAr&"r= 1>::.6/:7 S!e re#resente* JMA in t!e ne.oti"tions 4it!
Trini*"* 3or t!e re#&r5!"se o3 t!e #ro#ert=. Trini*"* in3or,e* !er t!"t !e !"* "-re"*= in3or,e*
*e3en*"nt AGCOR o3 #-"inti33Ds ten*er o3 P/,15?,111.11. He, !o4e%er, s&..este* t!"t s!e
#erson"--= in3or, AGCOR o3 s"i* ten*er. L!en s!e *i* so, G&errero in3or,e* !er t!"t AGCOR
5o&-* no -on.er "55e#t t!e o33er.6/>7 S!e 4"nte* to te-- Trini*"* "Ao&t 4!"t G&errero !"* s"i*, A&t
s!e 5o&-* no -on.er -o5"te !i,.6417

Er"n5o M"rB&e<, Presi*ent o3 t!e P!i-i##ine A##r"is"- Co., In5., testi3ie* t!"t t!e #ro#ert= 4"s
"##r"ise* on M"= 15, 1>:6, "n* its %"-&e 4"s #e..e* "t P11,1:1,111.11.6417
De3en*"nt St". Moni5" #resente* its #resi*ent, +i5tor Trini*"*, 4!o testi3ie* on t!e *",".es
s&st"ine* A= it. On 5ross$e2",in"tion, !e "*,itte* t!"t, *es#ite t!e *ee* o3 "Aso-&te s"-e, it ne%er
too@ #ossession o3 t!e #ro#ert=.6407 Neit!er *i* *e3en*"nt 5o--e5t rent"-s 3ro, t!e ten"nts o3 t!e
A&i-*in. Ae5"&se o3 t!e o#tion to A&=.64/7

A-Aerto G&errero, " *o5tor o3 ,e*i5ine "n* " -"4=er, testi3ie* t!"t !e 4"s t!e #resi*ent o3 AGCOR,
"-so " 3",i-= 5or#or"tion. L!en t!e #ro#ert= 4"s o33ere* 3or s"-e A= St". Moni5", !e e2",ine* t!e
tit-e in t!e Re.ister o3 Dee*s "n* *is5o%ere* t!"t it 4"s ,ort.".e* to PCI C"#it"- Cor#or"tion.6447
He ".ree* to A&= t!e #ro#ert= "n* #"i* St". Moni5"Ds -o"n on EeAr&"r= / "n* 16, 1>::, &#on 4!i5!
" Re-e"se o3 Re"- Est"te Mort.".e 4"s iss&e*.6457 In *&e 5o&rse, *e3en*"nts AGCOR "n* St".
Moni5" e2e5&te* " Dee* o3 AAso-&te S"-e 5o%erin. t!e #ro#ert=.6467 He 3&rt!er *e5-"re* t!"t
AGCOR se5&re* " P0,511,111.11 -o"n 3ro, P-"nterDs "n@ "n* &se* t!e ,one= to #"= St". Moni5".
On O5toAer /1, 1>:>, St". Moni5" e2e5&te* " re"- est"te ,ort.".e o%er t!e #ro#ert= in 3"%or o3
P-"nterDs "n@ "s se5&rit= 3or " P?,111,111.11 -o"n. T!e *ee* 4"s "nnot"te* "t t!e *ors"- #ortion o3
TCT No. /?6?46 on No%e,Aer 15, 1>:1.64?7 T!e #ro#ert= 4"s *e5-"re* 3or t"2"tion #&r#oses "3ter
t!e #ro#ert= !"* Aeen #&r5!"se*.64:7

On J"n&"r= 06, 1>>6, JMA 3i-e* "n O,niA&s Motion to A*,it Ne4-=$Dis5o%ere* E%i*en5e,
4!i5! in5-&*e* t!e A##r"is"- Re#ort o3 t!e P!i-i##ine A##r"is"- Co., In5.64>7 to #ro%e t!e 3"ir ,"r@et
%"-&e o3 t!e #ro#ert= "s o3 EeAr&"r= 1, 1>::. T!e RTC .r"nte* t!e ,otion "n* "--o4e* Er"n5o M.
M"rB&e< to testi3= on t!e A##r"is"- Re#ort.6517 T!e #-"inti33 o33ere* t!e Re#ort "s #"rt o3 t!e ,otion
"n* to #ro%e t!"t t!e "##r"is"- %"-&e o3 t!e #ro#ert= in M"= 1>:6 4"s P11,1:1,111.11. T!e re#ort
4"s "*,itte* "s #"rt o3 t!e testi,on= o3 M"rB&e<.6517

On De5e,Aer :, 1>>?, t!e tri"- 5o&rt ren*ere* C&*.,ent in 3"%or o3 t!e *e3en*"nts. It or*ere* t!e
*is,iss"- o3 t!e 5o,#-"int "n* or*ere* t!e #-"inti33 to #"= P51,111.11 to e"5! o3 t!e *e3en*"nts.
T!e 3"--o o3 t!e *e5ision re"*s:

LHEREEORE, in -i.!t o3 t!e 3ore.oin., t!e Co&rt ren*ers C&*.,ent "s 3o--o4s:

1. P-"inti33Ds 5o,#-"int is *is,isse* "n* it is or*ere* on t!e 5o&nter5-"i,, to #"= t!e ",o&nt o3
P51,111.11 e"5! to *e3en*"nt St". Moni5" In*&stri"- M De%e-o#,ent Cor#or"tion "n* *e3en*"nt A.
G&errero De%e-o#,ent Cor#or"tion "s "ttorne=Ds 3eesJ "n* to #"= t!e 5osts o3 s&itJ

0. T!e 5ross$5-"i, o3 A. G&errero De%e-o#,ent Cor#or"tion "."inst St". Moni5" In*&stri"- "n*
De%e-o#,ent Cor#or"tion is *is,isse*.

SO ORDERED.6507


T!e tri"- 5o&rt *isAe-ie%e* t!e testi,on= o3 Att=. A-Aerto, !o-*in. t!"t to *e5-"re t!e tr"ns"5tion
Aet4een t!e #-"inti33 "n* *e3en*"nt St". Moni5" "s "n eB&it"A-e ,ort.".e 4o&-* Ae &nC&st to t!e
-"tter.65/7 T!e tri"- 5o&rt note* t!"t t!e #-"inti33 ".ree* to t!e e2e5&tion o3 t!e *ee* o3 "Aso-&te s"-e
"n* t!e o#tion to A&=J Rosit" A-Aerto 4"s "n E5ono,i5s .r"*&"te "n* 4"s "ssiste* A= " -"4=er.
L!en t!e *ee* o3 "Aso-&te s"-e o%er t!e #ro#ert= 4"s e2e5&te*, JMA e%en o33ere* to
re#&r5!"seIA&= t!e #ro#ert= inste"* o3 re*ee,in. it, "n* 4"ite* &# to J&ne /1, 1>:: to ten*er t!e
re#&r5!"se #ri5e. T!e RTC 5on5-&*e* t!"t t!e tr&e intention o3 t!e #"rties 4"s t!e #ro#ert= to Ae
so-* to St". Moni5" 3or #ro3it, 4it! JMA ret"inin. t!e o#tion to A&= it A"5@ 3or P4,111,111.11 4it!in "
s#e5i3i5 #erio* o3 ti,e. Moreo%er, 5onsi*erin. t!"t JMA 3"i-e* to 3i-e "n "5tion 3or re3or,"tion o3
*ee*, it 4"s esto##e* 3ro, 5-"i,in. t!"t t!e *ee* o3 "Aso-&te s"-e "n* o#tion to A&= 3"i-e* to re3-e5t
t!e tr&e intention o3 t!e #"rties.
T!e RTC r&-e* t!"t t!e A##r"is"- Re#ort !"* no #roA"ti%e 4ei.!t Ae5"&se t!e #ro#ert= s&ACe5t
t!ereo3 4"s 5o%ere* A= TCT No. 01416, not t!e #ro#ert= 5o%ere* A= TCT No. 06:016 4!i5! 4"s t!e
s&ACe5t o3 t!e 5ontr"5t Aet4een t!e #-"inti33 "n* *e3en*"nt St". Moni5". E&rt!er, t!e re,itt"n5es
,"*e to Trini*"* A= 4"= o3 5!e5@s *i* not A&ttress t!e 5"se 3or JMA Ae5"&se t!e= 4ere so re,itte*
"3ter t!e sti#&-"te* one$=e"r #erio* "n* 4"s s!ort o3 t!e ".ree* ",o&nt o3 P4,111,111.11. It 4"s
3&rt!er #ointe* o&t t!"t t!e 5!e5@s Ao&n5e*.

T!e RTC "-so *e5-"re* t!"t Ae3ore AGCOR Ao&.!t t!e #ro#ert=, it !"* no @no4-e*.e o3 t!e o#tion
to A&= e2e5&te* A= JMA "n* St". Moni5"J "n* e%en i3 it !"*, JMA !"* 3"i-e* to e2er5ise its o#tion
"n* #"= t!e #&r5!"se #ri5e o3 t!e #ro#ert= 4it!in t!e sti#&-"te* #erio*. It 4"s 3&rt!er st"te* t!"t
t!ere is no e%i*en5e to #ro%e t!e s&##ose* oA-i."tion o3 St". Moni5" to ret&rn t!e ",o&nt o3
P5?,111.11 re5ei%e* A= Trini*"* on J&ne /1, 1>::J t!ere is no e%i*en5e t!"t !e 4"s "&t!ori<e* A=
St". Moni5" to *o so "n* t!"t !e re5ei%e* t!e ",o&nt 3or "n* in its Ae!"-3.6547

JMA "##e"-e* t!e *e5ision to t!e CA. On J"n&"r= 0:, 0110, t!e "##e--"te 5o&rt *is,isse* t!e
"##e"- "n* "33ir,e* t!e *e5ision o3 t!e RTC, !o-*in. t!"t t!e 5ontr"5ts entere* into A= t!e #"rties
"re 4!"t t!e= #&r#ort to Ae: " Dee* o3 AAso-&te S"-e "n* O#tion to &=J t!e *ee*s 4ere not"ri<e*,
!en5e, "re #&A-i5 *o5&,ents, "n* !"%e t!e #res&,#tion o3 re.&-"rit=. E&rt!er,ore, t!ere 4ere no
",Ai.&ities in t!e *ee*s. It 4"s 3&rt!er !e-* t!"t JMA 4"s A"rre* A= -"5!es to en3or5e its 5-"i, t!"t
t!e *ee* o3 "Aso-&te s"-e 4"s in 3"5t "n eB&it"A-e ,ort.".e. It #ointe* o&t t!"t t!e #ro#ert= 4"s not
re#&r5!"se* 4it!in t!e ti,e-ine 3i2e* in t!e O#tion to &=.6557

JMA 3i-e* " ,otion 3or t!e re5onsi*er"tion o3 t!e *e5ision 4!i5! t!e CA *enie* on J&-= 1, 0110.6567

JMA, no4 #etitioner, 3i-e* t!e inst"nt #etition 3or re%ie4 on 5ertior"ri, see@in. to re%erse t!e
r&-in. o3 t!e CA on t!e 3o--o4in. .ro&n*s:


I

THE HONORA)E COURT OE APPEA)S GRA+E)' ERRED IN NOT APP)'ING ARTIC)E 1610
OE THE CI+I) CODE AND NOT HO)DING THAT THE CONTRACT SUJECT MATTER OE THE
INSTANT PETITION IS THAT OE AN E;UITA)E MORTGAGE.

II

THE HONORA)E COURT OE APPEA)S GRA+E)' ERRED IN HO)DING THAT PETITIONER IS
GUI)T' OE )ACHES IN ASSERTING ITS RIGHT O+ER ITS PROPERT'.

III

THE HONORA)E COURT OE APPEA)S GRA+E)' ERRED IN UPHO)DING THE EINDING OE
THE )OLER COURT THAT RESPONDENT AGCOR HAS NO KNOL)EDGE OE THE
OPTION TO U'.65?7


It ,"int"ins t!"t t!e tri"- 5o&rt "n* t!e CA 3"i-e* to 5onsi*er t!e testi,on= o3 its Gener"- M"n".er
Rosit" A-Aerto, to #ro%e t!"t t!e 5ontr"5t entere* into Aet4een it "n* res#on*ent St". Moni5" is, in
re"-it=, " re"- est"te ,ort.".e. Petitioner ,"int"ins t!"t t!e tri"- 5o&rt "n* t!e "##e--"te 5o&rt
i.nore* t!e 3"5ts A"se* on t!e 3o--o4in. e%i*en5e: 819 #etitioner 4"s in *ire nee* o3 ,one= 4!en it
e2e5&te* t!e Dee* o3 AAso-&te S"-e "n* O#tion to &= on J&ne /1, 1>:5J 809 it 5ontin&e* to #ossess
t!e #ro#ert= "3ter t!e e2e5&tion o3 t!e Dee* o3 S"-e "n* O#tion to &=, "n* e%en 5o--e5te* t!e
rent"-s 3ro, t!e ten"nts o3 t!e 5o,,er5i"- "n* resi*enti"- A&i-*in.sJ 8/9 t!e #&r5!"se #ri5e o3
P4,111,111.11 is .ross-= in"*eB&"te "s #&r5!"se #ri5e o3 t!e #ro#ert= 5o,#"re* to its ,"r@et %"-&e
8P11,1:1,111.119 "s 3o&n* A= t!e P!i-i##ine A##r"is"- Co,#"n=.

On t!e ot!er !"n*, res#on*ents "%er t!"t t!e iss&es r"ise* A= t!e #etitioner "re 3"5t&"-, 4!i5! t!e
Co&rt is #ros5riAe* 3ro, re%ie4in.. Moreo%er, t!e 3in*in.s o3 3"5ts o3 t!e tri"- 5o&rt 4ere "33ir,e* A=
t!e CAJ !en5e, s&5! 3in*in.s "re 5on5-&si%e on t!is Co&rt. T!e= insist t!"t t!e CA *e5ision is in
"55or* 4it! t!e -"4 "n* t!e e%i*en5e on re5or*. Arti5-e 1610 o3 t!e Ne4 Ci%i- Co*e *oes not "##-=
in t!is 5"se Ae5"&se #etitioner 3"i-e* to e2er5ise its o#tion "n* #"= t!e ".ree* &#on re#&r5!"se
#ri5eJ !en5e, t!e CA 5orre5t-= r&-e* t!"t it 4"s A"rre* A= -"5!es 4!en it 3i-e* its 5o,#-"int Ae-o4 on-=
on No%e,Aer 11, 1>>1.

T!e t!res!o-* iss&es "re t!e 3o--o4in.: 819 4!et!er t!e Co&rt is #ros5riAe* 3ro, re%ie4in. t!e 3"5t&"-
iss&es r"ise* A= #etitionerJ 809 4!et!er t!e tr"ns"5tion Aet4een t!e #"rties is "n eB&it"A-e ,ort.".eJ
8/9 4!et!er t!e #etitioner is A"rre* A= -"5!es 3ro, 3i-in. t!e "5tion "."inst t!e res#on*entJ "n* 849
4!et!er res#on*ent AGCOR 4"s in .oo* 3"it! 4!en it #&r5!"se* t!e #ro#ert= 3ro, res#on*ent St".
Moni5" 3or P5,?11,111.11.

T!e #etition is *enie* 3or -"5@ o3 ,erit.

Se5tion 1, R&-e 45 o3 t!e R&-es o3 Co&rt #ro%i*es t!"t on-= B&estions o3 -"4 ,"= Ae r"ise* in t!is
Co&rt. T! e r"tion"-e 3or t!e r&-e is t!"t t!e Co&rt is not " trier o3 3"5tsJ it is not to re$e2",ine "n*
5"-iAr"te t!e e%i*en5e on re5or*, "s s&5! t"s@ is "ssi.ne* to t!e tri"- 5o&rt. T!e tri"- 5o&rtDs 3in*in.s,
"s "33ir,e* A= t!e CA, "re 5on5-&si%e on t!is Co&rt &n-ess t!ere is #re#on*er"nt e%i*en5e t!"t t!e
-o4er 5o&rt i.nore*, ,is5onstr&e* or ,isinter#rete* 5o.ent "n* s&Ast"nti"- 3"5ts "n* 5ir5&,st"n5es
4!i5!, i3 5onsi*ere*, 4o&-* ,o*i3= or re%erse t!e o&t5o,e o3 t!e 5"se.65:7 T!e Co&rt ,"= -oo@ into
"n* reso-%e 3"5t&"- iss&es in e25e#tion"- 5"ses s&5! "s 4!en t!e 3in*in.s "n* 5on5-&sions o3 t!e
tri"- 5o&rt "re 5ontr"r= to e%i*en5e on re5or* or t"inte* 4it! .r"%e "A&se o3 *is5retion ",o&ntin. to
e25ess o3 C&ris*i5tion.

On t!e se5on* iss&e, t!e -"4 is t!"t i3 t!e ter,s o3 " 5ontr"5t "re 5-e"r "n* -e"%e no *o&At &#on t!e
intention o3 t!e 5ontr"5tin. #"rties, t!e -iter"- ,e"nin. o3 its sti#&-"tions s!"-- 5ontro-.65>7 L!en t!e
-"n.&".e o3 t!e 5ontr"5t is e2#-i5it, -e"%in. no *o&At "s to t!e intention o3 t!e *r"3ters, t!e 5o&rts
,"= not re"* into it "n= ot!er intention t!"t 4o&-* 5ontr"*i5t its #-"in i,#ort.6617 T!e 5-e"r ter,s o3
t!e 5ontr"5t s!o&-* ne%er Ae t!e s&ACe5t ,"tter o3 inter#ret"tion. Neit!er "Astr"5t C&sti5e nor t!e r&-e
o3 -iAer"- inter#ret"tion C&sti3ies t!e 5re"tion o3 " 5ontr"5t 3or t!e #"rties 4!i5! t!e= *i* not ,"@e
t!e,se-%es or t!e i,#osition &#on one #"rt= to " 5ontr"5t or oA-i."tion not "ss&,e* si,#-= or
,ere-= to "%oi* see,in. !"r*s!i#s.6617 T!eir tr&e ,e"nin. ,&st Ae en3or5e*, "s it is to Ae
#res&,e* t!"t t!e 5ontr"5tin. #"rties @no4 t!eir s5o#e "n* e33e5ts.6607 I3 t!e #"rties e2e5&te t4o or
,ore se#"r"te 4ritin.s 5o%erin. " 5o,,on tr"ns"5tion "n* s&ACe5t ,"tter, t!e 4ritin.s s!o&-* Ae
re"* "n* inter#rete* to.et!er to ren*er t!e #"rtiesD intention e33e5ti%e.66/7 On t!e ot!er !"n*, i3 t!e
5ontr"5t is ",Ai.&o&s or t!e 5ontr"5tin. #"rties o33er 5on3-i5tin. 5-"i,s on t!eir intent, t!e tri"- 5o&rt,
"t t!e 3irst inst"n5e, !"s to "s5ert"in t!e tr&e intent o3 t!e #"rties, t"@in. into "55o&nt t!e
5onte,#or"neo&s "n* s&AseB&ent 5on*&5t, "5tions "n* 4or*s o3 t!e #"rties ,"teri"- to t!e 5"se,
6647 "n* #ertinent 3"5ts !"%in. " ten*en5= to 3i2 "n* *eter,ine t!e re"- intent o3 t!e #"rties "n*
&n*ert"@in. s!"-- Ae 5onsi*ere*. It is t!e #"rtiesD intention 4!i5! s!"-- Ae "55or*e* #ri,or*i"-
5onsi*er"tion. T!e re"son"A-eness o3 t!e res&-t oAt"ine*, "3ter "n"-=sis "n* 5onstr&5tion o3 t!e
5ontr"5tI5ontr"5ts, ,&st "-so Ae 5"re3&--= 5onsi*ere*.6657 T!e "s5ert"ine* intention o3 t!e #"rties is
*ee,e* "n inte.r"- #"rt o3 t!e 5ontr"5t, "s t!o&.! it !"* Aeen ori.in"--= e2#resse* in &neB&i%o5"-
ter,s. T!e Co&rt 4i-- en3or5e t!e tr&e ".ree,ent o3 t!e #"rties e%en i3 t!e #ro#ert= in B&estion !"s
"-re"*= Aeen re.istere* "n* " ne4 tr"ns3er 5erti3i5"te o3 tit-e is iss&e* in t!e n",e o3 t!e tr"ns3eree.
6667

T!e r&-e is t!"t !e 4!o "--e.es t!"t " 5ontr"5t *oes not re3-e5t t!e tr&e intention o3 t!e #"rties t!ereto
,"= #ro%e t!e s",e A= *o5&,ent"r= or #"ro- e%i*en5e.66?7 In t!is 5"se, #etitioner "--e.es t!"t t!e
Dee* o3 AAso-&te S"-e "n* O#tion to &= *o not re3-e5t t!e tr&e intention o3 t!e #"rties, 4!i5!
"55or*in. to it is " -o"n 4it! ,ort.".e or "n eB&it"A-e ,ort.".e. T!e #etitioner is A&r*ene* to #ro%e,
A= 5-e"r "n* 5on%in5in. e%i*en5e, t!e ter,s o3 t!e 4ritin.s.66:7 In t!e -"n.&".e o3 St"te S&#re,e
Co&rt o3 Nort! C"ro-in" in ODAri"nt %. )ee,66>7 Ft!e intention ,&st Ae est"A-is!e*, not A= si,#-e
*e5-"r"tions o3 t!e #"rties, A&t A= #roo3 o3 3"5ts "n* 5ir5&,st"n5es, in5onsistent 4it! t!e r&-e o3
"Aso-&te #&r5!"se, ot!er4ise, t!e so-e,nit= o3 *ee*s 4o&-* "-4"=s Ae e2#ose* to t!e s-i##er=
,e,or= o3 4itnesses.G T!e #res&,#tion is t!"t t!e 5ontr"5t is 4!"t it #&r#orts to AeJ "n*, to
est"A-is! its 5!"r"5ter "s " ,ort.".e, t!e e%i*en5e ,&st Ae 5-e"r, &neB&i%o5"- "n* 5on%in5in. 4!i5!
re"sons ten*in. to s!o4 t!"t t!e tr"ns"5tion 4"s inten*e* "s " se5&rit= 3or *eAtJ "n* t!&s to Ae "
,ort.".e ,&st Ae s&33i5ient to s"tis3= e%er= re"son"A-e ,in* 4it!o&t !esit"tion.6?17 A -ess ri.oro&s
r&-e 4o&-* ,e"n t!"t no ,"n is s"3e in t"@in. " *ee* o3 #ro#ert=. It 4o&-* Ae on-= ne5ess"r= 3or t!e
.r"ntor to Arin. 4itnesses to "n ".ree,ent t!"t t!e *ee* 4"s re."r*e* "s "n eB&it"A-e ,ort.".e, to
en"A-e !i,, on #"=,ent o3 t!e #&r5!"se #ri5e "n* interest, to re*ee,, #"rti5&-"r-= i3 t!e %"-&e o3 t!e
#ro#ert= !"* *o&A-e* or treA-e* in r"tio.6?17 Un-ess t!e testi,on= is entire-= #-"in "n* 5on%in5in.
Ae=on* re"son"A-e 5ontro%ers=, t!e 4ritin. 4i-- Ae !e-* to e2#ress 5orre5t-= t!e intention o3 t!e
#"rties.6?07 I3 t!ere is " *o&At "s to t!e 3"5t 4!et!er t!e tr"ns"5tion is in t!e n"t&re o3 " ,ort.".e,
t!e #res&,#tion, in or*er to "%oi* " 3or3eit&re is "-4"=s in 3"%or o3 " #osition to re*ee,, to s&Aser%e
"Astr"5t C&sti5e "n* "%ert inC&rio&s 5onseB&en5es.6?/7

An eB&it"A-e ,ort.".e is one 4!i5!, "-t!o&.! -"5@in. in so,e 3or,"-it=, or 3or, or 4or*s or ot!er
reB&isites *ee,e* reB&ire* A= st"t&tes ne%ert!e-ess re%e"-s t!e intention o3 t!e #"rties to 5!"r.e "
re"- #ro#ert= "s se5&rit= 3or " *eAt "n* 5ont"ins not!in. i,#ossiA-e or 5ontr"r= to -"4. An eB&it"A-e
,ort.".e ,"= Ae 5onstit&te* A= "n= 4ritin. 3ro, 4!i5! t!e intention to 5re"te s&5! " -ien ,"= Ae
#"tterne*.

Un*er Arti5-e 1610 o3 t!e Ne4 Ci%i- Co*e, " 5ontr"5t s!"-- Ae #res&,e* to Ae "n eB&it"A-e ,ort.".e
in "n= o3 t!e 3o--o4in. 5"ses:

819 L!en t!e #ri5e o3 " s"-e 4it! ri.!t to re#&r5!"se is &n&s&"--= in"*eB&"teJ

809 L!en t!e %en*or re,"ins in #ossession "s -essee or ot!er4iseJ

8/9 L!en &#on or "3ter t!e e2#ir"tion o3 t!e ri.!t to re#&r5!"se "not!er instr&,ent e2ten*in. t!e
#erio* o3 re*e,#tion or .r"ntin. " ne4 #erio* is e2e5&te*J

849 L!en t!e #&r5!"ser ret"ins 3or !i,se-3 " #"rt o3 t!e #&r5!"se #ri5eJ
859 L!en t!e %en*or Ain*s !i,se-3 to #"= t!e t"2es on t!e t!in. so-*J

869 In "n= ot!er 5"se 4!ere it ,"= Ae 3"ir-= in3erre* t!"t t!e re"- intention o3 t!e #"rties is t!"t t!e
tr"ns"5tion s!"-- se5&re t!e #"=,ent o3 " *eAt or t!e #er3or,"n5e o3 "n= ot!er oA-i."tion.


Eor t!e #res&,#tions &n*er t!e "rti5-e to "##-=, t4o reB&isites ,&st 5on5&r: 819 t!"t t!e #"rties
entere* into " 5ontr"5t *eno,in"te* "s " s"-eJ "n* 809 t!"t t!eir intention 4"s to se5&re "n e2istin.
*eAt A= 4"= o3 ,ort.".e.6?47 In or*er 3or " *ee* to Ae *e5-"re* " ,ort.".e, t!e re-"tion o3 *eAtor
"n* 5re*itor ,&st e2ist Aet4een t!e .r"ntor in s&5! " *ee* "n* one 4!o see@s to !"%e it *e5-"re* "
,ort.".e.6?57 T!ere ,&st Ae " 5ontin&in. Ain*in. *eAtJ " *eAt in its 3&--est sense. L!ere t!ere is no
*eAt, t!ere 5"n Ae no ,ort.".eJ 3or i3 t!ere is not!in. to se5&re, t!ere 5"n Ae no se5&rit=.6?67 I3 t!ere
is "n in*eAte*ness or -i"Ai-it= Aet4een t!e #"rties, eit!er " *eAt e2istin. #rior to
t!e 5on%e="n5e, or " *eAt "risin. 3ro, " -o"n ,"*e "t t!e ti,e o3 t!e 5on%e="n5e, or 3ro, "n= ot!er
5"&se, "n* t!is *eAt is sti-- -e3t s&Asistent, not Aein. *is5!"r.e* or s"tis3ie* A= t!e 5on%e="n5e, A&t
t!e .r"ntor is re."r*e* "s sti-- o4in. "n* Ao&n* to #"= "t so,e 3&t&re ti,e, so t!"t t!e #"=,ent
sti#&-"te* 3or in t!e ".ree,ent to re$5on%e= is in re"-it= t!e #"=,ent o3 t!is e2istin. *eAt, t!en t!e
4!o-e tr"ns"5tion ",o&nts to " ,ort.".e, 4!"te%er sti#&-"tion t!e= ,"= !"%e inserte* in t!e
instr&,ents. I3 t!ere is no re-"tion o3 *eAtor$5re*itor, A&t A= t!e ter,s o3 t!e 5ontr"5t one is ,ere-=
.i%en "n o#tion to A&= re"- #ro#ert= 3or " 3i2e* ",o&nt "n* 3or " 3i2e* #ri5e, t!ere is no eB&it"A-e
,ort.".eJ t!e o#tionee is not Ao&n* to A&= "n* to #"= 3or s"i* re"- #ro#ert=.6??7

In t!e #resent 5"se, t!e tri"- "n* "##e--"te 5o&rts *e5-"re* t!"t A"se* on t!e e%i*en5e on re5or*,
#etitioner so-* t!e #ro#ert= to res#on*ent St". Moni5" 3or P/,101,111.11J "s st"te* in t!e O#tion to
&=, #etitioner ,"= o#t to re#&r5!"se t!e #ro#ert= 3or P4,111,111.11. Res#on*ent St". Moni5"
".rees 4it! t!e 3in*in.s o3 t!e tri"- 5o&rt "n* t!e "##e--"te 5o&rt.6?:7

T!e tri"- 5o&rt 3"i-e* to ,"@e "n= 3in*in. 4!= #etitioner so-* t!e #ro#ert= to res#on*ent St". Moni5"
3or P/,101,111.11, 4!i5! is 5ontr"r= to 4!"t "##e"rs on t!e 3"5e o3 t!e *ee* o3 "Aso-&te s"-e $
P4,111,111.11$4!i5! ",o&nt #etitioner "5@no4-e*.e* to !"%e re5ei%e* 3ro, s"i* res#on*ent.
A-t!o&.! #etitioner 5-"i,e* in its 5o,#-"int t!"t t!e tr&e #&r5!"se #ri5e o3 t!e #ro#ert= 4"s
P/,101,111.11 "n* t!"t it Aorro4e* 3ro, res#on*ent St". Moni5" P1,1?>,111.11 "s ,ort.".e 3or
one =e"r 83ro, J&ne /1, 1>:6 to J&ne /1, 1>:?9, no testi,oni"- "n* *o5&,ent"r= e%i*en5e 4"s
"**&5e* to #ro%e t!e s",e. Petitioner 4"s A&r*ene* to #ro%e its 5-"i, in its 5o,#-"int t!"t it
Aorro4e* P/,101,111.11 3ro, res#on*ent St". Moni5",6?>7 3"i-in. 4!i5! its 5-"i, 4i-- Ae *e3e"te*
e%en i3 res#on*ents 3"i-e* to #resent "n= e%i*en5e to #ro%e t!eir si*e.6:17

To reiter"te, t!ere is no e%i*en5e on re5or* t!"t #etitioner Aorro4e* P/,101,111.11 3ro, res#on*ent
St". Moni5" in 1>:6 "s "--e.e* in its 5o,#-"int. T!e on-= e%i*en5e on re5or* is t!"t #etitioner
*e5i*e* in J&ne 1>:6 to re*ee, t!e #ro#ert= 3ro, Pioneer ,&5! e"r-ier t!"n t!e one$=e"r$#erio*
t!ere3or "n* nee*e* P0,/11,111.11 3or t!e #&r#ose. Petitioner re5ei%e* t!e ",o&nt 3ro, res#on*ent
St". Moni5" "n* 4"s "A-e to re*ee, t!e #ro#ert= 3ro, Pioneer. T!e on-= e%i*en5e o3 #etitioner t!"t
it re5ei%e* ,one= 3ro, res#on*ent St". Moni5" is t!e Dee* o3 AAso-&te S"-e, in 4!i5! t!e #etitioner
"5@no4-e*.e* to !"%e re5ei%e* P4,111,111.11.

T!e FRe*e,#tion Re5ei#tG si.ne* A= Trini*"* on J&ne /1, 1>:: 3or P/,111,111.11 in t!e 3or, o3
5!e5@s "n* P5?,111.11 in 5"s! F"s #"rti"- #"=,ent o3 t!e "55o&nt o3 JMA 3or t!e #ro#ert= 2 2 2G
*oes not 5onstit&te e%i*en5e t!"t #etitioner se5&re* " -o"n o3 P/,101,111.11 3ro, res#on*ent St".
Moni5" in J&ne 1>:6. T!e s"i* ",o&nt 4"s #"rt o3 t!e P5,:00,111.11 4!i5! #etitioner 4"s oA-i.e*
to #"= to res#on*ent St". Moni5", in 5"se it o#te* to A&= t!e #ro#ert= &n*er t!e O#tion to &=,
re#resentin. t!e re#&r5!"se #ri5e, in5-&si%e o3 -iB&i*"te* *",".es. In 3"5t, Rosit" A-Aerto testi3ie*
t!"t #etitioner e2#e5te* res#on*ent St". Moni5" to e2e5&te " *ee* o3 s"-e o%er t!e #ro#ert= &#on its
#"=,ent o3 P4,111,111.11. T!is is .-e"ne* 3ro, t!e testi,on= o3 Att=. A-Aerto:

Att=. "-A"stro:
; )et ,e #&t it t!is 4"=, &n*er t!ese *o5&,ents, E2!iAits "n* C, ,ore #"rti5&-"r-= E2!iAit C,
t!e O#tion to &=, JMA Ho&se In5or#or"te* 4"s .i%en &# to J&ne /1, 1>:: 4it!in 4!i5! to e2er5ise
!er o#tion to A&=, is t!"t 5orre5tN
A 'es, Sir.

; An* "s o3 J&ne /1, 1>::, !o4 ,&5! ,one= *i* =o& ten*er to St". Moni5" In*&stri"-
Cor#or"tionN
A I ten*ere* " tot"- ",o&nt o3 t!ree ,i--ion 3i3t=$se%en t!o&s"n* #esos, Sir.

; An* !o4 ,&5! is t!e re*e,#tion #ri5e, i3 =o& @no4N I3 =o& @no4 t!e re#&r5!"se #ri5eN
A "se* on t!e #"#ers t!"t 5"n Ae 3o&n* on t!e *ee* o3 "Aso-&te s"-e, i3 JMA Ho&se
In5or#or"te* 4"s to re*ee, t!e #ro#ert= *&rin. t!e 3irst =e"r, 4e 4ere s&##ose* to re#&r5!"se on
ti,e.


COURT:
; 'o& "re " -"4=er, ri.!tN
A 'es, 'o&r Honor.

LITNESS:
A To re#&r5!"se t!e #ro#ert= 4it!in t!e 3irst =e"r, " tot"- ",o&nt o3 3o&r ,i--ion one !&n*re*
t!o&s"n* #esos, in5-&si%e o3 interest, 4"s s&##ose* to Ae #"i*. I3 t!e re#&r5!"se 4"s to Ae ,"*e on
t!e se5on* =e"r, interests o3 /.5 #er 5ent #er ,ont! 4"s to Ae "**e* on t!e 3"5e %"-&e 4!i5! is one
,i--ion one !&n*re* t!o&s"n* #esos.

2 2 2 2

Att=. "-A"stro:
; Asi*e 3ro, E2!iAit G, =o& *o not !"%e "n= ot!er *o5&,ent 5on5ernin. t!e #"=,ent =o&
,"*e to St". Moni5" In*&stri"- Cor#or"tionN
A No ot!er.

; No4, s&AseB&ent to t!e #"=,ents 8si59 o3 E2!iAits "n* C, no ot!er 4ritten *o5&,ent 4"s
e2e5&te* Aet4een JMA Ho&se In5or#or"te* "n* St". Moni5" In*&stri"- "n* De%e-o#,ent
Cor#or"tion, is t!"t 5orre5tN
A No ot!er Ae5"&se 4e 4ere e2#e5tin. t!"t t!e ne2t *o5&,ent to Ae e2e5&te* 4"s " *ee* o3
"Aso-&te s"-e o3 St". Moni5" In*&stri"- Cor#or"tion A"5@ to JMA Ho&se In5or#or"te* 5o%erin. t!e
#ro#ert=.6:17


I3, "s 5-"i,e* A= #etitioner, t!e tr"ns"5tion Aet4een it "n* res#on*ent St". Moni5" 4"s "n eB&it"A-e
,ort.".e, t!e -"tter 4o&-* Ae oA-i.e* to e2e5&te " C"n5e--"tion o3 Re"- Est"te Mort.".e or Re-e"se
o3 Mort.".e o%er t!e #ro#ert= in 3"%or o3 t!e #etitioner. &t, "s "*,itte* A= Rosit" A-Aerto, #etitioner
*i* not e2#e5t res#on*ent St". Moni5" to e2e5&te "n= o3 t!eseJ #etitioner e2#e5te* t!"t " *ee* o3
s"-e 4o&-* Ae e2e5&te* in its 3"%or.

It Ae"rs stressin. t!"t #etitioner "n* res#on*ent St". Moni5" 4ere "ssiste* A= t!eir res#e5ti%e
-"4=ers *&rin. t!e ne.oti"tions !e-* Aet4een Rosit" A-Aerto "n* Trini*"*. L!i-e Trini*"* insiste*
on " *ee* o3 "Aso-&te s"-e, Rosit" A-Aerto s&..este* t!"t " re"- est"te ,ort.".e Ae e2e5&te* A= t!e
#"rties inste"*. Trini*"* reCe5te* t!is, &#on 4!i5! Rosit" #ro#ose* t!"t "n o#tion to A&= Ae
e2e5&te* "s " s&##-e,ent to t!e *ee* o3 "Aso-&te s"-e, to 4!i5! Trini*"* re"*i-= ".ree*. OA%io&s-=,
t!e #"rties !"* "rri%e* "t "
5o,#ro,ise to e2e5&te t4o *ee*s: " *ee* o3 "Aso-&te s"-e 3or P4,111,111.11, "n* " *ee* o3 o#tion
to en"A-e #etitioner to A&= t!e #ro#ert= 3or t!e s",e #ri5e. Rosit" A-Aerto testi3ie*, t!&s:

; No4, =o& "-so ,"*e ,ention t!"t =o& !"* ,ort.".e* t!e #ro#ert= to St". Moni5" In*&stri"-
Cor#or"tion. Di* =o& e2e5&te "n= *o5&,ent to #ro%e t!"t ,ort.".eN
A 'es. T!ro&.! t!e ne.oti"tion 4e 4ere t"-@in. "Ao&t " re"- est"te ,ort.".e A&t Mr. Trini*"*
insiste* on " *ee* o3 s"-e in t!eir 3"%or. Ho4e%er, I reB&este* 3or "not!er *o5&,ent "n o#tion to
A&=Io#tion to re#&r5!"se 4!i5! is s&##-e,ent to t!e *ee* o3 s"-e 4!i5! 4o&-* .i%e &s t4o =e"rs
3ro, t!e *"te o3 si.nin., to re#&r5!"se t!e #ro#ert=.

ATT'. )A(ARO:
; M"*", Litness, *o =o& sti-- re5"-- t!e e2"5t *"te 4!en t!is *ee* o3 "Aso-&te s"-e 4"s
e2e5&te*N
A It 4"s J&ne /1t! 1>:6.

; An* !o4 "Ao&t t!e o#tion to A&= ".ree,ent t!"t =o& "re ,entionin.N L!en 4"s it
e2e5&te*N
A It 4"s e2e5&te* 6si,&-t"neo&s-=7 on t!e s",e *"=, J&ne /1, 1>:6.

; I ", .oin. to s!o4 =o& no4 " *ee* o3 "Aso-&te s"-e Aet4een JMA Ho&se In5or#or"te* "n*
St". Moni5" In*&stri"- "n* De%e-o#,ent Cor#or"tion 4!i5! !"s Aeen #re%io&s-= ,"r@e* "s E2!iAit
"n* E2!iAit $1. L!"t is t!e re-"tion o3 t!is *ee* o3 "Aso-&te s"-e to t!e one t!"t =o& "re re3errin.
toN
A T!is is t!e s",e *ee* o3 "Aso-&te s"-e t!"t 4e si.ne*.

; An* I ", 5"--in. =o&r "ttention to E2!iAit $1 4!erein t!e si.n"t&re o%er "n* "Ao%e t!e n",e
Rosit" A-Aerto 6"##e"rs7, 4!ose si.n"t&re is t!"tN
A M= si.n"t&re, Sir.

; An* I ", "-so 5"--in. =o&r "ttention to t!e si.n"t&re o%er "n* "Ao%e t!e n",e E&.enio E.
Trini*"*, Presi*ent "n* Gener"- M"n".er. L!ose si.n"t&re is t!"tN
A Mr. Trini*"*6Ds7.6:07


T!e res#e5ti%e -"4=ers o3 #etitioner "n* res#on*ent St". Moni5" t!ere"3ter #re#"re* t!e *ee*s
4!i5! 4ere e2e5&te* on J&ne /1, 1>:6 Ae3ore t!e s",e Not"r= P&A-i5, Ati-"no H. )i,. A55or*in. to
Rosit" A-Aerto, t!e O#tion to &= s&##-e,ente* t!e Dee* o3 AAso-&te S"-e. T!e testi,on= o3 Rosit"
A-Aerto on t!e ,"tter 3o--o4s:

; A-ri.!t, I 4i-- re"* to =o& =o&r E2!. FC,G &n*er t!e se5on* LHEREAS, "n* I B&ote: L!ere"s,
t!e #"rties in t!e "3ore,entione* Dee* ,&t&"--= ".ree* t!"t t!e +ENDOR JMA HOUSE
INCORPORATED is .i%en "n o#tion to A&= A"5@ t!e #ro#erties s&ACe5t t!eretoOG Do =o& re5"-- t!is
#ro%isionN
A 'es. T!is is t!e *o5&,ent.

; An*, in t!is se5on* LHEREAS, t!e "3ore,entione* Dee* re3erre* to !ere is t!e Dee*
re3erre* to in t!e 3irst LHEREAS, t!"t is t!e Dee* o3 AAso-&te S"-e, ,"r@e* "s E2!iAit FG, is t!"t
5orre5tN
A 'es.

; I ", .oin. A"5@ to ,= 3irst B&estion. In ot!er 4or*s, t!e A"sis o3 t!e o#tion to A&= is t!e
s&##ose* ,&t&"- ".ree,ent Aet4een JMA Ho&se In5or#or"te* "n* St". Moni5" In*&stri"- "n*
De%e-o#,ent Cor#or"tion to .i%e JMA Ho&se In5or#or"te* t!e 6o#tion7 to A&= A"5@ t!e #ro#ert= "s
#ro%i*e* in t!e Dee* o3 AAso-&te S"-e ,"r@e* !ere "s E2!iAit F,G is t!"t 5orre5tN
A T!e= 4ere s&##-e,entin. e"5! ot!er, t!e o#tion to A&= "n* t!e *ee* o3 "Aso-&te s"-e.6:/7


T!e 3"5t t!"t #etitioner so-* t!e #ro#ert= to res#on*ent St". Moni5" is e%i*en5e* A= Rosit" A-AertoDs
"*,ission t!"t s!e *e-i%ere* to res#on*ent St". Moni5" t!e o4nerDs *&#-i5"te o3 TCT No. 06:106,
"3ter 4!i5! t!e -"tter !"* t!e #ro#ert= re.istere* in its n",e, 5on3or,"A-= 4it! t!eir F#re$
"rr"n.e,ent.G T!is 5"n Ae .-e"ne* 3ro, !er testi,on=, in "ns4er to t!e B&estions o3 5o&nse- o3
res#on*ent AGCOR:

ATT'. )UCAS:
; A3ter J&ne /1, 1>:6, 'o&r Honor.

LITNESS:
A A3ter J&ne /1, 1>:6, t!e t"2es 4ere #"i* A= STA. MONICA. T!"t 4"s t!e #re$"rr"n.e,ent,
'o&r Honor, 4it! STA. MONICA. An* it 4o&-* Ae "As&r* 3or JMA to #"= t!e t"2es 4!en t!e tit-e 4"s
4it! STA. MONICA. An* 4e Ae-ie%e t!"t t!e= 4o&-* Ae &sin. it 3or t!eir #&r#oses, t!e tit-eJ 3or STA.
MONICADs #&r#oses. So, t!e= "re ,ore t!"n 4i--in. to t"@e &# t!e t"2es.6:47

A-t!o&.! Rosit" A-Aerto *i* not s#e5i3= t!e #"rti5&-"rs o3 !er F#re$"rr"n.e,entG 4it! Trini*"* o&tsi*e
o3 t!e Dee* o3 AAso-&te S"-e "n* O#tion to &=, it 5"n s"3e-= Ae #res&,e* t!"t t!e= ".ree* t!"t
#etitioner 4o&-* 5ontin&e 5o--e5tin. rent"-s 3ro, t!e ten"nts, "n* res#on*ent ,"= ,ort.".e
t!e #ro#ert= "s se5&rit= 3or its P/,611,111.11 -o"n 3ro, t!e PCI C"#it"- Cor#or"tion. Petitioner
4o&-* t!en Ae "A-e to .ener"te 3&n*s 3or t!e #&r5!"se o3 t!e #ro#ert= on or Ae3ore J&ne /1, 1>:? or
1>::, #"rt-= 3ro, t!e rent"-s. On t!e ot!er !"n*, res#on*ent St". Moni5" 4"s "A-e to .ener"te 3&n*s
3ro, its -o"n, 4it! t!e #ro#ert= "s 5o--"ter"-, 3or its A&siness. ot! #"rties Aene3ite* &n*er t!e
"rr"n.e,ent.

L!i-e it is tr&e t!"t #er A##r"is"- Re#ort o3 t!e P!i-i##ine A##r"is"- Cor#or"tion, t!e #ro#ert= o3 t!e
#etitioner !"* " %"-&e, "s o3 1>:6, o3 P11,1:1,111.11, *es#ite 4!i5!, A-Aerto ".ree* to se-- t!e
#ro#ert= 3or P4,111,111.11 &n*er t!e Dee* o3 AAso-&te S"-e, ne%ert!e-ess, A-Aerto 5"nnot Ae
3"&-te*. A3ter "--, &n*er t!e O#tion to &=, #etitioner 4"s oA-i.e* to #"= on-= P4,111,111.11.

It ,&st Ae stresse* t!"t "n o#tion is " 5ontin&in. o33er or 5ontr"5t A= 4!i5! "n o4ner sti#&-"tes 4it!
"not!er t!"t t!e -"tter s!"-- !"%e t!e ri.!t to A&= t!e #ro#ert= "t " 3i2e* #ri5e 4it! " 5ert"in ti,e, or
&n*er, or in 5o,#-i"n5e 4it!, 5ert"in ter,s "n* 5on*itionsJ or 4!i5! .i%es to t!e o4ner o3 t!e
#ro#ert= t!e ri.!t to se-- or *e,"n* " s"-e.6:57 It is, in 3ine, "n &n"55e#te* o33er, .o%erne* A= t!e
se5on* #"r".r"#! o3 Arti5-e 14?> o3 t!e Ne4 Ci%i- Co*e 4!i5! st"tes t!"t F" #ro,ise to A&= "n* se--
" *eter,in"te t!in. 3or " #ri5e 5ert"in is re5i#ro5"--= *e,"n*"A-e.G An o#tion is not o3 itse-3 "
#&r5!"se, A&t ,ere-= se5&res t!e #ri%i-e.e to A&=. An o#tion is " #ri%i-e.e .i%en A= t!e o4ner o3 t!e
#ro#ert= to "not!er to A&= t!e #ro#ert= "t !is e-e5tion, "n* t!e o4ner *oes not se-- t!e #ro#ert= A&t
.i%es "not!er t!e ri.!t to A&= "t !is e-e5tion.6:67 It i,#oses no Ain*in. oA-i."tion on t!e #erson
!o-*in. t!e o#tion, "si*e 3ro, t!e 5onsi*er"tion 3or t!e o33er. Lit!o&t "55e#t"n5e, it is not, #ro#er-=
s#e"@in., tre"te* "s " 5ontr"5t, "n* *oes not %est, tr"ns3er or ".ree to tr"ns3er, "n= tit-e to, or "n=
interest or ri.!t in t!e s&ACe5t #ro#ert=, A&t is ,ere-= " 5ontr"5t A= 4!i5! t!e o4ner o3 t!e #ro#ert=
.i%es t!e o#tionee t!e ri.!t or #ri%i-e.e o3 "55e#tin. t!e o33er "n* A&=in. t!e #ro#ert= on 5ert"in
ter,s.6:?7

T!&s, "n o#tion 5ontr"5t in%o-%es t4o *istin5t e-e,ents, t!"t is: 819 t!e o33er to se--, 4!i5! *oes
not Ae5o,e " 5ontr"5t &nti- "55e#te*J 809 t!e 5o,#-ete* 5ontr"5t to -e"se t!e o33er 3or " s#e5i3ie*
ti,e.6::7 It is " se#"r"te "n* *istin5t 5ontr"5t 3ro, t!"t 4!i5! t!e #"rties ,"= enter into, &#on t!e
5ons&,,"tion o3 t!e o#tion.

It Ae"rs stressin. t!"t "n o#tion ,&st Ae s&##orte* A= " 5onsi*er"tion *istin5t "n* se#"r"te 3ro, t!e
#ri5e. A 5onsi*er"tion 3or "n o#tion"- 5ontr"5t is C&st "s i,#ort"nt "s t!e 5onsi*er"tion 3or "n= ot!er
@in* o3 5ontr"5t.6:>7 I3 t!ere is no 5onsi*er"tion 3or t!e o#tion"- 5ontr"5t, t!en it 5"nnot Ae en3or5e*
"n=,ore t!"n "n= ot!er 5ontr"5t 4!ere no 5onsi*er"tion e2ists.6>17 Ho4e%er, 5"se -"4 is t!"t
"-t!o&.! "n o#tion is not Ain*in. "s " 5ontr"5t 3or 4"nt o3 5onsi*er"tion, =et i3 t!e o33er 5ont"ine*
t!erein is not 4it!*r"4n, its "55e#t"n5e 4it!in t!e ti,e -i,ite* .i%es rise to " 5ontr"5t o3 s"-e,
Ain*in. on t!e %en*or, 4!i5! 5"nnot Ae "33e5te* A= "n= s&AseB&ent "tte,#t to 4it!*r"4 t!e o33er.
6>17

T!e o#tionee or #ro,isee is A&r*ene* to #ro%e s&5! 5onsi*er"tion 3or t!e o#tion. T!e 5onsi*er"tion
3or t!e o#tion is not #res&,e*. In +i--",or %. Co&rt o3 A##e"-s,6>07 t!e Co&rt r&-e* t!"t
5onsi*er"tion is Ft!e 4!= o3 t!e 5ontr"5t, t!e essenti"- re"son 4!i5! ,o%es t!e 5ontr"5tin. #"rties to
enter into t!e 5ontr"5t.G6>/7 T!e 5onsi*er"tion 3or " 5ontr"5t, in5-&*in. "n o#tion, nee* not Ae ,one=
or "n=t!in. o3 ,onet"r= %"-&e A&t ,"= 5onsist o3 eit!er " Aene3it or " *etri,ent to t!e #ro,isor.6>47
T!ere is s&33i5ient 5onsi*er"tion 3or
" #ro,ise i3 t!ere is "n= Aene3it to t!e #ro,isee or "n= *etri,ent to t!e #ro,isor. A Aene3it s!o&-*
not ne5ess"ri-= "55r&e to t!e #ro,isee i3 " *etri,ent to t!e #ro,isor is #resentJ "n* t!ere is
5onsi*er"tion i3 t!e #ro,isee *oes "n=t!in. -e."- 4!i5! !e is not Ao&n* to *o or re3r"in 3ro, *oin.
"n=t!in. 4!i5! !e !"s " ri.!t to *o, 4!et!er or not t!ere is "n= "5t&"- -o"n or *etri,ent to !i, or
"5t&"- Aene3it to t!e #ro,isor.6>57 It is s&33i5ient t!"t so,et!in. %"-&"A-e 3-o4s 3ro, t!e #erson to
4!o, it is ,"*e, or t!"t !e s&33ers so,e #reC&*i5e or in5on%enien5e, "n* t!"t t!e #ro,ise is t!e
in*&5e,ent to t!e tr"ns"5tion. In*ee*, t!ere is " 5onsi*er"tion i3 t!e #ro,isee, in ret&rn 3or t!e
#ro,ise, *oes "n=t!in. -e."- 4!i5! !e is not Ao&n* to *o, or re3r"ins 3ro, *oin. "n=t!in. 4!i5! !e
!"s " ri.!t to *o, 4!et!er t!ere is "n= "5t&"- -oss or *etri,ent to !i, or "5t&"- Aene3it to t!e
#ro,isor or not.6>67

Le ".ree 4it! t!e r&-in.s o3 t!e tri"- 5o&rt "n* t!e CA t!"t t!e o#tion .r"nte* to t!e #etitioner !"s "
5onsi*er"tion *istin5t 3ro, t!e #&r5!"se #ri5e o3 t!e #ro#ert= 3or P4,111,111.11.

As .-e"ne* 3ro, t!e O#tion to &= itse-3, t!e ".ree,ent 4"s e2e5&te* A= t!e #"rties Ae5"&se o3 t!e
Dee* o3 AAso-&te S"-e t!e= !"* e2e5&te* on t!e s",e o55"sion. Inste"* o3 t!e #"rties e2e5&tin. "
Re"- Est"te Mort.".e "s s&..este* A= #etitioner, t!e #"rties, A= 4"= o3 5o,#ro,ise, ".ree* to
e2e5&te " Dee* o3 AAso-&te S"-e, on t!e 5on*ition t!"t t!e= e2e5&te "n O#tion to &=, .i%in.
#etitioner t!e #ri%i-e.e to re#&r5!"se t!e #ro#ert= 4it!in " #erio* o3 one =e"r, 4it! " .r"5e #erio* o3
one =e"r i,,e*i"te-= &#on t!e e2#ir"tion o3 t!e ori.in"- one =e"r #erio*. As "*,itte* A= Rosit"
A-Aerto, t!e t4o *ee*s 5o,#-e,ente* e"5! ot!er, t!e O#tion to &= Aein. " s&##-e,ent to t!e Dee*
o3 AAso-&te S"-e. In 3ine, #etitioner 4o&-* not !"%e ".ree* to se-- t!e #ro#ert= to res#on*ent St".
Moni5" &n-ess #etitioner 4"s .i%en t!e o#tion to re#&r5!"se t!e #ro#ert= 3or t!e s",e ",o&nt.

Ho4e%er, 4e ".ree 4it! t!e r&-in. o3 t!e CA t!"t #etitioner 3"i-e* to e2er5ise its o#tion "n* noti3=
res#on*ent St". Moni5" o3 its "55e#t"n5e o3 t!e -"tterDs o33er 4it!in t!e ti,e-ine &n*er t!e O#tion to
&=. Un*er t!e s"i* *ee*, #etitioner !"* one =e"r 3ro, J&ne /1, 1>:6 or &# to J&ne /1, 1>:? to
e2er5ise its o#tion, "n* in 5"se o3 3"i-&re to *o so, it !"* " one =e"r .r"5e #erio* 83ro, J&-= 1, 1>:?
to J&ne /1, 1>::9, #ro%i*e* t!"t, in t!e -"tter 5"se, it 4o&-* #"= eB&it"A-e *",".es o3 /.5H " ,ont!
3ro, J&-= 1, 1>:? to J&ne /1, 1>:: &nti- 3&-- #"=,ent o3 t!e #&r5!"se #ri5e or &nti- t!e o#tion is
3in"--= e2er5ise*. T!e #ertinent #ortion o3 t!e 5ontr"5t re"*s:

NOL, THEREEORE, 3or "n* in 5onsi*er"tion o3 t!e 3ore.oin. #re,ises, sti#&-"tions "n* 5on*itions,
t!e JMA HOUSE INCORPORATED is !ereA= .i%en "n o#tion to A&= A"5@ t!e s&ACe5t #ro#erties
,entione* in t!e "3ores"i* Dee* o3 AAso-&te S"-e, "n* in -i@e ,"nner t!e STA. MONICA
INDUSTRIA) AND DE+E)OPMENT CORPORATION !ereA= &n*ert"@es "n* Ain*s itse-3 to rese--
t!e s",e &nto t!e s"i* JMA HOUSE INCORPORATED 4it!in " #erio* o3 One 819 =e"r 3ro, "n*
"3ter *"te o3 e2e5&tion o3 t!e s"i* Dee* 3or " 3i2e* 5onsi*er"tion o3 EOUR MI))ION ONE
HUNDRED THOUSAND PESOS 8P4,111,111.119 P!i-i##ine C&rren5=J PRO+IDED, HOLE+ER,
s!o&-* t!e s"i* JMA HOUSE INCORPORATED 3"i-e* 8si59 to e2er5ise t!e !erein o#tion to A&= A"5@
4it!in t!e "Ao%e$st"te* #erio*, t!e JMA HOUSE INCORPORATED Ae 8si59 .i%en " .r"5e #erio* o3
"not!er One 819 =e"r i,,e*i"te-= t!ere"3ter. In 5"se o3 s&5! e2tension t!e JMA HOUSE
INCORPORATED !ereA= &n*ert"@es "n* Ain*s itse-3 to #"= "n ",o&nt eB&i%"-ent to T!ree "n*
one$!"-3 #er5ent 8si59 ,ont! 3or "n* "s -iB&i*"te* *",".es &nti- t!e 4!o-e ",o&nt is 3&--= #"i*
"n*Ior t!e o#tion is 3in"--= e2er5ise*.

It is 5-e"r t!"t #etitioner 3"i-e* to e2er5ise its o#tion on or Ae3ore J&ne /1, 1>:?. Neit!er *i* #etitioner
e2er5ise its o#tion "n* #"= t!e -iB&i*"te* *",".es to res#on*ent St". Moni5" 3ro, J&-= 1, 1>:? &#
to J&ne 1>::. T!is i,#e--e* res#on*ent St". Moni5" to in3or, #etitioner t!"t Ae5"&se o3 its 3"i-&re to
e2er5ise its o#tion to #&r5!"se t!e #ro#ert=, it !"* to *is5ontin&e 5o--e5tin. t!e rent"-s 3ro, t!e
ten"nts o3 t!e A&i-*in.s. On EeAr&"r= 0, 1>::, res#on*ent St". Moni5" so-* t!e #ro#ert= to
res#on*ent AGCOR, 4!i5! se5&re* TCT No. /?6?46 on EeAr&"r= 1?, 1>::.

T!e O#tion to &= #ro%i*es t!"t "55e#t"n5e ,&st Ae "55o,#"nie* A= #"=,ent o3 -iB&i*"te*
*",".esJ s&5! #"=,ent is " 5on*ition #re5e*ent to t!e e2er5ise o3 t!e ri.!t to A&=, "n* t!e ,one=
,&st Ae ten*ere* or o33ere*. A ,ere noti5e o3 "n intention to "55e#t, or o3 "n "55e#t"n5e 4it!o&t
s&5! #"=,ent or ten*er, *oes not 5onstit&te " %"-i* 5o,#-i"n5e.6>?7 Res#on*ent St". Moni5"Ds
"55e#t"n5e o3 t!e 3i%e 5!e5@s in t!e tot"- ",o&nt o3 P/,111,111.11 "n* t!e 5"s! ",o&nt o3
P5?,111.11 on J&ne /1, 1>::, "s #"rti"- #"=,ent o3 #etitionerDs "55o&nt *i* not res&s5it"te t!e ri.!t
4!i5! #etitioner !"* A= t!en "-re"*= -ost, #"rti5&-"r-= sin5e t!e #ro#ert= !"* "-re"*= Aeen so-* "n*
tit-e* to AGCOR. T!e s"i* #"rti"- #"=,ent 4"s "n e2er5ise in 3&ti-it=, ,"*e 4orse A= t!e 3"5t t!"t t!e
3i%e 5!e5@s 4ere *is!onore* A= t!e *r"4ee A"n@.

IN )IGHT OE A)) THE EOREGOING, t!e #etition is DENIED. Costs "."inst t!e #etitioner.

SO ORDERED.


ROMEO J. CA))EJO, SR.
Asso5i"te J&sti5e

St". it !"* Aeen so-* to A.s in t!e #ro#ert= t!"t *&e to t!e 3"i-&re o3 JMA to Fre#&r5!"seG t!e #ro#ert=.111. Ros"-ie A-Aerto.ister o3 Dee*s iss&e* TCT No. /?6?46 in t!e n". As "."te* to #"= "n "**ition". JMA t!e o#tion to re#&r5!"se t!e #ro#ert= 4it!in " #erio* o3 t4o =e"rs Ae e2e5&te*.6017 Des#ite t!e s"-e o3 t!e #ro#ert= to AGCOR. T!e re5ei#t 3or P4.ree* &#on A= t!e #"rties.111.6?7 Trini*"* ".051. 1>:6. He -i@e4ise re5ei%e* P5?.e* Rosit" A-Aerto "n* t!e ten"nts o3 t!e A&i-*in.Est"te Mort.es. t!ro&. On J&ne 0/.es t!ereon.11 it re5ei%e* 3ro.e o3 AGCOR. t!e #"rties -i@e4ise e2e5&te* " 5ontr"5t *eno.111.e* t!e #ro#ert= to t!e PCI C"#it".ent *ee* .ister o3 Dee*s t!ere"3ter iss&e* TCT No.o&ntin. 1>:6 JMA. Moni5". t!e Re."inst t!e "55o&nt o3 JMA in t!e tot". A-Aerto s&."./11.".e* A= JMA 3ro.e Ae e2e5&te* 5onsi*erin.111.e*i"te-= &#on t!e e2#ir"tion t!ereo3 8&nti. in5-&*in. St". 1>::.?11.". 3i%e 5!e5@s 3ro.111. in 3"%or o3 St". Moni5" "n* AGCOR e2e5&te* " Dee* o3 AAso-&te S"-e o%er t!e #ro#ert= 3or P5.". Att=.er Rosit" A-Aerto.Aer o3 t!e JMA o"r* o3 Dire5tors F"s #"rti". t!e A&i-*in.61:7 On EeAr&"r= 1?. Moni5".6117 On J&ne /1.e "n* 5on3or.11 to JMA. 6>7 T!e #"rties. T!&s.in"te* "s O#tion to &=.6117 As ".e o3 St".t!e #ri5e o3 P4. -i@e4ise.111..enio Trini*"*.11 to Pioneer. Rosit" A-Aerto *r"4n ". Trini*"* re3&se*. t!e P/. t!e O#tion to &= 4"s not "nnot"te* "t t!e *ors". 06:10. PCI C"#it".ort.este* t!"t inste"* o3 " *ee* o3 "Aso-&te s"-e.101. St". K"ti#&n"n Street.ree* to t!is #ro#os"-.111. on EeAr&"r= 0.". //5.6:7 Ero. " re"est"te .s t!ereon. t!e -"4=ers o3 JMA "n* St".ent Cor#or"tion 8AGCOR9 e33e5ti%e EeAr&"r= 1. in 4!i5! St".#ortion o3 t!e tit-e. JMA 4o&-* Ae oA-i.11. t!"t t!e #erio* .enio Trini*"*.ent o3 t!e "55o&nt o3 JMA 3or t!e #ro#ert= -o5"te* "t No.Cor#or"tion 4!i5! e2e5&te* " Re-e"se o3 Re".11.6 T!e Re. Moni5". t!e #ro#ert= 3ro.&e<on Cit=.6147 JMA 5ontin&e* 5o--e5tin."%e JMA t!e o#tion to A&= t!e #ro#ert= 3or P4. e2e5&te* " Dee* o3 AAso-&te S"-e o%er t!e -ot. 1>::. "-.&is!e*.t!e 4!o-e ". 1>:6.it= o3 St".o&nt o3 P5?. Pioneer "n* JMA e2e5&te* " Dee* o3 )e. 3or "n* 5onsi*er"tion o3 P0. 4ere 5onsi*ere* 3&--= #"i* "n* -e.111.111. On No%e. St"./11.ree* t!"t. re5ei#t o3 4!i5! 4"s "5@no4-e*.M"n".r"5e #erio*G o3 one =e"r i. Rosit" A-Aerto s&. . Moni5"J61/7 !o4e%er. 1>::. 1>::.ise.Aer 1?. t!"t t!e #ro#ert= 4"s 4ort! .#ro%e.e. t!e e2e5&tion o3 t!e Dee* O3 AAso-&te S"-e on or Ae3ore J&-= 1. Rosit"Ds sister "n* " .".este* t!"t " s&##-e. "s t!e ne4 o4ner.J&-= 1. G&errero De%e-o#. 1>::. "n*.ents t!ereon.o&nt eB&i%"-ent to /. Moni5".". 1>:?.111.111.6107 A-Aerto t&rne* o%er to Trini*"* t!e o4nerDs *&#-i5"te o3 TCT No. 4!i5! Pioneer "5B&ire* &n*er t!e Certi3i5"te o3 S"-e. . Trini*"* re5ei%e*. t!e i. 1>::. t!e rent"-s. T!e #"rties ". re#resente* A= its Gener". 1>::.t!e ri.111. Moni5".ort.i%en to JMA to A&= A"5@ t!e #ro#ert= !"* not =et e-"#se*.11 -o"n. in 5"se JMA "%"i-e* o3 s&5! e2tension. Moni5" #re#"re* t4o *ee*s.ont! "s -iB&i*"te* *". JMA re. t!e -"tter t!en5e3ort! #"i* t!e re"-t= t"2es on t!e #ro#ert=.6167 Rosit" A-Aerto #roteste* to Trini*"*.111.11 4it!in one 819 =e"r 3ro. #en"-ties "n* 5!"r. 4it! t!e e2e5&tion o3 s"i* *ee*.11. 1>::9.111. in3or.#"=.#ro."--= e2tin. Ne%ert!e-ess.o&nt o3 P/. on J&ne /1. *e5-"re* t!erein t!"t it 4"s t!eir intention t!"t.Cor#or"tion "s se5&rit= 3or " P/. t!e 5!e5@s 4ere *is!onore* A= t!e *r"4ee "n@.11 3ro.11.111. /4?6/: in t!e n". Moni5".!ts o%er t!e #ro#ert=.ore t!"n P4.61>7 It #"i* t!e re"-t= t"2es on t!e #ro#ert= st"rtin.111.Re*e. re#resente* A= E&.6157 In " -etter *"te* J"n&"r= 06.#tion "n* AAso-&te S"-e in 4!i5! Pioneer. Moni5" ..e* A= St".61?7 P"rt o3 t!e ". to P1.! E&. t!e rent"-s 3ro. t!e -o"n o3 JMA ". Moni5". in5-&*in.ree* &#on Aet4een JMA "n* St".11 "s #&r5!"se #ri5e 4"s "5@no4-e*. Moni5" . AGCOR 4o&-* Ae 5o--e5tin.itte* P0.e on EeAr&"r= 16.5H " .o&nt 4"s &se* A= St".611. = 4"= o3 " 5o. insistin.s 4it! t!e @no4-e*.G6017 Ho4e%er. tr"ns3erre* to JMA "-. in5-&*in.111. &nti.11..6007 Trini*"* 3"i-e* to ret&rn t!e 5"s! ".i%in. St". t!e ten"nts o3 t!e A&i-*in.11.o&nt is 3&--= #"i* "n*Ior t!e o#tion is 3in"--= e2er5ise*.interests.&5! .111. Moni5" to re*ee. 4it! " F.

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->