Rule 67 Cases

CITY OF MANILA vs. SERRANO

FACTS:
The City Council o Manila enacte!
O"!inance No. 7#$$ autho"i%in& the
e'("o("iation o ce"tain ("o(e"ties in
Manila)s Fi"st *ist"ict in Ton!o. One o the
("o(e"ties sou&ht to +e e'("o("iate! ,as
that su((ose!ly o,ne! +y "es(on!ents.
-etitione" City o Manila .le! an a/en!e!
co/(laint o" e'("o("iation0 !oc1ete! as
Civil Case No. 234755#50 ,ith the RTC o
Manila0 a&ainst the su((ose! o,ne"s o the
lots0 ,hich inclu!e! he"ein "es(on!ents
Osca"0 Felicitas0 6ose0 7en8a/in0 Estelita0
Leono"a0 A!elai!a0 all su"na/e! Se""ano.
Res(on!ents .le! a consoli!ate! ans,e"0
in ,hich they alle&e! that thei" /othe"0 the
late *e/et"ia *e 9uia0 ha! ac:ui"e! Lot ;4
C "o/ Lee <ian =ui> that they ha! +een
the +ona .!e occu(ants o the sai! (a"cel
o lan! o" /o"e than 3? yea"s> that the
e'("o("iation o Lot ;4C ,oul! "esult in
thei" !islocation0 it +ein& the only
"esi!ential lan! let to the/ +y thei"
!ecease! /othe"> an! that the sai! lot ,as
e'e/(t "o/ e'("o("iation +ecause
!ivi!in& the sai! (a"cel o lan! a/on&
the/ ,oul! entitle each o the/ to only
a+out @? s:ua"e /ete"s o lan!.
Res(on!ents0 the"eo"e0 ("aye! that
8u!&/ent +e "en!e"e! !ecla"in& Lot ;4C
e'e/(t "o/ e'("o("iation an! o"!e"in&
the cancellation o the notice annotate! on
the +ac1 o TCT No. 556?3#0 "e&a"!in& the
(en!ency o Civil Case No. 234755#5 o"
e/inent !o/ain .le! +y (etitione".
A(on /otion +y (etitione"0 the t"ial cou"t
issue! an o"!e"0 !ate! Octo+e" 20 ;22#0
!i"ectin& (etitione" to !e(osit the a/ount
o -;0#5@053;.?? e:uivalent to the
assesse!
value o the ("o(e"ties. Ate" (etitione" ha!
/a!e the !e(osit0 the t"ial cou"t issue!
anothe" o"!e"0 !ate! *ece/+e" ;@0 ;22#0
!i"ectin& the issuance o a ,"it o
(ossession in avo" o (etitione".
Res(on!ents .le! a (etition o" ce"tio"a"i
,ith the Cou"t o A((eals0 alle&in& that the
e'("o("iation o Lot ;4C ,oul! "en!e"
"es(on!ents0 ,ho a"e actual occu(ants
the"eo0
lan!less> that Lot ;4C is e'e/(t "o/
e'("o("iation +ecause R.A. No. 7572
("ovi!es
that ("o(e"ties consistin& o "esi!ential
lan!s not e'cee!in& $?? s:ua"e /ete"s in
hi&hly
u"+ani%e! cities a"e e'e/(t "o/
e'("o("iation> that "es(on!ents ,oul! only
"eceive
a"oun! 32 s:ua"e /ete"s each ate" the
(a"tition o Lot ;4C ,hich consists o only
$3$.;? s:ua"e /ete"s> an! that R.A. No.
7572 ,as not /eant to !e("ive an o,ne" o
the
enti"e "esi!ential lan! +ut only that in
e'cess o $?? s:ua"e /ete"s.

On Nove/+e" ;60 ;2220 the Cou"t o
A((eals "en!e"e! a !ecision hol!in& that
Lot ;4C
is not e'e/(t "o/ e'("o("iation +ecause it
un!enia+ly e'cee!s $?? s:ua"e /ete"s
,hich is no lon&e" consi!e"e! a s/all
("o(e"ty ,ithin the "a/e,o"1 o R.A. No.
7572. =o,eve"0 it hel! that in acco"!ance
,ith the "ulin& in Filst"ea/ Inte"national
Inc.
v. Cou"t o A((eals0 the othe" /o!es o
ac:uisition o lan!s enu/e"ate! in BB24;?
o the la, /ust ."st +e t"ie! +y the city
&ove"n/ent +eo"e it can "eso"t to
e'("o("iation. As (etitione" aile! to sho,
that it ha! !one so0 the Cou"t o A((eals
&ave 8u!&/ent o" "es(on!ents an!
en8oine! (etitione" "o/ e'("o("iatin& Lot
;4C.
ISSAE:
CON the CA e""e! in conclu!in& that the
O"!e" o the RTC ,hich autho"i%es the
i//e!iate ent"y o the City as the
e'("o("iatin& a&ency into the ("o(e"ty
sou&ht to +e
e'("o("iate! u(on the !e(osit the"eo as
tanta/ount to con!e/nation o the
("o(e"ty.
RALIN9:
YES. Rule 670 B5 ("ovi!es: A(on the .lin& o
the co/(laint o" at any ti/e the"eate" an!
ate" !ue notice to the !een!ant0 the
(laintiD shall have the "i&ht to ta1e o" ente"
u(on the (ossession o the "eal ("o(e"ty
involve! i he !e(osits ,ith the autho"i%e!
&ove"n/ent !e(osita"y an a/ount
e:uivalent to the assesse! value o the
("o(e"ty o" (u"(oses o ta'ation to +e hel!
+y such +an1 su+8ect to the o"!e"s o the
cou"t.
Ate" such !e(osit is /a!e the cou"t shall
o"!e" the she"iD o" othe" ("o(e" oEce" to
o"th,ith (lace the (laintiD in (ossession o
the ("o(e"ty involve! an! ("o/(tly su+/it
a "e(o"t the"eo to the cou"t ,ith se"vice o
1
co(ies to the (a"ties. Thus0 a ,"it o
e'ecution /ay +e issue! +y a cou"t u(on
the .lin& +y the &ove"n/ent o
a co/(laint o" e'("o("iation suEcient in
o"/ an! su+stance an! u(on !e(osit
/a!e
+y the &ove"n/ent o the a/ount
e:uivalent to the assesse! value o the
("o(e"ty su+8ect to e'("o("iation. A(on
co/(liance ,ith these "e:ui"e/ents0 the
issuance o the ,"it o
(ossession +eco/es /iniste"ial. In this
case0 these "e:ui"e/ents ,e"e satis.e!
an!0 the"eo"e0 it +eca/e the /iniste"ial
!uty o the t"ial cou"t to issue the ,"it o
(ossession.
The Cou"t o A((eals0 ho,eve"0 "ule! that
(etitione" aile! to co/(ly ,ith the
"e:ui"e/ents lai! !o,n in BB24;? o R.A.
No. 7572 an! "eite"ate! in the Filst"ea/
"ulin&. This is e""o". The "ulin& in Filst"ea/
,as necessitate! +ecause an o"!e" o
con!e/nation ha! al"ea!y +een issue! +y
the t"ial cou"t in that case. Thus0 the
8u!&/ent
in that case ha! al"ea!y +eco/e .nal. In
this case0 the t"ial cou"t has not &one
+eyon!
the issuance o a ,"it o (ossession.
=ea"in& is still to +e hel! to !ete"/ine
,hethe" o"
not (etitione" in!ee! co/(lie! ,ith the
"e:ui"e/ents ("ovi!e! in R.A. No. 7572. It
is0
the"eo"e0 ("e/atu"e at this sta&e o the
("ocee!in&s to .n! that (etitione" "eso"te!
to
e'("o("iation ,ithout ."st t"yin& the othe"
/o!es o ac:uisition enu/e"ate! in B;? o
the la,. E'("o("iation ("ocee!in&s consists
o t,o sta&es: ."st0 con!e/nation
o the ("o(e"ty ate" it is !ete"/ine! that
its ac:uisition ,ill +e o" a (u+lic (u"(ose
o"
(u+lic use an!0 secon!0 the !ete"/ination
o 8ust co/(ensation to +e (ai! o" the
ta1in&
o ("ivate ("o(e"ty to +e /a!e +y the cou"t
,ith the assistance o not /o"e than th"ee
co//issione"s.
NATIONAL -OCER COR-ORATION0
(etitione"0 vs. COART OF A--EALS an!
ANTONINO -O7RE0 "es(on!ents.
FACTS
Antonio -o+"e o,ns 6#0262 s:ua"e4/ete"
lan! FG-"o(e"tyGH locate! in 7a"an&ay 7ano0
Munici(ality o Ti,i0 Al+ay ,hich he
!evelo(e! into a "eso"t4su+!ivision0 Ti,i
=ot S("in& Reso"ts Su+!ivision. Chen the
Co//ission on Iolcanolo&y ce"ti.e! that
the"/al /ine"al ,ate" an! stea/0 ,hich
,e"e suita+le o" !o/estic use an!
(otentially o" co//e"cial o" in!ust"ial use0
,e"e ("esent +eneath the -"o(e"ty0
National -o,e" Co"(o"ation FNA-OCORH0
+e&an initiatin& t,o e'("o("iation
co/(laints on the sai! -"o(e"ty. The ."st
e'("o("iation co/(laint ,as &"ante! +y the
cou"t. *u"in& its (en!ency ho,eve"0 N-C
+e&an !"illin& o(e"ations an! const"uction
o stea/ ,ells. Sai! ("oce!u"es ("o!uce!
,aste /ate"ials ,hich N-C !u/(e!
+eyon! the site a&"ee! u(on +y N-C ,ith
-o+"e. The !u/(in& o ,aste /ate"ials
alte"e! the to(o&"a(hy o so/e (o"tions o
the -"o(e"ty. N-C !i! not act on -o+"eJs
co/(laints an! N-C continue! ,ith its
!u/(in&.
In the /eanti/e0 the secon! a(("o("iation
("ocee!in&s ,as .le! +y N-C to ac:ui"e an
a!!itional @0@@3 s:ua"e /ete"s o the
-"o(e"ty. *istu"+e! +y ,hat N-C !i! ,ith
his ("o(e"y0 -o+"e .le! a co/(laint o"
!a/a&es. Su"("isin&ly0 Na(oco" ,ith!"e,
its co/(laint o" e'("o("iation +y .lin& a
/otion to !is/iss0 .ve yea"s ate" .lin& the
secon! e'("o("iation co/(laint0 on the
&"oun! that N-C ha! oun! an alte"native
site an! that N-C ha! al"ea!y a+an!one!
in ;2#; the ("o8ect ,ithin the -"o(e"ty !ue
to -o+"eJs o((osition.
The t"ial cou"t &"ante! N-C)s /otion
!is/iss +ut allo,e! -o+"e to ("ocee! ,ith
his co/(laint o" !a/a&es. *es(ite the
o((osition o N-C0 the t"ial cou"t "ule! in
avo" o -o+"e an! o"!e"e! N-C to (ay
-$033#03@?.?? as !a/a&es. On a((eal0 the
CA aE"/e! the assaile! !ecision. =ence
the ("esent a((eal.
N-C a"&ue! that the co/(laint o"
!a/a&es .le! +y -o+"e shoul! +e
!is/isse! +ecause o the !is/issal o the
secon! e'("o("iation ("ocee!in&s.
ISSAE:
CON the /otion to !is/iss .le! +y
Na(oco" in o"!e" to ,ith!"a, its co/(laint
o" e'("o("iation has "en!e"e! the
co/(laint o" !a/a&es .le! a&ainst it +y
-o+"e0 nu&ato"y.
=EL*:
NO.
In e'("o("iation cases0 the"e is no such
thin& as the (laintiDJs /atte" o "i&ht to
!is/iss the co/(laint ("ecisely +ecause
the lan!o,ne" /ay have al"ea!y suDe"e!
!a/a&es at the sta"t o the ta1in&. The
(laintiDJs "i&ht in e'("o("iation cases to
!is/iss the co/(laint has al,ays +een
2
su+8ect to cou"t a(("oval an! to ce"tain
con!itions. The e'ce(tional "i&ht that
Section ;0 Rule ;7 o the ;263 Rules o
Cou"t cone""e! on the (laintiD /ust +e
un!e"stoo! to have a((lie! only to othe"
civil actions. The ;227 Rules o Civil
-"oce!u"e a+"o&ate! this e'ce(tional "i&ht.
The (o,e" o e/inent !o/ain is su+8ect to
li/itations. A lan!o,ne" cannot +e
!e("ive! o his "i&ht ove" his lan! until
e'("o("iation ("ocee!in&s a"e institute! in
cou"t.$? The cou"t /ust then see to it that
the ta1in& is o" (u+lic use0 the"e is
(ay/ent o 8ust co/(ensation an! the"e is
!ue ("ocess o la,.
I the ("o("iety o the ta1in& o ("ivate
("o(e"ty th"ou&h e/inent !o/ain is
su+8ect to 8u!icial sc"utiny0 the !is/issal o
the co/(laint /ust also (ass 8u!icial
in:ui"y +ecause ("ivate "i&hts /ay have
suDe"e! in the /eanti/e. The !is/issal0
,ith!"a,al o" a+an!on/ent o the
e'("o("iation case cannot +e /a!e
a"+it"a"ily. I it a((ea"s to the cou"t that the
e'("o("iation is not o" so/e (u+lic use0
then it +eco/es the !uty o the cou"t to
!is/iss the action.$$ =o,eve"0 ,hen the
!een!ant clai/s that his lan! suDe"e!
!a/a&e +ecause o the e'("o("iation0 the
!is/issal o the action shoul! not o"eclose
the !een!antJs "i&ht to have his !a/a&es
asce"taine! eithe" in the sa/e case o" in a
se(a"ate action.
Thus0 N-CJs theo"y that the !is/issal o its
co/(laint ca""ie! ,ith it the !is/issal o
-o+"eJs clai/ o" !a/a&es is +aseless.
The"e is nothin& in Rule 67 o the ;263
Rules o Cou"t that ("ovi!e! o" the
!is/issal o the !een!antJs clai/ o"
!a/a&es0 u(on the !is/issal o the
e'("o("iation case. Case la, hol!s that in
the event o !is/issal o the e'("o("iation
case0 the clai/ o" !a/a&es /ay +e /a!e
eithe" in a se(a"ate o" in the sa/e action0
o" all !a/a&es occasione! +y the
institution o the e'("o("iation case. The
!is/issal o the co/(laint can +e /a!e
un!e" ce"tain con!itions0 such as the
"ese"vation o the !een!antJs "i&ht to
"ecove" !a/a&es eithe" in the sa/e o" in
anothe" action. The t"ial cou"t in this case
"ese"ve! -o+"eJs "i&ht to ("ove his clai/ in
the sa/e case0 a "ese"vation that has
+eco/e .nal !ue to N-CJs o,n ault.
Ce /ust co""ect N-CJs clai/ that it .le!
the notice o !is/issal 8ust Gsho"tlyG ate" it
ha! .le! the co/(laint o" e'("o("iation.
Chile N-C ha! inti/ate! seve"al ti/es to
the t"ial cou"t its !esi"e to !is/iss the
e'("o("iation case it .le! on @ Se(te/+e"
;2720 it ,as only on 5 6anua"y ;2#@ that
N-C .le! its notice o !is/issal. It too1 N-C
/o"e than .ve yea"s to actually .le the
notice o !is/issal. Five yea"s is !e.nitely
not a sho"t (e"io! o ti/e. N-C o+viously
!illy4!allie! in .lin& its notice o !is/issal
,hile N-C /ean,hile +u"!ene! -o+"eJs
("o(e"ty "i&hts.
Asia)s E/e"&in& *"a&on Co"(. vs. *OTC
F 9.R. No. ;622;3H
DOTC vs. C.A. and SalacnibBaternia (G.R.
No. 174166)
!"ro"riation
Facts: This is a consoli!ate! case0 +ut in
vie, o the to(ic o e'("o("iation ,e ocus
/o"e in the case o *OTC vs.
Salacni+7ate"nia.
In o"!e" to +ette" a(("eciate the case
,e /ust ."st !iscuss the acts an! "ulin&s
in the case oA#an an!Gin#o$on.
In ;22@ Asia)s E/e"&in& *"a&on FAE*C
H0F co/(ose! o the 6 /ost inKuential
+usiness/an in the -hili((ines /ainly 6ohn
9o1on&,ei0 Lucio Tan0 =en"y Sy0 An!"e,
9otianun0 9eo"&e Ty an! Alonso
Yuchen&co.0H L su+/itte! an unsolicite!
("o(osal to the 9ove"n/ent th"ou&h the
*OTC o" the !evelo(/ent o NAIA III un!e"
a +uil!4o(e"ate4an! t"anse"4a""an&e/ent
(u"suant to RA 62@7 as a/en!e! +y RA
77;#. Che"eo"e the ("o(osal ,as in!ee!
a(("ove! +y the 9ove"n/ent.
7i!!in&s ,e"e hel!0 in ,hich in the
en! the -"o8ect ,as a,a"!e! to -IATCO.
O+8ections ,e"e "aise! +y AE*C +ut in the
en! the 9ove"n/ent 8usti.e! the a,a"! to
-IATCO /ainly +ecause AE*C ,as not a+le
to /atch the +i! o -IATCO.
In 5??5 the 7uil!4o(e"ate4an!
t"anse"4a""an&e/ent F7OTH +et,een the
9Ovt. an! -IATCO ,as :uestione! in the
case o A&an. Che"eo"e the cou"t "ule!
a/on& othe"s that0 in vie, o ano/alies in
a,a"!in& -IATCO the 7OT 0 the cont"actM
a,a"! F7OTH ,as !ecla"e! null an! voi!.
%o&ever t'e co(rt r(led t'at it &as not
(n)ind*(l o* t'e realit$ t'at t'e str(ct(res
co)"risin# t'e NA+A +++ *acilit$ are al)ost
co)"lete and t'at t'e *(nds 'ave been
s"ent b$ ,+ATCO in t'eir constr(ction. -or
t'e Govern)ent to ta.e over said *acilit$/ it
'as to co)"ensate res"ondent ,+ATCO as
b(ilder o* t'e said str(ct(res. T'e
co)"ensation )(st be 0(st and accordance
&it' la& and e1(it$ *or t'e #overn)ent
can not (n0(stl$ enric'ed itsel* at t'e
e!"ense o* ,+ATCO and its investors.
The a+ove/entione! ("onounce/ent
o the Cou"t in A&an &ave "ise to the
(etition in the 9In&oyan case. The acts o
3
,hich a"e as ollo,s .Ate" the
("o/ul&ation o the "ulin& in A&an case0
NAIA III ,as still in the (ossession o
-IATCO0 !es(ite the avo,e! intent o the
9ove"n/ent to (ut the ai"(o"t te"/inal into
i//e!iate o(e"ation. Che"e+y the 9ovt.
an! -IATCO ente"e! into seve"al "oun!s o
ne&otiation an! even a((ea"e! +eo"e
a"+it"al ("ocee!in&s +eo"e Inte"national
Cha/+e" o Co//e"ce Inte"national Cou"t
o A"+it"ation.
Then on0 *ec. 5;0 5??3 the 9ovt .le!
a co/(laint o" e'("o("iation ,ith the
-asay RTC. The 9ovt see1s the issuance o
a ,"it o (ossession autho"i%in& i//e!iate
(ossession o NAIA III0 it also !ecla"e! that
it ha! !e(osite! the a/ount o $ 7illion in
cash ,ith the Lan! 7an10 "e("esentin& the
NAIA $ te"/inal assesse! value o" ta'
(u"(oses. The RTC th"ou&h 6u!&e
9in&oyonissue! in the sa/e !ay the C"it o
-ossession ("aye! o" +y the 9ove"n/ent
citin& the case o 2anila vs. Serrano t'at
t'e RTC 'ad t'e )inisterial d(t$ to iss(e
t'e &rit o* "ossession ("on 3lin# o* a
co)"laint *or e!"ro"riation s(4cient in
*or) and s(bstance/ and ("on de"osit
)ade b$ t'e Govern)ent o* t'e a)o(nt
e1(ivalent to assessed val(e o* t'e
"ro"ert$ s(b0ect *or e!"ro"riation.
=o,eve"0 on 6an 3. 5??@0 the RTC
issue! anothe" o"!e" L t'e assailed order in
t'is case o* Gin#o$on5 to su((le/ent its
ea"lie" o"!e" !ate! *ec. 5;0 5??3. The RTC
note! that the ."st o"!e" ,as issue!
(u"suant to Sec. 50 Rule 67 o the Rules o
Cou"t. %o&ever/ it &as observed t'at
R.A.6774/ 'ad a)ended R(le 67 in )an$
res"ects. T'at t'ere are at least t&o cr(cial
di8erences bet&een t'e res"ective
"roced(res (nder RA 6774 and R(le 67.
9nder t'e Stat(te t'e Govt. is re1(ired to
)a.e i))ediate "a$)ent to t'e "ro"ert$
o&ner ("on 3lin# o* t'e co)"laint to be
entitled to a &rit o* "ossession/ &'ereas in
R(le 67/ t'e Govt. is re1(ired onl$ to )a.e
an initial de"osit &it' an a(t'ori:ed
#overn)ent de"ositar$. 2oreover R(le 67
"rescribes t'at t'e initial de"osit be
e1(ivalent to t'e assessed val(e o* t'e
"ro"ert$ *or "(r"oses o* Ta!/ (nli.e in RA
6774 &'ic' "rovides/ as t'e relevant
standard *or initial co)"ensation/ t'e
)ar.et val(e o* t'e "ro"ert$ as stated in
t'e ta! declarations or t'e c(rrent relevant
:onal val(ation o* t'e B+R/ &'ic'ever is
'i#'er/ and t'e val(e o* t'e i)"rove)ents
and;or str(ct(re (sin# t'e re"lace)ent
cost )et'od.
The 9ovt. in this case o 9iN&oyon
:uestione! the a+ove "ulin&.
The Su("e/e Cou"t hel! the vali!ity o
the RTC)s "ulin&. It hel! a/on& othe"s that
1. RA 6747 a""lies in t'is case/ "artic(larl$
inso*ar as it re1(ires t'e i))ediate
"a$)ent b$ t'e Govt. o* at least t'e
"ro*erred val(e o* t'e NA+A +++ *acilities to
,+ATCO and "rovides certain val(ation
standard )et'od *or t'e deter)ination o*
0(st co)"ensation. <. T'at in a""l$in# RA
6774/ t'e i)"le)entation o* =rit o*
,ossession in *avo(r o* t'e Govt over NA+A
is 'eld in abe$ance (ntil ,+ATCO is directl$
"aid t'e a)o(nt o* > Billion "esos/
re"resentin# t'e "ro*erred val(e o* NA+A +++
>. T'e Govt. s'all "a$ t'e 0(st
co)"ensation 3!ed in t'e decision o* t'e
trial co(rt to ,+ATCO i))ediatel$ ("on t'e
3nalit$ o* said decision.
Finally ,e tac1le the acts o the
case o Re(u+lic vs. CA an! 7ate"ina.
Con&"ess/an 7ate"ina0 to&ethe" ,ith othe"
/e/+e" o the Lo,e" =ouse .le! a (etition
o" -"ohi+ition in Inte"vention ,ith
a((lication o" TRO. 7ate"ina0 et. al
+elieves that the 9ovt. nee! not .le
e'("o("iation ("ocee!in&s to &ain
(ossession i NAIA $ an! that -IATCO is not
entitle! to 8ust co/(ensation0 a"&uin& that
-IATCO !oes not o,n NAIA $ +ecause 7OT
cont"act !o not vest o,ne"shi(. That the
lan! in ,hich NAIA $ is situate! is o,ne!
+y the 9ove"n/ent.
Issue:+n essence/ Baterina is o""osin# t'e
e!"ro"riation "roceedin#s on t'e #ro(nd
t'at NA+A > is alread$ a "(blic "ro"ert$.
%ence ,+ATCO is not entitled to 0(st
co)"ensation *or NA+A >.
%?D@ -IATCO is entitle! to 8ust
co/(ensation an! that the e'("o("iation
("ocee!in&s co//ence! +y the
9ove"n/ent ,as ("o(e" an! vali!.. The
9ove"n/ent has chosen to "eso"t to
e'("o("iation0 a "e/e!y availa+le un!e"
the la,0 ,hich has the a!!e! +ene.t o an
inte&"ate! ("ocess o" the !ete"/ination o
8ust co/(ensation an! the (ay/ent
the"eo to -IATCO. Ce a(("eciate that the
case at +a" is a hi&hly unusual case0
,he"e+y the 9ove"n/ent see1s to
e'("o("iate! a +uil!in& co/(le'
const"ucte! on lan! ,hich the State
al"ea!y o,ns.
T'e ri#'t o* e)inent do)ain e!tends
to "ersonal "ro"ert$ and real "ro"ert$/ and
t'e NA+A > str(ct(res/ ad'ered as t'e$ are
to t'e soil/ are considered real "ro"ert$.
T'e "(blic "(r"ose *or t'e e!"ro"riation is
also be$ond dis"(te. +t s'o(ld also be
noted t'at Section 1 o* R(le 67 reco#ni:es
t'e "ossibilit$ t'at t'e "ro"ert$ so(#'t to
4
be e!"ro"riated )a$ be titled in t'e na)e
o* t'e Re"(blic o* t'e ,'ili""ines/ alt'o(#'
occ("ied b$ "rivate individ(als/ and in
s(c' case an aver)ent to t'at e8ect
s'o(ld be )ade in t'e co)"laint. T'e
instant e!"ro"riation co)"laint did aver
t'at t'e NA+A > co)"le! Astands on a
"arcel o* land o&ned b$ t'e Bases
Conversion Develo")ent A(t'orit$/
anot'er a#enc$ o* t'e Re"(blicB.
Ad)ittedl$/ e)inent do)ain is not t'e sole
0(dicial reco(rse b$ &'ic' t'e #overn)ent
)a$ 'ave ac1(ired t'e NA+A > *acilities
&'ile satis*$in# t'e re1(isites in t'e order
'eld b$ t'e SC in t'e Case o* A#an.
)inent Do)ain t'o(#' )a$ be t'e )ost
e8ective/ as &ell as t'e s"eediest )eans
b$ &'ic' s(c' #oals )a$ be acco)"lis'ed.
Not onl$ does it enable i))ediate
"ossession a*ter satis*action o* t'e
re1(isites (nder t'e la&/ it also 'as a b(ilt5
in "roced(re t'ro(#' &'ic' 0(st
co)"ensation )a$ be ascertained. T'(s/
t'ere s'o(ld be no 1(estion as to t'e
"ro"riet$ o* e)inent do)ain "roceedin#s
in t'is case.
Rule 6# Cases
Anion+an1 v. CA
Facts: A "eal estate /o"t&a&e ,as e'ecute!
+y S(ouses Leo(ol!o an! 6essica *a"io in
avo" o Anion+an10 as secu"ity o" a loan.
Fo" non4(ay/ent o the ("inci(al
o+li&ation0 Anion+an1 e't"a8u!icially
o"eclose! the ("o(e"ty /o"t&a&e! an!
sol! the sa/e at (u+lic auction0 ,ith itsel
(ostin& the hi&hest +i!.
One ,ee1 +eo"e the one4yea" "e!e/(tion
(e"io! e'(i"e!0 ("ivate "es(on!ents
Reynal!o an! Fe"/ina *a"io .le! a
co/(laint a&ainst Anion+an1 o"
annul/ent o sale an! "eal estate
/o"t&a&e "econveyance. =o,eve"0 the
co/(laint ,as !is/isse! +ecause o
("oce!u"al e""o" in .lin& the co/(laint.
Chile the"e is a (en!in& /otion o"
"econsi!e"ation an! ,ithout ino"/in& the
("ivate "es(on!ents0 Anion+an1
consoli!ate! its title ove" the o"eclose!
("o(e"ty.
-"ivate "es(on!ents /aintain that
Anion+an1 Js consoli!ation o the title in its
na/e ,as in +a! aith0 thus voi! a+ initio.
-etitione" clai/e! that it ,as a /o"t&a&ee
in &oo! aith an! o" value ,ith a "i&ht to
consoli!ate o,ne"shi( ove" the o"eclose!
("o(e"ty ,ith the "e!e/(tion (e"io! havin&
e'(i"e! an! the"e havin& +een no
"e!e/(tione"s.
Issue: Chethe" the consoli!ation o title in
Anion+an1 Js na/e ("o(e".
=el!: Anion+an1 Js consoli!ation o title
ove" the ("o(e"ty ,as ("o(e"0 thou&h
("eci(itate. In "eal estate /o"t&a&e0 ,hen
the ("inci(al o+li&ation is not (ai! ,hen
!ue0 the /o"t&a&ee has the "i&ht to
o"eclose the /o"t&a&e an! to have the
("o(e"ty sei%e! an! sol! ,ith a vie, to
a((lyin& the ("ocee!s to the (ay/ent o
the ("inci(al o+li&ation. Fo"eclosu"e /ay +e
eDecte! eithe" 8u!icially o" e't"a8u!icially.
In a (u+lic +i!!in& !u"in& e't"a48u!icial
o"eclosu"e0 the c"e!ito" N/o"t&a&ee0
t"ustee0 o" othe" (e"son autho"i%e! to act
o" the c"e!ito" /ay (a"tici(ate an!
(u"chase the /o"t&a&e! ("o(e"ty as any
othe" +i!!e". The"eate" the /o"t&a&o" has
one yea" ,ithin ,hich to "e!ee/ the
("o(e"ty "o/ an! ate" "e&ist"ation o sale
,ith the Re&iste" o *ee!s. In case o non4
"e!e/(tion0 the (u"chase" at o"eclosu"e
sale shall .le ,ith the Re&iste" o *ee!s0
eithe" a .nal !ee! o sale e'ecute! +y the
(e"son autho"i%e! +y vi"tue o the (o,e" o
atto"ney e/+o!ie! in the !ee! o"
/o"t&a&e0 o" his s,o"n state/ent attestin&
to the act o non4"e!e/(tion> ,he"eu(on0
the Re&iste" o *ee!s Shall issue a ne,
ce"ti.cate o title in avo" o the (u"chase"
ate" the o,ne"Js !u(licate o the
ce"ti.cate has +een ("eviously !elive"e!
an! cancele!. Thus0 u(on ailu"e to "e!ee/
o"eclose! "ealty0 consoli!ation o title
+eco/es a /atte" o "i&ht on the (a"t o
the auction +uye"0 an! the issuance o a
ce"ti.cate o title in avo" o the (u"chase"
+eco/es /iniste"ial u(on the Re&iste" o
*ee!s.
A"!iente v. -"ovincial She"iD> F3$6 SCRA
6@@H
Facts: To secu"e the (ay/ent o the loan0
the A"!ientes e'ecute! in avo" o the
-eninsula *evelo(/ent 7an1 a Real Estate
Mo"t&a&e. Chen they aile! to settle thei"
o+li&ation0 the +an1 e't"a48u!icially
5
o"eclose! the ("o(e"ty an! sol! in a (u+lic
auction to the +an1 as the hi&hest +i!!e".
Late"0 the A"!ientes ,e"e noti.e! +y the
+an1 that they have one yea" to "e!ee/
the ("o(e"ty.
T,o !ays +eo"e the (e"io! to "e!ee/ the
o"eclose! /o"t&a&e e'(i"e! s(ouses
A"!iente .le! a co/(laint a&ainst the +an10
the ("ovincial She"iD o Oue%on0 an! the
Re&iste" o !ee!s o Oue%on0 o" Annul/ent
o Auction Sale ,ith -"eli/ina"y In8unction
an! *a/a&es0 clai/in& that the "e:uisite
o notiyin& the /o"t&a&o"s o the inten!e!
e't"a48u!icial o"eclosu"e sale ,as not !uly
co/(lie! ,ith.
The t"ial cou"t0 notin& the a+sence o
!ocu/enta"y evi!ence sho,in& st"ict
co/(liance ,ith the statuto"y
"e:ui"e/ents on (u+lication o notice o
e't"a48u!icial o"eclosu"e o /o"t&a&e0
!ecla"e! the e't"a48u!icial o"eclosu"e an!
the sale o the /o"t&a&e! ("o(e"ties null
an! voi!.
=o,eve"0 CA "eve"se! the !ecision o the
t"ial cou"t ate" .n!in& the a"&u/ent o the
!een!ant a((ellants +an10 et al. that the
lac1 o "e:ui"e! notice an! (u+lication o
the e't"a 8u!icial o"eclosu"e o /o"t&a&e
,as not ave""e! in the co/(laint0 hence0
cannot +e the +asis o a!ve"se 8u!&/ent.
CA hel! that the case o Ta)b(ntin# v.
Co(rt o* A""eals/ "elie! u(on +y the t"ial
cou"t0 that the ("esu/(tion o co/(liance
,ith oEcial !uty is "e+utte! +y the ailu"e
to ("esent ("oo o (ostin& an! (u+lication
o the notice o sale0 such /ay +e a((lie!
only ,hen these o/issions a"e alle&e! an!
"aise! +y the (a"ty in the co/(laint.
Issue: Chethe" the e't"a8u!icial o"eclosu"e
sale shoul! +e !ecla"e! null an! voi! o"
ailu"e o the +an1 to ave" in its (etition the
She"iDs Ce"ti.cation o -ostin& an! the
ne,s(a(e" ,he"e the notice ,as (u+lishe!
as ,ell as the (u+lishe")s aE!avits.
=el!: The Cou"t is not (e"sua!e!. Cith
"es(ect to (etitione"s) alle&ations in thei"
Co/(laint0 clea"ly0 they ,e"e :uestionin&
the vali!ity o the e't"a48u!icial o"eclosu"e
o the /o"t&a&e on the +asis o lac1 o
notice to the/ as /o"t&a&o"s.
It is settle! that (e"sonal notice to the
/o"t&a&o" in e't"a48u!icial o"eclosu"e
("ocee!in&s is not necessa"y0 hence0 not a
&"oun! to set asi!e the o"eclosu"e sale.
The issue o lac1 o (u+lication o the
notice o o"eclosu"e o the /o"t&a&e ,as
"aise! only on a((eal. -etitione" !oes not
"e("esent that he !i"ectly attac1e! in his
co/(laint the vali!ity o the o"eclosu"e
+ecause o such lac1 o notice.
-etitione" ("esente! no evi!ence +eo"e
the t"ial cou"t to ("ove the a+sence o
(u+lication o the notice !es(ite the act
that ("ivate "es(on!ents0 in thei" Ans,e"0
s:ua"ely (lea!e! as a !eense the
o"eclosu"e sale an! (etitione")s "ecei(t o
the Gnotice o the sale ,hich ,as (u+lishe!
in a ne,s(a(e" o &ene"al ci"culation.G That
the lac1 o (u+lication o the notice o
o"eclosu"e ,as neve" "aise! in issue +y
(etitione" an! that it is not ,ithin the
issues "a/e! +y the (a"ties in the t"ial
cou"t a"e then too o+vious.
7-I FAMILY SAIIN9S 7AN<0 INC v. S-S.
6ANAARIO ANTONIO IELOSO AN*
NATIII*A* IELOSO
FACTS:S(ouses Ielose o+taine! a loan in
the a/ount o -;.$M "o/ Fa/ily 7an1 an!
T"ust Co/(any secu"e! +y a !ee! o
/o"t&a&e ove" th"ee (a"cels o lan!0 ,ith
i/("ove/ents0 "e&iste"e! in thei" na/es.
They li1e,ise e'ecute! a ("o/isso"y note.
=o,eve"0 they aile! to (ay the install/ent
a/ounts o the loan hence thei" ("o(e"ties
,e"e o"eclose! an! ,as sol! to Fa/ily
7an1 an! T"ust Co/(any as the hi&hest
+i!!e" in the auction sale o"
-507#50@@3.66. Late"0 Fa/ily 7an1 an!
T"ust Co/(any assi&ne! its "i&hts on the
sai! ("o(e"ties in avo" o 7-I Fa/ily 7an10
Inc.
To eDect the t"anse" o title0 the ce"ti.cate
o sale ,as "e&iste"e! in the Re&iste" o
*ee!s o OC. Actin& on the /atte"0
"es(on!ents oDe"e! to "e!ee/ the
("o(e"ties o" -;0#7502$@. This ,as0
ho,eve"0 "e8ecte! +y (etitione".
Res(on!ent the"eate" .le! a co/(laint o"
annul/ent o o"eclosu"e ,ith consi&nation
an! ("aye" o" !a/a&es +eo"e RTC 7"anch
23 o OC ,he"e he ,as allo,e! to !e(osit
,ith sai! cou"t the su/ o -;0@??0???
"e("esentin& the "e!e/(tion ("ice.
In the /eanti/e0 7-I ,as a+le to o+tain
,"it o (ossession "o/ 7"anch 76 o sai!
cou"t. 7ase! on this !ecision0 "es(on!ent
.le! a (etition o" ce"tio"a"i ,ith ("aye" o"
("eli/ina"y in8unction ,ith the CA. The
6
latte" initially &"ante! the ("aye" o"
in8unction +ut late" on lite! sai! in8unction
,hen it .nally "esolve! the issue o
(ossession in avo" o 7-I.
Res(on!ent ,ent to the Su("e/e Cou"t via
(etition o" "evie, ,hich aE"/e! 7-I)s
"i&ht to (ossess the ("o(e"ties.
-u"suant to the sai! !ecision0 on *ece/+e"
;60 ;2250 u(on /otion o "es(on!ents an!
!es(ite the o((osition o (etitione"0 7"anch
23 o"!e"e! the "elease o -;03??0??? o the
consi&ne! a/ount to "es(on!ents0 ,ith the
+alance o -;??0??? to ta1e the (lace o
the in8unction +on! to ans,e" o" ,hateve"
!a/a&es (etitione" /i&ht suDe" +ecause o
the issuance o the ("eli/ina"y in8unction
F("eviously issue! an! late" lite!H in avo"
o "es(on!ents.
Ate" ;? yea"s0 7"anch 23 .nally !eci!e! in
avo" o the vali!ity o the o"eclosu"e
("ocee!in&s +ut allo,e! the "es(on!ents
to "e!ee/ the ("o(e"ties at -5.;3M. F"o/
this !ecision 7-I a((eale! to the CA ,hich
aE"/e! the t"ial cou"t)s !ecision ,ith
/o!i.cation that the "e!e/(tion ("ice
shoul! +e at -5067#06$2.#?. =ence this
(etition. It ,as the contention o 7-I that
the !ecision o the CA in &"antin&
"es(on!ent)s "i&ht to "e!ee/ at
-5067#06$2.#? ,as in violation o the
ea"lie" "ulin& +y the Su("e/e Cou"t.
ISSAE: CON the s(ouses have co/(lie!
,ith all the "e:ui"e/ents o" "e!e/(tion in
o"!e" to o+tain a avo"a+le "ulin& "o/ the
Cou"t o A((eals.
=EL*: NO. Bona 3de "e!e/(tion
necessa"ily i/(lies a "easona+le an! vali!
ten!e" o the enti"e "e(u"chase ("ice0
othe",ise the "ule on the "e!e/(tion
(e"io! .'e! +y la, can easily +e
ci"cu/vente!. As e'(laine! +y this Cou"t in
Basbas vs. ntena:
' ' ' the e'istence o the "i&ht o
"e!e/(tion o(e"ates to !e("ess
the /a"1et value o the lan! until
the (e"io! e'(i"es0 an! to "en!e"
that (e"io! in!e.nite +y (e"/ittin&
the tenant to .le a suit o"
"e!e/(tion0 ,ith eithe" (a"ty
una+le to o"esee ,hen .nal
8u!&/ent ,ill te"/inate the action0
,oul! "en!e" nu&ato"y the (e"io!
o t,o yea"s .'e! +y the statute o"
/a1in& the "e!e/(tion an!
vi"tually (a"aly%e any eDo"ts o the
lan!o,ne" to "eali%e the value o
his lan!. No +uye" can +e
e'(ecte! to ac:ui"e it ,ithout any
ce"tainty as to the a/ount o"
,hich it /ay +e "e!ee/e!0 so that
he can "ecove" at least his
invest/ent in case o "e!e/(tion.
In the /eanti/e0 the lan!o,ne")s
nee!s an! o+li&ations cannot +e
/et. It is !ou+tul i any such
"esult ,as inten!e! +y the statute0
a+sent clea" ,o"!in& to that eDect.
An! in In Bodion#an vs. Co(rt o*
A""eals0the hi&he" cou"t clea"ly state!
,hat co/(oses the "e!e/(tion ("ice:
In o"!e" to eDect a "e!e/(tion0 the
8u!&/ent !e+to" /ust (ay the
(u"chase" the "e!e/(tion ("ice
co/(ose! o the ollo,in&: F;H the
("ice ,hich the (u"chase" (ai! o"
the ("o(e"ty> F5H inte"est o ;P (e"
/onth on the (u"chase ("ice> F$H
the a/ount o any assess/ents o"
ta'es ,hich the (u"chase" /ay
have (ai! on the ("o(e"ty ate" the
(u"chase> an! F3H inte"est o ;P
(e" /onth on such assess/ents
an! ta'es ' ' '.
In this case0 the oDe" +y "es(on!ents on
6uly 530 ;2#6 to "e!ee/ the o"eclose!
("o(e"ties o" -;0#7502$@ an! the
su+se:uent consi&nation in cou"t o
-;0@??0??? on Au&ust 570 ;2#60 ,hile
/a!e ,ithin the (e"io! o "e!e/(tion0 ,as
ineDective since the a/ount oDe"e! an!
actually consi&ne! not only !i! not inclu!e
the inte"est +ut ,as in act also ,ay +elo,
the -507#50@@3.66 (ai! +y the hi&hest
+i!!e"M(u"chase" o the ("o(e"ties !u"in&
the auction sale.
Fu"the"/o"e0 A"ticle ;6;6 o the Civil Co!e
o the -hili((ines ("ovi!es:
The ven!o" cannot avail hi/sel o
the "i&ht to "e(u"chase ,ithout "etu"nin& to
the ven!ee the ("ice o the sale ' ' '.
It is not !iEcult to un!e"stan! ,hy the
"e!e/(tion ("ice shoul! eithe" +e ully
oDe"e! in le&al ten!e" o" else vali!ly
consi&ne! in cou"t. Only +y such /eans
can the auction ,inne" +e assu"e! that the
oDe" to "e!ee/ is +ein& /a!e in &oo!
aith.
7
Chethe" o" not "es(on!ents ,e"e !ili&ent
in asse"tin& thei" ,illin&ness to (ay is
i""elevant. Re!e/(tion ,ithin the (e"io!
allo,e! +y la, is not a /atte" o intent +ut
a :uestion o (ay/ent o" vali! ten!e" o
the ull "e!e/(tion ("ice ,ithin sai! (e"io!
The la, &"ante! "es(on!ents the "i&ht o
"e!e/(tion. 7ut in so &"antin& that "i&ht0
the la, inten!e! that thei" oDe" to "e!ee/
+e vali! an! eDective0 acco/(anie! +y an
actual ten!e" o the "e!e/(tion ("ice.
Fi'in& a !e.nite te"/ ,ithin ,hich the
("o(e"ty shoul! +e "e!ee/e! is /eant to
avoi! ("olon&e! econo/ic unce"tainty ove"
the o,ne"shi( o the thin& sol!.
The !is(osition o the instant case in the
t"ial cou"t unnecessa"ily !"a&&e! o" al/ost
a !eca!e. No,0 it is on its ;#
th
yea" an!
still "es(on!ents have not ten!e"e! the ull
"e!e/(tion ("ice. No" have they consi&ne!
the ull a/ount0 i only to ("ove thei"
,illin&ness an! a+ility to (ay. This ,oul!
have evi!ence! thei" &oo! aith. Thei" oDe"
,as not a le&al an! eDective e'e"cise o
the "i&ht o "e!e/(tion conte/(late! +y
la,0 hence0 "eusal o the oDe" +y
(etitione" ,as co/(letely 8usti.e!.
Rule 62 Cases
CELESTINO 7ALAS vs. SATARNINO 7ALAS
FACTS: =e"ein (etitione" an! "es(on!ents
a"e the chil!"en o the s(ouses Ruo an!
Se+astiana
7alus. Se+astiana !ie! on Se(te/+e" 60
;27#0 ,hile Ruo !ie! on 6uly 60 ;2#3.
On 6anua"y $0 ;2720 Ruo /o"t&a&e! a
(a"cel o lan!0 ,hich he o,ns0 as secu"ity
o" a loan he o+taine! "o/ the Ru"al 7an1
o Mai&o0 Lanao !el No"te F7an1H. Ruo
aile! to (ay his loan. As a "esult0 the
/o"t&a&e! ("o(e"ty ,as o"eclose!
an! ,as su+se:uently sol! to the 7an1 as
the sole +i!!e" at a (u+lic auction hel! o"
that (u"(ose. On Nove/+e" 5?0 ;2#;0 a
Ce"ti.cate o Sale,as e'ecute! +y the
she"iD in avo" o the 7an1. The ("o(e"ty
,as not "e!ee/e! ,ithin the (e"io!
allo,e! +y la,. Mo"e than t,o yea"s ate"
the auction0 o" on 6anua"y 5@0 ;2#30 the
she"iD e'ecute! a *e.nite *ee! o Sale in
the 7an1)s avo". The"eate"0 a ne, title
,as issue! in the na/e o the 7an1. On
Octo+e" ;?0 ;2#20 he"ein (etitione" an!
"es(on!ents e'ecute! an E't"a8u!icial
Settle/ent o Estate a!8u!icatin& to each
o the/ a s(eci.c one4thi"! (o"tion o the
su+8ect ("o(e"ty an! also containe!
("ovisions ,he"ein the (a"ties a!/itte!
1no,le!&e o the act that thei" athe"
/o"t&a&e! the su+8ect ("o(e"ty to the
7an1 an! that they inten!e! to "e!ee/ the
sa/e at the soonest (ossi+le ti/e.
Th"ee yea"s ate" the e'ecution o the
E't"a8u!icial Settle/ent0 he"ein
"es(on!ents
+ou&ht the su+8ect ("o(e"ty "o/ the 7an1.
Mean,hile0 (etitione" continue! (ossession
o the su+8ect lot. Res(on!ents .le! a
Co/(laint o" Recove"y o -ossession an!
*a/a&es a&ainst (etitione" an! RTC
"en!e"e! a !ecision o"!e"in& the (laintiDs
to e'ecute a *ee! o Sale in avo" o the
!een!ant0 the one4thi"! sha"e o the
("o(e"ty in :uestion0 ("esently (ossesse!
+y hi/. The RTC hel! that the "i&ht o
(etitione" to (u"chase "o/ the
"es(on!ents his sha"e in the !is(ute!
("o(e"ty ,as "eco&ni%e! +y the ("ovisions
o the E't"a8u!icial Settle/ent o Estate0
,hich the (a"ties ha! e'ecute! +eo"e the
"es(on!ents +ou&ht the su+8ect lot "o/
the 7an1. Res(on!ents a((eale! to the CA.
CA "eve"ese! !ecision o RTC.
ISSAE:
CON co4o,ne"shi( +et,een (etitione" an!
"es(on!ents (e"siste! even ate" the lot
,as (u"chase! +y the 7an1 an! even ate"
it ,as eventually +ou&ht +y the
Res(on!ents "o/ the 7an1.
=el!: NO. It +ea"s to e/(hasi%e that the"e
is no !is(ute ,ith "es(ect to the act that
the su+8ect ("o(e"ty ,as e'clusively o,ne!
+y (etitione" an! "es(on!ents) athe"0 Ruo0
at the ti/e that it ,as /o"t&a&e! in ;272.
In the ("esent case0 since Ruo lost
o,ne"shi( o the su+8ect ("o(e"ty !u"in&
his lieti/e0 it only ollo,s that at the ti/e
o his !eath0 the !is(ute! (a"cel o lan! no
lon&e" o"/e! (a"t o his estate to ,hich
his hei"s /ay lay clai/. State! !iDe"ently0
(etitione" an! "es(on!ents neve" inhe"ite!
the su+8ect lot "o/ thei" athe". The"e is
nothin& in the su+8ect E't"a8u!icial
Settle/ent to in!icate any e'("ess
sti(ulation o" (etitione" an! "es(on!ents
to continue ,ith thei" su((ose! co4
o,ne"shi( o the conteste! lot. On the
cont"a"y0 a (lain "ea!in& o the ("ovisions
o the E't"a8u!icial Settle/ent ,oul! not0
in any ,ay0 su((o"t (etitione")s contention
that it ,as his an! his si+lin&)s intention to
+uy the su+8ect ("o(e"ty "o/ the 7an1 an!
continue ,hat they +elieve! to +e co4
o,ne"shi( the"eo. It is a ca"!inal "ule in
8
the inte"("etation o cont"acts that the
intention o the (a"ties shall +e acco"!e!
("i/o"!ial consi!e"ation. The"e is no co4
o,ne"shi( to tal1 a+out an! no ("o(e"ty to
(a"tition0 as the !is(ute! lot neve" o"/e!
(a"t o the estate o thei" !ecease! athe".
Fu"the"/o"e0 (etitione")s contention that
he an! his si+lin&s inten!e! to continue
thei" su((ose! co4o,ne"shi( o the su+8ect
("o(e"ty cont"a!icts the ("ovisions o the
su+8ect E't"a8u!icial Settle/ent ,he"e they
clea"ly /anieste! thei" intention o havin&
the su+8ect ("o(e"ty !ivi!e! o" (a"titione!
+y assi&nin& to each o the (etitione" an!
"es(on!ents a s(eci.c ;M$ (o"tion o the
sa/e. -a"tition calls o" the se&"e&ation
an! conveyance o a !ete"/inate (o"tion
o the ("o(e"ty o,ne! in co//on. It see1s
a seve"ance o the in!ivi!ual inte"ests o
each co4o,ne"0 vestin& in each o the/ a
sole estate in a s(eci.c ("o(e"ty an! &ivin&
each one a "i&ht to en8oy his estate ,ithout
su(e"vision o" inte"e"ence "o/ the othe".
In othe" ,o"!s0 the (u"(ose o (a"tition is
to (ut an en! to co4o,ne"shi(0 an o+8ective
,hich ne&ates (etitione")s clai/s in the
("esent case.
Feliciano vs. Cano%a
Facts: Antonio Feliciano (asse! a,ay an!
let +ehin! a (a"cel o lan!. Leona0 Ma"ia0
-e!"o an! Salina Feliciano !ecla"e!
the/selves to +e Antonio)s only su"vivin&
hei"s. They e'ecute! an e't"a8u!icial
settle/ent o Antonio)s estate to the
e'clusion o the hei"s o Este+an an!
*o"oteo Feliciano0 !ecease! chil!"en o
Antonio. Fu"the"0 they e'ecute! a !ee! o
a+solute sale in avo" o the late 6acinto
Feliciano F-e!"o)s (o"tionH0 Felisa Feliciano
FSalina)s (o"tionH0 an! -e!"o Cano%a FLeona
an! Ma"ia)s (o"tionH.
On Nove/+e" 5#0 ;2770 6acinto ,as
issue! a F"ee -atent o" the (o"tion o lan!
he +ou&ht0 !ecla"in& that the sa/e ,as
(u+lic lan! ,hich ,as ."st occu(ie! an!
cultivate! +y -e!"o Feliciano. On Fe+"ua"y
5$0 ;2720 -e!"o Cano%a ,as issue! an OCT
o" the lan! (u"chase! "o/ Leona an!
Ma"ia Feliciano.
On Octo+e" ;#0 ;22$0 (etitione"s0
,hich a"e the hei"s o the late Este+an
Feliciano FEu&enio Feliciano an! An&elina
Feliciano4*e LeonH an! o the late *o"oteo
Feliciano FT"ini!a! Feliciano4Ialiente an!
7asilia Feliciano4T"ini!a!H .le! a co/(laint
a&ainst Salina0 Felisa0 -e!"o Cano%a0 an!
the hei"s o the late 6acinto Feliciano o" the
*ecla"ation o Nullity o *ocu/ents an!
title0 Recove"y o Real -"o(e"ty an!
*a/a&es +ecause the settle/ent o the
estate an!sale ,e"e !one ,ithout thei"
(a"tici(ation an! consent as hei"s o
Este+an an! *o"oteo. RTC "ule! in avo" o
(etitione"s. On a((eal0 CA "eve"se! RTC)s
!ecision "ulin& that ("esc"i(tion ha! set in
an! that the a((lica+le ("esc"i(tive (e"io!
to annul is ou" yea"s "o/ the !iscove"y o
the "au!. -etitione"s .le! a MR +ut ,as
!enie!.
Issue: CON the CA e""e! ,hen it hel! that
the a((lica+le ("esc"i(tive (e"io! is ou" F3H
yea"sQ
=el!: NO. A !ee! o e't"a8u!icial (a"tition
e'ecute! ,ithout inclu!in& so/e o the
hei"s0 ,ho ha! no 1no,le!&e o an!
consent to the sa/e0 is "au!ulent an!
vicious. An action to set it asi!e on the
&"oun! o "au! coul! +e institute!0
ho,eve"0 such action /ust +e +"ou&ht
,ithin ou" F3H yea"s "o/ the !iscove"y o
the "au!. In this case0 the hei"s o *o"oteo
an! Este+an ,as not a+le to (a"tici(ate in
the e't"a8u!icial (a"tition e'ecute! +y the
othe" hei"s an! such !ee! ,as "au!ulently
o+taine!. Mo"eove"0 the "eco"!s sho, that
(etitione"s) co/(laint ,as .le! only on
Octo+e" ;#0 ;22$0 o" ;6 yea"s ate" 6acinto
Feliciano ,as issue! a F"ee -atent an!
al/ost ;3 yea"s ate" -e!"o Cano%a ,as
issue! an OCT. -etitione"s a"e !ee/e! to
have o+taine! const"uctive notice u(on the
"e&ist"ation o the F"ee -atent.
Man&ahas vs. 7"o+io
Facts: -aci.co 7"o+io !ie! intestate0
leavin& th"ee (a"cels o lan! an! ,as
su"vive! +y his ,ie0 "es(on!ent Eu"ocina
7"o+io0 ou" le&iti/ate chil!"en0 an! th"ee
ille&iti/ate chil!"en. -etitione" Ca"/ela
7"o+io Man&ahas is one the ille&iti/ate
chil!"en. The hei"s o -aci.co Finclu!in&
(etitione"H e'ecute! a *ee! o E't"a8u!icial
Sette/ent ,ith ,aive" ,he"ein they
,aive! thei" "es(ective sha"es ove" the
(a"cels o lan! in avo" o "es(on!ent o" a
consi!e"ation o -;@?0???. Acco"!in& to
(etitione"0 the "es(on!ent ("o/ise! he" an
a!!itional a/ount o" he" athe")s sha"e
+ut ,hen the o"/e" !e/an!e! it0 the
"es(on!ent "euse! to (ay.
A yea" late"0 "es(on!ent 7"o+io ,as
"e:ui"e! +y the 7IR to su+/it an o"i&inal
co(y o the !ee!. Res(on!ent !i! not have
9
an o"i&inal co(y o the !ee!. Chen she
as1e! (etitione" Man&ahas to counte"si&n
a co(y o a !ee!0 she "euse! to si&n
unless she ,as &iven the a!!itional
a/ount that she as1e! o". Late"0 (etitione"
si&ne! the !ee! ate" the "es(on!ent
e'ecute! a ("o/isso"y note a/ountin& to
-6??0???. =o,eve"0 "es(on!ent aile! to
(ay the a/ount !es(ite seve"al !e/an!s.
Thus0 a co/(laint o" s(eci.c (e"o"/ance
,as .le! +y the (etitione". Res(on!ent
ave"s that she ,as o"ce! to si&n the
("o/isso"y note. RTC "ule! in avo" o
(etitione". CA "eve"se! the !ecision o the
RTC. It "ule! that the"e ,as no valua+le
consi!e"ation since (etitione" ha! al"ea!y
("eviously si&ne! the !ee! an! ,as
al"ea!y &iven -;@?0??? an! that the"e ,as
inti/i!ation on the si&nin& o the
("o/isso"y note. Fu"the"0 it hel! that i
(etitione" !isa&"ee! ,ith the a/ount she
"eceive!0 she shoul! have .le! an action
o" (a"tition.
Issue: F;H CON the CA e""e! ,hen it oun!
that the ("o/isso"y note ,as ,ithout
consi!e"ation an! ,as si&ne! ,ith
inti/i!ation.
F5H CON the CA e""e! ,hen it
state! that (etitione" shoul! have .le! an
action o" (a"tition instea! o a case o"
s(eci.c (e"o"/ance.
=el!: F;H YES. The"e ,as no sho,in& that
"es(on!ent ,as !e("ive! o "ee a&ency
,hen she si&ne! the ("o/isso"y note. She
still ha! a choice an! coul! have "euse! to
e'ecute the ("o/isso"y note an! "eso"te!
to 8u!icial /eans. As to the consi!e"ation0
"es(on!ent aile! to ("ove that the
("o/isso"y note ,as not su((o"te! +y any
consi!e"ation. It ,as clea" that the note
,as issue! o" a cause o" consi!e"ation0
,hich is the (etitione")s si&natu"e on the
!ocu/ent.
F5H YES. An action o" (a"tition
i/(lies that the ("o(e"ty is still o,ne! in
co//on. Consi!e"in& that the hei"s ha!
al"ea!y e'ecute! a !ee! o e't"a8u!icial
settle/ent an! ,aive! thei" sha"es in avo"
o" "es(on!ent0 the ("o(e"ties a"e no lon&e"
un!e" a state o co4o,ne"shi(> the"e is
nothin& /o"e to +e (a"titione!0 as
o,ne"shi( ha! al"ea!y +een /e"&e! in one
(e"son.
Rule 7? Cases
SARMIENTA IS MANALITE =OMEOCNERS
ASSO.
9R ;#52@$ Octo+e" ;;0 5?;?
FACTS
Manalite =o/eo,ne"s Association0 Inc.
FMA=AH .le! a case o" unla,ul
!etaine"Mo"ci+le ent"y. It alle&e! that it ,as
the o,ne" o the su+8ect ("o(e"ty an! the
-etitione" AMARA0 th"ou&h o"ce0
inti/i!ation0 st"ate&y an! stealth ente"e!
the ("e/ises an! const"ucte! a +uil!in&.
AMARA even .le! a case o" the annul/ent
o MA=A)s title. Chen AMARA lost the case0
MA=A o"!e"e! the o"/e" to vacate.
AMARA (lea!e! MA=A to &ive the/ one
yea" (e"io! to stay. MA=A acce!e!. Such
(e"io! ,as "e(eate!ly e'ten!e! !ue to the
+enevolence o MA=A. Late" on0 AMARA
("o(ose! that they +eco/e /e/+e"s o
MA=A so they can +e :uali.e! to ac:ui"e
(o"tions o the ("o(e"ty +y sale (u"suant to
the Co//unity Mo"t&a&e -"o&"a/
FCM-H. MA=A a&ain a&"ee! an! tole"ate!
AMARA)S (ossession0 &ivin& the/ until
*ece/+e" ;222 to co/(ly ,ith the
"e:ui"e/ents. AMARA still aile! to co/(ly.
Thus ate" o"/al !e/an! lette"s to vacate
,as i&no"e! +y AMARA0 MA=A .le! the
co/(laint o" R-orcible ntr$;9nla&*(l
Detainer.S The MTCC !is/isse! the case.
RTC "eve"se! the !ecision o MTC. CA
aE"/e! !ecision o RTC. =ence this
("esent (etition.
-etitione"s asse"t that the 8u"is!ictional
"e:ui"e/ent o ("io" (hysical (ossession in
actions o" o"ci+le ent"y ,as not alle&e!
,ith (a"ticula"ity in the co/(laint0 as it
/e"ely alle&e! that "es(on!ent ha! +een
!e("ive! o its (ossession ove" the
("o(e"ty. They also /aintaine! that they
,e"e not ,ithhol!in& (ossession o the
("o(e"ty u(on the e'(i"ation o" te"/ination
o thei" "i&ht to (ossess +ecause they
neve" e'ecute! any cont"act0 e'("ess o"
i/(lie!0 in avo" o the "es(on!ent. =ence0
the"e ,as also no unla,ul !etaine".
ISSAE
Chethe" o" not the alle&ations in the
co/(laint a"e suEcient to /a1e u( a case
o unla,ul !etaine".
=EL*
Yes. In o"ci+le ent"y0 the (laintiD /ust
alle&e in the co/(laint0 an! ("ove0 that he
10
,as in ("io" (hysical (ossession o the
("o(e"ty in !is(ute until he ,as !e("ive!
the"eo +y the !een!ant +y any o the
/eans ("ovi!e! in Section ;0 Rule 7? o
the Rules eithe" +y o"ce0 inti/i!ation0
th"eat0 st"ate&y o" stealth. In unla,ul
!etaine"0 the"e /ust +e an alle&ation in the
co/(laint o ho, the (ossession o
!een!ant sta"te! o" continue!0 that is0 +y
vi"tue o lease o" any cont"act0 an! that
!een!ant hol!s (ossession o the lan! o"
+uil!in& Rate" the e'(i"ation o" te"/ination
o the "i&ht to hol! (ossession +y vi"tue o
any cont"act0 e'("ess o" i/(lie!.S
Evi!ence ("oves that ate" MA=A ac:ui"e!
the ("o(e"ty0 MA=A tole"ate! (etitione"s)
stay an! &ave the/ the o(tion to ac:ui"e
(o"tions o the ("o(e"ty +y +eco/in&
/e/+e"s o MA=A. -etitione"s) continue!
stay on the ("e/ises ,as su+8ect to the
con!ition that they shall co/(ly ,ith the
"e:ui"e/ents o the CM-. Thus0 ,hen they
aile! to ul.ll thei" o+li&ations0 MA=A ha!
the "i&ht to !e/an! o" the/ to vacate the
("o(e"ty as thei" "i&ht o (ossession ha!
al"ea!y e'(i"e! o" ha! +een
te"/inate!. The /o/ent MA=A "e:ui"e!
(etitione"s to leave0 (etitione"s +eca/e
!eo"ciants ille&ally occu(yin& the
lan!. Cell settle! is the "ule that a (e"son
,ho occu(ies the lan! o anothe" at the
latte")s tole"ance o" (e"/ission0 ,ithout
any cont"act +et,een the/0 is necessa"ily
+oun! +y an i/(lie! ("o/ise that he ,ill
vacate u(on !e/an!0 ailin& ,hich0 a
su//a"y action o" e8ect/ent is the ("o(e"
"e/e!y a&ainst hi/. Thus0 the RTC an! the
CA co""ectly "ule! in avo" o MA=A.
As to (etitione"s) a"&u/ent that MA=A)s
title is voi! o" havin& +een secu"e!
"au!ulently0 ,e .n! that such issue ,as
i/("o(e"ly "aise!. In an unla,ul !etaine"
case0 the sole issue o" "esolution is
(hysical o" /ate"ial (ossession o the
("o(e"ty involve!0 in!e(en!ent o any
clai/ o o,ne"shi( +y any o the
(a"ties. Since the only issue involve! is
the (hysical o" /ate"ial (ossession o the
("e/ises0 that is (ossession de *acto an!
not (ossession de 0(re/ the :uestion o
o,ne"shi( /ust +e th"eshe! out in a
se(a"ate action.


CALARA IS. FRANCISCO
T9.R. No. ;@63$2 : Se(te/+e" 520 5?;?U .
Facts
-etitione" Cle/encia Cala"a an! he"
chil!"en o,n the Lo(hcal FCala"aH
Su+!ivision in 7"&y. Anos0 Los 7anos. The
"es(on!ents in this case a"e the +uye"s o
the Cala"a su+!. So/e o the +uye"s o the
su+8ect lot institute! a case o" violation o
-.*. 2@70 a la, that "e&ulates the sale o
su+! lots an! con!o/iniu/s0 +eo"e the
then =u/an Settle/ent Re&ulato"y
Co//ission F=SRCH inco"(o"atin&
&"ievances such as a+sence o a !"aina&e
syste/0 un.nishe! cu"+ an! &utte"0
un!evelo(e! "oa!s an! a+an!one!
elect"ical acilities.
The Cala"as conse:uently .le! suits
a&ainst "es(on!ents F"ancisco s(ouses an!
9au!encio Nava""o ,ith the MTC. On 56
Au&ust ;2#50 "es(on!ents an! 9au!encio
Nava""o .le! a 8oint /otion to !is/iss on
the &"oun! that the Munici(al Cou"t ha! no
8u"is!iction ove" the co/(laints .le!
a&ainst the/ +y (etitione" since anothe"
action ove" the sa/e cause an! the sa/e
(a"ties ,as (en!in& +eo"e the =SRC. MTC
!enie! the sa/e. In the /eanti/e0 the
=SRC "en!e"e! a !ecision "ulin& in avo" o
the +uye"s o"!e"in& the Cala"as a/on&
othe"s to to !evelo( the su+!ivision.
=o,eve" t"ial ensue! in the unla,ul
!etaine" case. MTC "ule! in avo" o the
Cala"as !iscountin& the e'istence o a
cont"act o sale +et,een (etitione"s an!
"es(on!ents an! u(hol!in& its 8u"is!iction
ove" the case an! o"!e"e! the "es(on!ents
+uye"s to vacate the lan!. On a((eal in
RTC0 the latte" aE"/e! in toto the !ecision
o MTC. =o,eve"0 ,hen the case "eache!
the CA0 it "en!e"e! !ecision0 "eve"sin& the
!ecisions o the MTC an! RTC an! o"!e"in&
the !is/issal o (etitione"sJ co/(laint o"
unla,ul !etaine" u(on the conclusion that
,hen a co/(laint o" unla,ul !etaine"
a"ises "o/ the ailu"e o a +uye" on
install/ent +asis o "eal ("o(e"ty to (ay
+ase! on a "i&ht to sto( (ayin& /onthly
a/o"ti%ations un!e" -* 2@70 the
!ete"/inative :uestion is e'clusively
co&ni%a+le +y the =ousin& an! Lan! Ase
Re&ulato"y 7oa"! F=LAR7H. The"eo"e0 the
:uestion o the "i&ht to collect the /onthly
a/o"ti%ation /ust +e !ete"/ine! +y sai!
a&ency.-etitione"s u"&e the "eve"sal o the
assaile! !ecision on the ollo,in& &"oun!s:
ISSAE
11
C=T=ER OR NOT CA ERRE* IN *ECLARIN9
T=AT T=E =OASIN9 AN* LAN* ASE
RE9ALATORY 7OAR* F=LAR7H =AS
EVCLASIIE ORI9INAL 6ARIS*ICTION TO
*ETERMINE C=ET=ER T=ERE IS A
-ERFECTE* CONTRACT TO SELL 7ETCEEN
-ETITIONER CALARA AN* RES-ON*ENTS
FRANCISCO
=EL*
CA co""ectly "ule! that the cause o action
e/+o!ie! in the co/(laint o (etitione"s
not a si/(le cause o action o" unla,ul
!etaine" a&ainst "es(on!ents. -etitione"Js
co/(laint is o" unla,ul !etaine". Chile
&ene"ally s(ea1in& such action alls ,ithin
the o"i&inal an! e'clusive 8u"is!iction o the
MTC0 the !ete"/ination o the &"oun! o"
e8ect/ent "e:ui"es a consi!e"ation o the
"i&hts o a +uye" on install/ent +asis o
"eal ("o(e"ty. In!ee! ("ivate "es(on!ent
clai/s that he has a "i&ht un!e" -.*. No.
2@70 to sto( (ayin& /onthly a/o"ti%ations
ate" &ivin& !ue notice to the o,ne" o"
!evelo(e" o his !ecision to !o so +ecause
o (etitione"Js alle&e! ailu"e to !evelo( the
su+!ivision o" con!o/iniu/ ("o8ect
acco"!in& to the a(("ove! (lans an! ,ithin
the ti/e o" co/(lyin& ,ith the sa/e. The
case thus involves a !ete"/ination o the
"i&hts an! o+li&ations o (a"ties in a sale o
"eal estate un!e" -.*. No. 2@7. The
!ete"/inative :uestion the"eo"e is
e'clusively co&ni%a+le +y the =LAR70 the
:uestion o the "i&ht o (etitione" /ust +e
!ete"/ine! +y the a&ency.
Thus0 (etitione"Js cause o action a&ainst
("ivate "es(on!ent shoul! instea! +e .le!
as a counte"clai/ in =LAR7 Case in
acco"!ance ,ith Rule 6o the Rules o Cou"t
,hich is o su((leto"y a((lication to the
=LAR7 Rules o -"oce!u"e. As the sole
"e&ulato"y +o!y o" housin& an! lan!
!evelo(/ent0

the =LAR7 has 8u"is!iction
ove" (etitione"sJ cause a&ainst "es(on!ents
an! is clea"ly the +est o"u/ o" the
!ete"/ination o all the issues "elevant
the"eto.
N.7.
%o&ever/ t'e )ere relations'i" o* t'e
"arties as a s(bdivision develo"er;o&ner
and s(bdivision lot b($er does not/
concededl$/ vest t'e %?9RB a(to)atic
0(risdiction over a case. +n t'e cases
o* Ro!as vs. Co(rt o* A""eals and -ilar
Develo")ent Cor"oration vs. S"s. Cillar/
t'is Co(rt ("'eld t'e 2TCDs 0(risdiction
over t'e co)"laint *or e0ect)ent
co))enced b$ t'e s(bdivision develo"er
on acco(nt o* t'e b($erDs *ail(re to "a$ t'e
install)ents sti"(lated in t'e "art$Ds
contract to sell. +n said cases/ 'o&ever/
t'e b($ers 'ad no 0(sti3able #ro(nd to
sto" "a$)ent o* t'e sti"(lated
install)ents and;or an$ o* t'e ca(ses o*
action co#ni:able b$ t'e %?9RB (nder
Section 1

o* ,.D. 1>44. +n not a""l$in# t'e
r(lin# in -rancel Realt$ Cor"oration vs.
S$ci"/ )oreover/ t'e Co(rt li.e&ise too.
a""ro"riate note o* t'e *act t'at t'e b($ers
in said cases 'ave not co))enced an
action *or (nso(nd real estate b(sinesses
"ractices a#ainst t'e s(bdivision
develo"ers. %ere/ res"ondents 'ave not
onl$ instit(ted a co)"laint *or violation o*
,.D. 7E7 a#ainst "etitioner Cle)encia
Calara b(t 'ad also alread$ obtained a
de3nitive r(lin# on t'e latterDs *ail(re to
*(ll$ develo" t'e s(bdivision &'ic' t'e$
cited as 0(sti3cation *or not )a.in# *(rt'er
"a$)ents on ?ot No. <> o* t'e ?o"'cal
(Calara) S(bdivision.
2odestos vs. 9rbina
-acts@ ca"los A"+ina .le! a co/(laint o"
"ecove"y o (ossession o a (a"cel o lot
locate! at Ta&ui&. =e alle&e! that Mo!estos
&aine! (ossession o lot th"ou&h stealth0
sche/e0 an! /achinations0 an! !es(ite
!e/an!0 Mo!estos "euse! to vacate the
("e/ises. Ea"lly on0 Mo!estos ne&otiate!
,ith A"+ina o" the sale o the lot0 ho,eve"
it !i! not /ate"iali%e. Late" on0 Mo!estos
clai/e! (ossesso"y "i&ht ove" the lan! +y
vi"tue o Insula" 9ove"n/ent -atent Sales
a((lication (en!in& ,ith the Lan!
Mana&e/ent 7u"eau0 on the othe" han!
A"+ina clai/e! +y vi"tue o Miscellaneous
Sales A((lication also (en!in& ,ith the
Lan! Mana&e/ent 7u"eau.
The RTC "ule! in avo" o A"+ina0 on the
&"oun! that Mo!estos ,e"e esto((e! in
:uestionin& the (ossesso"y "i&ht o A"+ina
+y "eason o the ac1no,le!&e/ent o the
(ossesso"y "i&ht o the late"0 ,hen he
ente"e! into ne&otiate! cont"act o sale
,hich ,as cancelle!. The CA aE"/e! in
toto the !ecision o the RTC. =ence this
(etition o" "evie, on ce"tio"a"i. The
Mo!estos /ainly a"&ue! that at the ti/e
A"+ina .le! his MSA an! ac:ui"e! ta'
!ecla"ation ove" the su+8ect ("o(e"ty0 it
,as still a &ove"n/ent ("o(e"ty0 +ein& (a"t
o Fo"t 7oniacio /ilita"y "ese"vation an!
since thei" oDe" to +uy the ("o(e"ty "o/
A"+ina ,as +ase! on his alse asse"tion0
the ("inci(le o esto((el cannot a((ly.
12
+ss(e@ ,on A"+ina has the +ette"
(ossesso"y "i&ht ove" the su+8ect ("o(e"ty
+y vi"tue o MSA an! ,on Mo!estos ,as
esto((e!Q
%eld@ No. The MSA FMiscellaneous Sale
A((licationH .le! +y the A"+ina is not
a(("o("iate +ecause the su+8ect lot is still a
&ove"n/ent ("o(e"ty0 +ein& (a"t o Fo"t
7oniacio /ilita"y "ese"vation0 hence no
one can clai/ (ossesso"y "i&ht ove" the
sai! lot.
It is only ate" Octo+e" ;60 ;2#7 that the
:uestione! ("o(e"ty has +een !ecla"e!
aliena+le an! !is(osa+le +y vi"tue o
-"esi!ential -"ocla/ation ;75. It is the only
that ti/e ,hen a ("ivate (e"son can le&ally
clai/ (ossesso"y "i&ht ove" it. =ence the
clai/e! (ossession o A"+ina as ea"ly as
6uly 5;0 ;2660 ,hen he .le! his MSA0 is
unla,ul an! coul! not +e the +asis o
(ossesso"y "i&hts. On the cont"a"y0
Mo!estos ,e"e the actual (ossesso" o the
("o(e"ty ,hen it ,as !ecla"e! aliena+le
an! !is(osa+le on Octo+e" ;60 ;2#7 an!
continue! to (ossess the ("o(e"ty until the
("esent ti/e. Fu"the"/o"e Mo!estos have
Insula" 9ove"n/ent -atent Sales
A((lication ove" the ("o(e"ty (en!in& ,ith
the Lan! Mana&e/ent 7u"eau0 ,hich they
.le! on 6anua"y 5??2. In cont"ast A"+ina
has a MSA .le! in ;2660 ,hich the Lan!
Mana&e/ent 7u"eau consi!e"e! invali!
since it ,as .le! ,hen the ("o(e"ty is still
o"/e! (a"t o Fo"t 7oniacio /ilita"y
"ese"vation. Cith "es(ect on the issue on
esto((el0 no esto((el a"ises ,he"e the
con!uct o the (a"ty sou&ht to +e esto((e!
is !ue to i&no"ance u(on an innocent
/ista1e.
Ca"+onilla vs a+ie"a
Facts: !". *iosco"o ca"+onilla .le! a
co/(laint o" e8ect/ent a&ainst /a"celo
a+ie"a an! /a"ic"is a+ie"a (a"e!es ,ith the
/tcc. =e alle&e! that he is the o,ne" o
the lan!0 as evi!ence! +y to""ens
ce"ti.cate o title. =e u"the" clai/e! that
he is the also the o,ne" o the +uil!in&
situate! the"eon an! the "es(on!ents
occu(ation is only +y /e"e tole"ance o the
o"i&inal o,ne". The "es(on!ents !enie! the
alle&ation. They alle&e! that they inhe"ite!
the lan! "o/ theis ("e!ecesso"s an! they
have +een in (ossession o it since ;26?.
The /tcc "ule! that the lan! is o,ne! +y
ca"+onilla0 as evi!ence! +y the to""ens
ce"ti.cate o title. =o,eve" ,ith "e&a"! to
the +uil!in&0 the /tcc "ule! in avo" o the
"es(on!ents0 o" ailu"e o ca"+onilla to
"eute the clai/ o the "es(on!ents.
Ca"+onilla elevate! the case to the "tc. Rtc
aE"/e! the !ecision o the /tcc0 ho,eve"
,ith "es(ect to the +uil!in& "tc "ule! that
the "es(on!ents aile! to ("ove that the
+uil!in& ,as not inclu!e! in the t"anse" in
the na/e o ca"+onilla.
Res(on!ents .le! a (etition o" "evie, ,ith
the c.a. C.a. "eve"se! the !ecision o the
"tc0 it oun! out that the"e ,as no evi!ence
that the "es(on!ents (ossession ,as +y
/e"e tole"ance. Fu"the"0 the action has
al"ea!y ("esc"i+e! since the ; yea" (e"io!
o" .lin& o"ci+le ent"y has al"ea!y la(se!.
Ca"+onilla .le! a (etition o" "evie, on
ce"tio"a"i ,ith the sc.
Issue: ,on the alle&ations in the co/(laint
a"e suEcient to /a1e u( a case o unla,ul
!etaine".
=el!: no0 ,Mout a !ou+t0 the "e&iste"e!
o,ne" o "eal ("o(e"ty is entitle! to its
(ossession. =o,eve"0 the o,ne" cannot
si/(ly ,"est (ossession the"eo "o/
,hoeve" is in actual occu(ation o the
("o(e"ty to "ecove" (ossession0 he /ust
"eso"t to the ("o(e" 8u!icial "e/e!y. In the
("esent case0 ca"+onilla o(te! to .le an
e8ect/ent case 4 o"ci+le ent"y an!
unla,ul !etaine". The only :uestion that
the cou"ts "esolve in e8ect/ent ("ocee!in&
is: ,ho is entitle! to the (hysical
(ossession o the ("o(e"ty. Fo" this "eason0
an e8ect/ent case ,ill not necessa"ily +e
!eci!e! in avo" o one ,ho has ("esente!
("oo o o,ne"shi(.
Ca"+onillaJs alle&ation that "es(on!ents
(ossession ,as +y /e"e tole"ance /a1e
out a case o" unla,ul !etaine". It involves
the (e"sonJs ,ithhol!in& "o/ anothe" o
(ossession o ("o(e"ty to ,hich the latte" is
entitle! ate" the e'(i"ation o the o"/e"Js
"i&ht to hol! (ossession.
A "e:ui"e/ent o" a vali! cause o action in
an unla,ul !etaine" case is that
(ossession /ust +e o"i&inally la,ul0 an!
such (ossession /ust have tu"ne! unla,ul
only u(on e'(i"ation o the "i&ht o
(ossession.
Ca"+onilla aile! to ("ove that "es(on!ents
(ossession ,as +ase! on his alle&e!
13
tole"ance.
=e !i! not oDe" any evi!ence that they
tole"ate! "es(on!ents ent"y to an!
occu(ation o the su+8ect ("o(e"ty. A +a"e
alle&ation o tole"ance ,ill not suEce. =e
/ust0 at least0 sho, ove"t acts in!icative o
his o" his ("e!ecesso"s (e"/ission to
occu(y the su+8ect ("o(e"ty.
La Ca/(ana *ev. Co"(. vs. Le!es/a
Facts: -etitione" .le! an e8ect/ent case
,ith the Met"o(olitan T"ial Cou"t FMeTCH
a&ainst ("ivate "es(on!ent Le!es/a0
alle&in& that !es(ite e'(i"ation o the
cont"act o lease e'ecute! +et,een the/
an! !e/an!s to vacate su+8ect ("e/ises
an! (ay "entals the"eo"0 the latte" aile! to
co/(ly ,ith such !e/an!s. -"ivate
"es(on!ent counte"e! in his Ans,e" that he
ha! (ai! the "entals ove" su+8ect ("e/ises
an! (etitione" no lon&e" ha! the "i&ht to
(ossess the ("o(e"ty as it ha! +een
o"eclose! +y the *evelo(/ent 7an1 o the
-hili((ines F*7-H. -"ivate "es(on!ent
u"the" (ointe! out that su+8ect ("e/ises
ha! in act +een in the (ossession o the
*7- since Ma"ch o" A("il o ;2270 so since
that ti/e0 it ,as ,ith the *7- that he
/a!e a""an&e/ents o" his continue!
occu(ation o the su+8ect ("e/ises. The
MeTC then "en!e"e! 8u!&/ent in avo" o
(etitione"0 o"!e"in& ("ivate "es(on!ent to
su""en!e" (ossession o su+8ect ("e/ises
to (etitione". -"ivate "es(on!ent a((eale!
to the Re&ional T"ial Cou"t FRTCH0 an! to
stay e'ecution o sai! 8u!&/ent0 ("ivate
"es(on!ent .le! a su(e"se!eas +on! ,ith
the MeTC. The RTC aE"/e! the MeTC
8u!&/ent. -etitione" then /ove! o" the
i//e!iate e'ecution o the RTC *ecision0
,hich /otion ,as &"ante! +y the RTC.
Mean,hile0 ("ivate "es(on!ent elevate!
the case to the CA via a (etition o" "evie,
on ce"tio"a"i ,ith ("aye" o" the issuance o
a te/(o"a"y "est"ainin& o"!e" o" ,"it o
("eli/ina"y in8unction. A te/(o"a"y
"est"ainin& o"!e" ,as issue! +y the CA0
eDectively stayin& i/(le/entation o the
,"it o e'ecution issue! +y the RTC. No,
the ("esent (etition o" ce"tio"a"i o" the
annul/ent o the CA)s "esolution
Issue: ;. Chethe" the CA co//itte! &"ave
a+use o !isc"etion a/ountin& to lac1 o"
e'cess o 8u"is!iction ,hen it o"!e"e! the
issuance o a ,"it o ("eli/ina"y in8unction
to stay the i//e!iate e'ecution o the RTC
8u!&/ent
5. Chethe" the CA e"" in consi!e"in& the
su(e"se!eas +on! .le! ,ith the MTC0
,hich ans,e"s o" un(ai! "entals0 as
suEcient +on! o" the issuance o a ,"it o
("eli/ina"y in8unction
=el!: No. Chen e'i&encies in the case
,a""ant it0 the a((ellate cou"t /ay stay the
,"it o e'ecution issue! +y the RTC in an
action o" e8ect/ent i the"e a"e
ci"cu/stances necessitatin& such action.
Che"e su(e"venin& events Foccu""in&
su+se:uent to the 8u!&/entH +"in& a+out a
/ate"ial chan&e in the situation o the
(a"ties ,hich /a1es the e'ecution
ine:uita+le0 o" ,he"e the"e is no
co/(ellin& u"&ency o" the e'ecution
+ecause it is not 8usti.e! +y the ("evailin&
ci"cu/stances0 the cou"t /ay stay
i//e!iate e'ecution o the 8u!&/ent.
The"e also e'ists a /ate"ial chan&e in the
situation o the (a"ties. The CA ("o(e"ly
too1 into se"ious consi!e"ation the act that
in its *ecision in CA49.R. CI No. $3#@6
entitle! La Ca/(ana Foo! -"o!ucts0 Inc. v.
*evelo(/ent 7an1 o the -hili((ines0
,hich has +eco/e .nal an! e'ecuto"y0 it
o"!e"e! he"ein (etitione"0 o"/e"ly 1no,n
as La Ca/(ana Foo! -"o!ucts0 Inc.0 to
su""en!e" (ossession o su+8ect ("o(e"ties
to the *evelo(/ent 7an1 o the
-hili((ines. Evi!ently0 a se"ious clou! o
!ou+t has +een cast on (etitione")s "i&ht o
(ossession0 /a1in& it :uestiona+le
,hethe" the RTC *ecision0 o"!e"in& ("ivate
"es(on!ent to su""en!e" (ossession o
su+8ect ("e/ises to (etitione"0 shoul! +e
i//e!iately i/(le/ente!. The"eo"e0 the
CA !i! not &"avely a+use its !isc"etion in
this case> "athe"0 it acte! ("u!ently ,hen it
staye! e'ecution o the RTC *ecision until
such ti/e that a .nal "esolution o the /ain
case is "eache!.
-etitione"Js contention0 that it ,as
i/("o(e" o" the CA to have &"ante!
("ivate "es(on!entJs /otion to consi!e" the
su(e"se!eas +on! it (oste! ,ith the
Met"o(olitan T"ial Cou"t as suEcient to
cove" the +on! "e:ui"e! o" the issuance o
the ,"it o ("eli/ina"y in8unction0 is
li1e,ise inco""ect. -etitione" a"&ues that0
Gsai! su(e"se!eas +on! is (oste! solely
an! ("i/a"ily to ans,e" o" a s(eci.c
(u"(ose ,hich is o" the (ay/ent o un(ai!
"entals acc"uin& u( to the .nal 8u!&/ent.
This cannot +e hel! ans,e"a+le o"
!a/a&es to (etitione" shoul! it late" +e
14
oun! out that the ("ivate "es(on!ent is
not entitle! to the issuance.
Since the only !a/a&es that (etitione"
/ay +e entitle! to in an action o" unla,ul
!etaine" a"e those a"isin& "o/ its loss o
the use o" occu(ation o su+8ect ("e/ises0
the only !a/a&es (etitione" can clai/ +y
"eason o the stay o e'ecution o the RTC
8u!&/ent is also only o" the G"entG o" Gai"
"ental valueG o" the ("o(e"ty in :uestion.
The"eo"e0 the CA !i! not e"" in consi!e"in&
the su(e"se!eas +on! .le! ,ith the MTC0
,hich ans,e"s o" un(ai! "entals0 as
suEcient +on! o" the issuance o a ,"it o
("eli/ina"y in8unction.
Fe""e" vs. Ra+eca
Facts: On 6uly ;50 5??30 the (laintiD)s
counsel .le! a /otion o" i//e!iate
e'ecution0 ("ayin& that a ,"it o e'ecution
+e issue! Go" the i//e!iate e'ecution o
the ao"esai! 6u!&/ent.G The (laintiD cite!
Section ;20 Rule 7? o the Rules o Cou"t as
+asis o" its /otion.
5

In his o"!e" !ate! 6uly ;30 5??30 ho,eve"0
"es(on!ent 6u!&e !enie! the /otion o"
i//e!iate e'ecution0
$
statin&:
A Notice o A((eal !ate! 6uly 20 5??30
havin& +een seasona+ly .le! +y counsel
o" the !een!ant0 let the "eco"!s o the
a+ove4ca(tione! case +e0 as it is he"e+y
o"!e"e!0 elevate! to the Re&ional T"ial
Cou"t o Manila o" a(("o("iate ("ocee!in&s
an! !is(osition.
Consi!e"in& that the Cou"t has al"ea!y
&iven !ue cou"se to the a((eal o the
!een!ant ,hich ,as (e"ecte! ,ithin the
"e&le/enta"y (e"io!0 no /o"e action ,ill +e
ta1en on the Motion o" Reconsi!e"ation
!ate! 6uly ;20 5??3 .le! +y the (laintiD
th"u counsel.
The co/(lainants ave""e! that "es(on!ent
6u!&e)s !enial o thei" /otions ha!
"en!e"e! thei" victo"y inutile0 an! ha!
unai"ly !e("ive! the (laintiD o the
(ossession o the ("e/ises. They u"the"
ave""e! that "es(on!ent 6u!&e)s "eusal to
(e"o"/ an act /an!ate! +y the Rules o
Cou"t ha! &iven un!ue a!vanta&e to the
!een!ant to the (laintiD)s !a/a&e an!
("e8u!ice.
In his co//ent !ate! Se(te/+e" ;60 5??30
"es(on!ent 6u!&e !enie! the cha"&es. =e
e'(laine! that he ha! honestly thou&ht
that his cou"t ha! lost 8u"is!iction ove" the
case (u"suant to the ("ovision o Section 20
Rule 3; o the Rules o Cou"t F,hich
("ovi!es that Gin a((eals +y notice o
a((eal0 the cou"t loses 8u"is!iction ove" the
case u(on the (e"ection o the a((eals
.le! in !ue ti/e an! the e'(i"ation o the
ti/e to a((eal o the othe" (a"tiesGH once
he ha! &iven !ue cou"se to the !een!ant)s
notice o a((eal.
The co/(lainants conten!e! that
"es(on!ent 6u!&e e'hi+ite! his i&no"ance
o the la, an! ("oce!u"e in "elyin& on
Section 20 Rule 3; o the Rules o Cou"t
,hich "ee""e! to a((eals "o/ the
Re&ional T"ial Cou"t> that Rule 3?0 ,hich
containe! ("ovisions on a((eal "o/ the
Munici(al T"ial Cou"ts to the Re&ional T"ial
Cou"ts0 an! ,hich ("ovi!e! in its Section 3
that the (e"ection o the a((eal an! the
eDect o such (e"ection shoul! +e
&ove"ne! +y the ("ovisions o Section 2 o
Rule 3;0 conce"ne! a((eals +y notice o
a((eal in &ene"al> an! that instea!0 the
a((lica+le "ule shoul! +e Section ;20 Rule
7? o the Rules o Cou"t.
The co/(lainants (ointe! out that
"es(on!ent 6u!&e a((a"ently !i! not 1no,
that a((eal in o"ci+le ent"y an! !etaine"
cases ,as not (e"ecte! +y the /e"e .lin&
o a notice o a((eal Fas in o"!ina"y
actionsH +ut +y .lin& o a notice o a((eal
an! a suEcient su(e"se!eas +on!
a(("ove! +y the t"ial 8u!&e e'ecute! to the
(laintiD to (ay the "ents0 !a/a&es an!
costs acc"uin& !o,n to the ti/e o the
8u!&/ent a((eale! "o/. They asse"te!
that "es(on!ent 6u!&e)s invocation o &oo!
aith an! e""o" o 8u!&/ent !i! not a+solve
hi/ o lia+ility0 +ecause he ha! &"ossly
ne&lecte! his !uties /an!ate! +y la, +y
ailin& an! "eusin& to act on thei" /otion
o" i//e!iate e'ecution an! /otion o"
"econsi!e"ation an! +y &ivin& !ue cou"se
to the a((eal !es(ite no su(e"se!eas +on!
havin& +een .le! an! a(("ove! +y the t"ial
cou"t.
Issue: Chethe" the 8u!&e ,as i&no"ant in
not consi!e"in& the "ule o ("oce!u"e in
a((eal "o/ cases o o"ci+le ent"y o"
unla,ul !etaine"
15
=el!: Yes. In the case at +a" +ase! on sec
;2 ,hich states:
GSEC. ;2. I 8u!&/ent is
"en!e"e! a&ainst the !een!ant0
e'ecution s'all iss(e i))ediatel$
u(on /otion0 (nless an a((eal has
+een (e"ecte! and t'e de*endant
to sta$ e!ec(tion 3les a
s("ersedeas bond0 a(("ove! +y
the Munici(al T"ial Cou"t an!
e'ecute! in avo" o the (laintiD to
(ay the "ents0 !a/a&es0 an! costs
acc"uin& !o,n to the ti/e o the
8u!&/ent a((eale! "o/0 an!
unless0 !u"in& the (en!ency o the
a((eal0 he !e(osits ,ith the
a((ellate cou"t the a/ount o "ent
!ue "o/ ti/e to ti/e un!e" the
cont"act0 i any0 as !ete"/ine! +y
the 8u!&/ent o the Munici(al T"ial
Cou"t. VVVV VVVV VVVV.G
It is clea" "o/ the o"e&oin& that the
(e"ection o an a((eal +y itsel is not
suEcient to stay the e'ecution o the
8u!&/ent in an e8ect/ent case. The losin&
(a"ty shoul! li1e,ise .le a su(e"se!eas
+on! e'ecute! in avo" o the (laintiD to
ans,e" o" "ents0 !a/a&es an! costs0 an!0
i the 8u!&/ent o the cou"t "e:ui"es it0 he
shoul! li1e,ise !e(osit the a/ount o the
"ent +eo"e the a((ellate cou"t "o/ the
ti/e !u"in& the (en!ency o the a((eal.
Othe",ise0 e'ecution +eco/es /iniste"ial
an! i/(e"ative.
!een!ant seasona+ly .le! his Notice o
A((eal !ate! 2 6uly 5??3 on ;$ 6uly 5??3>
he ho,eve" aile! to .le any su(e"se!eas
+on!. ,rior to the .lin& o such notice o
a((eal0 /o"e s(eci.cally on ;5 6uly 5??30
co/(lainants have al"ea!y .le! thei"
Motion o" E'ecution !ate! # 6uly 5??3.
Instea! o actin& on the Motion o"
E'ecution0 "es(on!ent 6u!&e Ra+aca &ave
!ue cou"se to the a((eal in an O"!e" !ate!
;3 6uly 5??3 an! !i"ecte! his 7"anch Cle"1
o Cou"t to elevate the "eco"!s o the case
to the Re&ional T"ial Cou"t FRTCH. The
7"anch Cle"1 o Cou"t ho,eve" aile! to
o",a"! the "eco"!s to the RTC. This act is
clea" "o/ 6u!&e Ra+aca)s O"!e" !ate! 5#
6uly 5??3 ,he"ein he !i"ecte! the 7"anch
Cle"1 o Cou"t to o",a"! the "eco"!s o the
case to the Manila Re&ional T"ial Cou"t
i//e!iately. F"o/ the o"e&oin&0 it is clea"
that ,hen the co/(lainant /ove! o" the
i//e!iate e'ecution o 6u!&e Ra+aca)s
!ecision0 the latte" still ha! 8u"is!iction
ove" the case. =e the"eo"e clea"ly e""e!
,hen he "euse! to act on the Motion o"
E'ecution.
Rule 7; Cases
Yasay vs. Recto
Facts: On 6une 5#0 ;2260 so/e stoc1hol!e"s
o Inte"(o"t Resou"ces Co"(o"ation FIRCH
as1e! then SEC Chai"/an -e"ecto Yasay to
investi&ate an! vali!ate the ("o'ies an!
no/inations o" !i"ecto"s o the
co"(o"ation.
In line ,ith this an! on the sa/e !ate F6une
5#H0 the SEC issue! a TRO a&ainst the
oEce"s o the co"(o"ation to CEASE an!
*ESIST "o/ con!uctin& its annual
stoc1hol!e"s /eetin& on 6uly 20 ;226.
7ut +ecause the oEce"s o IRC ,he"e a+le
to &et "o/ the Cou"t o A((eals a TRO
a&ainst the O"!e" o SEC not to &o th"ou&h
,ith the 6uly 2 stoc1hol!e"s) cone"ence0
the "es(on!ents F,ho ,e"e the oEce"s o
IRCHstill con!ucte! its /eetin& as (lanne!.
On the ne't !ay0 6uly ;?0 ;2260 the
SEC !ecla"e! IRC)s cone"ence as invali!
an! o"!e"e! the "es(on!ents FoEce"s o
the IRCH to sho, cause ,hy they shoul!n)t
+e cite! o" conte/(t. On the hea"in&0 the
"es(on!ent oEce"s cite! the TRO issue! +y
the CA as the "eason ,hy they still ,ent
th"ou&h ,ith the /eetin&Mcone"ence.
Neve"theless0 the SEC still oun! the
"es(on!ent oEce"s &uilty o" conte/(t.
The O"!e" o the SEC ,ent even as a" as
+a""in& Atty. Manalaysay0 one o the
"es(on!ent oEce"s0 "o/ en&a&in& in the
("actice o la,.
An! so0 "es(on!ent ,ent to the CA to
a((eal SEC)s !ecision ,he"ein the
a((ellate cou"t "eve"se! SEC)s !ecision.
F"o/ this "eve"sal0 the (etitione" SEC
chai"/an A--EALS to the SC via (etition o"
"evie,0 clai/in& that the "eve"sal o the
a((ellate cou"t o the !ecision o the SEC
,as i/("o(e".
7ut the "es(on!ents a"&ue that the
CONTEM-T C=AR9E a&ainst the/ ,as
CRIMINAL in natu"e. Thus0 ,hen the CA
"eve"se! the &uilty ve"!ict o the SEC
.n!in& "es(on!ents &uilty o conte/(t0
sai! !ecisionM"eve"sal ,as tanta/ount to a
NOT 9AILTY ve"!ict ,he"ein no a((eal can
+e ta1en.
16
Issue: F;H Cas the "eve"sal o the CA o the
.n!in&s o SEC that "es(on!ents ,e"e
&uilty o conte/(t ("o(e"Q F5H Cas the
conte/(t ("ocee!in&s con!ucte! +y the
SEC c"i/inal o" civil in natu"eQ As such0
,as the "eve"sal o the CA a((eala+leQ
=el!: F;H The "ulin& o the CA ,as ("o(e"
+ecause even thou&h the SEC o"!e"e! the
oEce"s o IRC not to &o th"ou&h ,ith the
stoc1hol!e"s) cone"ence on 6uly 20 sai!
oEce"s ,e"e a+le to &et a TRO ,ith the CA
a&ainst SEC)s CEASE an! *ESIST O"!e" on
6uly #. Thus0 it ,as only ("o(e" that the
stoc1hol!e"s) cone"ence (ushe! th"ou&h.
F5H Ce a&"ee ,ith "es(on!ents that the
cha"&e o conte/(t (a"ta1es o the natu"e
o a c"i/inal oDense. The e'one"ation o
the conte/ne" "o/ the cha"&e a/ounts to
an ac:uittal "o/ ,hich an a((eal ,oul!
not lie.
RA !istinction is /a!e +et,een a civil
an! c"i/inal conte/(t. Civil conte/(t is
the ailu"e to !o so/ethin& o"!e"e! +y a
cou"t to +e !one o" the +ene.t o a
(a"ty. A c"i/inal conte/(t is any con!uct
!i"ecte! a&ainst the autho"ity o" !i&nity o
the cou"t.
-etitione"s a"&ue that the conte/(t
co//itte! +y "es(on!ents ,as civil in
natu"e0 as the te/(o"a"y "est"ainin& o"!e"
the SEC issue! ,as o" the +ene.t o a
(a"ty to a case. The contention is
untena+le.
RCivil conte/(t ("ocee!in&s a"e
&ene"ally hel! to +e "e/e!ial an! civil in
thei" natu"e> that is0 they a"e ("ocee!in&s
o" the eno"ce/ent o so/e !uty0 an!
essentially a "e/e!y o" coe"cin& a (e"son
to !o the thin& "e:ui"e!.S RIn &ene"al0 civil
conte/(t ("ocee!in&s shoul! +e institute!
+y an a&&"ieve! (a"ty0 o" his successo"0 o"
so/eone ,ho has a (ecunia"y inte"est in
the "i&ht to +e ("otecte!.S I the conte/(t
is initiate! +y the cou"t o" t"i+unal
e'e"cisin& the (o,e" to (unish a &iven
conte/(t0 it is c"i/inal in natu"e0 an! the
("ocee!in&s a"e to +e con!ucte! in
acco"!ance ,ith the ("inci(les an! "ules
a((lica+le to c"i/inal cases. The State is
the "eal ("osecuto".
RThe "eal cha"acte" o the ("ocee!in&s
in conte/(t cases is to +e !ete"/ine! +y
the "elie sou&ht o" +y the !o/inant
(u"(ose. The ("ocee!in&s a"e to +e
"e&a"!e! as c"i/inal ,hen the (u"(ose is
("i/a"ily (unish/ent0 an! civil ,hen the
(u"(ose is ("i/a"ily co/(ensato"y o"
"e/e!ial.S
R7ut ,hethe" the ."st o" the secon!0
conte/(t is still a c"i/inal ("ocee!in& in
,hich ac:uittal0 o" instance0 is a +a" to a
secon! ("osecution. The !istinction is o"
the (u"(ose only o !ete"/inin& the
cha"acte" o (unish/ent to +e
a!/iniste"e!.S In this case0 the conte/(t is
not civil in natu"e0 +ut c"i/inal0 i/(ose! to
vin!icate the the !i&nity an! (o,e" o the
Co//ission> hence0 as in c"i/inal
("ocee!in&s0 an a((eal ,oul! not lie "o/
the o"!e" o !is/issal o0 o" an e'one"ation
"o/0 a cha"&e o conte/(t.S
Sison v. Caoi+es
Facts: Res(on!ent Caoi+es FLas -inas
6u!&eH issue! an o"!e" citin& Sison FMM*A
t"aEc eno"ce"H o In!i"ect Conte/(t. The
o"!e" ste//e! ,hen Sison a(("ehen!e!
the oEcial !"ive" an! son o Caoi+es alon&
E*SA o" t"aEc violation.
7ecause o this inci!ent0 Caoi+es issue! an
o"!e" !i"ecte! Sison to sho, cost ,ithin the
non e'ten!i+le (e"io! o 53hou"s R,hy he
shoul! not +e cite! as in conte/(t o cou"t
an! !ealt ,ith acco"!in&ly.S Sison aile! to
a((ea" as !i"ecte! in the o"!e". Thus0 he
,as a""este! an! !etaine! in 6ail. Sison ,as
only !ischa"&e! "o/ !etention ,hen he
a!/itte! un!e" !u"ess that he co//itte! a
/ista1e an! u(on a((eal +y his counsel
assu"in& Caoi+es that the sa/e inci!ent
/ay not +e "e(eate!.
Su+se:uently0 Sison .le! an a!/inist"ative
co/(laint a&ainst Caoi+es. =e alle&e! that
he !i! not co//itte! any oDense e'ce(t
that he issue! a t"aEc violation "ecei(t to
the !"ive"4son o Caoi+es. I in!ee! such
act is an oDense0 then Las -inas cou"t has
no 8u"is!iction ove" it0 as the inci!ent
ha((ene! in Man!aluyon& City. =e cha"&e!
that the acts o Caoi+es in a""estin& hi/
,ithout a ,a""ant o" a""est +eo"e the
cha"&e o in!i"ect conte/(t ,as hea"!
constitute! the R&"avest a+use o autho"ity
eve" co//itte!.S =ence0 he ("aye! that
Caoi+es +e !is/isse! "o/ the se"vice.
Caoi+es !enie! the accusations. =e
clai/e! that he initiate! the co/(laint o"
in!i"ect co/te/(t (u"suant to Sec. $F!H o
Rule 7; an! its last (a".0 an! Sec. @F$Ho
Rule ;$@.
Investi&atin& 6ustice oun! Caoi+es &uilty.
Issue: Is the o"!e" citin& Sison o in!i"ect
conte/(t ("o(e". Cas Caoi+es 8usti.e! in
17
consi!e"in& the act o Sison as !eli+e"ate
!is"e&a"! o the "es(ect !ue to cou"t.
=el!: F;H No. The (e"son cite! o" conte/(t
is not a (a"ty to case (en!in& in cou"t. At
."st +lush0 it ,oul! see/ that the
"es(on!ent 8u!&e ,as 8usti.e! in hol!in&
the co/(lainant o" conte/(t0 !ue to the
latte")s "eusal to co/(ly ,ith the 8u!&e)s
O"!e" o Se(te/+e" ;@0 ;222. =o,eve"0 it
is not lost u(on this Cou"t that the
co/(lainant ,as not a (a"ty to any o the
cases (en!in& +eo"e the RTC0 7"anch 5@$.
Chat t"i&&e"e! the conte/(t cha"&e ,as0
in act0 the t"aEc violation inci!ent
involvin& the "es(on!ent 8u!&e)s son.
Fu"the"/o"e0 the "eco"! sho,s that ,hen
the co/(lainant .le! his "e(ly to the
cha"&e as "e:ui"e! +y the "es(on!ent
8u!&e0 the sa/e ,as "euse! +y so/e staD
/e/+e" in the latte")s sala.
In Cortes v. Ban#alan0 ,e hel! that a 8u!&e
/ay not hol! a (a"ty in conte/(t o cou"t
o" e'("essin& conce"n on the 8u!&e)s
i/(a"tiality th"ou&h a /otion o" volunta"y
inhi+ition0 even i the latte" /ay have elt
insulte! the"ein. The Cou"t also !ecla"e!0
thus:
WTCUhile the (o,e" to
(unish in conte/(t is
inhe"ent in all cou"ts so as
to ("ese"ve o"!e" in 8u!icial
("ocee!in&s an! to u(hol!
!ue a!/inist"ation o
8ustice0 8u!&es0 ho,eve"0
shoul! e'e"cise thei"
conte/(t (o,e"s
8u!iciously an! s(a"in&ly0
,ith ut/ost "est"aint0 an!
,ith the en! in vie, o
utili%in& thei" conte/(t
(o,e"s o" co""ection an!
("ese"vation not o"
"etaliation an! vin!ication.
F5H The "es(on!ent 6u!&e ,as not 8usti.e!
to so consi!e" the act an! "e/a"1s o Sison
as the"e+y !is(layin& a""o&ance to,a"!s
an! !eli+e"ate !is"e&a"! o the usual
"es(ect0 cou"tesy an! acco//o!ation !ue
to a cou"t o la, an! its "e("esentative.
Fi"st o all0 the "eusal o Sison an! the
su((ose! "e/a"1s shoul! not cause
"esent/ent on the (a"t o the "es(on!ent
6u!&e F,ho/ Sison /ost li1ely !i! not yet
1no, at the ti/eH +ecause he 1ne,0 as a
(u+lic oEcial hi/sel0 that Sison ,as only
!oin& his !uty o eno"cin& evenl$ the
(a"ticula" t"aEc "e&ulation a&ainst
s,e"vin& into a one4,ay st"eet "o/ the
,"on& !i"ection0 re#ardless o* t'e o4ce or
"osition o* t'e violatorFs *at'er. Secon!ly0
the "es(on!ent 6u!&e shoul! have ha! the
ci"cu/s(ection e'(ecte! o hi/ as a 8u!&e
to "eali%e that the "e/a"1s o Sison ,e"e
invite! +y Caoi+es III)s atte/(t to +luD his
,ay out o the a(("ehension beca(se 'e
&as t'e son o* an RTC 0(d#e. =ence0 the
"es(on!ent 6u!&e ,oul! have no &"oun!s
to cite Sison o" conte/(t o cou"t. An!0
thi"!ly0 the "es(on!ent 6u!&e an! his son
shoul! have challen&e! the issuance o the
t"aEc violation "ecei(t (u"suant to the
(e"tinent "ules i they !i! not a&"ee ,ith
the +asis o the a(("ehension an! also
a!/inist"atively cha"&e! Sison o" any
un,a""ante! act co//itte!. Since neithe"
,as !one +y the/0 +ut0 on the cont"a"y0
+oth ulti/ately acce(te! the vali!ity o the
a(("ehension0 as +o"ne out +y the "et"ieval
o the !"ive")s license ate" Se(te/+e" 520
;222 +y (ayin& the .nes co""es(on!in& to
the t"aEc violation0 then it ollo,s that the
"es(on!ent 6u!&e ha! the consciousness
that his son ,as at ault0 instea! o Sison.
9.R. No. ;@6#52 6une #0 5??3
RAMON *. MONTENE9RO0 (etitione"0
vs.
MA. TERESA L. MONTENE9RO0 o" he"sel
an! as the /othe" an! natu"al &ua"!ian o
the /ino"s0 ANTONIO AMELO an! ANA
MARIA -IA ISA7EL0 +oth su"na/e!
GMONTENE9RO0G "es(on!ents.
FACTS:
Ma. Te"esa Montene&"o .le!0 on
6une ;2230 a co/(laint o" su((o"t a&ainst
he" hus+an!0 Ra/on0 o" he"sel an! as
/othe" an! &ua"!ian o he" t,o /ino"
chil!"en Antonio A/elo an! Ana Ma"ia -ia
Isa+el. Fou" yea"s ate"0 they ente"e! into a
co/("o/ise a&"ee/ent. It ,as a(("ove!
+y the cou"t an! since they !i! not a((eal
the cou"t)s a(("oval0 it +eca/e .nal an!
e'ecuto"y.
An!e" the a&"ee/ent0 Ra/on
o+li&e! hi/sel to &ive his -;0???0???
enti"e sha"e in the con8u&al un!s in avo"
o his chil!"en0 -@??0??? o ,hich (aya+le
i//e!iately an! the "est ; yea" ate" the
a(("oval o the a&"ee/ent> esta+lish a
t"ust un! ,o"th -$M in avo" o his chil!"en
FeDective 6? !ays ate" the a(("oval o the
a&"ee/entH> an! o+tain an e!ucational
(lan o" his chil!"en FeDective ; yea" ate"
18
the a(("oval o the a&"ee/ent.
Ano"tunately0 Ra/on ,as not a+le
to co/(ly ,ith sai! o+li&ations. Te"esa ,as
thus ("o/(te! to .le a /otion o"
e'ecution o the 8u!&/ent a(("ovin& the
co/("o/ise a&"ee/ent. It ,as a(("ove!
an! ,"its o e'ecution an! notice o
&a"nish/ent ,e"e sent t,ice to Ra/on +ut
sai! ,"its "e/aine! unsatis.e!.
Te"esa then .le! on Ma"ch ;30
5??50 a /otion o" e'a/ination o Ra/on
as 8u!&/ent o+li&o" (u"suant to Sec $#
an! $2 o the Rules o Cou"t. In he" /otion0
she alle&e! that the"e is an u"&ency o" the
e'a/ination to +e con!ucte! at the ea"liest
ti/e since (etitione" ,as a+out to /i&"ate
to Cana!a. It ,as a(("ove! on Ma"ch ;20
5??5. The hea"in& ,as ho,eve" "eset
th"ice !ue to ailu"e o (etitione" to atten!
+ecause he ,as al"ea!y in Cana!a
"esultin& in his +ein& cite! in conte/(t o
cou"t.
The ollo,in& se"ies o events
sho,e! ho, Ra/on ha! co//itte!
in!i"ect conte/(t o cou"t)s o"!e"s:
Ma"ch 55 L /otion o"
e'a/ination ,as set.
Neithe" his counsel an!
Ra/on a((ea"e!. The
hea"in& ,as "esche!ule!
on A("il ;?0 5??5 an!
"e:ui"in& (etitione" ,hy he
shoul! not +e hel! in
conte/(t o cou"t o"
!iso+eyin& the Ma"ch ;20
5??5 o"!e".
Ma"ch 56 4 (etitione" .le!
a Co/(liance ,ith Motion
to "e4sche!ule -"ocee!in&s
an! e'(laine! his ailu"e to
atten! +ase! on his +elie
that he still have until A("il
;3 to .le his co//ent as
a&"ee! u(on.
A("il 3 4 hea"in& o" the
Co/(liance ,ith Motion to
"e4sche!ule -"ocee!in&s.
Counsel o" (etitione"
/anieste! that his client
ha! al"ea!y let o" Cana!a
an! ,oul! not +e a+le to
atten! the hea"in& on A("il
;? an! that he ,oul! +e
availa+le only on the last
,ee1 o 6uly o" ."st ,ee1 o
Au&ust 5??5. Counsel also
/anieste! that he ,oul!
not +e availa+le on sai!
!ate !ue to othe" hea"in&s.
6une ;$ L cou"t issue! an
o"!e" "esettin& the hea"in&
o" e'a/ination on 6uly $.
Su+(oena ,as issue! to
(etitione" in his a!!"ess at
#?@; Est"ella Avenue0 San
Antonio Iilla&e0 Ma1ati City.
6une ;7 L cou"t issue! an
o"!e" !i"ectin& (etitione" to
sho, cause ,hy he shoul!
not +e hel! in conte/(t o
cou"t o" ailu"e to atten!
the A("il ;? hea"in&.
-etitione" alle&e! that it
,as +ecause he ,as
al"ea!y in Cana!a an! ha!
no intentions o a+scon!in&
"o/ his o+li&ations.
6uly $ L the hea"in& !i! not
(ush th"ou&h +ecause
(etitione" .le! a Motion to
Ouash +ecause acco"!in&
to hi/ he /ay not +e
co/(elle! +y su+(oena to
atten! the $ 6uly 5??5
hea"in& in 7acolo! City. =e
!i! not alle&e that he ,as
still in Cana!a.
Se(t 5 L Motion to Ouash
,as !enie! +ut "e4sche!ule
the hea"in& on Octo+e" 5$.
Oct 55 L (etitione"
/anieste! that he ,oul!
not +e a+le to atten! the
hea"in& the ollo,in& !ay
as he ,as still in Cana!a
an! ,oul! +e availa+le only
on the ."st ,ee1 o
*ece/+e". =e /ove! that
the hea"in& +e "e4
sche!ule! on 2 *ece/+e".
Oct 5$ L he !i! not a((ea".
It ,as only then that he
,as cite! in conte/(t o
cou"t.
Ra/on .le! a /otion o"
"econsi!e"ation +ut it ,as !enie!.
=ence this (etition.
ISSAE:
19
CON the cou"t e""e! in hol!in& the
(etitione" &uilty o in!i"ect conte/(t o"
,illully !iso+eyin& the o"!e"s o the t"ial
cou"t "e:ui"in& hi/ to a((ea" o" (u"(oses
o e'a/ination as a 8u!&/ent o+li&o" at in
the hea"in&s sche!ule! on 55 Ma"ch 5??50
;? A("il 5??50 an! 5$ Octo+e" 5??5.
=EL*:
NO.
Conte/(t o cou"t involves the !oin& o an
act0 o" the ailu"e to !o an act0 in such a
/anne" as to c"eate an aD"ont to the cou"t
an! the sove"ei&n !i&nity ,ith ,hich it is
clothe!.6 It is !e.ne! as G!iso+e!ience to
the cou"t +y actin& in o((osition to its
autho"ity0 8ustice an! !i&nity.G7 The (o,e"
to (unish conte/(t is inhe"ent in all cou"ts0
+ecause it is essential to the ("ese"vation
o o"!e" in 8u!icial ("ocee!in&s0 an! to the
eno"ce/ent o 8u!&/ents0 o"!e"s an!
/an!ates o the cou"ts> an!0 conse:uently0
to the !ue a!/inist"ation o 8ustice.#
The Rules o Cou"t (enali%es t,o ty(es o
conte/(t0 na/ely0 !i"ect conte/(t an!
in!i"ect conte/(t. *i"ect conte/(t is
co//itte! in the ("esence o o" so nea" a
cou"t as to o+st"uct o" inte""u(t the
("ocee!in&s +eo"e the sa/e0 an! inclu!es
!is"es(ect to,a"! the cou"t0 oDensive
(e"sonalities to,a"! othe"s0 o" "eusal to +e
s,o"n o" to ans,e" as a ,itness0 o" to
su+sc"i+e an aE!avit o" !e(osition ,hen
la,ully "e:ui"e! to !o so.2
On the othe" han!0 Section $ o Rule 7; o
the Rules o Cou"t enu/e"ates (a"ticula"
acts ,hich constitute in!i"ect conte/(t0
thus:
FaH Mis+ehavio" o an oEce" o a cou"t in
the (e"o"/ance o his oEcial !uties o" in
his oEcial t"ansactions>
F+H *iso+e!ience o o" "esistance to a
la,ul ,"it0 ("ocess0 o"!e"0 o" 8u!&/ent o a
cou"t0 inclu!in& the act o a (e"son ,ho0
ate" +ein& !is(ossesse! o" e8ecte! "o/
any "eal ("o(e"ty +y the 8u!&/ent o"
("ocess o any cou"t o co/(etent
8u"is!iction0 ente"s o" atte/(ts o" in!uces
anothe" to ente" into o" u(on such "eal
("o(e"ty0 o" the (u"(ose o e'ecutin& acts
o o,ne"shi( o" (ossession0 o" in any
/anne" !istu"+s the (ossession &iven to
the (e"son a!8u!&e! to +e entitle! the"eto>
FcH Any a+use o o" any unla,ul
inte"e"ence ,ith the ("ocesses o"
("ocee!in&s o a cou"t not constitutin&
!i"ect conte/(t un!e" section ; o this
Rule>
F!H Any i/("o(e" con!uct ten!in&0 !i"ectly
o" in!i"ectly0 to i/(e!e0 o+st"uct0 o"
!e&"a!e the a!/inist"ation o 8ustice>
FeH Assu/in& to +e an atto"ney o" an oEce"
o a cou"t0 an! actin& as such ,ithout
autho"ity>
FH Failu"e to o+ey a su+(oena !uly se"ve!>
F&H The "escue0 o" atte/(te! "escue0 o a
(e"son o" ("o(e"ty in the custo!y o an
oEce" +y vi"tue o an o"!e" o" ("ocess o a
cou"t hel! +y hi/.
In "elation to the o"e&oin&0 Section $# o
Rule $2 o the Rules o Cou"t also ("ovi!es
that Ga (a"ty o" othe" (e"son /ay +e
co/(elle!0 +y an o"!e" o" su+(oena0 to
atten! +eo"e the cou"t o" co//issione" to
testiy as ("ovi!e! in the t,o ("ece!in&
sections0 an! u(on ailu"e to o+ey such
o"!e" o" su+(oena o" to +e s,o"n0 o" to
ans,e" as a ,itness o" to su+sc"i+e his
!e(osition0 /ay +e (unishe! o" conte/(t
as in othe" cases.G This ("ovision "elates
s(eci.cally to Section $F+H o Rule 7; o the
Rules o Cou"t.
In!i"ect conte/(t /ay eithe" +e initiate!
F;H /otu ("o("io +y the cou"t +y issuin& an
o"!e" o" any othe" o"/al cha"&e "e:ui"in&
the "es(on!ent to sho, cause ,hy he
shoul! not +e (unishe! o" conte/(t o" F5H
+y the .lin& o a ve"i.e! (etition0
co/(lyin& ,ith the "e:ui"e/ents o" .lin&
initiato"y (lea!in&s.;? In the ("esent case0
the t"ial cou"t initiate! the ("ocee!in&s o"
in!i"ect conte/(t +y issuin& t,o o"!e"s;;
!i"ectin& the (etitione" to sho, cause ,hy
he shoul! not +e (unishe! o" in!i"ect
conte/(t.
Conte/(t0 ,hethe" !i"ect o" in!i"ect0 /ay
+e civil o" c"i/inal !e(en!in& on the natu"e
an! eDect o the conte/(tuous act.
C"i/inal conte/(t is Gcon!uct !i"ecte!
a&ainst the autho"ity an! !i&nity o the
cou"t o" a 8u!&e actin& 8u!icially> it is an act
o+st"uctin& the a!/inist"ation o 8ustice
,hich ten!s to +"in& the cou"t into
!is"e(ute o" !is"es(ect.G;5 On the othe"
han!0 civil conte/(t is the ailu"e to !o
so/ethin& o"!e"e! to +e !one +y a cou"t o"
a 8u!&e o" the +ene.t o the o((osin&
(a"ty the"ein an! is the"eo"e0 an oDense
a&ainst the (a"ty in ,hose +ehal the
violate! o"!e" ,as /a!e.;$ I the (u"(ose
is to (unish0 then it is c"i/inal in natu"e>
+ut i to co/(ensate0 then it is civil.;3
In the ("esent case0 the conte/(tuous act
,as the (etitione")s "eusal to atten! a
hea"in& o" his e'a/ination as 8u!&/ent
o+li&o"0 u(on /otion +y the "es(on!ent
Te"esa. It /ust +e (ointe! out that the
(u"(ose o Section $6 o Rule $2 is to
("ovi!e the 8u!&/ent o+li&ee a "e/e!y in
case ,he"e the 8u!&/ent o+li&o" continues
to ail to co/(ly ,ith its o+li&ation un!e"
the 8u!&/ent. -etitione")s "eusal to +e
e'a/ine!0 ,ithout 8usti.a+le "eason0
20
constitute! in!i"ect conte/(t ,hich is civil
in natu"e.
-etitione")s !eli+e"ate ,illulness an! even
/alice in !iso+eyin& the o"!e"s o the t"ial
cou"t a"e clea"ly sho,n in the (lea!in&s he
hi/sel ha! .le! +eo"e the t"ial cou"t.
In his Maniestation o ;2 Ma"ch 5??5
(etitione" insiste! on his "i&ht to .le a "e(ly
o" co//ent on the Motion to E'a/ine
*een!ant as 6u!&/ent O+li&o" until ;3
A("il 5??5 solely on the +asis o the
(u"(o"te! a&"ee/ent at the cone"ence on
6 Ma"ch 5??5. -etitione" /e"ely +"ushe!
asi!e the O"!e" o the t"ial cou"t "e:ui"in&
hi/ to a((ea" on 55 Ma"ch 5??5 o" the
hea"in& +y not a((ea"in& in cou"t.
-etitione" cannot si/(ly assu/e that his
/aniestation ,oul! suEce o" the t"ial
cou"t to "e4sche!ule the 55 Ma"ch 5??5
hea"in&. That (o"tion o the /aniestation
.le! +y (etitione" on ;2 Ma"ch 5??50 ,hich
"ea!s:
$. In the /eanti/e0 ,e have no othe"
o(tion +ut to cancel the settin& on Ma"ch
550 5??5 until Res(on!ent shall have
su+/itte! his Re(lyMCo//ent an! the
issue is .nally lai! to "est +y the issuance
o a .nal O"!e" o" that (u"(ose.
!e/onst"ates +eyon! !ou+t a""o&ance0
hau&htiness an! !is"es(ect. Chile
(etitione" a((a"ently !isa&"ees ,ith the ;2
Ma"ch 5??5 O"!e" o +y the t"ial cou"t0 he
!i! not .le a /otion o" its "econsi!e"ation.
Neithe" !i! he .le a /otion to "eset the
sche!ule! hea"in& on 55 Ma"ch 5??5. Ce
have "ule! that a /otion o" continuance o"
(ost(one/ent is not a /atte" o "i&ht +ut
is a!!"esse! to the soun! !isc"etion o the
cou"t.;@ -etitione" sou&ht to !e("ive the
t"ial cou"t o the !isc"etion> he too1 it u(on
hi/sel to cancel o" to o"!e" the cou"t to
cancel the 55 Ma"ch 5??5 sche!ule!
hea"in&.
-etitione" /a1es a +elate! clai/ in the
("esent (etition that his ailu"e to atten!
the 55 Ma"ch 5??5 hea"in& ,as !ue to the
act that he ,as al"ea!y on his ,ay to
Manila on 55 Ma"ch 5??5 in ("e(a"ation o"
his 56 Ma"ch 5??5 t"i( to Cana!a.
=o,eve"0 such e'(lanation ,as not state!
in the ;2 Ma"ch 5??5 Maniestation an! @
A("il 5??5 Co/(liance an! Motion to Re4
sche!ule -"ocee!in&s. The e'(lanation is
eithe" a !elaye! ate"thou&ht o" an
un&ua"!e! conession o a !eli+e"ate (lan
to !elay o" even avoi! his e'a/ination as a
8u!&/ent o+li&o".
Neithe" can (etitione" "ely on the alle&e!
i""e&ula"ity in the t"ial cou"t)s &"ant o the
/otion to e'a/ine hi/ as 8u!&/ent o+li&o"
+eo"e he ,as a+le to .le a "e(ly o"
co//ent. Section $6 o0 Rule $2 o the
Rules o Cou"t allo,s0 as a /atte" o "i&ht0
the (laintiD ,ho is a 8u!&/ent o+li&ee to
e'a/ine the !een!ant as 8u!&/ent
o+li&o"0 at any ti/e ate" the "etu"n o the
,"it o e'ecution is /a!e. Section $6 "ea!s
as ollo,s:
Sec. $6. E'a/ination o 8u!&/ent o+li&o"
,hen 8u!&/ent unsatis.e!. N Chen the
"etu"n o a ,"it o e'ecution issue! a&ainst
("o(e"ty o a 8u!&/ent o+li&o"0 o" any one
o seve"al o+li&o"s in the sa/e 8u!&/ent0
sho,s that the 8u!&/ent "e/ains
unsatis.e!0 in ,hole o" in (a"t0 the
8u!&/ent o+li&ee0 at any ti/e ate" such
"etu"n is /a!e0 shall +e entitle! to an o"!e"
"o/ the cou"t ,hich "en!e"e! the sai!
8u!&/ent0 "e:ui"in& such 8u!&/ent o+li&o"
to a((ea" an! +e e'a/ine! conce"nin& his
("o(e"ty an! inco/e +eo"e such cou"t o"
+eo"e a co//issione" a((ointe! +y it0 at a
s(eci.e! ti/e an! (lace> an! ("ocee!in&s
/ay the"eu(on +e ha! o" the a((lication
o the ("o(e"ty an! inco/e o the
8u!&/ent o+li&o" to,a"!s the satisaction
o the 8u!&/ent. 7ut no 8u!&/ent o+li&o"
shall +e so "e:ui"e! to a((ea" +eo"e a
cou"t o" co//issione" outsi!e the ("ovince
o" city in ,hich such o+li&o" "esi!es o" is
oun!. FE/(hasis su((lie!H
Thus0 the t"ial cou"t co//itte! no a+use o
!isc"etion in sche!ulin& the e'a/ination o
(etitione" on 55 Ma"ch 5??5. On the
cont"a"y0 it acte! ,ith ut/ost 8u!iciousness
to avoi! a /isca""ia&e o 8ustice +ecause
(etitione" ,as "e(o"te! to +e a+out to
leave o" Cana!a0 a act ,hich (etitione"
!i! not "eute in his Maniestation o ;2
Ma"ch 5??5.
It is note,o"thy that ,hile (etitione"
insiste! that he still ha! until ;3 A("il 5??5
to .le a "e(ly o" co//ent on the /otion
o" e'a/ination0 he also /anieste!
th"ou&h counsel on @ A("il 5??5 that he
al"ea!y let o" Cana!a on 56 Ma"ch 5??5
an! ,ill not +e +ac1 until the last ,ee1 o
6uly o" the ."st ,ee1 o Au&ust 5??5. It is
o+vious then that (etitione" ,ante! to &ain
ti/e to avoi! +ein& e'a/ine!.
Cith "es(ect to the ;? A("il 5??5 hea"in&0
it is esta+lishe! that (etitione" ,as al"ea!y
in Cana!a at the ti/e o the sche!ule!
hea"in&. Nonetheless0 it /ust +e st"esse!
that the "e4sche!ulin& o the hea"in& to ;?
A("il 5??5 ,as +"ou&ht a+out +y his
un8usti.a+le ailu"e to atten! the 55 Ma"ch
5??5 hea"in&.
Su+se:uently0 !es(ite (etitione")s ;2
Ma"ch 5??5 an! @ A("il 5??5
/aniestations that he ,oul! "etu"n to the
21
-hili((ines so/eti/e !u"in& the last ,ee1
o 6uly o" ."st ,ee1 o Au&ust 5??50
(etitione" !i! not atten! the 5$ Octo+e"
5??5 hea"in&. A&ain0 instea! o .lin& a
/otion to "eset the hea"in&0 (etitione" .le!
a /aniestation the !ay +eo"e the
sche!ule! hea"in&0 ino"/in& the cou"t that
he ,ill +e una+le to atten! the hea"in& an!
su&&estin& the hea"in& to +e "eset to 2
*ece/+e" 5??5. Such /aniestation to "e4
sche!ule the 5$ Octo+e" 5??5 hea"in& ,as0
o" all intents an! (u"(oses0 a /otion to
(ost(one the hea"in& 0 +ut the (lea!in& !i!
not contain a notice o hea"in&.
It is o no /o/ent that (etitione" ,as
eventually e'a/ine! as 8u!&/ent o+li&o"
on ;7 *ece/+e" 5??50 nine F2H /onths
ate" the o"i&inal settin&. =is su+se:uent
a((ea"ance at the hea"in& !i! not ,i(e out
his conte/(tuous con!uct.
BANK OF THE PHILIPPINEISLANDS vs
CALANZA, GR 180699, Octob! 1",
#010
NACH$RA, %&'

This is a -etition o" In!i"ect Conte/(t .le!
+y (etitione" 7an1 o the -hili((ine Islan!s
F7-IH a&ainst "es(on!ents La+o" A"+ite"
Ro!e"ic1 6ose(h Calan%a FLA Calan%aH0
She"iD En"ico Y. -a"e!es FShe"iD -a"e!esH0
A/elia En"i:ue% FEn"i:ue%H0 an! Re/o L.
Sia FSiaH.

Facts: En"i:ue% an! Sia ,e"e the +"anch
/ana&e" an! the assistant +"anch
/ana&e"0 "es(ectively0 o 7acolo!4
Sin&can& 7"anch o (etitione". On
Se(te/+e" $0 5??$0 they ,e"e !is/isse!
"o/ e/(loy/ent on &"oun!s o +"each o
t"ust an! con.!ence an! !ishonesty. The
ollo,in& !ay0 they .le! se(a"ate
co/(laints o" ille&al !is/issal a&ainst
(etitione" +eo"e the National La+o"
Relations Co//ission FNLRCH0 Re&ional
A"+it"ation 7"anch No. II0 7acolo! City.
Ate" the su+/ission o thei" "es(ective
(osition (a(e"s0 E'ecutive LA *anilo C.
Acosta "en!e"e! a !ecision on Ma"ch 520
5??30 .n!in& that En"i:ue% an! Sia ha!
+een ille&ally !is/isse! "o/ e/(loy/ent.

-u"suant to the ao"esai! !ecision0
En"i:ue% an! Sia ,e"e "einstate! in
(etitione")s (ay"oll.

-etitione" a((eale! to the NLRC. The NLRC
"ule! that (etitione" ha! 8ust cause to
te"/inate En"i:ue% an! Sia. =ence0 it
"eve"se! an! set asi!e the LA !ecision an!0
althou&h it !is/isse! the co/(laint0 it
o"!e"e! (etitione" to &ive the !is/isse!
e/(loyees .nancial assistance e:uivalent
to one4hal /onth)s (ay o" eve"y yea" o
se"vice. In vie, o this !ecision0 (etitione"
sto((e! the (ay"oll "einstate/ent.
T@U

En"i:ue% an! Sia elevate! the /atte" to
the Cou"t o A((eals FCAH0 +ut aile! to
o+tain a avo"a+le !ecision. On Nove/+e"
$?0 5??@0 the a((ellate cou"t aE"/e! in
toto the NLRC !ecision. The case
eventually "eache! this Cou"t an! ,as
!oc1ete! as 9.R. No. ;75#;5.

*u"in& the (en!ency o the (etition +eo"e
this Cou"t0 En"i:ue% an! Sia .le! a Motion
o" -a"tial E'ecution
T6U
o the LA !ecision
!ate! Ma"ch 520 5??3. Citin& Ro1(ero v.
,'ili""ine Airlines/ they clai/e! that the
"einstate/ent as(ect o the LA !ecision
,as i//e!iately e'ecuto"y !u"in& the
enti"e (e"io! that the case ,as on a((eal.

In an O"!e" !ate! Octo+e" ;$0 5??70 LA
Calan%a &"ante! En"i:ue% an! Sia)s /otion
!es(ite the o((osition o (etitione". =e
o(ine! that so lon& as the"e is no .nality
yet o the !ecision "eve"sin& a "ulin& o the
lo,e" t"i+unal Fin this case0 the LAH
a,a"!in& "einstate/ent0 the sa/e shoul!
+e eno"ce!. Consi!e"in& that the case ,as
then (en!in& +eo"e this Cou"t0 he
sustaine! En"i:ue% an! Sia)s clai/0
a((lyin& the cases o Ro1(ero an! Air
,'ili""ines Cor"oration v. Ga)ora. The
co""es(on!in& ,"it o e'ecution ,as
su+se:uently issue!. A(on se"vice o the
,"it0 She"iD -a"e!es se"ve! on (etitione" a
notice o sale o a (a"cel o lan! o,ne! +y
(etitione" to satisy its o+li&ation.

A&&"ieve!0 (etitione" i//e!iately .le! an
A"&ent -etition o" In8unction ,ith ("aye"
o" the issuance o a Te/(o"a"y Rest"ainin&
O"!e" FTROH an!Mo" C"it o -"eli/ina"y
In8unction ,ith the NLRC0 Fou"th
*ivision0 Ce+u City. On Nove/+e" 560 5??70
the NLRC issue! a TRO.

*isa((ointe! ,ith the con!uct o LA
Calan%a0 She"iD -a"e!es0 En"i:ue%0 an! Sia0
an! in vie, o the (en!ency o 9.R. No.
;75#;50 entitle! nri1(e: v. Ban. o* t'e
,'ili""ine +slands/ +eo"e this Cou"t0
(etitione" institute! the ("esent (etition o"
in!i"ect conte/(t. -etitione" ave"s that LA
Calan%a)s O"!e" &"antin& En"i:ue% an!
Sia)s /otion o" (a"tial ,"it o e'ecution
22
("ee/(ts the !ecision o this Cou"t an!
eventually "esults in the (ay/ent o
En"i:ue% an! SiaJs clai/s ,hich /ay +e
cont"a"y to this Cou"t)s conclusion.
-etitione" a!!s that "es(on!ents
o+stinately (e"sist in a((lyin&
8u"is("u!ence ,hich is clea"ly ina((lica+le.
Finally0 (etitione" a"&ues that the e'ecution
("ocee!in&s ,e"e !one ,ith un!ue haste
that (etitione" ,as not &iven an
o((o"tunity to su+/it evi!ence in its
!eense to sto( the e'ecution. These0
acco"!in& to (etitione"0 clea"ly in!icate
utte" !is"es(ect to the Cou"t an! a"e
&"oun!s to cite "es(on!ents in in!i"ect
conte/(t.


Mean,hile0 on Fe+"ua"y ;50 5??#0 this
Cou"t "en!e"e! a *ecision in 9.R. No.
;75#;50 !enyin& the (etition .le! +y
En"i:ue% an! Sia0 the"e+y sustainin& the
NLRC an! the CA)s conclusion that En"i:ue%
an! Sia ,e"e vali!ly !is/isse! "o/
e/(loy/ent +y (etitione".

On 6une $?0 5??#0 the NLRC0 Fou"th
*ivision0 Ce+u City0 &"ante! 7-I)s (etition
o" in8unction0
On Octo+e" 570 5??#0 LA Calan%a issue! an
O"!e" consi!e"in& the case close! an!
te"/inate! +ase! on En"i:ue% an! Sia)s
/aniestation an! /otion to !is/iss in
vie, o the satisaction an! ull (ay/ent o
thei" clai/s.

Issue: Chethe" o" not "es(on!ents a"e
&uilty o in!i"ect conte/(t. O" in the
alte"native0 !o the acts o "es(on!ents
En"i:ue% an! Sia in .lin& a /otion o"
(a"tial e'ecution> o LA Calan%a in &"antin&
the ,"it o e'ecution an! a((lyin& o" not
a((lyin& esta+lishe! 8u"is("u!ence> an! o
She"iD -a"e!es in se"vin& the notice o sale
o the "eal ("o(e"ty o,ne! +y (etitione" all
un!e" the Sec $ Rule 7; Rules o Cou"t.

=el!: SC ans,e" in the ne&ative an!
!is/iss the (etition o" lac1 o /e"it.
Conte/(t o cou"t is !e.ne! as a
!iso+e!ience to the cou"t +y actin& in
o((osition to its autho"ity0 8ustice0 an!
!i&nity. It si&ni.es not only a ,illul
!is"e&a"! o" !iso+e!ience o the cou"t)s
o"!e"0 +ut such con!uct ,hich ten!s to
+"in& the autho"ity o the cou"t an! the
a!/inist"ation o la, into !is"e(ute o"0 in
so/e /anne"0 to i/(e!e the !ue
a!/inist"ation o 8ustice. It is a !e.ance o
the autho"ity0 8ustice0 o" !i&nity o the cou"t
,hich ten!s to +"in& the autho"ity an!
a!/inist"ation o the la, into !is"es(ect o"
to inte"e"e ,ith o" ("e8u!ice (a"ty4liti&ants
o" thei" ,itnesses !u"in& liti&ation.

The (o,e" to (unish o" conte/(t is
inhe"ent in all cou"ts an! is essential to the
("ese"vation o o"!e" in 8u!icial
("ocee!in&s an! to the eno"ce/ent o
8u!&/ents0 o"!e"s0 an! /an!ates o the
cou"t0 an! conse:uently0 to the !ue
a!/inist"ation o 8ustice. =o,eve"0 such
(o,e" shoul! +e e'e"cise! on the
("ese"vative0 not on the vin!ictive0
("inci(le. Only occasionally shoul! the
cou"t invo1e its inhe"ent (o,e" in o"!e" to
"etain that "es(ect0 ,ithout ,hich the
a!/inist"ation o 8ustice ,ill alte" o"
ail. Only in cases o clea" an!
contu/acious "eusal to o+ey shoul! the
(o,e" +e e'e"cise!. Such (o,e"0 +ein&
!"astic an! e't"ao"!ina"y in its natu"e0
shoul! not +e "eso"te! to unless necessa"y
in the inte"est o 8ustice.

It is t"ue that0 at the ti/e o the .lin& +y
En"i:ue% an! Sia o the /otion o" the
(a"tial e'ecution o the LA !ecision ,hich
!i"ecte! thei" "einstate/ent0 the !ecision
ha! al"ea!y +een "eve"se! +y the NLRC0
an! such "eve"sal ,as aE"/e! +y the
CA. The case ,as then on a((eal to this
Cou"t via a (etition o" "evie,
on certiorari un!e" Rule 3@ o the Rules o
Cou"t. Ce .n! that thei" /otion o" (a"tial
e'ecution ,as a +ona .!e atte/(t to
i/(le/ent ,hat they /i&ht have &enuinely
+elieve! they ,e"e entitle! to in
acco"!ance ,ith e'istin& la,s an!
8u"is("u!ence. This is es(ecially t"ue in the
instant case ,he"e the /eans o livelihoo!
o the !is/isse! e/(loyees ,as at sta1e.
Any /an in such an unce"tain an!
econo/ically th"eatene! con!ition ,oul!
+e e'(ecte! to ta1e ,hateve" /easu"es
a"e availa+le to ensu"e a /eans o
sustenance o" hi/sel an! his
a/ily. Clea"ly0 En"i:ue% an! Sia ,e"e
/e"ely (u"suin& a clai/ ,hich they
honestly +elieve! ,as !ue the/. Thei" act
is a" "o/ +ein& contu/acious.

On the othe" han!0 LA Calan%a0 on /otion
o En"i:ue% an! Sia0 issue! the ,"it o
e'ecution consi!e"in& that at the ti/e o
the a((lication o the ,"it0 this Cou"t ha!
yet to !eci!e 9.R. No. ;75#;5. LA
Calan%a o(ine! that so lon& as the"e is no
.nality yet o the !ecision "eve"sin& a
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"ulin& o the LA a,a"!in& "einstate/ent0
the sa/e shoul! +e eno"ce!. This ,as ho,
he inte"("ete! this Cou"t)s ("onounce/ents
in Ro1(ero Case an! Ga)ora Case that
Reven i the o"!e" o "einstate/ent o the
La+o" A"+ite" is "eve"se! on a((eal0 it is
o+li&ato"y on the (a"t o the e/(loye" to
"einstate an! (ay the ,a&es o the
!is/isse! e/(loyee !u"in& the (e"io! o
a((eal until "eve"sal +y the hi&he" cou"t.S

7ut as ,e clea"ly !iscusse! in Ba#o
v. National ?abor Relations
Co))ission/ ,hile it is t"ue that the
"einstate/ent as(ect o the LA !ecision is
i//e!iately e'ecuto"y0 the "eve"sal
the"eo +y the NLRC +eco/es .nal an!
e'ecuto"y ate" ten F;?H !ays "o/ "ecei(t
the"eo +y the (a"ties. That the CA /ay
ta1e co&ni%ance o an! "esolve a (etition
o" the nulli.cation o the NLRC !ecision on
8u"is!ictional an! !ue ("ocess
consi!e"ations !oes not aDect the statuto"y
.nality o the NLRC !ecision. It then
lo&ically ollo,s that0 at the ti/e o the
a((lication o" the ,"it since the Cou"t
eventually sustaine! the NLRC an! the CA
!ecisions in 9.R. No. ;75#;5 no issue o
(ay"oll "einstate/ent /ay +e consi!e"e! at
all ate" the "eve"sal o the LA !ecision +y
the NLRC.

Still0 the e""oneous issuance o the
,"it o e'ecution +y LA Calan%a can only +e
!ee/e! &"ave a+use o !isc"etion ,hich is
/o"e ("o(e"ly the su+8ect o a (etition
o" certiorari an! not a (etition o" in!i"ect
conte/(t. No one ,ho is calle! u(on to t"y
the acts o" inte"("et the la, in the ("ocess
o a!/iniste"in& 8ustice can +e inalli+le in
his 8u!&/ent.

Finally0 She"iD -a"e!es0 in se"vin&
the notice o sale0 ,as only (e"o"/in& his
!uty (u"suant to the ,"it o e'ecution. No
/atte" ho, e""oneous the ,"it ,as0 it ,as
issue! +y LA Calan%a an! ,as a!!"esse! to
hi/ as the she"iD0 co//an!in& hi/ to
collect "o/ (etitione" the a/ount !ue
En"i:ue% an! Sia. In the event he aile! to
collect the a/ount0 he ,as autho"i%e! to
cause the satisaction o the sa/e on the
/ova+le an! i//ova+le ("o(e"ties o
(etitione" not e'e/(t "o/
e'ecution. Thus0 any act (e"o"/e! +y
She"iD -a"e!es (u"suant to the ao"esai!
,"it cannot +e consi!e"e! conte/(tuous.
At the ti/e o the se"vice o the notice o
sale0 the"e ,as no o"!e" "o/ any cou"t o"
t"i+unal "est"ainin& hi/ "o/ eno"cin& the
,"it. It ,as /iniste"ial !uty o" hi/ to
i/(le/ent it.

To +e consi!e"e! conte/(tuous0 an
act /ust +e clea"ly cont"a"y to o"
("ohi+ite! +y the o"!e" o the cou"t o"
t"i+unal. A (e"son cannot0 o" !iso+e!ience0
+e (unishe! o" conte/(t unless the act
,hich is o"+i!!en o" "e:ui"e! to +e !one is
clea"ly an! e'actly !e.ne!0 so that the"e
can +e no "easona+le !ou+t o" unce"tainty
as to ,hat s(eci.c act o" thin& is o"+i!!en
o" "e:ui"e!.

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