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Carpio (Chairperson), Nachura, Abad JJ. Petition Denied, Judgment and Resolution Affirmed
Carpio (Chairperson), Nachura, Abad JJ. Petition Denied, Judgment and Resolution Affirmed
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* FIRST DIVISION.
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Factual Antecedents
The BANK is a domestic financial corporation that
extends loans to subdivision developers/owners.5
Petitioner DELTA is a domestic corporation engaged in
the business of developing and selling real estate
properties, particularly Delta Homes I in Cavite. DELTA is
owned by Ricardo De Leon (De Leon),6 who is the
registered owner of a parcel of land covered by Transfer
Certificate of Title (TCT) No. T-6371837 of the Registry of
Deeds of the Province of
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1 Pilipinas Kao, Inc. v. Court of Appeals, 423 Phil. 834, 858; 372 SCRA
548, 572 (2001).
2 Rollo of G.R. No. 168646, pp. 3-27.
3 Rollo of G.R. No. 168666, pp. 3-16.
4 CA Decision, pp. 9-10; id., at pp. 125-126.
5 Petition in G.R. No. 168646, p. 3; Rollo of G.R. No. 168646, p. 5.
6 Id., at pp. 3-4; id., at pp. 5-6.
7 Id., at p. 60.
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8 The loan contract itself was not attached to the parties’ pleadings;
only the promissory notes covering the said loan were attached. The
promissory notes contained the condition that the loan proceeds shall be
used only for the purpose of subdivision development, particularly the
development of Delta Homes I, Aniban, Bacoor, Cavite (CA Rollo, pp. 50-
55).
9 Id., at pp. 57-59.
10 Id., at p. 70. The amendment to the real estate mortgage was dated
November 8, 1995.
11 Rollo of G.R. No. 168646, p. 60.
12 CA Rollo, p. 81. Pertinent portions of the registration certificate
dated September 22, 1995 read as follows:
BE IT KNOWN:
That DELTA HOMES I x x x is hereby REGISTERED pursuant to
Section 21 of BP 220 and its rules and regulations.
THAT any misrepresentation or material falsehood made in connection
with the application for this registration or the forgery or falsification of
any of the supporting documents thereof and other legal grounds provided
by law shall be a valid cause for the revocation of this Registration.
xxxx
AND THAT the project owner(s), RICARDO S. DE LEON and the
developer(s) DELTA DEVELOPMENT AND MANAGEMENT SERVICES,
INC. take the solidary responsibilities of complying with
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340 SUPREME COURT REPORTS ANNOTATED
Luzon Development Bank vs. Enriquez
“That the vendee/s offered to buy and the Owner agreed to sell
the above-described property subject to the following terms and
conditions to wit:
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6. That the (sic) warning shall be served upon the Vendee/s
for failure to pay x x x Provided, however, that for failure to pay
three (3) successive monthly installment payments, the Owner
may consider this Contract to Sell null and void ab initio without
further proceedings or court action and all payments shall be
forfeited in favor of the Owner as liquidated damages and
expenses for documentations. x x x
That upon full payment of the total consideration if payable in
cash, the Owner shall execute a final deed of sale in favor of the
Vendee/s. However, if the term of the contract is for a certain
period of time, only upon full payment of the total consideration
that a final deed of sale shall be executed by the Owner in favor of
the Vendee/s.”15
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the law and the rules and regulations for the issuance for this
CERTIFICATE and the License to Sell, if any.
13 Id., at p. 82. The License to Sell was dated September 19, 1995.
14 Rollo of G.R. No. 168646, pp. 61-64.
15 Id., at pp. 61-62.
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SO ORDERED.”25
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on the object of the sale and the purchase price. Absent any
circumstance vitiating Enriquez’ consent, she was
presumed to have willingly and voluntarily agreed to the
higher purchase price; hence, she was bound by the terms
of the contract.
The Board, however, deleted the arbiter’s award of
damages to Enriquez on the ground that the latter was not
free from liability herself, given that she was remiss in her
monthly amortizations to DELTA.
The dispositive portion of the Board’s Decision reads:
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29 Id., at p. 28.
30 Id., at p. 46.
31 Id., at p. 47.
32 Id., at pp. 46-48.
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38 CA Decision, p. 6; CA Rollo, p. 122.
39 CA Rollo, p. 25. The Resolution was signed by Senior Deputy
Executive Secretary Waldo Q. Flores, by authority of the President.
40 Id., at pp. 2-22. The petition was initially dismissed in the CA’s
January 29, 2004 Resolution for failure of the petition to state the
material dates and to attach a proof of the signatory’s authority to sign
the verification against forum-shopping (Id., at 85-86). Upon the Bank’s
motion for reconsideration (Id., at pp. 87-108), the petition was reinstated
and given due course in the CA’s May 25, 2004 Resolution (Id., at pp. 110-
111).
41 Petition in CA-G.R. SP No. 81280, pp. 11-14; id., at pp. 12-15.
42 Section 25. Issuance of Title.—The owner or developer shall
deliver the title of the lot or unit to the buyer upon full payment of the lot
or unit. No fee, except those required for the registration of the deed of
sale in the Registry of Deeds, shall be collected for the issuance of such
title. In the event a mortgage over the lot or unit is outstanding at the
time of the issuance of the title to the buyer, the owner or developer shall
redeem the mortgage or the corresponding portion thereof within six
months from such issuance in order that the title over any fully paid lot or
unit may be secured and delivered to the buyer in accordance herewith.
43 Petition in CA-G.R. SP No. 81280, pp. 14-16; CA Rollo, pp. 15-17.
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Issues
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57 Bank’s Memorandum in G.R. No. 168646, pp. 178-186; Bank’s
Memorandum in G.R. No. 168666, pp. 159-167.
58 Id., at pp. 190-192; id., at pp. 171-173.
59 Compliance and Comment in G.R. No. 168646, pp. 77-78;
Compliance and Comment in G.R. No. 168666, pp. 65-66.
60 Manifestation in G.R. No. 168646, p. 193; Manifestation in G.R. No.
168666, p. 177.
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Our Ruling
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61 Metropolitan Bank and Trust Company, Inc. v. SLGT Holdings, Inc.,
G.R. Nos. 175181-175182, 175354 &175387-175388, September 14, 2007,
533 SCRA 516, 526.
62 Id.
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63 Coronel v. Court of Appeals, 331 Phil. 294, 309; 263 SCRA 15, 26
(1996); Spouses Ramos v. Spouses Heruela, 509 Phil. 658, 664-667; 473
SCRA 79, 86 (2005).
64 See China Banking Corporation v. Lozada, G.R. No. 164919, July 4,
2008, 557 SCRA 177, 204.
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354 SUPREME COURT REPORTS ANNOTATED
Luzon Development Bank vs. Enriquez
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69 Tolentino, Commentaries on the Civil Code (1987), Vol. IV, p. 294, citing
Manresa.
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(2) When the defendant’s act or omission has compelled the plaintiff
to litigate with third person or to incur expenses to protect his interest;
(3) In criminal cases of malicious prosecution against the plaintiff;
(4) In case of a clearly unfounded civil action or proceeding against
the plaintiff;
(5) Where the defendant acted in gross and evident bad faith in
refusing to satisfy the plaintiff’s plainly valid, just and demandable claim;
(6) In actions for legal support;
(7) In actions for the recovery of wages of household helpers, laborers
and skilled workers;
(8) In actions for indemnity under workmen’s compensation and
employer’s liability laws;
(9) In a separate civil action to recover civil liability arising from a
crime;
(10) When at least double judicial costs are awarded;
(11) In any other case where the court deems it just and equitable
that attorney’s fees and expenses of litigation should be recovered.
In all cases, the attorney’s fees and expenses of litigation must be
reasonable. (Civil Code)
359
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SO ORDERED.