GR 222737 2018 PDF

Download as pdf or txt
Download as pdf or txt
You are on page 1of 12

CERTIFIED TRUE COPY

~ ~~
OV. AN
DivisioP' Clerk of Court
Third Division
~
.... ~~,·"'>"'\~~~ NOV 7 7 1nrn
f
ll.7. . . . . .

\_SJ)
l\epuhlic of tbc ~bilipptne~
~upreme ([ourt
j)f[anila

THIRD DIVISION

HEIRS OF JOSEFINA GABRIEL, G.R. No. 222737


Petitioners,
Present:

PERALTA, J., Chairperson,


- versus - LEONEN,
GESMUNDO,*
REYES, J.C., JR., and
HERNANDO,* JJ.

SECUNDINA CEBRERO, CELSO Promulgated:


LAVINA, and MANUEL C. CHUA,
Respondents. No~er-12, 2018
x------------------~-------------~------------------------------~-~-x

DECISION

PERALTA, J.:

For resolution of this Court is the petition for review on certiorari


filed by herein petitioners Heirs of Josefina Gabriel (petitioners) assailing
the Decision 1 dated October 20, 2015 and the Resolution2 dated January 29,
2016 of the Court of Appeals (CA) in CA-G.R. CV No. 102204, reversing
the Decision3 dated September 26, 2013 of the Regional Trial Court (RTC)
of Manila, Branch 52.

The facts follow.

On January 24, 1991, Segundina4 Cebrero (Cebrero), through her


attorney-in-fact Remedios Muyot, executed a real estate mortgage over the

On wellness leave.
Penned by Associate Justice Agnes Reyes-Carpio, with Associate Justices Andres B. Reyes, Jr.
(now a member of this Court) and Romeo F. Barza (now Presiding Justice), concurring; rollo, pp. 36-47.
2
Id at 30-32.
4
Penned by Acting Presiding Judge Ruben Reynaldo G. Roxas, CA rol/o, pp. 62-71.
Also referred to as "Secundina."
d
Decision -2- G.R. No. 222737

subject property located in Sampaloc, Manila with an area of two thousand


two hundred eighty-one square meters (2,281 sq. m.) covered by TCT No.
158305 registered under the name of Cebrero's late husband Virgilio
Cebrero (Virgilio) as security for the payment of the amount of Eight
Million Pesos (P8,000,000.00), pursuant to an amicable settlement dated
January 11, 1991 entered into by the parties in the case of annulment of
revocation of donation in Civil Case No. 83-21629. 5 In the said settlement,
Josefina Gabriel (Gabriel) recognized Cebrero's absolute ownership of the
subject property and relinquished all her claims over the property in
consideration of the payment of the said P8,000,000.00. 6

Upon Cebrero's failure to pay the amount within the period of


extension until December 31, 1991, Gabriel filed in 1993 an action for
foreclosure of the real estate mortgage docketed as Civil Case No. 92-62638.
In a Decision 7 dated December 15, 1993, the RTC of Manila, Branch 23
ruled in Gabriel's favor and ordered Cebrero to pay the P8,000,000.00 and
interest, or the subject property shall be sold at public auction in default of
payment. The dispositive portion reads:

WHEREFORE, judgment is hereby rendered in favor of the plaintiff


ordering the defendant as follows:

1. To pay to the Court the sum of P.8,000,000.00;

2. To pay interest to the Court on the P.8,000,000.00 liability


beginning July 1, 1991 until fully paid pursuant to the terms
agreed upon in the amendment to the Real Estate Mortgage;

3. To pay attorneys (sic) fees equivalent to 10% (ten percent)


of the total liability due under and as stipulated in the Real
Estate Mortgage in Exh. G;

4. And in the alternative, in default of payment under the award


appearing in paragraph 1, 2, and 3 above, after 90 days from
date of service hereof, pursuant to Rule 68, Sec. 2 of the
Rules of Court, the said property was covered by the Real
Estate Mortgage, particularly plaintiffs (sic) undivided
share or interest in the property consisting of her 1/2
conjugal share plus her inheritance consisting of 1/9 of 112
of the property covered by the mortgage, shall be sold a,t
public auction to realize the mortgage, debts and costs and
the sheriff is ordered to tum over to plaintiff from the
proceeds of the sale, the amount of P8,000,000.00
representing the principal sum due under the mortgage plus
l 8% interest thereon per annum from July 1, 1991 and
attorney's fees equivalent to 10% (ten percent) of the total
liability of defendant plus costs of suit and expenses of
litigation. The sheriff is likewise directed to deliver to the

~ecundina M. Vda. de Cebrero, et al.


Records, Vol. I, pp. 94-95.
Id. at 9-15.
cJI
Josefina Gabriel v. Estate of the Deceased Maria Carmen P. Gabriel, Remedios M. Muyot,
Decision -3- G.R. No. 222737

defendant the excess, if any, of the proceeds of the sale after


deducting the foregoing amounts.

SO ORDERED. 8

The sheriff initiated the necessary proceedings for the public auction
sale when no appeal was filed and the decision became final. On July 12,
1994, Gabriel, being the sole bidder, purchased Cebrero' s undivided share of
one-half (1/2) conjugal share, plus her inheritance consisting of one-ninth
(1/9) of the subject property in the amount of ll13,690,574.00. 9 On
November 16, 1995, the sheriff issued the Final Deed of Sale when Cebrero
failed to redeem the property. 10

However, Gabriel had not registered the Final Deed of Sale since she
disputed the Bureau of Internal Revenue's estate tax assessment on the
subject property considering that she claimed only a portion thereof. It was
also during this time that she discovered the registration of a peed of
Absolute Sale 11 dated September 27, 1994 executed by respondent Celso
Lavina (Lavina), Cebrero's attorney-in-fact, purportedly conveying the
entire property in favor of Progressive Trade & Services Enterprises
(Progressive) for and in consideration of Twenty-Seven Million Pesos
(ll27 ,000,000.00).

On November 27, 1996, Eduardo Cafiiza (Cafziza), 12 allegedly in


behalf of Gabriel, instituted a Complaint for declaration of nullity of sale and
of the Transfer Certificate of Title (TCT) No. 225341 of the subject property
registered under Progressive, a single proprietorship represented by its
President and Chairman, respondent Manuel C. Chua ( Chua). 13

In their Answer, respondents alleged that Gabriel has no legal


capacity to sue as she was bedridden and confined at the Makati Medical
Center since 1993. The complaint should be dismissed because Cafiiza
signed the verification and certification of the complaint without proper
authority. 14 The December 15, 1993 RTC decision in the foreclosure
proceedings was void due to improper service of summons. The Sheriff's
Final Deed of Sale was not registered and recorded. Moreover, the bid price
was higher than the amount in the compromise agreement. As a mere
creditor, Gabriel cannot annul the sale of the subject property to Progressive,
especially when there was a judicial consignment of the payment of lien.

(7
Id at 14-15.
9
Id at 3.
10
Id at 51-52.
II
Id at 25-27.
12
Also referred to as "Caniza."
13
Rollo, p. 36.
14
Records, Vol. I, p. 61.
Decision -4- G.R. No. 222737

On October 14, 1997, Gabriel died during the pendency of the case,
thus her heirs substituted her. 15

In the September 26, 2013 Decision, 16 the RTC ruled 'in favor of
Gabriel. It held that Chua cannot be considered the true and lawful owner of
the subject property as he was not a purchaser in good faith. At the time of
sale on September 27, 1994, the mortgage pertaining to Gabriel remained
annotated on the TCT No. 225340 registered in the name of Cebrero. Thus,
Chua had notice of Gabriel's existing interest over a portion of the property,
which should have prompted him to investigate the status of the mortgage.
The dispositive portion of the Decision reads:

WHEREFORE, premised on the foregoing considerations,


judgment is hereby rendered declaring the: (1) Deed of Absolute Sale
dated September 27, 1994, between Segundina M. Cebrero, represented by
her attorney-in-fact Celso D. Lavifia, and Progressive Trade and Services
Enterprises, a single proprietorship represented by its president and
chairman, Manuel C. Chua; and (2) Transfer Certificate of Title No.
225341 registered in the name of Progressive Trade and Services
Enterprises, as null and void and of no legal effect. Accordingly, the
Registry of Deeds of Manila is hereby directed to cancel TCT No. 225341
and re-issue TCT No. 225340 in the name of Secundina M. Cebrero.

Defendants are ordered to pay cost of suit. On the other hand,


plaintiffs' prayer for the award of attorney's fees is denied.

SO ORDERED. 17

On appeal, the CA reversed and set aside the Decision of the RTC.
There was no Special Power of Attorney (SPA) attached to the complaint to
substantiate Cafiiza's authority to sign the complaint and its verification and
certification of non-forum shopping. As the awardee of the foreclosure
proceedings, Gabriel is the real party-in-interest in the case. Since the trial
court never acquired jurisdiction over the complaint, all proceedings
subsequent thereto are considered null and void, and can never attain
finality. Thefallo of the Decision provides:

WHEREFORE, in view of the foregoing, this Court resolves as


follows:

( 1) Plaintiffs-appellants' A.fotion for Reconsideration 1s


DENIED.

(2) Defendant-appellant's Appeal is GRANTED. The


Decision, dated September 26, 2013, rendered by the
Regional Trial Court of Manila, Branch 52 in Civil Case
15
16
17
Id. at329.
CA rollo, pp. 62-71.
Id. at 70-71.
{Ji
..
Decision -5- G.R. No. 222737

No. 97-81420 is REVERSED AND SET ASIDE as to


the validity of the sale and TCT No. 225341. The same
are declared to be VALID. The Complaint, dated
November 27, 1996, is DISMISSED.

(3) Plaintiffs-appellants' Appeal with regard to attorney's


fees is DENIED.

SO ORDERED. 18

Upon denial of their Motion for Reconsideration, petitioners are now


before this Court raising the sole issue:

WITH DUE RESPECT, THE HONORABLE COURT OF APPEALS


COMMITTED SERIOUS ERROR OF LAW, WHEN IT REVERSED
AND SET ASIDE THE DECISION, DATED SEPTEMBER 26, 2013,
RENDERED BY THE REGIONAL TRIAL COURT OF MANILA,
BRANCH 52 IN CIVIL CASE NO. 97-81420 AS TO THE VALIDITY
OF THE SALE OF TCT NO. 225341 AND DISMISSED THE
COMPLAINT DATED NOVEMBER 27, 1996 ON THE SOLE BASIS
OF MERE TECHNICALITY THAT THE VERIFICATION AND
CERTIFICATION OF NON-FORUM SHOPPING WAS NOT
SUPPORTED WITH THE SPECIAL POWER OF ATTORNEY OF
EDUARI)O CANIZA. 19

The instant petition is without merit.

Petitioners allege that the Order2° dated· June 13, 2007 of the RTC
denying Lavifia's motion to set a preliminary hearing on the affirmative
defenses has long attained finality since respondents did not appeal the
same. Respondents are now estopped from raising the issue on appeal.

Section 1, Rule 41 of the Rules of Court provides:

Section 1. Subject of appeal. - An appeal may be taken from a


judgment or final order that completely disposes of the case, or of a
particular matter therein when declared by these Rules to be appealable.

No appeal may be taken from:


(a) An order denying a motion for new trial or
reconsideration;
(b) An order denying a petition for relief or any similar
motion seeking relief from judgment;
(c) An interlocutory order;
(d) An order disallowing or dismissing an appeal;
(e) An order denying a motion to set aside a judgment by
----------co_n_s_e_n_t_,confession or compromise on the ground of d
18
19
Rollo p. 46. (Citation omitted; emphasis in the original).
Id. at 11.
{/!
20
Records, pp. 292-294.
Decision -6- G.R. No. 222737

fraud, mistake or duress, or any other ground vitiating


consent;
(f) An order of execution;
(g) A judgment or final order for or against one or more of
several parties or in separate claims, counterclaims,
cross-claims and third-party complaints, while the main
case is pending, unless the court allows an appeal
therefrom; and
(h) An order dismissing an action without prejudice.

ln all the above instances where the judgment or final order is not
appealable, the aggrieved party may file an appropriate special civil
action under Rule 65. 21

A final judgment or order is one that finally disposes of a case,


leaving nothing more to be done by the Court in respect thereto, e.g., an
adjudication on the merits which, on the basis of the evidence presented at
the trial, declares categorically what the rights and obligations of the parties
are and which party is in the right; or a judgment or order that dismisses an
action on the ground, for instance, of res judicata or prescription.
Conversely, an order that does not finally dispose of the case, and does not
end the Court's task of adjudicating the parties' contentions and determining
their rights and liabilities as regards each other, but obviously indicates that
other things remain to be done by the Court, is "interlocutory," e.g., an order
denying a motion to dismiss under Rule 16 of the Rules. Unlike a "final"
judgment or order, which is appealable, an "interlocutory" order may not be
questioned on appeal except only as part of an appeal that may eventually be
taken from the final judgment rendered in the case. 22

The RTC Order dated June 13, 2007 denying the motion to set hearing
on special and affirmative defenses is no doubt interlocutory for it did not
finally dispose of the case but will proceed with the pre-trial. As such, the
said Order is not appealable, but may be questioned as part of an appeal that
may eventually be taken from the final judgment rendered. Here,
respondents had consistently raised in their Answer and in the appeal before
the CA the issue ofCafiiza's authority to file the case on behalf of Gabriel.

Petitioners allege that the verification and certification of the


complaint conforms with the rules since Cafiiza, as Gabriel's attomey-in-
fact, signed it. Besides, any defect was cured when he, being one of the
heirs, substituted Gabriel when she died during the pendency of the case
before the trial court.

Every action must be presented in the name of the real party-in-


interest. Section 2, Rule 3 of the 1997 Rules of Court provides:

21
22
Emphasis supplied. (/1/
Heirs of Dimaampao v. Atty. A lug, et al., 754 Phil. 236, 244 (2015), citing Denso (Phils.), Inc. v.
Intermediate Appellate Court, 232 Phil. 256, 264 (1987).
Decision -7- G.R. No. 222737

Sec. 2. Parties in interest. - A real party-in-interest is the party


who stands to be benefited or injured by the judgment in the suit, or the
party entitled to the avails of the suit. Unless, otherwise, authorized by law
or these Rules, every action must be prosecuted or defended in the name of
the real party-in-interest.

Here, Gabriel emerged as the highest bidder when a portion of the


subject property was sold on a public auction sale on July 12, 1994 after she
foreclosed the real estate mortgage over the · said property. As the one
claiming ownership of the said property, she is the real party-in-interest in
the instant case.

As to the verification and certification of non-forum shopping, the


Court, in Altres, et al. v. Empleo, et al., 23 laid down the following guidelines:

For the guidance of the bench and bar, the Court restates in capsule
form the jurisprudential pronouncements already reflected above
respecting non-compliance with the requirements on, or submission of
defective, verification and certification against forum shopping:

1) A distinction must be made between non-compliance with the


requirement on or submission of defective verification, and non-
compliance with the requirement on or submission of defective
certification against forum shopping.

2) As to verification, non-compliance therewith or a defect therein


does not necessarily render the pleading fatally defective. The court may
order its submission or correction or act on the pleading if the attending
circumstances are such that strict compliance with the Rule may be
dispensed with in order that the ends of justice may be served thereby.

3) Verification is deemed substantially complied with when one


who has ample knowledge to swear to the truth of the allegations in the
complaint or petition signs the verification, and when matters alleged ·in
the petition have been made in good faith or are true and correct.

4) As to certification against forum shopping, non-compliance


therewith or a defect therein, unlike in verification, is generally not
curable by its subsequent submission or correction thereof, unless
there is a need to relax the Rule on the ground of "substantial
compliance" or presence of "special circumstances or compelling
reasons".

5) The certification against forum shopping must be signed


by all the plaintiffs or petitioners in a case; otherwise, those who did not
sign will be dropped as parties to the case. Under reasonable or justifiable
circumstances, however, as when all the plaintiffs or petitioners share a
common interest and invoke a common cause of action or defense, the
signature of only one of them in the certification against forum shopping
substantially complies with the Rule. . i1
23 594 Phil. 246 (2008)
Decision -8- G.R. No. 222737

6) Finally, the certification against forum shopping must be


executed by the party-pleader, not by his counsel. If, however, for
reasonable or justifiable reasons, the party-pleader is unable to sign,
he must execute a Special Power of Attorney designating his counsel of
!record to sign on his behalf. 24

Section 5, 25 Rule 7 of the Rules of Court provides that the certification


against forum shopping must be executed by the plaintiff or principal party.
The reason for this is that the plaintiff or the principal knows better than
anyone, whether a petition has previously been filed involving the same case
or substantially the same issues. 26 If, for any reason, the principal party
cannot sign the petition, the one signing on his behalf must have been duly
authorized. 27

The complaint filed before the RTC was filed in the name of Gabriel,
however, it was Cafiiza who executed the verification and certification of
forum shopping, alleging that he was Gabriel's attorney-in-fact. The
verification and certification of non-forum shopping reads:

I, EDUARDO T. CANIZA (sic), Filipino, of legal age and with


address at No. 15 Olongapo St., Alabang Hills, Muntinlupa City, having
been first duly sworn in accordance with law, depose and say:

1. That I am the attorney-in-fact of plaintiff in


the above complaint;

2. That I caused the preparation of the foregoing


Complaint; I have read the contents thereof, and I hereby
affirm that the facts stated therein are true and correct;

3. That I certify that I have not commenced any


action or proceeding involving the same issues in the
Supreme Court, the Court of Appeals, or different divisions
thereof, or any other tribunal, or agency; that to the best of
my knowledge no such action or proceeding is pending

24
Id. at 261-262. (Citations omitted; emphases supplied).
25
Sec. 5. Certification against forum shopping. - The plaintiff or principal party shall certify under
oath in the complaint or other initiatory pleading asserting a claim for relief, or in a sworn certification
annexed thereto and simultaneously filed therewith: (a) that he has not theretofore commenced any action
or filed any claim involving the same issues in any court, tribunal or quasi-judicial agency and 1 to the best
of his knowledge, no such other action or claim is pending therein; (b) ifthere is such other pending action
or claim, a complete statement of the present status thereof; and (c) if he should, thereafter, learn that the
same or similar action or claim has been filed or is pending, he shall report that fact within five (5) days
therefrom to the court wherein his aforesaid complaint or initiatory pleading has been filed.
Failure to comply with the foregoing requirements shall not be curable by mere amendment of the
complaint or other initiatory pleading but shall be cause for the dismissal of the case without prejudice,
unless otherwise provided, upon motion and after hearing. The submission of a false certification or non-
compliance with any of the undertakings therein shall constitute indirect contempt of court, without
prejudice to the corresponding administrative and criminal actions. If the acts of the party or his counsel
clearly constitute willful and deliberate forum shopping, the same shall be ground for summary dismissal
with prejudice and shall constitute direct contempt, as well as a cause for administrative sanctions.
26
27
Tamondong v. Court ofAppeals, 486 Phil. 729, 741 (2004).
Fuentebella v. Castro, 526 Phil. 668, 675 (2006), citing Estaban, Jr. v. Vda. de Onorio, 412 Phil.
667, 674-675 (2001).
rt
Decision -9- G.R. No. 222737

before the Supreme Court, the Court of Appeals or different


divisions thereof, or any other tribunal or agency except the
case of "Josefina Gabriel vs. Segundina Cebrero[,]" Civil
Case No. 92-62638, Regional Trial Court of Manila, Branch
23, which has long been [decided] with finality by said court.

4. That should there be any such case filed or


pending, I undertake to promptly inform the aforesaid
Honorable Court and such other tribunal or agency of the fact
within five (5) days therefrom.

Makati City, for Manila, November 29, 1996.

(Sgd.)
EDUARDO T. CANIZA
Affiant
xx x2s

It was held that when an SPA was constituted precisely to authorize


the agent to file and prosecute suits on behalf of the principal, then it is such
agent who has actual and personal knowledge whether he or she has initiated
similar actions or proceedings before various courts on the same issue on the
principal's behalf, thus, satisfying the requirements for a
valid certification against forum shopping. The rationale behind the rule that
it must be the "petitioner or principal party himself' who should sign
such certification does not apply. Thus, the rule on the certification against
forum shopping has been properly complied with when it is the agent or
attorney-in-fact who initiated the action on the principal's behalf and who
signed the certification against forum shopping. 29

However, there was no duly executed SPA appended to the complaint


to prove Cafiiza's supposed authority to file and prosecute suits on behalf of
Gabriel. The Court cannot consider the mere mention in the December 15,
1993 Decision that he was Gabriel's attorney-in-fact as evidence that he was
indeed authorized and empowered to initiate the instant action against
respondents. There was also no evidence of substantial compliance with the
rules or even an attempt to submit an SPA after filing of the complaint.

We note that an Order30 dated August 6, 1997 of the RTC of Pasig


City declaring Gabriel as incompetent and granting motions filed by several
individuals, including Cafiiza, to be considered in the appointment as her
guardian ad !item, was included in the records of this case. Gabriel's
attending physician confirmed, on June 5, 1997, that she was confined at the
Makati Medical Center since 1993, and was not able to walk and
communicate since her confinement. Given the circumstances, the SP A
would have supported Cafiiza's contention that he was the authorized agent
28
29
Records, Vol. I, p. 8. 11
Bandillion, et al. v. La Filipina Uygongco Corp. (LFUC), 769 Phil. 806,823 (2015), citing Spouses
Wee v. Galvez, 479 Phil. 737, 751-752 (2004).
30 Records, Vol. I, pp. 167-169.
Decision - 10 - G.R. No. 222737

who has actual and personal knowledge whether he initiated similar actions
or proceedings before various courts on the same issue on the principal's
behalf instead of merely alleging that he was her attorney-in-fact. The basic
rule is that mere allegation is not evidence and is not equivalent to proof. 31

This Court expounded that the complaint filed for and in behalf of the
plaintiff by one who is unauthorized to do so is not deemed filed. An
unauthorized complaint does not produce any legal effect. Hence, the court
should dismiss the complaint on the ground that it has no jurisdiction over
the complaint and the plaintiff. 32

In Palmiano-Salvador v. Rosales, 33 the complaint was filed in the


name of respondent Constantino Rosales (Rosales), but one Rosauro Diaz
(Diaz) executed the verification and certification alleging that he was
Rosales' attorney-in-fact when there was no document attached in the
complaint to prove his allegation of authority. The Court held that since no
valid complaint was filed, the Metropolitan Trial Court of Manila did not
acquire jurisdiction over the case.

For the court to have authority to dispose of the case on the merits, it
must acquire jurisdiction over the subject matter and the parties. Courts
acquire jurisdiction over the plaintiffs upon the filing of the complaint, and
to be bound by a decision, a party should first be subjected to the court's
jurisdiction. 34

The substitution of heirs in a case ensures that the deceased party


would continue to be properly represented in the suit through the duly
appointed legal representative of his estate. 35 The purpose behind the rule
on substitution is to apprise the heir or the substitute that he is being brought
to the jurisdiction of the court in lieu of the deceased party by operation of
law. 36 It is for the protection of the right of every party to due process.
Proper substitution of heirs is effected for the trial court to acquire
jurisdiction over their persons and to obviate any future claim by any heir
that he or she was not apprised of the litigation. 37 From the fo_regoing,
Cafiiza's subsequent substitution as one of Gabriel's heirs did not cure the
defect in the complaint, i.e., when he signed the verification and certification
against forum shopping without apparent authority. To reiterate, the trial
court acquires jurisdiction over the plaintiff upon the filing of the complaint.
Besides, the substitution merely ensured that Gabriel's interest would be

31
Dr. De Jesus v. Guerrero III, et al., 614 Phil. 520, 529 (2009).

;f
32
Tamondong v. Court ofAppeals, supra note 26.
33
694 Phil. 1, 6 (2012).
34
Cosco Philippines Shipping, Inc. v. Kemper Insurance Company, 686 Phil. 327, 340 (2012).
35
Heirs of Bertuldo Hinog v. Hon. Melicor, 495 Phil. 422, 438-439 (2005).
36
Cardenas v. Heirs of the Late Spouses Aguilar, G.R. No. 191079, March 2, 2016; 782 SCRA 405,
411.
37
Heirs of Bertuldo Hinog v. Hon. Melicor, supra note 35, at 439.
Decision - 11 - G.R. No. 222737

properly represented and that her heirs were brought to jurisdiction of the
court.

Lastly, the Court notes that the real estate mortgage over a portion of
the property was annotated on the transfer certificate of titles. A mortgage is
a real right, which follows the property, even after subsequent transfers by
the mortgagor. "A registered mortgage lien is considered inseparable from
the property inasmuch as it is a right in rem." The sale or transfer of the
mortgaged property cannot affect or release the mortgage; thus, the
purchaser or transferee is necessarily bound to acknowledge and respect the
encumbrance. 38 The implication in buying the property, with notice that it
was mortgaged, was that Progressive necessarily undertook to allow the
subject property to be sold upon failure of Gabriel to obtain payment from
Cebrero once the indebtedness matured. Thus, it cannot invoke being a
buyer in good faith to exclude the property from being claimed ·by virtue of
foreclosure of the mortgage over the said property. This, however, does not
mean that the Court rules in favor of the petitioners. Considering that the
complaint was filed by Cafiiza, who has failed to prove that he was validly
authorized to do so, the complaint does not produce any legal effect. The
RTC never validly acquired jurisdiction over the case. Thus, the instant
petition must be dismissed.

WHEREFORE, the petition for review on certiorari filed by herein


petitioners Heirs of Josefina Gabriel is hereby DENIED. The Decision dated
October 20, 2015 and the Resolution dated January 29, 2016 of the Court of
Appeals in CA-G.R. CV No. 102204 are AFFIRMED. The complaint filed
by Josefina Gabriel before the Regional Trial Court is hereby DISMISSED
without prejudice.

SO ORDERED.

d .PERALTA

38 Garcia v. Villar, 689 Phil. 363, 375 (2012).


Decision - 12 - G.R. No. 222737

WE CONCUR:

r Associate Justice

~
On wellness leave f_,~;1/
ALEXANDER G. GESMUNDO E C. RETf S, JR.
Associate Justice sociate Justice

On wellness leave
RAMON PAULL.HERNANDO
Associate Justice

ATTESTATION

I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of the
Court's Division.

Associatt\. Justice
Chairperson, Third Division

CERTIFICATION

Pursuant to Section 13, Article VIII of the Constitution and the


Division Chairperson's Attestation, I certify that the conclusions in the
above Decision had been reached in consultation before the case was
assigned to the writer of the opinion of the Court's Division.

~~
ANTONIO T. CARPIO
Senior Associate Justice
(Per Section 12, Republic Act
No. 296, The Judiciary Act
<221 FIF..D 'fRUi: COPY
of 1948, as amended)

'>VIL~V~
vis~~~~erk
lJi of Court
Third Divi~ion
NOV 2 7 2018

You might also like