Republic of the Philippines SUPREME COURT Manila THIRD DIVISION G.R. No. !

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*.D. GUERRERO( PHI IPPINE N*TION* +*N, an- SHERI.. O. /UE0ON CIT1( petitione2s( 3s. MERCEDES P. 4UNTI * an- COURT O. *PPE* S( 2espon-ents. Gue22e2o 5 Dacana% fo2 petitione2s. Ma2% Concepcion +autista fo2 p2i3ate 2espon-ent.

GUTIERRE0( 4R.( 4.6 This petition fo2 ce2tio2a2i see7s to annul an- set asi-e the -ecision of the 2espon-ent Cou2t of *ppeals 8hich uphel- the -enial b% the t2ial cou2t of the petitione2s9 :otion to -is:iss on the ;2oun-s that the sait2ial cou2t has <u2is-iction o3e2 the case belo8( that the p2i3ate 2espon-ent has a cause of action a;ainst the petitione2s an- that the sa:e has not p2esc2ibe- an- is not ba22e- b% 2es <u-icata. The facts a2e state- in the =uestione- -ecision of the appellate cou2t( to 8it6 On .eb2ua2% $( #'>?( a -ecision 8as 2en-e2e- b% the Cou2t of .i2st Instance of Manila in Ci3il Case No. "@#>'( entitle- Philippine National +an7 3. Min-anao De3elop:ent an- *lipio 4untilla( o2-e2in; the -efen-ants the2ein to pa% the plaintiff the su: of P#&(#&>.#@( as of Dece:be2 #$( #'>>( plus inte2est A*nneB # of *nneB +( PetitionC. On Ma% ##( #'>?( the cou2t issue- an o2-e2 autho2iDin; the issuance of a 82it of eBecution A*nneB & of *nneB +( PetitionC. On Ma% #E( #'>?( a notice of le3% of attach:ent 8as annotate- at the bac7 of T2ansfe2 Ce2tificate of Title No. "@>)' co3e2in; the p2ope2t% locate- at No. ### Fest Ri3e2si-e St.( San .2ancisco -el Monte( /ueDon Cit%( an- 2e;iste2e- in the na:e of *lipio M. 4untilla( :a22ie- to Me2c% P. 4untilla A*nneB " of *nneB +( PetitionC. On *p2il &#( #'>)( the p2ope2t% 8as sol- b% the She2iff of /ueDon Cit% at public auction to the Philippine National +an7 fo2 the a:ount of P?(@@@.@@ an- the co22espon-in; ce2tificate of sale 8as issue- to saibu%e2 on .eb2ua2% &"( #'>' A*nneB E *nneB +( PetitionC. On 4anua2% #$( #'$>( the cou2t issue- an o2-e2 -i2ectin; the Re;iste2 of Dee-s of /ueDon Cit% to cancel TCT No. "@>)' an- to issue( in lieu the2eof( a ne8 title in the na:e of the Philippine National +an7( an-i2ectin; the She2iff of /ueDon Cit% to -eli3e2 possession of the p2ope2t% co3e2e- b% sai- title to the Philippine National +an7 A*nneB > of *nneB +( PetitionC. On *p2il #@( #'$>( the cou2t( actin; upon a :otion fo2 2econsi-e2ation file- b% the -efen-ants( issue- an o2-e2 2eite2atin; its o2-e2 of 4anua2% # $( #'$> A*nneB $ of *nneB +( PetitionC. * :otion fo2 2econsi-e2ation of sai- o2-e2 8as -enie- in an o2-e2 issue- on Ma% )( #'$> A*nneB ? of *nneB +( PetitionC. The secon- :otion fo2 2econsi-e2ation 8as also -enie- in an o2-e2 issue- on Ma% &&( #'$>

A*nneB ) of *nneB +( PetitionC. On Ma% #E( #'$)( the cou2t( afte2 -isallo8in; the appeal inten-e- to be ta7en b% the -efen-ants f2o: the abo3e!:entione- o2-e2s A*nneBes ' to #& of *nneB +( PetitionC( issue- an o2-e2 autho2iDin; the issuance of an alias 82it of eBecution co::an-in; the She2iff of /ueDon Cit% to e<ect f2o: the p2ope2t% co3e2e- b% TCT No. '?'@$ in the na:e of the Philippine National +an7 not onl% the -efen-ant *lipio 4untilla but all pe2sons clai:in; un-e2 hi: A*nneB #" of *nneB +( PetitionC. In his 2etu2n -ate- 4une >( #'$)( the She2iff of /ueDon Cit% ce2tifie-( a:on; othe2 thin;s( 9that on Ma% &"( #'$)( cop% of the alias 82it 8as se23e- upon the -efen-ants!MIND*N*O DEEP DEVE OPMENT COMP*N1 INCORPOR*TED an- * IPIO 4UNTI *( both at No. #ll Fest Ri3e2si-e St2eet( /ueDon Cit%( b% lea3in; sai- copies in the han-s of Gil-a Co2tes( li3in; in the sa:e house 8ith sufficient -isc2etion to 2ecei3e such 7in- of p2ocess an- 8ho ac7no8le-;e- 2eceipt the2eofG that on the sa:e -ate( sai-efen-ant 8as ;i3en ten A#@C -a%s 8ithin 8hich to 3acate the p2e:ises in =uestion 3olunta2il% that on 4une "( #'$)( he 2e3isite- the sub<ect :atte2 of the 82it an- foun- out that sai- -efen-ants 8e2e still occup%in; the p2e:ises in =uestion an- still 2efuse- to 3acate the sa:eG an- on 4une E( #'$)( he e<ectethe sai- -efen-ants an- -eli3e2e- possession of TCT No. '?'@$ of the Re;iste2 of Dee-s of /ueDon Cit%( to the Philippine National +an7!th2u the autho2iDe- 2ep2esentati3e( M2. .lo2encio R. Tan-oc A*nneB #? of *nneB +( PetitionC. The2eafte2( the Philippines National +an7 t2ansfe22e- the ph%sical possession of the p2ope2t% to *.D. Gue22e2o 8ho bou;ht the sa:e on 4anua2% )( #'$)( un-e2 the te2:s of the Dee- of P2o:ise to Sell eBecute- b% an- bet8een the: on .eb2ua2% &"( #'$). On 4une $( #'$)( the he2ein p2i3ate 2espon-ent Me2ce-es P. 4untilla( 8ife of *lipio 4untilla Aone of the -efen-ants in Ci3il Case No. "@#>' of the Cou2t of .i2st Instance of ManilaC( file- a co:plaint befo2e the Cou2t of .i2st Instance of RiDal( /ueDon Cit% +2anch( 8he2e it 8as -oc7ete- as Ci3il Case No. #&#$@ A*nneB *( PetitionC( see7in; the nullification of the sale of the p2ope2t% at No. ### Fest Ri3e2si-e St.( San .2ancisco -el Monte( /ueDon Cit%( an- the issuance of a 82it of p2eli:ina2% in<unction -i2ecte- a;ainst the Philippine National +an7 an- all pe2sons clai:in; un-e2 it an- the She2iff of /ueDon Cit% to 2esto2e he2 in possession of the p2ope2t% an- to 2ef2ain f2o: fu2the2 acts of -ispossession a;aints he2. She alle;e- that the obli;ations incu22e- b% the -efen-ants in fa3o2 of the plaintiff( as foun- in Ci3il Case No. "@#>' of the Cou2t of .i2st Instance of Manila( 8e2e co2po2ate an- not con<u;al in natu2e so that he2 un-i3i-e- one half A#H&C of the p2ope2t% in =uestion cannot be :a-e to ans8e2 the2efo2. She also alle;e- that she ha- been in possession of the p2ope2t% fo2 so:eti:e befo2e 4une E( #'$)( in he2 o8n 2i;ht b% 3i2tue of a<u-;:ent 2en-e2e- b% the 4u3enile Cou2t of Manila in Ci3il Case No. +! @@>@" fo2 the -issolution of the con<u;al pa2tne2ship 2eco;niDin; he2 sole o8ne2ship o3e2 sai- p2ope2t% an- a lease a;2ee:ent ente2e- into in open cou2t( in actual possession o3e2 the sai- pa2t% un-e2 he2 le;al 2i;ht an- b% he2 inst2uctions. On 4une ##( #'$)( petitione2 *.D. Gue22e2o file- a :otion to inte23ene. He an- the petitione2( Philippine National +an7( file- an opposition to the issuance of a 82it of p2eli:ina2% :an-ato2% in<unction A*nneB +( PetitionC. On 4ul% #( #'$)( the 2espon-ent 4u-;e issue- an o2-e2 ;2antin; p2i3ate 2espon-ent9s p2a%e2 fo2 p2eli:ina2% :an-ato2% in<unction upon the filin; of a bon- of P>(@@@.@@. *t the sa:e ti:e( petitione2 Gue22e2o9s inte23ention 8as also ;2ante- A*nneB D( PetitionC. On 4ul% #@( #'$)( petitione2s *.D. Gue22e2o an- the She2iff of /ueDon Cit% file- a :otion fo2 2econsi-e2ation of the o2-e2 of 4ul% #( #'$)( ;2antin; the in<unction A*nneB E( PetitionC. *t the hea2in; of sai- :otion on 4ul% #"( #'$)( the 2espon-ent 4u-;e -ecline- to 2econsi-e2 an-( instea-( -i2ectepetitione2 *.D. Gue22e2o to file a counte2!bon- in the su: of P#@(@@@.@@. Sai- bon- 8as file- on the sa:e -a% Ap. ?( pa2. )( PetitionC. On 4ul% #>( #'$)( petitione2 *.D. Gue22e2o file- a :otion a-optin; the <oint :otion to -is:iss file- on 4ul%

#( #'$) b% petitione2s Philippine National +an7 an- She2iff of /ueDon Cit% A*nneB .( PetitionC. On *u;ust ?( #'$)( as -i2ecte- b% the cou2t( the Philippine National +an7 poste- a counte2!bon- in the su: of P&@(@@@.@@ the2eb% liftin; the 82it of p2eli:ina2% in<unction issue- ea2lie2 Ap. )( #@( PetitionC. On .eb2ua2% &&( #'$'( the 2espon-ent 4u-;e issue- an o2-e2 -en%in; the petitione2s9 <oint :otion to -is:iss A*nneB H( PetitionC. On Ma% #E( #'$'( the petitione2s file- a <oint :otion fo2 2econsi-e2ation of the o2-e2 of .eb2ua2% &&( #'$' A*nneB #( PetitionC( but the sa:e 8as -enie- b% the 2espon-ent 4u-;e in an o2-e2 -ate- Octobe2 &&(#'$' A*nneB 4( PetitionC. ARollo( pp. &#!&$C On appeal( the appellate cou2t -is:isse- the petitione2s9 petition on the ;2oun-s that the t2ial cou2t has <u2is-iction o3e2 the sub<ect :atte2 of the case belo8 consi-e2in; that 8hat is bein; sou;ht the2ein specificall% is not the nullification of the -ecision in Ci3il Case No. "@#>'( but the nullification of the auction sale of the p2ope2t% in -ispute 8hich the p2i3ate 2espon-ent clai:s to be con<u;al in natu2e an-( as such( coul- not be hel- liable fo2 a co2po2ate obli;ation 8ithout he2 7no8le-;e an- consentG that the2efo2e( the2e is also no 2es <u-icataG that the sai- p2i3ate 2espon-ent ha- a 3ali- cause of action anthat the 2espon-ent9s action has not p2esc2ibe- since the latte2 file- the action onl% on 4une #$( #'$) ane3en if the countin; of the fou2!%ea2 p2esc2ipti3e pe2io- be 2ec7one- f2o: the cancellation of he2 title( still sai- 2espon-ent9s 2i;ht to 2eco3e2 possession has not %et p2esc2ibe-. In this p2esent case( the petitione2s p2incipall% conten- that the p2i3ate 2espon-ent9s action belo8 haal2ea-% p2esc2ibe- because the fou2!%ea2 pe2io- shoul- be 2ec7one- f2o: the 2e;ist2ation of the petitione2 ban79s ce2tificate of sale in #'>'. Consi-e2in; that the sa:e co3e2e- the 8hole p2ope2t%( the 2espon-ent( the2efo2e( ha- const2ucti3e notice of such sale. .u2the2:o2e( the% a2;ue that the p2i3ate 2espon-ent 8as also place- on notice 8hen the le3% an- attach:ent 8as annotate- at the bac7 of the title on Ma% #E( #'>?( an-( as a :atte2 of fact( the 2espon-ent e3en si;ne- the a;2ee:ent to postpone the sale( she( bein; the t2easu2e2 of Min-anao Deep De3elop:ent Co.( but that the 2espon-ent faile- to asse2t 8hate3e2 2i;ht she ha- on the p2ope2t% an- neithe2 -i- she file an% thi2-!pa2t% clai: o2 an action to 2eco3e2 he2 con<u;al sha2e. In a--ition( the petitione2s state that the a:en-e- -ecision of the then 4u3enile anDo:estic Relations Cou2t A4DRCC a8a2-in; the p2ope2t% to the 2espon-ent 8as onl% 2en-e2e- in #'$)( lon; afte2 the petitione2 ban7 ha- 2e;iste2e- its inte2est in #'>' an- obtaine- title in #'$>. The petitione2s( the2efo2e( :aintain that thei2 :otion to -is:iss file- belo8 shoul- ha3e been ;2ante- on the ;2oun- that the 2espon-ent9s action ha- al2ea-% p2esc2ibe-. Fe a;2ee. The 2eco2-s 8ill bea2 out the fact that 8hen the p2ope2t% in -ispute 8as le3ie- upon( the p2i3ate 2espon-ent 7ne8 about it because she 8as the t2easu2e2 of the Min-anao Deep De3elop:ent Co.( an- as such( she e3en si;ne- the a;2ee:ent to postpone the sale. If she ha- an% inte2est in the p2ope2t%( she shoul- ha3e asse2te- the sa:e -u2in; that ti:eG an- since the petitione2 +an7 8as able to obtain a ce2tificate of sale an- 2e;iste2e- it in #'>'( the p2i3ate 2espon-ent is -ee:e- to ha3e const2ucti3e notice of the sa:e as ea2l% as #'>'. Thus( in the case of hei2s of Ma2ia Ma2asi;an 3. Inte2:e-iate *ppellate Cou2t( A#>& SCR* &>"( &>'!&$@ I#')?JC( 8e 2ule-6 The2e is a clea2 sho8in; that althou;h the late Ma2ia Ma2asi;an ac=ui2e- the p2ope2t% in =uestion f2o: the +aDa2s pu2suant to a -ee- of absolute sale on Dece:be2 #)( #'?E o2 a little o3e2 fou2 :onths befo2e the filin; of Ci3il Case No. '?E?'( the t2ansaction beca:e effecti3e as a;ainst thi2- pe2sons onl% on 4ul% >( #'?? 8hen it 8as 2e;iste2e- 8ith the Re;ist2% of Dee-s of Manila( It is the act of 2e;ist2ation 8hich c2eates const2ucti3e notice to the 8hole 8o2l-. Section ># of *ct E'$( as a:en-e- b% Section >& of the P2ope2t% Re;ist2ation Dec2ee AP.D. #>&'C p2o3i-es6

Sec. >&. Const2ucti3e notice upon 2e;ist2ation. K E3e2% con3e%ance ... affectin; 2e;iste2e- lan- shall( if 2e;iste2e-( file- o2 ente2e- in the office of the Re;iste2 of Dee-s fo2 the p2o3ince o2 cit% 8he2e the lan- to 8hich it 2elates lies( be const2ucti3e notice to all pe2sons f2o: the ti:e of such 2e;iste2in;( filin; o2 ente2in;. The p2i3ate 2espon-ent( the2efo2e( shoul- ha3e oppose- the petitione2 +an79s 2e;ist2ation of ce2tificate of sale of the 8hole p2ope2t% if in-ee- she clai:s that one!half of the sai- p2ope2t% belon;s to he2. .u2the2:o2e( the 2espon-ent( 8as unable to p2o3e f2au- o2 an% i22e;ula2it% in the issuance of the title. Hence( she -i- not :a7e an% :o3e at that ti:e. It( thus( follo8s that she cannot also a3ail of the action fo2 2econ3e%ance 8hich :ust be file- 8ithin fou2 AEC %ea2s f2o: the -isco3e2% of f2au-. The onl% fact that 2espon-ent asse2ts is that the p2ope2t% is con<u;al an- 8hat 8as le3ie- upon 8as onl% he2 husban-9s sha2e an- not he2s( an-( the2efo2e( the sale 8as 3oi- in so fa2 as he2 sha2e 8as conce2ne- 8hich is( one half of the p2ope2t%. +ut asi-e f2o: -oin; nothin; 8ithin the p2esc2ipti3e pe2io- state- abo3e( the p2i3ate 2espon-ent -i- not p2esent an% e3i-ence that the p2ope2t% 8as con<u;al. She 8as able to p2esent onl% the -ecision of the 4DRC in #'$)( th2ee %ea2s afte2 the +an7 ha- obtaine- title to the p2ope2t%. Thus( since the 2espon-ent faile- to p2esent an% e3i-ence -u2in; the le3% an- sale of the p2ope2t% that the sa:e 8as ac=ui2e- -u2in; he2 :a22ia;e 8ith he2 husban-( the <u-;:ent!-ebto2( the p2esu:ption that the le3iep2ope2t% 8as con<u;al cannot appl% since the title of the p2ope2t% 8as in the na:e of he2 husban- anonl% -esc2ibe- hi: as L:a22ie- toL the 2espon-ent( In Moises 4ocson 3. Hon. Cou2t of *ppeals( et al.( AG.R. No. >>"&&( .eb2ua2% #$(#')'C( 8e 2ule-6 It is thus clea2 that befo2e Moises 4ocson :a% 3ali-l% in3o7e the p2esu:ption un-e2 *2ticle #$@ he :ust fi2st p2esent p2oof that the -ispute- p2ope2ties 8e2e ac=ui2e- -u2in; the :a22ia;e of E:ilio 4ocson an*le<an-2a Poblete. The ce2tificate of title( ho8e3e2( upon 8hich petitione2 2ests his clai: is insufficient. The fact that the p2ope2ties 8e2e 2e;iste2e- in the na:e of LE:ilio 4ocson( :a22ie- to *le<an-2a PobleteL is no p2oof that the p2ope2ties 8e2e ac=ui2e- -u2in; the spouses9 co3e2tu2e. *c=uisition of title an- 2e;ist2ation the2eof a2e t8o -iffe2ent acts. It is 8ell settle- that 2e;ist2ation -oes not confe2 title but :e2el% confi2:s one al2ea-% eBistin; ASee To2ela 3. To2ela( sup2a.C. It :a% be that the p2ope2ties un-e2 -ispute 8e2e ac=ui2e- b% E:ilio 4ocson 8hen he 8as still a bachelo2 but 8e2e 2e;iste2e- onl% afte2 his :a22ia;e to *le<an-2a Poblete( 8hich eBplains 8h% he 8as -esc2ibe- in the ce2tificates of title as :a22ie- to the latte2. Cont2a2% to petitione29s position( the ce2tificates of title sho8( on thei2 face( that the p2ope2ties 8e2e eBclusi3el% E:ilio 4ocson9s( the 2e;iste2e- o8ne2. This is so because the 8o2-s 9:a22ie- to9 p2ece-in; 9*le<an-2a Poblete9 a2e :e2el% -esc2ipti3e of the ci3il status of E:ilio 4ocson A ita: 3. Ri3e2a( #@@ Phil. ">EG Stua2t 3. 1atco( No. !#$E$?( *p2il &?( #'$&( E SCR* ##E"G Ma;allon 3. Monte<o( G.R. No. ?"?""( Dece:be2 #$( #')$( #E$ SCR* &)&C. In othe2 8o2-s( the i:po2t f2o: the ce2tificates of title is that E:ilio 4ocson is the o8ne2 of the p2ope2ties( the sa:e ha3in; been 2e;iste2e- in his na:e alone( an- that he is :a22ie- to *le<an-2a Poblete. Fe a2e not un:in-ful that in nu:e2ous cases 8e consistentl% hel- that 2e;ist2ation of the p2ope2t% in the na:e of onl% one spouse -oes not ne;ate the possibilit% of it bein; con<u;al ASee +uco% 3. Paulino( No. !&>??>( *p2il &$(#'$)( &" SCR* &E)C. +ut this 2ulin; is not inconsistent 8ith the abo3e p2onounce:ent fo2 in those cases the2e 8as p2oof that the p2ope2ties( thou;h 2e;iste2e- in the na:e of onl% one spouse( 8e2e in-ee- con<u;al p2ope2ties( o2 that the% ha3e been ac=ui2e- -u2in; the :a22ia;e of the spouses( anthe2efo2e( p2esu:e- con<u;al( 8ithout the a-3e2se pa2t% ha3in; p2esente- p2oof to 2ebut the p2esu:ption ASee Men-oDa 3. Re%es( No. !"#$#)( *u;ust #?( #')"( #&E SCR* #>EC. *s state- ea2lie2( the p2i3ate 2espon-ent shoul- ha3e p2esente- p2oof that the p2ope2t% 8as con<u;al o2 at least shoul- be p2esu:e- to be so. astl%( at the ti:e of the filin; of the action belo8 b% the 2espon-ent( the title of the p2ope2t% 8as al2ea-% t2ansfe22e- to a thi2- pe2son( petitione2 Gue22e2o( 8ho 2elie- solel% on the clean title of the +an7( an- thus(

:a% be sai- to be an innocent pu2chase2 fo2 3alue e3en assu:in; that the2e 8as a -efect in the title of the p2ope2t% he ac=ui2e-. The p2i3ate 2espon-ent( the2efo2e( is not onl% ba22e- b% p2esc2iption but also b% the ac=uisition of such thi2- pa2t% as the latte2 ha- e3e2% 2i;ht to 2el% :e2el% on the co22ectness of the title. In the case of +onifacio opeD( et al. 3. Hon. Cou2t of *ppeals( et al.( AG.R. No. E'?"'( 4anua2% "@( #')'C( 8e sai-6 Un-e2 the establishe- p2inciples of lan- 2e;ist2ation la8( the p2esu:ption is that the t2ansfe2ee of 2e;iste2e- lan- is not a8a2e of an% -efect in the title of the p2ope2t% he pu2chase- ASee Ta<one2a 3. Cou2t of *ppeals( #@" SCR* E$? I#')#JC. Mo2eo3e2( the pe2son -ealin; 8ith 2e;iste2e- lan- :a% safel% 2el% on the co22ectness of its ce2tificate of title an- the la8 8ill in no 8a% obli;e hi: to ;o behin- the ce2tificate to -ete2:ine the con-ition of the p2ope2t%. ADi2ecto2 of an-s 3. *bache( et al.( ?" Phil. $@$( #'E&C. BBB BBB BBB

If 8e a2e to accept the 2espon-ents9 contentions( a bu%e2 of 2e;iste2e- lan- 8oul- ha3e to loo7 be%onthe title fo2 an% un2e;iste2e- co!o8ne2( an% ea2lie2 bu%e2 8ho faile- to 2e;iste2 his pu2chase( all possible actual o8ne2s 8ho use- the 2e;iste2e- bu%e2 as a -u::%( an- so :an% othe2 -efects o2 3ices of the title( a- infinitu:. The 2ulin; of the 2espon-ent cou2t is cont2a2% to the 2easons behin- the in-efeasibilit% of a To22ens Title. Fe( the2efo2e( hol- that the 2espon-ent Cou2t of *ppeals e22e- in sustainin; the t2ial cou2t9s -enial of the :otion to -is:iss b% he2ein petitione2s fo2 the 2easons al2ea-% state- abo3e. FHERE.ORE( the petition is he2eb% GR*NTED an- the -ecision an- 2esolution of the Cou2t of *ppeals -ate- 4ul% &"( #'?@ an- 4anua2% &?(#'?#( 2especti3el%( a2e *NNU ED an- SET *SIDE. * ne8 one is ente2e- o2-e2in; the DISMISS* of Ci3il Case No. /!#&#$@ befo2e the then Cou2t of .i2st Instance of RiDal( /ueDon Cit% +2anch. SO ORDERED. .eliciano( +i-in an- Co2tes( 44.( concu2.