Quasha Pena v surnamed Pahamota On July 6, 1973,

LCN Const, ng. respondent Philippine

Quasha Pena National Bank (PNB)
v LCN Const, On September 15,
and Agustin executed
Quasha Pena 1972, Agustin filed
an Amendment of
vLCNConst,h with the then Court of
Real and Chattel
20, 2002, First Instance of
[1]
granting the Mortgages with
Davao City a petition
appeal and Assumption of
for issuance of letters
reversing the Obligation. It
appealed administration over
appears that earlier,
August 7, 1998 the estate of his
decision of the or on December 14,
deceased wife. The
Regional Trial 1972, the intestate
petition, docketed
Court at Davao court approved the
City; and as Special Case No.
mortgage to PNB of
1792, was raffled to
certain assets of the
2. Resolution Branch VI of said
dated estate to secure an
court, hereinafter
November 20, obligation in the
referred to as
2002, denying amount
herein the intestate court.
of P570,000.00.
petitioners'
motion for
In his petition, Agustin signed the
reconsideratio Agustin identified document in behalf of
n.[2] petitioners Josephine (1) the estate of
and Eleonor as Melitona; (2)
The factual
among the heirs of daughters Ana and
background:
his deceased spouse. Corazon; and (3) a
On July 1, 1972, It appears that logging company
Melitona Pahamotang Agustin was named Pahamotang
died. She was appointed petitioners' Logging Enterprises,
survived by her judicial guardian in an Inc. (PLEI) which
husband Agustin earlier case - Special appeared to have an
Pahamotang, and Civil Case No. 1785 interest in the
their eight (8) also of the CFI of properties of the
children, namely: Davao City, Branch estate. Offered as
Ana, Genoveva, VI. securities are twelve
Isabelita, Corazon, (12) parcels of
On December 7,
Susana, Concepcion registered land, ten
1972, the intestate
and herein (10) of which are
court issued an order
petitioners Josephin covered by transfer
granting Agustins
e and Eleonor, all certificates of title
petition.
(TCT) No. 2431,
7443, 8035, 11465, from PNB to of heirs for being
21132, 4038, 24327, capitalize the premature.
24326, 31226 and business of the
On October 22,
37786, all of the estate, the additional
1974, a real estate
Registry of Deeds of loan to be secured by
mortgage contract
Davao City, while the additional collateral in
for P4,500,000.00
remaining two (2) the form of a parcel of
was executed by
parcels by TCTs No. land covered by
PNB and Agustin in
(3918) 1081 and (T- Original Certificate of
his several capacities
2947) 562 of the Title (OCT) No. P-
as: (1) administrator
Registry of Deeds of 7131 registered in the
of the estate of his
Davao del Norte and name of Heirs of
late wife; (2) general
Davao del Sur, Melitona
manager of PLEI; (3)
respectively. Pahamotang. In the
attorney-in-fact of
same petition,
On July 16, 1973, spouses Isabelita
Agustin prayed the
Agustin filed with the Pahamotang and
intestate court to
intestate court Orlando Ruiz, and
declare him and Ana,
a Petition for spouses Susana
Genoveva, Isabelita,
Authority To Pahamotang and
Corazon, Susana,
Increase Octavio Zamora; and
Concepcion and
Mortgage on the (4) guardian of
herein petitioners
above mentioned daughters
Josephine and
properties of the Concepcion and
Eleonor as the only
estate. Genoveva and
heirs of Melitona.
petitioners Josephine
In an Order dated
In an Order of and Eleonor. Offered
July 18, 1973, the
October 19, 1974, as securities for the
intestate court
the intestate court additional loan are
granted said petition.
granted Agustin three (3) parcels of
On October 5, authority to seek registered land
1974, Agustin again additional loan from covered by TCTs No.
filed with the intestate PNB in an amount T-21132, 37786 and
court another not 43264.
petition, Petition for exceeding P5,000,00
On February 19,
Declaration of Heirs 0.00 to be secured by
1980, Agustin filed
And For Authority the land covered by
with the intestate
To Increase OCT No. P-7131 of
court a Petition
Indebtedness, the Registry of Deeds
(Request for
whereunder he of Davao Oriental, but
Judicial Authority
alleged the necessity denied Agustins
To Sell Certain
for an additional loan prayer for declaration
Properties of the their express 2947) 662 and (T-
Estate), therein conformity to the 3918) T-1081, were
praying for authority disposal of the sold to
to sell to Arturo subject properties of respondent Arturo
Arguna the the estate and to sign Arguna, while the
properties of the the deed of sale to be property covered by
estate covered by submitted to the OCT No. P-7131 was
TCTs No. 7443, 8035, same court. sold to PLEI.
11465, 24326 and Strangely, the two (2) Consequent to such
31226 of the Registry orders were dated sales, vendees
of Deeds of Davao two (2) days earlier Arguna
City, and also TCT than February 27, and PLEI filed witt the
No. (T-3918) T-1081 1980, the day Agustin intestate court a
of the Registry of supposedly filed his motion for the
Deeds of Davao del petition. approval of the
Norte. corresponding deeds
In a motion for
of sale in their favor.
On February 27, reconsideration,
And, in an Order
1980, Agustin yet Agustin prayed the
dated March 9, 1981,
filed with the intestate intestate court for the
the intestate court
court another petition, amendment of one of
granted the motion.
this time a Petition its February 25,
To Sell the 1980 Orders by Thereafter, three
Properties of the canceling the (3) daughters of
Estate, more requirement of Agustin, namely, Ana,
specifically referring express conformity of Isabelita and Corazon
to the property the heirs as a petitioned the
covered by OCT No. condition for the intestate court for the
P-7131, in favor disposal of the payment of their
of PLEI. aforesaid properties. respective shares
from the sales of
In In its Order of
estate properties,
separate Orders January 7, 1981, the
which was granted by
both dated February intestate court
the intestate court.
25, 1980, the granted Agustins
intestate court prayer. Meanwhile, the
granted Agustin obligation secured by
Hence, on March
authority to sell estate mortgages on the
4, 1981, estate
properties, in which subject properties of
properties covered by
orders the court also the estate was never
TCTs No.
required all the heirs satisfied. Hence, on
7443,11465, 24326,
of Melitona to give the basis of the real
31226, 8035, (T-
estate mortgage certain properties of petitioners Josephine
contracts dated July the estate], July 18, and Eleanor, together
6, 1973 and October 1973, October 19, with their sister
22, 1974, mortgagor 1974 and February Susana, filed their
PNB filed a petition 25, 1980. complaint
for the extrajudicial for Nullification of
In an Order dated
foreclosure of the Mortgage Contracts
September 5, 1983,
mortgage. and Foreclosure
the intestate court
Proceedings and
Petitioner denied the motions,
Damages against
Josephine filed a explaining:
Agustin, PNB, Arturo
motion with the
"Carefullyanalyzing Arguna, PLEI, the
intestate court for the
theaforesaidmotions Provincial Sheriff of
issuance of an order
Mati, Davao Oriental,
restraining PNB from andthegroundsrelied
the Provincial Sheriff
extrajudicially upon,aswellasthe
of Tagum, Davao del
foreclosing the oppositionthereto,the
Norte and the City
mortgage. In its Order Courtholdsthatthe Sheriff of Davao City.
dated August 19, supposeddefectsand/or In their complaint,
1983, the intestate irregularities docketed as Civil
court denied complainedofare Case No.
Josephines motion. mainlyformalor 16,802 which was
Hence, PNB was able proceduralandnot raffled to Branch 12
to foreclose the substantial,forwhich of the court, the
mortgage in its favor.
reason,theCourtisnot sisters Josephine,
Petitioners persuadedtostill Eleanor and Susana
Josephine and disturballtheorders, prayed for the
Eleanor, together with especiallythatinterests following reliefs:
their sister Susana ofthepartiestothe
Pahamatong-Zamora, variouscontracts "1.)Therealestate
filed motions with the alreadyauthorizedor mortgage
intestate court to set approvedbytheOrders contractsof
aside its Orders of soughttobesetaside July6,1973
December 14, andthatof
willbeadversely
1972 [Note: the order October2,
affected.[3]
dated July 18, 1973 1974,executed
contained reference byand
Such was the
to an order dated between
state of things when,
December 14, 1972 defendants
on March 20, 1984, in
approving the
the Regional Trial PNBAND
mortgage to PNB of
Court at Davao City, PLEIbe
 declarednull thereal 6.)Fordefendants
andvoidab properties topay
initio; described plaintiffs,
thereinto jointlyand
2.)Declaringthe defendant severally,the
foreclosure ArturoS. expenses
proceedings Arguna,as incurredin
conductedby nullandvoid connection
defendants abinitio; withthis
sheriffs, litigation;
insofarasthey 4.)Declaringthe
pertaintothe Deedof 7.)Fordefendants
assetsofthe AbsoluteSale, topay
estateof Doc.No.474; plaintiffs,
MelitonaL. PageNo.96, jointlyand
Pahamotang, BookNo.VIII, severally
includingthe seriesof1981 attorney'sfees
auctionsales oftheNotarial inanamount
thereto,and Registryof tobeproven
anyandall PaquitoG. duringthe
proceedings Balasabasof trial;
taken DavaoCity,
thereunder,as evidencingthe 8.)Fordefendants
nullandvoid sale/transferof topaythe
abinitio; realproperties costsofthe
toPLEIasnull suit.[4]
3.)Declaringthe andvoidab
Deedof initio; PNB moved to
AbsoluteSale, dismiss the
Doc.No.473; 5.)Fordefendants complaint, which the
PageNo.96; topay trial court granted in
BookNo.VIII, plaintiffs its Order of January
Seriesof1981 moraldamages 11, 1985.
oftheNotarial insuchsums However, upon
Registryof asmaybe motion of the
PaquitoG. foundtobe plaintiffs, the trial
Balasabasof justand court reversed itself
DavaoCity equitable and ordered
evidencingthe underthe defendant PNB to file
sale/transferof premises; its answer.
 Defendant PNB Sheriffs,insofar Doc.No.474;
did file its answer with astheyaffect PageNo.96;
counterclaim, theassetsofthe BookNo.VIII,
accompanied by a Estateof seriesof1981
cross-claim against Melitona oftheNotarial
co-defendants Pahamotang, Registerof
Agustin and PLEI. includingthe NotaryPublic
During the publicauction Paquito
ensuing pre-trial salesthereof, Balasabasis
conference, the arenulland nullandvoid?
parties submitted the void?
following issues for 5.Ondefendant
the resolution of the 3.Whetherornot PNB'scross
trial court, to wit: theDeedof claim,inthe
AbsoluteSale eventthe
"1.Whetherornot infavorof mortgage
theRealEstate defendant contractsand
Mortgage ArturoArguna theforeclosure
contracts enteredasDoc. proceedingsare
executedon No.473;Page declarednull
July6,1973 No.96;Book andvoid,
andOctober2, No.VIII,series whetherornot
1974(sic)by of1981ofthe defendant
andbetween Notarial Pahamotang
defendants Registerof Logging
Pahamotang NotaryPublic Enterprises,
Logging Paquito Inc.isliableto
Enterprises, Balasabasis thePNB?
Inc.andthe nullandvoid?
Philippine 6.Whetherornot
NationalBank 4.Whetherornot thedefendants
arenulland theDeedof areliabletothe
void? AbsoluteSale plaintiffsfor
infavorof damages?
2.Whetherornot defendant
theforeclosure Pahamotang
proceedings THE PHILIPPINE
Logging NATIONAL BANK v. THE
conductedby Enterprises, PHILIPPINE
defendants Inc.enteredas VEGETABLE OIL CO