PNB vs De Jesus Case Digest

CASEDI GESTS43 by: Rai saMa Macabando [ G. R.No.149295.Sept emb mber23,2003] PHI LI PPI NENATI ONALBANK,pet i t i oner ,vs .GENEROSO DEJESUS

FACTS: Res pondentfi l edac ompl ai ntagai ns tpet i t i onerbef or et heRegi onal T r i al Cour tofOc c i dent al Mi ndor of orr ec o ver yofo wner s hi pandpos s es s i on,wi t hdamages ,o v ert heques t i onedpr oper t y . On2 6Ma r c h1 993 ,h eh adc au se dav e r i fi c at i o ns ur v e yoft h ep r o pe r t yan dd i s c o v er e dt ha tt h e nor t her npor t i onoft hel otwasbei ngenc r oac heduponbyabui l di ngofpet i t i onert ot hee xt entof 124squar emet er s .Des pi t et wol et t er sofdemands entbyr es pondent ,pe t i t i onerf ai l edandr ef us ed t ov a cat et hear ea. Pe t i t i oneras s er t edt hatwheni tac qui r edt hel o tandt hebui l di ngs ome t i mei n1981f r om t henMa y or Bi en v eni doI gnac i o,t heenc r oac hmental r eadywasi nex i s t enc eandt or emedyt hesi t uat i on,Ma y or I gnac i ooffer edt os el l t hear eai nques t i on( whi c ht henal s obel ongedt oI gnac i o)t opet i t i onerat P100. 00pers quar eme t erwhi c hoff ert hel at t erc l ai medt oha v eac c ep t ed.Thesal e,ho we v er ,di d notmat er i al i z ewhen,wi t houtt hek no wl edgeandc ons entofpe t i t i oner ,Ma y orI gnac i ol at er mor t g agedt hel o tt ot heDe v el opmentBankoft hePhi l i ppi nes . Thet r i al c our tdec i dedt hec as ei nf av orofr es pondentdec l ar i nghi mt obet her i ght f ul owner . TheCour tofAppeal ssus t ai nedt het r i al c our t . I SSUE:W/ NPETI TI ONERI SA BUI LDERI NGOODFAI TH HELD: I nr ef er enc et oAr t i c l e448,ets eq. ,oft heCi v i l Code,abui l deri ngoodf ai t hi sonewho,notbei ng t heo wneroft hel and,bui l dsont hatl andbel i ev i nghi ms el ft obei t sownerandunawar eofan y def ec ti nhi st i t l eormodeofac qui s i t i on. Thees senc eofgoodf ai t hl i esi nanhones tbel i efi nt hev al i di t yofonesr i ght ,i gnor anc eofa s uper i orc l ai m,andabs enc eofi nt ent i ont oo v er r eac hano t her .Appl i edt opos s es si on,onei s c ons i der edi ngoodf ai t hi fhei snotawar et hatt her eex i s t si nhi st i t l eormodeofac qui s i t i onany fl awwhi c hi nv al i dat esi t .Ev i dent l y ,pet i t i onerwasqui t eawar e,andi ndeedadv i s ed,pr i ort oi t s ac qui s i t i onoft hel andandbui l di ngf r om I gnac i ot hatapar toft hebui l di ngs ol dt oi ts t oodont he l andno tc ov er edb yt hel andc on v ey e dt oi t . Equal l ysi gni fi canti st hef ac tt hatt hebui l di ng,c ons t r uc t edont hel andbyI gnac i o,hasi nac t ual i t y beenpar toft hepr oper t yt r ans f er r edt opet i t i oner .Ar t i c l e448,oft heCi v i l Coder ef er st oapi ec eof

l a ndwh os eo wn er s h i pi sc l a i me db yt woo rmo r ep ar t i e s ,o neo fwh om h asbu i l ts o mewo r k s( o r s ownorpl ant eds ome t hi ng)andno tt oac as ewher et heo wneroft hel andi st hebui l der ,s ower ,or pl ant erwhot henl at erl os esowner s hi poft hel andb ys al eoro t her wi s ef or ,el s ewi s es t at ed,wher e t het r ueownerhi ms el fi st hebui l derofwor k sonhi sownl and,t hei s sueofgoodf ai t horbadf ai t hi s ent i r el yi r r el ev ant . I nfi ne,pet i t i oneri snoti nav al i dpos i t i ont oi nv ok et hepr ov i s i onsofAr t i c l e448oft heCi v i l Code.

#124 G. R.No.197857 Sept ember10,2014 SPOUSESFRANCI SCO SI ERRAvs . PAI CSAVI NGSANDMORTGAGEBANK,I NC FACTS: OnMa y31 ,19 83 ,Go l d s t a rCon gl omer a t e s,I n c.( GCI ) ,r e pr e sen t e db yGui l l e r moZa l d ag a ( Za l d ag a) ,o bt a i n edf r o m Su mmaBa nk ,n owr e s po nd en tPa i cSa v i n gsa ndMo r t g ag eBa nk ,I n c . ( PSMB)al o ani nt h ea mo un to fP1 , 5 00 , 0 00 . 0 0a sev i d en c edbyaLo anAg r e eme nt .Ass e c ur i t y t her ef or ,GCIe x ec ut edi nf a v oro fPSMBs i x( 6)pr omi s s or yno t es 6i nt heaggr egat eamountof P1, 5 00 , 00 0. 0 0a swel l a saDe edofRe al Es t a t eMo r t g ag eo v erapa r c el o fl an dc o v er edb y T r ans f erCer t i fi cat eofTi t l e( TCT)No.308475. 7Asaddi t i onal s ec ur i t y ,pet i t i oner sFr anc i s coSi er r a, Ros ar i oSi er r a ,a ndSp ou se sFe l i xGa t l ab ay a na ndSal o meSi e r r amo r t g age df ou r ( 4 )p ar c e l sof l andi nAnt i pol oCi t y . Ev ent ual l y ,GCIdef aul t edi nt hepa ymentofi t sl oant oPSMB,t her ebypr ompt i ngt hel at t ert o ex t r aj udi c i al l yf or ec l os et hemor t gageont hes ubj ec tpr oper t i es .Si nc epet i t i oner sf ai l edt or edeem t hes ubj ec tpr oper t i eswi t hi nt her edempt i onper i od,t hei rc er t i fi cat esoft i t l ewer ec anc el l edand newoneswer ei ss uedi nPSMB sna me. ’

Pet i t i oner sav er r edt hatunderpr es s i ngneedofmone y ,wi t hv er yl i mi t ededuc at i onandl ac ki ng pr operi ns t r uc t i ons ,t he yf el l pr e yt oagr oupwhomi s r epr es ent edt oha v ec onnec t i onswi t hSumma Bankand,t hus ,c oul dhel pt hem s ec ur eal oan.Pet i t i oner sl i k ewi s el ament edt hatt he ywer eno t f ur ni s hedc opi esoft hel oanandmo r t g agedoc ument s ,orno t i fi ed/ appr i s edoft heas s i gnmentt o PSMB,r ender i ngt hem unabl et oc ompl ywi t ht hei robl i g at i onsundert hes ubj ec tdeed.The yf ur t her c l ai medt hatt he ywer enotf ur ni s hedac op yoft hes t at ementofac countnorac opyoft hepet i t i on f orf or ec l os ur epr i ort ot hepr ec i pi t at eex t r aj udi c i al f or ec l os ur eandauc t i ons al ewhi c hf ai l edt o c ompl ywi t ht hepos t i ngandnot i c er equi r ement s . 22I nl i ghtoft hef or egoi ng,pet i t i oner spr ay edt hat t her eal es t at emor t gageandt hes ubs equentf or ec l os ur epr oc eedi ngs ,andal l der i v at i v et i t l esand

r i ght sar i s i ngt her ef r om bedec l ar ednul l andv oi dabi ni t i o,andt hatt hes ubj ec tpr oper t i esbe r e co nv e y edba ckt ot h em,wi t hf u r t he rpr a y erf o rc ompe ns at or ya ndex e mp l ar yd ama ge s,an d a t t o r n e ysf ees . ’

PSMBmai nt ai nedt hat :( a)i tac t edi ngoodf ai t hwi t hr es pec tt ot hes ubj ec tt r ans ac t i onsandt hat pet i t i oner s ac t i ons houl dbedi r ec t edag ai ns tt hegr oupwhodec ei v edt hem; 27( b )t hes ubj ec t pr oper t i eswer emor t g agedt osec ur eanobl i gat i onco v er edbyt hel oanagr eementwi t hGCI ; 28( c ) t hemor t gagewasv al i d,ha vi ngbeendul ys i gnedb ype t i t i oner sbef or eanot ar ypubl i c ; 29( d)t he f or ec l os ur epr oc eedi ngswer er egul ar ,ha vi ngc ompl i edwi t ht hef or mal i t i esr equi r edb yl a w; 30and ( e)pet i t i oner sal l owedt i met opas swi t houtpur s ui ngt hei rpur por t edr i ghtagai ns tSummaBank and/ orPSMB. ’

I SSUE:1.WHETHERORNOTPETI TI ONERSAREMEREACCOMODATI ON MORTGAGAGORS 2.W/ NTHEACTI ONHASPRESCRI BEDANDBARREDBYLACHES HELD: Pet i t i oner sc l ai m ofl ac kof" pr operi ns t r uc t i onont hei nt r i c ac i esi ns ec ur i ng[ t he]l oanf r om t he bank "i sbel i edbyt hef ac tt hatpet i t i oner sFr anc i s coandRos ar i oSi er r ahadpr ev i ous l ymor t gaged t wo( 2)oft hes ubj ec tpr oper t i est wi c et ot heRur al BankofAnt i pol o. Mor eov er ,pet i t i oner sdi dnot : ( a)demandf oran yl oandoc umentc ont ai ni ngt hedet ai l soft het r ans ac t i on,and( b)off ert opa yt he pur por t edpar t i al l oanpr oc eedst he yr ec ei v edatan yt i me,c ompl ai ni ngt her eofonl yi n1991when t heyfil edt hei rc ompl ai nt .I ndeed,t hef or egoi ngc i r c ums t anc escl ear l yshowt hatpet i t i oner sar e a war et hatt he ywer emer eac c ommodat i onmor t g agor s ,debunk i ngt hei rc l ai mt hatmi s t ak evi t i at ed t hei rc ons entt ot hemor t gage. ’

Th er ebe i n gv a l i dc on se nto nt hepa r tofp et i t i o ner st oa cta sa cc o mmo dat i o nmo r t g ago r s .Asme r e ac commodat i onmor t gagor s ,pet i t i oner sar enotent i t l edt ot hepr oc eedsoft hel oan,norwer e r equi r edt obef ur ni s hedwi t ht hel oandoc ument s 53orno t i c eoft hebor r o wersdef aul ti npay i ngt he pr i nc i pal ,i nt er es t s ,penal t i es ,andot herc har gesonduedat e, 54oroft heex t r aj udi c i al f or ec l os ur e pr oc eedi ngs ,unl es ss t i pul at edi nt hes ubj ec tdeed. 55Asj ur i s pr udenc es t at es ,anac c ommodat i on mor t gagori sat hi r dper s onwhoi snotadebt ort oapr i nc i pal obl i gat i onbutmer el ysec ur esi tby mor t g agi nghi sorhero wnpr oper t y . ’

Anentt he2ndi s sue,Pet i t i oner sc ont endst hatt heappl i c abl epr ov i s i oni st het eny earpr es cr i pt i v e per i odofmor t gageac t i onsunderAr t i c l e1142o ft heCi v i l Code.Bas edoncas el aw,a" mor t g age ac t i on"r ef er st oanac t i ont oenf or c ear i ghtnec es sar i l yar i s i ngf r om amor t gage. 59I nt hepr es ent c as e,pet i t i oner sar enot" enf or c i ng" t hei rr i ght sundert hemor t gagebutar e,i nf ac t ,s eek i ngt obe r el i ev edt her ef r om. Thec ompl ai ntfi l edbypet i t i oner si s ,t her ef or e,notamor t gageac t i onas c ont empl at edunderAr t i c l e1142. Si nc et hec ompl ai ntf orannul mentwasanc hor edonac l ai m ofmi s t ak e,i . e. ,t hatpet i t i oner sar et he bor r o wer sundert hel oansec ur edbyt hemor t g age,t heac t i onshoul dha v ebeenbr oughtwi t hi n( 4)

y ear sf r om i t sdi s c ov er y . Thedi s c ov er yoft hea v er r edmi s t ak es houl dappeart ober ec k onedf r om J u ne19 ,1 98 4. Ast her ec or dsdi s c l os e,des pi t enot i c eonJune19,1984oft hesc hedul edf or ec l os ur es al e, pet i t i oner s ,f orune xpl ai nedr eas ons ,f ai l edt oi mpugnt her eal es t at emor t gageandoppos et he publ i cauc t i ons al ef oraper i odofmor et hans ev en( 7)y ear sf r om s ai dnot i c e.