Pudadera vs. Magallanes, 2010 - Double Sale

One who buys a property with knowledge of facts which should put him upon inquiry or investigation as to a possible defect in the title of the seller acts in bad faith.

FIRST DIVISION SPOUSES RAMY ZENAIDA PUDADERA,  Peti  Petiti tion oner ers, s,

and

G.R. No. 170073 Present:

- versus IRENEO MAGALLANES and th !at DAISY TERESA  "ORTEL MAGALLANES #$%#t& #$%#t&t$t t$td d %' h( )h&!d )h&!d(n (n,, NELLY M. MAR*UEZ, ELISEO ELI SEO MAGALL MAGALLANE ANES S and and  ANGE  ANGEL L MAG MAGAL ALLA LANE NES, S,  Resp  Respon onde dents nts..

CORONA, C. J., Chairperson, VELASCO, JR., LEONARDO-DE CASTRO, DEL CASTILLO, and  and  PEREZ, JJ PEREZ, JJ.. Promulgte!: Promulgte!: O"to#er $%, &'$'

(-------------------------------------------------------------------(

DE"ISION DEL "ASTILLO, J  "ASTILLO, J .+ .+ One )s "ons)!ere!  #u*er )n #! +)t not onl* en e ur"ses rel estte )t /nole!ge o+  !e+e"t or l"/ o+ t)tle )n )s seller #ut lso en e s /nole!ge o+ +"ts )" soul! ve lerte! )m to "on!u"t +urter )n0u)r* or )nvest)gt)on. T)s Pet)t)on +or Rev)e on Certiorari see/s to reverse n! set s)!e te Court o+ Ael1s 2CA1s3 June 4, &''5 De")s)on 6$6$77 )n CA-8.R. CV No. 55%5', 6&77  )"  )" ++) ++)rm rme! e! te te Se Set tem em#e #err 9, $ $4 4 De") De")s) s)on on6&  o+ te Reg)onl Tr)l Court 2RTC3 o+ Ilo)lo C)t*, C)t*, ;rn" 9 )n C)v)l Cse No. No. &&&9r" $9, $?, L=ro sol!  gllnes 2>gllnes3 +or te sum o+P&&,'''.'' un!er  @Contr"t To Sle6gllnes. Tere+ter, >gllnes ! te lot +en"e! n! !  n) ut "onstru"te! tereon. Te oter ort)ons o+ Lot $$-E ere, l)/e)se, sol! #* L=ro to severl  #u*ers, nmel*, El)=#et Nor!, Jose >"lu!, Jose >elo"oton, Non)lon Este*, Angeles Plm, >e!)n An!u*n, Evngel)n Ans n! >r)o 8on=les. 647 On Jul* $gllnes ursue! er "l)ms g)nst Souses Nt)v)!! #*  +)l)ng  ")v)l "se +or se")+)" er+ormn"e, )nun"t)on n! !mges. On Setem#er &, $%9, >gllnes "use! te nnott)on o+  not)"e o+ lis  pendens t te #"/ o+ TCT No. T-5%4'4. 6$97 Su#se0uentl*, Souses Nt)v)!! su#!)v)!e! Lot $$-E-% )nto to, Lot $$-E-%-A n! Lot $$-E-%-;, e" "ont)n)ng gllnes s lter !)sm)sse! #* te tr)l "ourt +or l"/ o+ ur)s!)"t)on s er n Or!er !te! Setem#er $4, $%5 )" s )ns"r)#e! t te #"/ o+ TCT No. T-5%4'4 on Jul* ?, $%4. 6$r)o 8on=les tt et)t)oners ! r)or /nole!ge o+ te sle  #eteen er n! L=ro tt se en"lose! Lot $$-E-%-A )t  +en"e, "onstru"te!  ouse n! "use! so)l +)ll)ngs on s)! lot )" et)t)oners ere re o+ n! tt se s #een )n "tul ossess)on o+ te s)! lot +rom >r" $$, $? u to te resent. Se r*e! tt TCT No. T-?&?9< )n te nme o+  et)t)oner Rm* Pu!!er #e "n"elle! n!  ne one #e )ssue! )n er nme. Dur)ng te en!en"* o+ t)s "se, >gllnes sse! * n! s su#st)tute! #* er e)rs, ere)n reson!ents.  Ruling of the Regional Trial Court  On Setem#er 4, $4, te tr)l "ourt ren!ere! u!gment )n +vor o+  reson!ents, viz :  HFEREORE, rem)ses "ons)!ere!, u!gment )s ere#* ren!ere! )n +vor o+ te 6reson!ents7 n! g)nst te 6et)t)oners7: $. De"lr)ng te 6reson!ent7 D)s* Teres Cortel >gllnes, su#st)tute! #* er e)rs, Nell* >. >gllnes, El)seo >gllnes n! Angel >gllnes n! Ireneo >gllnes, s te r)gt+ul oners o+ Lot $$-E-%-A, Ps!-'4-''&59, )" )s no "overe! #* Trns+er Cert)+)"te o+ T)tle No. T?&?9gllnes #ougt te su#e"t lot +rom L=ro, >gllnes )mme!)tel* too/ ossess)on o+ te lot, n! "onstru"te!  +en"e )t #r#e! )re roun! te roert*. Te resen"e o+ tese stru"tures soul!, tus, ve lerte! et)t)oners to te oss)#le +l )n te t)tle o+ te Souses Nt)v)!! "ons)!er)ng tt et)t)oners v)s)te! te su#e"t lot severl t)mes #e+ore ur"s)ng te sme. Ne)ter "n et)t)oners "l)m tt te t)tle o+  te su#e"t lot s "len "ons)!er)ng tt  not)"e o+ lis pendens s nnotte! tereon )n "onne"t)on )t  ")v)l "se tt >gllnes +)le! g)nst Souses Nt)v)!! )nvolv)ng te su#e"t lot. Altoug te not)"e o+ lis pendens s su#se0uentl* "n"elle! on Jul* ?, $%4, te !ee! o+ sle #eteen et)t)oners n! Souses Nt)v)!! s e(e"ute! on Jul* 9, $%4 or +our !*s #e+ore s)! "n"ellt)on. Tus, et)t)oners ! not)"e tt te su#e"t roert* s un!er l)t)gt)on. S)n"e reson!ents re te r)gt+ul oners o+ te su#e"t lot, et)t)oners soul! e(e"ute  !ee! o+ "onve*n"e )n +vor o+ te +ormer so tt  ne t)tle m* #e )ssue! )n te nme o+ te reson!ents.  Ruling of the Court of Appeals On June 4, &''5, te CA ren!ere! te ss)le! De")s)on:

CIVIL LAW BAR 2015

HENZEN CAMERO

 -EREFORE, )t ll te +orego)ng, te !e")s)on o+ te Reg)onl Tr)l Court, ;rn" 9, Ilo)lo C)t* !te! Setem#er 9, $4 )n ")v)l "se no. &&&9< +or Gu)et)ng o+ T)tle, Oners) n! Dmges )s ere#* AFFIRMED &n toto.  All oter "l)ms n! "ounter"l)ms re ere#* !)sm)sse! +or l"/ o+  +"tul n! legl #s)s. No ronoun"ement s to "ost. SO ORDERED.

6&$7

In ++)rm)ng te rul)ng o+ te tr)l "ourt, te ellte "ourt resone! tt un!er te rule on !ou#le sle t +)n!s relevn"e )s eter te se"on! #u*er reg)stere! te se"on! sle )n goo! +)t, tt )s, )tout /nole!ge o+ n* !e+e"t )n te t)tle o+ te seller. Pet)t)oners1 re!e"essor-)n-)nterest, Souses Nt)v)!!,  ere not reg)strnts )n goo! +)t. Hen >gllnes +)rst #ougt te su#e"t lot +rom L=ro on Jul* &$, $%', >gllnes too/ ossess)on o+ te sme n! ! )t +en"e! n! +)lle! )t so)l. T)s s m!e * e! o+ te Novem#er &9, $%$ Dee! o+ Sle #eteen L=ro n! Souses Nt)v)!!. H)t so mu" movement n! trns"t)ons )nvolv)ng te su#e"t lot n! g)ven tt L*n L=ro-Nt)v)!! )s te n)e"e o+ L=ro, te ellte "ourt +oun! )t r! to #el)eve tt te Souses Nt)v)!! ere "omletel* unre o+ n* "ontrovers* over te su#e"t lot. Te CA, l)/e)se, gree! )t te tr)l "ourt tt t te t)me et)t)oners "0u)re! te su#e"t lot +rom Souses Nt)v)!! on Jul* 9, $%4,  not)"e o+ lis  pendens s st)ll nnotte! t te #"/ o+ TCT No. T-5%4'4 !ue to  ")v)l "se +)le! #* >gllnes g)nst Souses Nt)v)!!. Altoug te "se s su#se0uentl* !)sm)sse! #* te tr)l "ourt +or l"/ o+ ur)s!)"t)on, te not)"e o+ lis  pendens s st)ll su#s)st)ng t te t)me o+ te sle o+ te su#e"t lot #eteen Souses Nt)v)!! n! et)t)oners on Jul* 9, $%4 #e"use te lis  pendens not)"e s "n"elle! onl* on Jul* ?, $%4. Conse0uentl*, et)t)oners "nnot #e "ons)!ere! #u*ers n! reg)strnts )n goo! +)t #e"use te* ere re o+  +l )n te t)tle o+ te Souses Nt)v)!! r)or to te)r ur"se tereo+. I##$# CIVIL LAW BAR 2015

HENZEN CAMERO

$.

Te Court o+ Aels erre! )n not "ons)!er)ng te u!)")l !m)ss)ons o+  >gllnes s ell s te !o"umentr* ev)!en"e so)ng tt se s "l)m)ng  !)++erent lot, Lot No. $$-E-%-;, n! not Lot $$-E-%-A )" )s reg)stere! )n te nme o+ et)t)oners un!er TCT No. T-?&?9gllnes #ougt +rom L=ro. As er >gllnes1 test)mon* )n te ee"tment "se, se l)e! +or te =on)ng erm)t +or Lot $$-E-%-; n! not Lot $$-E-% A. urter, te t( !e"lrt)ons su#m)tte! )n ev)!en"e tere)n soe! tt >gllnes )! +or te rel estte t(es o+ Lot $$-E-%-; n! not Lot $$-E-%-A. Fen"e, tere )s no "on+l)"t o+ "l)ms s)n"e et)t)oners re ssert)ng te)r r)gts over Lot $$-E-%-A )le reson!ents "l)m oners) over Lot $$-E-%-;. >oreover, ssum)ng tt tere s  !ou#le sle, te sme !)! not )nvolve et)t)oners. Te +)rst sle s #eteen L=ro n! >gllnes )le te se"on! sle s #eteen L=ro n! Souses Nt)v)!!. It s erroneous +or te ellte "ourt to "on"lu!e tt L*n Nt)v)!! s )n #! +)t s)ml*   #e"use se )s te n)e"e o+ L=ro. Te Souses Nt)v)!! ere not )mle!e! )n t)s "se n! "nnot #e "rge! s #u*ers )n #! +)t )tout g)v)ng tem te)r !* )n "ourt. Pet)t)oners "l)m tt reson!ents soul! +)rst )mugn te vl)!)t* o+ Souses Nt)v)!!1s t)tle #* rov)ng tt te ltter "te! )n #! +)t en te* #ougt te su#e"t lot +rom L=ro. Pet)t)oners ver tt te ev)!en"e on re"or! +)le! to over"ome te resumt)on o+ goo! +)t. Cons)!er)ng tt Souses Nt)v)!! ere #u*ers )n goo! +)t n! "ons)!er)ng +urter tt et)t)oners1 t)tle s !er)ve! +rom L=ro, et)t)oners soul!, l)/e)se, #e "ons)!ere! #u*ers )n goo! +)t. CIVIL LAW BAR 2015

HENZEN CAMERO

Pet)t)oners +urter rgue tt te rule on not)"e o+ l)s en!ens s )mroerl*  l)e! )n t)s "se. Te tr)l "ourt1s or!er !)sm)ss)ng te ")v)l "se +)le! #* >gllnes g)nst Souses Nt)v)!! ! long #e"ome +)nl n! e(e"utor* #e+ore et)t)oners  #ougt te su#e"t lot +rom Souses Nt)v)!!. H)le )t )s true tt te or!er o+  !)sm)ssl s nnotte! t te #"/ o+ TCT No. T-5%4'4 onl* on Jul* ?, $%4 or +our !*s +ter te sle #eteen Souses Nt)v)!! n! et)t)oners, te "n"ellt)on o+ te not)"e o+ l)s en!ens s  mere +orml)t*. In legl "ontemlt)on, te not)"e s, t te t)me o+ te sle on Jul* 9, $%4, )ne++e"t)ve. C)t)ng Souses Po Lm v. Court o+   Aels,6&97 et)t)oners "onten! tt te ten e()st)ng "ourt or!er +or te "n"ellt)on o+ te l)s en!ens not)"e t te t)me o+ te sle m!e tem #u*ers )n goo! +)t. )nll*, et)t)oners 0uest)on te r! o+ ttorne*1s +ees )n +vor o+ reson!ents +or l"/ o+ #s)s. Pet)t)oners "l)m tt te* soul! #e r!e! !mges #e"use reson!ents unl+ull* revente! tem +rom t/)ng ossess)on o+ te su#e"t lot. Reson!ents1 Arguments Reson!ents "ounter tt te* re )n ossess)on o+, n! "l)m)ng oners) over te su#e"t lot, ).e., Lot $$-E-%-A, n! not Lot $$-E-%-;. Te "l)m o+ et)t)oners tt te su#e"t lot )s !)++erent +rom t reson!ents ssert to #e l+ull* te)rs )s, tus, m)sle!)ng. Te su#e"t lot s "0u)re! #* reson!ents1 re!e"essor-)n-)nterest, >gllnes, en L=ro sol! te sme to >gllnes troug  "ontr"t to sell )n $? n!  !ee! o+ sle )n $%' +ter +ull *ment o+ te montl* )nstllments.  A+ter e(e"ut)ng te "ontr"t to sell, >gllnes )mme!)tel* too/ ossess)on o+  te su#e"t lot "onstru"te!  +en"e )t #r#e! )re n! +)lle! )t u )t so)l )n rert)on +or te "onstru"t)on o+ "on"rete ouses. Se lso #u)lt  n) ut n! st*e! tere)n s)n"e $? u to er !em)se. Reson!ents ems)=e tt uon *ment o+ te +ull ur"se r)"e un!er te "ontr"t to sell n! te e(e"ut)on o+ te !ee! o+ sle, >gllnes un!ertoo/ stes to rote"t er r)gts !ue to te re+usl o+ L=ro to surren!er te moter t)tle o+ te su#e"t lot. >gllnes re"or!e! n !verse "l)m t te #"/ o+ te moter t)tle o+ te su#e"t lot n! n )n)t)l not)"e o+ l)s en!ens tereon. Se ten +)le!  ")v)l "se g)nst L=ro, n!, lter on, g)nst L=ro1s su""essors-)n-)nterest, Souses Nt)v)!!, )" resulte! )n te )ns"r)t)on o+  not)"e o+ l)s en!ens on TCT No. 5$&5' n! TCT No. T-5%4'4. Hen et)t)oners #ougt te

CIVIL LAW BAR 2015

HENZEN CAMERO

su#e"t lot +rom Souses Nt)v)!! on Jul* 9, $%4, te s)! not)"e o+ l)s en!ens s su#s)st)ng #e"use te "ourt !)sm)ssl o+ s)! "se s )ns"r)#e! on te t)tle onl* on Jul*  ?, $%4. Pet)t)oners "nnot, tere+ore, #e "ons)!ere! #u*ers )n goo! +)t. Our Rul)ng

 He ++)rm te !e")s)on o+ te CA )t mo!)+)"t)ons.

Pet)t)oners n! reson!ents re "l)m)ng oners) over te sme lot.

Pet)t)oners "onten! tt te* re "l)m)ng oners) over Lot $$-E-%-A )le >gllnes1 "l)m )s over Lot $$-E-%-;. Tus, tere )s no "on+l)"t #eteen te)r "l)ms.

Te rgument )s se")ous.

It )s "ler tt >gllnes )s "l)m)ng oners) over Lot $$-E-%-A n! not Lot $$-E-%;. In er Anser to te Coml)nt, se llege! tt se )s @te #solute l+ul oner o+ Lot $$-E-%-A.6&gllnes )nvolv)ng te su#e"t lot, te tr)l "ourt note!:

 At te re-tr)l "on+eren"e el! on June $9, $', #ot rt)es gree! to  relo"t)on surve* o+ te lot ereuon te Court "omm)ss)one! te ;ureu o+ Ln!s to un!ert/e  relo"t)on surve* o+ te lot )n 0uest)on.

On O"to#er $, $', te ;ureu o+ Ln!s tru Engr. )lomeno P. D+lo su#m)tte! te relo"t)on surve* reort )t te +ollo)ng +)n!)ngs: ( ( (

((((

CIVIL LAW BAR 2015

HENZEN CAMERO

5. Tt )t s s"ert)ne! )n our )nvest)gt)on tt te ent)re lot o""u)e! #* 6>gllnes7 2lot $$-E-%-A3 )s te ver* sme lot "l)me! #* te 6et)t)oners7, s o)nte! out #* )ts reresentt)ve.6&57 2Ems)s sul)e!.3

 A+ter los)ng )n te +ores)! +or")#le entr* "se, et)t)oners "ommen"e! te su#e"t "t)on +or 0u)et)ng o+ t)tle n! re"over* o+ oners) over Lot $$-E-%-A. Pl)nl*, #ot rt)es re ssert)ng oners) over te sme lot, ).e. Lot $$-E-%-A, not)tstn!)ng te error )n te entr)es m!e #* >gllnes )n er =on)ng l)"t)on n! t( !e"lrt)on +orms. Te not)"e o+ l)s en!ens t te #"/ o+ te moter t)tle o+ te su#e"t lot s lre!*  or!ere! "n"elle! t te t)me o+ te sle o+ te su#e"t lot to et)t)oners, en"e, s)! not)"e "nnot #e m!e  #s)s +or +)n!)ng et)t)oners s #u*ers )n #! +)t.

 A not)"e o+ l)s en!ens t te #"/ o+ te moter t)tle 2).e., TCT No. T-5%4'43 o+  Lot $$-E-%-A s )ns"r)#e! on Setem#er &, $%9 )n "onne"t)on )t te ")v)l "se +or se")+)" er+ormn"e, )nun"t)on n! !mges )" >gllnes +)le! g)nst Souses Nt)v)!!. T)s "se s su#se0uentl* !)sm)sse! #* te tr)l "ourt +or l"/ o+   ur)s!)"t)on )n n Or!er !te! Setem#er $4, $%5 )" s lre!* #e"ome +)nl n! e(e"utor* s er te Cert)+)"t)on !te! June $4, $%4 )ssue! #* te ;rn" Cler/ o+  Court o+ te RTC o+ Ilo)lo C)t*, ;rn" 99.6&47 Te +ores)! "ourt !)sm)ssl s,

oever, )ns"r)#e! onl* on Jul* ?, $%4 or tree !*s +ter te sle o+ te su#e"t lot to et)t)oners.6&?7 ;se! on tese est#l)se! +"ts, et)t)oners "orre"tl* rgue tt te s)! not)"e o+ lis pendens "nnot #e m!e te #s)s +or ol!)ng tt te* re #u*ers )n #! +)t. In!ee!, t te t)me o+ te sle o+ te su#e"t lot #* Souses Nt)v)!! to et)t)oners on Jul* ?, $%4, te ")v)l "se +)le! #* >gllnes g)nst Souses Nt)v)!! ! long #een !)sm)sse! +or l"/ o+ ur)s!)"t)on n! te s)! or!er o+ !)sm)ssl ! #e"ome +)nl n! e(e"utor*. In Spouses Po Lam v. Court  of Appeals,6&%7 te #u*ers s)m)lrl* #ougt  roert* )le  not)"e o+ lis  pendens s su#s)st)ng on )ts t)tle. Noneteless, e rule! tt te #u*ers "nnot #e "ons)!ere! )n #! +)t #e"use te llege! +l, te not)"e o+ lis CIVIL LAW BAR 2015

HENZEN CAMERO

 pendens, s lre!* #e)ng or!ere! "n"elle! t te t)me o+ te sle n! te "n"ellt)on o+ te not)"e term)nte! te e++e"ts o+ su" not)"e.6&7 T)s not)tstn!)ng, et)t)oners "nnot #e "ons)!ere! #u*ers )n goo! +)t #e"use, s )ll #e !)s"usse! ereun!er, te* ere re o+ other ")r"umstn"es o)nt)ng to  oss)#le +l )n te t)tle o+ Souses Nt)v)!! r)or to te sle o+ te su#e"t lot. Des)te tese ")r"umstn"es, et)t)oners !)! not t/e stes to s"ert)n te sttus o+ te su#e"t lot #ut )nste! ro"ee!e! )t te ur"se o+ te sme. One who bus a propert with !nowled"e of fa#ts whi#h should put him upon in$uir or investi"ation as to a possible defe#t in the title of the seller a#ts in bad   faith.

Lot $$-E-%, o+ )" te su#e"t lot 2i.e., Lot $$-E-%-A3 +orms rt, s sol! #* L=ro to to !)++erent #u*ers. As nrrte! erl)er, Lot $$-E-% )s  ort)on o+ Lot $$-E,  5,999 s0. m. lot "overe! #* TCT No. T-5$&5'. L=ro su#!)v)!e! te s)! lot n! sol! ort)ons tereo+ to severl #u*ers. One o+ tese  #u*ers s >gllnes o ur"se!  r" $9, $?. Te metes n! #oun!s o+ t)s lot ere lter !el)nete! )n  @Prt)t)on  Agreement !te! Jul* $. ;to, Jr. Re"or!s, . &?$-&%& enne! #* Ju!ge Jose 8. A#!ll.  Rollo, . & enne! #* Asso")te Just)"e Pm)o A. A#r)ntos n! "on"urre! )n #* Asso")te Just)"es V)"ente L. K n! Rmon >. ;to, Jr. Re"or!s, . &% soul! #e "ontr"t to sell s stte! )n te #o!* o+ s)! "ontr"t n! s er te terms tereo+. I!. t &. I!. t 9$-9&. I!. I!. t 9