Albeit Given Several Opportunities And/or Extensions To Exercise The Option
Albeit Given Several Opportunities And/or Extensions To Exercise The Option
Albeit Given Several Opportunities And/or Extensions To Exercise The Option
136368
secure in their names TCT No. T-134470. This development prompted the
heirs of Tan, who were to be later substituted by Jaime V. Tan, Jr. (Tan, Jr.)
as plaintiff, to file a supplemental complaint.
The intervening legal tussles are not essential to this narration. What is
material is that on June 4, 1991, Branch 11 of the Regional Trial Court of
Davao City rendered judgment finding for Tan, Jr., as plaintiff therein. The
dispositive portion of the decision reads:.
'WHEREFORE, judgment is rendered:
1. The Deed of Absolute Sale (Exhibits B, B-1) is, in accordance with
the true intention of the parties, hereby declared and reformed an
equitable mortgage;
2. The plaintiff is ordered to pay the defendants within 120 days
after the finality of this decisionP59,200 plus interest at the rate of
12% per annum from May 2, 1988, the date the complaint was filed,
until paid;
3. In order to avoid multiplicity of suits and to fully give effect to the
true intention of the parties, upon the payment of the aforesaid
amount, TCT No. T-134470 in the name of defendants Jose
Magdangal and Estrella Magdangal (Exh. 13) and shall be deemed
canceled and null and void and TCT No. T-72067 in the name of
Jaime C. Tan and Praxedes Valles Tan (Exh. A) be reinstated).
No pronouncement as to costs.
SO ORDERED. (Annex 'B', Petition; Emphasis added).'
From the above, the Magdangals appealed to this Court in CA-G.R. CV
No. 33657.
In a decision promulgated on September 28, 1995, this Court, thru its then
Special Third Division, affirmedin toto the appealed decision of the lower
court. Copy of this affirmatory judgment was each received by the
Magdangals and Tan, Jr. on October 5, 1995.
On March 13, 1996, the Clerk of this Court entered in the Book of Entries
of Judgment the Decision in CA-G.R. CV No. 33657 and issued the
corresponding Entry of Judgment which, on its face, stated that the said
Decision 'has on October 21, 1995 become final and executory' (Annex 'L',
Petition; Emphasis added).
On March 21, 1996, the Magdangals filed in the lower court a MOTION
FOR CONSOLIDATION AND WRIT OF POSSESSION, therein alleging
that they did not appeal from the aforesaid decision of this Court, adding
'[T]hat the appealed judgment of the Court of Appeals has become final
and executory 15 days from October 5, 1995 or up to October 20, 1995,
which the 120 days redemption period commences. And noting that the
redemption period has expired without Tan, Jr. exercising his option, the
Magdangals thus prayed that the title 'in the name of Jaime C. Tan and
Praxedes Tan be consolidated and confirmed in the name of the
(Magdangals) x x x and pending such issuance, a writ of possession be
ordered issued (Annex "C", Petition).
1wphi1.nt
In opposition to this motion (Annex 'F', Petition), Tan, Jr. alleged, among
other things, that until an entry of judgment has been issued by the Court
of Appeals and copy thereof furnished the parties, the appealed decision of
the court a quo in this case cannot be considered final and executory.
Pressing the point, Tan, Jr., citing Cueto vs. Collantes, infra., would then
assert that the period of redemption on his part commenced to run from
receipt of entry of judgment in CA-G.R. CV No. 33657.
Meanwhile, Tan, Jr. via a motion for execution dated March 27, 1996,
which he filed directly with this court, prayed this court to direct the court a
quo to issue the corresponding writ of execution in Civil Case No. 1904988. In a related move, Tan, Jr. filed on April 16, 1996, a MANIFESTATION
AND MOTION therein advising the court a quo of his intention to redeem
the property in question and of the fact that, on such date, he has
deposited with its clerk of court the repurchase price, plus interest, as
required by its original decision. By way of relief, Tan, Jr. prayed that the
Magdangals be ordered to claim the amount thus deposited and the
Register of Deeds of Davao City, to reinstate the title of Jaime Tan and
Praxedes Tan.
Jointly acting on the aforementioned MOTON FOR CONSOLIDATION
AND WRIT OF POSSESION of the Magdangals (Annex 'C', Petition),
MANIFESTATION AND MOTION of Tan, Jr. (Annex 'I', Petition), the courta
quo presided by the respondent judge, came out with the first challenged
order of June 10, 1996 (Annex 'N', Petition) dispositively reading, as
follows:
law and was in effect made a part of section 2 of Rule 68 of the 1997 Rules
of Civil Procedure on Foreclosure of Mortgage.
IV. The St. Dominic vs. Intermediate Appellate Court, 138 SCRA 242 case
is not applicable to the case at bar; on the other hand the ruling
in Gutierrez Hermanos vs. de La Riva, 46 Phil. 827, applies.
V. Equity considerations justify giving due course to this
petition."4 (emphasis ours)
We will immediately resolve the key issue of what rule should govern the finality
of judgment favorably obtained in the trial court by the petitioner.
The operative facts show that in its Decision of June 4, 1991, the trial court held
that: (1) the contract between the parties is not an absolute sale but an equitable
mortgage; and (2) petitioner Tan should pay to the respondents Magdangal
"within 120 days after the finality of this decision P59,200.00 plus interest at the
rate of 12% per annum from May 2, 1988, the date the complaint was filed, until
paid."5
On September 28, 1995 in CA-G.R. CV No. 33657, the Special Third Division of
the Court of Appeals affirmed the decision of the trial court in toto. Both parties
received the decision of the appellate court on October 5, 1995. On March 13,
1996, the clerk of court of the appellate court entered in the Book of Entries of
Judgement the decision in CA-G.R. CV No. 33657 and issued the corresponding
Entry of Judgment which, on its face, stated that the said decision "has on
October 21, 1995 become final and executory."6
The respondents Magdangal filed in the trial court a Motion for Consolidation and
Writ of Possession.7 They alleged that the 120-day period of redemption of the
petitioner has expired. They reckoned that the said period began 15 days after
October 5, 1995, the date when the finality of the judgment of the trial court as
affirmed by the appellate court commenced to run.
On the other hand, petitioner filed on March 27, 1996 a motion for execution in
the appellate court praying that it "direct the court a quo to issue the
corresponding writ of execution in Civil Case No. 19049-88."8 On April 17, 1996,
petitioner deposited with the clerk of court the repurchase price of the lot plus
interest as ordered by the decision.
On June 10, 1996, the trial court allowed the petitioner to redeem the lot in
question. It ruled that the 120-day redemption period should be reckoned from
the date of Entry of Judgment in the appellate court or from March 13, 1996.9 The
redemption price was deposited on April 17, 1996. As aforestated, the Court of
Appeals set aside the ruling of the trial court.
From 1991-1996, the years relevant to the case at bar, the rule that governs
finality of judgment is Rule 51 of the Revised Rules of Court. Its sections 10 and
11 provide:
"SEC. 10. Entry of judgments and final resolutions. - If no appeal or motion
for new trial or reconsideration is filed within the time provided in these
Rules, the judgment or final resolution shall forthwith be entered by the
clerk in the book of entries of judgments. The date when the judgment or
final resolution becomes executory shall be deemed as the date of its
entry. The record shall contain the dispositive part of the judgment or final
resolution and shall be signed by the clerk, with a certificate that such
judgment or final resolution has become final and executory. (2a, R36)
SEC. 11. Execution of judgment. - Except where the judgment or final
order or resolution, or a portion thereof, is ordered to be immediately
executory, the motion for its execution may only be filed in the proper court
after its entry.
In original actions in the Court of Appeals, its writ of execution shall be
accompanied by a certified true copy of the entry of judgment or final
resolution and addressed to any appropriate officer for its enforcement.
In appealed cases, where the motion for execution pending appeal is filed
in the Court of Appeals at a time that it is in possession of the original
record or the record on appeal, the resolution granting such motion shall
be transmitted to the lower court from which the case originated, together
with a certified true copy of the judgment or final order to be executed, with
a directive for such court of origin to issue the proper writ for its
enforcement."
This rule has been interpreted by this Court in Cueto vs. Collantes as follows:10
"The only error assigned by appellants refer to the finding of the lower
court that plaintiff can still exercise his right of redemption notwithstanding
the expiration of the 90-day period fixed in the original decision and,
therefore, defendants should execute the deed of reconveyance required
in said decision. Appellants contend that, the final judgment of the Court of
Appeals having been entered on July 8, 1953, the 90-day period for the
exercise of the right of redemption has long expired, it appearing that
plaintiff deposited the redemption money with the clerk of court only on
October 17, 1953, or, after the expiration of 101 days. Appellee brands this
computation as erroneous, or one not in accordance with the procedure
prescribed by the rules of court.
Appellee's contention should be sustained. The original decision provides
that appellee may exercise his right of redemption within the period of 90
days from the date the judgment has become final. It should be noted that
appellee had appealed from this decision. This decision was affirmed by
the court of appeals and final judgment was entered on July 8, 1953. Does
this mean that the judgment became final on that date?
Let us make a little digression for purposes of clarification. Once a decision
is rendered by the Court of Appeals a party may appeal therefrom by
certiorari by filing with the Supreme Court a petition within 10 days from
the date of entry of such decision (Section 1, Rule 46). The entry of
judgment is made after it has become final, i.e., upon the expiration of 15
days after notice thereof to the parties (Section 8, Rule 53, as modified by
a resolution of the Supreme Court dated October 1, 1945). But, as Chief
Justice Moran has said, 'such finality *** is subject to the aggrieved party's
right of filing a petition for certiorari under this section,' which means that
'the Court of Appeals shall remand the case to the lower court for the
execution of its judgment, only after the expiration of ten (10) days from the
date of such judgment, if no petition for certiorari is filed within that period.'
(1 Moran, Comments on the Rules of Court, 1952 ed., p. 950) It would
therefore appear that the date of entry of judgment of the Court of
Appeals is suspended when a petition for review is filed to await the final
entry of the resolution or decision of the Supreme Court.
Since in the present case appellee has filed a petition for review within the
reglementary period, which was dismissed by resolution of July 6, 1953,
and for lack of a motion for reconsideration the entry of final
judgment was made on August 7, 1953, it follows that the 90-day period
within which appellee may exercise his right of redemption should be
counted from said date, August 7, 1953. And appellee having exercised
such right on October 17, 1953 by depositing the redemption money with
the clerk of court, it is likewise clear that the motion be filed for the exercise
of such right is well taken and is within the purview of the decision of the
lower court."11
On April 18, 1994, this Court issued Circular No. 24-94, viz:
"TO: COURT OF APPEALS, SANDIGANBAYAN, COURT OF TAX
APPEALS, REGIONAL TRIAL COURTS, METROPOLITAN TRIAL
refuses to act on the motion for execution or issue the writ therefor. On
motion in the same case while the records are still with the appellate court,
or even after the same have been remanded to the lower court, the
appellate court can direct the issuance of the writ of execution since such
act is merely in the enforcement of its judgment and which it has the power
to require."
It is evident that if we apply the old rule on finality of judgment, petitioner
redeemed the subject property within the 120-day period of redemption reckoned
from the appellate court's entry of judgment. The appellate court, however, did
not apply the old rule but the 1997 Revised Rules of Civil Procedure. In fine, it
applied the new rule retroactively and we hold that given the facts of the case at
bar this is an error.
There is no dispute that rules of procedure can be given retroactive effect. This
general rule, however, has well-delineated exceptions. We quote author Agpalo:13
"9.17. Procedural laws.
Procedural laws are adjective laws which prescribe rules and forms of
procedure of enforcing rights or obtaining redress for their invasion; they
refer to rules of procedure by which courts applying laws of all kinds can
properly administer justice. They include rules of pleadings, practice and
evidence. As applied to criminal law, they provide or regulate the steps by
which one who commits a crime is to be punished.
The general rule that statutes are prospective and not retroactive does not
ordinarily apply to procedural laws. It has been held that "a retroactive law,
in a legal sense, is one which takes away or impairs vested rights acquired
under laws, or creates a new obligation and imposes a new duty, or
attaches a new disability, in respect of transactions or considerations
already past. Hence, remedial statutes or statutes relating to remedies or
modes of procedure, which do not create new or take away vested rights,
but only operate in furtherance of the remedy or confirmation of rights
already existing, do not come within the legal conception of a retroactive
law, or the general rule against the retroactive operation of statutes." The
general rule against giving statutes retroactive operation whose effect is to
impair the obligations of contract or to disturb vested rights does not
prevent the application of statutes to proceedings pending at the time of
their enactment where they neither create new nor take away vested
rights. A new statute which deals with procedure only is presumptively
applicable to all actions - those which have accrued or are pending.
1wphi1.nt
Footnote
1
Rollo, p. 48.
Id., p. 58.
Rollo, p. 18.
Ibid.
Ibid.
Rollo, p. 59.
10
11
12
13
14