Intestate Estate of The Late Nimfa Sian Vs

Intestate Estate of the Late Nimfa Sian vs.
Philippine National Bank
Jan. 31, 2007 | CARPIO-MORALES, J | Direct attack
PETITIONERS: Estate of Nimfa Sian

RESPONDENTS: PNB
SUMMARY: Nimfa filed for cancellation of mortage liens on three properties against Maybank. PNB filed a motion for substitution
saying that they have legal interest over the properties because maybank executed a dation en pago in favor of them. This was opposed
by Nimfa. Nimfa and PNB filed a joint manifestation for early resolution of the motion for substitution. Trial court then dismissed
PNB’s motion and granted the cancellation of mortgage in favor of nimfa. PNB then filed a petition for annulment of judgement, Court
granted it because of denial of due process.
DOCTRINE: It is clear then that to set aside a final and executory judgment, there are three remedies available to a litigant: first, a
petition for relief from judgment under Rule 38 of the Rules of Court on grounds of fraud, accident, mistake and excusable negligence
filed within sixty (60) days from the time petitioner learns of the judgment but not more than six months from the entry thereof; second,
a direct action to annul for a judgment on the ground of extrinsic fraud; and third, a direct action for certiorari or collateral attack to
annul a judgment that is void upon its face or void by virtue of its own recitals.
FACTS:
· Nimfa filed a petition with the RTC for cancellation of mortgage liens annotated on three titled properties against Maybank.
· PNB filed a Motion for Substitution and Motion to Dismiss alleging that Maybank referred the case to it for handling inasmuch
as the properties involved . . . were already transferred to it by virtue of a dacion en pago executed by and between the two banks
· Nimfa filed her Opposition to PNB’s motions.
· Nimfa and PNB filed a joint manifestation for early resolution.
· Court then denied PNB’s motion for substitution and granted the cancellation of the mortgage liens.
· PNB filed with the Court of Appeals a Petition for annulment of judgment
· CA granted saying that PNB was denied due process.
· Nimfa filed certiorari contending that THE PETITION FOR ANNULMENT OF JUDGMENT IS NO LONGER AVAILABLE
TO PNB SINCE IT FAILED TO AVAIL OF THE REMEDY OF APPEAL FROM THE ORDER DATED AUGUST 15, 2002
THROUGH ITS OWN FAULT OR NEGLIGENCE
ISSUES/HELD
1. WON Petition for annulment of judgment is proper? YES
2. WON there was lack of due process? YES
RATIO:
1. It is clear then that to set aside a final and executory judgment, there are three remedies available to a litigant: first, a petition for relief
from judgment under Rule 38 of the Rules of Court on grounds of fraud, accident, mistake and excusable negligence filed within sixty
(60) days from the time petitioner learns of the judgment but not more than six months from the entry thereof; second, a direct action to
annul for a judgment on the ground of extrinsic fraud; and third, a direct action for certiorari or collateral attack to annul a judgment that
is void upon its face or void by virtue of its own recitals.
There is no question that a final judgment may be annulled. There are, however, certain requisites which must be established before a
judgment can be the subject of an action for annulment. Under the present procedure, aside form the reliefs provided in these two
sections (Secs. 1 & 2, Rule 38), there is no other means whereby the defeated party may procure final and executory judgment to be set
aside with a view to the renewal of the litigation, unless (a) the judgment is void for want of jurisdiction or for lack of due process of
law, or (b) it has been obtained by fraud
2. The trial court’s order granting the petition for cancellation even while the respondent Maybank had not been given the chance to file
an Answer and therefore, there was yet no joinder of issues, deprived Maybank, predecessor-in-interest of PNB, of due process of law,
thus rendering said order void.

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Intestate Estate of the Late Nimfa Sian vs.

Philippine National Bank

Jan. 31, 2007 | CARPIO-MORALES, J | Direct attack

PETITIONERS: Estate of Nimfa Sian

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