Munoz v. Yabut Jr.
Munoz v. Yabut Jr.
Munoz v. Yabut Jr.
DECISION
LEONARDO-DE CASTRO, J : p
In G.R. No. 146718, Muñoz is praying for the reversal, setting aside,
and nullification of the Decision 5 dated September 29, 2000 and Resolution
6 dated January 5, 2001 of the Court of Appeals in CA-G.R. SP No. 40019,
which affirmed the Orders 7 dated August 21, 1995 and October 3, 1995 of
the Quezon City RTC, Branch 95 (RTC-Branch 95) in Civil Case No. Q-28580
denying Muñoz's Motion for an Alias Writ of Execution and Application for
Surrender of the Owner's Duplicate Copy of TCT No. 53297 8 against
respondents Bank of the Philippine Islands (BPI) and the spouses Samuel Go
Chan and Aida C. Chan (spouses Chan).
I
FACTS
The subject property is a house and lot at No. 48 Scout Madriñan St.,
Diliman, Quezon City, formerly owned by Yee L. Ching. Yee L. Ching is
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married to Emilia M. Ching (spouses Ching), Muñoz's sister. Muñoz lived at
the subject property with the spouses Ching. As consideration for the
valuable services rendered by Muñoz to the spouses Ching's family, Yee L.
Ching agreed to have the subject property transferred to Muñoz. By virtue of
a Deed of Absolute Sale, seemingly executed by Yee L. Ching in favor of
Muñoz, 9 the latter acquired a Transfer Certificate of Title (TCT) No. 186306
covering the subject property in her name on December 22, 1972. 10
However, in a Deed of Absolute Sale dated December 28, 1972, Muñoz
purportedly sold the subject property to her sister, Emilia M. Ching. As a
result, TCT No. 186306 was cancelled and TCT No. 186366 was issued in
Emilia M. Ching's name. Emilia M. Ching, in a Deed of Absolute Sale dated
July 16, 1979, sold the subject property to spouses Go Song and Tan Sio Kien
(spouses Go), hence, TCT No. 186366 was cancelled and replaced by TCT
No. 258977 in the spouses Go's names.
On October 15, 1979, Muñoz registered her adverse claim to the
subject property on TCT No. 258977 of the spouses Go. The next day, on
October 16, 1979, Muñoz filed a complaint for the annulment of the deeds of
absolute sale dated December 28, 1972 and July 16, 1979, the cancellation
of TCT No. 258977 in the spouses Go's names, and the restoration and
revival of TCT No. 186306 in Muñoz's name. The complaint was docketed as
Civil Case No. Q-28580 and raffled to RTC-Branch 95. On October 17, 1979,
Muñoz caused the annotation of a notice of lis pendens on TCT No. 258977
of the spouses Go. In an Order dated December 17, 1979, the RTC-Branch 95
granted the spouses Go's motion for the issuance of a writ of preliminary
mandatory injunction and ordered the sheriff to put the spouses Go in
possession of the subject property. The writ was implemented by the sheriff
on March 26, 1980, driving Muñoz and her housemates away from the
subject property.
Muñoz filed a petition for certiorari and prohibition before the Court of
Appeals, assailing the issuance of the writ of preliminary mandatory
injunction, which was docketed as CA-G.R. SP No. 10148. The appellate court
dismissed Muñoz's petition on January 4, 1980. Yee L. Ching and his son
Frederick M. Ching filed an urgent motion for leave to intervene in CA-G.R.
SP No. 10148 and for the issuance of a temporary restraining order (TRO).
The Court of Appeals issued a TRO. However, in a Resolution dated March
18, 1980, the appellate court denied the motion to intervene of Yee L. Ching
and Frederick M. Ching, and cancelled the TRO previously issued. Yee L.
Ching and Frederick M. Ching challenged before this Court, in G.R. No.
53463, the Resolution dated March 18, 1980 of the Court of Appeals.
Eventually, in a Resolution dated June 3, 1981, the Court dismissed the
petition in G.R. No. 53463, for lack of merit and failure of Yee L. Ching and
Frederick M. Ching to substantially show that the RTC-Branch 95 and the
Court of Appeals gravely abused their discretion. In a subsequent Resolution
dated June 21, 1982, the Court clarified that its Resolution of June 3, 1981
was without prejudice to the continuation of the litigation in Civil Case No. Q-
28580 still pending before the trial court, "in order that proper and final
adjudication may be made of whether or not the deed of sale by Emerita L.
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Muñoz in favor of Emilia M. Ching is a real, genuine and authentic
transaction, thereby to settle once and for all the issue of ownership of the
property herein in question." 11
Trial in Civil Case No. Q-28580 proceeded before RTC-Branch 95.
In the meantime, Muñoz's adverse claim and notice of lis pendens on
TCT No. 258977 was cancelled on October 28, 1982 on the basis of an
alleged final judgment in favor of the spouses Go. 12 The spouses Go
obtained a loan of P500,000.00 from BPI Family Savings Bank (BPI Family)
and to secure the same, they constituted a mortgage on the subject property
on November 23, 1982. 13 When the spouses Go defaulted on the payment
of their loan, BPI Family foreclosed the mortgage. BPI Family was the highest
bidder at the auction sale of the subject property. The spouses Go failed to
exercise their right of redemption within the prescribed period, thus, BPI
Family was finally able to register the subject property in its name on
October 23, 1987 under TCT No. 370364. 14 Apparently, the original copy of
TCT No. 370364 was among those razed in the fire at the Quezon City
Register of Deeds on June 11, 1988. As a result of the administrative
reconstitution of the lost title, TCT No. RT-54376 (370364) was issued to BPI
Family. On December 3, 1990, BPI Family executed in favor of the spouses
Samuel Go Chan and Aida C. Chan (spouses Chan) a Deed of Absolute Sale
15 covering the subject property for and in consideration of P3,350,000.00.
Consequently, TCT No. RT-54376 (370364) in the name of BPI Family was
cancelled and TCT No. 53297 was issued in the spouses Chan's names on
January 28, 1991. 16 The spouses Chan obtained a loan from BPI Family on
October 2, 1992 for the construction of a building on the subject property,
and to secure the same, constituted a mortgage on the subject property in
favor of BPI Family. 17
On July 19, 1991, RTC-Branch 95 rendered its Decision 18 in Civil Case
No. Q-28580, against Emilia M. Ching, Yee L. Ching, and the spouses Go
(Emilia M. Ching, et al.). It found that Muñoz's signature on the Deed of
Absolute Sale dated December 28, 1972 was forged; that Muñoz never sold
the subject property to her sister, Emilia M. Ching; and that the spouses Go
were not innocent purchasers for value of the subject property. The fallo of
the said decision reads:
WHEREFORE, judgment is hereby rendered dismissing for lack of
merit [Emilia M. Ching, et al.'s] respective counterclaims, cross-claims,
and counter-cross-claim, declaring as null and void ab initio the
following documents, to wit: (a) Deed of Absolute Sale dated December
28, 1972, copy of which is marked in evidence as Exh. M; (b) TCT No.
186366 of the Registry of Deeds for Quezon City, copy of which is
marked in evidence as Exh. N; (c) Deed of Absolute Sale dated July 16,
1979, copy of which is marked in evidence as Exh. 3; and, (d) TCT No.
258977 of the Registry of Deeds for Metro Manila District III, copy of
which is marked in evidence as Exh. 4, and directing defendant
Register of Deeds of Quezon City to cancel from the records of the
subject property the registrations of all the said documents and to
restore and revive, free from all liens and encumbrances, TCT No.
186306 of the Registry of Deeds for Quezon City, copy of which is
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marked in evidence as Exh. L, as well as ordering defendants Emilia M.
Ching, Go Song and Tan Sio Kien jointly and severally to pay [Muñoz]
the sum of P50,000.00 as and for attorney's fees and to pay the costs
of suit. The court also hereby dismisses the rest of the claims in
[Muñoz's] complaint, there being no satisfactory warrant therefor. 19IcHEaA
Emilia L. Ching, et al., filed before this Court a motion for extension of
time to file their petition for review, which was assigned the docket number
G.R. No. 109260. However, they failed to file their intended petition within
the extended period which expired on April 23, 1993. In a Resolution 22
dated July 12, 1993, the Court declared G.R. No. 109260 terminated. The
Resolution dated July 12, 1993 of the Court in G.R. No. 109260 became final
and executory on July 15, 1993 and was entered in the Book of Entries of
Judgments on even date. 23
More than two months later, on September 20, 1993, the RTC-Branch
95 issued a writ of execution to implement the judgment in Civil Case No. Q-
28580.
The spouses Chan, who bought the subject property from BPI Family,
then came forward and filed before the RTC-Branch 95 on October 22, 1993
an Urgent Motion to Stop Execution as Against Spouses Samuel Go Chan and
Aida Chan, 24 opposing the writ of execution issued in Civil Case No. Q-
28580. The spouses Chan asserted ownership and possession of the subject
property on the basis of a clean title registered in their names under TCT No.
53297. The spouses Chan further contended that the final judgment in Civil
Case No. Q-28580 could not be executed against them since they were not
parties to the said case; they were not successors-in-interest, assigns, or
acting on behalf of the spouses Go; and they purchased the subject property
from BPI Family without any notice of defect in the latter's title.
It was only at this point that Muñoz, upon her own inquiry, discovered
the cancellation on October 28, 1982 of her adverse claim and notice of lis
pendens annotated on the spouses Go's TCT No. 258977, and the
subsequent events that led to the transfer and registration of the title to the
subject property from the spouses Go, to BPI Family, and finally, to the
spouses Chan.
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In its Order 25 dated December 28, 1993, the RTC-Branch 95 denied
the spouses Chan's urgent motion to stop the execution. According to the
RTC-Branch 95, the photocopy of TCT No. 370364 in the name of BPI Family,
submitted by the spouses Chan with their motion, could hardly be regarded
as satisfactory proof that Muñoz's adverse claim and notice of lis pendens
annotated therein were also missing from the original copy of said certificate
of title. Muñoz's adverse claim and notice of lis pendens were annotated on
TCT No. 258977 in the spouses Go's names as P.E.-8078 and P.E.-8178,
respectively. So when TCT No. 258977 of the spouses Go was cancelled and
TCT No. 370364 was issued to BPI Family, it could be presumed that the
Register of Deeds regularly performed his official duty by carrying over
Muñoz's adverse claim and notice of lis pendens to TCT No. 370364. In
addition, the RTC-Branch 95 pointed out that in this jurisdiction, the entry of
the notice of lis pendens in the day book of the Register of Deeds was
already sufficient notice to the whole world of the dispute over the subject
property, and there was no more need to annotate the same on the owner's
duplicate of the certificate of title. Finally, the RTC-Branch 95 held that TCT
No. RT-54376 (370364) of BPI Family and TCT No. 53297 of the spouses
Chan shall be subject to the reservation under Section 7 of Republic Act No.
2 6 26 "[t]hat certificates of title reconstituted extrajudicially, in the manner
stated in sections five and six hereof, shall be without prejudice to any party
whose right or interest in the property was duly noted in the original, at the
time it was lost or destroyed, but entry or notation of which has not been
made on the reconstituted certificate of title." Thus, the spouses Chan were
deemed to have taken the disputed property subject to the final outcome of
Civil Case No. Q-28580.
On January 3, 1994, the RTC-Branch 95 issued an Alias Writ of
Execution. 27 On January 10, 1994, the writ was enforced, and possession of
the subject property was taken from the spouses Chan and returned to
Muñoz. 28 In its Orders dated April 8, 1994 and June 17, 1994, the RTC-
Branch 95 denied the spouses Chan's motion for reconsideration and notice
of appeal, respectively. 29
G.R. No. 142676
Pending resolution by the RTC-Branch 95 of the spouses Chan's motion
for reconsideration and notice of appeal in Civil Case No. Q-28580, Muñoz
instituted before the MeTC on February 4, 1994 a Complaint for Forcible
Entry with Prayer for Preliminary Mandatory Injunction 30 against Samuel Go
Chan and Atty. Yabut, docketed as Civil Case No. 8286. Muñoz alleged in her
complaint that she had been in actual and physical possession of the subject
property since January 10, 1994. She hired a caretaker and two security
guards for the said property. On February 2, 1994, Samuel Go Chan and
Atty. Yabut, along with 20 other men, some of whom were armed, ousted
Muñoz of possession of the subject property by stealth, threat, force, and
intimidation. Muñoz prayed for the issuance of a writ of preliminary
mandatory injunction directing Samuel Go Chan and Atty. Yabut and all
persons claiming right under them to vacate the subject property. Muñoz
additionally prayed for judgment making the mandatory injunction
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permanent and directing Samuel Go Chan and Atty. Yabut to pay Muñoz: (1)
compensation for the unlawful occupation of the subject property in the
amount of P50,000.00 per month, beginning February 2, 1994 until the said
property is fully and completely turned over to Muñoz; (2) attorney's fees in
the amount of P50,000.00, plus P1,500.00 per court appearance of Muñoz's
counsel; and (3) costs of suit.
Samuel Go Chan and Atty. Yabut denied Muñoz's allegations, insisting
that Samuel Go Chan is the valid, lawful, and true legal owner and possessor
of the subject property. Samuel Go Chan and Atty. Yabut averred that the
Turn-Over of Possession and Receipt of Possession dated January 10, 1994 —
attached to Muñoz's complaint as proof that the subject property had been
placed in her possession — is a falsified document. The Writ of Execution
issued on September 20, 1993 in Civil Case No. Q-28580 had already expired
and the Sheriff's Return on the Writ — another document purporting to show
that possession of the subject property was turned-over to Muñoz on January
10, 1994 — was then being challenged in a complaint before the Office of
Deputy Court Administrator Reynaldo L. Suarez of the Supreme Court.
Samuel Go Chan's possession of the subject property has never been
interrupted. His sister, Cely Chan, resided at the subject property and was
never removed therefrom. On February 2, 1994, Atty. Yabut was at the
subject property only to protect the rights and interest of his client, Samuel
Go Chan, and since the latter's possession of the subject property had never
been interrupted, Atty. Yabut entered the same peacefully, without
intimidation, force, or stealth. The other people at the subject property on
February 2, 1994 were there to attend the services at the Buddhist Temple
which occupied the fourth floor of the building erected by the spouses Chan
on the subject property. Samuel Go Chan and Atty. Yabut, thus, asked the
MeTC to dismiss Muñoz's complaint for lack of merit and legal basis. 31 ASaTCE
Muñoz appealed the Orders dated June 10, 1994 and August 5, 1994 of
RTC-Branch 88 before the Court of Appeals. Her appeal was docketed as CA-
G.R. SP No. 35322. Aside from the nullification of the two orders, Muñoz
additionally prayed for the dismissal from the service of the RTC-Branch 88
presiding judge and the disbarment of Atty. Yabut.
The Court of Appeals, in its Decision dated July 21, 1995, sustained the
appealed orders of RTC-Branch 88. The Court of Appeals held that the MeTC
should have dismissed the forcible entry case on the ground of "lis pendens";
that the spouses Chan were not parties in Civil Case No. Q-28580, and
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impleading them only in the execution stage of said case vitiated their right
to due process; that the order of the RTC-Branch 95 involving the spouses
Chan in Civil Case No. Q-28580 was null and void, considering that they are
strangers to the case, and they are innocent purchasers for value of the
subject property; that the notice of lis pendens was already cancelled from
the spouses Go's certificate of title at the time they mortgaged the subject
property to BPI Family; and that the title to the subject property was already
free of any and all liens and encumbrances when the spouses Chan
purchased the said property from BPI Family. The Court of Appeals, in its
Resolution dated March 9, 2000, denied Muñoz's motion for reconsideration.
G.R. No. 146718
Meanwhile, Muñoz filed before the RTC-Branch 95 in Civil Case No. Q-
28580 a Motion to Cite the Register of Deeds in Contempt of Court for the
failure of the Register of Deeds to restore Muñoz's TCT No. 186306 despite
having been served with a copy of the writ of execution on October 11,
1993. In its Judgment (on the Contempt Proceedings against the Register of
Deeds of Quezon City Samuel C. Cleofe) 34 dated March 18, 1994, the RTC-
Branch 95 denied Muñoz's motion, convinced that the Register of Deeds had
a valid excuse for his inability to implement the served writ. The Register of
Deeds could not cancel the spouses Chan's TCT No. 53297, the subsisting
certificate of title over the subject property, absent any authority or directive
for him to do so. The directive in the final judgment in Civil Case No. Q-
28580 and the writ of execution for the same only pertained to the
cancellation of the spouses Go's TCT No. 258977.
Thereafter, Muñoz filed a Motion for Contempt against the spouses
Chan and a Second Motion for Contempt against Samuel Go Chan and Atty.
Yabut. Muñoz also filed a Motion for an Alias Writ of Execution and
Application for Surrender of the Owner's Duplicate Copy of TCT No. 53297, 35
in which she prayed for the issuance of an alias writ of execution directing
the Register of Deeds not only to cancel TCT No. 258977 and all documents
declared null and void ab initio in the dispositive portion of the Decision 36
dated July 19, 1991 of RTC-Branch 95 in Civil Case No. Q-28580, and to
restore and revive, free from all liens and encumbrances Muñoz's TCT No.
186306, but likewise to cancel the present certificate of title covering the
subject property, TCT No. 53297. SAaTHc
In its Order dated August 21, 1995, the RTC-Branch 95 denied all of
Muñoz's aforementioned motions. The RTC-Branch 95 was of the view that
Samuel Go Chan's title should be litigated in another forum, not in Civil Case
No. Q-28580 where the judgment had already become final and executory.
The RTC-Branch 95 also stressed that since the judgment in Civil Case No. Q-
28580 had long become final and executory, it could no longer be changed
or amended except for clerical error or mistake. Accordingly, the RTC-Branch
95 resolved as follows:
1. Ordering, as it hereby orders, the denial of [Muñoz's] first
and second motions for contempt and hereby absolves respondents
Samuel Go Chan, Celia Chan, Atty. Victoriano R. Yabut, Jr., and several
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John Does of the Contempt Charges against them.
2. Ordering, as it hereby orders, the issuance of an alias writ
of execution directing the Court's Deputy Sheriff:
(a) Defendants Go Song and Tan Sio Kien, their
successors-in-interest and assigns and those acting on their
behalf to vacate the disputed premises and deliver the same to
[Muñoz];
(b) Defendant Register of Deeds of Quezon City to
cancel from the records of the subject property the registration
of all the following documents, to wit: (1) "Deed of Absolute
Sale" dated December 28, 1972; (2) Transfer Certificate of Title
(TCT) No. 186366 of the Register of Deeds of Quezon City; (3)
"Deed of Absolute Sale" dated July 16, 1979; and (4) TCT No.
258977 of the Registry of Deeds for Metro Manila II, and to
restore and revive, free from all liens and encumbrances TCT
No. 186306 of the Registry of Deeds for Quezon City; and
(c) Defendants Emilia M. Ching, Go Song and Tan Sio
Kien jointly and severally to pay [Muñoz] the sum of P50,000.00
as and for attorney's fees and to pay the cost of suit. 37
Unrelenting, Muñoz filed a Motion for Clarificatory Order, pointing out
that the spouses Chan are the present occupants of the subject property.
The Order dated August 21, 1995 of the RTC-Branch 95 directed the deputy
sheriff to deliver the subject property to Muñoz, and this could not be done
unless the spouses Chan are evicted therefrom. Resultantly, Muñoz prayed
that "a clarificatory order be made categorically stating that the spouses
Samuel Go Chan and Aida C. Chan, and all persons claiming right under
them, are likewise evicted from the subject premises pursuant to the Order
of 21 August 1995." 38
Once more, the RTC-Branch 95 denied Muñoz's motion in its Order
dated October 3, 1995. The RTC-Branch 95 reiterated the rule that after the
judgment had become final, only clerical errors, as distinguished from
substantial errors, can be amended by the court. Furthermore, when the
decision or judgment sought to be amended is promulgated by an appellate
court, it is beyond the power of the trial court to change, amplify, enlarge,
alter, or modify. Ultimately, the RTC-Branch 95 pronounced that it was
"restrained . . . to consider as mere clerical error the exclusion of spouses
Samuel Go Chan and Aida C. Chan in the Decision of the Court dated July 19,
1991, a final judgment, which judgment cannot now be made to speak a
different language." 39
Attributing grave abuse of discretion on the part of the RTC-Branch 95
in issuing its Orders dated August 21, 1995 and October 3, 1995, Muñoz filed
before this Court a Petition for Certiorari a n d Mandamus, which was
remanded to the Court of Appeals in observance of the hierarchy of courts,
where it was docketed as CA-G.R. SP No. 40019. The Court of Appeals
promulgated its Decision on September 29, 2000 dismissing Muñoz's
petition. The Court of Appeals agreed with the RTC-Branch 95 that the
spouses Chan could not be covered by the alias writ of execution considering
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that they were not impleaded in Civil Case No. Q-28580. The cancellation of
TCT No. 53297 in the spouses Chan's names could not be done apart from a
separate action exclusively for that matter. The spouses Chan are deemed
buyers in good faith and for value as the certificate of title delivered to them
by BPI Family was free from any liens or encumbrances or any mark that
would have raised the spouses Chan's suspicions. Every person dealing with
registered lands may safely rely on the correctness of the certificate of title
of the vendor/transferor, and he is not required to go beyond the certificate
and inquire into the circumstances culminating in the vendor's acquisition of
the property. The Court of Appeals denied Muñoz's motion for
reconsideration in a Resolution dated January 5, 2001.
Muñoz comes before this Court via the present consolidated petitions.
Muñoz posits that the final judgment and writ of execution of RTC-
Branch 95 in Civil Case No. Q-28580 bind not only Emilia M. Ching and the
spouses Go, but also their successors-in-interest, assigns, or persons acting
on their behalf, namely, BPI Family and spouses Chan. The spouses Chan
cannot be deemed innocent purchasers for value of the property since the
cancellation of the adverse claim and notice of lis pendens on the spouses
Go's TCT No. 258977 is completely null and void.
Muñoz further argues that the MeTC Order dated May 16, 1994 in Civil
Case No. 8286 correctly ordered the issuance of a writ of preliminary
mandatory injunction restoring possession of the subject property to her, as
she had already acquired prior possession of the said property upon the
execution of the final judgment in Civil Case No. Q-28580. Also, the spouses
Chan's petition for certiorari before the RTC-Branch 88, docketed as Civil
Case No. Q-94-20632, challenging the Order dated May 16, 1994 of the
MeTC in Civil Case No. 8286, is a prohibited pleading under the Rules of
Summary Procedure; and the RTC-Branch 88 and the Court of Appeals
should be faulted for giving due course to the said petition even in the
absence of jurisdiction.
On the other hand, in their comments to the two petitions at bar, the
spouses Chan, Atty. Yabut, and BPI Family assert that given the peculiar
factual circumstances of the case, RTC-Branch 88 was justified in taking
cognizance of Samuel Go Chan and Atty. Yabut's petition for certiorari in
Civil Case No. Q-94-20632; that Muñoz is estopped from questioning the
jurisdiction of RTC-Branch 88 after participating in the proceedings in Civil
Case No. Q-94-20632; that the spouses Chan's title to the subject property is
not affected by the final judgment of RTC-Branch 95 in Civil Case No. Q-
28580, and the said judgment cannot be executed against the spouses Chan
since they are neither parties to the case, nor are they the successors-in-
interest, assigns, or persons acting on behalf of Emilia M. Ching or the
spouses Go; that BPI Family and consequently, the spouses Chan, obtained
title to the subject property as innocent purchasers for value, there being no
notice of any infirmity in said title; and that Muñoz is guilty of forum
shopping for filing her petition in G.R. No. 146718 even while her petition in
G.R. No. 142676 is still pending. STcADa
and revival of Muñoz's TCT No. 186306. The final judgment of RTC-Branch 95
in Civil Case No. Q-28580 was in favor of Muñoz and against Emilia M. Ching
and the spouses Go. The problem arose when during the pendency of the
said case, title and possession of the subject property were transferred from
the spouses Go, to BPI Family, and finally, to the spouses Chan. BPI Family
and the spouses Chan were never impleaded as parties and were not
referred to in the dispositive portion of the final judgment in Civil Case No. Q-
28580.
Muñoz questions in G.R. No. 146718: (1) the Order dated August 21,
1995 denying her Motion for Contempt against the spouses Chan, Second
Motion for Contempt against Samuel Go Chan and Atty. Yabut, and Motion
for an Alias Writ of Execution and Application for Surrender of the Owner's
Duplicate Copy of TCT No. 53297; and (2) the Order dated October 3, 1995
denying her Motion for Clarificatory Order, both issued by the RTC-Branch 95
in Civil Case No. Q-28580, and upheld by the Court of Appeals in CA-G.R. SP
No. 40019. In sum, Muñoz was seeking in her aforementioned motions: (1) a
categorical order from the RTC-Branch 95 that the final judgment in Civil
Case No. Q-28580 be executed against the spouses Chan; and (2) the
surrender and cancellation of the spouses Chan's TCT No. 53297 and
restoration of Muñoz's TCT No. 186306.
There is no merit in Muñoz's petition in G.R. No. 146718.
Civil Case No. Q-28580 is an action for reconveyance of real property.
I n Heirs of Eugenio Lopez, Sr. v. Enriquez, 42 we described an action for
reconveyance as follows:
An action for reconveyance is an action in personam
available to a person whose property has been wrongfully registered
under the Torrens system in another's name. Although the decree is
recognized as incontrovertible and no longer open to review, the
registered owner is not necessarily held free from liens. As a remedy,
an action for reconveyance is filed as an ordinary action in the ordinary
courts of justice and not with the land registration court.
Reconveyance is always available as long as the property has
not passed to an innocent third person for value. A notice of lis
pendens may thus be annotated on the certificate of title immediately
upon the institution of the action in court. The notice of lis pendens will
avoid transfer to an innocent third person for value and preserve the
claim of the real owner. 43 (Emphases ours.)
The rule is that: (1) a judgment in rem is binding upon the whole world,
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such as a judgment in a land registration case or probate of a will; and (2) a
judgment in personam is binding upon the parties and their successors-in-
interest but not upon strangers. A judgment directing a party to deliver
possession of a property to another is in personam; it is binding only against
the parties and their successors-in-interest by title subsequent to the
commencement of the action. An action for declaration of nullity of title and
recovery of ownership of real property, or re-conveyance, is a real action but
it is an action in personam, for it binds a particular individual only although it
concerns the right to a tangible thing. Any judgment therein is binding only
upon the parties properly impleaded. 44
Since they were not impleaded as parties and given the opportunity to
participate in Civil Case No. Q-28580, the final judgment in said case cannot
bind BPI Family and the spouses Chan. The effect of the said judgment
cannot be extended to BPI Family and the spouses Chan by simply issuing an
alias writ of execution against them. No man shall be affected by any
proceeding to which he is a stranger, and strangers to a case are not bound
by any judgment rendered by the court. In the same manner, a writ of
execution can be issued only against a party and not against one who did
not have his day in court. Only real parties in interest in an action are bound
by the judgment therein and by writs of execution issued pursuant thereto.
45
Although the RTC-Branch 95 had declared with finality in Civil Case No.
Q-28580 that the titles of Emilia M. Ching and the spouses Go were null and
void, there is yet no similar determination on the titles of BPI Family and the
spouses Chan. The question of whether or not the titles to the subject
property of BPI Family and the spouses Chan are null and void, since they
are merely the successors-in-interest, assigns, or privies of Emilia M. Ching
and the spouses Go, ultimately depends on the issue of whether or not BPI
Family and the spouses Chan obtained their titles to the subject property in
bad faith, i.e., with notice of Muñoz's adverse claim and knowledge of the
pendency of Civil Case No. Q-28580. The latter is a factual issue on which we
cannot rule in the present petition, not only because we are not a trier of
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facts, but more importantly, because it was not among the issues raised and
tried in Civil Case No. Q-28580.
In support of her prayer for an alias writ of execution against BPI
Family and the spouses Go, Muñoz cites our ruling in Calalang v. Register of
Deeds of Quezon City, 51 in relation to De la Cruz v. De la Cruz. 52
De la Cruz is an action for reconveyance of Lot 671 founded on breach
of trust filed by Augustina de la Cruz, et al., against Lucia dela Cruz (Lucia)
and Iglesia Ni Kristo (INK). We upheld the validity of the sale of Lot 671 by
Lucia to INK, and thereby validated the title of INK to the said property.
Calalang actually involved two petitions: (1) a special civil action for
certiorari and prohibition originally filed by Virginia Calalang (Calalang)
before this Court, and (2) a petition for injunction with damages originally
filed by Augusto M. de Leon (De Leon), et al., before the RTC and docketed
as Civil Case No. Q-45767. Calalang and De Leon, et al., assert titles that
were adverse to that of INK. De Leon, et al., in particular, claim that their
titles to Lot 671 were derived from Amando Clemente. Calalang and De
Leon, et al., sought from the court orders enjoining INK from building a fence
to enclose Lot 671; requiring the Administrator of the National Land Titles
and Deeds Registration Administration (NLTDRA) to conduct an investigation
of the anomaly regarding Lucia's reconstituted title to Lot 671; and
dismissing the proceedings instituted by the Register of Deeds for the
cancellation of their titles. We dismissed the petitions of Calalang and De
Leon, et al., on the ground of res judicata, the legality or validity of the title
of INK over Lot 671 had been settled with finality in De la Cruz. De la Cruz
was applied to Calalang and De Leon, et al., since the facts on which such
decision was predicated continued to be the facts on which the petitions of
Calalang and De Leon, et al., were based.
Muñoz's reliance on Calalang is misplaced. There are substantial
differences in the facts and issues involved in Calalang and the present case.
I n Calalang, there is duplication or overlapping of certificates of title
issued to different persons over the same property. We already upheld in De
la Cruz the validity of the certificate of title of INK over Lot 671, which
effectively prevents us from recognizing the validity of any other certificate
of title over the same property. In addition, Lucia, the predecessor-in-interest
of INK, had her certificate of title judicially reconstituted. The judicial
reconstitution of title is a proceeding in rem, constituting constructive notice
to the whole world. Hence, we rejected the petitions of Calalang and De
Leon, et al., to enjoin INK from building a fence enclosing Lot 671, and the
concerned public authorities from instituting appropriate proceedings to
have all other certificates of title over Lot 671 annulled and cancelled.
In the instant case, there has been no duplication or overlapping of
certificates of title. The subject property has always been covered by only
one certificate of title at a time, and at present, such certificate is in the
spouses Chan's names. As we have previously discussed herein, Muñoz
cannot have the spouses Chan's TCT No. 53297 cancelled by a mere motion
for the issuance of an alias writ of execution in Civil Case No. Q-28580, when
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the spouses Chan were not parties to the case. Civil Case No. Q-28580 was a
proceeding in personam, and the final judgment rendered therein —
declaring null and void the titles to the subject property of Emilia M. Ching
and the spouses Go — should bind only the parties thereto. Furthermore,
despite the void titles of Emilia M. Ching and the spouses Go, the derivative
titles of BPI Family and the spouses Chan may still be valid provided that
they had acquired the same in good faith and for value.
More in point with the instant petition is Pineda v. Santiago. 53 Pineda
still involved Lot 671. INK sought from the RTC a second alias writ of
execution to implement the judgment in Calalang against Conrado Pineda
(Pineda), et al. In opposing the issuance of such writ, Pineda, et al., asserted
that they held titles to Lot 671 adverse to those of Lucia and INK and that
they were not parties in De la Cruz or in Calalang. In its assailed order, the
RTC granted the second alias writ of execution on the basis that the issue of
ownership of Lot 671 was already determined with finality in favor of Lucia
and INK. The writ ordered the deputy sheriff to eject Pineda, et al., from Lot
671. When the matter was brought before us, we annulled the assailed order
as the writ of execution issued was against Pineda, et al., who were not
parties to Civil Case No. Q-45767, the ejectment suit instituted by De Leon,
et al. We elaborated in Pineda that: CTHaSD
Footnotes
1. Rollo (G.R. No. 142676), pp. 67-74; penned by Associate Justice Jainal D.
Rasul with Associate Justices Eubulo G. Verzola and Eugenio S. Labitoria,
concurring.
2. Id. at 101.
3. Id. at 75-94.
4. Id. at 95-100.
5. Rollo (G.R. No. 146718), pp. 61-72; penned by Associate Justice Eubulo G.
Verzola with Associate Justices Marina L. Buzon and Edgardo P. Cruz,
concurring.
6. Id. at 73.
7. Id. at 127-130.
8. Id. at 111-126.
9. According to Yee L. Ching's Answer with Cross-Claim in Civil Case No. Q-
28580, he was out of the country at the time he supposedly executed the
Deed of Absolute Sale in Muñoz's favor. Emilia M. Ching was somehow able to
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make it appear that her husband, Yee L. Ching, signed the said Deed of
Absolute Sale. When Yee L. Ching confronted Emilia M. Ching regarding the
papers, Emilia M. Ching abandoned him. Nonetheless, Yee L. Ching ratified
the transfer of the subject property to Muñoz (Rollo [G.R. No. 142676], pp.
111-112).