Home of ChanRobles Virtual Law Library

PHILIPPINE SUPREME COURT DECISIONS

FIRST DIVISION

[G.R. No. 157367 : November 23, 2011]

LUCIANO P. PAZ, PETITIONER, VS. REPUBLIC OF THE PHILIPPINES, ACTING THROUGH THE DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES, PUBLIC ESTATES AUTHORITY, FILINVEST DEVELOPMENT CORPORATION, AND FILINVEST ALABANG, INC., RESPONDENTS.

D E C I S I O N


BERSAMIN, J.:

The petitioner assails the decision promulgated on August 1, 2002,1 whereby the Court of Appeals (CA) affirmed the dismissal by the Regional Trial Court (RTC), Branch 276, in Muntinlupa City of his petition for the cancellation of a certificate of title brought under Section 108 of Presidential Decree (P.D.) No. 1529 (Property Registration Decree).

Antecedents

On November 29, 2000, the petitioner brought a petition for the cancellation of Original Certificate of Title (OCT) No. 684 docketed as LRC Case No. 00-059. The petition, ostensibly made under Section 108 of P.D. No. 1529, impleaded the Republic of the Philippines (Republic), Filinvest Development Corporation (FDC), and Filinvest Alabang, Inc. (FAI) as respondents.

The petition averred that the petitioner was the owner of Parcel 1, Plan 11-69, with an area of 71,692,754 square meters, situated in Parañaque City, Pasay City, Taguig City and San Pedro, Laguna, and Parcel 2 Plan 11-69, with a total area of 71,409,413 square meters, situated in Alabang, Muntinlupa, Parañaque City and Las Piñas City; that the total landholding of the petitioner consisted of 143,102,167 square meters, or approximately 14,310 hectares; that OCT No. 684 was registered in the name of the Republic, and included Lot 392 of the Muntinlupa Estate with an area of approximately 244 hectares; that Lot 392 was segregated from OCT No. 684, resulting in the issuance of Transfer Certificate of Title (TCT) No. 185552,2 also in the name of the Republic; that FDC and FAI developed Lot 392 into a subdivision based on their joint venture agreement with the Government; that pursuant to the joint venture agreement, Lot 392 was further subdivided, causing the cancellation of TCT No. 185552, and the issuance of TCTs for the resulting individual subdivision lots in the names of the Republic and FAI; and that the subdivision lots were then sold to third parties.

The petition for cancellation prayed as follows:3

xxxx

WHEREFORE, it is most respectfully prayed that OCT No. 684 in the name of the Republic of the Philippine Islands and TCT No. 185552 in the name of the Republic of the Philippines, Book 26, Page 152, Register of Deeds, Muntinlupa City, and all subsequent titles derived from said TCT No. 185552 as stated in paragraphs 23, 24, 25 and 28 above-quoted, Proclamation No. 1240 dated June 23, 1998, Resolution No. 01-311 of the City of Muntinlupa dated February 7, 2001 be cancelled and in lieu thereof, and said Register of Deeds be ordered to issue a new certificate of title in the name of Luciano P. Paz, married to Elvira Joson, both of legal ages, Filipinos and residents of Lot 5, Block 31, Modesta Village, San Mateo, Rizal, free from all liens and encumbrances, and defendants be ordered to vacate the property covered by said title; ordering respondents jointly and severally to pay petitioner compensatory damages in the amount of not less than P10 Million, moral damages in the amount of P1 Million, exemplary damages in the amount of P1 Million and P2 Million for attorney's fees.

Petitioner prays for other reliefs just and equitable to the premises.

xxxx

On January 19, 2001, FDC and FAI moved to dismiss the petition for cancellation on the following grounds,4 to wit:

(1)   The serious and controversial dispute spawned by the Petition for cancellation of title is litigable in an ordinary action outside the special and limited jurisdiction of land registration courts.  The Petition is thus removed from the ambit of Sec. 108 of the Property Registration Decree which requires, as an indispensable element for availment of the relief thereunder, either unanimity of the parties or absence of serious controversy or adverse claim.  It authorizes only amendment and alteration of certificates of title, not cancellation thereof;

(2)   Lack of jurisdiction of the Court over the persons of the respondents who were not validly served with summons but only a copy of the Petition;

(3)   Docket fees for the Petition have not been paid.

(4) The Petition does not contain the requisite certificate of non-forum shopping.

The petitioner countered that his petition for cancellation was not an initiatory pleading that must comply with the regular rules of civil procedure but a mere incident of a past registration proceeding; that unlike in an ordinary action, land registration was not commenced by complaint or petition, and did not require summons to bring the persons of the respondents within the jurisdiction of the trial court; and that a service of the petition sufficed to bring the respondents within the jurisdiction of the trial court.

On May 21, 2001, the RTC granted FDC and FAI's motion to dismiss,5 viz:

xxxx

The petition at bench therefore bears all the elements of an action for recovery:  (A) it was commenced long after the decree of registration in favor of the Respondent Republic of the Philippines had become final and incontrovertible, following the expiration of the reglementary period; for a review of the decree of registration issued to the "government of the Philippine Islands."
Top of Page