THIRD DIVISION
G.R. No. 204378, August 05, 2019
HEIRS OF JUAN M. DINGLASAN, REPRESENTED BY SONIA M. DINGLASAN, PETITIONERS, v. AYALA CORPORATION, OMNIPORT ECONOMIC CENTER, INC., AND REGISTER OF DEEDS OF BATANGAS CITY, RESPONDENTS.
D E C I S I O N
PERALTA, J.:
Before the Court is a petition for review on certiorari under Rule 45 of the Rules of Court seeking the reversal and setting aside of the Decision1 and Reso1ution2 of the Court of Appeals (CA), promulgated on August 31, 2011 and October 18, 2012, respectively, in CA-G.R. CV No. 94671. The assailed CA Decision dismissed herein petitioners' appeal from the Decision3 dated June 8, 2009 of the Regional Trial Court (RTC) of Batangas City, Branch 8, in Civil Case Nos. 6046 and 5413, which, in turn, dismissed petitioners' complaint for quieting of title, cancellation of Transfer Certificate of Title, and damages against herein respondents and Pilipinas Shell Petroleum Corporation. The questioned CA Resolution denied petitioners' Motion for Reconsideration.
The factual and procedural antecedents are as follows:
On February 16, 1996, herein petitioners, through their representative Platon Dinglasan, filed an Application for Registration of Title with the RTC of Batangas City, which was docketed as Land Registration Case No. N-1515, seeking for the judicial confirmation and registration of their title over a parcel of land located at Barangay Tabangao, Batangas City. The subject land, designated as Lot 11808, Cad-264 of Batangas Cadastre, contains an area of Ninety-Three Thousand One Hundred and Twenty (93,120) square meters which was subdivided into three (3) lots, namely, Lots 11808-A, 11808-B and 11808-C with an area of 16,062, 37,571, and 39,489 square meter, respectively. Subsequently, several persons filed their respective oppositions, including herein private respondents Ayala Corporation (Ayala) and Omniport Economic Center (Omniport) as well as Pilipinas Shell Corporation (Shell). Both Ayala and Omniport alleged that they are the registered owners of several lots inside Cadastral Lot 11808, as evidenced by separate Transfer Certificates of Title (TCT) in their name, issued by the Register of Deeds of Batangas City. Shell, on the other hand, had an existing contract of lease over the properties under the name of Ayala. Petitioners' application for registration was later amended and was, subsequently, raffled to Branch 8 of the RTC of Batangas City (Branch 8).
In its Partial Decision4 dated March 3, 1998, Branch 8, found, among others, that the lands claimed by Omniport are "situated within the boundaries of the property being applied for registration" by herein petitioners, and that "these lands have already been the subject of previous registration proceedings and are covered by existing certificates of title." Thus, Branch 8 rendered partial judgment by declaring that the lots claimed by Omniport are excluded from the properties being sought to be registered by herein petitioners.
In a separate Order5 dated November 6, 2000, Branch 8 noted that the lots claimed by the other oppositors were already excluded from herein petitioners' application for land registration, Thus, Branch 8 held that the only remaining issues to be resolved are those involving the lots being claimed by Ayala and Shell. In the same Order, however, Branch 8 found that the lots being claimed by Ayala have already been "brought under the Torrens System and for which corresponding [Original Certificates of Title] OCTs or TCTs have been issued." On the basis of the foregoing findings, Branch 8 dismissed herein petitioners' application for registration.
The March 3, 1998 Partial Decision and the November 6, 2000 Order of Branch 8 spawned two separate Complaints filed by herein petitioners, through their representative, Sonia Dinglasan (Sonia). The first Complaint, filed on September 9, 1999 and docketed as Civil Case No. 5413, was for cancellation of TCTs and damages against Omniport. On the other hand, the second Complaint, filed on September 7, 2001, later amended on November 26, 2001, and docketed as Civil Case No. 6046, was for reconveyance, quieting of title and cancellation of TCTs against Ayala, Shell and the Register of Deeds of Batangas City.
In both Complaints, petitioners alleged that they are the heirs of one Juan M. Dinglasan (Juan), who was the sole registered cadastral claimant and consequent owner of a parcel of land located at Barangay Tabangao, Batangas City, designated as Lot 11808, Cad-264 of Batangas Cadastre, and which contains an area of Ninety-Three Thousand One Hundred and Twenty (93,120) square meters; Juan acquired the subject property from his forebears since time immemorial and that petitioners subsequently inherited it from Juan who died intestate in 1981; petitioners are in public, peaceful, uninterrupted possession of the said parcel of land in the concept of an owner since time immemorial and are regularly paying all taxes due thereon. Petitioners' basic contention in both Complaints is that the TCTs in the names of Omniport and Ayala are null and void because the subject lots were never brought under registration and that OCT 18989, issued in the name of one Severina Luna Orosa (Orosa), from which Omniport's and Ayala's TCTs were ultimately derived, is fake or spurious. In their Complaint against Omniport, petitioners prayed that the TCTs covering the subject properties and registered in the name of Omniport be nullified and cancelled, and that Omniport pay petitioners actual damages in the amount of P300,000.00, moral damages of P200,000.00, and P100,000.00 as litigation expenses and attorney's fees. With respect to their Complaint against Ayala and Shell, petitioners prayed that: OCT 18989, as well as Ayala's TCTs covering the disputed properties, be declared void ab initio; Ayala be ordered to surrender its TCTs to the Register of Deeds of Batangas City for cancellation; the lease contract between Ayala and Shell over the subject lots be cancelled; and petitioners be declared as the absolute owners of the lots in question.
Omniport filed its Answer with Compulsory Counterclaim6 denying the material allegations in the Complaint and setting up the following defenses: (1) it is a purchaser in good faith and for value having bought the subject properties from Benguet Management Corporation; (2) petitioners' Complaint states no cause of action because petitioners are not real parties-in-interest as they do not assert any present and subsisting title over the property in question; (3) petitioners' cause of action has prescribed; (4) petitioners have not shown that they have been in actual, open and continuous possession of the subject properties; (5) petitioners are estopped from questioning the ownership of the disputed lands because they have entered into a previous stipulation of facts wherein they admitted that the said properties have been registered in the name of Omniport; (6) petitioners are also estopped from questioning the validity of OCT 18989 because they have also previously admitted the validity of TCTs which were derived from the same OCT; (7) petitioners have no legal capacity to sue; and (8) petitioners are barred by laches.
On the other hand, in their Answer with Compulsory Counterclaim,7 Ayala and Shell admitted that TCT No. RT-5597 (26077) is owned by and registered in the name of Ayala and leased by Shell; that a portion of the lot (covered by TCT No. RT-4984 [23177]) being claimed by petitioners is registered in the name of Orosa who was not impleaded as party-respondent; they deny the other material allegations in the Complaint and set up the Special and Affirmative Defenses. In their defense, Ayala and Shell contended that: the Complaint states no cause of action; the Complaint is dismissible on grounds of prescription and laches; the Complaint is defective for failure to implead Orosa who is a necessary party; Ayala is an innocent purchaser for having relied on the validity of Orosa's certificate of title during the purchase of the disputed lots; Ayala and Shell are the ones who have been in continuous, open and adverse possession of the subject properties in the concept of owner; and, petitioners have no personality to question the validity of and ask for the nullification of the contract of lease between Ayala and Shell because they are not privy thereto. As compulsory counterclaim, Ayala and Shell sought recovery of moral damages in the amount of P3,000,000.00 as well as P300,000.00 as attorney's fees, plus appearance fee of P3,000.00.
The Register of Deeds of Batangas City did not file an Answer.
Subsequently, both cases were consolidated and, after the issues were joined, trial on the merits ensued.
On June 8, 2009, the RTC of Batangas City, Branch 8 rendered its Decision, the dispositive portion of which reads as follows:
Wherefore, judgment is hereby rendered against the Plaintiffs and in favor of the Defendants Ayala and Shell in Civil Case No. 6046, as well as in favor of Defendant Omniport in Civil Case No. 5413.The trial court found that Orosa and all other persons who expressed opposition to petitioners' Application for Registration of Title are indispensable parties to the case but, nonetheless, were not impleaded as defendants. The RTC ruled that "[a] valid judgment cannot be rendered where there is want of indispensable parties."9 The RTC, however, proceeded to dispose of the case on the merits by ruling that "[p]laintiffs failed to present sufficient evidence for this Court to declare that Original Certificate of Title No. 18989, and all the derivative titles to be fraudulently issued."10 The RTC, likewise, held that petitioners are guilty of laches for failure of their predecessor-in-interest to assert his right over the disputed properties during his lifetime.SO ORDERED.8
- That Plaintiffs failed to present sufficient evidence for this Court to declare that Original Certificate of Title No. 18989 and all the derivative Titles to be fraudulently issued;
- No Damages will be awarded to the Defendants Ayala/Shell as well as Defendant Omniport;
- Cost of suit chargeable against the Plaintiffs.
At the outset, the Court deems it proper to dispose of the procedural issues raised by respondents in their respective Comments.I.
THE COURT OF APPEALS GRAVELY ERRED WHEN IT RULED THAT A DECREE OF REGISTRATION WAS ISSUED FOR CADASTRAL LOT NO. 11808 OF THE BATANGAS CADASTRE.II.
THE COURT OF APPEALS GRAVELY ERRED IN DECLARING THAT LOT NO.2 OF PS-15445 WAS ISSUED DECREE OF REGISTRATION NO. 607116.III.
THE COURT OF APPEALS GRAVELY ERRED IN RULING THAT DECREE OF REGISTRATION NOS. 607116 AND 63706 ORDERED REGISTRATION OF CADASTRAL LOT NO. 11808 BECAUSE THE LOTS DESCRIBED IN THE NOTICE OF INITIAL HEARING OF THE CASE WERE LOT NOS. 1, 2, 3, 4, 5, AND 6 OF SURVEY PLAN PS-15445.IV.
HE COURT OF APPEALS ACTED WITH GRAVE ABUSE OF DISCRETION IN NOT RULING THAT OCT NO. 11808 IS NULL AND VOID FOR BEING FAKE AND SPURIOUS BECAUSE NO SUCH TITLE WAS ISSUED AT ALL.V.
IN CONNECTION WITH CADASTRAL LOT 11808 OF THE BATANGAS CADASTRE, THE COURT OF APPEALS GRAVELY ERRED IN GIVING MORE WEIGHT TO THE RECORDS OF THE BATANGAS CITY ASSESSOR'S OFFICE AND THE BATANGAS CITY TREASURER'S OFFICE OVER THE RECORDS OF THE SURVEYS DIVISION OF DENR, REGION IV.VI.
THE COURT OF APPEALS GRAVELY ERRED IN HOLDING THAT PETITIONERS' PLAN AP 04-8100 ISSUED BY REGION IV OF THE DENR FOR LOT NO. 11808 WAS DEFECTIVE.VII.
THE COURT OF APPEALS GRAVELY ERRED IN RULING THAT THE CANCELLATION OF PETITIONERS' PLAN CSD-04-014222-D CANCELLED THE VALIDITY OF THE DATA COVERED BY THE PLAN.VIII.
THE COURT OF APPEALS GRAVELY ERRED IN HOLDING THAT PETITIONERS ARE NOT POSSESSORS IN GOOD FAITH OF LOT NO. 11808 OF THE BATANGAS CADASTRE.IX.
THE COURT OF APPEALS GRAVELY ERRED IN HOLDING THAT AYALA CORPORATION WAS A BUYER IN GOOD FAITH BECAUSE THE QUESTION OF GOOD FAITH OF THE BUYER IS CONSIDERED ONLY WHEN THE PROPERTY IN LITIGATION IS COVERED BY THE TORRENS SYSTEM.X.
THE COURT OF APPEALS GRAVELY ERRED IN RULING THAT THE SPOUSES OROSA ARE INDISPENSABLE PARTIES TO THE CASE.XI.
THE HONORABLE COURT OF APPEALS GRAVELY ERRED IN DECLARING PETITIONERS HAD SLEPT ON THEIR RIGHTS AND ARE GUILTY OF LACHES.14
However, this Court has relaxed this rule in order to serve substantial justice considering (a) matters of life, liberty, honor or property, (b) the existence of special or compelling circumstances, (c) the merits of the case, (d) a cause not entirely attributable to the fault or negligence of the party favored by the suspension of the rules, (e) a lack of any showing that the review sought is merely frivolous and dilatory, and (f) the other party will not be unjustly prejudiced thereby.Indeed, the mandatory character of the rule on immutability of final judgments was not designed to be an inflexible tool to excuse and overlook prejudicial circumstances.17 As such, the doctrine must yield to practicality, logic, fairness, and substantial justice.18
Invariably, rules of procedure should be viewed as mere tools designed to facilitate the attainment of justice. Their strict and rigid application, which would result in technicalities that tend to frustrate rather than promote substantial justice, must always be eschewed. Even the Rules of Court reflects this principle. The power to suspend or even disregard rules can be so pervasive and compelling as to alter even that which this Court itself had already declared to be final. 16
For the guidance of the bench and bar, the Court restates in capsule form the jurisprudential pronouncements . . . respecting non-compliance with the requirement on, or submission of defective, verification and certification against forum shopping:In the instant case, all the petitioners are immediate relatives and heirs of Juan who share a common interest in the land sought to be reconveyed, as well as common claims and defenses, and a common cause of action raisin; the same arguments in support thereof. There was sufficient basis, therefore for Sonia to speak for and in behalf of his co-petitioners when she certified that they had not filed any action or claim in another court or tribunal involving the same issues. Thus, the Verification and Certification that Sonia executed constitutes substantial compliance under the Rules of Court.
1) A distinction must be made between non-compliance with the requirement on or submission of defective verification, and non-compliance with the requirement on or submission of defective certification against forum shopping. 2) As to verification, non-compliance therewith or a defect therein does not necessarily render the pleading fatally defective. The court may order its submission or correction or act on the pleading if the attending circumstances are such that strict compliance with the Rule may be dispensed with in order that the ends of justice may be served thereby. 3) Verification is deemed substantially complied with when one who has ample knowledge to swear to the truth of the allegations in the complaint or petition signs the verification, and when matters alleged in the petition have been made in good faith or are true and correct. 4) As to certification against forum shopping, non compliance therewith or a defect therein, unlike in verification, is generally not curable by its subsequent submission or correction thereof, unless there is a need to relax the Rule on the ground of "substantial compliance" or presence of "special circumstances or compelling reasons." 5) The certification against forum shopping must be signed by all the plaintiffs or petitioners in a case; otherwise, those who did not sign will be dropped as parties to the case. Under reasonable or justifiable circumstances, however, as when all the plaintiffs or petitioners share a common interest and invoke a common cause of action or defense, the signature of only one of them in the certification against forum shopping substantially complies with the Rule. 6) Finally, the certification against forum shopping must be executed by the party-pleader, not by his counsel. If, however, for reasonable or justifiable reasons, the party pleader is unable to sign, he must execute a Special Power of Attorney designating his counsel of record to sign on his behalf.23
Appellees Omniport and Ayala's titles originated from OCT No. 18989 registered in the name of Severina Luna Orosa. The remaining portion of Lot 11808-C described in TCT No. T-23177 is registered in the name of Severina Luna Orosa. Appellants [herein petitioners] are claiming that there are badges of fraud which accompanied the issuance of OCT No. 18982, The parties in a better position to defend this accusation are the Spouses Orosa. Any decision rendered would affect them. They are entitled to be heard, to defend the validity of the issuance of OCT No. 18989. In the event that OCT No. 18989 is nullified, the spouses would be the ones held liable for damages. Neither the court nor appellants bothered to implead spouses Orosa as parties to the case. This is violative of their right to due process of law.33It is clear that Orosa's rights are directly affected by the present controversy and that she stands to be injured by the outcome of the Complaints filed by petitioners. In fine, the absence of Orosa in the Complaints filed by petitioners renders all subsequent actions of both the RTC and the CA null and void for want of authority to act, not only as to the absent parties, but even as to those present.
Very truly yours, (SGD) MISAEL DOMINGO C. BATTUNG III Deputy Division Clerk of Court |
Endnotes:
* Designated additional member in lieu of Associate Justice Henri Jean Paul B. Inting, brother of Associate Justice Socorro B. Inting, who concurred in the assailed Court of Appeals decision.
1 Penned by Associate Justice Magdangal M. De Leon, with Associate Justices Noel G. Tijam (a retired member of this Court) and Socorro B. Inting, concurring; rollo, pp. 78-113.
2Id. at 115-116.
3 Penned by Presiding Judge Ernesto L. Marajas; id. at 262-275.
4 Records (Civil Case No. 5413), Vol. I, pp. 18-20.
5 Records (Civil Case No. 6046), Vol. I, pp. 164-169.
6Id. at 44-60.
7 Records (Civil Case No. 5413), Vol. I, pp. 105-114.
8Id., Vol. II, at 774.
9 See Records (Civil Case No. 6046), Vol. II, p. 770.
10Id. at 774.
11 CA rollo, p. 162.
12 See CA rollo, p. 433.
13Id. at 479.
14Rollo, pp. 13-15.
15Barnes v. Judge Padilla, 482 Phil. 903, 915 (2004); Meneses v. Secretary of Agrarian Reform, 535 Phil. 819, 828 (2006); PCI Leasing and Finance, Inc. v. Milan, 631 Phil. 257, 278 (2010); Abrigo, et al. v. Flores, et al., 711 Phil. 251, 261 (2013); Malixi, et al. v. Baltazar, G.R. No. 208224, November 22, 2017, 846 SCRA 244, 272.
16Id.
17Malixi, et al. v. Baltazar, supra note 15, at 273, citing Republic v. Dagondon, et al., 785 Phil. 210, 215-216 (2016).
18Id.
19Neypes v. Court of Appeals, 506 Phil. 613, 626 (2005).
20Gatan, et al. v. Vinarao, et al., G.R. No. 205912, October 18, 2017, 842 SCRA 602, 618.
21Pascual v. Burgos, et al., 776 Phil. 167, 182-183 (2016).
22 594 Phil. 246 (2008).
23Id. at 261-262. (Emphasis ours)
24 681 Phil. 536, 546 (2012).
25 Exhibit "AA," Folder of Exhibits for the Plaintiffs, pp. 102-103.
26Pascual v. Robles, 653 Phil. 396, 405 (2010).
27Id.
28Metropolitan Bank and Trust Co., Inc. v. Alejo, et al., 417 Phil. 303, 316 (2001).
29De Castro v. Court of Appeals, 434 Phil. 53, 62 (2002). (Emphasis supplied)
30Pascual v. Robles, supra note 26, at 404.
31Id.
32Id. (Emphasis supplied)
33 CA rollo, pp. 431-432.
34Id. at 405; Plasabas v. Court of Appeals, 601 Phil. 669, 675 (2009); Heirs of Mesina v. Heirs of Fian, Sr., 708 Phil. 327, 334 (2013).
35Id.
36Id.
37 708 Phil. 327 (2013).
38 755 Phil. 783 (2015).