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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
November-2001 Jurisprudence                 

  • G.R. No. 137968 November 6, 2001 - PEOPLE OF THE PHIL. v. ALEJANDRE DELOS SANTOS

  • G.R. Nos. 123138-39 November 8, 2001 - PEOPLE OF THE PHILS. v. HONESTO LLANDELAR

  • A.M. MTJ-01-1375 November 13, 2001 - REPORT ON THE JUDICIAL AUDIT IN THE MTCs of CALASIAO. BINMALEY

  • A.M. No. RTJ-00-1601 November 13, 2001 - ELIEZER A. SIBAYAN-JOAQUIN v. ROBERTO S. JAVELLANA

  • G.R. No. 104629 November 13, 2001 - PEOPLE OF THE PHIL. v. JULIUS KINOK

  • G.R. No. 134498 November 13, 2001 - CELIA M. MERIZ v. PEOPLE OF THE PHIL

  • G.R. Nos. 135454-56 November 13, 2001 - PEOPLE OF THE PHIL v. RODERICK SANTOS

  • A.M. No. CA-01-10-P November 14, 2001 - ALDA C. FLORIA v. CURIE F. SUNGA, ET AL.

  • A.M. No. P-01-1518 November 14, 2001 - ANTONIO A. ARROYO v. SANCHO L. ALCANTARA

  • G.R. No. 122736 November 14, 2001 - PEOPLE OF THE PHIL. v. FROILAN PADILLA

  • G.R. No. 123819 November 14, 2001 - PEOPLE OF THE PHIL. v. STEPHEN MARK WHISENHUNT

  • G.R. No. 133877 November 14, 2001 - RIZAL COMMERCIAL BANKING CORPORATION v. ALFA RTW MANUFACTURING CORPORATION

  • G.R. No. 133910 November 14, 2001 - PEOPLE OF THE PHILIPPINES v. JOSE VIRREY y DEHITO

  • G.R. No. 135511-13 November 14, 2001 - THE PEOPLE OF THE PHILIPPINES v. ENTICO MARIANO y EXCONDE

  • G.R. No. 137613 November 14, 2001 - PEOPLE OF THE PHIL. v. ROSALITO CABOQUIN

  • G.R. No. 138914 November 14, 2001 - PEOPLE OF THE PHIL. v. EFREN MANTES, ET AL.

  • G.R. No. 142870 November 14, 2001 - PEOPLE OF THE PHIL. v. DINDO F. PAJOTAL, ET AL.

  • G.R. Nos. 143513 & 143590 November 14, 2001 - POLYTECHNIC UNIVERSITY OF THE PHILIPPINES v. COURT OF APPEALS and FIRESTONE CERAMICS

  • A.M. No. RTJ-00-1599 November 15, 2001 - TRANQUILINO F. MERIS v. JUDGE FLORENTINO M. ALUMBRES

  • G.R. No. 123213 November 15, 2001 - NEPOMUCENA BRUTAS v. COURT OF APPEALS, ET AL.

  • G.R. No. 126584 November 15, 2001 - VALLEY LAND RESOURCES, INC., ET AL. v. VALLEY GOLF CLUB INC.

  • G.R. No. 127897 November 15, 2001 - DELSAN TRANSPORT LINES v. COURT OF APPEALS, ET AL.

  • G.R. No. 129018 November 15, 2001 - CARMELITA LEAÑO v. COURT OF APPEALS, ET AL.

  • G.R. No. 136017 November 15, 2001 - PEOPLE OF THE PHIL. v. JERRY BANTILING

  • G.R. No. 136143 November 15, 2001 - PEOPLE OF THE PHILIPPINES v. AGAPITO CABOTE a.k.a. "PITO"

  • G.R. No. 137255 November 15, 2001 - PEOPLE OF THE PHIL. v. NOEL MAMALAYAN, ET AL.

  • G.R. No. 137369 November 15, 2001 - PEOPLE OF THE PHILIPPINES v. ALIAS KOBEN VISTA

  • G.R. No. 141811 November 15, 2001 - FIRST METRO INVESTMENT CORPORATION v. ESTE DEL SOL MOUNTAIN RESERVE

  • G.R. No. 145275 November 15, 2001 - COMMISSIONER OF INTERNAL REVENUE v. LA CAMPANA FABRICA DE TABACOS

  • G.R. No. 148326 November 15, 2001 - PABLO C. VILLABER Petitioner v. COMMISSION ON ELECTIONS and REP. DOUGLAS R. CAGAS

  • A.M. No. MTJ-01-1382 November 16, 2001 - MARIO W. CHILAGAN v. EMELINA L. CATTILING

  • A.M. No. P-00-1411 November 16, 2001 - FELICIDAD JACOB v. JUDITH T. TAMBO

  • G.R. No. 120274 November 16, 2001 - SPOUSES FRANCISCO A. PADILLA and GERALDINE S. PADILLA v. COURT OF APPEALS and SPOUSES CLAUDIO AÑONUEVO and CARMELITA AÑONUEVO

  • G.R. No. 127003 November 16, 2001 - THE PEOPLE OF THE PHIL v. FAUSTINO GABON

  • G.R. Nos. 132875-76 November 16, 2001 - PEOPLE OF THE PHIL. v. ROMEO G. JALOSJOS

  • G.R. No. 132916 November 16, 2001 - RUFINA TANCINCO v. GSIS, ET AL.

  • G.R. No. 133437 November 16, 2001 - PEOPLE OF THE PHILIPPINES v. RONALD SAMSON

  • G.R. No. 134486 November 16, 2001 - PEOPLE OF THE PHIL. v. CLEMENTE DAYNA

  • G.R. No. 135038 November 16, 2001 - ROLANDO Y. TAN v. COURT OF APPEALS, ET AL.

  • G.R. No. 142654 November 16, 2001 - PEOPLE OF THE PHIL v. ROLANDO MENDOZA

  • G.R. No. 143802 November 16, 2001 - REYNOLAN T. SALES v. SANDIGANBAYAN, ET AL.

  • G.R. No. 129175 November 19, 2001 - RUBEN N. BARRAMEDA, ET AL. v. ROMEO ATIENZA, ET AL.

  • G.R. No. 130945 November 19, 2001 - PEOPLE OF THE PHIL. v. ALBERTO CONDINO

  • G.R. No. 132724 November 19, 2001 - PEOPLE OF THE PHILIPPINES v. RENIEL SANAHON

  • G.R. Nos. 138358-59 November 19, 2001 - PEOPLE OF THE PHIL. v. CLAUDIO B. DELA PEÑA

  • G.R. No. 138661 November 19, 2001 - PEOPLE OF THE PHIL. v. JERSON E. ACOJEDO

  • G.R. No. 140920 November 19, 2001 - JUAN LORENZO B. BORDALLO, ET AL. v. THE PROFESSIONAL REGULATIONS COMMISSION AND THE BOARD OF MARINE DECK OFFICERS

  • G.R. No. 148560 November 19, 2001 - JOSEPH EJERCITO ESTRADA v. SANDIGANBAYAN (Third Division) and PEOPLE OF THE PHILIPPINES

  • G.R. No. 91486 November 20, 2001 - ALBERTO G. PINLAC v. COURT OF APPEALS, ET AL.

  • G.R. No. 122276 November 20, 2001 - RODRIGO ALMUETE ET AL., v. MARCELO ANDRES, ET AL.

  • G.R. No. 126204 November 20, 2001 - NAPOCOR v. PHILIPP BROTHERS OCEANIC

  • G.R. Nos. 126538-39 November 20, 2001 - PEOPLE OF THE PHILIPPINES v. RODELIO MARCELO

  • G.R. No. 129234 November 20, 2001 - THERMPHIL v. COURT OF APPEALS ET AL.

  • G.R. No. 140032 November 20, 2001 - PEOPLE OF THE PHILIPPINES v. ANGEL C. BALDOZ and MARY GRACE NEBRE

  • G.R. No. 140692 November 20, 2001 - ROGELIO C. DAYAN v. BANK OF THE PHILIPPINE ISLANDS, ET AL.

  • G.R. No. 144401 November 20, 2001 - PEOPLE OF THE PHIL. v. JOEL GALISIM

  • A.M. No. MTJ-99-1207 November 21, 2001 - NBI v. FRANCISCO D. VILLANUEVA

  • A.M. No. P- 01-1520 November 21, 2001 - MARILOU A. CABANATAN v. CRISOSTOMO T. MOLINA

  • A.M. Nos. RTJ-00-1561 & RTJ-01-1659 November 21, 2001 - CARINA AGARAO v. Judge JOSE J. PARENTELA

  • G.R. No. 125356 November 21, 2001 - SUPREME TRANSLINER INC. v. HON. COURT OF APPEALS, ET AL.

  • G.R. No. 132839 November 21, 2001 - ERIC C. ONG v. HON. COURT OF APPEALS and THE PEOPLE OF THE PHILIPPINES

  • G.R. No. 133879 November 21, 2001 - EQUATORIAL REALTY DEVELOPMENT v. MAYFAIR THEATER

  • G.R. No. 136748 November 21, 2001 - PEOPLE OF THE PHIL. v. JUANITO ET AL.

  • G.R. No. 137457 November 21, 2001 - PEOPLE OF THE PHIL. v. ROSAURO SIA

  • G.R. No. 141881 November 21, 2001 - THE PEOPLE OF THE PHILIPPINES v. VIRGILIO BERNABE y RAFOL

  • A.M. No RTJ-01-1664 November 22, 2001 - ALFREDO CAÑADA v. VICTORINO MONTECILLO

  • G.R. No. 109648 November 22, 2001 - PH CREDIT CORPORATION v. COURT OF APPEALS and CARLOS M. FARRALES

  • G.R. Nos. 111502-04 November 22, 2001 - REYNALDO H. JAYLO, ET AL. v. SANDIGANBAYAN

  • G.R. No. 113218 November 22, 2001 - ALEJANDRO TECSON v. HON. COURT OF APPEALS ET AL.

  • G.R. No. 113541 November 22, 2001 - HONGKONG AND SHANGHAI BANKING CORP. EMPLOYEES UNION v. NLRC, ET AL.

  • G.R. No. 118462 November 22, 2001 - LEOPOLDO GARRIDO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 123893 November 22, 2001 - LUISITO PADILLA , ET AL. v. THE HONORABLE COURT OF APPEALS, ET AL.

  • G.R. No. 129660 November 22, 2001 - BIENVENIDO P. JABAN and LYDIA B. JABAN v. HON. COURT OF APPEALS, ET AL.

  • G.R. No. 130628 November 22, 2001 - PEOPLE OF THE PHIL. v. PAULINO LEONAR

  • G.R. No. 132743 November 22, 2001 - PEOPLE OF THE PHIL. v. MARCIAL CAÑARES Y ORBES

  • G.R. No. 133861 November 22, 2001 - PEOPLE OF THE PHIL. v. ROBERTO SO

  • G.R. Nos. 135853-54 November 22, 2001 - PEOPLE OF THE PHIL. v. OPENIANO LACISTE

  • G.R. No. 135863 November 22, 2001 - PEOPLE OF THE PHIL. v. VlRGILIO LORICA

  • G.R. Nos. 136317-18 November 22, 2001 - PEOPLE OF THE PHIL. v. EDUARDO YAOTO

  • G.R. No. 136586 November 22, 2001 - JON AND MARISSA DE YSASI v. ARTURO AND ESTELA ARCEO

  • G.R. No. 139563 November 22, 2001 - THE PEOPLE OF THE PHIL.. v. AMADOR BISMONTE y BERINGUELA

  • G.R. Nos. 139959-60 November 22, 2001 - PEOPLE OF THE PHIL. v. DEOGRACIAS BURGOS

  • G.R. No. 141602 November 22, 2001 - PACSPORTS PHILS. v. NICCOLO SPORTS, INC.

  • G.R. No. 142316 November 22, 2001 - FRANCISCO A.G. DE LIANO, ET AL. v. COURT OF APPEALS, ET AL.

  • G.R. No. 143939 November 22, 2001 - HEIRS OF ROSARIO POSADAS REALTY v. ROSENDO.BANTUG

  • G.R. No. 145475 November 22, 2001 - PEOPLE OF THE PHILIPPINES v. EUSEBIO PUNSALAN

  • G.R. No. 145851 November 22, 2001 - ABELARDO B. LICAROS v. THE SANDIGANBAYAN, ET AL.

  • G.R. No. 146683 November 22, 2001 - CIRILA ARCABA v. ERLINDA TABANCURA VDA. DE BATOCAEL, ET AL.

  • A.M. No. RTJ-00-1562 November 23, 2001 - CAVITE CRUSADE FOR GOOD GOVERNMENT v. JUDGE NOVATO CAJIGAL

  • G.R. No. 126334 November 23, 2001 - EMILIO EMNACE v. COURT OF APPEALS, ET AL.

  • G.R. No. 128886 November 23, 2001 - PEOPLE OF THE PHIL. v. JESUS JULIANDA, JR., ET AL.

  • G.R. No. 142044 November 23, 2001 - PEOPLE OF THE PHIL. v. TOBECHUKWU NICHOLAS

  • G.R. No. 144309 November 23, 2001 - SOLID TRIANGLE SALES CORPORATION and ROBERT SITCHON v. THE SHERIFF OF RTC QC, ET AL.

  • A.M. No. RTJ-01-1662 November 26, 2001 - VICTOR TUZON v. LORETO CLORIBEL-PURUGGANAN

  • G.R. No. 138303 November 26, 2001 - PEOPLE OF THE PHIL. v. ELROSWELL MANZANO

  • G.R. Nos. 100940-41 November 27, 2001 - PEOPLE OF THE PHILIPPINES v. AGUSTIN LADAO y LORETO, ET AL.

  • G.R. No. 128285 November 27, 2001 - PEOPLE OF THE PHILS. v. ANTONIO PLANA, ET AL.

  • G.R. Nos. 130409-10 November 27, 2001 - PEOPLE OF THE PHIL. v. JOSUE B. DUMLAO

  • G.R. No. 130907 November 27, 2001 - REPUBLIC OF THE PHIL. v. HON. CESAR A MANGROBANG, ET AL.

  • G.R. No. 130963 November 27, 2001 - PEOPLE OF THE PHIL. v. MARIANO PASCUA

  • G.R. No. 133381 November 27, 2001 - PEOPLE OF THE PHIL. v. ROMULO VILLAVER, ET. AL.

  • G.R. No. 140858 November 27, 2001 - SPOUSES PAPA and LOLITA MANALILI v. SPOUSES ARSENIO and GLICERIA DE LEON

  • G.R. No. 142523 November 27, 2001 - MARIANO L. GUMABON, ET AL. v. AQUILINO T. LARIN

  • G.R. No. 144464 November 27, 2001 - GILDA G. CRUZ and ZENAIDA C. PAITIM v. THE CIVIL SERVICE COMMISSION

  • A.M. No. 00-8-05-SC November 28, 2001 - RE: PROBLEM OF DELAYS IN CASES BEFORE THE SANDIGANBAYAN

  • G.R. No. 128516 November 28, 2001 - DULOS REALTY and DEVELOPMENT CORP. v. COURT OF APPEALS, ET. AL.

  • A.M. No. P-01-1485 November 29, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. MARIE YVETTE GO, ET AL

  • A.M. No. P-01-1522 November 29, 2001 - JUDGE ANTONIO J. FINEZA v. ROMEO P. ARUELO

  • A.M. No. RTJ-01-1665 November 29, 2001 - ROSAURO M. MIRANDA v. JUDGE CESAR A MANGROBANG

  • G.R. No. 119707 November 29, 2001 - VERONICA PADILLO v. COURT OF APPEALS

  • G.R. No. 121703 November 29, 2001 - NATIVIDAD T. TANGALIN v. COURT OF APPEALS, ET AL.

  • G.R. No. 126524 November 29, 2001 - BPI INVESTMENT CORP. v. D.G. CARREON COMMERCIAL CORP., ET AL.

  • G.R. No. 129282 November 29, 2001 - DMPI EMPLOYEES CREDIT COOPERATIVE v. ALEJANDRO M. VELEZ, ET AL.

  • G.R. Nos. 129609 & 135537 November 29, 2001 - RODIL ENTERPRISES v. COURT OF APPEALS, ET AL.

  • G.R. Nos. 130326 & 137868 November 29, 2001 - COMPANIA GENERAL DE TABACOS DE FILIPINAS AND MANILA TOBACCO TRADING v. THE COURT OF APPEALS

  • G.R. Nos. 132066-67 November 29, 2001 - PEOPLE OF THE PHIL. v. BALAS MEDIOS

  • G.R. No. 132133 November 29, 2001 - PEOPLE OF THE PHILIPPINES v. WILLIAM ALPE y CUATRO

  • G.R. No. 136848 November 29, 2001 - PEOPLE OF THE PHIL. v. RENATO T. RAMIREZ

  • G.R. No. 137815 November 29, 2001 - JUANITA T. SERING v. COURT OF APPEALS, ET AL.

  • G.R. No. 138489 November 29, 2001 - ELEANOR DELA CRUZ, ET AL. v. COMMISSION ON AUDIT

  • G.R. No. 139470 November 29, 2001 - PEOPLE OF THE PHIL. v. SPO2 ANTONIO B. BENOZA

  • G.R. No. 140386 November 29, 2001 - PEOPLE OF THE PHIL. v. BENNY ACOSTA

  • G.R. No. 141386 November 29, 2001 - COMMISSION ON AUDIT OF THE PROVINCE OF CEBU v. PROVINCE OF CEBU

  • G.R. Nos. 141702-03 November 29, 2001 - CATHAY PACIFIC AIRWAYS v. NLRC and MARTHA Z. SINGSON

  • G.R. No. 142606 November 29, 2001 - PEOPLE OF THE PHILIPPINES v. NESTOR MUNTA

  • G.R. No. 143127 November 29, 2001 - PEOPLE OF THE PHIL. v. RAUL RUBARES Y CAROLINO

  • G.R. No. 143703 November 29, 2001 - PEOPLE OF THE PHIL v. JOSE V. MUSA

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    G.R. No. 129018   November 15, 2001 - CARMELITA LEAÑO v. COURT OF APPEALS, ET AL.

     
    PHILIPPINE SUPREME COURT DECISIONS

    FIRST DIVISION

    [G.R. No. 129018. November 15, 2001.]

    CARMELITA LEAÑO, assisted by her husband GREGORIO CUACHON, Petitioner, v. COURT OF APPEALS and HERMOGENES FERNANDO, Respondents.

    D E C I S I O N


    PARDO, J.:


    The Case


    The case is a petition for review on certiorari of the decision 1 of the Court of Appeals affirming that of the Regional Trial Court, Malolos, Branch 7 2 ordering petitioner Leaño to pay respondent Hermogenes Fernando the sum of P183,687.70 corresponding to her outstanding obligations under the contract to sell, with interest and surcharges due thereon, attorney’s fees and costs.

    The Facts


    On November 13, 1985, Hermogenes Fernando, as vendor and Carmelita Leaño, as vendee executed a contract to sell involving a piece of land, Lot No. 876-B, with an area of 431 square meters, located at Sto. Cristo, Baliuag, Bulacan. 3

    In the contract, Carmelita Leaño bound herself to pay Hermogenes Fernando the sum of one hundred seven thousand and seven hundred and fifty pesos (P107,750.00) as the total purchase price of the lot. The manner of paying the total purchase price was as follows:jgc:chanrobles.com.ph

    "The sum of TEN THOUSAND SEVEN HUNDRED SEVENTY FIVE (P10,775.00) PESOS, shall be paid at the signing of this contract as DOWN PAYMENT, the balance of NINETY SIX THOUSAND NINE HUNDRED SEVENTY FIVE PESOS (P96,975.00) shall be paid within a period of TEN (10) years at a monthly amortization of P1,747.30 to begin from December 7, 1985 with interest at eighteen per cent (18%) per annum based on balances." 4

    The contract also provided for a grace period of one month within which to make payments, together with the one corresponding to the month of grace. Should the month of grace expire without the installments for both months having been satisfied, an interest of 18% per annum will be charged on the unpaid installments. 5

    Should a period of ninety (90) days elapse from the expiration of the grace period without the overdue and unpaid installments having been paid with the corresponding interests up to that date, respondent Fernando, as vendor, was authorized to declare the contract cancelled and to dispose of the parcel of land, as if the contract had not been entered into. The payments made, together with all the improvements made on the premises, shall be considered as rents paid for the use and occupation of the premises and as liquidated damages. 6

    After the execution of the contract, Carmelita Leaño made several payments in lump sum. 7 Thereafter, she constructed a house on the lot valued at P800,000.00. 8 The last payment that she made was on April 1, 1989.

    On September 16, 1991, the trial court rendered a decision in an ejectment case 9 earlier filed by respondent Fernando ordering petitioner Leaño to vacate the premises and to pay P250.00 per month by way of compensation for the use and occupation of the property from May 27, 1991 until she vacated the premises, attorney’s fees and costs of the suit. 10 On August 24, 1993, the trial court issued a writ of execution which was duly served on petitioner Leaño.chanrob1es virtua1 1aw 1ibrary

    On September 27, 1993, petitioner Leaño filed with the Regional Trial Court of Malolos, Bulacan a complaint for specific performance with preliminary injunction. 11 Petitioner Leaño assailed the validity of the judgment of the municipal trial court 12 for being violative of her right to due process and for being contrary to the avowed intentions of Republic Act No. 6552 regarding protection to buyers of lots on installments. Petitioner Leaño deposited P18,000.00 with the clerk of court, Regional Trial Court, Bulacan, to cover the balance of the total cost of Lot 876-B. 13

    On November 4, 1993, after petitioner Leaño posted a cash bond of P50,000.00, 14 the trial court issued a writ of preliminary injunction 15 to stay the enforcement of the decision of the municipal trial court. 16

    On February 6, 1995, the trial court rendered a decision, the dispositive portion of which reads:jgc:chanrobles.com.ph

    "WHEREFORE, judgment is hereby rendered as follows:jgc:chanrobles.com.ph

    "1. The preliminary injunction issued by this court per its order dated November 4, 1993 is hereby made permanent;

    "2. Ordering the plaintiff to pay to the defendant the sum of P103,090.70 corresponding to her outstanding obligations under the contract to sell (Exhibit "A" — Exhibit "B") consisting of the principal of said obligation together with the interest and surcharges due thereon as of February 28, 1994, plus interest thereon at the rate of 18% per annum in accordance with the provision of said contract to be computed from March 1, 1994, until the same becomes fully paid;

    "3. Ordering the defendant to pay to plaintiff the amount of P10,000 as and by way of attorney’s fees;

    "4. Ordering the defendant to pay to plaintiff the costs of the suit in Civil Case No. 1680 aforementioned.

    "SO ORDERED.

    "Malolos, Bulacan, February 6, 1995.

    "(sgd.) DANILO A. MANALASTAS

    Judge" 17

    On February 21, 1995, respondent Fernando filed a motion for reconsideration 18 and the supplement 19 thereto. The trial court increased the amount of P103,090.70 total P183,687.00 and ordered petitioner Leaño ordered to pay attorney’s fees. 20

    According to the trial court, the transaction between the parties was an absolute sale, making petitioner Leaño the owner of the lot upon actual and constructive delivery thereof. Respondent Fernando, the seller, was divested of ownership and cannot recover the same unless the contract is rescinded pursuant to Article 1592 of the Civil Code which requires a judicial or notarial demand. Since there had been no rescission, petitioner Leaño, as the owner in possession of the property, cannot be evicted.

    On the issue of delay, the trial court held:jgc:chanrobles.com.ph

    "While the said contract provides that the whole purchase price is payable within a ten-year period, yet the same contract clearly specifies that the purchase price shall be payable in monthly installments for which the corresponding penalty shall be imposed in case of default. The plaintiff certainly cannot ignore the binding effect of such stipulation by merely asserting that the ten-year period for payment of the whole purchase price has not yet lapsed. In other words, the plaintiff has clearly defaulted in the payment of the amortizations due under the contract as recited in the statement of account (Exhibit "2") and she should be liable for the payment of interest and penalties in accordance with the stipulations in the contract pertaining thereto." 21

    The trial court disregarded petitioner Leaño’s claim that she made a downpayment of P10,000.00, at the time of the execution of the contract.

    The trial court relied on the statement of account 22 and the summary 23 prepared by respondent Fernando to determine petitioner Leaño’s liability for the payment of interests and penalties.chanrob1es virtua1 1aw 1ibrary

    The trial court held that the consignation made by petitioner Leaño in the amount of P18,000.00 did not produce any legal effect as the same was not done in accordance with Articles 1176, 1177 and 1178 of the Civil Code.

    In time, petitioner Leaño appealed the decision to the Court of Appeals. 24 On January 22, 1997, Court of Appeals promulgated a decision affirming that of the Regional Trial Court in toto. 25 On February 11, 1997, petitioner Leaño filed a motion for reconsideration. 26 On April 17, 1997, the Court of Appeals denied the motion. 27

    Hence, this petition. 28

    The Issues


    The issues to be resolved in this petition for review are (1) whether the transaction between the parties is an absolute sale or a conditional sale; (2) whether there was a proper cancellation of the contract to sell; and (3) whether petitioner was in delay in the payment of the monthly amortizations.

    The Court’s Ruling


    Contrary to the findings of the trial court, the transaction between the parties was a conditional sale not an absolute sale. The intention of the parties was to reserve the ownership of the land in the seller until the buyer has paid the total purchase price.chanrob1es virtua1 1aw 1ibrary

    Consider the following:chanrob1es virtual 1aw library

    First, the contract to sell makes the sale, cession and conveyance "subject to conditions" set forth in the contract to sell. 29

    Second, what was transferred was the possession of the property, not ownership. The possession is even limited by the following: (1) that the vendee may continue therewith "as long as the VENDEE complies with all the terms and conditions mentioned," and (2) that the buyer may not sell, cede, assign, transfer or mortgage or in any way encumber any right, interest or equity that she may have or acquire in and to the said parcel of land nor to lease or to sublease it or give possession to another person without the written consent of the seller. 30

    Finally, the ownership of the lot was not transferred to Carmelita Leaño. As the land is covered by a Torrens title, the act of registration of the deed of sale was the operative act that could transfer ownership over the lot. 31 There is not even a deed that could be registered since the contract provides that the seller will execute such a deed "upon complete payment by the VENDEE of the total purchase price of the property" with the stipulated interest. 32

    In a contract to sell real property on installments, the full payment of the purchase price is a positive suspensive condition, the failure of which is not considered a breach, casual or serious, but simply an event that prevented the obligation of the vendor to convey title from acquiring any obligatory force. 33 The transfer of ownership and title would occur after full payment of the price. 34

    In the case at bar, petitioner Leaño’s non-payment of the installments after April 1, 1989, prevented the obligation of respondent Fernando to convey the property from arising. In fact, it brought into effect the provision of the contract on cancellation.

    Contrary to the findings of the trial court, Article 1592 of the Civil Code is inapplicable to the case at bar. 35 However, any attempt to cancel the contract to sell would have to comply with the provisions of Republic Act No. 6552, the "Realty Installment Buyer Protection Act."cralaw virtua1aw library

    R.A. No. 6552 recognizes in conditional sales of all kinds of real estate (industrial, commercial, residential) the right of the seller to cancel the contract upon non-payment of an installment by the buyer, which is simply an event that prevents the obligation of the vendor to convey title from acquiring binding force. 36 The law also provides for the rights of the buyer in case of cancellation. Thus, Sec. 3 (b) of the law provides that:jgc:chanrobles.com.ph

    "If the contract is cancelled, the seller shall refund to the buyer the cash surrender value of the payments on the property equivalent to fifty percent of the total payments made and, after five years of installments, an additional five percent every year but not to exceed ninety percent of the total payments made: Provided, That the actual cancellation of the contract shall take place after thirty days from receipt by the buyer of the notice of cancellation or the demand for rescission of the contract by a notarial act and upon full payment of the cash surrender value to the buyer." [Emphasis supplied]

    The decision in the ejectment case 37 operated as the notice of cancellation required by Sec. 3(b). As petitioner Leaño was not given the cash surrender value of the payments that she made, there was still no actual cancellation of the contract. Consequently, petitioner Leaño may still reinstate the contract by updating the account during the grace period and before actual cancellation. 38

    Should petitioner Leaño wish to reinstate the contract, she would have to update her accounts with respondent Fernando in accordance with the statement of account 39 which amount was P183,687.00. 40

    On the issue of whether petitioner Leaño was in delay in paying the amortizations, we rule that while the contract provided that the total purchase price was payable within a ten-year period, the same contract specified that the purchase price shall be paid in monthly installments for which the corresponding penalty shall be imposed in case of default. Petitioner Leaño cannot ignore the provision on the payment of monthly installments by claiming that the ten-year period within which to pay has not elapsed.chanrob1es virtua1 1aw 1ibrary

    Article 1169 of the Civil Code provides that in reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to comply in a proper manner with what is incumbent upon him. From the moment one of the parties fulfills his obligation, delay by the other begins.

    In the case at bar, respondent Fernando performed his part of the obligation by allowing petitioner Leaño to continue in possession and use of the property. Clearly, when petitioner Leaño did not pay the monthly amortizations in accordance with the terms of the contract, she was in delay and liable for damages. 41 However, we agree with the trial court that the default committed by petitioner Leaño in respect of the obligation could be compensated by the interest and surcharges imposed upon her under the contract in question. 42

    It is a cardinal rule in the interpretation of contracts that if the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulation shall control. 43 Thus, as there is no ambiguity in the language of the contract, there is no room for construction, only compliance.chanrob1es virtua1 1aw 1ibrary

    The Fallo

    IN VIEW WHEREOF, we DENY the petition and AFFIRM the decision of the Court of Appeals 44 in toto.

    No costs.

    SO ORDERED.

    Davide, Jr., C.J., Puno, Kapunan and Ynares-Santiago., JJ., concur.

    Endnotes:



    1. In CA-G.R. CV No. 50502, promulgated on January 22, 1997, Petition, Annex "A", Rollo, pp. 15-27, Minerva P. Gonzaga-Reyes, J., ponente, Ramon U. Mabutas, Jr. and Portia Alino-Hormachuelos, JJ., concurring.

    2. Decision, Original Record, Civil Case No. 768-M-93, pp. 146-158.

    3. Exhibit A, Original Record, Civil Case No. 768-M-93, pp. 105-106.

    4. Exhibit A, Original Record, Civil Case No. 768-M-93, pp. 105-106, at p. 105.

    5. Exhibit A, Original Record, Civil Case No. 768-M-93, pp. 105-106 at p. 105.

    6. Exhibit A, Original Record, Civil Case No. 768-M-93, pp. 105-106.

    7. Exhibits B, B-1, B-2, B-3, B-4, B-5, B-6, B-7, and B-8, Original Record, Civil Case No. 768-M-93, pp. 100-102.

    8. Petition for Review, Rollo, pp. 3-13 at p. 5.

    9. Docketed as Civil Case No. 1680.

    10. Exhibit 4, Original Record, Civil Case No. 768-M-93, pp. 8-10.

    11. Docketed as Civil Case No. 768-M-93.

    12. In Civil Case No. 1680.

    13. Annex C, Original Record, Civil Case No. 768-M-93, p. 12.

    14. Receipt, Original Record, Civil Case No. 768-M-93, p. 57.

    15. Order, Original Record, Civil Case No. 768-M-93, pp. 48-49.

    16. In Civil Case No. 1680.

    17. Decision, Original Record, Civil Case No. 768-M-93, pp. 146-158, at p. 157.

    18. Motion for Reconsideration, Original Record, Civil Case No. 768-M-93, pp. 160-164.

    19. Supplement to Motion for Reconsideration, Original Record, Civil Case No. 768-M-93, pp. 166-168.

    20. Order, Original Record, Civil Case No. 768-M-93, pp. 169-170, at p. 170.

    21. Decision, Original Record, Civil Case No. 768-M-93, pp. 146-158, at p.155.

    22. Exhibit 2, Original Record, Civil Case No. 768-M-93, p. 107.

    23. Exhibit 2-A, Original Record, Civil Case No. 768-M-93, p. 108.

    24. Docketed as CA-G.R. CV No. 50202.

    25. Petition, Annex "A", Court of Appeals Decision, Rollo, pp. 15-27.

    26. Motion for Reconsideration, CA Rollo, pp. 88-90.

    27. Resolution, CA Rollo, p. 95.

    28. Petition, Rollo, pp. 3-13. On December 1, 1999, we gave due course to the petition (Rollo, pp. 59-60).

    29. Exhibit A, Original Record, Civil Case No. 768-M-93, pp. 105-106, at p. 105.

    30. Exhibit A, Original Record, Civil Case No. 768-M-93, pp. 105-106, at p. 106.

    31. Manuel v. Rodriguez, Et Al., 109 Phil. 1, 11 (1960), citing Worcester v. Ocampo, 34 Phil. 646 (1916); Tuason v. Raymundo, 28 Phil. 635 (1914); Buzon v. Lichauco, 13 Phil. 354 (1909).

    32. Exhibit A, Original Record, Civil Case No. 768-M-93, pp. 105-106, at p. 106.

    33. Rillo v. Court of Appeals, 340 Phil. 570, 577 (1997), citing Roque v. Lapuz, 96 SCRA 741 (1980) and Bricktown Development Corporation v. Amor Tierra Development Corp., 239 SCRA 126 (1994).

    34. Rillo v. Court of Appeals, 340 Phil. 570, 577 (1997).

    35. Rillo v. Court of Appeals, 340 Phil. 570, 577 (1997); Spouses Pangilinan v. Court of Appeals, 345 Phil. 93, 99 (1997); People’s Industrial and Commercial Corporation v. CA, 346 Phil. 189, 204 (1997); and Valarao v. Court of Appeals, 363 Phil. 495, 504 (1999).

    36. Rillo v. CA, 340 Phil. 570, 577 (1997), citing Luzon Brokerage Co., Inc. v. Maritima Bldg. Co., Inc., 86 SCRA 305 (1978).

    37. Petition, Annex "A", Court of Appeals Decision, Rollo, pp. 15-27.

    38. Republic Act No. 6552, Section 5.

    39. Exhibit 2, Original Record, Civil Case No. 768-M-93, p. 107.

    40. Order, Original Record, Civil Case No. 768-M-93, pp. 169-170, at p. 170.

    41. Article 1170, Civil Code.

    42. Decision, Original Record, Civil Case 768-M-93, pp. 146-158, at p. 157.

    43. Palmares v. Court of Appeals, 351 Phil. 664, 679 (1998), citing Abella v. Court of Appeals, 327 Phil. 270 (1996).

    44. In CA-G.R. CV No. 50202.

    G.R. No. 129018   November 15, 2001 - CARMELITA LEAÑO v. COURT OF APPEALS, ET AL.


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