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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
 

   
October-2001 Jurisprudence                 

  • G.R. No. 137841 October 1, 2001 - PEOPLE OF THE PHIL. v. ALBERTO CHUA

  • G.R. No. 117512 October 2, 2001 - REBECCA ALA-MARTIN v. HON. JUSTO M. SULTAN

  • G.R. No. 120098 October 2, 2001 - RUBY L. TSAI v. HON. COURT OF APPEALS EVER TEXTILE MILLS

  • G.R. No. 124037 October 2, 2001 - PEOPLE OF THE PHILIPPINES v. REYNALDO DE GUZMAN

  • G.R. No. 126592 October 2, 2001 - ROMEO G. DAVID v. JUDGE TIRSO D.C. VELASCO, ET AL.

  • G.R. No. 129900 October 2, 2001 - JANE CARAS y SOLITARIO v. HON. COURT OF APPEALS and PEOPLE OF THE PHILIPPINES

  • G.R. No. 133000 October 2, 2001 - PATRICIA NATCHER petitioner v. HON. COURT OF APPEALS AND THE HEIRS OF GRACIANO DEL ROSARIO-LETICIA DEL ROSARIO

  • G.R. No. 133895 October 2, 2001 - ZENAIDA M. SANTOS v. CALIXTO SANTOS, ET AL.

  • G.R. Nos. 135522-23 October 2, 2001 - PEOPLE OF THE PHIL. v. AMORSOLO G. TORRES

  • G.R. No. 137777 October 2, 2001 - THE PRESIDENTIAL AD-HOC FACT FINDING COMMITTEE, ET AL. v. THE HON. OMBUDSMAN ANIANO DESIERTO, ET AL.

  • G.R. No. 138322 October 2, 2001 - GRACE J. GARCIA v. REDERICK A. RECIO

  • G.R. No. 138929 October 2, 2001 - PEOPLE OF THE PHIL. v. FLORENTINO DEL MUNDO

  • G.R. No. 139050 October 2, 2001 - REPUBLIC OF THE PHILIPPINES v. THE COURT OF TAX APPEALS and AGFHA

  • G.R. No. 142877 October 2, 2001 - JINKIE CHRISTIE A. DE JESUS and JACQUELINE A. DE JESUS v. THE ESTATE OF DECEDENT JUAN GAMBOA DIZON

  • G.R. No. 125081 October 3, 2001 - PEOPLE OF THE PHILIPPINES v. REMEDIOS PASCUA

  • G.R. No. 128195 October 3, 2001 - ELIZABETH LEE and PACITA YULEE v. REPUBLIC OF THE PHILIPPINES

  • G.R. Nos. 128514 & 143856-61 October 3, 2001 - PEOPLE OF THE PHILIPPINES v. NILO LEONES

  • G.R. Nos. 142602-05 October 3, 2001 - PEOPLE OF THE PHILIPPINES v. BONIFACIO ARIOLA

  • A.M. No. 01-6-192-MCTC October 5, 2001 - Request To Designate Another Judge To Try And Decide Criminal Case No. 3713

  • A.M. No. RTJ-01-1610 October 5, 2001 - ATTY. EDGAR H. TALINGDAN v. JUDGE HENEDINO P. EDUARTE

  • G.R. No. 124498 October 5, 2001 - EDDIE B. SABANDAL v. HON. FELIPE S. TONGCO Presiding Judge

  • G.R. No. 127441 October 5, 2001 - DOROTEO TOBES @ DOTING v. COURT OF APPEALS

  • G.R. No. 130499 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. PAMFILO QUIMSON @ "NOEL QUIMSON

  • G.R. No. 130962 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. JOSE REAPOR y SAN JUAN

  • G.R. No. 131040 October 5, 2001 - PEOPLE OF THE PHIL. v. MICHAEL FRAMIO SABAGALA

  • G.R. No. 132044 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. ANTONIO @ Tony EVANGELISTA Y BINAY

  • G.R. No. 132718 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. JOSE CASTILLON III and JOHN DOE

  • G.R. Nos. 135452-53 October 5, 2001 - PEOPLE OF THE PHIL. v. IRENEO M. ALCOREZA

  • G.R. No. 139760 October 5, 2001 - FELIZARDO S. OBANDO v. HON. COURT OF APPEALS

  • G.R. No. 144189 October 5, 2001 - R & M GENERAL MERCHANDISE v. COURT OF APPEALS, ET AL.

  • G.R. No. 121948 October 8, 2001 - PERPETUAL HELP CREDIT COOPERATIVE v. BENEDICTO FABURADA

  • G.R. No. 123075 October 8, 2001 - PEOPLE OF THE PHIL. v. PEDRO L. NUELAN

  • G.R. No. 129926 October 8, 2001 - PEOPLE OF THE PHIL. v. NOLE M. ZATE

  • G.R. No. 137599 October 8, 2001 - PEOPLE OF THE PHILIPPINES v. GILBERT BAULITE and LIBERATO BAULITE

  • G.R. No. 138941 October 8, 2001 - AMERICAN HOME ASSURANCE COMPANY v. TANTUCO ENTERPRISES

  • G.R. No. 141297 October 8, 2001 - DOMINGO R. MANALO v. COURT OF APPEALS (Special Twelfth Division) and PAIC SAVINGS AND MORTGAGE BANK

  • A.M. No. 01-9-246-MCTC October 9, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. JUDGE ALIPIO M. ARAGON

  • G.R. No. 138886 October 9, 2001 - PEOPLE OF THE PHILIPPINES v. SP01 WILFREDO LEAÑO SP01 FERDINAND MARZAN SPO1 RUBEN B. AGUSTIN SP02 RODEL T. MADERAL * SP02 ALEXANDER S. MICU and SP04 EMILIO M. RAMIREZ

  • G.R. No. 141182 October 9, 2001 - HEIRS OF PEDRO CUETO Represented by ASUNCION CUETO v. HON. COURT OF APPEALS (SPECIAL FORMER FIRST DIVISION) and CONSOLACION COMPUESTO

  • A.M. No. 99-12-03-SC October 10, 2001 - RE: INITIAL REPORTS ON THE GRENADE INCIDENT THAT OCCURRED AT ABOUT 6:40 A.M. ON DECEMBER 6, 1999

  • G.R. No. 129313 October 10, 2001 - SPOUSES MA. CRISTINA D. TIRONA and OSCAR TIRONA v. HON. FLORO P. ALEJO as Presiding Judge

  • G.R. Nos. 135679 & 137375 October 10, 2001 - PEOPLE OF THE PHILIPPINES v. GODOFREDO RUIZ

  • G.R. No. 136258 October 10, 2001 - PEOPLE OF THE PHIL. v. CARLOS FELICIANO

  • A.M. No. 2001-9-SC October 11, 2001 - DOROTEO IGOY v. GILBERT SORIANO

  • A.M. No. RTJ-99-1485 October 11, 2001 - TEOFILO C. SANTOS v. JUDGE FELICIANO V. BUENAVENTURA

  • G.R. No. 80796 & 132885 October 11, 2001 - PROVINCE OF CAMARINES NORTE v. PROVINCE OF QUEZON

  • G.R. No. 118387 October 11, 2001 - MARCELO LEE v. COURT OF APPEALS and HON. LORENZO B. VENERACION and HON. JAIME T. HAMOY

  • G.R. Nos. 123913-14 October 11,2001

    PEOPLE OF THE PHIL. v. PABLO CALLOS

  • G.R. No. 130415 October 11, 2001 - PEOPLE OF THE PHILIPPINES v. ALVIN YRAT y BUGAHOD and RAUL JIMENA, ET AL.

  • G.R. No. 130562 October 11, 2001 - Brigida Conculada v. Hon. Court Of Appeals

  • G.R. No. 112526 October 12, 2001 - STA. ROSA REALTY DEVELOPMENT CORPORATION v. COURT OF APPEALS

  • G.R. No. 122710 October 12, 2001 - PHILIPPINE NATIONAL BANK v. COURT OF APPEALS and REMINGTON INDUSTRIAL SALES CORPORATION

  • G.R. Nos. 134769-71 October 12, 2001 - PEOPLE OF THE PHIL. v. ROBERTO BATION

  • G.R. No. 137843 October 12, 2001 - PEOPLE OF THE PHIL. v. EDUARDO S. AÑONUEVO

  • G.R. No. 139904 October 12, 2001 - PEOPLE OF THE PHIL. v. CONRADO MERCADO

  • G.R. No. 136470 October 16, 2001 - VENANCIO R. NAVA v. COMMISSION ON AUDIT

  • G.R. No. 140794 October 16, 2001 - PEOPLE OF THE PHIL. v. RICARDO T. AGLIDAY

  • A.M. No. P-00-7-323-RTJ October 17, 2001 - RE: RELEASE BY JUDGE MANUEL T. MURO, RTC, BRANCH 54 MANILA, OF AN ACCUSED IN A NON-BAILABLE OFFENSE

  • A.M. No. P-00-1419 October 17, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. MAGDALENA G. MAGNO

  • A.M. No. RTJ-97-1390 & AM RTJ-98-1411 October 17, 2001 - ATTY. CESAR B. MERIS v. JUDGE CARLOS C. OFILADA

  • G.R. No. 123137 October 17, 2001 - PEOPLE OF THE PHILIPPINES v. PO2 ALBERT ABRIOL

  • G.R. No. 124513 October 17, 2001 - ROBERTO ERQUIAGA v. HON. COURT OF APPEALS

  • G.R. No. 127540 October 17, 2001 - EUGENIO DOMINGO v. HON. COURT OF APPEALS

  • G.R. No. 127830 October 17, 2001 - MANOLET LAVIDES v. ERNESTO B. PRE

  • G.R. No. 129069 October 17, 2001 - PEOPLE OF THE PHIL. v. JULIO R. RECTO

  • G.R. No. 129236 October 17, 2001 - PEOPLE OF THE PHIL. v. RAYMUNDO G. DIZON

  • G.R. No. 129389 October 17, 2001 - PEOPLE OF THE PHILIPPINES v. TEODORICO UBALDO

  • G.R. Nos. 132673-75 October 17, 200

    PEOPLE OF THE PHIL. v. DOMINADOR C. GOMEZ

  • G.R. No. 136291 October 17, 2001 - LETICIA M. MAGSINO v. REPUBLIC OF THE PHILIPPINES

  • G.R. No. 136869 October 17, 2001 - PEOPLE OF THE PHILIPPINES v. DENNIS MAZO

  • G.R. No. 141673 October 17, 2001 - MANUEL L. QUEZON UNIVERSITY/AUGUSTO B. SUNICO v. NLRC (Third Division), ET AL.

  • G.R. No. 142726 October 17, 2001 - PEOPLE OF THE PHIL. v. APOLONIO ACOSTA

  • G.R. No. 143190 October 17, 2001 - ANTONIO P. BELICENA v. SECRETARY OF FINANCE

  • G.R. No. 143990 October 17, 2001 - MARIA L. ANIDO v. FILOMENO NEGADO and THE HONORABLE COURT OF APPEALS

  • G.R. Nos. 121039-45 October 18, 2001 - THE PEOPLE OF THE PHILIPPINES v. MAYOR ANTONIO L. SANCHEZ

  • G.R. No. 132869 October 18, 2001 - GREGORIO DE VERA v. COURT OF APPEALS

  • G.R. No. 143486 October 18, 2001 - PEOPLE OF THE PHILIPPINES v. MARIO DUMAGAY TUADA

  • G.R. No. 144735 October 18, 2001 - YU BUN GUAN v. ELVIRA ONG

  • G.R. No. 116285 October 19, 2001 - ANTONIO TAN v. COURT OF APPEALS and the .C.C.P

  • G.R. Nos. 121201-02 October 19, 2001 - THE PEOPLE OF THE PHILIPPINES plaintiff-appellee v. GIO CONCORCIO @ JUN

  • G.R. No. 129995 October 19, 2001 - THE PROVINCE OF BATAAN v. HON. PEDRO VILLAFUERTE

  • G.R. No. 130730 October 19, 2001 - HERNANDO GENER v. GREGORIO DE LEON and ZENAIDA FAUSTINO

  • G.R. No. 133002 October 19, 2001 - PEOPLE OF THE PHILIPPINES v. INTOY GALLO @ PALALAM

  • G.R. No. 137904 October 19, 2001 - PURIFICACION M. VDA. DE URBANO v. GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)

  • A.M. No. 99-12-497-RTC October 23, 2001 - REQUEST OF JUDGE FRANCISCO L. CALINGIN

  • G.R. No. 121267 October 23, 2001 - SMITH KLINE & FRENCH LABORATORIES v. COURT OF APPEALS, ET AL.

  • G.R. No. 124036 October 23, 2001 - FIDELINO GARCIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 124295 October 23, 2001 - JUDGE RENATO A. FUENTES v. OFFICE OF THE OMBUDSMAN-MINDANAO

  • G.R. No. 125193 October 23, 2001 - MANUEL BARTOCILLO v. COURT OF APPEALS and the PEOPLE OF THE PHILIPPINES

  • G.R. No. 130846 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ROGELIO PAMILAR y REVOLIO

  • G.R. No. 131841 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. RUBEN VILLARMOSA

  • G.R. No. 132373 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. TIRSO ARCAY @ "TISOY" and TEODORO CLEMEN @ "BOY

  • G.R. No. 134740 October 23, 2001 - IRENE V. CRUZ v. COMMISSION ON AUDIT

  • G.R. No. 135481 October 23, 2001 - LIGAYA S. SANTOS v. COURT OF APPEALS, ET AL.

  • G.R. No. 136105 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ANTONIO PAREDES y SAUQUILLO

  • G.R. No. 136337 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. NELSON CABUNTOG

  • G.R. No. 139114 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ROMAN LACAP Y CAILLES

  • G.R. No. 139274 October 23, 2001 - QUEZON PROVINCE v. HON. ABELIO M. MARTE

  • G.R. No. 139329 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ERLINDO MAKILANG

  • G.R. Nos. 140934-35 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. CONDE RAPISORA y ESTRADA

  • A.M. No. RTJ-01-1634 October 25, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. SILVERIO Q. CASTILLO

  • G.R. No. 102367 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. ABUNDIO ALBARIDO and BENEDICTO IGDOY

  • G.R. No. 126359 October 25, 2001 - PEOPLE OF THE PHIL v. CARLITO OLIVA

  • G.R. No. 127465 October 25, 2001 - SPOUSES NICETAS DELOS SANTOS v. COURT OF APPEALS

  • G.R. No. 133102 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. DINDO AMOGIS y CRINCIA

  • G.R. Nos. 134449-50 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. PEDRO HERNANDEZ y PALMA

  • G.R. No. 135813 October 25, 2001 - FERNANDO SANTOS v. Spouses ARSENIO and NIEVES REYES

  • G.R. No. 135822 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. PIO DACARA y NACIONAL

  • G.R. Nos. 137494-95 October 25, 2001 - THE PEOPLE OF THE PHILIPPINES v. SOTERO REYES alias "TURING"

  • G.R. Nos. 142741-43 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. ROMEO MANAYAN

  • A.M. No. P-01-1474 October 26, 2001 - ANTONIO C. REYES v. JOSEFINA F. DELIM

  • G.R. No. 120548 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. JOSELITO ESCARDA

  • G.R. Nos. 121492 & 124325 October 26, 2001 - BAN HUA UY FLORES v. JOHNNY K.H. UY

  • G.R. No. 132169 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. SANICO NUEVO @ "SANY

  • G.R. No. 133741-42 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. LINO VILLARUEL

  • G.R. No. 134802 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. RENATO Z. DIZON

  • G.R. No. 135920 October 26, 2001 - ENCARNACION ET AL. v. SEVERINA REALTY CORPORATION

  • G.R. No. 140719 October 26, 2001 - NICOLAS UY DE BARON v. COURT OF APPEALS

  • G.R. No. 140912 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. RODRIGO DIAZ Y SEVILLETA

  • G.R. No. 141540 October 26, 2001 - EDUARDO TAN v. FLORITA MUECO and ROLANDO MUECO

  • G.R. No. 143231 October 26, 2001 - ALBERTO LIM v. PEOPLE OF THE PHILIPPINES

  • G.R. No. 144237 October 26, 2001 - WINSTON C. RACOMA v. MA. ANTONIA B. F. BOMA

  • G.R. Nos. 146319 & 146342 October 26, 2001 - BENJAMIN E. CAWALING v. THE COMMISSION ON ELECTIONS

  • G.R. No. 146593 October 26, 2001 - UNITED COCONUT PLANTERS BANK v. ROBERTO V. ONGPIN

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    G.R. No. 135920   October 26, 2001 - ENCARNACION ET AL. v. SEVERINA REALTY CORPORATION

     
    PHILIPPINE SUPREME COURT DECISIONS

    FIRST DIVISION

    [G.R. No. 135920. October 26, 2001.]

    ENCARNACION, RUFINA, MATEA, LAUREANA, FRANCISCO, + MARINA, and RICARDO, all surnamed ESPIRITU, THE HEIRS OF FLORA ESPIRITU, namely MERCEDES, RODOLFO, CHARITO, CERILO, EFREN and ADELAIDA, all surnamed TRINIDAD, Petitioners, v. SEVERINA REALTY CORPORATION, and THE REGISTER OF DEEDS OF PARAÑAQUE, Respondents.

    D E C I S I O N


    PARDO, J.:


    The Case


    The case is an appeal from the decision of the Court Appeals 1 setting aside the orders of the trial court denying petitioners’ motion to dismiss the complaint and ordering its dismissal on the grounds of prescription and res judicata.chanrob1es virtua1 1aw 1ibrary

    The Facts


    The facts, as found by the Court of Appeals, are as follows:jgc:chanrobles.com.ph

    "The late Daniel Espiritu was one of the co-owners pro-indiviso of lots 1, 2, 3, and 4 of Plan PSU-167606-B consisting of about 10, 510 square meters (hereafter called subject property). By virtue of a document denominated deed of sale dated 07 April 1969 purportedly executed by private respondents, subject property was sold for value to Investment and Development, Inc. Investment and Development, Inc. in turn purportedly sold the subject property to petitioner by virtue of a deed of sale dated 07 March 1979. Thereafter, petitioner filed an application for land registration of the subject property in LRC No. Pq-561-P with the then Court of First Instance of Rizal, Branch 29, stationed at Pasay City. In due course and after proceedings held, the said court in its decision dated 18 September 1981 ordered the issuance of Decree No. N-187142 and OCT No. 116 covering subject property, in the name of petitioner. The Land Registration Commission on 04 January 1983 issued OCT No. 116.

    "As earlier mentioned, private respondents commenced Civil Case No. 96-0111 by filing a complaint on 27 February 1996. Notices of lis pendens were annotated on 01 March 1996 on the various TCTs arising from OCT No 116.

    "On verbal motion of counsel of petitioner that a preliminary hearing be held on its affirmative/special defenses as grounds for motion to dismiss and over the objection of counsel of private respondents, respondent Judge scheduled a hearing for it. On the basis of petitioner’s manifestation that its evidence are merely documentary, the trial court gave it 15 days to file said evidence and a like period for private respondents to file their evidence. Petitioner herein made its formal offer of documentary evidence in support of its motion to dismiss. On the other hand, private respondents presented four witnesses in the persons of 1.) Atty. Roque O. Santos; 2.) Encarnacion Espiritu; 3.) Alejandro G. Gallos; and, 4.) Ricardo Espiritu.

    "On 15 July 1997, respondent Judge issued the first questioned order denying petitioner’s motion to dismiss, "for lack of factual and legal basis." Petitioner’s motion for reconsideration subsequently filed suffered the same fate in respondent judge’s order dated 07 October 1997. Hence, this petition citing as grounds for nullifying the questioned orders, the following.

    "a.) That the Hon. Respondent Judge acted with grave abuse of discretion tantamount to lack of jurisdiction or excess of jurisdiction in holding in his Order dated July 15, 1997, that the contention of defendant now petitioner Severina Realty Corporation that the Court has no jurisdiction to hear and decide the within action, is clearly without basis, further holding that it is not simply exercising to annul the judgment of co-equal and coordinate court;chanrob1es virtua1 1aw 1ibrary

    "b) That the respondent Judge also acted with grave abuse of discretion, tantamount to excess of jurisdiction in holding in said order July 15, 1997 that on the issue of RES JUDICATA, it appears that the cause of action in LRC No. Pq-561-P and in the present controversy are not identical, the former being an action in REM since it was directed on the land in question and the latter is an action in personam since it is a suit against the defendant.

    "c) That the respondent Judge also acted with grave abuse of discretion, tantamount to lack of jurisdiction or excess of jurisdiction, in holding in his said order dated July 15, 1997, that the issue of prescription, New Civil Code provides that an action prescribed by mere lapse of time fixed by the law, that same code states that if the contract is void ab initio, action or defense for declaration of inexistence of the contract does not prescribe;

    "d) The respondent Judge acted with grave abuse of discretion, tantamount to excess of jurisdiction or lack of jurisdiction, in holding with respect to want of cause action, the Court disagree with the defendant corporation." 2

    On July 26, 1996, the trial court issued an order denying petitioners’ motion for production of document since the same is neither in the possession nor control of Severina. 3

    On July 29, 1996, at the pre-trial Severina orally moved that a hearing on her affirmative defenses be conducted, as if a motion to dismiss had been filed, which petitioner opposed.

    The trial court conducted hearings. Severina simply presented documents consisting of the decision in LRC Case No. Pq-561-P.

    On July 15, 1997, the trial court issued an order denying Severinas’ affirmative and special defenses, the dispositive portions of which reads:jgc:chanrobles.com.ph

    "In the light of the foregoing, the Affirmative/Special defenses interposed by herein defendant Corporation is hereby DENIED for lack of factual and legal basis.

    "SO ORDERED." 4

    On October 28, 1997, respondents filed with the Court of Appeals a petition for certiorari to nullify the orders of the trial court. 5

    After due proceedings, on June 19, 1998, the Court of Appeals promulgated a decision, the dispositive portion of which reads:jgc:chanrobles.com.ph

    "WHEREFORE, the orders dated 15 July 1997 and 7 October 1997 are hereby SET ASIDE and the complaint in Civil Case No. 96- 0111 entitled "ENCARNACION, MATEA, LAUREANA, FRANCISCO, RUFINA, MARINA and RICARDO, all surnamed ESPIRITU, the Heirs of FLORA ESPIRITU, namely: MERCEDES, RODOLFO, CHARITO, CERILLO, EFREN and ADELAIDA, all surnamed TRINIDAD, Plaintiffs, versus SEVERINA REALTY CORPORATION and the REGISTER OF DEEDS OF PARAÑAQUE, Defendants," is ordered DISMISSED.chanrob1es virtua1 1aw 1ibrary

    "SO ORDERED." 6

    Hence, this petition. 7

    The Issues


    Petitioners raise the following issues: 8

    1. Whether or not the Court of Appeals erred in dismissing Civil Case No. 96-0111, on the ground of prescription of action; and

    2. Whether or not the Court of Appeals erred in ruling that the complaint is barred by res judicata.

    According to petitioners, the Court of Appeals over-looked that lapse of time is not the only determining factor in computing prescription of actions. Aside from time, the nature of the action is to be taken into consideration because there are actions that the law declares to be imprescriptible. 9

    Petitioners argue that an action for declaration of the nullity of a fictitious and simulated deed of sale is imprescriptible. Under Article 1410, Civil Code, the action or defense for the declaration of the inexistence of a contract does not prescribe. 10

    The fact that the contract of sale is fictitious is evident in the testimony of Encarnacion Espiritu, an heir of the late Daniel Espiritu. She testified that the property, consisting of almost one (1) hectare, was taken by Severina through the use of a fake document. Severina did not even have a xerox copy of the deed of sale supposedly signed by Flora Espiritu conveying the property to Investment and Development, Inc., which then sold the property to Severina.chanrob1es virtua1 1aw 1ibrary

    We agree that an action for declaration of the inexistence of a contract does not prescribe. 11

    As to the second issue, petitioners posit the view that before res judicata may be invoked as a bar to subsequent action, it is essential that the person must be bound by prior proceedings. He must be a party thereto and must have been notified of the proceedings. In Vencilao v. Vano, 12 "we held that when a person is a party to a registration proceeding or when notified he does not want to participate and only after the property has been adjudicated to another and the corresponding title issued, he files an action for reconveyance, the doctrine of res judicata will bar him." Clearly then before res judicata may set in, petitioners must have been notified of LRC Case No. Pq-561-P.

    There is no evidence to show that petitioners were notified of the LRC proceedings. In the absence of such determination. the Court of Appeals erred m applying res judicata for if it turns out that there was no such notice and due process, the LRC decision was void, and in legal effect, was no judgment at all. 13

    Under the principle of res judicata, a former judgment would bar a subsequent action when the following requisites concur: (1) It must be a final judgment or order; (2) the court rendering the same must have jurisdiction over the subject matter and over the parties; (3) it must be a judgment or order on the merits; (4) there must be between the two cases, identity of parties, identity of subject matter and identity of action. 14 A judgment which is void ab initio is non-existent and cannot acquire finality. 15

    In this case, there is no identity of subject matter and causes of action. An action for declaration of the inexistence of contract is not identical to a land registration proceedings.

    The Fallo

    WHEREFORE, the petition is GRANTED. The decision of the Court of Appeals in CA-G. R. SP No. 45754, is REVERSED and SET ASIDE. Let the case be remanded to the trial court for further proceedings.chanrob1es virtua1 1aw 1ibrary

    No costs.

    SO ORDERED.

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

    Endnotes:



    + Deceased.

    1. In CA-G. R. SP No. 45754, promulgated on J me 19, 1998. Guerrero, J., ponente, Buena (now Supreme Court Associate Justice) and Hormachuelos, JJ., concurring.

    2. Petition, Annex "A", Rollo, pp. 26-31, at pp. 27-29.

    3. Petition for Review, Rollo, p. 9.

    4. Petition, Annex "D", Rollo, 48-50.

    5. Petition, CA Rollo, pp. 1-20.

    6. Petition, Annex "A", Rollo, pp. 26-31, at pp. G 0-3 1

    7. Petition for Review, Rollo, pp. 3-24. On August 2, 1999, we gave due course to the petition (Rollo, pp. 131-132).

    8. Ibid., pp. 11, 17.

    9. Ibid., p. 12.

    10. Ibid.

    11. Article 1410, Civil Code.

    12. 182 SCRA 491, 499 [1990].

    13. Republic v. Court of Appeals, 368 Phil. 412, 424-425 [1999], citing MWSS v. Sison, 124 SCRA 394, 404 [1983]; Arcelona v. Court of Appeals, 345 Phil. 250, 286-287 [1997], citing Leonor v. Court of Appeals, 326 Phil. 74,88 [1996]; AFP Mutual Benefit Asso., Inc. v. NLRC, 334 Phil. 712, 725 [1997]; People v. Velasco, G. R. No. 127444, September 13, 2000.

    14. Dr. Santos v. Gabriel 150-A Phil. 641, 646-647 [1972]; Viray v. Marinas, 151 Phil. 148, 153 [1973]; Benin v. Tuason, 156 Phil. 525, 586 [1974]; Firestone Ceramics, Inc. v. Court of Appeals, 313 SCRA 522, 536 [1999].

    15. Barde v. Posiquit, 164 SCRA 304, 311 [1998]; Leonor v. Court of Appeals, supra, Note 13, citing Banco Español-Filipino v. Palanca, 37 Phil. 921, 949 [1918].

    G.R. No. 135920   October 26, 2001 - ENCARNACION ET AL. v. SEVERINA REALTY CORPORATION


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