July 2004 - Philippine Supreme Court Decisions/Resolutions
Philippine Supreme Court Jurisprudence
Rayos v. CA: 135528 : July 14, 2004 : J. Callejo Sr : Second Division : Decision
SECOND DIVISION
[G.R. NO. 135528. July 14, 2004]
SPOUSES ORLANDO A. RAYOS and MERCEDES T. RAYOS, Petitioners, v. THE COURT OF APPEALS and SPOUSES ROGELIO and VENUS MIRANDA, Respondents.
D E C I S I O N
CALLEJO, SR., J.:
This is a Petition for Review on Certiorari of the Decision1 of the Court of Appeals2 in CA-G.R. CV No. 46727 which affirmed the Decision3 of the Regional Trial Court of Makati, Branch 62, in Civil Case No. 15639 for specific performance and damages, and Civil Case No. 15984 for sum of money and damages.
The two (2) cases stemmed from the following antecedent facts:chanroblesvirtua1awlibrary
On December 24, 1985, petitioner Orlando A. Rayos, a practicing
lawyer, and his wife, petitioner Mercedes T. Rayos, secured a short-term loan
from the Philippine Savings Bank (PSB) payable within a period of one (1) year
in quarterly installments of P29,190.28, the first quarterly payment to
start on March 24, 1986.
The loan was
evidenced by a promissory note which the petitioners executed on December 24,
1985.4 To secure the payment of the loan, the petitioners-spouses executed, on the
same date, a Real Estate Mortgage over their property covered by Transfer
Certificate of Title (TCT) No. 100156 located in Las Pias, Metro Manila.5 cralawred
On December 26, 1985, the Petitioners, as vendors, and the
respondents, Spouses Miranda, as vendees, executed a Deed of Sale with
Assumption of Mortgage over the subject property for the price of P214,000.00.
However, on January 29, 1986, the
petitioners-spouses, likewise, executed a Contract to Sell the said property in
favor of the respondents for P250,000.00 with the following condition:chanroblesvirtua1awlibrary
3. That upon full payment of the consideration hereof, the SELLER shall execute a Deed of Absolute Sale in favor of the BUYER that the payment of capital gains tax shall be for the account of the SELLER and that documentary stamps, transfer tax, registration expenses for the transfer of title including the notarization and preparation of this Contract and subsequent documents if any are to be executed, real estate taxes from January 1, 1986 and other miscellaneous expenses shall be for the account of the BUYER; the SELLER hereby represents that all association dues has been paid but that subsequent to the execution of this Contract the payment of the same shall devolve upon the BUYER.6 cralawred
The petitioners obliged themselves to execute a deed of absolute sale over the property in favor of the respondents upon the full payment of the purchase price thereof.
Respondent Rogelio Miranda filed an application dated May 4, 1986
with the PSB to secure the approval of his assumption of the petitioners
obligation on the loan, and appended thereto a General Information sheet.7 Respondent Rogelio Miranda stated therein that he was the Acting Municipal
Treasurer of Las Pias and had an unpaid account with the Manila Banking
Corporation in the amount of P18,777.31.The PSB disapproved his application.Nevertheless, respondent Rogelio Miranda paid the first quarterly
installment on the petitioners loan on March 21, 1986 in the amount of P29,190.28.
The said amount was paid for the account of
the petitioners.
Respondent Rogelio
Miranda, likewise, paid the second quarterly installment in the amount of P29,459.00
on June 23, 1986, also for the account of the petitioners.8 cralawred
In the meantime, respondent Rogelio Miranda secured the services
of petitioner Orlando Rayos as his counsel in a suit he filed against the
Manila Banking Corporation, relative to a loan from the bank in the amount of P100,000.00.
Both parties agreed to the payment of attorneys
fees, as follows:chanroblesvirtua1awlibrary
Our agreement is as follows:
1.
