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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
 

   
May-2010 Jurisprudence                 

  • [G.R. No. 21924, May 12, 2010] SING JUCO, PLAINTIFF AND APPELLANT, VS. BENJAMIN CUAYCONG, AGATON TONGOY AND MARIANO RAMOS, DEFENDANTS AND APPELLEES.

  • [G.R. No. 47864 : May 12, 2010] GAUDENCIO C. HIQUIANA ET AL., PETITIONERS-APPELLEES, VS. ISMAEL L. VELOSO, ETC., RESPONDENT-APPELLANT.

  • [G.R. No. 174719 : May 05, 2010] HEIRS OF MARIO PACRES, NAMELY: VALENTINA VDA. DE PACRES, JOSERINO, ELENA, LEOVIGILDO, LELISA, AND LOURDES ALL SURNAMED PACRES, AND VEÑARANDA VDA. DE ABABA, PETITIONERS, VS. HEIRS OF CECILIA YGOÑA, NAMELY BAUDILLO YGOÑA YAP, MARIA YAP DETUYA, JOSEFINA YAP, EGYPTIANA YAP BANZON, AND VICENTE YAP[1] AND HILARIO RAMIREZ, RESPONDENTS.

  • [G.R. No. 164703 : May 04, 2010] ALLAN C. GO, DOING BUSINESS UNDER THE NAME AND STYLE "ACG EXPRESS LINER," PETITIONER, VS. MORTIMER F. CORDERO, RESPONDENT. [G.R. No. 164747] MORTIMER F. CORDERO, PETITIONER, VS. ALLAN C. GO, DOING BUSINESS UNDER THE NAME AND STYLE "ACG EXPRESS LINER," FELIPE M. LANDICHO AND VINCENT D. TECSON, RESPONDENTS.

  • [G.R. No. 175200 : May 04, 2010] NATIONAL HOUSING AUTHORITY, PETITIONER, VS. THE DEPARTMENT OF AGRARIAN REFORM ADJUDICATION BOARD AND MATEO VILLARUZ, SUBSTITUTED BY HIS HEIRS, NAMELY, SONIA VILLARUZ, MARGARITA VILLARUZ AND CARLOS H. VILLARUZ, RESPONDENTS.

  • [G.R. No. 181068 : May 04, 2010] PEOPLE'S AIR CARGO AND WAREHOUSING CO., INC, PETITIONER, VS. HONORABLE FRANCISCO G. MENDIOLA, IN HIS CAPACITY AS PRESIDING JUDGE OF THE REGIONAL TRIAL COURT OF PASAY CITY, BRANCH 115, AND CATHAY PACIFIC AIRWAYS, LTD., RESPONDENTS.

  • [G.R. No. 187049 : May 04, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. LITO MACAPANAS Y ECIJA, ACCUSED-APPELLANT.

  • [G.R. No. 191550 : May 04, 2010] HENRY "JUN" DUEÑAS, JR., PETITIONER, VS. HOUSE OF REPRESENTATIVES ELECTORAL TRIBUNAL AND ANGELITO "JETT" P. REYES, RESPONDENTS.

  • [G.R. No. 180062 : May 05, 2010] GOVERNMENT SERVICE INSURANCE SYSTEM, PETITIONER, VS. BOARD OF COMMISSIONERS (2ND DIVISION), BOARD OF COMMISSIONERS OF THE HOUSING AND LAND USE REGULATORY BOARD (HLURB) HLURB NATIONAL CAPITAL REGION FIELD OFFICE, SPOUSES MARCELINO H. DE LOS REYES AND ALMA T. DE LOS REYES, AND NEW SAN JOSE BUILDERS, INC., RESPONDENTS.

  • [G.R. No. 141508 : May 05, 2010] ROBERTO S. BENEDICTO AND TRADERS ROYAL BANK, PETITIONERS, VS. MANUEL LACSON, A & A MONTELIBANO HIJOS, INC., ROBERTO ABELLO, DOMINADOR AGRAVANTE, LUISA ALANO, ALEXANDER FARMS, INC., ANGELA ESTATE, INC., GUILLERMO AND DOROTHY ARANETA, LETECIA ARANETA, ARCEO RAMOS & SONS, INC., SPOUSES GEORGE & LOURDES ARGUELLES, ASOSACION DE HACENDEROS DE SILAY-SARAVIA, INC. (AHSSI), SALVADOR BAUTISTA, BJB AGRO-INDUSTRIAL CORP., EUGENIO BAUTISTA, LUZ RAMOS BAYOT, CYNTHIA BENEDICTO, EVA BENEDICTO, LEOPOLDO BENEDICTO, MARY JANE BENEDICTO, FLORO BONGCO, FRANCISCO BONGCO, GERARDO BONGCO, MAXCY BORROMEO, QUIRICO CAMUS, CELSO AGRO INDUSTRIAL CORP., JULIA SO DE UYCHIAT, ARTURO UYCHIAT, LUIS UYCHIAT, ELISE UYCHIAT, CIRO LOCSIN AGRICULTURAL CORPORATION, CLAMONT FARMS, INC., SAGRARIO CLAPAROLS, JAIME CLAPAROLS, CLAUDIO LOPEZ, INC., RAMON CLEMENTE, SPOUSES ROMY CONLU AND ASUCENA DIASATA, SPOUSES CORNELIO AND DOLORES CONSING, LOPE CONSING, SPOUSES RAFAEL AND JULIETA CONSOLACION, BALCONER CORDOVA, CONSOLING CORDOVA, RAFAEL COSCULLUELA, CLK AGRO DEVELOPMENT CORP., EMILIO CUAYCONG, JR., SPOUSES JOSE ROBERTO AND PATRICIO CUAYCONG, ROMELI CUAYCONG, SONYA CUAYCONG, FELIPE DALIMO-OS, UBERTA DALIMO-OS, DELARICA REALTY, DOLL AGRICULTURAL CORP., DR. ANTONIO LIZARES CO., INC., SPOUSES BONIFACIO AND URBANA DUJON, ELAR AGRO INDUSTRIAL CORP., ELCEE FARMS, INC., ESTATE OF FERNANDO ERENETA, SPOUSES BENJAMIN AND TERESITA ESTACIO, EUSEBIO INCORPORATED, FARMLAND INCORPORATED, FELICIA AGRI DEVELOPMENT CORP., FELISA AGRI CORPORATION, SPOUSES ROLANDO AND NELLY FERMIN, FERTI-ACRES AGRI-CULTURAL CORPORATION, FRANCISCO JAVIER LACSON Y HERMANOS, GAMBOA HERMANOS, INC., HONORATO GAMBOA, ESTATE OF REMEDIOS GAMBOA, ANTONIO GASTON, HEIRS OF GERARDO GASTON, ESTATE OF JOSE MA. GASTON, VICTOR MA. GASTON, JOSE MA. GASTON, JOSE MA. GOLEZ, ANTONIO GONZAGA, ERNESTO GONZAGA, JESUS GONZAGA, LUIS GONZAGA, GONZAGA REAL ESTATE ENTERPRISES, INC., ROBERT GONZAGA, GREEN SOILS AGRICULTURE, INC., ESTATE OF REMEDIOS L. VDA. DE GUINTO, WARLITO USTILO, G.V. & SONS, INC., ENCARNACION HERNAEZ, SPOUSES MIGUEL AND CECILIA MAGSAYSAY, ADELINO HERNANDEZ, SPOUSES ABELARDO AND EMILY HILADO, SPOUSES ALFREDO AND TERESITA HILADO, RAMON HILADO, SPOUSES REMO AND ELSIE HINLO, SPOUSES DANILO AND NIMFA HINLO, MA. CRISTINA HOJILLA, DIOSDADO AND DIONISIO HOSALLA, JALIMONT REALTY, INC., ALBERTO AND BENJAMIN JALANDONI, DANIEL JALANDONI, JALKK CORPORATION, LEONOR JAVELLANA, ERIBERTO JESENA, PISON JESUSA AND SISTERS, JISARA AGRI DEVELOPMENT CORPORATION, J.H. TAMPINCO AGRICULTURAL CORP., LILIA LOPEZ DE JISON, ROBERTO JISON, JOMILLA AGRO INDUSTRIAL VENTURES, INC., BENIGNA JONOTA, JOSEFINA RODRIGUEZ AGRICULTURAL CORP., JT ALUNAN AGRI. CORP., ANTONIO JUGO, SPOUSES JUANITO JUMILLA AND SANTAS DALIMO-OS, ESTATE OF CASILDA JUSTINIANI, SPOUSES ALEJANDRO AND ANTONIO KANA- AN, AGUSTIN KILAYCO, SPOUSES RODOLFO AND EMMA LACSON, EMMANUEL LACSON, ESTATE OF ERNESTO LACSON, LACSON HERMANOS, INC., ESTATE OF FELIPE LACSON, MANUEL LACSON, ESTATE OF MANUELA VDA. DE LACSON, PEDRO LACSON, RAMON LACSON, SR., TERESA LACSON, RODRIGO LACSON, LACTOR ESTATE DEVELOPMENT CORP., LIBERTINO AGUTANG, CARMEN CONSING LA'O, JOSE LA'O, JULIA LA'O, LA SALVACION AGRICULTURAL CORP., ENRIQUE LEDESMA, LEDESMA HERMANOS, INC., JESUS LEDESMA, SPOUSES JOSE MA. AND EVA LEDESMA, LEGA FARMS, CORP., ESTATE OF ANASTACIO LEGARDE, LIMJAP-ALUNAN AGRI, JESUS LIZARES, JOSE LIZARES, LUIS LIZARES, NILO LIZARES, SR. AND JR., SPOUSES JOSE AND PERLA LIZARES, ROBERTO LIZARES, ANTONIO LOCSIN, FEDERICO LOCSIN, JR., SPS. ROBERT AND JEAN MARIE WINEBURGER, ESTATE OF JOSE LOCSIN, OSCAR LOCSIN, SPOUSES JOSE MA. AND MARGARITA LOCSIN, VICENTE LOCSIN, LONOY AGRICULTURAL CORP., DOLORES LOLITA VDA. DE LOPEZ, FORTUNATO LOPEZ, NER LOPEZ, ESTATE OF NIEVES LOPEZ, POMPEYO LOPEZ, ROSENDO LOPEZ, ARTURO DE LUZURIAGA, CLAUDIO DE LUZURIAGA, CATALINA VDA. DE MAKILAN, BENITO MALAN, BASILIO MANALO, MANCY & SONS, INC., MANILAC AGRO COMMERCIAL CORP., SPOUSES MANUEL AND LUISA MANOSA, JULIO AND GENEVIEVE MAPA, MAPLE AGRI-CORP., INC., MARLAND AGRICULTURAL CORP., MARVIA & CO., INC., ANTONIO MENDOZA, BERNARDO MENDOZA, JR., SPOUSES BERNARDO AND ROSARIO MENDOZA, MALAURIE AGRICULTURAL DEVELOPMENT CORP., HEIRS OF MANUEL AND CEFERINO MONFORT, ESTATE OF MANUEL MONFORT, JR., SPOUSES EMILIO AND LINDA MONTALVO, MONTILLA SISTERS AGRICULTURAL CORP., ANTONIO MONTINOLA, NIEVES AGRO-INDUSTRIAL DEVELOPMENT CORP., MAMERTO DE OCA, O. LEDESMA & CO., INC., HEIRS OF MERCEDES PABIANA, TEODULO PABIANA, ESTATE OF ROSARIO PALENZUELA, ESTATE OF ENCARNACION PANLILIO, JOSE PASCUAL, JOHNNY DE LA PENA, ANICETA PERDIGUEROS, AQUILES PERDIGUEROS, LUISA PEREZ, CRISTINA PERTIERRA, PHISON FARMS, INC., ESTATE OF JOSEFINA PICCIO, PISON-LOCSIN KAUTURAN, NICOLAS POLINARIO, PUYAS AGRO, INC., ESTATE OF LEONOR DE LA RAMA, LUIS RAMA, RAMON DE LA RAMA AGRO DEVELOPMENT CORP., REMO RAMOS, BENJAMIN RAMOS, MARIANO RAMOS, SPOUSES ENRIQUE AND TERESITA REGALADO, SPS. JOSE MA. AND AMELIA REGALADO, MANUEL REGALADO, AQUILINO REONIR, RHE & SONS AGRO INDUSTRIAL CORP., ROAM AGRICULTURAL CORP., AMANDO ROBILLO, ROMALUX AGRI FARMS, INC., LETECIA DEL ROSARIO, MANUEL DEL ROSARIO, EULALIA ROSELLO, ROSENDO H. DE LA RAMA & CO., BIBIANO SABINO, SPOUSES REINHARDT AND CORAZON SAGEMULLER, PEDRO SAJO, SPOUSES AQUILES AND MA. CRISTINA SAJO, SAN ANTONIO FARMS, JOSE MA. SANTOS, MARCELINO SAUSI, STA. CLARA ESTATE, INC., SPOUSES FRANCISCO AND JULITA SERRIOS, ANTONIO SIAN, SIASON- DITCHING AGRO INDUSTRIAL CORP., SPOUSES LUCRECIO SORIANO AND LIBERATA DALIMO- OS, IMELDA TAMPINCO, T. GENSOLI & CO., TINIHABAN AGRICULTURAL CORP., SPOUSES LINO AND THELMA TOLEDO, FRANCISCO TORIANO, GODOFREDO TORIANO, LUCRECIO TORIANO, MOISES TORIANO, TOTA, INC., DEMOCRITO TRECHO, JESUSA TRECHO, PABIO TRECHO, RUFINO TRECHO, ESTATE OF FLORENTINO TREYES, ESTATE OF VICTOR TREYES, FERNANDO TREYES, LILIA TREYES, SOCORRO TUVILLA, FRANCIS TUVILLA, SPS. JOE MARIE AND VICTORIA TUVILLA, JOSE URBANOZO, JR., ESTATE OF ROSARIO VALENCIA, EDUARDO DE VENECIA, VICTORIAS MILLING, CO., INC., SPOUSES EDSEL AND RITA VILLACIN, JOSEFA VILLAERA, VILLALAYA AGRO DEVELOPMENT, SERAFIN VILLANUEVA, IRVING VILLASOR, DOMINICIANO VINARTA, ROSENDO AND CANDIDO VINARTA, BERNARD YBIERNAS, ESTRELLA YBIERNAS, SPOUSES CARLOS AND EDITH YLANAN, BENITO YOUNG, SPOUSES RENATO AND VICTORIA YULO, AND JESUS YUSAY, RESPONDENTS.

  • [G.R. No. 143591 : May 05, 2010] TEODORO C. BORLONGAN, JR., CORAZON M. BEJASA, ARTURO E.MANUEL, JR., ERIC L. LEE, P. SIERVO H. DIZON, BENJAMIN DE LEON, DELFIN C. GONZALES, JR., AND BEN YU LIM, JR., PETITIONERS, VS. MAGDALENO M. PEÑA AND HON. MANUEL Q. LIMSIACO, JR., AS JUDGE DESIGNATE OF THE MUNICIPAL TRIAL COURT IN CITIES, BAGO CITY, RESPONDENTS.

  • [G.R. No. 163267 : May 05, 2010] TEOFILO EVANGELISTA, PETITIONER, VS. THE PEOPLE OF THE PHILIPPINES, RESPONDENT.

  • [G.R. No. 172708 : May 05, 2010] PEOPLE OF THE PHILIPPINES, APPELLEE, VS. JOSEPH AMPER Y REPASO, APPELLANT.

  • [G.R. No. 178087 : May 05, 2010] COMMISSIONER OF INTERNAL REVENUE, PETITIONER, VS. KUDOS METAL CORPORATION, RESPONDENT.

  • [G.R. No. 184800 : May 05, 2010] WONINA M. BONIFACIO, JOCELYN UPANO, VICENTE ORTUOSTE AND JOVENCIO PERECHE, SR., PETITIONERS,VS. REGIONAL TRIAL COURT OF MAKATI, BRANCH 149, AND JESSIE JOHN P. GIMENEZ, RESPONDENTS.

  • [G.R. No. 181847 : May 05, 2010] PUBLIC ESTATES AUTHORITY NOW PHILIPPINE RECLAMATION AUTHORITY, PETITIONER,VS. ESTATE OF JESUS S. YUJUICO, REPRESENTED BY BENEDICTO V. YUJUICO AND EDILBERTO V. YUJUICO; AND AUGUSTO Y. CARPIO, RESPONDENTS.

  • [G.R. No. 187556 : May 05, 2010] PLANTERS DEVELOPMENT BANK, PETITIONER, VS. JAMES NG AND ANTHONY NG, RESPONDENTS.

  • [G.R. No. 187200 : May 05, 2010] GOLDEN ACE BUILDERS AND ARNOLD U. AZUL, PETITIONERS,VS. JOSE A. TALDE, RESPONDENT.

  • [G.R. No. 148892 : May 06, 2010] LAND BANK OF THE PHILIPPINES, PETITIONER, VS. LUZ L. RODRIGUEZ, RESPONDENT.

  • [A.M. No. 09-9-163-MTC : May 06, 2010] RE: CASES SUBMITTED FOR DECISION BEFORE HON. TERESITO A. ANDOY, FORMER JUDGE, MUNICIPAL TRIAL COURT, CAINTA, RIZAL.

  • [G.R. No. 170515 : May 06, 2010] MARMOSY TRADING, INC. AND VICTOR MORALES, PETITIONERS, VS. COURT OF APPEALS, NATIONAL LABOR RELATIONS COMMISSION, HON. LABOR ARBITER ELIAS H. SALINAS AND JOSELITO HUBILLA, RESPONDENTS.

  • [G.R. Nos. 180772 and 180776 : May 06, 2010] LAND BANK OF THE PHILIPPINES [LBP], PETITIONER, VS. DOMINGO AND MAMERTO SORIANO, RESPONDENTS.

  • [G.R. No. 179038 : May 06, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. JOSEPH SERRANO AND ANTHONY SERRANO,ACCUSED-APPELLANTS.

  • [G.R. No. 186134 : May 06, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. JOEL ROA Y VILLALUZ, ACCUSED-APPELLANT.

  • [G.R. No. 189402 : May 06, 2010] LIGAYA SANTOS AND ROBERT BUNDA, PETITIONERS, VS. DOMINGO I. ORDA, JR., RESPONDENT.

  • [G.R. No. 189602 : May 06, 2010] HEIRS OF ALFREDO ZABALA, REPRESENTED BY MENEGILDA ZABALA, ROLANDO ZABALA, MANUEL ZABALA, MARILYN ZABALA, AND ADELINA ZABALA, PETITIONERS, VS. HON. COURT OF APPEALS, VICENTE T. MANUEL AND/OR HEIRS OF VICENTE T. MANUEL, RESPONDENTS.

  • [G.R. No. 191771 : May 06, 2010] LIBERAL PARTY, REPRESENTED BY ITS PRESIDENT MANUEL A. ROXAS II AND SECRETARY GENERAL JOSEPH EMILIO A. ABAYA, PETITIONER, VS. COMMISSION ON ELECTIONS, NACIONALISTA PARTY, REPRESENTED BY ITS PRESIDENT MANUEL B. VILLAR AND NATIONALIST PEOPLE'S COALITION, ALLEGEDLY REPRESENTED BY ITS CHAIRMAN FAUSTINO S. DY, JR., RESPONDENTS.

  • [G.R. No. 191846 : May 06, 2010] TEOFISTO GUINGONA, JR., BISHOP LEO A. SORIANO, FE MARIA ARRIOLA, ISAGANI R. SERRANO, AND ENGR. RODOLFO LOZADA, CORONA, VS. COMMISSION ON ELECTIONS, RESPONDENT.

  • [G.R. No. 160718 : May 12, 2010] ANUNCIO C. BUSTILLO, EMILIO SUMILHIG, JR., AND AGUSTIN BILLEDO, JR., PETITIONERS, VS. PEOPLE OF THE PHILIPPINES, RESPONDENT.

  • [G.R. No. 170956 : May 12, 2010] FELISA R. FERRER, PETITIONER, DOMINGO CARGANILLO, SERGIO CARGANILLO, SOLEDAD AGUSTIN AND MARCELINA SOLIS, RESPONDENTS.

  • [G.R. No. 180050 : May 12, 2010] RODOLFO G. NAVARRO, VICTOR F. BERNAL, AND RENE O. MEDINA, PETITIONERS, VS. EXECUTIVE SECRETARY EDUARDO ERMITA, REPRESENTING THE PRESIDENT OF THE PHILIPPINES; SENATE OF THE PHILIPPINES, REPRESENTED BY THE SENATE PRESIDENT; HOUSE OF REPRESENTATIVES, REPRESENTED BY THE HOUSE SPEAKER; GOVERNOR ROBERT ACE S. BARBERS, REPRESENTING THE MOTHER PROVINCE OF SURIGAO DEL NORTE; GOVERNOR GERALDINE ECLEO VILLAROMAN, REPRESENTING THE NEW PROVINCE OF DINAGAT ISLANDS, RESPONDENTS.

  • [G.R. No. 178202 : May 14, 2010] PEOPLE OF THE PHILIPPINES, PLAINTIFF-APPELLEE, VS. NORMAN SITCO AND RAYMUNDO BAGTAS (DECEASED), ACCUSED-APPELLANTS.

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    [G.R. No. 180062 : May 05, 2010]   GOVERNMENT SERVICE INSURANCE SYSTEM, PETITIONER, VS. BOARD OF COMMISSIONERS (2ND DIVISION), BOARD OF COMMISSIONERS OF THE HOUSING AND LAND USE REGULATORY BOARD (HLURB) HLURB NATIONAL CAPITAL REGION FIELD OFFICE, SPOUSES MARCELINO H. DE LOS REYES AND ALMA T. DE LOS REYES, AND NEW SAN JOSE BUILDERS, INC., RESPONDENTS.

     
    FIRST DIVISION

    [G.R. No. 180062 : May 05, 2010]

    GOVERNMENT SERVICE INSURANCE SYSTEM, PETITIONER, VS. BOARD OF COMMISSIONERS (2ND DIVISION), BOARD OF COMMISSIONERS OF THE HOUSING AND LAND USE REGULATORY BOARD (HLURB) HLURB NATIONAL CAPITAL REGION FIELD OFFICE, SPOUSES MARCELINO H. DE LOS REYES AND ALMA T. DE LOS REYES, AND NEW SAN JOSE BUILDERS, INC., RESPONDENTS.

    D E C I S I O N


    CARPIO MORALES, J.:

    New San Jose Builders, Inc. (NSJBI) mortgaged on December 10, 1997 three parcels of land together with the existing improvements, 366 lots with existing low cost houses, and 102 condominium units located on Scout Rallos Street, Quezon City to the Government Service Insurance System (GSIS) to secure the payment of a loan amounting to Six Hundred Million (P600,000,000) Pesos. The mortgaged properties included Condominium Unit 312 (the condominium unit) which was later sold by NSJBI to respondent spouses Marcelino and Alma De los Reyes (spouses De los Reyes) by Deed of Absolute Sale dated May 28, 2001.

    NSJBI defaulted in its loan obligation, hence, the GSIS foreclosed the mortgage and purchased the properties covered thereby on June 17, 2003. The Certificate of Sale, dated June 20, 2003, issued to GSIS was registered with the Registry of Deeds of Quezon City on September 19, 2003.

    The spouses De los Reyes later discovered the mortgage and eventual sale of the condominium unit to GSIS, hence, they filed on June 15, 2004, a complaint against herein respondents NSJBI, et al. with the Housing and Land Use Regulatory Board (HLURB), docketed as REM - 061504-12726,[1] praying as follows:

    1. Ordering the revocation of the Certificate of Registration and License to Sell of the respondent corporation, New San Jose Builders, Inc. (NSJBI);

    2. Ordering the respondent corporation New San Jose Builders, Inc. (NSJBI) and the individual respondents Rey L. Vergara and Carol B. Ros to immediately cause the release and delivery to herein complainants of the Condominium Certificate of Title No. N-18117 covering Unit 312 of Saint John Condominium, free from all liens and encumbrances;

    3. Ordering the respondent Government Service Insurance System to release the mortgage on Condominium Certificate of Title No. N-18117 covering Unit 312 of Saint John Condominium;

    4. Ordering the respondent corporation New San Jose Builders, Inc. (NSJBI) and individual respondents President Rey L. Vergara and AVP for Marketing Carol B. Ros to indemnify the complainants, jointly and severally, the following amounts . . .

      x x x x[2]

    In its Answer, GSIS claimed that the spouses De los Reyes had no cause of action against it as the mortgage was executed prior to the sale of the condominium unit[3] to which sale it (GSIS) was not a party.

    Before the expiration of the redemption period or on September 20, 2004, the spouses De los Reyes filed an Urgent Motion for Issuance of a Writ of Preliminary Injunction with Prayer for a Temporary Restraining Order to restrain GSIS from consolidating its title to the condominium unit.

    GSIS opposed the motion, alleging that Presidential Decree (PD) No. 385,[4] in relation to Letter of Instruction No. 411, prohibits the issuance of a restraining order against any government financial institution in any action taken by it in compliance with the mandatory foreclosure under said PD.[5]

    By Order of November 16, 2004,[6] House and Land Use Arbiter Rowena C. Balasolla granted the spouses De los Reyes's motion and issued a Cease and Desist Order (CDO) restraining GSIS from consolidating ownership of the condominium unit.

    On the appeal of GSIS, the HLURB Second Division, by Decision of June 23, 2005, affirmed the Arbiter's ruling, it holding that PD No. 385 applies only to on-going foreclosure proceedings. Besides, it noted that

    . . . an examination of the project's technical docket shows that no mortgage clearance was secured beforehand. Thus, said respondents violated Section 18 of P.D. No. 957 which provides that no mortgage on any unit or lot shall be made by the owner or developer without prior written approval of this Board. This being so, the said mortgage and the incidents which transpired subsequent thereto are void.[7] (emphasis and underscoring supplied)

    GSIS's motion for reconsideration, filed before the Board En Banc, was denied by the Second Division by Resolution of October 21, 2005, prompting it to file a petition for certiorari before the Court of Appeals.

    In addition to its arguments proffered before the HLURB, GSIS alleged that the HLURB acted without jurisdiction, for only three members, instead of the nine-man Board of Commissioners, entertained the appeal, contrary to the mandate of Sections 5 and 6(a) of Executive Order (E.O.) No. 648 (1981), as amended.[8]

    The Court of Appeals, by Decision of June 28, 2007,[9] dismissed GSIS's petition and accordingly ordered the Arbiter to proceed with dispatch in the disposition of the spouses De los Reyes's complaint.

    In dismissing GSIS's petition, the appellate court held that the HLURB Second Division did not abuse its discretion in taking jurisdiction over GSIS's motion for reconsideration-appeal, for 2004, the HLURB Revised Rules of Procedure provides that appeals shall be decided by the Board of Commissioners sitting en banc or by division in accordance with the internal rules of the Board.[10]

    On the merits, the Court of Appeals ratiocinated that the requisites for the issuance of a writ of preliminary injunction were present; and since the act sought to be enjoined pertains to the consolidation process, it is outside the intended ambit of PD No. 385.

    GSIS's motion for reconsideration having been denied by the appellate court by Resolution of October 10, 2007, the present petition for review was filed.

    GSIS argues in the main that the HLURB Revised Rules of Procedure did not vest authority in the Board's Second Division to entertain appeals.

    The Court is not persuaded.

    Section 5 of E.O. No. 648 specifically mandates the HLURB Board of Commissioners to adopt rules of procedure for the conduct of its business and perform such functions necessary for the effective discharge thereof. Such grant of power necessary to carry out its functions has been held to be an adequate source of authority to delegate a particular function, unless, by express provision of the Act or by implication, it has been withheld.[11]

    The present composition of the Board of Commissioners,[12] wherein five out of its nine members sit in ex-officio capacity while the remaining four serve as full time commissioners, practicality necessitates the establishment of a procedure whereby a case on appeal may be decided by members of a division.

    Since the 2004 HLURB Rules of Procedure provides that a motion for reconsideration shall be assigned to the Division from which the decision, order or ruling originated,[13] the questioned cognizance by the HLURB Second Division of GSIS's motion for reconsideration is in order.

    Respecting GSIS's argument that PD No. 385 prohibits the issuance of a CDO, the pertinent provisions of the decree read:

    Section 1. It shall be mandatory for government financial institutions, after the lapse of sixty (60) days from the issuance of this Decree, to foreclose the collaterals and/or securities for any loan, credit, accommodation, and/or guarantees granted by them whenever the arrearages on such account, including accrued interest and other charges, amount to at least twenty percent (20%) of the total outstanding obligations, including interest and other charges, as appearing in the books of account and/or related records of the financial institution concerned. This shall be without prejudice to the exercise by the government financial institutions of such rights and/or remedies available to them under their respective contracts with their debtors, including the right to foreclose on loans, credits, accommodations and/or guarantees on which the arrearages are less than twenty percent (20%).

    Section 2. No restraining order, temporary or permanent injunction shall be issued by the court against any government financial institution in any action taken by such institution in compliance with the mandatory foreclosure provided in Section 1 hereof, whether such restraining order, temporary or permanent injunction is sought by the borrower(s) or any third party or parties, except after due hearing in which it is established by the borrower and admitted by the government financial institution concerned that twenty percent (20%) of the outstanding arrearages has been paid after the filing of foreclosure proceedings.

    In case a restraining order or injunction is issued, the borrower shall nevertheless be legally obligated to liquidate the remaining balance of the arrearages outstanding as of the time of foreclosure, plus interest and other charges, on every succeeding thirtieth (30th) day after the issuance of such restraining order or injunction until the entire arrearages have been liquidated. These shall be in addition to the payment of amortization currently maturing. The restraining order or injunction shall automatically be dissolved should the borrower fail to make any of the above-mentioned payments on due dates, and no restraining order or injunction shall be issued thereafter. This shall be without prejudice to the exercise by the government financial institutions of such rights and/or remedies available to them under their respective charters and their respective contracts with their debtors, nor should this provision be construed as restricting the government financial institutions concerned from approving, solely at its own discretion, any restructuring, recapitalization, or any other arrangement that would place the entire account on a current basis, provided, however, that at least twenty percent (20%) of the arrearages outstanding at the time of the foreclosure is paid.

    All restraining orders and injunctions existing as of the date of this Decree on foreclosure proceedings filed by said government financial institutions shall be considered lifted unless finally resolved by the court within sixty (60) days from date hereof. (underscoring supplied)

    The act subject of the CDO was the intended consolidation by the GSIS of ownership of the condominium unit, not the mandatory foreclosure of the mortgage. At any rate, the second paragraph of the above-quoted Section 2 of PD No. 385 in fact recognizes the eventuality that an injunction may be issued against a government financial institution, hence, it obliges the borrower to liquidate the arrearages due in order to safeguard the interests of the government financial institution-lender.

    Undoubtedly, the jurisdiction of the HLURB to regulate the real estate business is broad enough to include jurisdiction over a complaint for annulment of foreclosure sale and mortgage and the grant of incidental reliefs such as a CDO. [14] Even Presidential Decree No. 957, "The Subdivision and Condominium Buyers Protective Decree," authorizes the HLURB as successor of the National Housing Authority to issue CDOs in relevant cases, viz:

    SECTION 16. Cease and Desist Order. -- Whenever it shall appear to the Authority that any person is engaged or about to engage in any act or practice which constitutes or will constitute a violation of the provisions of this Decree, or of any rule or regulation thereunder, it may, upon due notice and hearing as provided in Section 13 hereof, issue a cease and desist order to enjoin such act or practices.

    WHEREFORE, the challenged Court of Appeals Decision of June 28, 2007 is AFFIRMED. The Housing and Land Use Arbiter is ORDERED to proceed with dispatch with private respondent spouses De los Reyes's complaint.

    SO ORDERED.

    Puno, C.J., (Chairperson), Leonardo-De Castro, Bersamin, and Villarama, Jr., JJ., concur.

    Endnotes:


    [1] HLURB records, Vol. 1, pp. 1-16 (documents are paginated in reverse order).

    [2] Id. at 11-12.

    [3] Rollo, pp. 55-56.

    [4] Entitled, "Requiring Government Financial Institutions to Foreclose Mandatorily All Loans with Arrearages, including Interest and Charges amounting to at least Twenty Percent (20%) of the Total Outstanding Obligation."

    [5] Section 1. It shall be mandatory for government financial institutions, after the lapse of sixty (60) days from the issuance of this Decree, to foreclose the collaterals and/or securities for any loan, credit, accommodation, and/or guarantees granted by them whenever the arrearages on such account, including accrued interest and other charges, amount to at least twenty percent (20%) of the total outstanding obligations, including interest and other charges, as appearing in the books of account and/or related records of the financial institution concerned. This shall be without prejudice to the exercise by the government financial institutions of such rights and/or remedies available to them under their respective contracts with their debtors, including the right to foreclose on loans, credits, accommodations and/or guarantees on which the arrearages are less than twenty percent (20%).

    [6] Rollo, pp. 74-75.

    [7] Id. at 95.

    [8] Reorganizing The Human Settlements Regulatory Commission (Predecessor of The Hlurb), Enacted on February 7, 1981.

    [9] Penned by Associate Justice Marlene Gonzales-Sison, with the concurrence of Associate Justices Juan Q. Enriquez, Jr. and Vicente S.E. Veloso, rollo pp.136-150.

    [10] Section 2, Rule XX, 2004 HLURB Revised Rules of Procedure.

    [11] Realty Exchange Venture Corporation and/or Magdiwang Realty Corporation v. Lucina S. Sendino and the Office of the Executive Secretary, G.R. No. 109703, July 5, 1994, 233 SCRA 665 citing American Tobacco Co. v. Director of Patents, 67 SCRA 287, 292 (1975).

    [12] Under Section 5(J), Article IV of E.O. No. 648, Series of 1981, as amended by E.O. No. 90, Series of 1986, the recent rules of procedure promulgated by the Board in Resolution No. R-538, Series of 1994, enumerate the composition of the HLURB Board of Commissioners as follows:

    "Sec. 1.-- Membership

    "The Board of Commissioners shall be composed of the following:

    "1. The Chairman, Housing and Urban Development Coordinating Council (HUDCC), as Ex-Officio Chairman;

    "2. The Four Full-Time Commissioners;

    "3. The Ex-Officio Commissioners referred to in Executive Order 648, representing . . . :

    'a. The Department of Justice
    'b. The Department of the National Economic and Development Authority;
    'c. The Department of Local Government; and
    'd. The Department of Public Works and Highways, (1a)'"


    [13] 2004 HLURB Rules of Procedure, Rule XXI, Section 1.

    [14] Home Bankers Savings & Trust Co. v. Court of Appeals, G.R. No. 128354, April 26, 2005, 457 SCRA 167.

    [G.R. No. 180062 : May 05, 2010]   GOVERNMENT SERVICE INSURANCE SYSTEM, PETITIONER, VS. BOARD OF COMMISSIONERS (2ND DIVISION), BOARD OF COMMISSIONERS OF THE HOUSING AND LAND USE REGULATORY BOARD (HLURB) HLURB NATIONAL CAPITAL REGION FIELD OFFICE, SPOUSES MARCELINO H. DE LOS REYES AND ALMA T. DE LOS REYES, AND NEW SAN JOSE BUILDERS, INC., RESPONDENTS.


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