Catunglal vs Rodriquez

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[G.R. No. 146839, March 23 : 2011] ROLANDO T. CATUNGAL, JOSE T. CATUNGAL, JR., CAROLYN T. CATUNGAL AND ERLINDA CATUNGAL- WESSEL, PETITIONERS, VS. ANGEL S. RODRIGUEZ, RESPONDENT. D E C I S I O N LEONARDO-DE CASTRO, J.: Before the Court is a Petition for Review on Certiorari, assailing the following issuances of the Court of Appeals in CA-G.R. CV No. 40627 consolidated with CA-G.R. SP No. 27565: (a) the August 8, 2000 Decision, [1] which affirmed the Decision [2] dated May 30, 1992 of the Regional Trial Court (RTC), Branch 27 of Lapu-lapu City, Cebu in Civil Case No. 2365-L, and (b) the January 30, 2001 Resolution, [3] denying herein petitioners' motion for reconsideration of the August 8, 2000 Decision. The relevant factual and procedural antecedents of this case are as follows: This controversy arose from a Complaint for Damages and Injunction with Preliminary Injunction/Restraining Order [4] filed on December 10, 1990 by herein respondent Angel S. Rodriguez (Rodriguez), with the RTC, Branch 27, Lapu-lapu City, Cebu, docketed as Civil Case No. 2365-L against the spouses Agapita and Jose Catungal (the spouses Catungal), the parents of petitioners. In the said Complaint, it was alleged that Agapita T. Catungal (Agapita) owned a parcel of land (Lot 10963) with an area of 65,246 square meters, covered by Original Certificate of Title (OCT) No. 105 [5] in her name situated in the Barrio of Talamban, Cebu City. The said property was allegedly the exclusive paraphernal property of Agapita. On April 23, 1990, Agapita, with the consent of her husband Jose, entered into a Contract to Sell [6] with respondent Rodriguez. Subsequently, the Contract to Sell was purportedly "upgraded" into a Conditional Deed of Sale dated July 26, 1990 between the same parties. Both the Contract to Sell and the Conditional Deed of Sale were annotated on the title. The provisions of the Conditional Deed of Sale pertinent to the present dispute are quoted below: 1. The VENDOR for and in consideration of the sum of TWENTY[-]FIVE MILLION PESOS (£25,000,000.00) payable as follows: a. FIVE HUNDRED THOUSAND PESOS (P500,000.00) downpayment upon the signing of this agreement, receipt of which sum is hereby acknowledged in full from the VENDEE. b. The balance of TWENTY[-]FOUR MILLION FIVE HUNDRED THOUSAND PESO'S (P24,500,000.00) shall be payable in five separate checks, made to the order of JOSE Ch. CATUNGAL, the first check shall be for FOUR MILLION FIVE HUNDRED THOUSAND PESOS (P4,500,000.00) and the remaining balance to be paid in four checks in the amounts of FIVE MILLION PESOS (P5,000,000.00) each after the VENDEE have (sic)' successfully negotiated, secured and provided a Road Right of Way consisting of 12 meters in width cutting across Lot 10884 up to the national road, either by widening the existing Road Right of Way or by securing a new Road Right of Way of 12 meters in width. If however said Road Right of Way could not be negotiated, the VENDEE shall give notice to the VENDOR for them to reassess and solve the problem by taking other options and should the situation ultimately prove futile, he shall take steps to rescind or cancel the herein Conditional Deed of Sale.

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Catunglal vs Rodriquez

Transcript of Catunglal vs Rodriquez

[G.R. No. 146839, March 23 : 2011] ROLANDO T. CATUNGAL, JO! T. CATUNGAL, JR., CAROL"N T. CATUNGAL AND !RL#NDACATUNGAL$%!!L, &!T#T#ON!R, '. ANG!L . RODR#GU!(, R!&OND!NT.D ! C ## O N L!ONARDO$D! CATRO, J.:Before the Court is a Petition for Review on Certiorari, assailing the following issuances of the Court of Appeals in CA-G.R. CV No. 40!" consoli#ate# with CA-G.R. $P No. !"%%& 'a( the August ), !000 *ecision,+,- which affir.e# the *ecision+!- #ate# /a0 10, ,22! of the Regional 3rial Court 'R3C(, Branch !" of 4apu-lapu Cit0, Ce5u in Civil Case No. !1%-4, an# '5( the 6anuar0 10, !00, Resolution,+1- #en0ing herein petitioners7 .otion for reconsi#eration of the August ), !000 *ecision.3he relevant factual an# proce#ural antece#ents of this case are as follows&3his controvers0 arose fro. a Co.plaint for *a.ages an# 8n9unction with Preli.inar0 8n9unction:Restraining;r#er+4- file# on *ece.5er ,0, ,220 50 herein respon#ent Angel $. Ro#rigue< 'Ro#rigueuestioning the #enial of their .otion to #is.iss an# the or#er of #efault. 3his was #oc=ete# as CA$G.R. & No. 2)*6*./eanwhile, Ro#rigue< procee#e# to present his evi#ence 5efore the trial court.8n a *ecision #ate# /a0 10, ,22!, the trial court rule# in favor of Ro#rigueuisition of 4ot ,021 which the0 .isrepresente# was part of the propert0 sol# 5ut was in fact owne# 50 a thir# part0 an# or#ere# the. to pa0 P,00,000.00 as #a.ages, P10,000.00 as attorne07s fees an# costs.3he Catungals appeale# the #ecision to the Court of Appeals, asserting the co..ission of the following errors 50 the trial court in their appellants7 5rief) #ate# De5ruar0 2, ,224&83GA C;HR3 A JH; ARRA* 8N N;3 *8$/8$$8NG ;D '$8C( 3GA CA$A ;N 3GA GR;HN*$ ;D 8/PR;PAR VANHA AN* 4ACK ;D 6HR8$*8C38;N.883GA C;HR3 A JH; ARRA* 8N C;N$8*AR8NG 3GA CA$A A$ A PAR$;NA4 AN* N;3 A RAA4 AC38;N.888GRAN38NG B83G;H3 A*/8338NG 3GA3 VANHA BA$ PR;PAR4C 4A8* AN* 3GA CA$A 8$ A PAR$;NA4 AC38;N, 3GA C;HR3 A JH; ARRA* 8N *AC4AR8NG 3GA *ADAN*AN3$ 8N *ADAH43 *HR8NG 3GA PRA-3R8A4 BGAN A3 3GA3 38/A 3GA *ADAN*AN3$ GA* A4RAA*C D84A* 3GA8R AN$BAR 3; 3GA C;/P4A8N3.8V3GA C;HR3 A JH; ARRA* 8N C;N$8*AR8NG 3GA *ADAN*AN3$ A$ GAV8NG 4;$3 3GA8R 4AGA4 $3AN*8NG 8N C;HR3 BGAN A3 /;$3 3GAC C;H4* ;N4C BA C;N$8*ARA* A$ 8N *ADAH43 AN* $3844 AN3834A* 3; N;38CA$ ;D A44 DHR3GAR PR;CAA*8NG$ A$PAC8A44C AD3AR 3GAC GA* D84A* 3GA /;38;N 3; 48D3 3GA ;R*AR ;D *ADAH43.V3GA C;HR3 A JH; ARRA* 8N 8$$H8NG 3GA BR83 +;D- PRA48/8NARC 8N6HNC38;N RA$3RA8N8NG 3GA ALARC8$A ;D AC3$ ;D ;BNAR$G8P AN* ;3GAR R8GG3$ ;VAR RAA4 PR;PAR3C ;H3$8*A ;D 3GA C;HR37$ 3ARR83;R8A4 6HR8$*8C38;N AN* 8NC4H*8NG PAR$;N$ BG; BARA N;3 BR;HGG3 HN*AR 83$ 6HR8$*8C38;N, 3GH$ 3GA NH4483C ;D 3GA BR83.V83GA C;HR3 A JH; ARRA* 8N N;3 RA$3RA8N8NG 83$A4D /;3H PR;P+R-8; DR;/ C;N38NH8NG B83G 3GA PR;CAA*8NG$ 8N 3GA CA$A AN* 8N RAN*AR8NG *AC8$8;N 3GARA8N 8D ;N4C D;R RAA$;N ;D C;HR3A$C AN* DA8RNA$$ BA8NG /AN*A3A* A$ *8$PAN$AR ;D DA8R AN* AJHA4 6H$38CA 3; A44 AN* $HN*RC B83G;H3 DAAR ;R DAV;R 83 GAV8NG BAAN $ARVA* AAR48AR B83G A C;PC ;D 3GA PA3838;N D;R CAR38;RAR8 JHA$38;N8NG 83$ VANHA AN* 6HR8$*8C38;N 8N CA-G.R. N;. $P !"%% 8N DAC3 N;38CA$ D;R 3GA D848NG ;D C;//AN3 3GARA3; GA* A4RAA*C BAAN $AN3 ;H3 BC 3GA G;N;RAB4A C;HR3 ;D APPAA4$, $AC;N* *8V8$8;N, AN* 3GA C;HR3 A JH; BA$ DHRN8$GA* B83G C;PC ;D $A8* N;38CA.V883GA C;HR3 A JH; ARRA* 8N *AC8*8NG 3GA CA$A 8N DAV;R ;D 3GA P4A8N38DD AN* AGA8N$3 3GA *ADAN*AN3$ ;N 3GA BA$8$ ;D AV8*ANCA BG8CG ARA 8/AG8NARC, DABR8CA3A*, AN* *AV;8* ;D 3RH3G, 3; BA $3A3A* 8N *A3A84 8N 3GA *8$CH$$8;N ;D 3G8$ PAR38CH4AR ARR;R, AN*, 3GARAD;RA, 3GA *AC8$8;N 8$ RAVAR$8B4A.+12-;n August 1,, ,22%, after 5eing grante# several e?tensions, Ro#rigue< file# his appellee7s 5rief,+40- essentiall0 arguing the correctness of the trial court7s *ecision regar#ing the foregoing issues raise# 50 the Catungals. $u5se>uentl0, the Catungals file# a Repl0 Brief+4,- #ate# ;cto5er ,, ,22%.Dro. the filing of the appellants7 5rief in ,224 up to the filing of the Repl0 Brief, the spouses Catungal were represente# 50 appellant 6ose Catungal hi.self. Gowever, a new counsel for the Catungals, Att0. 6esus N. Borro.eo 'Att0. Borro.eo(, entere# his appearance 5efore the Court of Appeals on $epte.5er !, ,22".+4!- ;n the sa.e #ate, Att0. Borro.eo file# a /otion for 4eave of Court to Dile Citation of Authorities+41- an# a Citation of Authorities.+44- 3his woul# 5e followe# 50 Att0. Borro.eo7s filing of an A##itional Citation of Authorit0 an# $econ# A##itional Citation of Authorit0 5oth on Nove.5er ,", ,22".+4%-*uring the pen#enc0 of the case with the Court of Appeals, Agapita Catungal passe# awa0 an# thus, her hus5an#, 6ose, file# on De5ruar0 ,", ,222 a .otion for Agapita7s su5stitution 50 her surviving chil#ren+4-;n August ), !000, the Court of Appeals ren#ere# a *ecision in the consoli#ate# cases CA-G.R. CV No. 40!" an# CA-G.R. $P No. !"%%,+4"- affir.ing the trial court7s *ecision.8n a /otion for Reconsi#eration #ate# August !,, !000,+4)- counsel for the Catungals, Att0. Borro.eo, argue#for the first ti.e that paragraphs ,'5( an# %+42- of the Con#itional *ee# of $ale, whether ta=en separatel0 or 9ointl0, violate# the principle of .utualit0 of contracts un#er Article ,10) of the Civil Co#e an# thus, sai# contract was voi# ab initio. Ge a#verte# to the cases .entione# in his various citations of authorities to support his argu.ent of nullit0 of the contract an# his position that this issue .a0 5e raise# for the first ti.eon appeal./eanwhile, a $econ# /otion for $u5stitution+%0- was file# 50 Att0. Borro.eo in view of the #eath of 6ose Catungal.8n a Resolution #ate# 6anuar0 10, !00,, the Court of Appeals allowe# the su5stitution of the #ecease# Agapita an# 6ose Catungal 50 their surviving heirs an# #enie# the .otion for reconsi#eration for lac= of .eritGence, the heirs of Agapita an# 6ose Catungal file# on /arch !00, the present petition for review,+%,- which essentiall0 argue# that the Court of Appeals erre# in not fin#ing that paragraphs ,'5( an#:or % of the Con#itional *ee# of $ale, violate# the principle of .utualit0 of contracts un#er Article ,10) of the Civil Co#e.3hus, sai# contract was suppose#l0 voi# a5 initio an# the Catungals7 rescission thereof was superfluous.8n his Co..ent,+%!- Ro#rigue< highlighte# that 'a( petitioners were raising new .atters that cannot 5e passe# upon on appealI '5( the vali#it0 of the Con#itional *ee# of $ale was alrea#0 a#.itte# an# petitionerscannot 5e allowe# to change theories on appealI 'c( the >uestione# paragraphs of the Con#itional *ee# of $ale were vali#I an# '#( petitioners were the ones who co..itte# frau# an# 5reach of contract an# were not entitle# to relief for not having co.e to court with clean han#s.3he Court gave #ue course to the Petition+%1- an# the parties file# their respective /e.oran#a.3he issues to 5e resolve# in, the case at 5ar can 5e su..e# into two >uestions&8. Are petitioners allowe# to raise their theor0 of nullit0 of the Con#itional *ee# of $ale for the first ti.e on appealM88. *o paragraphs ,'5( an# % of the Con#itional *ee# of $ale violate the principle of .utualit0 of contracts un#er Article ,10) of the Civil Co#eMOn petitioners' change of theoryPetitioners clai.e# that the Court of Appeals shoul# have reverse# the trial courts7 *ecision on the groun# ofthe allege# nullit0 of paragraphs ,'5( an# % of the Con#itional *ee# of $ale notwithstan#ing that the sa.e was not raise# as an error in their appellants7 5rief. Citing Catholic Bishop of Balanga v. Court of Appeals,+%4- petitioners argue# in the Petition that this case falls un#er the following e?ceptions&'1( /atters not assigne# as errors on appeal 5ut consi#eration of which is necessar0 in arriving at a 9ust #ecision an# co.plete resolution of the case or to serve the interest of 9ustice or to avoi# #ispensing piece.eal 9usticeI'4( /atters not specificall0 assigne# as errors on appeal 5ut raise# in the trial court an# are .atters of recor# having so.e 5earing on the issue su5.itte# which the parties faile# to raise or which the lower court ignore#I'%( /atters not assigne# as errors on appeal 5ut closel0 relate# to an error assigne#I an#'( /atters not assigne# as errors 5ut upon which the #eter.ination of a >uestion properl0 assigne# is #epen#ent.Be are not persua#e#.3his is not an instance where a part0 .erel0 faile# to assign an issue as an error in the 5rief nor faile# to argue a .aterial point on appeal that was raise# in the trial court an# supporte# 50 the recor#. Neither is this a case where a part0 raise# an error closel0 relate# to, nor #epen#ent on the resolution of, an error properl0 assigne# in his 5rief. 3his is a situation where a part0 co.pletel0 changes his theor0 of the case on appeal an# a5an#ons his previous assign.ent of errors in his 5rief, which plainl0 shoul# not 5e allowe# as anathe.a to #ue process.Petitioners shoul# 5e re.in#e# that the o59ect of plea#ings is to #raw the lines of 5attle 5etween the litigants an# to in#icate fairl0 the nature of the clai.s or #efenses of 5oth parties.+%- 8n Philippine National Construction Corporation v. Court of Appeals,+%"- we hel# that @+w-hen a part0 a#opts a certain theor0 in the trial court, he will not 5e per.itte# to change his theor0 on appeal, for to per.it hi. to #o so woul# not onl0 5e unfair to the other part0 5ut it woul# also 5e offensive7 to the 5asic rules of fair pla0, 9ustice an# #ueprocess.@Be have also previousl0 rule# that @courts of 9ustice have no 9uris#iction or power to #eci#e a >uestion not inissue. 3hus, a 9u#g.ent that goes 5e0on# the issues an# purports to a#9u#icate so.ething on which the court #i# not hear the parties, is not onl0 irregular 5ut also e?tra9u#icial an# invali#. 3he rule rests on the fun#a.ental tenets of fair pla0.@+%2-*uring the procee#ings 5efore the trial court, the spouses Catungal never clai.e# that the provisions in the Con#itional *ee# of $ale, stipulating that the pa0.ent of the 5alance of the purchase price was contingent upon the successful negotiation of a roa# right of wa0 'paragraph ,+5-( an# granting Ro#rigue< the option torescin# 'paragraph %(, were voi# for allege#l0 .a=ing the fulfill.ent of the contract #epen#ent solel0 on the will of Ro#rigueuentl0, Ro#rigueuisition of the roa#-right-of-wa0, in accor#ance with paragraph ! of Article ,,), of the New Civil Co#e. Accor#ingl0, @an o5ligation #epen#ent upon a suspensive con#ition cannot 5e #e.an#e# until after the con#ition ta=es place 5ecause it is onl0 after the fulfill.ent of the con#ition that the o5ligation arises.@ '6avier v+s- CA ,)1 $CRA( A?hi5its G, *, P, R, 3, DD an# 66 show that 69a4/-400 [Ro5r4uate to ren#er it effectual.@+)-$i.ilarl0, un#er the Rules of Court it is prescri5e# that @+i-n the construction of an instru.ent where there are several provisions or particulars, such a construction is, if possi5le, to 5e a#opte# as will give effect to all@+2- an# @for the proper construction of an instru.ent, the circu.stances un#er which it was .a#e, inclu#ing the situation of the su59ect thereof an# of the parties to it, .a0 5e shown, so that the 9u#ge .a0 5e place# in the position of those whose language he is to interpret.@+"0-Bearing in .in# the afore.entione# interpretative rules, we fin# that the first sentence of paragraph % .ust 5e ta=en in relation with the rest of paragraph % an# with the other provisions of the Con#itional *ee# of $ale.Rea#ing paragraph % in its entiret0 will show that Ro#rigueuire.ent that there shoul# 5e written notice to the ven#or an# the ven#or shall onl0 return Ro#rigue