GR 139464; (September, 2005) (Digest)
G.R. No. 139464. September 9, 2005
REPUBLIC OF THE PHILIPPINES, represented by the Director of Lands, Petitioner, vs. SPS. FELIX BAES and RAFAELA BAES and THE REGISTER OF DEEDS OF PASAY CITY, Respondents.
FACTS
The Regional Trial Court (RTC) rendered a 1980 Decision, affirmed with finality by the Supreme Court in 1993, ordering the reversion of certain parcels of land to the Republic of the Philippines and the cancellation of the respondents-spouses Baes’ titles. Despite this final judgment, the spouses mortgaged the subject properties, covered by the voided titles, to Philippine Savings Bank. The then Register of Deeds of Pasay City, Atty. Augusto Tobias, annotated the mortgage and a subsequent amendment increasing the loan amount on these titles. He also refused to comply with the RTC’s Order of Execution directing the cancellation of the void titles and issuance of new ones in the Republic’s name.
Petitioner Republic filed a motion to declare Atty. Tobias in contempt of court. Before its resolution, Atty. Tobias died. The RTC subsequently denied the Republic’s motion to substitute the new Register of Deeds and to order compliance, ruling that contempt is a personal liability extinguished by death and that it could not cancel the mortgage annotations without impleading the bank. The Court of Appeals affirmed this denial, prompting the instant petition.
ISSUE
The primary issues are: (1) whether the new Register of Deeds may be substituted for the deceased predecessor to comply with the order of execution; and (2) whether the mortgage annotations on the titles are valid.
RULING
The Supreme Court granted the petition, reversing the Court of Appeals. On the first issue, the Court distinguished between criminal and civil contempt. The purpose of the motion against Atty. Tobias was to compel performance of a duty for the benefit of the injured litigant (the Republic), making it civil in nature. Under Section 17, Rule 3 of the Rules of Court, when a public officer party to an action in his official capacity dies, the action may be continued against his successor if there is a substantial need. Therefore, the new Register of Deeds may be substituted, provided he is given reasonable notice and an opportunity to be heard, to comply with the order of execution.
On the second issue, the mortgage annotations are void. The spouses Baes mortgaged the properties after the reversion judgment had become final and executory. Since their titles had already been declared void, they had no right to mortgage the properties. Consequently, the mortgage contract and its annotations, having been registered in bad faith, are invalid and cannot bind the Republic. The case was remanded to the RTC for execution of its final decision, with prior notice to the incumbent Register of Deeds regarding substitution.