G.R. No. 212840 . August 28, 2019.
PAZ MANDIN-TROTIN, PETITIONER, VS. FRANCISCO A. BONGO, SABINA BONGO-BUNTAG AND ARTEMIA BONGO-LIQUIT, RESPONDENTS.

FACTS

The case involves a parcel of land, Lot No. 3982 in Danao, Panglao, Bohol, covered by Original Certificate of Title (OCT) No. 64051 registered in the name of Candido Bongo, issued on November 27, 1990. Candido Bongo is the husband and father of the respondents (Heirs of Candido Bongo). Candido is the only brother of Diosdado Bongo, the father of the plaintiffs (Heirs of Diosdado Bongo). The Heirs of Diosdado Bongo filed a complaint seeking the annulment of the title, recovery of ownership and possession of Lot No. 3982, and damages. They claimed their father Diosdado acquired the land from Ancelma Bongcas via an Escritura de Venta executed on March 9, 1929, and that Candido merely possessed and cultivated it with permission. They alleged Candido surreptitiously obtained a free patent and title in 1990. The Heirs of Candido Bongo countered that Candido applied for the free patent in good faith, believing the land was his exclusive property, having purchased it with earnings from abroad, and possessed it as owner for over 30 years. The Regional Trial Court (RTC) dismissed the complaint, ruling that the title, issued via free patent, became indefeasible after one year, barring the action filed nine years later. The RTC also found the Escritura de Venta unregistered and its described area (7,080 sqm) incompatible with Lot No. 3982’s area (32,668 sqm). Petitioner Paz Mandin-Trotin intervened, alleging that respondents executed a Deed of Conditional Sale on August 21, 1997, in her favor over a one-hectare portion of Lot No. 3982, for which she paid P100,000.00 of the P1,000,000.00 price, suspending further payment due to the adverse claim. She prayed for specific performance. The RTC left the settlement of her claim to her and the Heirs of Candido Bongo. The Court of Appeals (CA) affirmed the RTC Decision, dismissing the appeal and the intervention. The CA found the Heirs of Diosdado Bongo failed to prove ownership, noting the area discrepancy and the unregistered Escritura de Venta. Regarding the intervenor, the CA ruled the Deed of Conditional Sale was a contract to sell, and her failure to pay the balance by the stipulated deadline (October 31, 1997) extinguished the contract, relieving the vendors of their obligation. Petitioner filed a petition for review on certiorari before the Supreme Court.

ISSUE

The primary issue is whether the CA erred in dismissing petitioner Paz Mandin-Trotin’s intervention and cross-claim for specific performance based on the Deed of Conditional Sale.

RULING

The Supreme Court denied the petition and affirmed the CA Decision with modification. The Court held that the Deed of Conditional Sale was a contract to sell, not a contract of sale, as the vendors reserved title until full payment of the purchase price. Petitioner’s failure to pay the balance of P900,000.00 on or before October 31, 1997, as stipulated, constituted a breach that relieved the vendors (respondents) of their obligation to sell. The contract was thereby extinguished. The Court rejected petitioner’s argument that her suspension of payment was justified due to the adverse claim, noting she took no judicial action to protect her interests for over a decade. The Court modified the CA Decision by ordering petitioner to vacate the one-hectare portion and turn over its possession to respondents, as her continued possession lacked legal basis after the contract’s extinguishment. The Court affirmed the dismissal of the main complaint by the lower courts, upholding the indefeasibility of Candido Bongo’s Torrens title.