G.R. No. L-30400 December 12, 1975
HIPOLITA DULAY CATBAGAN, represented by Juliana C. Dulay, plaintiff-petitioner, vs. THE PHILIPPINE NATIONAL BANK, LOURDES MOYA, FE MOYA, AIDA MOYA, JOSE MOYA, ROMEO MOYA, NELLY MOYA, JESUS MOYA and MILAGROS MOYA, defendants-respondents.

FACTS

Petitioner Hipolita Dulay Catbagan purchased a parcel of land from respondents Moya in 1962. Unbeknownst to her, the property was already mortgaged to respondent Philippine National Bank (PNB). The Moyas defaulted on the mortgage, leading PNB to foreclose and purchase the property at a public auction in 1968. Petitioner, through her attorney-in-fact Juliana Dulay, sought to redeem the property from PNB but was refused. PNB cited the lack of written authority from the Moyas, who remained the registered owners. Consequently, petitioner filed a complaint for redemption and damages.
The trial court dismissed the complaint. It ruled that the general power of attorney executed by petitioner before a notary public in Hawaii was insufficient in form and substance to authorize Juliana Dulay to institute the suit, as it did not specifically mention the subject property. During the pendency of the appeal, PNB and petitioner executed a Deed of Redemption on June 3, 1969, whereby PNB allowed the redemption. PNB thus moved to dismiss the appeal as moot. The Moyas opposed and sought contempt sanctions, alleging the redemption was made without court authority while related litigation was pending.

ISSUE

Whether the petition for review has been rendered moot and academic by the subsequent redemption of the foreclosed property.

RULING

Yes, the petition is dismissed for being moot and academic. The core legal issue was petitioner’s right to redeem the property from PNB. This issue was conclusively resolved when PNB, the mortgagee-foreclosing creditor, voluntarily executed a Deed of Redemption in favor of petitioner. By granting the redemption, PNB effectively recognized and acceded to petitioner’s claim, thereby extinguishing the very controversy brought before the Court. A case becomes moot when there is no more actual controversy between the parties or no useful purpose can be served by a judicial pronouncement. Here, the act of redemption removed the substantive dispute over the right to redeem.
The Court further noted that a separate case for rescission filed by the Moyas against petitioner (Civil Case No. SCC-111) had already been decided, upholding the validity of the sales to petitioner and expressly declaring her right to redeem the property from PNB. Petitioner’s failure to appeal the dismissal of her counterclaim for damages in that case settled such ancillary claims. Therefore, with the property redeemed and the related claims adjudicated, no justiciable issue remains for resolution. The petition is dismissed.