183212153 appellants brief 2

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  • 8/11/2019 183212153 Appellants Brief 2

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    APPELLANTS BRIEF

    COME NOW, the defendants-Appellants, through counsel, and unto

    this Honorable Court of Appeals, submit the following BRIEF in support oftheir appeal.

    The Notice to File Brief within forty five (45) days from receipt dated

    January 28, 2013 was received February 8, 2013. The 45th

    day from receipt

    falls on March 25, 2013. Hence, Appellants Brief is filed on time.

    STATEMENT OF THE CASE

    This is a complaint for recovery of possession of real property, filed

    by HAIDE LAGROSA-YANCE, represented by her attorney-in-fact MARICHEL

    YANCE-BAUTISTA, Plaintiff Haide Lagrosa-Yance, in her Special Power of

    Attorney, hereafter SPA empowered her attorney-in-fact to file this case

    against SPS. CESAR PAGES. The attorney-in-fact, however filed this against

    defendants SPS ANDRES PAGES who are not the one named in the SPA.

    Notwithstanding the objection to the SPA when formally offered that the

    complaint is filed against the defendants SPS. ANDRES PAGES, not

    mentioned in the Special Power of Attorney, plaintiff still persisted incontinuing the case although SPA does not authorize filing against the said

    SPS. ANDRES PAGES, defendants herein. While the attorney-in-fact is also

    one of the heirs of the deceased CESAR YANCE, she did not file this case in

    her own behalf but in behalf of her mother. There being no authority from

    Haide Lagrosa Yance the court a quo should not have proceeded to try the

    case.

    For the reason that the attorney-in-fact has no authority to file this

    case against spouses Andres Pages, defendants herein, the requiredverification and certification against forum shopping against spouses

    Andres Pages is likewise unauthorized. There being no valid certification

    against forum shopping the case should have been dismissed pursuant to

    Section 5 of Rule 7 of the Rules of Court.

    This defect is fatal and cannot be cured by submitting a new

    certification against forum shopping. Absent a valid certification against

    forum shopping, the case should be dismissed under the Rule of Rules of

    Court.

    This complaint to recover possession should not prosper against

    defendants because of the finding of the Court of Appeals on CA Case No.

    GR No. 86145 promulgated March 02, 1997 that there is a contract to sell

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    between estate of Cesar Yance and the sps. Andres Pages and payment of

    P495,000.00 with a balance of only P5,600.00 of the agreed purchase price.

    STATEMENTS OF FACTS

    1. Plaintiff filed a complaint for Recovery of Possession of Real Property

    entitled HAIDE LAGROSA-YANCE, represented by MARICHEL YANCE-

    BAUTISTA, plaintiff vs. ANDRESS PAGES, NONA PAGES, and all other

    person claiming rights under them, defendants.

    2. Plaintiff averred in the complaint that:

    1. Plaintiff is of legal age, a resident of New Jersey, USA., co-

    owner of a certain parcel of land covered by TCT No. 52170,

    of the Registry of Deeds of Paraaque City, herein

    represented by her daughter MARICHEL YANCE-BAUTISTA.

    The latter is a resident of Block 18, Lot 31, Kalayaan Village,

    Pasay City.

    Copy of the Transfer of Certificate of Title No. 52170,

    Special Power of Attorney and latest receipts of real

    property tax are hereto attached and marked as Annexes

    A B & C, respectively, forming integral parts hereof;

    2. Spouses Andres Pages and Nona Pages, are both Filipinos,

    currently occupying the land covered by TCT No. 52170, at

    5 Thomas St., Multinational Subdivision, Paraaque City;

    3. Sometime in 1992 defendants Andres Pages who

    purportedly own the property contiguous to the property

    covered by TCT No. 52170, without permission form

    plaintiff, began occupying the portion of the latters

    property by placing construction materials and equipmentthereon;

    4.

    Not contented with the aforesaid intrusion, defendants

    constructed a shade with concrete floorings which served

    as his parking lot for his vehicles;

    5. Said parking shade practically covers almost half of the

    property covered by TCT No. 52170, encroaching

    practically about 90 square meters more or less;

    6.

    Despite repeated verbal and written demands, defendants

    refuse to surrender possession of the more or less 90

    square meters they are maliciously and illegally occupying

    without paying rent and over the vehement objection s of

    the herein plaintiff;

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    7. Sometime later Andres Pages constructed his house with

    roofs abutting the property of the plaintiff without

    observing proper distance between a house adjacent to

    another lot;

    8. On March 12, 2007, plaintiff sent a demand letter to the

    defendant copy of which hereto attached and marked as

    Annex D, forming an integral part of hereof;

    9. Despite said demand letter, defendants continue to

    maliciously, and illegally occupy the property of the herein

    plaintiff, without paying any rent or value thereof, to the

    prejudice and damage of the latter.

    10.In view of the repeated and deliberate failure of the

    defendants to vacate the property of the plaintiff, the

    latter was constrained to engage the services of counsel

    for which they are committed to pay the amount of

    P50,000.00 by way of acceptance fees and reasonable

    amount of P2,500.00 for every appearance;

    11.Defendants, for years have been occupying illegally the

    property of plaintiff over the objections of the latter.

    Plaintiff therefore has suffered sleepless nights and moral

    anguish and prejudice for which the defendants should be

    made to pay the amount of P100,000.00, by way of moraldamages;

    12.To educate the public and to serve as example to the public

    to dissuade them from following the illegal acts of the

    defendants, the latter must be ordered to pay the plaintiff

    the amount of P100,000.00 by way of exemplary damages;

    13.Pending the resolution of this instant case, defendants

    must be ordered to pay the plaintiff the amount of

    P2,000.00, by way of reasonable rent, from the time thedemand letter was sent to them until possession of the

    property in question is fully surrendered to the herein

    plaintiff.

    3. Defendants filed their answer alleging as follows:

    Answer with Counterclaim

    Defendants, through undersigned counsel,

    answering the complaint, before this Honorable Courtmost respectfully state:

    1. Defendants have no knowledge sufficient to form a belief

    as to the truth of the allegation contained in paragraph 1

    respecting the personal circumstances of plaintiff.

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    2. The allegation contained in paragraph 2 are admitted

    with the qualification that defendants Pages are

    occupying only or 90 square meters of TCT 52170, a

    portion of which is adjacent to their land.

    3. The allegation contained in paragraph 3, 4, 5, 6, 7, 8, & 9

    of the complaint are not entirely accurate and therefore

    denied, the truth of the matter being as stated in

    Affirmative Defenses.

    4. The allegation contained in paragraph 10, 11, 12, & 13

    are not ultimate allegation of facts, hence these are

    denied, the truth of the matter being as stated in

    Affirmative Defenses.

    Affirmative Defenses

    Defendants reiterate, as though fully set forth, the

    answers above as far as the allegations are material and

    relevant hereto, and further allege as follows:

    5. There is no cause of action for recovery of possession. In

    the case entitled Sps. Andres Pages and Nona Pages vs.

    The Estate of Cesar Yance and Maria Cristina Yance,

    docketed as C.A. G.R. No. 86145 promulgated March 02,2007, the Court of Appeals ruling that attained finality

    stated that:

    The core issue to be resolved is whether or not

    the contract denominated as Contract to Sell, which

    was entered into by and between herein plaintiffs-

    appellants and defendant-appellee, Maria Cristina, is a

    contract to sell or contract of sale.

    In a contract to sell, a vendor reserves ownershipof the property and is not to pass until full payment. On

    the other hand, a contract is one of sale, absent any

    stipulation therein reserving title over the property to the

    vendee until full payment of the purchase price nor giving

    the vendor the right to unilaterally rescind the contract in

    case of non payment. Thus, in a contract of sale, the sale

    is absolute, in which title passes to the buyer upon

    delivery of the things sold.

    In the instant case, herein plaintiffs-appellants

    argued that while their contract was denominated as

    Contract to Sell, it was really a contract of sale since there

    was no stipulation reserving ownership of the subject land

    until full payment of the purchase price, and because

    earnest money was given as part of the purchase price.

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    We are not persuaded. We find the contract

    entered into by and between herein plaintiffs-appellants

    and defendants-appellee way back on December 16, 1997

    as a contract to sell. The fact that earnest money was

    given as part of the purchase price is not determinative ofwhether the contract is one of contract of sale or contract

    to sell. What determines the nature of the contract is

    whether or not there was a reservation of ownership of

    the thing sold until full payment of the purchase price. The

    contract entered into by and between herein plaintiffs-

    appellants and defendant-appellee, Maria Cristina-Yance,

    specifically provides that ownership over the 90 square

    meter portion of the subject land shall be transferred only

    to herein plaintiffs-appellants upon their compliance of all

    the required conditions, to wit:

    XXX

    Upon compliance of all the

    conditions required of the BUYER under this

    contract, the SELLER shall execute the

    requisite deed transferring ownership of the

    property to the formers name.

    XXX

    One of the conditions in the contract is the full

    payment of the purchase price which is P495,000.00.Before the fulfillment of such condition, ownership over

    the things sold retains (sic) with the seller, Maria Cristina

    Yance. We note that the herein plaintiffs-appellants,

    spouses Andres Pages and Nona Pages, could not even

    categorically state the total amount of money that they

    had paid to the seller, Maria Cristina Yance, as would

    entitle the former to be transferred with the ownership of

    the thing sold. The trial court found that herein plaintiffs-

    appellants paid only P489,400.00, which is P5,600.00

    short of the agreed price. Hence, the seller, hereindefendant-appellee, Maria Cristina Yance, still retains

    ownership over the property sold until full payment of the

    purchase price thereof.

    However, we note that the seller, Maria Cristina

    Yance, seems to have no more intention without just

    cause of continuing with her contract with herein plaintiff-

    appellants, spouses Andres Pages and Nona Pages, as the

    former could no longer be located. The least that herein

    plaintiffs-appellants could do, for them to be entitled to

    specific performance, that is, that a contract of sale over

    the 90 square meter portion of the property be executed

    in their favor is to make a consignation of the balance of

    the purchase price by depositing it at the disposal of

    judicial authority. (Citation omitted)

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    Photocopy of the Decision promulgated on March

    2, 2007 is Annex A hereof. Thus all that the defendants

    need to do is only to pay the balance of Php5,600.00 in

    accordance with the said Decision of the Court of Appeals.

    6. That there is a violation of the certification against forum

    shopping by Marichel Yance-Bautista. Contrary to the

    certification of non-forum shopping, there is another case

    involving the same parties, subject matter and issues as

    the case at bar. The said case is entitled sps. ANDRES

    PAGES and NONA PAGES vs ESTAIE OF CESAR YANCE and

    MARIA CRISTINA YANCE. In aforementioned case the court

    of Appeals rendered a decision promulgated on March 2,

    2007 that has attained finality.

    7.

    There is a notice of lis pendens annotated at the back of

    TCT 52170 involving civil case No. 99-0241 before the RTC

    of Paraaque City which was later appealed to the Court

    of Appeals and docketed as C.A. G.R.. C.V. No. 86145.

    8. That said Decision ruled that there is a balance of

    Php5,600.00 due the estate of Yance and should be paid

    before transfer of ownership can be affected.

    9. That defendant was given possession because of a

    contract between the estate of Yance and defendantspouses.

    Counterclaim

    10. In filing this frivolous and unreasonable suit, plaintiffs

    placed defendants in disrepute by practically calling them

    land grabbers. As a result, defendants suffered

    unnecessary dishonor, inconvenience, anxiety, distress

    and worry, for which the plaintiffs must be compensatedefendants for moral damages in the sum of P100,000.00.

    11. That defendants were constrained to defend themselves

    by reason of this frivolous suit and was forced to engaged

    the service of undersigned attorney for a fee;

    consequently plaintiffs must reimburse defendants of the

    sum they will spend by reason of this suit to wit;

    Php50,000.00 for and as acceptance fee, Php100,000.00

    for and as lawyer's retainer fees and appearance fee for

    each day of hearing attended in the amount of

    Php5,000.00. In addition the plaintiffs must reimburse

    defendants of all sums incurred in connection with action

    in such amount as will be proven in trial.

    12.

    To deter others from committing similar acts, plaintiffs

    should be ordered to pay exemplary damages in the

    amount Php500,000.00.

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    The court a quo rendered judgment, the ---- portion of which

    reads:

    WHEREFORE, in view of the foregoing, judgment

    is rendered in favor of the plaintiff and against the

    defendants:

    (1)Ordering the defendants to vacate and to surrender to the

    plaintiff the possession of the portion of the land or about

    90 square meters thereof covered by Transfer Certificate

    of Title No. 52170;

    (2)Ordering the defendants to pay a monthly rental herein

    equitable fixed at P2,000.00 peer month for thepossession of the said portion of land of plaintiff reckoned

    from the date of dem and which is March 12, 2007 until

    the said portion of land is fully vacated/surrendered to the

    plaintiff;

    (3)Ordering the defendants to pay the plaintiff the sum of

    P100,000.00 as moral damages;

    (4)

    Ordering the defendants to pay the plaintiff the sum ofP50,000.00 plus P2,500.00 per court appearance as and

    for attorneys fees;

    (5)And costs.

    SO ORDERED.

    Paraaque City, Philippines, August 30, 2012.

    ASSIGNMENT OF ERRORS

    1. The court a quo erred in holding that

    this is a verified complaint for

    recovering of possession of real

    property filed by plaintiff Haide

    Lagrosa Yance represented by

    Marichel Yance-Bautista against

    defendants Andres Pages and Nona

    Pages notwithstanding the fact that

    the Special Power of Attorney

    executed by Haide Lagrosa Yance,

    authorized the filing of the case

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    against spouses Cesar Pages only and

    not against spouses Andres Pages.

    2.

    The court a quo erred in reversing thefindings of facts of the Court of

    Appeals that there was an argument

    sometime in July 1997, prior to the

    death of Cesar Yance, between Cesar

    Yance represented by Maria Cristina

    Yance by virtue of a Special Power of

    Attorney and spouses Andres Pages

    to buy the subject property.

    3. The court a quo erred in reversing the

    findings of facts of the Court of

    Appeals in the case entitled

    and

    docketed as CA GR CV No. 86145 that

    there is contract to sell between the

    estate of Yance and the defendants

    spouses Andres Pages.

    4. The court a quo erred in holding that

    plaintiff as the registered owner of

    the property has the better right to

    possess the property notwithstanding

    the fact that there is an adverse claim

    annotated at the back of the title

    respecting a contract to sell in favor

    of the defendants spouses Andres

    Pages, the existence of which isconfirmed ruled by the Court of

    Appeals in said CA GR No. .

    5. The court a quo erred in ordering

    defendants to vacate the property in

    question, to pay plaintiff damages,

    attorneys fees and cost.

    ARGUMENTS/DISCUSSION

    1.

    First Assigned Error.

    The court a quo erred in holding that

    this is a verified complaint for

    recovering of possession of real

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    property filed by plaintiff Haide

    Lagrosa Yance represented by

    Marichel Yance-Bautista against

    defendants Andres Pages and NonaPages notwithstanding the fact that

    the Special Power of Attorney

    executed by Haide Lagrosa Yance,

    authorized the filing of the case

    against spouses Cesar Pages only

    and not against spouses Andres

    Pages.

    The Special Power of Attorney reads:

    " SPECIAL POWER OF ATTORNEY

    KNOW ALL MEN BY THESE PRESENTS:

    That I, HAIDE LAGROSA-YANCE, Filipino citizen, of

    legal age, a resident of New Jersey, do hereby name,

    constitute and appoint MARICHEL YANCE-BAUTISTA, of

    legal age, resident of Blk. 18, Lot 31, Kalayaan Village,

    Pasay City, to be my lawful attorney in fact, to do and

    perform the following acts and deeds, to wit:

    To represent me in the filing of a civil ease against

    Sps. Cesar Pages for recovery of possession involving my

    property which is registered under TCT No. 52170; to file

    the necessary action, petition or claim and verify the same

    and execute the corresponding certification of non-forum

    shopping until their final termination, after exhaustion of

    all possible appeals; and

    To appear and represent me before any court,tribunal, administrative or quasi-judicial body to carry out

    the objectives of this authorization. To represent me for

    purpose of preliminary conference and/or pre trial

    conference in the proper forum for purpose of entering into

    amicable settlement; to submit to alternative modes of

    dispute resolution; and to enter stipulation or admission of

    facts and of documents, among others.

    GIVING AND GRANTING, unto my said Attorney-In-

    Fact full powers and authority to do and perform all andevery act and things whatsoever requisite or necessary to

    be done in and about the premises as full to all intents and

    purposes as I might or could be lawfully do if personally

    present; and

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    HEREBY RATIFYING AND CONFORMING, all that my

    said Attorney-In-Fact shall lawfully do or cause to be done

    by virtue of these present.

    IN WITNESS WHEREOF, I have hereunto set myhand this 17 day of August, 2007, in New York, U.S.A.

    HAIDE LAGROSA.YANCE

    Principal"

    It bears stressing that portions of the SPA in question reads:

    To represent me in filing of a civil case against sps.

    Cesar Pages for recovery of possession involving myproperty which is registered under TCT No. 52170; to file

    the action, petition or claim and verify the same and

    execute the corresponding certification of non-forum

    shopping until their final termination, after exhaustion of ill

    possible appeal.

    It is clear from the foregoing that the authorization to execute

    the corresponding certification of non-forum shopping is also for the

    case to be filed against sps. Cesar Pages.

    There is no such authorization against sps. Andres Pages. There

    if therefore no valid certification against forum shopping. This case

    has to be dismissed. This defect is fatal. This cannot even cured by

    submitting another certification against forum shopping.

    When the court a quo ruled for the admission of the Special

    Power of Attorney, Exh. A, defendants filed a motion for

    reconsideration, which reads as follows:

    The objection to the Exh. A SPA, was made when the

    document was formally offered.

    The court a quo not only ruled for admission of Exh. A in

    evidence but ruled that the filing of this case against sps. Andres

    Pages is authorized by the SPA even though the authorization was

    against sps. Cesar Pages only.

    2.

    Second Assigned Error.

    The court a quo erred in reversing

    the findings of facts of the Court of

    Appeals that there was an argument

    sometime in July 1997, prior to the

    death of Cesar Yance, between Cesar

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    Yance represented by Maria Cristina

    Yance by virtue of a Special Power of

    Attorney and spouses Andres Pages

    to buy the subject property.

    Exhibit 7 - Decision of Regional Trial Court Br. 195 by the

    Honorable Judge Aida Estrella Macapagal in the case entitled SPS Andres

    Pages and Nona Pages, plaintiff versus state of Cesar Yance and Maria

    Cristina Yance, defendants docketed or civil case No.99-0241 reads;

    Decision

    This is a verified complaint for specific performance.

    For failure of the defendants to file responsive

    pleadings, the motion to declare them in default was

    granted and plaintiffs were allowed to present evidence

    ex-parte before the Branch Clerk of Court of this Court who

    was designated commissioner for that purpose.

    Before the commissioner, Atty. Benjamin V. Aritao,

    counsel for plaintiffs, marked documents (Exhibits "A" to

    "D' and sub-markings) to prove compliance with judicial

    requirements and thereafter presented plaintiff AndresPages to testify in Support of the allegation in their

    complaint.

    Mr. Pages testified that he and his wife, Nona and

    the defendants, Cesar Yance and Maria Cristina Yance, are

    neighbors and that the latter used to visit them. During

    one of the visits of the defendants Maria Cristina, she

    offered to sell to them by virtue of a Special Power of

    Attorney (Exh. E" and sub-marking) executed by her

    father, defendant Cesar, in her favor, properly covered by

    Transfer Certificate of Title No. 52170 (Exh. F). The said

    property is the same lot as the one situated adjacent to

    their' which consist of an area of 180 square meters. He

    and his wife accepted defendant Ma. Cristina's offer. The

    agreed price was P5,500.00 per square meter. They have

    made 18 partial payments as evidenced by the receipts

    (Exh. G to G-17) issued to them by defendant Maria

    Cristina However, the sale agreement that was reduced

    into writing (Exh. H" and sub-markings) was only with

    regard to one-half of the property (90 sq.m.) as they

    (plaintiffs), were only making partial payments. The otherhalf of the property will be paid only after full payment of

    the first half thereof. When they were able to pay in full

    the first half of the properly, they could no longer find

    defendant Ma Cristina. In view of this, the consulted a

    lawyer in order to protect their interest in the said property

    and were advised to file an adverse claim on the property

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    (Exh. "I" and sub-marking). They also filed the instant

    complaint and caused annotation of lis pendens (Exh. "J)

    on the title of the subject property. Since defendant Cesar

    had already passed away, his estate was impleaded in the

    instant complaint. Further, in their need to protect theirinterest, they contracted the services of counsel in the

    amount of P50,000.00.

    Witness likewise identified all the documents

    presented and marked before the commissioner.

    The contract entered into between the parties in

    this case is a contract to sell involving 90 square meters of

    a parcel of land located at Lot 16, Blk 9, Thomas Street,

    Multinational Village, Paraaque City, and covered by TCT

    52170.It was provided in their written agreement (Exhibit

    H) that the seller would execute the deed of sale upon

    payment of the purchase price of P495,000.00. But record

    show that a contrary to the claim of the plaintiffs the

    purchase price has not yet been fully paid. A careful

    perusal of the evidence (Exhibits "G"-G-17") presented by

    the plaintiffs would reveal that they have only paid the

    amount of P495,400.00 which is P5,600.00 short of the

    agreed price of P495,000.00.

    In a contract to sell real property on installments,the full payment of the purchase price is a positive

    suspensive condition, the failure of which is an event that

    prevent the obligation of the vendor to convey the title

    from acquiring any obligatory force. The transfer of

    ownership and title would occur only after full payment of

    the purchase price (Leao vs Court of Appeals, 369 SCRA

    36).In the case at bar, the failure of the plaintiffs to make

    the full payment of the purchase price prevents defendants

    obligation to convey title from acquiring any binding force,

    hence plaintiffs prayer that defendants be compelled toexecute a deed of sale over the 90 square meter portion of

    the property, subject of the contact to sell, cannot be

    granted, much less the prayer for the execution of the deed

    of sale over the entire property. Suffice it state that there

    was not even an iota of evidence presented by the plaintiff

    to show that defendants also offered to sell to them the

    other half of the subject property.

    On appeal to the Court of Appeals, the court of appeals ruled:

    DECISION

    The Case

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    "Before us is an appeal from the Decision of the

    Regional Trial Court, Branch 195, Paraaque City Civil Case

    No. 99 -0241, disposing as follows:

    xxxWHEREFORE, for failure of the

    plaintiffs to preponderantly prove their

    claims, the same are DENIIED, and the

    instant complaint is hereby ordered

    DISMISSED.

    SO ORDERED.

    Paraaque City January 31,2005.

    Facts

    Sometime in July 1997, herein defendant-appellee, Maria Cristina

    Yance, offered to sell to plaintiffs-appellants, spouses Engr. Andes P. Pages

    and Nona Pages, by virtue of a Special Power of Attorney, a residential lot,

    located at Lot 16, Block 9, Thomas Street, Multinational Village, Paraaque

    City, covered by Transfer Certificate of Title No . 52170, with an area of 180

    square meters. The lot was registered in the name of Cesar Yance, the late

    father of Maria Cristina Yance. Plaintiffs-appellants accepted the offer andthe agreed purchase price was P5,500.00 per square meter.

    On December 16, 1997, plaintiffs-appellants and defendant-appellee

    Maria Cristina Yance, executed a sale agreement denominated as "Contract

    Sell," for the sale of only half of the total area, that is 90 square meters with

    the following terms and conditions:

    xxx

    The BUYER shall pay to the SELLER the agreed

    purchase price of the said parcel of land as follows:

    a.)A down payment of (101,400.00), One Hundred One

    Thousand Four Hundred, Philippine Currency, upon signing

    of this contract receipt of which is hereby acknowledged by

    the SELLER;

    b.) The balance of Three Hundred Ninety Three Thousand Six

    Hundred Pesos (393,600.00) shall be paid by the BUYER in

    regular intervals or as per need basis by the SELLER withina period of (18) months. Any amount that remains unpaid

    on the stipulated due date shall bear a penalty charge of

    (24%) per annum until fully paid. The SELLER further may,

    upon prior notice to the BUYER increase or decrease the

    interest and/or penalty herein from time to time within the

    limits of law.

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    Real estate taxes and assessment on the subject

    parcel of land shall be paid by the BUYER without resource

    to the SELLER. Upon compliance of all the conditions

    required of the BUYER under this contract, the SELLER shall

    execute the requisite deed transferring ownership of theproperty to the formers name.

    Such deed shall be registered with Register of

    Deeds within 90 days from execution thereof, and the

    SELLER shall there upon deliver the covering title to the

    BUYER. Expenses incurred for registration, documentary

    stamp, transfer tax shall be paid for by the BUYER. Capital

    Gains Tax shall be paid for by (sic) the SELLER.

    No transfer or assignment of the BUYERS rights and

    interest under this contract shall be valid without the

    written acknowledgement and consent of the SELLER.

    This Contact shall be obligatory and binding upon

    the heirs, successors, administrator and assign of the

    respective parties.

    xxx"

    As of the other half plaintiff-appellants will pay the purchase price

    thereof after making a full payment of the first half of the property.

    After making eighteen (18) partial payments, plaintiffs-appellants

    wanted to pay the full purchase price of not only the 90 square meter

    portion of the property by said contact to sell, but the whole 180 square

    meters thereof, but defendants-appellee, Maria Cristina Yance could no

    longer be found. Hence, plaintiffs-appellants instituted a complaint for a

    specific performance before the Regional Trial Court, Paraaque City. The

    complaint was docketed as Civil Case No. 99-0241.

    Defendant-appellee, Maria Cristina Yance, upon motion of plaintiffs-

    appellants, was declared in default after the former failed to file any

    responsive pleading to the complaint. The case was then referred to the

    Clerk of Court, Lilibeth O. Adaga, who was designated as commissioner for

    the presentation of evidence ex parte.

    The RTC Ruling

    Base on the Commissioner's Report, the court a quo rendered a

    default judgment and ruled as follows:

    xxx

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    The contract entered into between the parties in

    this case is a contract to sell involving 90 square meters of

    a parcel land located at Lot 16, Blk 9, Thomas Street,

    Multinational Village, Paraaque City, and covered by TCT

    52170.It was provided in their written agreement (ExhibitH) that the seller would execute the deed of sale upon

    payment of the purchase of (P495,000.00). But the records

    show that contrary to the claim of plaintiffs, the purchase

    price has not yet been fully paid. A careful perusal of the

    evidence Exhibits G"-G-17) presented by the plaintiffs

    would reveal that they have only paid the amount of

    P489,400.00 which is short P5,600.00 short of the agreed

    price of P495,000.00.

    In a contract to sell real property on installment,

    the full payment of the purchase price is a positive

    suspensive condition, the failure of which is an event that

    prevents the obligation of the vendor to convey the title

    from acquiring any obligatory force. The transfer of

    ownership and title would occur only after full payment of

    the purchase price (Leano vs Court of Appeals, 369 SCRA

    36). In the case at bar, the failure of the plaintiffs to make

    the full payment of the purchase price prevents

    defendants' obligation to convey title from acquiring any

    binding force, hence plaintiffs prayer that defendant be

    compelled to execute a deed of sale over the 90 squaremeters portion of the property, subject of the contract to

    sell, cannot be granted, much less the prayer for the

    execution of the deed of sale over the entire property.

    Suffice it to state that there was not even an iota of

    evidence presented by the plaintiffs to show that

    defendants also offered to sell to them the other half of the

    subject property.

    WHEREFORE, for failure of the plaintiffs to

    preponderantly prove their claims, the same are DENIED,

    and the instant complaint is hereby ordered DISMISSED.

    SO ORDERED.

    Paraaque City; January 31,2005."

    The findings of fact of the Court of Appeals in the said case

    entitled sps. Pages vs. Estate of Cesar Yance and Maria Cristina Yance

    reads:

    Sometime in July 1997, herein defendant-appellee

    Maria Cristina Yance offered to sell to plaintiff-appellantspuses Engr Andres and Nona Pages by virtue of a Special

    Power of Attorney, a residential lot, located at lot 16, block

    9 Thomas Street, Multinational Village, Paraaque City

    covered by certificate of title No. 52170 with an area of

    180 square meters. The lot was registered in the name of

    Cesar Yance, the late father of Maria Cristina Yance,

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    plaintiff-appellant accepted the offer and the agreed

    purchase price was P5,000.00 per square meter.xxxx

    The Court of Appeals decision continuous to state:

    After making eighteen (18) partial payments, plaintiff-

    appellants wanted to pay the full purchase price of not only the 90

    square meter portion of the property by said contract to sell but the

    whole 180 square meters thereof, but defendants-appellee, Maria

    Cristina could no longer be found. Hence plaintiff-appellants

    instituted complaint for a specific performance before the trial court,

    Paraaque City. The complaint was docketed as Civil Case No. 99-

    0241.

    Defendant-appellee, Maria Cristina Yance, upon motion of

    plaintiff-appellant was declared in default after the former failed to

    file any responsive pleading to the complaint. The case was then

    referred to the clerk of court Lilibeth O. Adaga, who was designated

    as commissioner for the presentation of evidence ex parte. Based on

    the commissioners report, the court a quo rendered a default

    judgment and ruled as follows:

    3. Third Assigned Error.

    The court a quo erred in reversing

    the findings of facts of the Court of

    Appeals in the case entitled

    and

    docketed as CA GR CV No. 86145

    that there is contract to sell between

    the estate of Yance and the

    defendants spouses Andres Pages.

    The finding of facts of the Court of Appeals are as follows:

    Sometime in July 1997, herein defendant-appellee,

    Maria Cristina Yance, offered to sell to plaintiffs-appellants,

    spouses Engr. Andes P. Pages and Nona Pages, by virtue of

    a Special Power of Attorney, a residential lot, located at Lot

    16, Block 9, Thomas Street, Multinational Village,

    Paraaque City, covered by Transfer Certificate of Title No .52170, with an area of 180 square meters. The lot was

    registered in the name of Cesar Yance, the late father of

    Maria Cristina Yance. Plaintiffs-appellants accepted the

    offer and the agreed purchase price was P5,500.00 per

    square meter.

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    The Court of Appeals decision also raised the core issues to be

    resolved as follows:

    The core issue to be resolved is whether or not the

    contact denominated as "Contract to Sell", which was

    entered by and between herein plaintiffs-appellants and

    defendants and defendant-appellee, Maria Cristina, is a

    contract to sell or contract of sale.

    In a contract to sell, the vendor reserves ownership

    of the property and is not to pass until full payment. Om

    the other hand, a contract is one of sale, absent any

    stipulation therein reserving title over the property to the

    vendee until full payment of the purchase price nor giving

    the vendor the right to unilaterally rescind the contract incase of non-payment. Thus in a contract of sale, the sale is

    absolute, in which title passes to the buyer upon delivery of

    the thing sold.

    In the instant case, herein plaintiffs-appellants

    argued that while their contract was denominated as

    contract to sell, it was really a contract of sale since there

    was no stipulation reserving ownership of the subject land

    until full payment of the purchase price, and because

    earnest money was given as part of the purchase price.

    xxx

    Upon compliance of all the condition required of

    the BUYER under this contract, The SELLER shall execute

    the requisite deed transferring ownership of the property

    to the formers name.

    Xxx

    One of the conditions in the contact is the fullpayment of the purchase price which is P495,000.00.

    Before the fulfillment of such condition, ownership over the

    thing sold retains with the seller, Maria Cristina Yance. We

    note that herein plaintiffs-appellants, spouses Andres

    Pages and Nona Pages, could not even categorically state

    the total amount of money that they had paid to the seller,

    Maria Cristina Yance, as would entitle the former to be

    transferred with ownership of the thing sold. The trial court

    found that herein plaintiffs-appellants paid only

    P489,400.00. We do not find any evidence to disturb suchfactual finding of the court a quo. Thus, be that as it may,

    the full purchase price has yet to be paid by herein

    plaintiff-appellants since they paid only P489,400.00,

    which is P5,600.00 short of the agreed price. Hence, the

    seller, herein defendant-appelee, Maria Cristina Yance still

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    retains ownership over the property sold until full payment

    of the purchase price hereof.

    However, we note that the seller, Maria Cristina

    Yance, seems to have no more intention, without justcause, of continuing with her contract herein plaintiffs-

    appellants, spouses Andres Pages and Nona Pages, as the

    former could no longer be located. The least that herein

    plaintiffs-appellants could do, for them to be entitled to

    specific performance, that is, that a contract of sale over

    the 90 square meter portion of the property be executed in

    their favor, is to make a consignation of the balance of the

    purchase price by depositing it at the disposal of judicial

    authority.

    The above Court Rulings in the RTC and affirmed and

    undisturbed by the findings of the Court 0f Appeals show that

    Plaintiffs cause of action is barred by prior judgment under the

    doctrine of res judicata and in connection therewith, the Supreme

    Court has made the following pronouncements applicable to the

    instant case.

    a. Res Judicata refers to the rule of the final judgment or decree on the

    merits by a court of competent jurisdiction is conclusive of the rightsof the parties or privies in all later suits on points and matters

    determined in the former suit. It extends only to the facts and

    condition as they existed at the time the judgment was rendered and

    the legal rights and relation of the parties fixed by the fact so

    determined. (Caina v. Court of Appeals, 238 SCRA 252 (1994).

    b. The doctrine of res judicata is more than a mere rule of law, more

    even that an important principle of public policy and it is not too

    much to say that it is a fundamental concept in the organization ofevery jural society. (Sumaong v. Regional Trial Court Br. XXXI,

    GUIIMBA, NUEVA ECIJA 215 SCRA 136 (1992).

    c. It is to the interest of the public that there should be an end to

    litigation by the parties over a subject and fairly adjudicated, and an

    individual should not be vexed twice for the same cause (Cartlet v.

    Court of Appeals. 275 SCRA 97 (1997).

    The principle of res judicata actually embraces two differentconcepts: (1) bar by former judgment and (2) conclusiveness of

    judgment.

    d.

    The doctrine of res judicata has two aspects: (a) the effect of a

    judgment as a bar to the prosecution of a second action upon the

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    same claim, demand or cause of action; and (b) preclude relitigation

    of a particular fact of issues in another action between the same

    parties on a different claim or caused action.

    e. Bar by former judgment bars prosecution of a second action upon

    the claim, demand or cause of action, demand or cause of action

    while conclusive of action bars relitigation of facts or issues in

    another litigation between the same parties on a different claim or

    cause of action. (Calalang v. Register of Deeds, 231 SCRA 88 (1994).

    f.

    There is "bar by former judgment" when, between the first case

    where the judgment was rendered, and the second case where the

    judgment is invoked, there is identity of parties, subject matter andcause of action while there is "conclusiveness of judgment where

    there is only identity of parties but there is no identity of cause of

    action, the judgment being conclusive in the second case only as to

    those matters actually and directly controverted and determine, and

    not as to matters merely involved therein. (Islamic Directorate of the

    Philippines v. Court of Appeals, 272 SCRA 454 (1997).

    There is conclusiveness of judgment where between the first

    case in the judgment is rendered, the second case wherein suchjudgment is invoke, there is no identity of cause of action, the

    judgment being conclusive is the second case only as to those matter

    actually and directly controverted and determined and not as to

    matters merely involved therein.

    g.

    A party cannot evade the application of the rule of res judicata by

    adopting a different method of presenting his case. (Cartlet v. Court

    of Appeals, 195 SCRA 659 (1991).

    4.

    Fourth Assigned Error.

    The court a quo erred in holding that

    plaintiff as the registered owner of

    the property has the better right to

    possess the property

    notwithstanding the fact that there

    is an adverse claim annotated at the

    back of the title respecting a

    contract to sell in favor of the

    defendants spouses Andres Pages,

    the existence of which is confirmed

    ruled by the Court of Appeals in said

    CA GR No. .

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    While the case was dismissed because there is a balance of

    P5,600.00 in the payment of the purchase price, the dismissal does

    not mean that there is no contract to sell. There is a contract to sell

    but because there is a balance of P5,600.00 it did not give rise to theright to compel by specific performance defendant estate of Yance,

    that is why the Court of Appeals suggested consignation of the

    balance of P5,600.00

    The dismissal clearly does not mean that the findings of the

    RTC Br. 195 as no longer affirmed by the Court of Appeals when it

    ruled that:

    On the contrary that finding of the coexistence of the saidcontract to sell remains but the prayer for the specific cannot be

    granted for the reason that there was a balance of P5,600.00. that is

    why the case for specific performance was dismissed.

    But the Regional Trial Court grievously erred when it recalled

    that because of the dismissal of the specific performance case there

    was contract to sell.

    Even though the case was dismissed, the notice of les pendensis proof that plaintiff-appellees claim that they do not know of the

    case as not correct. Notice of les pendens in notice to the whole

    world, including of the pending of the action.

    5.

    The court a quo erred in ordering

    defendants to vacate the property in

    question, to pay plaintiff damages,

    attorneys fees and cost.

    The claim of defendants-appellants is valid and legal in the

    light of the foregoing reversible error committed by the Regional

    Trial Court. Hence, defendants-appellants should not be made to pay

    any form of damages.

    Defendants-appellants believe in good faith that they have a

    right to the reliefs for under the facts and the law on the following:

    a.)

    They have a right to rely of the finality of judgment of the Court ofAppeals finding. The existence of the contract to sell between the

    estate of Yance and them.

    b.)No action has been brought to declare the said decision of the

    Court of Appeals null and void.

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    Court:

    : Thats why.

    Atty. Allaga:

    : Yes, Your Honor.

    Court:

    : The validity, it seems that the line of questioning that you are

    propounding, you will be short of attacking of assailing the

    validity of that Contract to Sell. But the existence of the

    Contract to Sell, which is already a factual. It is already a

    res judicata. It should be admitted.

    Atty. Allaga:

    : Admitted Your Honor.

    Court:

    : But you are now trying to assail the validity of that?

    Atty. Allaga:

    : Yes, Your Honor.

    Court:

    : Is that your contention?

    Atty. Allaga:

    : Yes, Your Honor, because, Your Honor please.

    Court:

    : Okay, I will allow that, but just limit to the fact that the

    execution of the Contract to Sell transpired after the death

    of Cesar.

    Atty. Allaga:

    : Yes, Your Honor.

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    Court:

    : If that is so, whatever conclusions that maybe arrived at, just

    leave it to the court, because that will be already a legal

    question.

    Atty. Allaga:

    : Yes, Your Honor, we submit, your Honor.