422 Phil. 358; 99 OG No. 9, 137 (March 3, 2003)
PARDO, J.:
"On March 5, 1970, the spouses Dr. Ramon L. Cocson and Josefina G. Cocson (spouses Cocson, for brevity) obtained a P3,200.00 loan from Atty. Pedro Martinez, to finance their children's college studies. To secure payment of said loan, the spouses Cocson executed in favor of Atty. Martinez a Contract of Mortgage and Promissory Note, dated March 5, 1970, over their two parcels of land, as follows:In time, both the spouses Cocson and Atty. Martinez filed separate notices of appeal.[5] However, for failure of the spouses Cocson to pay the docket fee within the reglementary period, the Court of Appeals dismissed their appeal.[6]"1. a parcel of unirrigated rice land declared in the name Ramon Cocson with an area of 6,336 sq. meters assessed at P316.00, bounded on the North by Pedro Florendo; on the West by Barrio Road; on the East by a ditch; on the South by Pedro Florendo, covered by Tax Declaration No. 29245."The spouses defaulted in the payment of their mortgage obligation. Atty. Martinez caused the extra-judicial foreclosure of the mortgaged properties and was the only bidder for P8,359.75 at the public auction conducted on December 10, 1971. The Provincial Sheriff Ex-Oficio of La Union, Alfredo A. Talavera, issued the corresponding Certificate of Sale which was duly registered under Entry No. 74716 and Inscription No. 74519 on January 28, 1972.
"2. a residential lot declared in the name of Josefina G. Cocson with an area of 391.75 sq. meters more or less assessed at P540.00 bounded on the North (sic) Leona A. Cacdac, et al.; on the West by Calle Aglipay; on the East by Fely Gomez; on the South by Edita Tiglao; covered by Tax Declaration No. 28471.
"No redemption was made within the reglementary period. On December 10, 1975, Sheriff Talavera issued the Certificate of Absolute Definitive Sale over the aforesaid properties in favor of Atty. Martinez.
"On January 22, 1972, the spouses Cocson executed a Deed of Absolute Sale covering (sic) parcels of land, different from the subject of the foreclosure proceedings, and which Atty. Martinez registered with the Register of Deeds of La Union. On the basis thereof, Tax Declarations Nos. 39220 and 39221 were issued in his name.
"On September 9, 1975, Atty. Martinez sold to Natividad T. Tangalin the property covered by Tax Declaration No. 39220, evidenced by a Deed of Absolute Sale of Real Estate.
"On September 29, 1975, the spouses Cocson filed the complaint for annulment of sales plus damages with writ of preliminary injunction against Atty. Pedro Martinez and the spouses Mario Go and Natividad T. Tangalin.
"On October 13, 1975, the spouses Mario Go and Natividad T. Tangalin filed their Answer with Cross Claim against Atty. Pedro Martinez, claiming that they bought the property from Pedro Martinez in good faith and were not aware of any defect in the ownership of Atty. Martinez over said property.
"Atty. Martinez filed his Answer, first on October 28, 1975, and another on December 8, 1975.
"On June 1, 1976, the spouses Cocson filed an Amended Complaint attached to an Urgent Motion to Admit the same which included, as additional defendants, Alfredo A. Talavera and Emilio Lacsamana, the Provincial Sheriff Ex-Oficio and Deputy Provincial Sheriff of La Union, respectively. The amended complaint was admitted per Order, dated March 23, 1976.
"On July 22, 1988, the court a quo rendered the assailed decision, the dispositive portion of which reads:
"WHEREFORE, judgment is hereby rendered as follows:
"1. (a) The Contract of Mortgage and Promissory Note is declared valid; and
"(b) Ordering the Cocsons to pay the remaining unpaid balance of P1,900.00 plus penalty in accordance with the stipulation in the Mortgage Contract and Promissory Note and to pay the legal rate of interest in accordance with this decision.
"2. Declaring the Extra-judicial Foreclosure of Mortgaged real property irregular, and, therefore, the Certificate of Sale of Mortgage Real Estate Properties dated December 11, 1971 signed by Cariaso and the Certificate of Absolute Definitive Deed of Sale dated November 10, 1975 signed by Sheriff Alfredo Talavera are declared null and void.xxx xxx xxx
"3. (a) Declaring the Deed of Sale dated January 22, 1972 null and void. However, considering that one of the properties subject of said sale was acquired under a Deed of Sale dated September 9, 1975 by Natividad T. Tangalin who is a `bona fide' purchaser and for value, the latter sale should be respected; and
"(b) Ordering the Cocsons to deliver the possession of the land previously declared under Tax Declaration No. 284-72 in the name of Editha Tiglao to Natividad T. Tangalin. And if the land is in the possession of Editha the latter shall deliver the possession thereof to Natividad T. Tangalin.
"4. Ordering the plaintiffs Cocsons to refund to Pedro F. Martinez and Natividad T. Tangalin attorney's fees and expenses of litigation in the amount of P5,000 each.
"5. Ordering plaintiffs Cocsons to refund to Pedro Martinez the sum of P3,277.87 which is one-half (1/2) of the purchase price corresponding to the land belonging to Fe Gomez, the land being in their possession, and to pay interest as stated earlier in this decision.
"6. With pronouncement as to costs against the plaintiffs Cocsons.
"SO ORDERED."[4]
"WHEREFORE, the appealed decision is AFFIRMED, with MODIFICATION as follows:On August 19, 1995, spouses Cocson filed a motion for reconsideration.[12] However, on September 7, 1995, the Court of Appeals denied the motion.[13]
"1. Declaring as valid the Contract of Mortgage and Promissory Note;
"2. Ordering the spouses Cocson to pay Atty. Pedro Martinez the remaining unpaid balance of P1,900.00, plus penalty as stipulated in the Mortgage Contract and Promissory Note and to pay the legal interest from date of this decision until fully paid;
"3. Declaring the Extra-judicial Foreclosure of Mortgaged real property irregular and, therefore, the Certificate of Sale of Mortgage Real Estate Properties dated December 11, 1971, signed by Cariaso and the Certificate of Absolute and Definitive Deed of Sale, dated November 10, 1975, signed by Sheriff Alfredo Talavera are hereby declared null and void;
"4. The rest of the appealed decision is reversed and set aside, declaring the Deed of Sale dated January 22, 1972, null and void. Consequently, the Deed of Sale, dated September 9, 1975, executed by Atty. Pedro Martinez in favor of Natividad T. Tangalin, is likewise declared null and void. Atty. Martinez is ordered to return to Natividad T. Tangalin the consideration he received therefrom with legal interest from date of the appealed decision until fully paid. The spouses Cocson are likewise directed to return to Atty. Martinez the consideration they received under the Deed of Absolute Sale, dated January 22, 1972, with legal interest from date of the appealed decision until fully paid.
"SO ORDERED."[11]
"Since Editha G. Tiglao and Fe Gomez, not Josefina Cocson, are the owners of the properties covered by Tax Declarations No. 28472 and 29310 subject of the deed of sale (Exh. 8 - Cocson and Exh. 2 - Martinez) then the latter (Josefina) conveys no rights, interests and title over the said properties to Martinez under the deed of sale."[17]Likewise, the Court of Appeals found that:
"There is no clear and convincing proof on record to show that the property sold by spouses Cocson to Atty. Martinez was in actuality their property and no longer the property of Editha and Fe. The fact is, even at the time of the execution of the Deed of Sale, the said property was still covered by Tax Declarations Nos. 28472 and 29310 in the names of Editha and Fe, respectively."[18]Consequently, the sale dated January 22, 1972 of the property by the spouses Cocson to Atty. Martinez was null and void. And the sale on September 9, 1975 executed by Atty. Martinez in favor of petitioner cannot be valid as the ownership of the property was not validly transferred to Atty. Martinez in the previous sale.
"The Honorable Court below erred in the underlined portion of the decision also hereunder quoted:Surely, the Court of Appeals may consider the issue of the validity of the subsequent sale of the same property on September 9, 1975, as it is the lis mota to the issue of the validity of the January 22, 1972 sale."x x x
"(2) `3. (a) Declaring the Deed of Sale dated January 22, 1972 null and void. However, considering that one of the properties subject of the said sale was acquired under a Deed of Sale dated September 9, 1975 by Natividad Tangalin who is a `bona fide' purchaser and for value, the latter sale should be respected; x x x' (p. 33, Decision dated July 22, 1988)."[21]