486 Phil. 452
PANGANIBAN, J.:
“In fine, then, we find and so declare that the [respondent] had a cause of action against the [petitioner spouses] for ‘Specific Performance and Damages.’ Hence, the [c]ourt a quo committed a reversible error in dismissing the ‘Supplement to Amended Complaint’ of the [respondent] as against the [petitioner spouses].
“Before we write finis to the present recourse, we stress that our resolution of the issue on the nature of the transaction over the property between the [respondent] and x x x Bunye is merely provisional. The final resolution of the issue will have to be rendered by the court a quo after the parties shall have adduced their respective evidence on said issue.
“IN THE LIGHT OF ALL THE FOREGOING, the appeal is GRANTED. The Order of the [c]ourt a quo, dated February 1, 2000, is SET ASIDE. Let the records be remanded to the [c]ourt a quo for further proceedings.”[3]
“Madeliene S. Bunye was the owner of a parcel of residential land, located in Adelfa Street, Ayala Alabang Village, Alabang, Muntinlupa, Metro Manila, covered by Transfer Certificate of Title No. 17133 issued by the Register of Deeds. On December 27, 1993, [Respondent] Juan Jose Jordana wrote a letter to x x x Bunye offering to purchase the said property for the price of P12,300,000.00 payable in cash, on January 31, 1994, and to remit to her, by way of earnest money, the amount of P500,000.00 within five (5) days from his receipt of her acceptance of said offer. On December 28, 1993, x x x Bunye wrote a letter to [respondent] informing the latter that she accepted his offer and requesting him to remit the earnest money within five (5) days from his receipt of said letter. [Respondent] received the letter, on December 29, 1993, and had until January 3, 1994 within which to remit the earnest money. [Respondent] did remit the P500,000.00 earnest money but x x x Bunye refused to receive the money. On January 3, 1994, x x x Bunye wrote a letter to [respondent] confirming her rejection of the earnest money and that she can no longer accept his offer of P12,300,000.00 as her property was worth much more. She apologized for any inconvenience caused to him. However, she added that she would be willing to sell her property to him for P16,000,000.00.
“Unknown to [respondent], x x x Bunye executed a ‘Special Power of Attorney’ on December 29, 1993, or a day after [she] accepted [his] offer to purchase the property, authorizing Lourdes Cuerva to sell the said property and to execute the appropriate contract therefor. The latter did offer to sell the said property to the [petitioners,] Spouses Ramon R. Jimenez, Jr. and Annabelle L. Jimenez, for the price of P14,350,000.00, and the couple agreed. On August 5, 1994, x x x Bunye, through her attorney-in-fact, Lourdes Cuerva, as Seller, and [petitioner-]spouses x x x as Buyers, executed a ‘Contract to Sell’ over the said property for said price, of which P4,500,000.00 was payable, upon the execution of said deed, and the balance payable on or before March 30, 1995 and with the understanding of the Seller that:‘2. Upon completion of payment, the SELLER agrees to execute a Deed of Absolute Sale over subject property in favor of the BUYERS free from all liens and encumbrances, and in connection therewith, the SELLER agrees to submit/surrender to the BUYERS all documents and papers evidencing their right of ownership over the property subject of this Contract necessary to formalize BUYERS’ title over the same, and undertake to sign all documents that may be necessary for the purpose.’“Conformably with the said deed, [petitioner-spouses] remitted to x x x Cuerva, on August 5, 1994, the amount of P4,500,000.00 as downpayment for the property for which x x x Cuerva issued a ‘Receipt.’ To protect their rights over the property, the spouses x x x executed an ‘Affidavit of Adverse Claim’ over the property and had the same annotated, on August 15, 1994, at the dorsal portion of Transfer Certificate of Title [TCT] No. 171333.
“On March 1, 1995, [petitioners] wrote a letter to x x x Cuerva informing her that they will be paying the balance of the purchase price of the property earlier, on March 3, 199[5], at 8:00 o’clock in the morning, x x x.
“On March 7, 1995, [petitioners] received a letter from x x x Cuerva informing [them] that she was no longer the attorney-in-fact of Bunye, who was then in the United States of America and suggested that [petitioners] communicate with her at her address in the United States stated in the letter.
“On March 10, 1995, the Register of Deeds cancelled the ‘Adverse Claim’ of [petitioners] annotated at the dorsal portion of [TCT] No. 171333.
“On March 14, 1995, [petitioners] wrote a letter to Bunye, in the United States of America, informing her that they had already deposited the balance of the purchase price of the property, in her account, with the Asian Bank, Greenbelt Branch, under Savings Account No. 2006-13-00558-4. [They then] requested Bunye to execute the appropriate ‘Deed of Absolute Sale’ over the property in their favor and deliver to them the owner’s duplicate of the title to the property under their names, within five (5) days from her receipt thereof.
“On March 15, 1995, or more than one (1) year from the rejection by Bunye of his proferred earnest money, [Respondent] Jordana filed a complaint against Bunye, with the Regional Trial Court of Makati City, entitled and docketed as ‘Juan Jose Jordana, Plaintiff versus Madeliene S. Bunye, Defendant, Civil Case No. 95-443,’ for ‘Specific Performance and Damages’ praying that, after due proceedings, judgment be rendered in her favor x x x.
[Respondent] alleged, inter alia, in his complaint, that he and x x x Bunye had already entered into a perfected contract over the property but that, despite his demand, she refused to execute a ‘Deed of Absolute Sale’ over the property despite his offer to remit the earnest money and his readiness to pay the balance of the purchase price of the property.
“On March 15, 1995, [respondent] filed a ‘Notice of Lis Pendens’ with the Register of Deeds, for annotation at the dorsal portion of [TCT] No. 171333. However, the Register of Deeds refused claiming that the action of [respondent] was personal and that no formal deed of sale has been executed between [respondent] and Bunye over the property.
“On the same day, Bunye wrote a letter to [petitioners] informing them that she will be in the Philippines on March 23, 1995. [Bunye] requested the spouses to have the ‘Deed of Absolute Sale’ over the property prepared for her signature when she arrived in Manila.
“On March 17, 1995, [respondent], through counsel, wrote a letter to x x x Bunye in the United States informing her of the filing, by [respondent] of his complaint against her, with the Regional Trial Court, for ‘Specific Performance.’
“In the meantime, on March 19, 1995, [petitioners] wrote a letter to Madeliene S. Bunye suggesting that she execute a ‘Special Power of Attorney’ authorizing Lourdes Cuerva to execute the ‘Deed of Absolute Sale’ over the property in their favor even before her arrival in the Philippines. Bunye agreed to the appointment of an attorney-in-fact, in the person of Ernesto del Rosario.
“When Bunye received the letter of the counsel of [respondent], she wrote a letter to [petitioners], dated March 23, 1995, informing them of the claim of [respondent] in his complaint and that, as soon as she received the ‘Special Power of Attorney’ from the Secretary of the State of Washington, she will return to the Philippines.
“In the meantime, [respondent] filed, on March 24, 1995, in Civil Case No. 95-443, a ‘Very Urgent Ex-Parte Motion,’ praying that an x x x an Order [be] immediately issued directing the Register of Deeds of Makati to immediately annotate the [Notice of] Lis Pendens on TCT No. 171333.’
“The summons and complaint in Civil Case No. 95-443 were served on Bunye through her security guard, Joseph Ytac, on March 23, 1995, as she was still in the United States of America.
“On March 28, 1995, [petitioners] filed, in Civil Case No. 95-443, a ‘Motion for Leave to Intervene’ x x x. “However, [respondent] opposed the motion x x x.
“[Petitioners, on the other hand,] opposed the motion of [respondent] to compel the Register of Deeds to annotate the ‘Notice of Lis Pendens’ at the dorsal portion of [TCT] No. 171333.
“On March 30, 1995, [respondent] executed a ‘Notice of Adverse Claim’ and had the same annotated on March 31, 1995 at the dorsal portion of [TCT] No. 171333.
“On April 5, 1995, [TCT] No. 171333 was cancelled on the basis of the ‘Deed of Absolute Sale’ executed on March 30, 1995 by Bunye, pendente lite, in favor of [petitioners] and, on the same day, the Register of Deeds issued [TCT] No. 200308 over the property to and under the name of the said spouses. The ‘Adverse Claim’ of [respondent] was carried over in said title, x x x, as Entry No. 18053.
“On June 13, 1995, [petitioners] secured a loan from the Urban Bank in the amount of P12,000,000.00 and executed a ‘Real Estate Mortgage’ over the said property, as security therefor which deed was annotated, on June 14, 1995, at the dorsal portion of [TCT] No. 200308.
“On September 12, 1995, [respondent] filed an ‘Amended Complaint’ impleading the [petitioners] as Parties-Defendants x x x.
“[Petitioner] spouses x x x filed a ‘Motion to Dismiss’ the Amended Complaint on the grounds that the Amended Complaint did not state a cause of action against them and [for] laches. [Respondent] filed an ‘Opposition’ to the ‘Motion to Dismiss’ of [the] spouses.
“In the meantime, the Register of Deeds caused the annotation, on October 24, 1995, of the ‘Notice of Lis Pendens’ filed by [respondent] at the dorsal portion of [TCT] No. 200308.
“Before the Court could resolve the ‘Motion to Dismiss’ of the [petitioners], [respondent] filed a ‘Motion for Leave to File Supplement to Amended Complaint,’ impleading the Urban Bank, as [p]arty-[d]efendant x x x.
“On February 7, 1996, [respondent] filed his ‘Supplement to Amended Complaint’ x x x.
“[Petitioners] filed an ‘Opposition’ to [respondent’s] motion. On July 2, 1996, the Court issued an Order granting the motion of [respondent] and admitting [his] ‘Supplement to Amended Complaint.’ [Petitioners] filed a ‘Motion for Reconsideration’ of the aforesaid Order of the Court. [Urban] Bank likewise filed a ‘Motion to Dismiss’ the ‘Supplement to Amended Complaint’ on the ground that it stated no cause of action against it. [Respondent] filed an ‘Opposition’ to the ‘Motion for Reconsideration’ of [petitioners] and the ‘Motion to Dismiss’ of the x x x bank. On February 1, 2000, the Court issued an Order granting the ‘Motion to Dismiss’ of [Urban] Bank and the ‘Motion for Reconsideration’ of [petitioners] on the ground that the ‘Amended Complaint’ and the ‘Supplement to Amended Complaint’ did not state causes of action against [them].”[4]
The foregoing questions point to only one main issue: the nature and the sufficiency of respondent’s cause of action, if any.
“1. Has Jordana alleged a sufficient cause of action against the Spouses Jimenez? “2. Did Jordana and Bunye execute a contract of sale or a contract to sell the subject property? “3. Did Jordana make a valid tender and consignation of payment to Bunye? “4. Did the Spouses Jimenez register their title to the subject property in good faith? “5. Is Jordana guilty of laches?”[6]
Specifically, respondent expressly prayed for a judgment ordering Bunye and petitioners “to immediately and specifically perform on the contract to sell the subject property to [him] for P12,300,000.00;”[31] “to execute a contract or deed of sale in [his] favor x x x over the subject property;”[32] and to pay him actual and exemplary damages plus attorney’s fees and litigation expenses.[33]
- He offered to buy,[19] and Bunye agreed to sell[20] to him, the Adelfa property for P12,300,000.
- As agreed, he tendered to her the sum of P500,000 on January 3, 1994, but she refused to accept it.[21]
- She informed him by letter, which he received on January 4, 1994, that she could no longer accept the offer of P12,300,000, but that she was willing to sell it for P16,000,000; thus, she was declining to receive the P500,000 earnest money he had sent.[22]
- There was a perfected contract of sale, which Bunye breached by her unreasonable refusal to complete the sale.[23]
- She unreasonably refused to heed his demand for compliance with the contract, which she “should be compelled to specifically perform.”[24]
- On or about March 30, 1995, she sold the same property to petitioners, pursuant to which TCT No. 171333 was cancelled and TCT No. 200308 issued to the latter on April 3, 1995.[25]
- “Bunye and [the] Jimenezes should be compelled to execute a contract or deed of sale over the subject property in [his] favor x x x which complies with the requirements of Article 1358 of the Civil Code”[26] that a contract involving real rights over immovable property must appear in a public document.[27]
- As a result of Bunye’s and the spouses’ “unreasonable breach and circumvention of the contract,” he suffered actual damages.[28]
- Having acted in a “wanton, fraudulent, reckless, oppressive, or malevolent manner,” Bunye and petitioners should be ordered to pay exemplary damages.[29]
- Their acts or omissions have compelled him to litigate, for which they must be ordered to reimburse attorney’s fees and litigation expenses.[30]
“4. In fact, Intervenors were officially notified on March 24, 1995 about plaintiff’s earlier contract with Madeliene E. Bunye on December 29, 1993 to purchase the same property. The seller’s refusal to honor the contract was highlighted in said letter which prompted [respondent] to file this suit to enforce his contract against [Bunye], docketed as Civil Case No. 94-443.Clearly then, he has successfully shown their knowledge of his claim prior to the actual sale of the property on March 30, 1995, before the registration of the property in their names on April 3, 1995. In Voluntad v. Spouses Dizon,[43] we explained as follows:
“5. Earlier on March 15, 1995, a Notice of Lis Pendens was filed by plaintiff before the Register of Deeds, Makati, Metro Manila informing the Honorable Office of the pendency of a case docketed as Civil Case No. 94-443 involving the property covered by TCT No. 17133.
“6. Based on these factual setting, it would readily reveal that Intervenors are no longer buyers in good faith and as such has no interest whatsoever against both [respondent] and [Bunye] much more on the property in question covered by TCT No. 171333 x x x.”[42]
“x x x. It is a settled rule that a purchaser of real estate with knowledge of any defect or lack of title of the vendor cannot claim that he has acquired title thereto in good faith as against the true owner of the land or interest therein. The same rule applies to one with knowledge of facts which should have put him on inquiry and investigation as might be necessary to acquaint him with the defects in the title of his vendor. If circumstances exist that require a prudent man to investigate and he does not, he is deemed to have acted in mala fide. A party’s mere refusal to believe that a defect exists or his willful closing of his eyes to the possibility of the existence of a defect in his vendor’s title will not make him an innocent purchaser for value if it afterwards develops that the title was in fact defective. x x x.”[44]Taken together, the allegations in the Complaint, the pleadings of the plaintiff and the record of the case sufficiently support a cause of action for recovery of property against petitioners. It is generally accepted that when property belonging to a person is unlawfully or fraudulently taken by another, the former has the right of action against the latter for the recovery of the property.[45]
“SEC. 5. Joinder of causes of action. – A party may in one pleading assert, in the alternative or otherwise, as many causes of action as he may have against an opposing party, subject to the following conditions:[47] Par. 4.1 thereof; records, p. 330.(a) The party joining the causes of action shall comply with the rules on joinder of parties;
(b) The joinder shall not include special civil actions or actions governed by special rules;
(c) Where the causes of action are between the same parties but pertain to different venues or jurisdictions, the joinder may be allowed in the Regional Trial Court provided one of the causes of action falls within the jurisdiction of said court and the venue lies therein; and
(d) Where the claims in all the causes of action are principally for recovery of money, the aggregate amount claimed shall be the test of jurisdiction.”