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  • CD-Legarda vs. CA

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    Xyrus Bucao
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    The Supreme Court ruled that the successors-in-interest of Cabrera, who purchased a property from Legarda at a public auction, are innocent purchasers for value and in good faith. Under the Torrens system, one need only rely on the title and is charged with notice of any annotations. Since no notice of lis pendens was annotated on the titles, the successive purchasers of the property were protected as innocent purchasers and it was no longer possible to return the property to Legarda. The Court affirmed that each successor relied on clean titles from their predecessors and were valid owners under the Torrens system.

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    The Supreme Court ruled that the successors-in-interest of Cabrera, who purchased a property from Legarda at a public auction, are innocent purchasers for value and in good faith. Under the Torrens system, one need only rely on the title and is charged with notice of any annotations. Since no notice of lis pendens was annotated on the titles, the successive purchasers of the property were protected as innocent purchasers and it was no longer possible to return the property to Legarda. The Court affirmed that each successor relied on clean titles from their predecessors and were valid owners under the Torrens system.

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    © All Rights Reserved
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    51 views2 pages

    CD-Legarda vs. CA

    Uploaded by

    Xyrus Bucao
    The Supreme Court ruled that the successors-in-interest of Cabrera, who purchased a property from Legarda at a public auction, are innocent purchasers for value and in good faith. Under the Torrens system, one need only rely on the title and is charged with notice of any annotations. Since no notice of lis pendens was annotated on the titles, the successive purchasers of the property were protected as innocent purchasers and it was no longer possible to return the property to Legarda. The Court affirmed that each successor relied on clean titles from their predecessors and were valid owners under the Torrens system.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
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    of 2

    Legarda vs.

    CA
    G.R. No. 94457 October 16, 1997
    “Innocent Purchaser for Value”

    FACTS:

    The parties hereto entered into a lease agreement over a certain Quezon City property owned by
    petitioner Victoria Legarda. For some reason or another, she refused to sign the contract although
    respondent lessee, Cathay, made a deposit and a down payment of rentals, prompting the latter to file
    before the Regional Trial Court a complaint against the former for specific performance with preliminary
    injunction and damages. The court a quo issued the injunction. In the meantime, Legarda's counsel,
    noted lawyer Dean Antonio Coronel, requested a 10-day extension of time to file an answer which the
    court granted. Atty. Coronel, however, failed to file an answer within the extended period. His client was
    eventually declared in default, Cathay was allowed to present evidence ex-parte, and a judgment by
    default was reached by the trial court ordering Legarda to execute the lease contract in favor of, and to
    pay damages to, Cathay.

    A copy of said decision was served on Atty. Coronel but he took no action until the judgment
    became final and executory. A month later, the trial court issued a writ of execution and a public auction
    was held where Cathay's manager, Roberto V. Cabrera Jr., as highest bidder, was awarded the property
    of P367,500.00 in satisfaction of the judgment debt. Consequently, a Certificate of Sale was issued by the
    sheriff. Upon failure of Legarda to redeem her property within the one-year redemption period, a Final
    Deed of Sale was issued by the sheriff. It was registered by Cabrera with the Register of Deeds. Hence,
    Legarda's Transfer Certificate of Title (TCT) No. 270814 was cancelled with the issuance of TCT No.
    350892 in the name of Cabrera.

    There were 3 subsequent transfers of the said property. The first is from Cabrera to Nancy Saw;
    second, from Nancy Saw to Lily Tanlo Sy Chua; and third, from the spouses Victor and Lily Sy Chua to
    Janet Chong Luminlun. With these transfers, Cabrera's TCT No. 350892 gave way to Saw's TCT No.
    31672, then to Chua's TCT No. 31673, and finally to Luminlun's TCT No. 99143, all issued by the
    Register of Deeds of Quezon City

    ISSUE:

    Whether or not the successors-in-interest of Cabrera are innocent purchasers for value and good
    faith.

    RULING:

    Supreme Court ruled that the successors-in-interest of Cabrera are innocent purchasers for value
    and good faith.

    It is settled doctrine that one who deals with property registered under the Torrens system need
    not go beyond the same, but only has to rely on the title. He is charged with notice only such burdens and
    claims as are annotated on the title."

    In the case at bar, it is not disputed that no notice of lis pendens was ever annotated on any of
    the titles of the subsequent owners. And even if there were such a notice, it would not have created a lien
    over the property because the main office of a lien is to warn prospective buyers that the property they
    intend to purchase is the subject of a pending litigation. Therefore, since the property is already in the
    hands of Luminlun, an innocent purchaser for value, it can no longer be returned to its original owner by
    Cabrera, much less by Cathay itself.

    Thus, we do not have to belabor the fact that all the successors-in-interest of Cabrera to the
    subject lot were transferees for value and in good faith, having relied as they did on the clean titles of their
    predecessors. The successive owners were each armed with their own indefeasible titles which
    automatically brought them under the eagis of the Torrens System.

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