CD-Legarda vs. CA
CD-Legarda vs. CA
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.