1. San Fernando Rural Bank (SFRB) filed a petition for extrajudicial foreclosure against Pampanga Omnibus Development Corporation (PODC) after PODC failed to pay back loans. SFRB emerged as the winning bidder in the foreclosure.
2. PODC later assigned its right to redeem the property to Dominic Aquino. Aquino redeemed the property but SFRB rejected it. The issue of who had superior rights over the property - SFRB via an affidavit of consolidation or Aquino via a certificate of redemption - was brought to multiple courts.
3. The courts' rulings on the issue fluctuated. The RTC initially ruled in favor of
1. San Fernando Rural Bank (SFRB) filed a petition for extrajudicial foreclosure against Pampanga Omnibus Development Corporation (PODC) after PODC failed to pay back loans. SFRB emerged as the winning bidder in the foreclosure.
2. PODC later assigned its right to redeem the property to Dominic Aquino. Aquino redeemed the property but SFRB rejected it. The issue of who had superior rights over the property - SFRB via an affidavit of consolidation or Aquino via a certificate of redemption - was brought to multiple courts.
3. The courts' rulings on the issue fluctuated. The RTC initially ruled in favor of
1. San Fernando Rural Bank (SFRB) filed a petition for extrajudicial foreclosure against Pampanga Omnibus Development Corporation (PODC) after PODC failed to pay back loans. SFRB emerged as the winning bidder in the foreclosure.
2. PODC later assigned its right to redeem the property to Dominic Aquino. Aquino redeemed the property but SFRB rejected it. The issue of who had superior rights over the property - SFRB via an affidavit of consolidation or Aquino via a certificate of redemption - was brought to multiple courts.
3. The courts' rulings on the issue fluctuated. The RTC initially ruled in favor of
San Fernando Rural Bank vs. Pampanga June 7, 2001.
The affidavit was filed
Omnibus Development and Aquino with the Office of the Register of Deeds on the same day. GR No. 168088 On June 14, 2002, Aquino sent a letter Callejo, Sr, J.: to ROD informing them that he has redeem the subject property and requested not to register the Affidavit Facts: of Consolidation requested by SFRB. Pampanga Omnibus Development On June 18, 2002, ROD requested the Corporation (respondent PODC) was Administrator of the Land Registration the registered owner of a parcel of land Authority (LRA), by way of consulta, to PODC secured loans from San Fernando issue an opinion on whether a new title Rural Bank (petitioner SFRB). should be issued to SFRB, or the Eliza M. Garbes (PODC President and Certificate of Redemption in favor of daughter of Federico Mendoza), also respondent Aquino. secured a loan from the petitioner. On October 15, 2002, SFRB filed a PODC failed to pay the loan. Petition for a Writ of Possession over SFRB, filed a petition for extra-judicial the property to be issued in its favor foreclosure. SFRB emerged as the upon the filing of the requisite bond in winning bidder. an amount equivalent to the market The Ex-Officio Sheriff executed a value of the property or in an amount Certificate of Sale and stated that "the as the court may direct. period of redemption of the property By way of rejoinder, respondent PODC shall expire one (1) year after averred that the Certificate of registration in the Register of Deeds. Redemption executed by the Ex-Officio On May 11, 2002, PODC executed a Sheriff is presumed valid and legal; the notarized deed of assignment in favor RTC, acting as a Land Registration of respondent Dominic G. Aquino over Court, had no jurisdiction to pass upon its right to redeem the property. the validity of the Certificate of Respondent Aquino redeemed the Redemption property but petitioner rejected the On December 12, 2002, the LRA offer due to lack of the redemption resolved the consulta of the Register of price Deeds ……“Considering that the Ex-Officio Sheriff made another document first presented and entered computation and allowed Aquino to in the Primary Entry Book of the registry redeem the property consequently is the Affidavit of Consolidation in favor issuing Certificate of Redemption. of the creditors, the mortgagee bank However ex-officio sheriff failed to file and not the Certificate of Redemption in the Certificate in the ROD. favor of the assignee of the debtor- On June 10, 2002, SFRB, executed an mortgagor, although admittedly, the Affidavit of Consolidation over the latter instrument was executed on the property. last day of the redemption period but It was alleged therein that PODC or any not, in fact, registered within the same other person/entity with the right of period, under the premises, the redemption did not exercise their right consolidating mortgagee is possessed to repurchase within one year from with a superior right than the redemptioner. Under the law, the first finally resolved that the Certificate of in registration is the first in law.” Redemption issued by the Ex-Officio On December 20, 2002, the court in LRC Sheriff was superior to the Affidavit of No. 890 issued an Order granting the Consolidation of petitioner. petition and ordered the issuance of a On November 10, 2003, the court writ of possession. denied the motion holding that PODC, filed a motion for respondent Aquino, as the registered reconsideration of the order, but the owner of the subject property, should court denied the motion. initiate the appropriate action in the On March 6, 2003, PODC, filed a proper court in order to exclude Petition for Certiorari with the CA petitioner or any other person from the averting error that the RTC should have physical possession of his property. The dismissed the petition for a writ of court ruled that after placing SFRB in possession pending determination of possession of the property, the court the substantial issues by the LRA. had lost jurisdiction over the case. SFRB in its comment asserted that that On November 27, 2003, PODC filed the RTC, sitting as a land registration before the CA their Joint Notice of court, had jurisdiction over the petition Appeal from the November 10, 2003 for a writ of possession; thus, the Order of the RTC. remedy of respondents should have to On December 18, 2003, the CA appeal the assailed order and not to rendered judgment in the joint appeal file a petition for certiorari in the CA. granting the petition of PODC and On May 14, 2003 The RTC granted the setting aside the assailed orders of the motion and issued a writ of possession trial court. and the Sheriff implemented the writ The appellate court ruled that the and placed petitioner in possession of December 20, 2002 Order of the RTC the property. granting the petition for a writ of On September 4, 2003, SFRB filed a possession was interlocutory and not Complaint against PODC and the Ex- final; hence, it may be questioned only Officio Sheriff in the RTC of Pampanga, via petition for certiorari under Rule 65 for the nullification of the Deed of of the Rules of Court, not by appeal. Assignment executed by PODC in favor SFRB moved for the reconsideration of of Aquino and of the Certificate of the CAs decision however, the CA Redemption executed by the Ex-Officio denied the petition. Sheriff and for damages. SFRB then filed a petition for review on Meanwhile, the LRA Administrator Certiorari for the reversal of the issued a Resolution recalling the decision and resolution of CA. Resolution dated December 12, 2002 SFRB avers that the December 20, 2002 and declared that the Certificate of Order of the RTC granting the writ of Redemption executed by the Ex-Officio possession in its favor was final; hence, Sheriff was superior to the Affidavit of the remedy of respondents herein, as Consolidation filed by petitioner. oppositors below, was to appeal to the On September 10, 2003, PODC filed a CA and not to file a special civil action Joint Motion to quash the writ of for certiorari. In fact, petitioner asserts, possession issued by the trial court and the writ of possession issued by the RTC for the issuance of a new TCT. They had already been implemented when averred that the LRA Administrator respondents filed their petition in the proceedings. A petition for certiorari CA on December 10, 2003. under Rule 65 of the Rules of Court is SFRB further insisted that the RTC, the proper remedy to question an acting as a Land Registration Court, had improvident interlocutory order. On limited jurisdiction; it had no the other hand, a final order is one jurisdiction to resolve the issues on the that disposes of the whole matter or validity of the deed of assignment and terminates the particular proceedings the legality of respondent Aquino’s or action leaving nothing to be done redemption of the property, as well as but to enforce by execution what has its ownership. Only the RTC in the been determined. It is one that finally exercise of its general jurisdiction in disposes of the pending action so that Civil Case No. 12765 (where petitioner nothing more can be done with it in assailed the deed of assignment and the the lower court. The remedy to Certificate of Redemption executed by question a final order is appeal under the Ex-Officio Sheriff) was vested with Rule 41 of the Rules of Court. jurisdiction to resolve these issues. In Even if the trial court erred in granting a resolving these issues, the CA thereby petition for a writ of possession, such preempted the RTC in Civil Case No. an error is merely an error of judgment 12765 and deprived it of due process. In correctible by ordinary appeal and not any event, according to petitioner, the by a petition for a writ of certiorari. pronouncement of the CA on the Such writ cannot be legally used for any validity of the Deed of Assignment and other purpose. Certificate of Redemption was merely an obiter dictum. Certiorari is a remedy narrow in its scope and inflexible in character. It is ISSUE: not a general utility tool in the legal workshop. Certiorari will issue only to Whether or not the Court of Appeals correct errors of jurisdiction and not to seriously erred when it sanctioned the correct errors of judgment. An error of PODC resort to Certiorari under Rule 65 of judgment is one which the court may the Revised Rules of Court, questioning a commit in the exercise of its final order and not an interlocutory order of jurisdiction, and which error is the RTC. reviewable only by an appeal. Error of jurisdiction is one where the act SC Ruling: complained of was issued by the court without or in excess of jurisdiction and The petition is meritorious. which error is correctible only by the extraordinary writ of certiorari. As long The CA erred in holding that the Order as the court acts within its jurisdiction, of the RTC granting the petition for a any alleged errors committed in the writ of possession was merely exercise of its discretion will amount to interlocutory. nothing more than mere errors of judgment, correctible by an appeal if Interlocutory orders are those that the aggrieved party raised factual and determine incidental matters and legal issues; or a petition for review which do not touch on the merits of under Rule 45 of the Rules of Court if the case or put an end to the only questions of law are involved. A certiorari writ may be issued if the court or quasi-judicial body issues an order with grave abuse of discretion amounting to excess or lack of jurisdiction. Grave abuse of discretion implies such capricious and whimsical exercise of judgment as is equivalent to lack of jurisdiction or, in other words, where the power is exercised in an arbitrary manner by reason of passion, prejudice, or personal hostility, and it must be so patent or gross as to amount to an evasion of a positive duty or to a virtual refusal to perform the duty enjoined or to act at all in contemplation of law. Mere abuse of discretion is not enough. Moreover, a party is entitled to a writ of certiorari only if there is no appeal nor any plain, speedy or adequate relief in the ordinary course of law.
The raison d’etre for the rule is that
when a court exercises its jurisdiction, an error committed while so engaged does not deprive it of the jurisdiction being exercised when the error was committed. If it did, every error committed by a court would deprive it of its jurisdiction and every erroneous judgment would be a void judgment. In such a situation, the administration of justice would not survive. Hence, where the issue or question involved affects the wisdom or legal soundness of the decision – not the jurisdiction of the court to render said decision – the same is beyond the province of a special civil action for certiorari.
IN LIGHT OF ALL THE FOREGOING, the
petition is GRANTED. The Decision of the Court of Appeals is SET ASIDE AND REVERSED.
DEVELOPMENT BANK OF THE PHILIPPINES , petitioner, vs. COURT OF APPEALS and the ESTATE OF THE LATE JUAN B. DANS, represented by CANDIDA G. DANS, and the DBP MORTGAGE REDEMPTION INSURANCE POOL, respondents..docx