Professional Documents
Culture Documents
, petitioners,
vs. MARY ANN GRACE FERNANDEZ, HEIRS OF PAZ TICZON
ELEOSIDA, represented by GREGORIO T. ELEOSIDA, HEIRS OF
DOMINGO B. TICZON, represented by MARY MEDIATRIX T.
FERNANDEZ, CRISTETA TICZON, EVANGELINE JILL R. TICZON,
ERLINDA T. BENITEZ, DOMINIC TICZON, JOSEFINA LUISA
PIAMONTE, JOHN DOES and JANE DOES, respondents.
DECISION
CALLEJO, SR., J.:
[2]
The heirs of Domingo B. Ticzon are the owners of a parcel of land located
in San Pablo City, covered by Transfer Certificate of Title (TCT) No. T-36766
of the Register of Deeds of San Pablo City. On the other hand, the heirs of
Paz Ticzon Eleosida, represented by Gregorio T. Eleosida, are the owners of a
parcel of land located in San Pablo City, covered by TCT No. 36754, also of
the Register of Deeds of San Pablo City.
[3]
[4]
[5]
the property, in the course of which they saw some people gathering
coconuts.
In the afternoon of November 27, 1995, the petitioners met with
respondent Fernandez and the two brokers at the petitioners office
inMandaluyong City. The petitioners and respondent Fernandez agreed that
the petitioners would buy the property consisting of 36,742 square meters, for
the price of P150 per square meter, or the total sum of P5,098,500. They also
agreed that the owners would shoulder the capital gains tax, transfer tax and
the expenses for the documentation of the sale. The petitioners and
respondent Fernandez also agreed to meet on December 8, 1995 to finalize
the sale. It was also agreed upon that on the said date, respondent
Fernandez would present a special power of attorney executed by the owners
of the property, authorizing her to sell the property for and in their behalf, and
to execute a deed of absolute sale thereon. The petitioners would also remit
the purchase price to the owners, through respondent Fernandez. However,
only Agapito Fisico attended the meeting. He informed the petitioners that
respondent Fernandez was encountering some problems with the tenants and
was trying to work out a settlement with them. After a few weeks of waiting,
the petitioners wrote respondent Fernandez on January 5, 1995, demanding
that their transaction be finalized by January 30, 1996.
[6]
[7]
[8]
On April 12, 1996, the petitioners filed the instant Complaint for specific
performance with damages against respondent Fernandez and the
registered owners of the property. In their complaint, the petitioners
alleged, inter alia, the following:
[13]
4.
On 27 November 1995, defendants offered to sell to plaintiffs two (2) parcels of
land covered by Transfer Certificates of Title Nos. 36766 and 36754 measuring a total
of 36,742 square meters in Barrio Concepcion, San Pablo City. After a brief
negotiation, defendants committed and specifically agreed to sell to plaintiffs 33,990
square meters of the two (2) aforementioned parcels of land at P150.00 per square
meter.
5.
(a)
The transfer tax and all the other fees and expenses for the titling of the
subject property in plaintiffs names would be for defendants account.
(b)
The plaintiffs would pay the entire purchase price of P5,098,500.00 for the
aforementioned 33,990 square meters of land in plaintiffs office on 8 December 1995.
6.
Defendants repeatedly assured plaintiffs that the two (2) subject parcels of land
were free from all liens and encumbrances and that no squatters or tenants occupied
them.
7.
Plaintiffs, true to their word, and relying in good faith on the commitment of
defendants, pursued the purchase of the subject parcels of lands. On 5 January 1996,
plaintiffs sent a letter of even date to defendants, setting the date of sale and
payment on 30 January 1996.
7.1
Defendants received the letter on 12 January 1996 but did not reply to it.
8.
On 1 February 1996, plaintiffs again sent a letter of even date to defendants
demanding execution of the Deed of Sale.
8.1
Defendants received the same on 6 February 1996. Again, there was no
reply. Defendants thus reneged on their commitment a second time.
9.
On 14 February 1996, defendant Fernandez sent a written communication of the
same date to plaintiffs enclosing therein a copy of her 16 January 1996 letter to
plaintiffs which plaintiffs never received before. Defendant Fernandez stated in her
16 January 1996 letter that despite the meeting of minds among the parties over the
33,990 square meters of land for P150.00 per square meter on 27 November 1995,
defendants suddenly had a change of heart and no longer wished to sell the
(c)
1.
2.
3.
4.
[15]
1.
On September 24, 1997, the trial court, upon motion of the petitioners,
declared the other respondents in default for failure to file their responsive
pleading within the reglementary period. At the pre-trial conference held on
March 2, 1998, the parties agreed that the following issues were to be
resolved by the trial court: (1) whether or not there was a perfected contract to
sell; (2) in the event that there was, indeed, a perfected contract to sell,
whether or not the respondents breached the said contract to sell; and (3) the
corollary issue of damages.
[18]
[19]
was later informed by Alimario that the petitioners were interested to buy the
properties. On November 27, 1995, along with Alimario and another person,
she met with the petitioners in the latters office and told them that she was at
the conference merely to hear their offer, that she could not bind the owners of
the properties as she had no written authority to sell the same. The
petitioners offered to buy the property at P150 per square meter. After the
meeting, respondent Fernandez requested Joy Marquez to secure a barangay
clearance stating that the property was free of any tenants. She was
surprised to learn that the clearance could not be secured. She contacted a
cousin of hers, also one of the owners of the property, and informed him that
there was a prospective buyer of the property but that there were tenants
thereon. Her cousin told her that he was not selling his share of the property
and that he was not agreeable to the price of P150 per square meter. She no
longer informed the other owners of the petitioners offer. Respondent
Fernandez then asked Alimario to apprise the petitioners of the foregoing
developments, through their agent, Agapito Fisico. She was surprised to
receive a letter from the petitioners dated January 5, 1996. Nonetheless, she
informed the petitioners that she had changed her mind in pursuing the
negotiations in a Letter dated January 18, 1996. When she received
petitioners February 1, 1996 Letter, she sent a Reply-Letter datedFebruary
14, 1996.
After trial on the merits, the trial court rendered judgment in favor of the
petitioners on June 23, 1999, the dispositive portion of which reads:
[20]
WHEREFORE, in view of the foregoing, the Court hereby renders judgment in favor
of plaintiffs ANTONIO K. LITONJUA and AURELIO K. LITONJUA and against
defendants MARY MEDIATRIX T. FERNANDEZ, HEIRS OF PAZ TICZON
ELEOSIDA, represented by GREGORIO T. ELEOSIDA, JOHN DOES and JANE
DOES; HEIRS OF DOMINGO B. TICZON, represented by MARY MEDIATRIX T.
FERNANDEZ, CRISTETA TICZON, EVANGELINE JILL R. TICZON, ERLINDA
T. BENITEZ, DOMINIC TICZON, JOSEFINA LUISA PIAMONTE, JOHN DOES
and JANE DOES, ordering defendants to:
1.
[21]
Hence, the instant petition for review on certiorari under Rule 45 of the
Revised Rules of Court.
The petitioners submit the following issues for the Courts resolution:
A. WHETHER OR NOT THERE WAS A PERFECTED CONTRACT
OF SALE BETWEEN THE PARTIES.
B. WHETHER OR NOT THE CONTRACT FALLS UNDER THE COVERAGE OF
THE STATUTE OF FRAUDS.
C. WHETHER OR NOT THE DEFENDANTS DECLARED IN DEFAULT ARE
BENEFITED BY THE ASSAILED DECISION OF THE COURT OF APPEALS.
[24]
[26]
On the first and second assignment of errors, the petitioners assert that
there was a perfected contract of sale between the petitioners as buyers and
the respondents-owners, through respondent Fernandez, as sellers. The
petitioners contend that the perfection of the said contract is evidenced by
the January 16, 1996 Letter of respondent Fernandez. The pertinent portions
of the said letter are as follows:
[27]
[M]y cousin and I have thereby changed our mind and that the sale will
no longer push through. I specifically instructed her to inform you thru your broker
that we will not be attending the meeting to be held sometime first week of December.
In view thereof, I regret to formally inform you now that we are no longer selling the
property until all problems are fully settled. We have not demanded and received
from you any earnest money, thereby, no obligations exist
[28]
(2) Those that do not comply with the Statute of Frauds as set forth in this
number. In the following cases an agreement hereafter made shall be unenforceable
by action, unless the same, or some note or memorandum thereof, be in writing, and
subscribed by the party charged, or by his agent; evidence, therefore, of the agreement
cannot be received without the writing, or secondary evidence of its contents:
(e)
An agreement for the leasing for a longer period than one year, or for the
sale of real property or of an interest therein.
[29]
[33]
[34]
[35]
In this case, we agree with the findings of the appellate court that there
was no perfected contract of sale between the respondents-owners, as
sellers, and the petitioners, as buyers.
There is no documentary evidence on record that the respondents-owners
specifically authorized respondent Fernandez to sell their properties to
another, including the petitioners. Article 1878 of the New Civil Code provides
that a special power of attorney is necessary to enter into any contract by
which the ownership of an immovable is transmitted or acquired either
gratuitously or for a valuable consideration, or to create or convey real rights
over immovable property, or for any other act of strict dominion. Any sale of
real property by one purporting to be the agent of the registered owner without
any authority therefor in writing from the said owner is null and void. The
declarations of the agent alone are generally insufficient to establish the fact
[37]
[38]
[39]
[40]
or extent of her authority. In this case, the only evidence adduced by the
petitioners to prove that respondent Fernandez was authorized by the
respondents-owners is the testimony of petitioner Antonio Litonjua that
respondent Fernandez openly represented herself to be the representative of
the respondents-owners, and that she promised to present to the petitioners
on December 8, 1996 a written authority to sell the properties. However, the
petitioners claim was belied by respondent Fernandez when she testified,
thus:
[41]
[42]
[43]
I told them that I was there representing myself as one of the owners of the
properties, and I was just there to listen to his proposal because that time, we were
just looking for the best offer and I did not have yet any written authorities from my
brother and sisters and relatives. I cannot agree on anything yet since it is just a
preliminary meeting, and so, I have to secure authorities and relate the matters to
my relatives, brother and sisters, sir.
Mr. Antonio Litonjua told me that they will be leaving for another country and he
requested me to come back on the first week of December and in the meantime, I
should make an assurance that there are no tenants in our properties, sir.[44]
[48]
[49]