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PL Uy

The document is a court resolution regarding a Petition for Review on Certiorari filed by P.L. Uy Realty Corporation (PLU) seeking to reverse a decision by the Court of Appeals that dismissed its foreclosure complaint against ALS Management and Development Corporation and Antonio S. Litonjua. The case revolves around a Deed of Absolute Sale with Mortgage executed in 1980, where PLU alleges that ALS failed to make payments and that the property was not cleared of squatters as stipulated in their agreement. The resolution outlines the background of the case, including agreements made between the parties and the legal proceedings that followed.

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10 views4 pages

PL Uy

The document is a court resolution regarding a Petition for Review on Certiorari filed by P.L. Uy Realty Corporation (PLU) seeking to reverse a decision by the Court of Appeals that dismissed its foreclosure complaint against ALS Management and Development Corporation and Antonio S. Litonjua. The case revolves around a Deed of Absolute Sale with Mortgage executed in 1980, where PLU alleges that ALS failed to make payments and that the property was not cleared of squatters as stipulated in their agreement. The resolution outlines the background of the case, including agreements made between the parties and the legal proceedings that followed.

Uploaded by

Jonah Rose
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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G.R. No.

166462 October 24, 2012

P.L. UY REALTY CORPORATION, Petitioner,


vs.
ALS MANAGEMENT AND DEVELOPMENT CORPORATION and ANTO-
NIO S. LITONJUA, Respondents.

RESOLUTION

VELASCO, J.:

For consideration of the Court is a Petition for Review on Certiorari dated


February 2005 filed under Rule 45 by petitioner P. L. Uy Realty Corporation
(PLU). In the petition, PLU seeks the reversal of the Decision dated August
21, 2002 and Resolution dated December 22, 2004 issued by the Court of
1 2

Appeals (CA) in CA-G.R. CV No. 41377 entitled P. L. Uy Realty Corpora-


tion v. ASL Management and Development Corporation, et al. The CA De-
3

cision affirmed the Decision dated November 17, 1993 of the Regional Trial
4

Court of Pasig City, Branch 156, in Civil Case No. (unread text) which dis-
missed, on the ground of prematurity, the complaint filed by PLU for fore-
closure of mortgage against ALS Management and Development Corpora-
tion (ALS) and Antonio S. Litonjua.
5

The antecedent facts of the case are as follows:

On September 3, 1980, PLU, as vendor, and ALS, as vendee, executed a


Deed of Absolute Sale with Mortgage covering a parcel of land, registered
6

under Transfer Certificate of Title (TCT) No. 16721, in the name of peti-
tioner and located at F. Blumentritt Street, Mandaluyong, Metro Manila. The
purchase price for the land was set at PhP 8,166,705 payable, as follows:

a. Upon execution of the Contract - P 500,000.00

b. Within 100 days thereafter, a downpayment equivalent to 24%


(P1,960,000.00) of the principal amount less the advance of P500,000.00 -
1,460,009.20

c. The balance of P6,206,695.80 together with interest of 12% per annum


(estimated interest included) on the diminishing balance shall be payable
over a period of four (4) years on or before the month and day of the first
downpayment as follows:
2nd

Payment (24%) P1,960,009.20

Interest 744,803.49 2,704,812.69

3rd

Payment (24%) 1,960,009.20

Interest 509,602.39 2,469,611.59

4th

Payment (24%) 1,960,009.20

Interest 274,401.28 2,234,410.48

5th

Payment (24%) 326,668.20

Interest 19,600.09 346,268.29 7

Notably, the parties stipulated in paragraph 4.a of the Deed of Absolute


Sale with Mortgage on the eviction of informal settlers, as follows:

4. a. It is understood that the VENDOR shall have the property clear of any
existing occupants/squatters, the removal of which shall be for the sole ex-
penses & responsibilities of the VENDOR & that the VENDEE is authorized
to withhold payment of the 1st 24% installment unless the above-undertak-
ing is done and completed to the satisfaction of the VENDEE; 8

Section 6 of the deed, on the other hand, provided that "realty taxes during
the validity of this mortgage, shall be for the account of the VENDEE ALS." 9

Thereafter, the parties entered into an Agreement dated December 23,


1980, paragraph 3 of which reads:
10

3. That all accruals of interest as provided for in paragraph 2-c of the Deed
of Sale With Mortgage will be deferred and the subsequent payments of in-
stallments will correspondingly [sic] extended to the date the occupants/
squatters will vacate the subject property. 11

The succeeding paragraph 4 provided that in the event the informal settlers
do not leave the property, PLU would reimburse ALS the following
amounts:

4. That in the event the occupants/squatters will refuse to vacate the


premises despite the amicable payments being offered by the FIRST
PARTY (PLU) and paid by the SECOND PARTY (ALS) for the account of
the FIRST PARTY, the following amount [sic] will be refunded by the FIRST
PARTY to the SECOND PARTY:

a. All payments made, including the downpayment

b. All costs of temporary/permanent improvements introduced by the SEC-


OND PARTY in the subject property

c. All damages suffered by the SECOND PARTY due to the refusal of the
occupants/squatters to vacate the premises. 12

On January 26, 1981, TCT No. 16721 was canceled and a new one, TCT
No. 26048, issued in the name of ALS. 13

Subsequently, the parties executed a Partial Release of Mortgage dated


April 3, 1981 attesting to the payment by ALS of the first installment indi-
14

cated in the underlying deed. The relevant portion of the Partial Release of
Mortgage reads:

1. Upon the execution of this document, the SECOND PARTY shall pay the
net sum of THREE HUNDRED NINETY FIVE THOUSAND PESOS
(P395,000.00) after deducting expenses, covered by UCPB Check No.
078993 dated April 2, 1981 to complete the full payment of the first 24% in-
stallment.

2. The FIRST PARTY hereby executes a partial release of the mortgage to


the extent of TWENTY THOUSAND SQUARE METERS (20,000 sq.m.) in
consideration of the advance payment which would now amount to a total
of P1,960,009.20, of a portion of the said property indicated in the attached
subdivision plan herewith x x x.
15
ALS, however, failed to pay the 2nd payment despite demands.

Thus, on August 25, 1982, PLU filed a Complaint against ALS for Foreclo-
16

sure of Mortgage and Annulment of Documents. The case was initially raf-
fled to the Court of First Instance (CFI) of Rizal, but eventually re-raffled to
the Regional Trial Court, Branch 137 in Makati City (Makati RTC) thereat
docketed as Civil Case No. 47438 entitled PLU Realty Corporation v. ALS
(or ASL) Management and Development Corporation. In the complaint,
17

PLU alleged having had entered into an oral agreement with ALS whereby
the latter "agreed to take over the task of ejecting the squatters/occupants
from the property covered by TCT No. 26048 issued in its name," adding 18

that, through the efforts of ALS, the property was already 90% clear of in-
formal settlers. Notably, PLU’s prayer for relief states:
19

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