G.R. No. 224138 - DEVELOPMENT BANK OF THE PHILIPPINES, VS. EVELINA TOGLE AND CATHERINE GERALDINE TOGLE.

Ruling

WHEREFORE , judgment is rendered as follows: 1.a The real estate mortgage foreclosure and the consolidation of ownership of the lots are declared void. 1.b The defendants shall return TCT Nos. 300166 and 300167 to the plaintiffs. 1.c The Davao City Register of Deeds shall cancel TCT No. 300166 and 300167 and issue new titles in the names of the plaintiffs. The defendant shall pay the plaintiffs the following sums: 2.a FIVE MILLION PESOS as moral damages. 2.b FIVE HUNDRED THOUSAND PESOS as attorney's fees. 2.c Costs of suit. 3. The defendant shall make an accounting of the income of the farm which they gathered from November, (sic) 1996 up to this time. SO ORDERED . [23] It essentially held that the foreclosure was premature as respondents were not yet in default. On the contrary, it was DBP which breached the loan agreement and acted in bad faith when it unilaterally altered its terms by requiring respondents to build twelve (12) poultry houses for 60,000 broilers instead of only four (4) poultry houses for 20,000 broilers. DBP's motion for reconsideration got denied by Order [24] dated July 22, 2008. Dispositions of the Court of Appeals Through its assailed Decision [25] dated September 28, 2015, the Court of Appeals affirmed with modification, viz .: WHEREFORE, the Decision dated October 20, 2006 of the Regional Trial Court, 11 th Judicial Region, Branch 15, Davao City in Civil Case No. 27497-99 for Breach of Contract, Annulment of Mortgage & Foreclosure Proceedings & Reconveyance with Prayer for Preliminary Injunction and/or Temporary Restraining Order is AFFIRMED with MODIFICATION, to wit: 1. Declaring the foreclosure made by the defendant-appellant DBP on the plaintiffs-appellees' properties null and void and the certificate of titles issued in favor of the defendant-appellant DBP canceled and ordered reconveyed to the plaintiffs-appellees; 2. Ordering the defendant-appellant to render a full, accurate[,] and complete accounting of all the fruits and proceeds of the subject properties from November, (sic) 1996 up to this time, and to turn over the proceeds to the plaintiffs-appellees not later than three (3) months from the finality of this Decision. 3. The plaintiffs-appellees are ordered to pay the defendant-appellant DBP the amount of Php3,000,000.00 including the stipulated interest payable not later than three (3) months from the finality of this Decision; and 4. The defendant-appellant is hereby ordered to pay the plaintiffs-appellees Togle (sic) the following: a. Php500,000.00 as moral damages; b. Php300,000.00 as exemplary damages; c. Php3,713,200.00 as actual or compensatory damages; [d]. Php500,000.00 as attorney's fees, all with interest at the rate of 6% per annum from the date of finality of this judgment. Costs against the defendant-appellant DBP. SO ORDERED.