G.R. No. 248004 - ROSA A. CASTAÑETO, VS. SPS. ERNESTO ADAME AND MERCEDES GANSANGAN,*.D E C I S I O N - Supreme Court E-Library

Ruling

accordingly dismissed the Complaint [5] for Recovery of Ownership, Possession, plus Damages in Civil Case No. 6591. The Antecedents Rosa A. Castañeto (petitioner) filed the above-cited Complaint before the RTC against Ernesto Adame and Mercedes Gansangan (respondents); Alfredo Tablada and Nena Castañeda Tablada (Spouses Tablada); and Solid Bank, [6] Urdaneta, Pangasinan (Solid Bank). Petitioner alleged that she is the owner of a property with an area of 130 square meters (sq. m.) covered by Transfer Certificate of Title (TCT) No. 206899 [7] (subject property) and particularly described as follows: ( Lot 632-B-1-B-3, Psd-01-029358, being a portion of Lot 632-B-1-B (LRC) Psd-211250, LRC Rec. No. Cad. 31 ), situated in the Barangay Bayaoas, Municipality of Urdaneta, Province of Pangasinan, Island of Luzon. x x x containing an area of ONE HUNDRED THIRTY SQUARE METERS, more or less x x x. [8] (Italics supplied.) Petitioner also alleged that through the Deed of Absolute Sale [9] dated September 16, 1995, she purchased the subject property from Spouses Tablada. According to petitioner, respondents fraudulently secured a certificate of title which included the subject property. Thereafter, respondents obtained a loan from Solid Bank and mortgaged the same property as security for the loan. Despite several demands, respondents refused to reconvey the subject property. Petitioner prayed that she be declared as the absolute owner of the subject property and respondents be ordered to reconvey the lot to her. [10] Respondents filed an Answer with Counterclaim [11] and asserted that they are buyers in good faith and were in actual possession of a 327-sq. m. lot covered by TCT No. 224655. [12] The property consists of two consolidated lots, Lot No. 632-B-1-A-3 with an area of 197 sq. m. covered by TCT No. 216115, and Lot No. 632-B-1-B-3 with an area of 130 sq. m. covered by TCT No. 215191. Respondents countered that petitioner's title was wrongfully issued because it encroached on their property. By way of counterclaim, respondents averred that petitioner is liable for the following amounts: moral damages of P200,000.00, actual damages of P50,000.00, exemplary damages of P20,000.00, and attorney's fees of P50,000.00. [13] Meanwhile, Spouses Tablada filed an Answer [14] admitting that they sold the subject property to petitioner. They averred that they had no knowledge of respondents' title over the petitioner's property. Solid Bank also filed an Answer with Counterclaim and Crossclaim [15] stating that it verified the ownership and possession of respondents' mortgaged property and noted that the latter's certificate of title did not contain annotations or encumbrances. Solid Bank added that in the event that it would be held liable to petitioner, it should be reimbursed by respondents. During the trial, Marcelo Layson, Jr. (Layson), Examiner I of the Register of Deeds of Lingayen, Pangasinan, testified for petitioner. He brought and presented the original copy