G.R. No. 155856 - LEONORA CEBALLOS, VS. INTESTATE ESTATE OF THE LATE EMIGDIO MERCADO AND THE HEIRS OF EMIGDIO MERCADO.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, premises considered, the present appeal is hereby DISMISSED and the decision appealed from in Civil Case No. CEB-12690 is hereby AFFIRMED with MODIFICATION in that the award of moral damages is hereby REDUCED to P50,000.00. With double costs against the plaintiff-appellant. [4] The assailed Resolution denied petitioners Motion for Reconsideration. The Facts The facts of the case are summarized by the CA in this wise: [Petitioner] Leonora Emparado Ceballos is the registered owner of a certain parcel of land (Lot No. 3353, Pls-657-D) situated in Bato, Badian, Cebu, consisting of 53,301 square meters and covered by Transfer Certificate of Title No. T-948 of the Register of Deeds for the Province of Cebu. Sometime in October 1980, [petitioner] was introduced to Emigdio Mercado for the purpose of obtaining a loan as the latter was also known to be in the business of lending money. [Petitioner] was able to borrow the amount of P12,000.00 payable in two (2) months and to secure said loan, she executed in favor of Emigdio Mercado a Deed of Real Estate Mortgage over the subject property. The said mortgage deed was not registered by the mortgagee. [Petitioner] was not able to pay her mortgage indebtedness to Emigdio Mercado within the stipulated period. On February 13, 1982, a Deed of Absolute Sale was executed whereby the mortgaged property was sold to Emigdio Mercado for the price of P16,500.00. Said instrument contained the signatures of [petitioner] and her husband Narciso Ceballos and notarized by Atty. Elias V. Ortiz. It appears that sometime in 1990, [petitioner] offered to buy back the property from Emigdio Mercado for the price of P30,000.00 but the latters wife refused since the same was already transferred in their names under TCT No. TF-3252 issued on June 1, 1987. Emigdio Mercado died on January 12, 1991 and a petition for the issuance of letters of administration over his intestate estate was filed by her daughter Thelma M. Aranas before the RTC-Cebu City, Branch 11 (Spec. Proc. No. 3094-CEB). On August 18, 1990, [petitioner] instituted the present suit against the Intestate Estate of the Late Emigdio Mercado, Teresita Mercado as the Administrator, and/or the Heirs of the Late Emigdio Mercado. The Complaint alleged the following: [Petitioner] is the owner as her paraphernal property of a parcel of land located at Barangay Bato, Municipality of Badian, Province of Cebu and covered by TCT No. T-948, the same being her hereditary share from the property of her late father Rufo Emparado. Sometime in the early part of December 1980, to accommodate a friend who was hospitalized, [petitioner] went to the late Emigdio Mercado, who was known, besides his other businesses, to be also in the business of lending money, although at exorbitant rate of interest. A Real Estate Mortgage was drawn on December 31, 1980 for P12,000.00 although only P8,000.00 was actually delivered, the difference represents the interest for the use of money