G.R. No. 157002 - JOSE T. ABAD, VS. SPOUSES CEASAR AND VIVIAN GUIMBA.DECISION - Supreme Court E-Library

Ruling

WHEREFORE , judgment is hereby rendered in favor of the [respondents] and against [Petitioner] Jose T. Abad as follows: 'a) Declaring as null and void and of no legal force and effect the 'Deed of Mortgage of Real Properties', Exhibit 'B' and '5', respectively, registered and annotated on Transfer Certificate of Title No. PT-80617 of the Register of Deeds for Pasig City as Entry No. PT-9633/PT-80617 inscribed on 10 June 1997; 'b) Ordering the Register of Deeds of Pasig City to cancel entry No. PT-9633/PT-80617 annotated on Transfer Certificate of Title No. PT-80617; 'c) Ordering the [Petitioner] Jose T. Abad to return to [respondents] Transfer Certificate of Title No. PT-80617 of the Registry of Dee[d]s of Pasig City; 'd) Ordering the [Petitioner] Jose T. Abad to pay [respondent] the amount of Php 20,000.00, as and for reasonable attorney's fees; and 'e) To pay the costs.' "For lack of sufficient factual and legal basis, the counterclaim of [Petitioner] Jose T. Abad against the [respondent] as well as his cross-claim against the defaulting defendant[s] Gemma Dela Cruz are, as they should be, DENIED." [4] The Facts Respondent-Spouses Ceasar and Vivian Guimba are the registered owners of a parcel of land covered by Transfer Certificate of Title (TCT) No. PT- 80617. On March 7, 1997, Vivian entrusted her copy of the Owner's Duplicate Certificate of Title to Gemma de la Cruz to serve as collateral for Vivian's application for a loan that was to be released in four days. Afterwards, Gemma received a phone call from Vivian, who informed her that she had changed her mind, was no longer interested in obtaining the loan, and therefore wanted her TCT back. Told that the Certificate had been deposited in the vault of the Bank of South East Asia, Vivian inquired at the bank, but was advised that the TCT was not there. [5] In November 1997, Vivian received a telegram from Petitioner Abad, a stranger, reminding her of the impending maturity of her mortgage. It was the first time respondents learned of any actual mortgage involving their property. [6] After seeking legal advice, [7] they filed an adverse claim on their own title [8] and for the first time met with petitioner to settle the matter. [9] While he insisted that they settle the mortgage, [10] they manifested their intention to sue. [11] Accordingly, respondents filed with the Regional Trial Court of Pasig City (assigned to Branch 167) on November 18, 1998, a Complaint [12] against petitioner and Gemma de la Cruz for annulment and cancellation of mortgage. They likewise filed with the Metropolitan Trial Court of Pasig City (assigned to Branch 71) a criminal case against her for falsification of public document. [13] In his Answer, petitioner countered that respondents had connived with De la Cruz to swindle him of his hard-earned savings. [14] He testified that he had met her and a couple posing as the Guimba spouses ("Guimbas") for the first time in March 1997. [15] The Guimbas allegedly asked him fo