Ortega v. Honorable Court Of Appeals

VITUG, J.:

In this petition, a purchaser in an execution sale (also called as an "auction vendee") assails the dismissal by the Court of Appeals of her appeal for lack of locus standi. The antecedent facts are sufficiently spelled out in the order, dated 08 January 1993, issued by the trial court thus - On November 25, 1983, plaintiff Felipe L. Abel filed a complaint against the defendants Spouses Carmen Bascon Tibajia, Jr. to recover the sum of P250,000.00 which defendant Carmen Bascon Tibajia had obtained from the plaintiff, plus moral and actual damages, attorney's fees and cost. Upon the filling of the complaint, a writ of preliminary attachment prayed for in the complaint was issued ex-parte and upon a bond of P250,000.00 duly approved by the Court, the properties of the defendants were attached and levied by the Deputy Sheriff.

For failure of the defendants to file their answer within the reglementary period, they were declared in default on April 2, 1984 and plaintiff was authorized to present his evidence ex-parte. Plaintiff Felipe Abel died on April 25, 1984 during the pendency of this case and before he could present evidence to substantiate his complaint. Upon proper motion made therefor, his heirs were substituted as plaintiffs on July 30, 1984.

On January 24, 1985, judgment was rendered in favor of the plaintiffs, Heirs of Felipe L. Abel, the dispositive portion of the decision reads as follows: WHEREFORE, on the basis of the facts established on record, the Court hereby renders judgment condemning the defendant spouses jointly and severally to pay the plaintiffs the principal sum of P250,000.00 with interest thereon at the legal rate computed from November 25, 1983 until fully paid, plus another amount of P50,000.00 as moral damages, and finally the amount of P10,000.00 as attorney's fees. Defendants shall also pay the cost of suit. SO ORDERED.

As the defendants could not be served with a copy of the decision on the ground that they had moved and their whereabouts were unknown and could not be ascertained despite diligent efforts, the Court upon motion by the plaintiffs, granted leave to effect service of the decision upon the defendants by publication in a newspaper of general circulation. The decision was accordingly published in the Metropolitan Newsweek, a newspaper of general circulation once a week for three (3) consecutive weeks, specifically on June 22, 29 and July 6, 1985, as evidenced by the Affidavit of Publication executed by the Editor/Publisher Orville R. Mauricio. It appears also during this time that the plaintiffs (Heirs of Felipe Abel) assigned all their causes of action, rights, interests and participation in the case at bar in favor of Eden Tan, per Deed of Assignment dated March 22, 1985.

On August 23, 1985, the assignee Eden Tan filed an ex-parte motion for execution of the decision, attaching to her motion the affidavit of publication of the decisin and the deed of assignment. The motion was granted on August 26, 1985 and the corresponding writ of execution was issued on September 13, 1985. On December 17, 1985, Deputy Sheriff Perseverando Pangan sold at public auction the attached real properties of the defendant spouses Tibajia to the highest bidder Lorenza Ortega in the amount of P448,989.50, which amount was credited to the full satisfaction of the judgment debt.1 On 06 January 1986, the Sheriff's Certificate of Sale in favor of Lorenza Ortega was registered with the Registry of Deeds of Pasay City.

Meanwhile, on 05 January 1986, private respondents (the defendants in the court a quo) brought up a "Motion for Reception of Evidence of Excess Charges in the Bill of Costs, etc." asseverating that the amount of P35,319.00 in the bill of costs prepared by the assignee, Eden Tan, had been padded.

The trial court went on to narrate subsequent events; hence - On January 22, 1986, Aurora Tibajia Vito, in behalf of the defendants, filed a motion to lift or set aside the writs of attachment and execution by offering to pay the money judgment. On March 14, 1986, Judge Segundino G. Chua ordered the plaintiffs' assignee, to file her opposition to the motion to lift attachment, and in the same Order directed Deputy Sheriff Perseverando Pangan to submit within ten (10) days from notice a detailed bill of costs, duly supported by official receipts so that the actual cost of sale together with all expenses would be known.2 In an order, dated 23 March 1986, the trial court directed the submission of the bill of expenses together with supporting official receipts. On 09 April 1986, Deputy Sheriff Pangan filed a Manifestation expressing his inability to comply with the order explaining that all supporting receipts were in the possession of Mrs. Eden Tan, the assignee of prevailing plaintiff, and that, despite efforts made by him, Mrs Tan was unable to produce and turn over the receipts.

He attached to his Manifestation the letter of Mrs. Eden Tan reading - TO: MR. PERSEVERANDO C. PANGAN Deputy Sheriff RTC, Branch CXXX Caloocan, Metro Manila Sir: In connection with the auction sale set on December 17, 1985 at the Pasay City Hall, Pasay City, 10:00 a.m., in the above-entitled case, our total bid price for the judgment debt mentioned on the Writ of Execution for the real properties is FOUR HUNDRED FORTY EIGHT THOUSAND NINE HUNDRED EIGHTY NINE & FIFTY CENTAVOS (P448,989.50) PESOS, broken down as follows: Principal Obligation P250,000.00 Moral Damages 50,000.00 Interest at 12% per annum from Nov. 25 1983 to Dec.

17 62,500.00 Publication of Sheriff Sale English 20,000.00 Spanish 30,000.00 Publication of the Decision 16,170.00 Attachment Bond Premium 4,569.50 Attorney's Fees 10,000.00 Registration and Filing Fees 750.00 Sheriff's Fees and Expenses 5,000.00