Marasigan v. Chevron Phils

MENDOZA, J.:

Challenged in this petition is the January 31, 2008 Decision1 of the Court of Appeals (CA) , in CA-G.R. CV No. 85223, which reversed and set aside the January 4, 2005 Decision2 of the Regional Trial Court, Branch 61, Gumaca, Quezon (RTC-Gumaca), in Civil Case No. 2448-G, declaring the subject foreclosure sale and the consequent certificate of sale null and void and ordering the petitioners, Spouses Mariano P. Marasigan and Josefina Leal (Spouses Marasigan) to pay respondent Chevron Phils., Inc. (Chevron [formerly Caltex Philippines, Inc.]) , moral damages, attorney's fees and costs of suit. The Facts Records disclose Spouses Marasigan were operators of a gasoline station in Montalban, Rizal, while Chevron is a corporation engaged in the business of refining, manufacturing, storing, distributing, and marketing of fuels, lubricants and other petroleum products. Spouses Marasigan and Chevron entered into a dealership and distributorship agreement wherein the former can purchase petroleum products from the latter on credit.

To complete said agreement, Spouses Marasigan executed deeds of real estate mortgage over their properties, as collateral, in favor of Chevron. Credit Lines Secured by Location TCT No. ₱ 1,886.000.00 Diliman, Q.C. 93559/290739 350, 000.00 Bo. Cambal, San Mateo, Rizal 75470 3,242,000.00 Quezon City 227086 1,975, 600.00 Bo.

Burgos, Rodriguez Rizal TD No. 02-4813/ TD No. 02-4860 1,600, 000.00