Mondragon v. Intermediate Appellate Court & The Spouses Manuel

GRIÑO-AQUINO, J.:

The spouses Manuel and Belen Bayona are relatives of Socorro Vda. de Mondragon and her late husband, Dominador Mondragon. On August 22, 1960, the Mondragons agreed to sell to the Bayonas a 1000-square-meter portion of their Lot 995 of the Tacloban Cadastre for the price of P3 per square meter or a total of P3,000.

On the same date, one-half of the agreed price (P1,500) was paid by the Bayonas. Further payments were made by them in cash and in kind, amounting to an additional sum of P297, leaving an unpaid balance of P1,203. This transaction is evidenced by a memorandum receipt signed by the parties (Exh.

A). On April 11, 1975, the Mondragons agreed to sell to the Bayonas an unsold portion of their Lot No. 901 of the Tacloban Cadastre, covered by Transfer Certificate of Title No. T-760, for P15,000, of which P7,900 was admittedly received by the Mondragons from the Bayonas (Exh. 1).

On April 11, 1978, the Bayonas filed a complaint for specific performance and damages with preliminary attachment in the Court of First Instance of Leyte, Branch III (now Regional Trial Court of Leyte, Branch VI), against Socorro Vda. de Mondragon and the Heirs of Dominador Mondragon, alleging that they had demanded several times from the defendants the execution of the deeds of sale of the portions of Lots 995 and 901 that had been sold to them, but the defendants unjustifiably failed to execute the deeds; instead, the defendants have been selling their lots to other persons and may dispose of the properties which are the subject of the aforementioned agreements, with intent to defraud the plaintiffs; and, that due to the contractual breach committed by the Mondragons, the plaintiffs incurred expenses of litigation and suffered moral and exemplary damages. In their answer, the defendants alleged that the Bayonas failed to pay the balance of the purchase price for Lot 995, decided to abandon the transaction and buy Lot 901 instead that it was agreed that the amount they paid for Lot 905 would be considered as partial payment for Lot 901; that they could not possibly execute a deed of sale of Lot 901 in favor of the plaintiffs because the balance of the purchase price has not been paid.

Defendants moved to dismiss the complaint for lack of a cause of action and prescription. The plaintiffs opposed the motion and the trial court denied it. Hoping that the case would be settled amicably between the parties, "who are after all related to each other and are practically neighbors,"

the court appointed the Acting Clerk of Court as Commissioner to try to settle the case. The plaintiffs submitted a Proposed Compromise Agreement which reads: COME NOW Plaintiffs, in answer to the letter of Atty. Cristina T. Montejos, duly appointed Commissioner in the above-entitled case, for the undersigned plaintiff to submit a possible Compromise Agreement, hereby submit the foregoing Memorandum: 1. The plaintiffs make it clear that despite the letter of demand they sent the herein defendants dated October 7, 1977, the herein defendants still sold to different buyers Lot 995 under Original Certificate of Title No. 760, containing an area of 391 sq.

meters, which plaintiffs discovered after verification from the Tacloban City Register of Deeds; 2. That lot 995 under OCT 760 was subdivided by defendants and sold to the following: Lot 995 A-284 sq. ms.

to Encarnacion Alvares on 9/8/77 Lot 995 B-661 sq. ms. to Alberto Gonzalo on 11/14/77 Lot 995 C-500 sq.

ms. (Clean title) Lot 995-D-500 sq. ms.

to Alberto Gonzalo on 9/2/77 Lot 995 E-370 sq. ms. to Vicente Quiton on 11/22/77 Lot 995 F-290 sq.

ms. to Mer Lagman on 3/2/78 Lot 995 G-296 sq. ms.

to Wilfredo Padilla on 2/15/78 Lot 995 H-290 sq. ms. to Dionisio Padilla on 2/15/78 3.

That as per the original agreement between the plaintiffs and defendant Socorro Mondragon for the purchase price of Lot 995, OCT 760, plaintiffs have already paid defendant Socorro Mondragon as admitted by her at the trial, the amount of P1,797.00 for Lot 995 C, which would have been paid up with an excess of P297 of an equivalent of 99 sq. meters at P3.00 per sq. meter as agreed between plaintiffs arid defendants.

4. That on Lot 1 (LRC) 8828, with an area of 378 sq. ms.

plaintiff would like to deduct the paid up 99 sq. ms. which is in excess from Lot 995 leaving the plaintiffs 279 sq.

ms. to account for, so that: 279 sq. ms.

x P39.66 price per sq. meter