full text sales judge arcamo i

8/19/2019 Full Text Sales Judge Arcamo I

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Case List for Sales

Atty. Arcamo

Table of Contents

1. Fule v. CA, G.R. No. 112212 ------------------------------------------------------------------- Page 22. Gaite v. Fonacier, G.R. No. L-11827--------------------------------------------------------- Page 133. Polytechnic niver!ity v. CA, G.R. No. 1"3#13-------------------------------------------- Page 2$". Carra!co!, %r. v. CA, G.R. No. 123&72------------------------------------------------------ Page 28#. '(a. )e A*e v. CA, G.R. No. 133&38---------------------------------------------------------Page #$&. Clarin v. Rulona, G.R. No. L-3$78&----------------------------------------------------------- Page &27. Province o+ Ceu v. eir! o+ Ru+ina orale!, G.R. No. 17$---------------------------- Page &78. yatt /levator! an( /!calator! Cor*. v. Cathe(ral eight! 0uil(ing Co*le

A!!ociation, G.R. No. 173881 ----------------------------------------------------------------- Page 73. )ole! v!. Angele!, G.R. No. 1"3#3--------------------------------------------------------- Page 831$. ontecillo v!. Reyne!, G.R. No.138$18---------------------------------------------------- Page "11. 4an iguel Pro*ertie! Phili**ine! 5nc. v!. uang, G.R. No.1372$--------------- Page 1$2

12. Navarro v!. 4ugar Pro(ucer! Coo*erative ar6eting A!!ociation, G.R. No. L-12888-------------------------------------------------------------------------------------------------------------Page 1$7

13. )ion v!. CA, G.R. No. 122#""-------------------------------------------------------------- Page 1131". Alcantara-)au! v!. )e Leon, G.R. No. 1"7#$------------------------------------------ Page 12$1#. /uatorial Realty )evelo*ent 5nc. v!. ay+air 9heater, G.R. No. 1$&$&3------ Page 12#1&. 4:e(i!h atch et al v!. CA, G.R. No. 12812$------------------------------------------- Page 1""17. 0ugatti v!. CA, G.R. No.138113------------------------------------------------------------- Page 1#"18. 4*ou!e! 4errano v!. Cagulat, G.R. No. 13173---------------------------------------- Page 1&1. Ang ;u v!. A!uncion, G.R. No. 1$12#---------------------------------------------------- Page 17"2$. Li v!. 4an an( Lo, G.R. No.1#723------------------------------------------------------- Page 18221.


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Re*ulic o+ the Phili**ine!SUPREME COURT

anila

95R) )5'545=N

G.R. No. 112212 March 2, 199

GREGOR!O "ULE, *etitioner,v!.COURT O" #PPE#LS, N!NE$ETC% CRU& an' (U#N )EL#RM!NO, re!*on(ent!.

ROMERO, J.:

9hi! *etition +or revie: on certiorari ue!tion! the a++irance y the Court o+ A**eal! o+ the(eci!ion 1 o+ the Regional 9rial Court o+ 4an Palo City, 0ranch 3$, (i!i!!ing the co*laintthat *raye( +or the nulli+ication o+ a contract o+ !ale o+ a 1$-hectare *ro*erty in 9anay, Rial incon!i(eration o+ the aount o+ P"$,$$$.$$ an( a 2.# carat eeral(-cut (iaon( >Civil Ca!e No.4P-2"##?. 9he lo:er court@! (eci!ion (i!*o!e( o+ the ca!e a! +ollo:!

B/R/F=R/, *rei!e! con!i(ere(, the Court herey ren(er! u(gent(i!i!!ing the co*laint +or lac6 o+ erit an( or(ering *lainti++ to *ay

1. )e+en(ant )ra. Ninevetch . Cru the !u o+ P3$$,$$$.$$ a! an( +or oral(aage! an( the !u o+ P1$$,$$$.$$ a! an( +or ee*lary (aage!D

2. )e+en(ant Atty. %uan 0elarino the !u o+ P2#$,$$$.$$ a! an( +or oral(aage! an( the !u o+ P1#$,$$$.$$ a! an( +or ee*lary (aage!D

3. )e+en(ant )ra. Cru an( Atty. 0elarino the !u o+ P2#,$$$.$$ each a! an(+or attorney@! +ee! an( litigation e*en!e!D an(

". 9he co!t! o+ !uit.

4= =R)/R/).

A! +oun( y the Court o+ A**eal! an( the lo:er court, the antece(ent +act! o+ thi! ca!e are a!+ollo:!

Petitioner Gregorio Fule, a an6er y *ro+e!!ion an( a e:eler at the !ae tie, acuire( a 1$-hectare *ro*erty in 9anay, Rial >hereina+ter E9anay *ro*ertyE?, covere( y 9ran!+er Certi+icateo+ 9itle No. 32$72# :hich u!e( to e un(er the nae o+ Fr. Antonio %acoe. 9he latter ha(ortgage( it earlier to the Rural 0an6 o+ Alaino! >the 0an6?, Laguna, 5nc. to !ecure a loan inthe aount o+ P1$,$$$.$$, ut the ortgage :a! later +oreclo!e( an( the *ro*erty o++ere( +or*ulic auction u*on hi! (e+ault.

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5n %uly 18", *etitioner, a! cor*orate !ecretary o+ the an6, a!6e( Reelia )icho!o an( =livaen(oa to loo6 +or a uyer :ho ight e intere!te( in the 9anay *ro*erty. 9he t:o +oun( onein the *er!on o+ herein *rivate re!*on(ent )r. Ninevetch Cru. 5t !o ha**ene( that at the tie,*etitioner ha( !ho:n intere!t in uying a *air o+ eeral(-cut (iaon( earring! o:ne( y )r.Cru :hich he ha( !een in %anuary o+ the !ae year :hen hi! other eaine( an( a**rai!e(the a! genuine. )r. Cru, ho:ever, (ecline( *etitioner@! o++er to uy the e:elry +or

P1$$,$$$.$$. Petitioner then a(e another i( to uy the +or 4&,$$$.$$ at the echangerate o+ 1.$$ to P2#.$$. At thi! *oint, *etitioner in!*ecte( !ai( e:elry at the loy o+ thePru(ential 0an6 ranch in 4an Palo City an( then a(e a !6etch thereo+. aving !6etche( the

e:elry +or t:enty to thirty inute!, *etitioner gave the ac6 to )r. Cru :ho again re+u!e( to!ell the !ince the echange rate o+ the *e!o at the tie a**reciate( to P1.$$ to a (ollar.

4u!euently, ho:ever, negotiation! +or the arter o+ the e:elry an( the 9anay *ro*ertyen!ue(. )r. Cru reue!te( herein *rivate re!*on(ent Atty. %uan 0elarino to chec6 the*ro*erty :ho, in turn, +oun( out that no !ale or arter :a! +ea!ile ecau!e the one-year *erio(+or re(e*tion o+ the !ai( *ro*erty ha( not yet e*ire( at the tie.

5n an e++ort to cut through any legal i*e(ient, *etitioner eecute( on =ctoer 1, 18", a

(ee( o+ re(e*tion on ehal+ o+ Fr. %acoe *ur*orte(ly in the aount o+ P1#,87.78, an( oneven (ate, Fr. %acoe !ol( the *ro*erty to *etitioner +or P7#,$$$.$$. 9he ha!te :ith :hich thet:o (ee(! :ere eecute( i! !ho:n y the +act that the (ee( o+ !ale :a! notarie( ahea( o+ the(ee( o+ re(e*tion. A! )r. Cru ha( alrea(y agree( to the *ro*o!e( arter, *etitioner :ent toPru(ential 0an6 once again to ta6e a loo6 at the e:elry.

5n the a+ternoon o+ =ctoer 23, 18", *etitioner et Atty. 0elarino at the latter@! re!i(ence to*re*are the (ocuent! o+ !ale.2 )r. Cru her!el+ :a! not aroun( ut Atty. 0elarino :a! a:arethat !he an( *etitioner ha( *reviou!ly agree( to echange a *air o+ eeral(-cut (iaon(earring! +or the 9anay *ro*erty. Atty. 0elarino accor(ingly cau!e( the *re*aration o+ a (ee( o+a!olute !ale :hile *etitioner an( )r. Cru atten(e( to the !a+e6ee*ing o+ the e:elry.

9he +ollo:ing (ay, *etitioner, together :ith )icho!o an( en(oa, arrive( at the re!i(ence o+ Atty. 0elarino to +inally eecute a (ee( o+ a!olute !ale. Petitioner !igne( the (ee( an( gave Atty. 0elarino the aount o+ P13,7$$.$$ +or nece!!ary e*en!e! in the tran!+er o+ title overthe 9anay *ro*erty. Petitioner al!o i!!ue( a certi+ication to the e++ect that the actualcon!i(eration o+ the !ale :a! P2$$,$$$.$$ an( not P8$,$$$.$$ a! in(icate( in the (ee( o+a!olute !ale. 9he (i!*arity et:een the actual contract *rice an( the one in(icate( on the (ee(o+ a!olute !ale :a! *ur*orte(ly aie( at iniiing the aount o+ the ca*ital gain! ta that*etitioner :oul( have to !houl(er. 4ince the e:elry :a! a**rai!e( only at P1&$,$$$.$$, the*artie! agree( that the alance o+ P"$,$$$.$$ :oul( u!t e *ai( later in ca!h.

A! *re-arrange(, *etitioner le+t Atty. 0elarino@! re!i(ence :ith )icho!o an( en(oa an(hea(e( +or the an6, arriving there at *a!t #$$ *.. )r. Cru al!o arrive( !hortly therea+ter, utthe ca!hier :ho 6e*t the other 6ey to the (e*o!it o ha( alrea(y le+t the an6. )r. Cru an()icho!o, there+ore, loo6e( +or !ai( ca!hier an( +oun( hi having a haircut. A! !oon a! hi!haircut :a! +ini!he(, the ca!hier returne( to the an6 an( arrive( there at #"8 *.., ahea( o+)r. Cru an( )icho!o :ho arrive( at ### *.. )r. Cru an( the ca!hier then o*ene( the !a+ety(e*o!it o, the +orer retrieving a tran!*arent *la!tic or cello*hane ag :ith the e:elry in!i(ean( han(ing over the !ae to *etitioner. 9he latter too6 the e:elry +ro the ag, :ent near theelectric light at the an6@! loy, hel( the e:elry again!t the light an( eaine( it +or ten to



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+i+teen inute!. A+ter a :hile, )r. Cru a!6e(, EOkay na ba iyan?E Petitioner e*re!!e( hi!!ati!+action y no((ing hi! hea(.

For !ervice! ren(ere(, *etitioner *ai( the agent!, )icho!o an( en(oa, the aount o+43$$.$$ an( !oe *iece! o+ e:elry. e (i( not, ho:ever, give the hal+ o+ the *air o+earring! in ue!tion :hich he ha( earlier *roi!e(.

Later, at aout 8$$ o@cloc6 in the evening o+ the !ae (ay, *etitioner arrive( at the re!i(ence o+ Atty. 0elarino co*laining that the e:elry given to hi :a! +a6e. e then u!e( a te!ter to*rove the allege( +a6ery. ean:hile, at 83$ *.., )icho!o an( en(oa :ent to the re!i(enceo+ )r. Cru to orro: her car !o that, :ith Atty. 0elarino, they coul( regi!ter the 9anay*ro*erty. A+ter )r. Cru ha( agree( to len( her car, )icho!o calle( u* Atty. 0elarino. 9he latter,ho:ever, in!tructe( )icho!o to *rocee( ie(iately to hi! re!i(ence ecau!e *etitioner :a!there. 0elieving that *etitioner ha( +inally agree( to give the hal+ o+ the *air o+ earring!,)icho!o :ent *o!tha!te to the re!i(ence o+ Atty. 0elarino only to +in( *etitioner alrea(y(eon!trating :ith a te!ter that the earring! :ere +a6e. Petitioner then accu!e( )icho!o an(en(oa o+ (eceiving hi :hich they, ho:ever, (enie(. 9hey countere( that *etitioner coul( nothave een +oole( ecau!e he ha( va!t e*erience regar(ing e:elry. Petitioner nonethele!!

too6 ac6 the 43$$.$$ an( e:elry he ha( given the.

9herea+ter, the grou* (eci(e( to go to the hou!e o+ a certain acario )iayuga, a e:eler, tohave the earring! te!te(. )iayuga, a+ter ta6ing one loo6 at the earring!, ie(iately (eclare(the counter+eit. At aroun( 3$ *.., *etitioner :ent to one Atty. Reynal(o Alcantara re!i(ingat La6e!i(e 4u(ivi!ion in 4an Palo City, co*laining aout the +a6e e:elry. *on einga(vi!e( y the latter, *etitioner re*orte( the atter to the *olice !tation :here )icho!o an(en(oa li6e:i!e eecute( !:orn !tateent!.

=n =ctoer 2&, 18", *etitioner +ile( a co*laint e+ore the Regional 9rial Court o+ 4an PaloCity again!t *rivate re!*on(ent! *raying, aong other thing!, that the contract o+ !ale over the9anay *ro*erty e (eclare( null an( voi( on the groun( o+ +rau( an( (eceit.

=n =ctoer 3$, 18", the lo:er court i!!ue( a te*orary re!training or(er (irecting the Regi!ter o+ )ee(! o+ Rial to re+rain +ro acting on the *ertinent (ocuent! involve( in the tran!action.=n Noveer 2$, 18", ho:ever, the !ae court li+te( it! *reviou! or(er an( (enie( the *rayer+or a :rit o+ *reliinary inunction.

A+ter trial, the lo:er court ren(ere( it! (eci!ion on arch 7, 18. Con+ronting the i!!ue o+:hether or not the genuine *air o+ earring! u!e( a! con!i(eration +or the !ale :a! (elivere( y)r. Cru to *etitioner, the lo:er court !ai(

9he Court +in(! that the an!:er i! (e+initely in the a++irative. 5n(ee(, )ra. Cru

(elivere( >the? !uect e:elrie! >sic ? into the han(! o+ *lainti++ :ho even rai!e(the !ae nearer to the light! o+ the loy o+ the an6 near the (oor. Bhen a!6e(y )ra. Cru i+ everything :a! in or(er, *lainti++ even no((e( hi! !ati!+action>earing o+ Fe. 2", 188?. At that in!tance, *lainti++ (i( not *rote!t, co*lain oreg +or a((itional tie to eaine +urther the e:elrie! >sic ?. 0eing a *ro+e!!ionalan6er an( engage( in the e:elry u!ine!! *lainti++ i! conver!ant an(co*etent to (etect a +a6e (iaon( +ro the real thing. Plainti++ :a! accor(e(the rea!onale tie an( o**ortunity to a!certain an( in!*ect the e:elrie! >sic ? inaccor(ance :ith Article 1#8" o+ the Civil Co(e. Plainti++ too6 (elivery o+ the


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!uect e:elrie! >sic ? e+ore &$$ *.. o+ =ctoer 2", 18". Bhen he :ent at8$$ *.. that !ae (ay to the re!i(ence o+ Atty. 0elarino alrea(y :ith a te!terco*laining aout !oe +a6e e:elrie! >sic ?, there :a! alrea(y un(ue (elayecau!e o+ the la*!e o+ a con!i(erale length o+ tie !ince he got hol( o+ !uect

e:elrie! >sic ?. 9he la*!e o+ t:o >2? hour! ore or le!! e+ore *lainti++ co*laine(i! con!i(ere( y the Court a! unrea!onale (elay.*

9he lo:er court +urther rule( that all the eleent! o+ a vali( contract un(er Article 1"#8 o+ theCivil Co(e :ere *re!ent, naely >a? con!ent or eeting o+ the in(!D >? (eterinate !uectatter, an( >c? *rice certain in oney or it! euivalent. 9he !ae eleent!, accor(ing to thelo:er court, :ere *re!ent (e!*ite the +act that the agreeent et:een *etitioner an( )r. Cru:a! *rinci*ally a arter contract. 9he lo:er court e*laine( thu!

. . . . Plainti++@! o:ner!hi* over the 9anay *ro*erty *a!!e( unto )ra. Cru u*onthe con!tructive (elivery thereo+ y virtue o+ the )ee( o+ A!olute 4ale >/h. )?.=n the other han(, the o:ner!hi* o+ )ra. Cru over the !uect e:elrie! >sic ?tran!+erre( to the *lainti++ u*on her actual *er!onal (elivery to hi at the loy o+the Pru(ential 0an6. 5t i! e*re!!ly *rovi(e( y la: that the thing !ol( !hall e

un(er!too( a! (elivere(, :hen it i! *lace( in the control an( *o!!e!!ion o+ theven(ee >Art. 1"7, Civil Co(eD uenle H 4tra++ v!. Bat!on H Co. 13 Phil. 2&?.9he o:ner!hi* an(Ior title over the e:elrie! >sic ? :a! tran!itte( ie(iatelye+ore &$$ *.. o+ =ctoer 2", 18". Plainti++ !igni+ie( hi! a**roval y no((inghi! hea(. )elivery or tra(ition, i! one o+ the o(e! o+ acuiring o:ner!hi* >Art.712, Civil Co(e?.

4iilarly, :hen /hiit ) :a! eecute(, it :a! euivalent to the (elivery o+ the9anay *ro*erty in +avor o+ )ra. Cru. 9he eecution o+ the *ulic in!truent >/h.)? o*erate! a! a +oral or !yolic (elivery o+ the 9anay *ro*erty an(authorie! the uyer, )ra. Cru to u!e the (ocuent a! *roo+ o+ o:ner!hi*>Floren(o v. Fo, 2$ Phil. 3?. ore !o, !ince /hiit ) (oe! not contain any

*rovi!o or !ti*ulation to the e++ect that title to the *ro*erty i! re!erve( :ith theven(or until +ull *ayent o+ the *urcha!e *rice, nor i! there a !ti*ulation givingthe ven(or the right to unilaterally re!cin( the contract the oent the ven(ee+ail! to *ay :ithin a +ie( *erio( >9agua v. '(a. )e Leon, 132 4CRA 722D Luon0ro6erage Co. 5nc. v!. aritie 0uil(ing Co. 5nc. 8& 4CRA 3$#D Froilan v. Pan=riental 4hi**ing Co. et al. 12 4CRA 27&?. +

A!i(e +ro conclu(ing that the contract o+ arter or !ale ha( in +act een con!uate( :hen*etitioner an( )r. Cru *arte( :ay! at the an6, the trial court li6e:i!e (:elt on the une*laine((elay :ith :hich *etitioner co*laine( aout the allege( +a6ery. 9hu!

. . . . 'erily, *lainti++ i! alrea(y e!to**e( to coe ac6 a+ter the la*!e o+con!i(erale length o+ tie to clai that :hat he got :a! +a6e. e i! a 0u!ine!!anageent gra(uate o+ La 4alle niver!ity, Cla!! 178-7, a *ro+e!!ionalan6er a! :ell a! a e:eler in hi! o:n right. 9:o hour! i! ore than enough tieto a6e a !:itch o+ a Ru!!ian (iaon( :ith the real (iaon(. 5t u!t ereeere( that in %uly 18" *lainti++ a(e a !6etch o+ the !uect e:elrie!>sic ? at the Pru(ential 0an6. Plainti++ ha( a te!ter at 8$$ *.. at the re!i(ence o+

Atty. 0elarino. Bhy then (i( he not ring it out :hen he :a! eaining the!uect e:elrie! >sic ? at aout &$$ *.. in the an6@! loyJ =viou!ly, he ha(

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no nee( +or it a+ter eing !ati!+ie( o+ the genuinene!! o+ the !uect e:elrie!>sic ?. Bhen )ra. Cru an( *lainti++ le+t the an6 oth o+ the ha( +ully *er+ore(their re!*ective *re!tation!. =nce a contract i! !ho:n to have eencon!uate( or +ully *er+ore( y the *artie! thereto, it! ei!tence an( in(inge++ect can no longer e (i!*ute(. 5t i! irrelevant an( iaterial to (i!*ute the (ueeecution o+ a contract i+ oth o+ the have in +act *er+ore( their oligation!

thereun(er an( their re!*ective !ignature! an( tho!e o+ their :itne!!e! a**earu*on the +ace o+ the (ocuent >Bel(on Con!truction v. CA G.R. No. L-3#721,=ct. 12, 187?.

Finally, in a:ar(ing (aage! to the (e+en(ant!, the lo:er court rear6e(

9he Court +in(! that *lainti++ acte( in :anton a( +aith. /hiit 2-0elarino*ur*ort! to !ho: that the 9anay *ro*erty i! :orth P2#,$$$.$$. o:ever, al!o onthat !ae (ay it :a! eecute(, the *ro*erty@! :orth :a! agni+ie( at P7#,$$$.$$>/h. 3-0elarino?. o: coul( in le!! than a (ay >=ct. 1, 18"? the value :oul(>sic ? tri*le un(er noral circu!tance!J Plainti++, :ith the a!!i!tance o+ hi!agent!, :a! ale to echange the 9anay *ro*erty :hich hi! an6 value( only at

P2#,$$$.$$ in echange +or a genuine *air o+ eeral( cut (iaon( :orthP2$$,$$$.$$ elonging to )ra. Cru. e al!o retrieve( the 43$$.$$ an(

e:elrie! >sic ? +ro hi! agent!. 0ut he :a! not !ati!+ie( in eing ale to get!uect e:elrie! +or a !ong. e ha( to +ile a aliciou! an( un+oun(e( ca!eagain!t )ra. Cru an( Atty. 0elarino :ho are :ell 6no:n, re!*ecte( an( hel( inhigh e!tee in 4an Palo City :here everyo(y *ractically 6no:! everyo(y.Plainti++ cae to Court :ith unclean han(! (ragging the (e+en(ant! an( !oilingtheir clean an( goo( nae in the *roce!!. 0oth o+ the are near the t:ilight o+their live! a+ter aintaining an( nurturing their goo( re*utation in the counityonly to e !tunne( :ith a court ca!e. 4ince the +iling o+ thi! ca!e on =ctoer 2&,18" u* to the *re!ent they :ere living un(er a *all o+ (out. 4urely, thi! a++ecte(not only their earning ca*acity in their *ractice o+ their re!*ective *ro+e!!ion!, ut

al!o they !u++ere( e!irche( re*utation!. )ra. Cru run! her o:n ho!*ital an((e+en(ant 0elarino i! a :ell re!*ecte( legal *ractitioner. 9he length o+ tie thi!ca!e (ragge( on (uring :hich *erio( their re*utation :ere >sic ? tarni!he( an(their nae! aligne( y the *en(ency o+ the ca!e, the Court i! o+ the elie+ that!oe o+ the (aage! they *raye( +or in their an!:er! to the co*laint arerea!onaly *ro*ortionate to the !u++ering! they un(er:ent >Art. 221, Ne: CivilCo(e?. oreover, ecau!e o+ the +al!ity, alice an( a!ele!! nature o+ theco*laint (e+en(ant! :ere co*elle( to litigate. ence, the a:ar( o+ attorney@!+ee! i! :arrante( un(er the circu!tance! >Art. 22$8, Ne: Civil Co(e?.-

Fro the trial court@! a(ver!e (eci!ion, *etitioner elevate( the atter to the Court o+ A**eal!.=n =ctoer 2$, 12, the Court o+ A**eal!, ho:ever, ren(ere( a (eci!ion a++iring in toto the

lo:er court@! (eci!ion. i! otion +or recon!i(eration having een (enie( on =ctoer 1, 13,*etitioner no: +ile! the in!tant *etition alleging that

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555. 9/ 9R5AL, C=R9 /RR/) 5N N=9 )/CLAR5NG 9/ )//) =F 4AL/ =F9/ 9ANA; PR=P/R9; >/K. E)E? A4 NLL AN) '=5) =R 5N N=9

ANNLL5NG 9/ 4A/, AN) 5N FA5L5NG 9= GRAN9 R/A4=NA0L/)AAG/4 5N FA'=R =F 9/ PLA5N95FF.

A! to the +ir!t allegation, the Court o!erve! that *etitioner i! e!!entially rai!ing a +actual i!!uea! it invite! u! to eaine an( :eigh ane: the +act! regar(ing the genuinene!! o+ the earring!artere( in echange +or the 9anay *ro*erty. 9hi!, o+ cour!e, :e cannot (o :ithout un(ulytran!cen(ing the liit! o+ our revie: *o:er in *etition! o+ thi! nature :hich are con+ine( erelyto *ure ue!tion! o+ la:. Be accor(, a! a general rule, conclu!ivene!! to a lo:er court@!+in(ing! o+ +act unle!! it i! !ho:n, inter alia, that >1? the conclu!ion i! a +in(ing groun(e( on!*eculation!, !uri!e! or conecture!D >2? the in+erence i! ani+e!tly i!ta6en, a!ur( an(i*o!!ileD >3? :hen there i! a grave au!e o+ (i!cretionD >"? :hen the u(gent i! a!e( on ai!a**rehen!ion o+ +act!D >#? :hen the +in(ing! o+ +act are con+lictingD an( >&? :hen the Court o+

A**eal!, in a6ing it! +in(ing!, :ent eyon( the i!!ue! o+ the ca!e an( the !ae i! contrary tothe a(i!!ion o+ oth *artie!. 9 Be +in( nothing, ho:ever, that :arrant! the a**lication o+ any o+ the!e ece*tion!.

Con!euently, thi! Court u*hol(! the a**ellate court@! +in(ing! o+ +act e!*ecially ecau!e the!econcur :ith tho!e o+ the trial court :hich, u*on a thorough !crutiny o+ the recor(!, are +irlygroun(e( on evi(ence *re!ente( at the trial. 1/ 9o reiterate, thi! Court@! uri!(iction i! onlyliite( to revie:ing error! o+ la: in the a!ence o+ any !ho:ing that the +in(ing! co*laine( o+are totally (evoi( o+ !u**ort in the recor( or that they are glaringly erroneou! a! to con!titute!eriou! au!e o+ (i!cretion. 11

Nonethele!!, thi! Court ha! to clo!ely (elve into *etitioner@! allegation that the lo:er court@!(eci!ion o+ arch 7, 18 i! a Erea(y-a(eE one ecau!e it :a! han(e( (o:n a (ay a+ter thela!t (ate o+ the trial o+ the ca!e. 12Petitioner, in thi! regar(, +in(! it incre(ile that %u(ge %.

Au!erto %araillo :a! ale to :rite a 12-*age !ingle-!*ace( (eci!ion, ty*e it an( relea!e it onarch 7, 18, le!! than a (ay a+ter the la!t hearing on arch &, 18. e !tre!!e( that %u(ge%araillo re*lace( %u(ge 4alva(or (e Guan an( hear( only hi! reuttal te!tiony.

9hi! allegation i! oviou!ly no ore than a (e!*erate e++ort on the *art o+ *etitioner to (i!*aragethe lo:er court@! +in(ing! o+ +act in or(er to convince thi! Court to revie: the !ae. 5t i!note:orthy that Atty. 0elarino clari+ie( that %u(ge %araillo ha( i!!ue( the +ir!t or(er in theca!e a! early a! arch , 187 or t:o year! e+ore the ren(ition o+ the (eci!ion. 5n +act, Atty.0elarino terinate( *re!entation o+ evi(ence on =ctoer 13, 187, :hile )r. Cru +ini!he(her! on Feruary ", 18, or ore than a onth *rior to the ren(ition o+ the u(gent. 9hearch &, 18 hearing :a! con(ucte( !olely +or the *re!entation o+ *etitioner@! reuttalte!tiony. 1* 5n other :or(!, %u(ge %araillo ha( a*le tie to !tu(y the ca!e an( :rite the(eci!ion ecau!e the reuttal evi(ence :oul( only !erve to con+ir or veri+y the +act! alrea(y*re!ente( y the *artie!.

9he Court +in(! nothing anoalou! in the !ai( !ituation. No *roo+ ha! een a((uce( that %u(ge%araillo :a! otivate( y a aliciou! or !ini!ter intent in (i!*o!ing o+ the ca!e :ith (i!*atch.Neither i! there *roo+ that !oeone el!e :rote the (eci!ion +or hi. 9he ie(iate ren(ition o+

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the (eci!ion :a! no ore than %u(ge %araillo@! co*liance :ith hi! (uty a! a u(ge toE(i!*o!e o+ the court@! u!ine!! *ro*tly an( (eci(e ca!e! :ithin the reuire( *erio(!.E 1+ 9het:o-year *erio( :ithin :hich %u(ge %araillo han(le( the ca!e *rovi(e( hi :ith all the tie to!tu(y it an( even :rite (o:n it! +act! a! !oon a! the!e :ere *re!ente( to court. 5n +act, thi!Court (oe! not !ee anything :rong in the *ractice o+ :riting a (eci!ion (ay! e+ore the!che(ule( *roulgation o+ u(gent an( leaving the (i!*o!itive *ortion +or ty*ing at a tie

clo!e to the (ate o+ *roulgation, *rovi(e( that no alice or any :rong+ul con(uct atten(! it!a(o*tion. 1 9he *ractice !erve! the (ual *ur*o!e! o+ !a+eguar(ing the con+i(entiality o+ (ra+t(eci!ion! an( ren(ering (eci!ion! :ith *ro*tne!!. Neither can %u(ge %araillo e a(ea(ini!tratively an!:erale +or the ie(iate ren(ition o+ the (eci!ion. 9he act! o+ a u(ge:hich *ertain to hi! u(icial +unction! are not !uect to (i!ci*linary *o:er unle!! they arecoitte( :ith +rau(, (i!hone!ty, corru*tion or a( +aith. 1- ence, in the a!ence o+ !u++icient*roo+ to the contrary, %u(ge %araillo i! *re!ue( to have *er+ore( hi! o in accor(ance :ithla: an( !houl( in!tea( e coen(e( +or hi! clo!e attention to (uty.

aving (i!*o!e( o+ *etitioner@! +ir!t contention, :e no: coe to the core i!!ue o+ thi! *etition:hich i! :hether the Court o+ A**eal! erre( in u*hol(ing the vali(ity o+ the contract o+ arter or!ale un(er the circu!tance! o+ thi! ca!e.

9he Civil Co(e *rovi(e! that contract! are *er+ecte( y ere con!ent. Fro thi! oent, the*artie! are oun( not only to the +ul+illent o+ :hat ha! een e*re!!ly !ti*ulate( ut al!o to allthe con!euence! :hich, accor(ing to their nature, ay e in 6ee*ing :ith goo( +aith, u!agean( la:. 1 A contract o+ !ale i! *er+ecte( at the oent there i! a eeting o+ the in(! u*onthe thing :hich i! the oect o+ the contract an( u*on the *rice. 1 0eing con!en!ual, a contracto+ !ale ha! the +orce o+ la: et:een the contracting *artie! an( they are e*ecte( to ai(e ingoo( +aith y their re!*ective contractual coitent!. Article 13#8 o+ the Civil Co(e :hichreuire! the eo(ient o+ certain contract! in a *ulic in!truent, i! only +orconvenience, 19 an( regi!tration o+ the in!truent only a(ver!ely a++ect! thir( *artie!. 2/ Foralreuireent! are, there+ore, +or the ene+it o+ thir( *artie!. Non-co*liance there:ith (oe! nota(ver!ely a++ect the vali(ity o+ the contract nor the contractual right! an( oligation! o+ the

*artie! thereun(er.

5t i! evi(ent +ro the +act! o+ the ca!e that there :a! a eeting o+ the in(! et:een *etitioneran( )r. Cru. A! !uch, they are oun( y the contract unle!! there are rea!on! orcircu!tance! that :arrant it! nulli+ication. ence, the *role that !houl( e a((re!!e( in thi!ca!e i! :hether or not un(er the +act! (uly e!tali!he( herein, the contract can e voi(e( inaccor(ance :ith la: !o a! to co*el the *artie! to re!tore to each other the thing! that haveeen the !uect o+ the contract :ith their +ruit!, an( the *rice :ith intere!t.21

Contract! that are voi(ale or annullale, even though there ay have een no (aage to thecontracting *artie! are >1? tho!e :here one o+ the *artie! i! inca*ale o+ giving con!ent to acontractD an( >2? tho!e :here the con!ent i! vitiate( y i!ta6e, violence, intii(ation, un(uein+luence or +rau(. 22 Accor(ingly, *etitioner no: !tre!!e! e+ore thi! Court that he entere( intothe contract in the elie+ that the *air o+ eeral(-cut (iaon( earring! :a! genuine. =n the*retet that tho!e *iece! o+ e:elry turne( out to e counter+eit, ho:ever, *etitioner!u!euently !ought the nulli+ication o+ !ai( contract on the groun( that it :a!, in +act, Etainte(:ith +rau(E 2* !uch that hi! con!ent :a! vitiate(.

9here i! +rau( :hen, through the in!i(iou! :or(! or achination! o+ one o+ the contracting*artie!, the other i! in(uce( to enter into a contract :hich, :ithout the, he :oul( not have

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agree( to. 2+ 9he recor(!, ho:ever, are are o+ any evi(ence ani+e!ting that *rivatere!*on(ent! e*loye( !uch in!i(iou! :or(! or achination! to entice *etitioner into enteringthe contract o+ arter. Neither i! there any evi(ence !ho:ing that )r. Cru in(uce( *etitioner to!ell hi! 9anay *ro*erty or that !he caole( hi to ta6e the earring! in echange +or !ai( *ro*erty.=n the contrary, )r. Cru (i( not initially acce(e to *etitioner@! *ro*o!al to uy the !ai( e:elry.Rather, it a**ear! that it :a! *etitioner, through hi! agent!, :ho le( )r. Cru to elieve that the

9anay *ro*erty :a! :orth echanging +or her e:elry a! he re*re!ente( that it! value :a!P"$$,$$$.$$ or ore than (oule that o+ the e:elry :hich :a! value( only at P1&$,$$$.$$. 5+in(ee( *etitioner@! *ro*erty :a! truly :orth that uch, it :a! certainly contrary to the nature o+ au!ine!!an-an6er li6e hi to have *arte( :ith hi! real e!tate +or hal+ it! *rice. 5n !hort, it :a!in +act *etitioner :ho re!orte( to achination! to convince )r. Cru to echange her e:elry +orthe 9anay *ro*erty.

oreover, *etitioner (i( not clearly allege i!ta6e a! a groun( +or nulli+ication o+ the contract o+!ale. /ven a!!uing that he (i(, *etitioner cannot !ucce!!+ully invo6e the !ae. 9o invali(ate acontract, i!ta6e u!t Ere+er to the !u!tance o+ the thing that i! the oect o+ the contract, or totho!e con(ition! :hich have *rinci*ally ove( one or oth *artie! to enter into thecontract.E 2 An ea*le o+ i!ta6e a! to the oect o+ the contract i! the !u!titution o+ a

!*eci+ic thing conte*late( y the *artie! :ith another. 2- 5n hi! allegation! in the co*laint,*etitioner in!inuate( that an in+erior one or one that ha( only Ru!!ian (iaon(! :a! !u!titute(+or the e:elry he :ante( to echange :ith hi! 1$-hectare lan(. e, ho:ever, +aile( to *rove the+act that *rior to the (elivery o+ the e:elry to hi, *rivate re!*on(ent! en(eavore( to a6e!uch !u!titution.

Li6e:i!e, the +act! a! *roven (o not !u**ort the allegation that *etitioner hi!el+ coul( eecu!e( +or the Ei!ta6e.E =n account o+ hi! :or6 a! a an6er-e:eler, it can e right+ullya!!ue( that he :a! an e*ert on atter! regar(ing ge!. e ha( the intellectual ca*acity an(the u!ine!! acuen a! a an6er to ta6e *recautionary ea!ure! to avert !uch a i!ta6e,con!i(ering the value o+ oth the e:elry an( hi! lan(. 9he +act that he ha( !een the e:elrye+ore =ctoer 2", 18" !houl( not have *reclu(e( hi +ro having it! genuinene!! te!te( in

the *re!ence o+ )r. Cru. a( he (one !o, he coul( have avoi(e( the *re!ent !ituation that hehi!el+ rought aout. 5n(ee(, the +inger o+ !u!*icion o+ !:itching the genuine e:elry +or a +a6einevitaly *oint! to hi. 4uch a i!ta6e cau!e( y ani+e!t negligence cannot invali(ate a

uri(ical act. 2 A! the Civil Co(e *rovi(e!, E>t?here i! no i!ta6e i+ the *arty alleging it 6ne: the(out, contingency or ri!6 a++ecting the oect o+ the contract.E2

Furtherore, *etitioner :a! a++or(e( the rea!onale o**ortunity reuire( in Article 1#8" o+ theCivil Co(e :ithin :hich to eaine the e:elry a! he in +act acce*te( the :hen a!6e( y )r.Cru i+ he :a! !ati!+ie( :ith the !ae. 29 0y ta6ing the e:elry out!i(e the an6, *etitionereecute( an act :hich :a! ore con!i!tent :ith hi! eerci!e o+ o:ner!hi* over it. 9hi! gain!cre(ence :hen it i! orne in in( that he hi!el+ ha( earlier (elivere( the 9anay *ro*erty to )r.Cru y a++iing hi! !ignature to the contract o+ !ale. 9hat a+ter t:o hour! he later claie( that

the e:elry :a! not the one he inten(e( in echange +or hi! 9anay *ro*erty, coul( not !ever the uri(ical tie that no: oun( hi an( )r. Cru. 9he nature an( value o+ the thing he ha( ta6en*reclu(e it! return a+ter that !u*ervening *erio( :ithin :hich anything coul( have ha**ene(, noteclu(ing the alteration o+ the e:elry or it! eing !:itche( :ith an in+erior 6in(.

0oth the trial an( a**ellate court!, there+ore, correctly rule( that there :ere no legal a!e! +orthe nulli+ication o+ the contract o+ !ale. =:ner!hi* over the *arcel o+ lan( an( the *air o+eeral(-cut (iaon( earring! ha( een tran!+erre( to )r. Cru an( *etitioner, re!*ectively,

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u*on the actual an( con!tructive (elivery thereo+. */ 4ai( contract o+ !ale eing a!olute innature, title *a!!e( to the ven(ee u*on (elivery o+ the thing !ol( !ince there :a! no !ti*ulationin the contract that title to the *ro*erty !ol( ha! een re!erve( in the !eller until +ull *ayent o+the *rice or that the ven(or ha! the right to unilaterally re!olve the contract the oent theuyer +ail! to *ay :ithin a +ie( *erio(. *1 4uch !ti*ulation! are not ani+e!t in the contract o+!ale.

Bhile it i! true that the aount o+ P"$,$$$.$$ +oring *art o+ the con!i(eration :a! !till *ayaleto *etitioner, it! non*ayent y )r. Cru i! not a !u++icient cau!e to invali(ate the contract or ar the tran!+er o+ o:ner!hi* an( *o!!e!!ion o+ the thing! echange( con!i(ering the +act that theircontract i! !ilent a! to :hen it ecoe! (ue an( (ean(ale. *2

Neither ay !uch +ailure to *ay the alance o+ the *urcha!e *rice re!ult in the *ayent o+intere!t thereon. Article 1#8 o+ the Civil Co(e *re!crie! the *ayent o+ intere!t y the ven(eeE+or the *erio( et:een the (elivery o+ the thing an( the *ayent o+ the *riceE in the +ollo:ingca!e!

>1? 4houl( it have een !o !ti*ulate(D

>2? 4houl( the thing !ol( an( (elivere( *ro(uce +ruit! or incoeD

>3? 4houl( he e in (e+ault, +ro the tie o+ u(icial or etrau(icial (ean( +orthe *ayent o+ the *rice.

Not one o+ the!e ca!e! otain! here. 9hi! ca!e !houl(, o+ cour!e, e (i!tingui!he(+ro De la Cruz v .Legaspi , ** :here the court hel( that +ailure to *ay the con!i(erationa+ter the notariation o+ the contract a! *reviou!ly *roi!e( re!ulte( in the ven(ee@!liaility +or *ayent o+ intere!t. 5n the ca!e at ar, there i! no !ti*ulation +or the *ayento+ intere!t in the contract o+ !ale nor *roo+ that the 9anay *ro*erty *ro(uce( +ruit! or

incoe. Neither (i( *etitioner (ean( *ayent o+ the *rice a! in +act he +ile( an actionto nulli+y the contract o+ !ale.

All tol(, *etitioner a**ear! to have elevate( thi! ca!e to thi! Court +or the *rinci*al rea!on o+itigating the aount o+ (aage! a:ar(e( to oth *rivate re!*on(ent! :hich *etitionercon!i(er! a! Eeoritant.E e conten(! that *rivate re!*on(ent! (o not (e!erve at all the a:ar(o+ (aage!. 5n +act, he *lea(! +or the total (eletion o+ the a:ar( a! regar(! *rivate re!*on(ent0elarino :ho he con!i(er! a ere Enoinal *artyE ecau!e Eno !*eci+ic clai +or (aage!again!t hiE :a! allege( in the co*laint. Bhen he +ile( the ca!e, all that *etitioner :ante( :a!that Atty. 0elarino !houl( return to hi the o:ner@! (u*licate co*y o+ 9C9 No. 32$72#, the(ee( o+ !ale eecute( y Fr. Antonio %acoe, the (ee( o+ re(e*tion an( the chec6 allote( +ore*en!e!. Petitioner allege! +urther that Atty. 0elarino !houl( not have (elivere( all tho!e

(ocuent! to )r. Cru ecau!e a! the Ela:yer +or oth the !eller an( the uyer in the !alecontract, he !houl( have *rotecte( the right! o+ oth *artie!.E oreover, *etitioner a!!ert! thatthere :a! no +ir a!i! +or (aage! ece*t +or Atty. 0elarino@! uncorroorate( te!tiony.*+

oral an( ee*lary (aage! ay e a:ar(e( :ithout *roo+ o+ *ecuniary lo!!. 5n a:ar(ing!uch (aage!, the court !hall ta6e into account the circu!tance! otaining in the ca!e !ai(a!!e!! (aage! accor(ing to it! (i!cretion.* 9o :arrant the a:ar( o+ (aage!, it u!t e!ho:n that the *er!on to :ho the!e are a:ar(e( ha! !u!taine( inury. e u!t li6e:i!ee!tali!h !u++icient (ata u*on :hich the court can *ro*erly a!e it! e!tiate o+ the aount o+

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(aage!.*- 4tateent! o+ +act! !houl( e!tali!h !uch (ata rather than ere conclu!ion! oro*inion! o+ :itne!!e!. * 9hu!

. . . . For oral (aage! to e a:ar(e(, it i! e!!ential that the claiant u!thave !ati!+actorily *rove( (uring the trial the ei!tence o+ the +actual a!i! o+ the(aage! an( it! cau!al connection :ith the a(ver!e *arty@! act!. 5+ the court ha!

no *roo+ or evi(ence u*on :hich the clai +or oral (aage! coul( e a!e(,!uch in(enity coul( not e outrightly a:ar(e(. 9he !ae hol(! true :ithre!*ect to the a:ar( o+ ee*lary (aage! :here it u!t e !ho:n that the*arty acte( in a :anton, o**re!!ive or alevolent anner. *

5n thi! regar(, the lo:er court a**eare( to have a:ar(e( (aage! on a groun( analogou! toaliciou! *ro!ecution un(er Article 221 >8? o+ the Civil Co(e *9 a! !ho:n y >1? *etitioner@!E:anton a( +aithE in loating the value o+ the 9anay *ro*erty :hich he echange( +or Eagenuine *air o+ eeral(-cut (iaon( :orth P2$$,$$.$$DE an( >2? hi! +iling o+ a Ealiciou! an(un+oun(e( ca!eE again!t *rivate re!*on(ent! :ho :ere E:ell 6no:n, re!*ecte( an( hel( in highe!tee in 4an Palo City :here everyo(y *ractically 6no:! everyo(yE an( :ho!e goo(nae! in the Et:ilight o+ their live!E :ere !oile( y *etitioner@! coing to court :ith Eunclean

han(!,E therey a++ecting their earning ca*acity in the eerci!e o+ their re!*ective *ro+e!!ion!an( e!irching their re*utation.

For it! *art, the Court o+ A**eal! a++ire( the a:ar( o+ (aage! to *rivate re!*on(ent! +orthe!e rea!on!

9he alice :ith :hich Fule +ile( thi! ca!e i! a**arent. aving ta6en *o!!e!!iono+ the genuine e:elry o+ )ra. Cru, Fule no: :i!he! to return a +a6e e:elry to)ra. Cru an(, ore than that, get ac6 the real *ro*erty, :hich hi! an6 o:n!.Fule ha! otaine( a genuine e:elry :hich he coul( !ell anytie, any:here an(to anyo(y, :ithout the !ae eing trace( to the original o:ner +or *racticallynothing. 9hi! i! *lain an( !i*le, unu!t enrichent.+/

Bhile, a! a rule, oral (aage! cannot e recovere( +ro a *er!on :ho ha! +ile( a co*laintagain!t another in goo( +aith ecau!e it i! not !oun( *olicy to *lace a *enalty on the right tolitigate, +1 the !ae, ho:ever, cannot a**ly in the ca!e at ar. 9he +actual +in(ing! o+ thecourt! a quo to the e++ect that *etitioner +ile( thi! ca!e ecau!e he :a! the victi o+ +rau(D thathe coul( not have een !uch a victi ecau!e he !houl( have eaine( the e:elry in ue!tione+ore acce*ting (elivery thereo+, con!i(ering hi! e*o!ure to the an6ing an( e:elryu!ine!!e!D an( that he +ile( the action +or the nulli+ication o+ the contract o+ !ale :ith uncleanhan(!, all (e!erve +ull +aith an( cre(it to !u**ort the conclu!ion that *etitioner :a! otivate(ore y ill :ill than a !incere atte*t to *rotect hi! right! in coencing !uit again!tre!*on(ent!.

A! *ointe( out earlier, a clo!er !crutiny o+ the chain o+ event! ie(iately *rior to an( on=ctoer 2", 18" it!el+ :oul( a*ly (eon!trate that *etitioner :a! not !i*ly negligent in+ailing to eerci!e (ue (iligence to a!!ure hi!el+ that :hat he :a! ta6ing in echange +or hi!*ro*erty :ere genuine (iaon(!. e ha( rather *lace( hi!el+ in a !ituation +ro :hich it*re*on(erantly a**ear! that hi! !eeing ignorance :a! actually u!t a ru!e. 5n(ee(, he ha(unnece!!arily (ragge( re!*on(ent! to +ace the travail! o+ litigation in !*eculating at the *o!!ile+avorale outcoe o+ hi! co*laint :hen he !houl( have realie( that hi! !u**o!e(*re(icaent :a! hi! o:n a6ing. Be, there+ore, !ee here no !elance o+ an hone!t an(

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!incere elie+ on hi! *art that he :a! !:in(le( y re!*on(ent! :hich :oul( entitle hi tore(re!! in court. 5t u!t e note( that e+ore *etitioner :a! ale to convince )r. Cru toechange her e:elry +or the 9anay *ro*erty, *etitioner too6 *ain! to thoroughly eaine !ai(

e:elry, even going to the etent o+ !6etching their a**earance. Bhy at the *reci!e oent:hen he :a! aout to ta6e *hy!ical *o!!e!!ion thereo+ he +aile( to eert etra e++ort! to chec6their genuinene!! (e!*ite the large con!i(eration involve( ha! never een e*laine( at all y

*etitioner. i! act! thu! +aile( to accor( :ith :hat an or(inary *ru(ent an :oul( have (one inthe !ae !ituation. 0eing an e*erience( an6er an( a u!ine!!an hi!el+ :ho (elierately!6irte( a legal i*e(ient in the !ale o+ the 9anay *ro*erty an( to iniie the ca*ital gain! ta+or it! echange, it :a! actually gro!! rec6le!!ne!! +or hi to have erely con(ucte( a cur!oryeaination o+ the e:elry :hen every o**ortunity +or (oing !o :a! not (enie( hi. A**arently,he carrie( on hi! *er!on a te!ter :hich he later u!e( to *rove the allege( +a6ery ut :hich he(i( not u!e at the tie :hen it :a! o!t nee(e(. Furtherore, it too6 hi t:o ore hour! o+une*laine( (elay e+ore he co*laine( that the e:elry he receive( :ere counter+eit. ence,:e !tate( earlier that anything coul( have ha**ene( (uring all the tie that *etitioner :a! inco*lete *o!!e!!ion an( control o+ the e:elry, inclu(ing the *o!!iility o+ !u!tituting the :ith+a6e one!, again!t :hich re!*on(ent! :oul( have a great (eal o+ (i++iculty (e+en(ingthe!elve!. 9he truth i! that *etitioner even +aile( to !ucce!!+ully *rove (uring trial that the

e:elry he receive( +ro )r. Cru :ere not genuine. A(( to that the +act that he ha( een!hre:( enough to loat the 9anay *ro*erty@! *rice only a +e: (ay! a+ter he *urcha!e( it at auch lo:er value. 9hu!, it i! our con!i(ere( vie: that i+ thi! !le: o+ circu!tance! :ereconnecte(, li6e *iece! o+ +aric !e:n into a uilt, they :oul( !u++iciently (eon!trate that hi!act! :ere not erely negligent ut rather !tu(ie( an( (elierate.

Be (o not have here, there+ore, a !ituation :here *etitioner@! co*laint :a! !i*ly +oun( laterto e a!e( on an erroneou! groun( :hich, un(er !ettle( uri!*ru(ence, :oul( not have een area!on +or a:ar(ing oral an( ee*lary (aage!. +2 5n!tea(, the cau!e o+ action o+ thein!tant ca!e a**ear! to have een contrive( y *etitioner hi!el+. 5n other :or(!, he :a!*lace( in a !ituation :here he coul( not hone!tly evaluate :hether hi! cau!e o+ action ha! a!elance o+ erit, !uch that it :oul( reuire the e*erti!e o+ the court! to *ut it to a te!t. i!

in!i!tent *ur!uit o+ !uch ca!e then cou*le( :ith circu!tance! !ho:ing that he hi!el+ :a!guilty in ringing aout the !u**o!e( :rong(oing on :hich he anchore( hi! cau!e o+ action:oul( ren(er hi an!:erale +or all (aage! the (e+en(ant ay !u++er ecau!e o+ it. 9hi! i!*reci!ely :hat too6 *lace in the *etition at ar an( :e +in( no cogent rea!on to (i!tur the+in(ing! o+ the court! elo: that re!*on(ent! in thi! ca!e !u++ere( con!i(erale (aage! (ue to*etitioner@! un:arrante( action.

B/R/F=R/, the (eci!ion o+ the Court o+ A**eal! (ate( =ctoer 2$, 12 i! herey AFF5R/) in toto. )r. Cru, ho:ever, i! or(ere( to *ay *etitioner the alance o+ the *urcha!e*rice o+ P"$,$$$.$$ :ithin ten >1$? (ay! +ro the +inality o+ thi! (eci!ion. Co!t! again!t*etitioner.

4= =R)/R/).

Narvasa, C.J., apunan an! "urisima, JJ., concu



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anila

/N 0ANC

G.R. No. L0112 (l *1, 19-1

"ERN#N3O #. G#!TE, *lainti++-a**ellee,v!.!S#)ELO "ON#C!ER, GEORGE 4R#4O5ER, L#R#P M!NES 6 SMELT!NG CO., !NC.,SEGUN3!N# $!$#S, "RN#C!SCO 3#NTE, P#C!"!CO ESC#N3OR an' "ERN#N3OT7, (e+en(ant!-a**ellant!.

Ale#o $abanag %or plainti%%&appellee.'implicio (. )apia, Antonio *arre!o an! "e!ro +uevarra %or !e%en!ants&appellants.

RE7ES, (.).L., J .8

9hi! a**eal coe! to u! (irectly +ro the Court o+ Fir!t 5n!tance ecau!e the clai! involve(aggregate ore than P2$$,$$$.$$.

)e+en(ant-a**ellant 5!aelo Fonacier :a! the o:ner an(Ior hol(er, either y hi!el+ or in are*re!entative ca*acity, o+ 11 iron lo(e ineral clai!, 6no:n a! the )a:ahan Grou*, !ituate(in the unici*ality o+ %o!e Panganian, *rovince o+ Caarine! Norte.

0y a E)ee( o+ A!!ignentE (ate( 4e*teer 2, 1#2>/hiit E3E?, Fonacier con!titute( an(a**ointe( *lainti++-a**ellee Fernan(o A. Gaite a! hi! true an( la:+ul attorney-in-+act to enter intoa contract :ith any in(ivi(ual or uri(ical *er!on +or the e*loration an( (evelo*ent o+ the

ining clai! a+oreentione( on a royalty a!i! o+ not le!! than P$.#$ *er ton o+ ore that ighte etracte( there+ro. =n arch 1, 1#", Gaite in turn eecute( a general a!!ignent>Recor( on A**eal, **. 17-1? conveying the (evelo*ent an( e*loitation o+ !ai( iningclai! into the Lara* 5ron ine!, a !ingle *ro*rietor!hi* o:ne( !olely y an( elonging to hi,on the !ae royalty a!i! *rovi(e( +or in /hiit E3E. 9herea+ter, Gaite ear6e( u*on the(evelo*ent an( e*loitation o+ the ining clai! in ue!tion, o*ening an( *aving roa(! :ithinan( out!i(e their oun(arie!, a6ing other i*roveent! an( in!talling +acilitie! therein +or u!ein the (evelo*ent o+ the ine!, an( in tie etracte( there+ro :hat he clai an( e!tiate(to e a**roiately 2",$$$ etric ton! o+ iron ore.

For !oe rea!on or another, 5!aelo Fonacier (eci(e( to revo6e the authority grante( y hi toGaite to e*loit an( (evelo* the ining clai! in ue!tion, an( Gaite a!!ente( thereto !uect

to certain con(ition!. A! a re!ult, a (ocuent entitle( ERevocation o+ Po:er o+ Attorney an(ContractE :a! eecute( on )eceer 8, 1#" >/hiit EAE?,:herein Gaite tran!+erre( toFonacier, +or the con!i(eration o+ P2$,$$$.$$, *lu! 1$ o+ the royaltie! that Fonacier :oul(receive +ro the ining clai!, all hi! right! an( intere!t! on all the roa(!, i*roveent!, an(+acilitie! in or out!i(e !ai( clai!, the right to u!e the u!ine!! nae ELara* 5ron ine!E an( it!goo(:ill, an( all the recor(! an( (ocuent! relative to the ine!. 5n the !ae (ocuent, Gaitetran!+erre( to Fonacier all hi! right! an( intere!t! over the E2",$$$ ton! o+ iron ore, ore orle!!E that the +orer ha( alrea(y etracte( +ro the ineral clai!, in con!i(eration o+ the !uo+ P7#,$$$.$$, P1$,$$$.$$ o+ :hich :a! *ai( u*on the !igning o+ the agreeent, an(


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. 9he alance o+ 45K9;-F5'/ 9=4AN) P/4=4 >P,$$$.$$? :ill e *ai( +ro an(out o+ the +ir!t letter o+ cre(it covering the +ir!t !hi*ent o+ iron ore! an( o+ the +ir!taount (erive( +ro the local !ale o+ iron ore a(e y the Lara* ine! H 4elting Co.5nc., it! a!!ign!, a(ini!trator!, or !ucce!!or! in intere!t!.

9o !ecure the *ayent o+ the !ai( alance o+ P,$$$.$$, Fonacier *roi!e( to eecute in

+avor o+ Gaite a !urety on(, an( *ur!uant to the *roi!e, Fonacier (elivere( to Gaite a !uretyon( (ate( )eceer 8, 1#" :ith hi!el+ >Fonacier? a! *rinci*al an( the Lara* ine! an(4elting Co. an( it! !toc6hol(er! George ra6o:er, 4egun(ina 'iva!, Paci+ico /!can(or,Franci!co )ante, an( Fernan(o 9y a! !uretie! >/hiit EA-1E?. Gaite te!ti+ie(, ho:ever, that:hen thi! on( :a! *re!ente( to hi y Fonacier together :ith the ERevocation o+ Po:er o+

Attorney an( ContractE, /hiit EAE, on )eceer 8, 1#", he re+u!e( to !ign !ai( /hiit EAEunle!! another on( un(er :ritten y a on(ing co*any :a! *ut u* y (e+en(ant! to !ecurethe *ayent o+ the P,$$$.$$ alance o+ their *rice o+ the iron ore in the !toc6*ile! in theining clai!. ence, a !econ( on(, al!o (ate( )eceer 8, 1#" >/hiit E0E?,:a! eecute(y the !ae *artie! to the +ir!t on( /hiit EA-1E, :ith the Far /a!tern 4urety an( 5n!uranceCo. a! a((itional !urety, ut it *rovi(e( that the liaility o+ the !urety co*any :oul( attach only:hen there ha( een an actual !ale o+ iron ore y the Lara* ine! H 4elting Co. +or an

aount o+ not le!! then P,$$$.$$, an( that, +urtherore, the liaility o+ !ai( !urety co*any:oul( autoatically e*ire on )eceer 8, 1##. 0oth on(! :ere attache( to the ERevocationo+ Po:er o+ Attorney an( ContractE, /hiit EAE, an( a(e integral *art! thereo+.

=n the !ae (ay that Fonacier revo6e( the *o:er o+ attorney he gave to Gaite an( the t:oeecute( an( !igne( the ERevocation o+ Po:er o+ Attorney an( ContractE, /hiit EAE, Fonacierentere( into a EContract o+ ining =*erationE, ce(ing, tran!+erring, an( conveying unto theLara* ine! an( 4elting Co., 5nc. the right to (evelo*, e*loit, an( e*lore the ining clai!in ue!tion, together :ith the i*roveent! therein an( the u!e o+ the nae ELara* 5ron ine!Ean( it! goo( :ill, in con!i(eration o+ certain royaltie!. Fonacier li6e:i!e tran!+erre(, in the !ae(ocuent, the co*lete title to the a**roiately 2",$$$ ton! o+ iron ore :hich he acuire(+ro Gaite, to the Lara* H 4elting Co., in con!i(eration +or the !igning y the co*any an( it!

!toc6hol(er! o+ the !urety on(! (elivere( y Fonacier to Gaite >Recor( on A**eal, **. 82-"?.

* to )eceer 8, 1##, :hen the on( /hiit E0E e*ire( :ith re!*ect to the Far /a!tern4urety an( 5n!urance Co*any, no !ale o+ the a**roiately 2",$$$ ton! o+ iron ore ha( eena(e y the Lara* ine! H 4elting Co., 5nc., nor ha( the P,$$$.$$ alance o+ the *rice o+!ai( ore een *ai( to Gaite y Fonacier an( hi! !uretie! *ayent o+ !ai( aount, on the theorythat they ha( lo!t right to a6e u!e o+ the *erio( given the :hen their on(, /hiit E0Eautoatically e*ire( >/hiit! ECE to EC-2"E?. An( :hen Fonacier an( hi! !uretie! +aile( to *aya! (ean(e( y Gaite, the latter +ile( the *re!ent co*laint again!t the in the Court o+ Fir!t5n!tance o+ anila >Civil Ca!e No. 231$? +or the *ayent o+ the P,$$$.$$ alance o+ the*rice o+ the ore, con!euential (aage!, an( attorney@! +ee!.

All the (e+en(ant! ece*t Franci!co )ante !et u* the uni+or (e+en!e that the oligation !ue(u*on y Gaite :a! !uect to a con(ition that the aount o+ P,$$$.$$ :oul( e *ayale out o+ the +ir!t letter o+ cre(it covering the +ir!t !hi*ent o+ iron ore an(Ior the +ir!t aount (erive( +rothe local !ale o+ the iron ore y the Lara* ine! H 4elting Co., 5nc.D that u* to the tie o+ the+iling o+ the co*laint, no !ale o+ the iron ore ha( een a(e, hence the con(ition ha( not yeteen +ul+ille(D an( that con!euently, the oligation :a! not yet (ue an( (ean(ale.)e+en(ant Fonacier al!o conten(e( that only 7,#73 ton! o+ the e!tiate( 2",$$$ ton! o+ iron ore


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!ol( to hi y Gaite :a! actually (elivere(, an( counterclaie( +or ore than P2$$,$$$.$$(aage!.

At the trial o+ the ca!e, the *artie! agree( to liit the *re!entation o+ evi(ence to t:o i!!ue!

>1? Bhether or not the oligation o+ Fonacier an( hi! !uretie! to *ay Gaite P,$$$.$$ ecoe(ue an( (ean(ale :hen the (e+en(ant! +aile( to rene: the !urety on( un(er:ritten y theFar /a!tern 4urety an( 5n!urance Co., 5nc. >/hiit E0E?, :hich e*ire( on )eceer 8, 1##Dan(

>2? Bhether the e!tiate( 2",$$$ ton! o+ iron ore !ol( y *lainti++ Gaite to (e+en(ant Fonacier:ere actually in ei!tence in the ining clai! :hen the!e *artie! eecute( the ERevocation o+Po:er o+ Attorney an( ContractE, /hiit EA.E

=n the +ir!t ue!tion, the lo:er court hel( that the oligation o+ the (e+en(ant! to *ay *lainti++ theP,$$$.$$ alance o+ the *rice o+ the a**roiately 2",$$$ ton! o+ iron ore :a! one :ith ater i.e., that it :oul( e *ai( u*on the !ale o+ !u++icient iron ore y (e+en(ant!, !uch !ale to ee++ecte( :ithin one year or e+ore )eceer 8, 1##D that the giving o+ !ecurity :a! a con(ition*rece(ent to Gait@! giving o+ cre(it to (e+en(ant!D an( that a! the latter +aile( to *ut u* a goo(an( !u++icient !ecurity in lieu o+ the Far /a!tern 4urety on( >/hiit E0E? :hich e*ire( on)eceer 8, 1##, the oligation ecae (ue an( (ean(ale un(er Article 118 o+ the Ne:Civil Co(e.

A! to the !econ( ue!tion, the lo:er court +oun( that *lainti++ Gaite (i( have a**roiately2",$$$ ton! o+ iron ore at the ining clai! in ue!tion at the tie o+ the eecution o+ thecontract /hiit EA.E

%u(gent :a!, accor(ingly, ren(ere( in +avor o+ *lainti++ Gaite or(ering (e+en(ant! to *ay hi, ointly an( !everally, P,$$$.$$ :ith intere!t at & *er annu +ro )eceer , 1## until

*ayent, *lu! co!t!. Fro thi! u(gent, (e+en(ant! ointly a**eale( to thi! Court.

)uring the *en(ency o+ thi! a**eal, !everal inci(ental otion! :ere *re!ente( +or re!olution aotion to (eclare the a**ellant! Lara* ine! H 4elting Co., 5nc. an( George ra6o:er inconte*t, +ile( y a**ellant Fonacier, an( t:o otion! to (i!i!! the a**eal a! having ecoeaca(eic an( a otion +or ne: trial an(Ior to ta6e u(icial notice o+ certain (ocuent!, +ile( ya**ellee Gaite. 9he otion +or conte*t i! uneritoriou! ecau!e the ain allegation thereinthat the a**ellant! Lara* ine! H 4elting Co., 5nc. an( ra6o:er ha( !ol( the iron ore here inue!tion, :hich allege(ly i! E*ro*erty in litigationE, ha! not een !u!tantiate(D an( even i+ true,(oe! not a6e the!e a**ellant! guilty o+ conte*t, ecau!e :hat i! un(er litigation in thi!a**eal i! a**ellee Gaite@! right to the *ayent o+ the alance o+ the *rice o+ the ore, an( not theiron ore it!el+. A! +or the !everal otion! *re!ente( y a**ellee Gaite, it i! unnece!!ary to

re!olve the!e otion! in vie: o+ the re!ult! that :e have reache( in thi! ca!e, :hich :e !hallherea+ter (i!cu!!.

9he ain i!!ue! *re!ente( y a**ellant! in thi! a**eal are

>1? that the lo:er court erre( in hol(ing that the oligation o+ a**ellant Fonacier to *ay a**elleeGaite the P,$$$.$$ >alance o+ the *rice o+ the iron ore in ue!tion?i! one :ith a *erio( orter an( not one :ith a !u!*en!ive con(ition, an( that the ter e*ire( on )eceer 8, 1##Dan(


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>2? that the lo:er court erre( in not hol(ing that there :ere only 1$,#".# ton! in the !toc6*ile!o+ iron ore !ol( y a**ellee Gaite to a**ellant Fonacier.

9he +ir!t i!!ue involve! an inter*retation o+ the +ollo:ing *rovi!ion in the contract /hiit EAE

7. 9hat Fernan(o Gaite or Lara* 5ron ine! herey tran!+er! to 5!aelo F. Fonacier allhi! right! an( intere!t! over the 2",$$$ ton! o+ iron ore, ore or le!!, aove-re+erre( totogether :ith all hi! right! an( intere!t! to o*erate the ine in con!i(eration o+ the !uo+ 4/'/N9;-F5'/ 9=4AN) P/4=4 >P7#,$$$.$$? :hich the latter in(! to *ay a!+ollo:!

a. 9/N 9=4AN) P/4=4 >P1$,$$$.$$? :ill e *ai( u*on the !igning o+ thi!agreeent.

. 9he alance o+ 45K9;-F5'/ 9=4AN) P/4=4 >P,$$$.$$?:ill e *ai( +ro an(out o+ the +ir!t letter o+ cre(it covering the +ir!t !hi*ent o+ iron ore a(e y the Lara*ine! H 4elting Co., 5nc., it! a!!ign!, a(ini!trator!, or !ucce!!or! in intere!t.

Be +in( the court elo: to e legally correct in hol(ing that the !hi*ent or local !ale o+ the ironore i! not a con(ition *rece(ent >or !u!*en!ive? to the *ayent o+ the alance o+ P,$$$.$$,ut :a! only a !u!*en!ive *erio( or ter. Bhat characterie! a con(itional oligation i! the +actthat it! e++icacy or oligatory +orce >a! (i!tingui!he( +ro it! (ean(aility? i! !uor(inate( tothe ha**ening o+ a +uture an( uncertain eventD !o that i+ the !u!*en!ive con(ition (oe! not ta6e*lace, the *artie! :oul( !tan( a! i+ the con(itional oligation ha( never ei!te(. 9hat the *artie!to the contract /hiit EAE (i( not inten( any !uch !tate o+ thing! to *revail i! !u**orte( y!everal circu!tance!

1? 9he :or(! o+ the contract e*re!! no contingency in the uyer@! oligation to *ay E9healance o+ 4ity-Five 9hou!an( Pe!o! >P,$$$.$$? ill be pai! out o+ the +ir!t letter o+ cre(it

covering the +ir!t !hi*ent o+ iron ore! . . .E etc. 9here i! no uncertainty that the *ayent :illhave to e a(e !ooner or laterD :hat i! un(eterine( i! erely the e-act !ate at :hich it :ille a(e. 0y the very ter! o+ the contract, there+ore, the ei!tence o+ the oligation to *ay i!recognie(D only it! maturity or !eman!ability i! (e+erre(.

2? A contract o+ !ale i! norally coutative an( onerou! not only (oe! each one o+ the*artie! a!!ue a correlative oligation >the !eller to (eliver an( tran!+er o:ner!hi* o+ the thing!ol( an( the uyer to *ay the *rice?,ut each *arty antici*ate! *er+orance y the other +rothe very !tart. Bhile in a !ale the oligation o+ one *arty can e la:+ully !uor(inate( to anuncertain event, !o that the other un(er!tan(! that he a!!ue! the ri!6 o+ receiving nothing +or:hat he give! >a! in the ca!e o+ a !ale o+ ho*e! or e*ectation!, emptio spei ?, it i! not in theu!ual cour!e o+ u!ine!! to (o !oD hence, the contingent character o+ the oligation u!t clearly

a**ear. Nothing i! +oun( in the recor( to evi(ence that Gaite (e!ire( or a!!ue( to run the ri!6o+ lo!ing hi! right over the ore :ithout getting *ai( +or it, or that Fonacier un(er!too( that Gaitea!!ue( any !uch ri!6. 9hi! i! *rove( y the +act that Gaite in!i!te( on a on( a to guarantee*ayent o+ the P,$$$.$$, an not only u*on a on( y Fonacier, the Lara* ine! H 4eltingCo., an( the co*any@! !toc6hol(er!, ut al!o on one y a !urety co*anyD an( the +act thata**ellant! (i( *ut u* !uch on(! in(icate! that they a(itte( the (e+inite ei!tence o+ theiroligation to *ay the alance o+ P,$$$.$$.


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3? 9o !uor(inate the oligation to *ay the reaining P,$$$.$$ to the !ale or !hi*ent o+ theore a! a con(ition *rece(ent, :oul( e tantaount to leaving the *ayent at the (i!cretion o+the (etor, +or the !ale or !hi*ent coul( not e a(e unle!! the a**ellant! too6 !te*! to !ellthe ore. A**ellant! :oul( thu! e ale to *o!t*one *ayent in(e+initely. 9he (e!ireaility o+avoi(ing !uch a con!truction o+ the contract /hiit EAE nee(! no !tre!!ing.

"? A!!uing that there coul( e (out :hether y the :or(ing o+ the contract the *artie!in(ente( a !u!*en!ive con(ition or a !u!*en!ive *erio( >!ies a! quem? +or the *ayent o+ theP,$$$.$$, the rule! o+ inter*retation :oul( incline the !cale! in +avor o+ Ethe greater reci*rocityo+ intere!t!E, !ince !ale i! e!!entially onerou!. 9he Civil Co(e o+ the Phili**ine!, Article 1378,*aragra*h 1, in +ine, *rovi(e!

5+ the contract i! onerou!, the (out !hall e !ettle( in +avor o+ the greate!t reci*rocity o+intere!t!.

an( there can e no ue!tion that greater reci*rocity otain! i+ the uyer@ oligation i! (eee(to e actually ei!ting, :ith only it! aturity >(ue (ate? *o!t*one( or (e+erre(, that i+ !ucholigation :ere vie:e( a! non-ei!tent or not in(ing until the ore :a! !ol(.

9he only rational vie: that can e ta6en i! that the !ale o+ the ore to Fonacier :a! a !ale oncre(it, an( not an aleatory contract :here the tran!+eror, Gaite, :oul( a!!ue the ri!6 o+ noteing *ai( at allD an( that the *reviou! !ale or !hi*ent o+ the ore :a! not a !u!*en!ivecon(ition +or the *ayent o+ the alance o+ the agree( *rice, ut :a! inten(e( erely to +i the+uture (ate o+ the *ayent.

9hi! i!!ue !ettle(, the net *oint o+ inuiry i! :hether a**ellant!, Fonacier an( hi! !uretie!, !tillhave the right to in!i!t that Gaite !houl( :ait +or the !ale or !hi*ent o+ the ore e+ore receiving*ayentD or, in other :or(!, :hether or not they are entitle( to ta6e +ull a(vantage o+ the *erio(grante( the +or a6ing the *ayent.

Be agree :ith the court elo: that the a**ellant have +or+eite( the right court elo: that thea**ellant! have +or+eite( the right to co*el Gaite to :ait +or the !ale o+ the ore e+ore receiving*ayent o+ the alance o+ P,$$$.$$, ecau!e o+ their +ailure to rene: the on( o+ the Far/a!tern 4urety Co*any or el!e re*lace it :ith an euivalent guarantee. 9he e*iration o+ theon(ing co*any@! un(erta6ing on )eceer 8, 1## !u!tantially re(uce( the !ecurity o+ theven(or@! right! a! cre(itor +or the un*ai( P,$$$.$$, a !ecurity that Gaite con!i(ere( e!!entialan( u*on :hich he ha( in!i!te( :hen he eecute( the (ee( o+ !ale o+ the ore to Fonacier>/hiit EAE?. 9he ca!e !uarely coe! un(er *aragra*h! 2 an( 3 o+ Article 118 o+ the CivilCo(e o+ the Phili**ine!

EAR9. 118. 9he (etor !hall lo!e every right to a6e u!e o+ the *erio(

>1? . . .

>2? Bhen he (oe! not +urni!h to the cre(itor the guarantie! or !ecuritie! :hich he ha!*roi!e(.

>3? Bhen y hi! o:n act! he ha! i*aire( !ai( guarantie! or !ecuritie! a+ter theire!tali!hent, an( :hen through +ortuitou! event they (i!a**ear, unle!! he ie(iatelygive! ne: one! eually !ati!+actory.


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A**ellant!@ +ailure to rene: or eten( the !urety co*any@! on( u*on it! e*iration *lainlyi*aire( the !ecuritie! given to the cre(itor >a**ellee Gaite?, unle!! ie(iately rene:e( orre*lace(.

9here i! no erit in a**ellant!@ arguent that Gaite@! acce*tance o+ the !urety co*any@! on(:ith +ull 6no:le(ge that on it! +ace it :oul( autoatically e*ire :ithin one year :a! a :aiver o+

it! rene:al a+ter the e*iration (ate. No !uch :aiver coul( have een inten(e(, +or Gaite !too(to lo!e an( ha( nothing to gain arelyD an( i+ there :a! any, it coul( e rationally e*laine( onlyi+ the a**ellant! ha( agree( to !ell the ore an( *ay Gaite e+ore the !urety co*any@! on(e*ire( on )eceer 8, 1##. 0ut in the latter ca!e the (e+en(ant!-a**ellant!@ oligation to *ayecae a!olute a+ter one year +ro the tran!+er o+ the ore to Fonacier y virtue o+ the (ee(/hiit EA.E.

All the alternative!, there+ore, lea( to the !ae re!ult that Gaite acte( :ithin hi! right! in(ean(ing *ayent an( in!tituting thi! action one year +ro an( a+ter the contract >/hiit EAE?:a! eecute(, either ecau!e the a**ellant (etor! ha( i*aire( the !ecuritie! originally givenan( therey +or+eite( any +urther tie :ithin :hich to *ayD or ecau!e the ter o+ *ayent :a!originally o+ no ore than one year, an( the alance o+ P,$$$.$$ ecae (ue an( *ayale

therea+ter.

Coing no: to the !econ( i!!ue in thi! a**eal, :hich i! :hether there :ere really 2",$$$ ton!o+ iron ore in the !toc6*ile! !ol( y a**ellee Gaite to a**ellant Fonacier, an( :hether, i+ thereha( een a !hort-(elivery a! claie( y a**ellant!, they are entitle( to the *ayent o+(aage!, :e u!t, at the out!et, !tre!! t:o thing!%irst , that thi! i! a ca!e o+ a !ale o+ a !*eci+ica!! o+ +ungile goo(! +or a !ingle *rice or a lu* !u, the uantity o+ E2",$$$ ton! o+ iron ore,ore or le!!,E !tate( in the contract /hiit EA,E eing a ere e!tiate y the *artie! o+ the totaltonnage :eight o+ the a!!D an( secon! , that the evi(ence !ho:! that neither o+ the *artie! ha(actually ea!ure( o+ :eighe( the a!!, !o that they oth trie( to arrive at the total uantity ya6ing an e!tiate o+ the volue thereo+ in cuic eter! an( then ulti*lying it y thee!tiate( :eight *er ton o+ each cuic eter.

9he !ale et:een the *artie! i! a !ale o+ a !*eci+ic a!! or iron ore ecau!e no *rovi!ion :a!a(e in their contract +or the ea!uring or :eighing o+ the ore !ol( in or(er to co*lete or*er+ect the !ale, nor :a! the *rice o+ P7#,$$$,$$ agree( u*on y the *artie! a!e( u*on any!uch ea!ureent.>!ee Art. 1"8$, !econ( *ar., Ne: Civil Co(e?. 9he !uect atter o+ the !alei!, there+ore, a (eterinate oect, the a!!, an( not the actual nuer o+ unit! or ton!containe( therein, !o that all that :a! reuire( o+ the !eller Gaite :a! to (eliver in goo( +aith tohi! uyer all o+ the ore +oun( in the a!!, not:ith!tan(ing that the uantity (elivere( i! le!! thanthe aount e!tiate( y the >oile achinery H 4u**ly Co., 5nc. v!. ;or6 =il+iel( 4alvageCo., 5nc. 171 4o. 872, a**lying art. 2"# o+ the Loui!iana Civil Co(e?. 9here i! no charge in thi!ca!e that Gaite (i( not (eliver to a**ellant! all the ore +oun( in the !toc6*ile! in the iningclai! in ue!tion!D Gaite ha(, there+ore, co*lie( :ith hi! *roi!e to (eliver, an( a**ellant! inturn are oun( to *ay the lu* *rice.

0ut a!!uing that *lainti++ Gaite un(ertoo6 to !ell an( a**ellant! un(ertoo6 to uy, not a (e+initea!!, ut a**roiately 2",$$$ ton! o+ ore, !o that any !u!tantial (i++erence in thi! uantity(elivere( :oul( entitle the uyer! to recover (aage! +or the !hort-(elivery, :a! there really a!hort-(elivery in thi! ca!eJ


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Be thin6 not. A! alrea(y !tate(, neither o+ the *artie! ha( actually ea!ure( or :eighe( the:hole a!! o+ ore cuic eter y cuic eter, or ton y ton. 0oth *artie! *re(icate theirre!*ective clai! only u*on an e!tiate( nuer o+ cuic eter! o+ ore ulti*lie( y theaverage tonnage +actor *er cuic eter.

No:, a**ellee Gaite a!!ert! that there :a! a total o+ 7,37# cuic eter! in the !toc6*ile! o+ ore

that he !ol( to Fonacier, :hile a**ellant! conten( that y actual ea!ureent, their :itne!!Cir*riano anlaMgit +oun( the total volue o+ ore in the !toc6*ile! to e only &.&$ cuiceter!. A! to the average :eight in ton! *er cuic eter, the *artie! are again in (i!agreeent,:ith a**ellant! claiing the correct tonnage +actor to e 2.18 ton! to a cuic eter, :hilea**ellee Gaite clai! that the correct tonnage +actor i! aout 3.7.

5n the +ace o+ the con+lict o+ evi(ence, :e ta6e a! the o!t reliale e!tiate o+ the tonnage+actor o+ iron ore in thi! ca!e to e that a(e y Leo*ol(o F. Aa(, chie+ o+ the ine! an(etallurgical )ivi!ion o+ the 0ureau o+ ine!, a governent *en!iona(o to the 4tate! an( aining engineering gra(uate o+ the niver!itie! o+ Neva(a an( Cali+ornia, :ith alo!t 22 year!o+ e*erience in the 0ureau o+ ine!. 9hi! :itne!! *lace( the tonnage +actor o+ every cuiceter o+ iron ore at et:een 3 etric ton! a! iniu to # etric ton! a! aiu. 9hi!

e!tiate, in turn, clo!ely corre!*on(! to the average tonnage +actor o+ 3.3 a(o*te( in hi!correcte( re*ort >/hiit! EFFE an( FF-1E? y engineer Nee!io Gaatero, :ho :a! !ent y the0ureau o+ ine! to the ining clai! involve( at the reue!t o+ a**ellant ra6o:er, *reci!ely toa6e an o++icial e!tiate o+ the aount o+ iron ore in Gaite@! !toc6*ile! a+ter the (i!*ute aro!e.

/ven granting, then, that the e!tiate o+ &,&$ cuic eter! o+ ore in the !toc6*ile! a(e ya**ellant@! :itne!! Ci*riano anlaMgit i! correct, i+ :e ulti*ly it y the average tonnage +actoro+ 3.3 ton! to a cuic eter, the *ro(uct i! 21,8$.7 ton!, :hich i! not very +ar +ro the e!tiateo+ 2",$$$ ton! a(e y a**ellee Gaite, con!i(ering that actual :eighing o+ each unit o+ thea!! :a! *ractically i*o!!ile, !o that a rea!onale *ercentage o+ error !houl( e allo:e(anyone a6ing an e!tiate o+ the eact uantity in ton! +oun( in the a!!. 5t u!t not e+orgotten that the contract /hiit EAE e*re!!ly !tate( the aount to e 2",$$$ ton!, more orless. >ch. Pine River Logging H 5*roveent Co. v! .4., 27, "& L. /(. 11&"?.

9here :a!, con!euently, no !hort-(elivery in thi! ca!e a! :oul( entitle a**ellant! to the*ayent o+ (aage!, nor coul( Gaite have een guilty o+ any +rau( in a6ing anyi!re*re!entation to a**ellant! a! to the total uantity o+ ore in the !toc6*ile! o+ the iningclai! in ue!tion, a! charge( y a**ellant!, !ince Gaite@! e!tiate a**ear! to e !u!tantiallycorrect.

B/R/F=R/, +in(ing no error in the (eci!ion a**eale( +ro, :e herey a++ir the !ae, :ithco!t! again!t a**ellant!.


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anila

4/C=N) )5'545=N

G.R. No. 1+*1* Noe:ber 1+, 2//1

POL7TEC%N!C UN!$ERS!T7 O" T%E P%!L!PP!NES, *etitioner,v!.COURT O" #PPE#LS an' "!RESTONE CER#M!CS, !NC., re!*on(ent!.

---------------------------------------------------------

G.R. No. 1+*9/ Noe:ber 1+, 2//1

N#T!ON#L 3E$ELOPMENT CORPOR#T!ON, *etitioner,

v!."!RESTONE CER#M!CS, !NC., re!*on(ent!.

)ELLOS!LLO, J .8

A litigation i! not !i*ly a conte!t o+ litigant! e+ore the ar o+ *ulic o*inionD ore than that, it i!a *ur!uit o+ u!tice through legal an( euitale ean!. 9o *revent the !earch +or u!tice +roevolving into a co*etition +or *ulic a**roval, !ociety inve!t! the u(iciary :ith co*letein(e*en(ence therey in!ulating it +ro (ean(! e*re!!e( through any e(iu, the *re!! noteclu(e(. 9hu!, i+ the court :oul( erely re+lect, an( :or!e, !uccu to the great *re!!ure! o+the (ay, the en( re!ult, it i! +eare(, :oul( e a trave!ty o+ u!tice.

5n the early !itie!, *etitioner National )evelo*ent Cor*oration >N)C?, a governent o:ne(an( controlle( cor*oration create( un(er CA 182 a! aen(e( y CA 311 an( P) No. &&8, ha(in it! (i!*o!al a ten >1$?-hectare *ro*erty locate( along Purea 4t., 4ta. e!a, anila. 9hee!tate :a! *o*ularly 6no:n a! the N)C co*oun( an( covere( y 9ran!+er Certi+icate! o+ 9itleNo!. 288#, 11$3$1 an( 1"#"7$.

4oetie in ay 1 *rivate re!*on(ent Fire!tone Ceraic! 5nc. >F5R/49=N/? ani+e!te(it! (e!ire to lea!e a *ortion o+ the *ro*erty +or it! ceraic anu+acturing u!ine!!. =n 2"

Augu!t 1 N)C an( F5R/49=N/ entere( into a contract o+ lea!e (enoinate( a! ContractNo. C-3$- covering a *ortion o+ the *ro*erty ea!ure( at 2.$118 hectare! +or u!e a! aanu+acturing *lant +or a ter o+ ten >1$? year!, rene:ale +or another ten >1$? year! un(er the!ae ter! an( con(ition!.1 5n con!euence o+ the agreeent, F5R/49=N/ con!tructe( on the

lea!e( *rei!e! !everal :arehou!e! an( other i*roveent! nee(e( +or the +arication o+ceraic *ro(uct!.

9hree an( a hal+ >3-1I2? year! later, or on 8 %anuary 1&, F5R/49=N/ entere( into a !econ(contract o+ lea!e :ith N)C over the latter@! +our >"?-unit *re-+aricate( re*aration !teel:arehou!e !tore( in )aliao, )avao. F5R/49=N/ agree( to !hi* the :arehou!e to anila +oreventual a!!ely :ithin the N)C co*oun(. 9he !econ( contract, (enoinate( a! ContractNo. C-2&-&8, :a! +or !iilar u!e a! a ceraic anu+acturing *lant an( :a! agree( e*re!!ly toe Eco-eten!ive :ith the lea!e o+ L/44// :ith L/44=R on the 2.&$ hectare-lot.E2


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=n 31 %uly 17" the *artie! !igne( a !iilar contract concerning a !i >&?-unit *re-+aricate(!teel :arehou!e :hich, a! agree( u*on y the *artie!, :oul( e*ire on 2 )eceer178.3 Prior to the e*iration o+ the a+oreentione( contract, F5R/49=N/ :rote N)Creue!ting +or an eten!ion o+ their lea!e agreeent. Con!euently on 2 Noveer 178 the0oar( o+ )irector! o+ N)C a(o*te( Re!olution No. 11-78-117 eten(ing the ter o+ the lea!e,!uect to !everal con(ition! aong :hich :a! that in the event N)C E:ith the a**roval o+

higher authoritie!, (eci(e to (i!*o!e an( !ell the!e *ro*ertie! inclu!ing te lot, priority soul!be given to te L/''// E" >un!erscoring supplie! ?. =n 22 )eceer 178, in *ur!uance o+ there!olution, the *artie! entere( into a ne: agreeent +or a ten-year lea!e o+ the *ro*erty,rene:ale +or another ten >1$? year!, e*re!!ly granting F5R/49=N/ the +ir!t o*tion to*urcha!e the lea!e( *rei!e! in the event that it (eci(e( Eto (i!*o!e an( !ell the!e *ro*ertie!inclu(ing the lot . . . . E#

9he contract! o+ lea!e con!*icuou!ly contain an i(entically :or(e( *rovi!ion reuiringF5R/49=N/ to con!truct uil(ing! an( other i*roveent! :ithin the lea!e( *rei!e! :orth!everal hun(re( thou!an(! o+ *e!o!.&

9he *artie!@ le!!or-le!!ee relation!hi* :ent !oothly until early 188 :hen F5R/49=N/,

cogniant o+ the i*en(ing e*iration o+ their lea!e agreeent :ith N)C, in+ore( the latterthrough !everal letter! an( tele*hone call! that it :a! rene:ing it! lea!e over the *ro*erty.Bhile it! letter o+ 17 arch 188 :a! an!:ere( y Antonio A. en!on, General anager o+N)C, :ho *roi!e( ie(iate action on the atter, the re!t o+ it! counication! reaine(unac6no:le(ge(.7 F5R/49=N/@! *re(icaent :or!ene( :hen ruor! o+ N)C@! !u**o!e(*lan! to (i!*o!e o+ the !uect *ro*erty in +avor o+ *etitioner Polytechnic niver!ity o+ thePhili**ine! >PP? cae to it! 6no:le(ge. Forth:ith, F5R/49=N/ !erve( notice on N)Cconveying it! (e!ire to *urcha!e the *ro*erty in the eerci!e o+ it! contractual right o+ +ir!tre+u!al.

A**rehen!ive that it! intere!t in the *ro*erty :oul( e (i!regar(e(, F5R/49=N/ in!titute( anaction +or !*eci+ic *er+orance to co*el N)C to !ell the lea!e( *ro*erty in it! +avor.

F5R/49=N/ averre( that it :a! *re-e*ting the i*en(ing !ale o+ the N)C co*oun( to*etitioner PP in violation o+ it! lea!ehol( right! over the 2.&$-hectare8 *ro*erty an( the:arehou!e! thereon :hich :oul( e*ire in 1. F5R/49=N/ li6e:i!e *raye( +or the i!!uanceo+ a :rit o+ *reliinary inunction to enoin N)C +ro (i!*o!ing o+ the *ro*erty *en(ing the!ettleent o+ the controver!y.

5n !u**ort o+ it! co*laint, F5R/49=N/ a((uce( in evi(ence a letter o+ Antonio A. en!on(ate( 1# %uly 188 a((re!!e( to r. %a6e C. Lagonera, )irector an( 4*ecial A!!i!tant to/ecutive 4ecretary Catalino acaraeg, revie:ing a *ro*o!e( eoran(u or(er !uitte( tothen Pre!i(ent Coraon C. Auino tran!+erring the :hole N)C co*oun(, inclu(ing the lea!e(*ro*erty, in +avor o+ *etitioner PP. Attache( to the letter :a! a (ra+t o+ the *ro*o!e(eoran(u or(er a! :ell a! a !uary o+ ei!ting lea!e! on the !uect *ro*erty. 9he !urveyli!te( F5R/49=N/ a! le!!ee o+ a *ortion o+ the *ro*erty, *lace( at 2,$$$1$ !uare eter!,:ho!e contract :ith N)C :a! !et to e*ire on 31 )eceer 1811 rene:ale +or another ten>1$? year! at the o*tion o+ the le!!ee. )e report e-pressly recognize! 012/')ON/3s rigt o%%irst re%usal to purcase te lease! property 4soul! te lessor !eci!e to sell te same .E12

ean:hile, on 21 Feruary 18 PP ove( to intervene an( a!!erte( it! intere!t in the!uect *ro*erty, arguing that a E*urcha!er pen!ente lite o+ *ro*erty :hich i! !uect o+ alitigation i! entitle( to intervene in the *rocee(ing!.E13 PP re+erre( to $emoran!um Or!er No.


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567 i!!ue( y then Pre!i(ent Auino or(ering the tran!+er o+ the :hole N)C co*oun( to theNational Governent, :hich in turn :oul( convey the a+oreentione( *ro*erty in +avor o+ PPat acui!ition co!t. 9he i!!uance :a! !u**o!e(ly a(e in recognition o+ PP@! !tatu! a! theEPoor an@! niver!ityE a! :ell a! it! !eriou! nee( to eten( it! ca*u! in or(er toaccoo(ate the gro:ing !tu(ent *o*ulation. 9he or(er o+ conveyance o+ the 1$.31-hectare*ro*erty :oul( autoatically re!ult in the cancellation o+ N)C@! total oligation in +avor o+ the

National Governent in the aount o+ P#7,13,2$1.&".

Convince( that PP :a! a nece!!ary *arty to the controver!y that ought to e oine( a! *arty(e+en(ant in or(er to avoi( ulti*licity o+ !uit!, the trial court grante( PP@! otion to intervene.F5R/49=N/ ove( +or recon!i(eration ut :a! (enie(. =n certiorari, the Court o+ A**eal!a++ire( the or(er o+ the trial court. F5R/49=N/ cae to u! on revie: ut in a Re!olution (ate(11 %uly 1$ :e u*hel( PP@! inclu!ion a! *arty-(e+en(ant in the *re!ent controver!y.

Follo:ing the (enial o+ it! *etition, F5R/49=N/ aen(e( it! co*laint to inclu(e PP an(/ecutive 4ecretary Catalino acaraeg, %r., a! *arty-(e+en(ant!, an( !ought the annulento+ $emoran!um Or!er No. 567. F5R/49=N/ allege( that although $emoran!um Or!er No.567 :a! i!!ue( E!uect to !uch lien!Ilea!e! ei!ting on the !uect *ro*ertyO,E PP

(i!regar(e( an( violate( it! ei!ting lea!e y increa!ing the rental rate atP2$$,$$$.$$ a onth:hile (ean(ing that it vacate( the *rei!e! ie(iately.1" F5R/49=N/ *raye( that in theevent $emoran!um Or!er No. 567 :a! not (eclare( uncon!titutional, the *ro*erty !houl( e!ol( in it! +avor at the *rice +or :hich it :a! !ol( to PP - P##".7" *er !uare eter or +or atotal *urcha!e *rice o+P1","23,2"$.$$.1#

Petitioner PP, in it! an!:er to the aen(e( co*laint, argue( in e!!ence that the lea!econtract covering the *ro*erty ha( e*ire( long e+ore the in!titution o+ the co*laint, an( that+urther, the right o+ +ir!t re+u!al invo6e( y F5R/49=N/ a**lie( !olely to the !i-unit *re-+aricate( :arehou!e an( not the lot u*on :hich it !too(.

A+ter trial on the erit!, u(gent :a! ren(ere( (eclaring the contract! o+ lea!e eecute(et:een F5R/49=N/ an( N)C covering the 2.&$-hectare *ro*erty an( the :arehou!e!con!tructe( thereon vali( an( ei!ting until 2 %une 1. PP :a! or(ere( an( (irecte( to !ellto F5R/49=N/ the E2.& hectare lea!e( *rei!e! or a! ay e (eterine( y actual veri+icationan( !urvey o+ the actual !ie o+ the lea!e( *ro*ertie! :here *lainti++@! +ire ric6 +actory i!locate(E at P1,#$$.$$ *er !uare eter con!i(ering that, a! a(itte( y F5R/49=N/, !uch :a!the *revailing ar6et *rice thereo+.

9he trial court rule( that the contract! o+ lea!e eecute( et:een F5R/49=N/ an( N)C :ereinterrelate( an( in!e*arale ecau!e Eeach o+ the +or! *art o+ the integral !y!te o+*lainti++@! ric6 anu+acturing *lant i+ one o+ the lea!e( *rei!e! :ill e ta6en a*art orother:i!e (etache( +ro the t:o other!, the *ur*o!e o+ the lea!e a! :ell a! *lainti++@! u!ine!!o*eration! :oul( e ren(ere( u!ele!! an( ino*erative.E1& 5t thu! (ecree( that F5R/49=N/coul( eerci!e it! o*tion to *urcha!e the *ro*erty until 2 %une 1 ina!uch a! the 22)eceer 178 contract embo!ie! a covenant to rene te lease %or anoter ten 869: years atte option o% te lessee as ell as an agreement giving te lessee te rigt o% %irst re%usal .

9he trial court al!o !u!taine( the con!titutionality o+ $emoran!um Or!er No. 567 :hich :a!not per se ho!tile to F5R/49=N/@! *ro*erty right!, ut (e*lore( a! *reu(icial thereto the Everyanner :ith :hich (e+en(ant! N)C an( PP inter*rete( an( a**lie( the !ae, ignoring in the*roce!! that *lainti++ ha! ei!ting contract! o+ lea!e *rotectale y e*re!! *rovi!ion! in the


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eoran(u No. 21" it!el+.E17 5t +urther e*laine( that the ue!tione( eoran(u :a!i!!ue( E!uect to !uch lien!Ilea!e! ei!ting thereonE18 an( *etitioner PP :a! un(er e*re!!in!truction! Eto enter, occu*y an( ta6e *o!!e!!ion o+ the tran!+erre( *ro*erty sub#ect to sucleases or liens an! encumbrances tat may be e-isting tereonE1 8italics supplie!:.

Petitioner! PP, N)C an( the /ecutive 4ecretary !e*arately +ile( their Notice o% Appeal , ut a

+e: (ay! therea+ter, or on 3 4e*teer 1&, *erha*! realiing the groun(le!!ne!! an( the+utility o+ it all, the /ecutive 4ecretary :ith(re: hi! a**eal.2$

4u!euently, the Court o+ A**eal! a++ire( the (eci!ion o+ the trial court or(ering the !ale o+the *ro*erty in +avor o+ F5R/49=N/ ut (elete( the a:ar( o+ attorney@! +ee! in the aount o+9hree un(re( 9hou!an( Pe!o! >P3$$,$$$.$$?. Accor(ingly, F5R/49=N/ :a! given a grace*erio( o+ !i >&? onth! +ro +inality o+ the court@! u(gent :ithin :hich to *urcha!e the*ro*erty in ue!tione( in the eerci!e o+ it! right o+ +ir!t re+u!al. 9he Court o+ A**eal! o!erve(that a! there :a! a !ale o+ the !uect *ro*erty, N)C coul( not ecu!e it!el+ +ro it! oligation9= =FF/R 9/ PR=P/R9; F=R 4AL/ F5R49 9= F5R/49=N/ 0/F=R/ 59 C=L) 9==9/R PAR95/4. 9he Court o+ A**eal! hel( EN)C cannot loo6 to $emoran!um Or!er No.567 to ecu!e or !hiel( it +ro it! contractual oligation! to F5R/49=N/. 9here i! nothing

therein that allo:! N)C to (i!avo: or re*u(iate the !olen engageent that it +reely an(voluntarily un(ertoo6, or agree( to un(erta6e.E21

PP ove( +or recon!i(eration a!!erting that in or(ering the !ale o+ the *ro*erty in +avor o+F5R/49=N/ the court! a quo un+airly create( a contract to !ell et:een the *artie!. 5t argue(that the Ecourt cannot !u!titute or (ecree it! in( or con!ent +or that o+ the *artie! in(eterining :hether or not a contract >ha! een? *er+ecte( et:een PP an( N)C.E22 PP+urther conten(e( that !ince Ea real *ro*erty locate( in 4ta. e!a can rea(ily coan( a !uo+ P1$,$$$.$$ *er !uare >eter?,E the lo:er court gravely erre( in or(ering the !ale o+ the*ro*erty at only P1,#$$.$$ *er !uare eter. PP al!o a(vance( the theory that the enactento+ $emoran!um Or!er No. 567 aounte( to a :ith(ra:al o+ the o*tion to *urcha!e the *ro*ertygrante( to F5R/49=N/. N)C, +or it! *art, vigorou!ly conten(e( that the contract! o+ lea!e

eecute( et:een the *artie! ha( e*ire( :ithout eing rene:e( y F5R/49=N/Dcon!euently, F5R/49=N/ :a! no longer entitle( to any *re+erential right in the !ale or(i!*o!ition o+ the lea!e( *ro*erty.

Be (o not !ee it the :ay PP an( N)C (i(. 5t i! eleentary that a *arty to a contract cannotunilaterally :ith(ra: a right o+ +ir!t re+u!al that !tan(! u*on valuale con!i(eration. 9hat*rinci*le :a! clearly u*hel( y the Court o+ A**eal! :hen it (enie( on & %une 2$$$ the t:inotion! +or recon!i(eration +ile( y PP an( N)C on the groun( that the a**ellant! +aile( toa(vance ne: arguent! !u!tantial enough to :arrant a rever!al o+ the )eci!ion !ought to erecon!i(ere(.23 =n 28 %une 2$$$ PP +ile( an urgent otion +or an a((itional *erio( o+ +i+teen>1#? (ay! +ro 2 %une 2$$$ or until 1" %uly 2$$$ :ithin :hich to +ile a "etition %or 2evie onCertiorari o+ the Decisiono+ the Court o+ A**eal!.

=n the la!t (ay o+ the eten(e( *erio( PP +ile( it! "etition %or 2evie on Certiorari a!!ailingthe Decision o+ the Court o+ A**eal! o+ & )eceer 1 a! :ell a! the 2esolution o+ & %une2$$$ (enying recon!i(eration thereo+. PP rai!e( t:o i!!ue! >a? :hether the court! aquo erre( :hen they Econecture(E that the tran!+er o+ the lea!e( *ro*erty +ro N)C to PPaounte( to a !aleD an(, >? :hether F5R/49=N/ can right+ully invo6e it! right o+ +ir!t re+u!al.Petitioner *o!ite( that i+ :e :ere to *lace our imprimatur on the (eci!ion! o+ the court! a quo,


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E*ulic :el+are or !*eci+ically the con!titutional *riority accor(e( to e(ucationE :oul( greatly e*reu(ice(.2"

Para(oically, our *araount intere!t in e(ucation (oe! not licen!e u!, or any *arty +or thatatter, to (e!troy the !anctity o+ in(ing oligation!. /(ucation ay e *rioritie( +or legi!lativeor u(getary *ur*o!e!, ut :e (out i+ !uch i*ortance can e u!e( to con+i!cate *rivate

*ro*erty !uch a! F5R/49=N/@! right o+ +ir!t re+u!al.

=n 17 %uly 2$$$ :e (enie( PP@! otion +or eten!ion o+ +i+teen >1#? (ay! :ithin :hich toa**eal ina!uch a! the a+ore!ai( *lea(ing lac6e( an a++i(avit o+ !ervice o+ co*ie! thereo+ onthe Court o+ A**eal! an( the a(ver!e *arty, a! :ell a! :ritten e*lanation +or not +iling an(!erving the *lea(ing *er!onally.2#

Accor(ingly, on 2& %uly 2$$$ :e i!!ue( a 2esolution (i!i!!ing PP@! "etition %or 2evie +orhaving een +ile( out o+ tie. PP ove( +or recon!i(eration i*loring a re!olution or (eci!ionon the erit! o+ it! *etition. 4trangely, aout the !ae tie, !everal article! cae out in thene:!*a*er! a!!ailing the (enial o+ the *etition. 9he (aily *a*er! re*orte( that :e unrea!onaly(i!i!!e( PP@! *etition on technical groun(!, a++iring in the *roce!! the (eci!ion o+ the trialcourt to !ell the (i!*ute( *ro*erty to the *reu(ice o+ the governent in the aounto+ P1,$$$,$$$,$$$.$$.2& Coun!el +or *etitioner PP, allege( that the trial court an( the Court o+

A**eal! Ehave (eci(e( a ue!tion o+ !u!tance in a :ay (e+initely not in accor( :ith la: or uri!*ru(ence.E27

At the out!et, let it e note( that the aount o+ P1,$$$,$$$,$$$.$$ a! re*orte( in the *a*er!:a! :ay too eaggerate(, i+ not +anta!tic. Be !tre!! that N)C it!el+ !ol( the :hole 1$.31-hectare *ro*erty to PP at onlyP#7,13,2$1.&" :hich re*re!ent! N)C@! oligation to thenational governent that :a!, in echange, :ritten o++. 9he *rice o++ere( *er !uare eter o+the *ro*erty :a! *egge( at P##".7". F5R/49=N/@! lea!e( *rei!e! :oul( there+ore e :orthonly P1","23,2"$.$$. Fro any angle, thi! aount i! certainly +ar elo: the allyhooe( *riceo+ P1,$$$,$$$,$$$.$$.

=n " =ctoer 2$$$ :e grante( PP@! $otion %or 2econsi!eration to give it a chance to ventilateit! right, i+ any it !till ha( in the lea!e( *rei!e!, therey *aving the :ay +or a rein!tateent o+it! "etition %or 2evie .28 5n it! a**eal, PP too6 to ta!6 the court! a quo +or !u**o!e(lyE!u!tituting or (ecreeing it! in( or con!ent +or that o+ the *artie! >re+erring to N)C an( PP?in (eterining :hether or not a contract o+ !ale :a! *er+ecte(.E PP al!o argue( that ina!ucha! Eit i! the *artie! alone :ho!e in(! u!t eet in re+erence to the !uect atter an( cau!e,Eit conclu(e( that it :a! error +or the lo:er court! to have (ecree( the ei!tence o+ a !ale o+ theN)C co*oun( thu! allo:ing F5R/49=N/ to eerci!e it! right o+ +ir!t re+u!al.

=n the other han(, N)C !e*arately +ile( it! o:n "etition %or 2evie an( a(vance( arguent!

:hich, in +ine, centere( on :hether or not the tran!action et:een *etitioner! N)C an( PPaounte( to a !ale con!i(ering that Eo:ner!hi* o+ the *ro*erty reaine( :ith

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