In a complex property dispute, the Supreme Court clarified the rights and procedures concerning mortgage foreclosures, emphasizing the importance of adhering to legal requirements while protecting the rights of all parties involved. The Court addressed issues such as the validity of extrajudicial foreclosures, the consolidation of cases, and compliance with procedural rules. This ruling provides essential guidance for property owners, mortgagees, and legal professionals navigating the complexities of mortgage disputes and foreclosure proceedings, ensuring that actions are conducted within the bounds of the law.

Navigating Mortgage Disputes: When Technicalities Clash with Property Rights

The case of Josefina F. Ingles vs. Hon. Estrella T. Estrada and Charles J. Esteban involves a dispute over a mortgaged property in Quezon City. The central issue revolves around the validity of the extrajudicial foreclosure initiated by Charles J. Esteban on a property owned by Josefina F. Ingles and her deceased husband, Jose D. Ingles, Sr. Several legal challenges were raised by the Ingleses, including procedural errors in the foreclosure process and questions regarding the jurisdiction of the executive judge who issued the foreclosure orders. The Supreme Court was tasked with resolving these disputes and determining the rightful course of action.

Building on this principle, the Supreme Court addressed the petition for the annulment of final orders. The Ingleses argued that the Court of Appeals should have taken cognizance of their petition, even though the orders were issued by an executive judge in an extrajudicial foreclosure proceeding. However, the Court clarified that proceedings for extrajudicial foreclosure are not civil actions. Therefore, orders issued in such proceedings do not fall under the purview of Rule 47 of the Rules of Court, which governs the annulment of judgments, final orders, and resolutions in civil actions of Regional Trial Courts. According to the court:

x x x issued by the RTC Executive Judge in the exercise of his administrative function to supervise the ministerial duty of the Clerk of Court as Ex Officio Sheriff in the conduct of an extrajudicial foreclosure sale x x x.

Furthermore, the Supreme Court addressed the issue of compliance with procedural requirements in the certiorari petition filed by the Ingleses. While the Court acknowledged that the Court of Appeals erred in dismissing the petition due to a defective verification and certification against forum shopping, it opted to resolve the merits of the case to expedite the proceedings. This decision was based on the principle that substantial compliance with procedural rules may be sufficient when all parties share a common interest and cause of action.

The court emphasized the requirements for verification and certification against forum shopping as highlighted in Altres v. Empleo, providing guiding principles for compliance:

1. A distinction must be made between non-compliance with the requirement on or submission of defective verification, and non-compliance with the requirement on or submission of defective certification against forum shopping.
2. As to verification, non-compliance therewith or a defect therein does not necessarily render the pleading fatally defective. The court may order its submission or correction or act on the pleading if the attending circumstances are such that strict compliance with the Rule may be dispensed with in order that the ends of justice may be served thereby.
3. Verification is deemed substantially complied with when one who has ample knowledge to swear to the truth of the allegations in the complaint or petition signs the verification, and when matters alleged in the petition have been made in good faith or are true and correct.
4. As to certification against forum shopping, non-compliance therewith or a defect therein, unlike in verification, is generally not curable by its subsequent submission or correction thereof, unless there is a need to relax the Rule on the ground of “substantial compliance” or presence of “special circumstances or compelling reasons.”
5. The certification against forum shopping must be signed by all the plaintiffs or petitioners in a case; otherwise, those who did not sign will be dropped as parties to the case. Under reasonable or justifiable circumstances, however, as when all the plaintiffs or petitioners share a common interest and invoke a common cause of action or defense, the signature of only one of them in the certification against forum shopping substantially complies with the Rule.
6. Finally, the certification against forum shopping must be executed by the party-pleader, not by his counsel. If, however, for reasonable or justifiable reasons, the party-pleader is unable to sign, he must execute a Special Power of Attorney designating his counsel of record to sign on his behalf.

Addressing the issue of consolidation, the Supreme Court acknowledged the general rule that a petition for the issuance of a writ of possession may not be consolidated with any other ordinary action. However, it also recognized the exception in Active Wood Products, Co., Inc. vs. Court of Appeals, where consolidation may be allowed when the presumed right of ownership is contested. The Court further clarified that consolidation is not mandatory and rests within the discretion of the trial court, considering the potential for prejudice and delay. The Court stated:

It is true that a petition for a writ of possession is made ex-parte to facilitate proceedings, being founded on a presumed right of ownership. Be that as it may, when this presumed right of ownership is contested and made the basis of another action, then the proceedings for writ of possession would also become seemingly groundless. The entire case must be litigated and if need be as in the case at bar, must be consolidated with a related case so as to thresh out thoroughly all related issues.

Moreover, the Supreme Court emphasized the importance of resolving cases expeditiously and avoiding delays in legal proceedings. It cited Section 15, Article VIII of the 1987 Constitution and Supreme Court Administrative Circular No. 01-28, which mandate trial courts to decide or resolve all cases or matters pending before them within three months from the time they were submitted for decision or resolution. The Court held that no justifiable reason existed for delaying the resolution of the Ingleses’ motions, and it directed the trial court to resolve the pending incidents with dispatch. Therefore, the Court denied the petition.

In summary, the Supreme Court denied all three petitions, affirming the resolutions and decisions of the lower courts. It ordered the deconsolidation of Civil Case No. Q-98-33277 and LRC Case No. Q-10766 (98), directed the resolution of Civil Case No. Q-98-33277 with dispatch, and mandated the issuance of the Writ of Possession in favor of Charles J. Esteban in LRC Case No. Q-10766 (98). Ultimately, the case serves as a reminder of the importance of adhering to procedural rules and respecting the rights of all parties in property disputes, ensuring that legal proceedings are conducted fairly and efficiently.

FAQs

What was the central issue in this case?	The central issue was the validity of the extrajudicial foreclosure initiated by Charles J. Esteban on a property owned by Josefina F. Ingles and her deceased husband, and the procedural challenges raised by the Ingleses.
Can orders in extrajudicial foreclosure proceedings be annulled by the Court of Appeals?	No, the Supreme Court clarified that orders issued in extrajudicial foreclosure proceedings are not considered civil actions and, therefore, cannot be annulled by the Court of Appeals under Rule 47 of the Rules of Court.
What are the requirements for verification and certification against forum shopping?	Verification confirms the truth of the allegations in a pleading, while certification against forum shopping confirms that the party has not filed similar actions. The Supreme Court emphasized that substantial compliance is sufficient when parties share a common interest.
Is consolidation of a petition for writ of possession with another action always mandatory?	No, the Supreme Court clarified that consolidation is not mandatory and rests within the discretion of the trial court, considering potential prejudice and delays.
What is the timeline for resolving cases in trial courts?	The Supreme Court cited mandates trial courts to resolve cases within three months from the time they are submitted for resolution.
What was the final ruling in this case?	The Supreme Court denied all three petitions, affirming the lower courts’ resolutions and decisions. The deconsolidation of Civil Case No. Q-98-33277 and LRC Case No. Q-10766 (98) was ordered, Civil Case No. Q-98-33277 was directed to be resolved with dispatch, and the Writ of Possession was mandated to be issued in favor of Charles J. Esteban in LRC Case No. Q-10766 (98).
Why did the Supreme Court deny consolidation in this case?	The Court found that consolidation would delay proceedings and affect Charles’s substantive right of possession as an incident of ownership, especially since he already had consolidated title over the property.
What practical lesson does this case offer to property owners?	Property owners should be vigilant in exercising their rights, such as the right of redemption, and must comply with procedural rules to protect their interests in foreclosure disputes.

In conclusion, the Supreme Court’s decision in Ingles vs. Estrada provides essential clarity on complex property disputes involving mortgage foreclosures. This ruling reinforces the importance of adhering to procedural rules, respecting the rights of all parties, and ensuring the efficient resolution of legal proceedings, shaping the future of property law in the Philippines.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Josefina F. Ingles, et al. vs. Hon. Estrella T. Estrada, et al., G.R. No. 141809, April 08, 2013