CASE 2013-0030: MODESTO SANCHEZ, PETITIONER, – VERSUS – ANDREW SANCHEZ, (G.R. NO.  187661, 04 DEC 2013, PEREZ, J.) SUBJECT/S: LACHES; PRESCRIPTION; DISMISSAL BASED ON PLEADINGS; WHEN TRIAL IS NECESSARY.  (BRIEF TITLE: SANCHEZ VS. SANCHEZ)

 

DISPOSITIVE:

 

“WHEREFORE,  in  light  of the  foregoing,  we  resolve  to  DENY  the instant  petition.  The  16  July  2008  Decision  of the  Court  of Appeals  is AFFIRMED.  The  case  is  REMANDED  to  the  Regional  Trial  Court  of Manila, Branch 39 for trial  and judgment on the merits.

 

SO ORDERED.”

 

SUBJECTS/DOCTRINES/DIGEST:

 

ANDREW FILED A CASE FOR ANNULMENT OF A DEED OF SALE HE EXECUTED CONVEYING A PARCEL OF LAND TO HIS BROTHER  MODESTO ON GROUND THAT THE PRICE WAS NOT PAID. MODESTO FILED A MOTION TO DISMISS ON GROUND OF LACHES AND PRESCRIPTION. RTC DISMISSED THE CASE ON THE BASIS OF THE PLEADINGS SUBMITTED. CA REVERSED RTC ON GROUND THAT THERE IS NEED FOR TRIAL TO DETERMINE THE FACTS AND ORDERED THAT CASE BE REMANDED TO RTC FOR TRIAL. WAS CA CORRECT?

 

YES.

 

FIRST, WELL SETTLED IS THE RULE THAT THE ELEMENTS OF LACHES MUST BE PROVEN POSITIVELY. 

 

“Laches is evidentiary in nature, a fact that cannot be established by mere allegations in the pleadings and cannot be resolved in a motion to dismiss.  At this stage therefore, the dismissal of the complaint on the ground of laches is premature.  Those issues must be resolved at the trial of  the  case  on  the  merits,  wherein  both  parties  will  be  given  ample opportunity to prove their respective claims and defenses.”

 

SECOND,  THE  AFFIRMATIVE  DEFENSE  OF PRESCRIPTION  DOES  NOT  AUTOMATICALLY  WARRANT  THE  DISMISSAL  OF  A  COMPLAINT UNDER RULE 16 OF THE RULES OF CIVIL PROCEDURE. 

 

“An allegation of prescription can effectively be used in a motion to dismiss only when the complaint on its face shows that indeed the action has already prescribed.  If the issue of prescription is one involving evidentiary matters requiring a full-blown trial on the merits, it cannot be determined in a motion to dismiss.

 

Those issues must be resolved at the trial of the case on the merits wherein both parties will  be  given  ample  opportunity  to  prove  their  respective  claims  and defenses.”

 

THIRD, BOTH  PARTIES DENIED EACH OTHER’S  ALLEGATIONS.  AN OUTRIGHT DISMISSAL OF A CASE IS NOT PROPER WHEN THERE ARE FACTUAL MATTERS IN DISPUTE. 

 

“It  is  then  but  logical  to  review  more  evidence  on disputed matters.   On this score alone, it is apparent that the complaint on its face  does  not  readily  show  that  the  action  has  already  prescribed.    We emphasize once more that a summary or outright dismissal of an action is not  proper  where  there  are  factual  matters  in  dispute,  which  require

presentation and appreciation of evidence.”

 

FOURTH, THE    STATEMENT “transaction did not push through since defendant did not have the financial wherewithal to purchase the subject property” ALLOWS FOR SEVERAL DIFFERENT INTERPRETATIONS.  IN ONE INTERPRETATION, PRESCRIPTION APPLIES. IN ANOTHER INTERPRETATION, IT DOES NOT.


SUPPOSE IT IS TRUE THAT THE CONTRACT PRICE WAS NOT PAID. IS THE ANNULMENT OF THE DEED OF SALE SUBJECT TO PRESCRIPTION?

 

NO BECAUSE THE CONTRACT IS VOID AND CONSEQUENTLY, THE RIGHT TO CHALLENGE SUCH CONTRACT IS IMPRESCRIPTIBLE. 

 

“The ruling of this Court in Montecillo  v. Reynes supports this argument:

  

“Where the deed of sale states that the purchase price has been paid but in fact has never been paid, the deed of sale is null and void ab initio for lack of consideration.”

 

Such  ruling  of  the  Court  would  mean  that  when  the  deed  of  sale declares that the price has been paid, when in fact it has never been paid, that would  be  considered  as  a  “badge  of  simulation”  and  would  render  the contract  void  and  consequently,  the  right  to  challenge  the  same  is imprescriptible.”

 

SUPPOSE WHAT ACTUALLY TRANSPIRED WAS   A  SIMPLE  NON-PAYMENT  OF PURCHASE PRICE WILL THE DEFENSE OF PRESCRIPTION APPLY?

 

YES.

 

THIS WILL NOT INVALIDATE A CONTRACT AND COULD ONLY GIVE RISE TO OTHER LEGAL REMEDIES SUCH AS RESCISSION OR SPECIFIC PERFORMANCE.  IN THIS SCENARIO, THE CONTRACT REMAINS VALID AND THEREFORE SUBJECT TO PRESCRIPTION.  

 

 

TO READ THE DECISION, JUST DOWNLOAD THE FILE BELOW.

SCD-2013-0030-DEC 2013 – SANCHEZ