Arangco v. Baloso
REITERATIONFacts
The Antecedents: Vicente Abaño mortgaged a parcel of land acquired during his marriage to Soledad Arangco to the defendant Gloria Baloso. The mortgage consideration was successively increased from P960.00 to P1,200.00, and later to P1,800.00 through various transactions involving Vicente and, subsequently, Laurente Abaño with the conformity of Leonor Abaño. Vicente had children with Soledad, and also with Anacorita Andes. Soledad was confined in a mental hospital. The widow and children of Vicente filed an action to redeem the land, depositing P1,800.00 with the Clerk of Court. The defendant claimed the redemption amount should be P2,600.00, citing additional sums advanced to Vicente and other family members, including minors. The lower court found that P800.00 of these additional sums were received by Leonor, Jorge, Fatima, and Gracita. However, considering that Leonor was not yet appointed guardian at the time and Jorge, Fatima, and Gracita were minors, the court could not compel them to pay in the redemption proceedings. The court suggested prosecuting the claim for P700.00 (after deducting P100.00 ordered paid by Leonor) in the guardianship proceedings. Procedural History: The lower court ordered the redemption of the land upon deposit of P1,800.00 and ordered Leonor Abaño to pay P100.00, leaving P700.00 to be sought in guardianship proceedings. The defendant appealed. The Petition: The defendant appealed the decision, assigning two errors: (1) that the lower court erred in holding that appellees Jorge, Fatima, and Gracita Abaño could not be held liable for the P700.00, and (2) that there was a contemplated fixed period during which plaintiffs could not redeem the property.
Issue(s)
Whether the lower court erred in not holding the minor appellees liable for the additional sums advanced by the defendant in the redemption proceedings. Whether the issue of a fixed period for redemption was properly raised and can be considered on appeal.
Ruling
The Supreme Court affirmed the decision of the lower court. The appeal was dismissed for lack of merit.
Ratio Decidendi
On Issue 1: The Supreme Court reiterated the well-settled doctrine that an action to foreclose a mortgage must be limited to the amount mentioned in the mortgage, and that recovery of amounts not covered by the mortgage deed cannot be compelled in a suit for redemption. The Court clarified that the lower court did not absolve the minors from liability but correctly ruled that their liability for the additional P800.00 could not be ordered in the present redemption proceedings due to their minority and the lack of specific provisions in the mortgage deed covering these advancements. The Court emphasized that such claims should be pursued in separate, appropriate proceedings, such as the guardianship proceedings for the minors. The Court cited Nolan v. Majinay, Luengo v. Moreno, Lim Julian v. Lutero, and Tady-y v. Philippine National Bank to support the principle that mortgage foreclosure actions are limited to the mortgage amount unless future advancements are clearly stipulated within the four corners of the instrument. On Issue 2: The Supreme Court held that the second assigned error, concerning a fixed period for redemption, could not be considered on appeal because it was not raised or ventilated before the lower court. The Court reiterated the principle that appellate tribunals will not consider questions not passed upon by the trial court, citing Tan Machan v. Trinidad and numerous other cases. Furthermore, the Court noted that an appeal directly to the Supreme Court on a question of law waives the right to dispute findings of fact made by the trial court, and the second assigned error essentially involved a factual inquiry into the parties' intent during the mortgage execution.
Main Doctrine
A claim for additional sums advanced, not covered by the mortgage deed, cannot be compelled in a suit for the redemption of the mortgaged property, and such claims must be pursued in separate appropriate proceedings, especially when minors are involved.