Republic v. Sandiganbayan
REITERATIONFacts
The Antecedents: The Republic of the Philippines, through the Presidential Commission on Good Government (PCGG), filed a Complaint for reversion, reconveyance, restitution, accounting, and damages against Former President Ferdinand E. Marcos and his associates, including his children and sons-in-law, to recover ill-gotten wealth. Respondents Ferdinand "Bongbong" R. Marcos, Jr., Ma. Imelda "Imee" R. Marcos-Manotoc, and Irene R. Marcos Araneta were registered owners of a parcel of land in Cabuyao, Laguna (Cabuyao property), covered by TCT No. T-85026. Procedural History: On June 1, 1994, the PCGG caused the annotation of a notice of lis pendens on the TCT of the Cabuyao property in relation to the Civil Case. Marcos, Jr. filed an Omnibus Motion praying for the cancellation of the notice of lis pendens, arguing the Cabuyao property was not specifically mentioned in the Complaints. The PCGG filed a Fourth Amended Complaint, which included the Cabuyao property in the list of assets. The Sandiganbayan denied the motion to admit the Fourth Amended Complaint for failure to comply with procedural rules and because the case was filed over 11 years ago without reaching pre-trial. Subsequently, the Sandiganbayan, in a Resolution dated January 11, 2010, ordered the cancellation of the notice of lis pendens, holding that the property was not involved in the Civil Case and thus the notice was unnecessary. It also denied the application for a writ of preliminary attachment. The PCGG's Motion for Reconsideration was denied on December 1, 2010. The Petition: The Republic filed a Petition for certiorari assailing the Sandiganbayan's Resolutions cancelling the notice of lis pendens and denying the writ of preliminary attachment. This Court issued a temporary restraining order enjoining the implementation of the assailed Resolutions.
Issue(s)
Whether the Sandiganbayan committed grave abuse of discretion in cancelling the notice of lis pendens over the Cabuyao property. Whether the Sandiganbayan committed grave abuse of discretion in denying the Republic's application for a writ of preliminary attachment.
Ruling
The Petition is GRANTED. The assailed Resolutions dated January 11, 2010 and December 1, 2010, insofar as they direct the cancellation of the notice of lis pendens, are ANNULLED and SET ASIDE. The Register of Deeds of Cabuyao, Laguna is ORDERED to re-annotate the notice of lis pendens on TCT No. T-85026.
Ratio Decidendi
On the cancellation of the notice of lis pendens: The Supreme Court held that the Sandiganbayan erred in cancelling the notice of lis pendens. Rule 13, Section 14 of the Rules of Court provides that a notice of lis pendens may be cancelled only upon a proper showing that it is for the purpose of molesting the adverse party or that it is not necessary to protect the rights of the party who caused it to be recorded. The Sandiganbayan's conclusion that the Cabuyao property was not involved in the Civil Case was based on the belief that failure to specifically mention the property in the amended complaint automatically rendered it beyond the scope of the case. However, Executive Order No. 14, which governs cases involving ill-gotten wealth, explicitly states that technical rules of procedure and evidence shall not be strictly applied. The admitted complaint broadly sought to recover ill-gotten wealth acquired by the Marcoses during their incumbency, and the Cabuyao property was listed as one of the assets in the amended complaint. The Court emphasized that strict adherence to technical rules would hamper the efforts of the PCGG. The denial of the motion to admit the Fourth Amended Complaint was based on patent errors of fact and law, particularly the misinterpretation of the rule on marking amendments and the failure to recognize that the amendment primarily involved Annex A, which did list the Cabuyao property and was properly marked. On the denial of the writ of preliminary attachment: The Supreme Court found that the Sandiganbayan was mistaken in holding that the allegations supporting the writ of attachment were general and devoid of particulars. The allegations in the admitted complaint, detailing Former President Marcos's abuse of power, martial law rule, and systematic plan to accumulate ill-gotten wealth, fall within Rule 57, Section 1(b) and (c) of the Rules of Court. The fact that the Cabuyao property was registered under the names of respondents who were minors at the time of registration was sufficient to allege that the property was concealed, thus satisfying Rule 57, Section 1(c). The Court reiterated that procedural rules should not be applied mechanically but with an appreciation of their purpose and object, especially in cases involving the recovery of ill-gotten wealth. The Sandiganbayan committed grave abuse of discretion in denying the Republic's motion for a writ of preliminary attachment.
Main Doctrine
A notice of lis pendens may be cancelled only upon order of the court, after proper showing that the notice is to molest the adverse party, or that it is not necessary to protect the right of the party who caused it to be recorded. The Sandiganbayan erred in cancelling the notice of lis pendens on the Cabuyao property, as the admitted complaint, despite not specifically mentioning the property, broadly sought to recover ill-gotten wealth acquired during the Marcos regime, and the technical rules of procedure should not strictly apply in cases involving ill-gotten wealth under Executive Order No. 14.