Orlina v. Ventura

G.R. No. 227033 · 2018-12-03 · J. PERALTA, J.: · Primary: Civil; Secondary: Remedial, Taxation
REITERATION

Facts

1. The Antecedents: The underlying dispute concerns a parcel of land in Quezon City, registered under Transfer Certificate of Title (TCT) No. 272336 in the name of Cynthia Ventura. Ventura was delinquent in paying real property taxes from 1998 to 2008. Consequently, the City Treasurer of Quezon City issued a warrant of levy, and the property was subsequently sold at a public auction to satisfy the tax delinquency. Reynaldo E. Orlina emerged as the highest bidder, and after the statutory redemption period expired without Ventura redeeming the property, the City Treasurer issued a Final Bill of Sale in Orlina's favor. 2. Procedural History: Following the issuance of the Final Bill of Sale, Orlina filed a petition with the Regional Trial Court (RTC) of Quezon City, Branch 215, seeking the approval of the sale, cancellation of Ventura's TCT No. 272336, and the issuance of a new title in his name. The RTC, after conducting proceedings and finding no opposition, approved the Final Bill of Sale, declared TCT No. 272336 void, and ordered the issuance of a new title to Orlina. Subsequently, a new title, TCT No. 004-2012010324, was issued in Orlina's name, and the RTC granted his motion for a writ of possession. Ventura then filed an omnibus motion seeking reconsideration of the RTC's decision, arguing lack of jurisdiction and due process, which the RTC denied. The Court of Appeals (CA) later annulled and set aside the RTC's decision and subsequent proceedings, finding that Ventura was not properly notified and thus deprived of due process. The CA ordered the cancellation of Orlina's title and the reinstatement of Ventura's title. 3. The Petition: Orlina filed a petition for review on certiorari under Rule 45 of the Rules of Court, seeking to reverse the CA's decision. He argued that the CA erred in allowing Ventura's petition for certiorari as a substitute for a lost appeal, that the RTC had jurisdiction to determine the validity of the tax sale, that Ventura's petition before the CA lacked proper verification and certification of non-forum shopping, that her challenge to his title constituted a collateral attack, and that the RTC had acquired jurisdiction over her person. Orlina contended that notices were sent to Ventura at her last known address and that the posting requirements were met, thereby affording her due process.

Issue(s)

Whether the Court of Appeals erred in allowing the petition for certiorari despite the loss of the remedy of appeal. Whether the Regional Trial Court had jurisdiction to determine the compliance with the tax sale proceedings. Whether the respondent complied with the requirements on verification and certification of non-forum shopping. Whether the petition before the RTC constituted a collateral attack on the certificate of title. Whether the Regional Trial Court acquired jurisdiction over the person of the respondent.

Ruling

The Supreme Court denied the petition, affirmed the Court of Appeals' Decision with modification, and directed the RTC to conduct further proceedings on the Petition for the Approval of the Final Bill of Sale, Cancellation of the Original and Duplicate Copy of TCT No. 272336, and Issuance of a New Certificate of Title.

Ratio Decidendi

On the propriety of certiorari despite loss of appeal: The Court reiterated that while certiorari is generally not a substitute for a lost appeal, exceptions exist, particularly when the judgment is void due to lack of jurisdiction or grave abuse of discretion, violating fundamental rights. The Court cited Montoya v. Varilla and Philippine National Bank v. Spouses Perez where certiorari was allowed despite the availability of appeal or finality of judgment due to violations of due process. In this case, the CA correctly allowed the petition for certiorari because the RTC's proceedings were allegedly conducted without due process, rendering the judgment void. On the RTC's jurisdiction over tax sale proceedings: The Court clarified that while the RTC has jurisdiction over petitions for the approval of a final bill of sale and cancellation of title under P.D. No. 1529, this jurisdiction is not absolute and must still comply with due process requirements. The RTC's jurisdiction to approve the sale does not exempt it from ensuring that all parties, particularly the registered owner, were properly notified of the proceedings. The Court found that the notices allegedly sent to Ventura were either for a separate tax sale proceeding or were sent to inconsistent addresses, failing to establish proper notice for the petition before the RTC. On compliance with verification and certification of non-forum shopping: The Court found that the verification and certification of non-forum shopping signed by Ventura's sons was justifiable, as Ventura was residing in the United States at the time. The Court reiterated that procedural rules are tools to facilitate justice and may be liberally applied for justifiable reasons, especially when substantive rights are at stake. The sons' action did not affect the substantive findings of the case regarding the denial of due process. On collateral attack on the title: The Court distinguished between a direct and a collateral attack. While generally, a title cannot be attacked collaterally, a judgment that is void for lack of due process is an exception. The Court held that a judgment rendered without due process is void ab initio and can be attacked at any time, directly or collaterally, as it is considered a 'lawless thing' that can be ignored. Therefore, the CA's action was not a collateral attack but a necessary correction of a void judgment. On the RTC's acquisition of jurisdiction over Ventura's person: The Court affirmed the CA's finding that the RTC did not acquire jurisdiction over Ventura's person due to lack of notice. The Court found Orlina's claims of sending notices to be doubtful, citing the inconsistent addresses used and the lack of proof of notice for the specific proceeding before the RTC. The Court emphasized that the failure to serve Ventura with a notice of hearing and a copy of the petition violated her right to due process, rendering the RTC's order of general default and subsequent decision void. The Court noted that the proceeding under P.D. No. 1529, though an action in rem, still requires adherence to due process.

Main Doctrine

A judgment rendered without due process is void ab initio and may be attacked at any time, directly or collaterally, as it is considered a 'lawless thing' that can be ignored.

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