Mesina v. Delino
REITERATIONFacts
The Antecedents: Plaintiff Jacinto Mesina filed a foreclosure suit against Petra Delino, administratrix of the intestate estate of the deceased Angel Evangelista. The deceased had mortgaged a parcel of land to secure a P500 debt, payable in monthly installments. The deceased paid P138.60, leaving a balance of P361.40, plus a P100 penalty, totaling P461.40. The defendant administratrix refused to pay. Procedural History: The Court of First Instance of Rizal rendered a decision ordering the defendant to pay P209 within ninety days, and in default thereof, to sell the mortgaged property at public auction. The defendant failed to pay, and the sheriff sold the property to the plaintiff for P240. The plaintiff moved for the approval of the sale, which was initially granted by the court. However, the defendant, through new counsel, filed a motion for reconsideration, arguing the sale was illegal because the property was in custodia legis. The court granted this motion and set aside the order approving the sale. The Petition: The plaintiff appealed the order setting aside the sheriff's sale, arguing that the mortgaged property, even if in custodia legis, could be sold at public auction in satisfaction of the judgment in the foreclosure suit.
Issue(s)
Whether a mortgaged real property, under judicial administration due to the death of the mortgagor, can be sold at public auction by the sheriff in satisfaction of a judgment rendered in a foreclosure suit, despite being in custodia legis. Whether the ruling in Piliin vs. Jocson and Agoncillo is applicable to the present case.
Ruling
The appealed order is reversed, and the order confirming and approving the sheriff's sale is put in full force.
Ratio Decidendi
On whether a mortgaged real property under judicial administration can be sold at public auction: The Court held that the conclusion that the mortgaged property, being in custodia legis, could not be sold at public auction is not countenanced by Section 708 of the Code of Civil Procedure. Section 708 provides three remedies for a creditor holding a claim secured by a mortgage against a deceased debtor: abandon the mortgage and file a claim with the committee, foreclose the mortgage by ordinary action, or rely on the mortgage alone and foreclose within the statute of limitations. In this case, the plaintiff elected to foreclose his mortgage. Pursuant to Section 708, the sale of the mortgaged property upon the defendant's failure to pay the debt within the ninety days granted should be effected under the provisions of Section 257 of the Code of Civil Procedure, which governs sales of real estate under execution. The fact that the property was in custodia legis on the date of the sale does not preclude its sale, as the law allows officers of the court to conduct such sales in the same manner as properties sold in satisfaction of a writ of execution in an ordinary case. The Court clarified that the property was not sold for an insignificant amount, but for P240, which was the assessed value, and the plaintiff also defrayed publication expenses and sheriff's fees. Furthermore, the defendant had the opportunity to offer a better price at the public sale or redeem the property, which she failed to do, nor did she object to the approval of the sale when given the chance. On the applicability of the ruling in Piliin vs. Jocson and Agoncillo: The Court found that the ruling in Piliin vs. Jocson and Agoncillo was erroneously invoked and applied. The cited case involved an ordinary sale made by the sheriff in execution of a judgment rendered in an ordinary case, which is distinct from the situation governed by Section 708 of the Code of Civil Procedure concerning foreclosure of mortgages on properties of a deceased debtor under administration.
Main Doctrine
A mortgaged real property, even if under judicial administration due to the death of the mortgagor, may be sold at public auction by the sheriff in satisfaction of a judgment rendered in a foreclosure suit, provided the sale is conducted in accordance with the rules governing sales of real estate under execution, and the creditor pursues the remedy of foreclosure as allowed by Section 708 of the Code of Civil Procedure.