12. Reyes-Mesugas vs.

Reyes of the probate court; A notice of lis pendens may be cancelled when the
annotation is not necessary to protect the title of the party who caused it to
G.R. No. 174835. March 22, 2010.* be recorded.—A notice of lis pendens may be cancelled when the annotation
ANITA REYES-MESUGAS, petitioner, vs. ALEJANDRO AQUINO REYES, is not necessary to protect the title of the party who caused it to be recorded.
respondent. The compromise agreement did not mention the grant of a right of way to
Judgments; Compromise Agreements; When both parties enter into an respondent. Any agreement other than the judicially approved compromise
agreement to end a pending litigation and request that a decision be agreement between the parties was outside the limited jurisdiction of the
rendered approving said agreement, such action constitutes an implied probate court. Thus, any other agreement entered into by the petitioner and
waiver of the right to appeal against the said decision.—A compromise is a respondent with regard to a grant of a right of way was not within the
contract whereby the parties, by making reciprocal concessions, avoid jurisdiction of the RTC acting as a probate court. Therefore, there was no
litigation or put an end to one already commenced. Once submitted to the reason for the RTC not to cancel the notice of lis pendens on TCT No. 24475
court and stamped with judicial approval, it becomes more than a mere as respondent had no right which needed to be protected. Any alleged right
private contract binding upon the parties; having the sanction of the court and arising from the “side agreement” on the right of way can be fully protected
entered as its determination of the controversy, it has the force and effect of by filing an ordinary action for specific performance in a court of general
any judgment. Consequently, a judgment rendered in accordance with a jurisdiction.
compromise agreement is immediately executory as there is no appeal from Same; Same; When the court’s judgment on the settlement of estate
such judgment. When both parties enter into an agreement to end a pending decision was recorded in the Registry of Deeds pursuant to Section 4, Rule
litigation and request that a decision be rendered approving said agreement, 90 of the Rules of Court, the notice of lis pendens inscribed on the affected
such action constitutes an implied waiver of the right to appeal against the property was deemed cancelled by virtue of Section 77 of Presidential
said decision. Decree No. 1529.—In line with the recording of the order for the partition of
Probate Courts; Jurisdiction; Settled is the rule that a probate court is a the estate, paragraph 2, Section 77 of Presidential Decree (PD) No. 1529
tribunal of limited jurisdiction—it acts on matters pertaining to the estate but provides: Section 77. Cancellation of Lis Pendens—xxx xxx xxx xxx 
never on the rights to property arising from the xxx At any
347
_______________ VOL. 616, MARCH 22, 2010 347
Reyes-Mesugas vs. Reyes
* THIRD DIVISION.
time after final judgment in favor of the defendant, or other
346
disposition of the action such as to terminate finally all rights of the
346 SUPREME COURT REPORTS ANNOTATED plaintiff in and to the land and/or buildings involved, in any case in which
Reyes-Mesugas vs. Reyes a memorandum or notice of lis pendens has been registered as provided in
contract, and approves contracts entered into for and on behalf of the the preceding section, the notice of lis pendens shall be deemed
estate or the heirs to it but this is by fiat of the Rules of Court. —In this cancelled upon the registration of a certificate of the clerk of court in which
instance, the case filed with the RTC was a special proceeding for the the action or proceeding was pending stating the manner of disposal thereof.
settlement of the estate of Lourdes. The RTC therefore took cognizance of Thus, when the September 13, 2000 decision was recorded in the Registry of
the case as a probate court. Settled is the rule that a probate court is a Deeds of Rizal pursuant to Section 4, Rule 90 of the Rules of Court, the
tribunal of limited jurisdiction. It acts on matters pertaining to the estate but notice of lis pendens inscribed on TCT No. 24475 was deemed cancelled by
never on the rights to property arising from the contract. It approves contracts virtue of Section 77 of PD No. 1529.
entered into for and on behalf of the estate or the heirs to it but this is by fiat PETITION for review on certiorari of the orders of the Regional Trial Court of
of the Rules of Court. It is apparent therefore that when the RTC approved Makati City, Br. 62.
the compromise agreement on September 13, 2000, the settlement of the   The facts are stated in the opinion of the Court.
estate proceeding came to an end.   Henedino M. Brondial for petitioner.
Same; Lis Pendens; Any agreement other than the judicially approved   Orlando C. Catral for respondent.
compromise agreement between the parties is outside the limited jurisdiction CORONA, J.:

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 This is a petition for review on certiorari1 seeking to reverse the June 23, judgment in the settlement of the estate. Petitioner argued that the settlement
2006 and September 21, 2006 orders 2 of the Regional Trial Court of Makati of the estate proceeding had terminated; hence, the annotation of lis
(RTC), Branch 62 denying the petitioner’s motion to cancel a notice of lis pendens could already be cancelled since it had served its purpose.
pendens. Respondent opposed the motion and claimed that the parties, in addition
Petitioner Anita Reyes-Mesugas and respondent Alejandro A. Reyes are to the compromise agreement, executed “side
the children of Lourdes Aquino Reyes and Pedro N. Reyes. Lourdes died
intestate, leaving to her heirs, among others, three parcels of land, including _______________
a lot covered by Transfer Certificate of Title (TCT) No. 24475.
On February 3, 2000, respondent filed a petition for settlement of the 4 Dated August 30, 2000. Id., at pp. 50-56.
estate of Lourdes,3 praying for his appointment as administrator due to 5 Penned by Judge Roberto C. Diokno. Id., at pp. 57-62.
alleged irregularities and fraudulent 6 Two hundred nine (209) sq. m. situated in Makati.
349
_______________ VOL. 616, MARCH 22, 2010 349

1 Under Rule 45 of the Rules of Court. Reyes-Mesugas vs. Reyes

2 Penned by Judge Selma Palacio Alaras. Rollo, pp. 25-26. agreements” which had yet to be fulfilled. One such agreement was executed
3 Docketed as SP No. M-4984. between petitioner7 and respondent granting respondent a one-meter right of
348 way on the lot covered by TCT No. 24475. However, petitioner refused to
give the right of way and threatened to build a concrete structure to prevent
348 SUPREME COURT REPORTS ANNOTATED access. He argued that, unless petitioner permitted the inscription of the right
Reyes-Mesugas vs. Reyes of way on the certificate of title pursuant to their agreement, the notice of lis
transactions by the other heirs. Petitioner, her father Pedro and Arturo, a pendens in TCT No. 24475 must remain.
sibling of the petitioner, opposed the petition. In its order8 dated January 26, 2006, the RTC denied the motion to cancel
On August 30, 2000, a compromise agreement4 was entered into by the the notice of lis pendens annotation for lack of sufficient merit. It found that
parties whereby the estate of Lourdes was partitioned. A decision 5 dated the cancellation of the notice of lis pendens was unnecessary as there were
September 13, 2000 was rendered by the RTC pursuant to the said reasons for maintaining it in view of petitioner’s non-compliance with the
compromise agreement. The compromise agreement with respect to TCT alleged right of way agreement between the parties. It stated that:
No. 24475 is reproduced below: “A careful perusal of the compromise agreement dated September 13,
5. That the parties hereto hereby agree to recognize, acknowledge and 2000 revealed that one of the properties mentioned is a parcel of land with
respect: improvements consisting [of] two hundred nine (209) square meters situated
5.1. the improvements found on the parcel of land covered under TCT in Makati covered under TCT No. 24475 of the Registry of Deeds [of] Rizal in
No. 24475 of the Registry of Deeds of Rizal consisting of two lots the name of Pedro N. Reyes married to Lourdes Aquino Reyes and form[s]
namely Lot 4-A and Lot 4-B of the new survey with two (2) residential part of the notarized right of way agreement on TCT No. 24475, considering
houses presently occupied and possessed as owners thereof by that the movant Anita Reyes is still bound by the right of way agreement, the
Antonio Reyes and Anita Reyes-Mesugas to constitute part of their same should be complied with before the cancellation of the subject
shares in the estate of Lourdes Aquino Reyes; annotation.”9 (Citations omitted)
5.2 further, the improvement consisting of a bakery-store under lease to Petitioner filed a notice of appeal. 10 Because the denial of a motion to
a third party. The proceeds thereof shall be shared by Antonio Reyes cancel the notice of lis pendens annotation was an interlocutory order, the
and Pedro N. Reyes; RTC denied the notice of appeal as it could not be appealed until the
5.3 that the expenses for the partition and titling of the property between judgment on the main case
Antonio Reyes and Anita Reyes-Mesugas shall be equally shared by
them.” _______________
On December 7, 2004, petitioner filed a motion to cancel lis
pendens annotation for TCT No. 244756 in the RTC in view of the finality of 7  With sibling Antonio.

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 8  Id., at. pp. 27-28. Court.18 It is apparent therefore that when the RTC approved the compromise
9  Id., at p. 27. agreement on September 13, 2000, the settlement of the estate proceeding
10 Dated March 9, 2006. Id., at p. 29. came to an end.
350 Moreover, a notice of lis pendens may be cancelled when the annotation
350 SUPREME COURT REPORTS ANNOTATED is not necessary to protect the title of the party who caused it to be
recorded.19 The compromise agreement did not mention the grant of a right
Reyes-Mesugas vs. Reyes of way to respondent. Any agreement other than the judicially approved
was rendered.11 A motion for reconsideration was filed by petitioner but the compromise agreement between the parties was outside the limited
same was also denied.12 jurisdiction of the probate court. Thus, any other agreement entered into by
Hence, this petition. the petitioner and respondent with regard to a grant of a right of way was not
We find for petitioner. within the jurisdiction of the RTC acting as a probate court. Therefore, there
A compromise is a contract whereby the parties, by making reciprocal was no reason for the RTC not to cancel the notice of lis pendens on TCT
concessions, avoid litigation or put an end to one already No. 24475 as respondent had no right which needed to be protected. Any
commenced.13 Once submitted to the court and stamped with judicial alleged right arising from the “side agreement” on the right of way can be fully
approval, it becomes more than a mere private contract binding upon the protected by filing an ordinary action for specific performance in a court of
parties; having the sanction of the court and entered as its determination of general jurisdiction.
the controversy, it has the force and effect of any judgment. 14 More importantly, the order of the probate court approving the
Consequently, a judgment rendered in accordance with a compromise compromise had the effect of directing the delivery of the residue of the
agreement is immediately executory as there is no appeal from such estate of Lourdes to the persons entitled thereto under the compromise
judgment.15 When both parties enter into an agreement to end a pending agreement. As such, it brought to a close the intestate proceedings 20 and the
litigation and request that a decision be rendered approving said agreement, probate court lost jurisdiction over the case, except only as regards to the
such action constitutes an implied waiver of the right to appeal against the compliance and the fulfillment by the parties of their respective obligations
said decision.16 under the compromise agreement.
In this instance, the case filed with the RTC was a special proceeding for Having established that the proceedings for the settlement of the estate
the settlement of the estate of Lourdes. The RTC therefore took cognizance of Lourdes came to an end upon the RTC’s prom-
of the case as a probate court.
Settled is the rule that a probate court is a tribunal of limited jurisdiction. It _______________
acts on matters pertaining to the estate but never on the rights to property
arising from the contract.17 It approves contracts entered into for and on
18 Rule 89 of the RULES OF COURT. See also Article 2032, New Civil
behalf of the estate or the heirs to it but this is by fiat of the Rules of
Code.
19 Section 14, Rule 13 of the RULES OF COURT.
_______________ 20 Santiesteban v. Santiesteban, 68 Phil. 367 (1939); Philippine
Commercial and Industrial Bank v. Escolin, G.R. No. L-27860, 29 March
11 Order dated July 26, 2006. Id., at p. 25. 1974, 50 SCRA 266.
12 Order dated September 21, 2006. Id., at p. 26. 352
13 Article 2028, NEW CIVIL CODE.
14 Domingo v. Court of Appeals, 325 Phil. 469; 255 SCRA 189 (1996). 352 SUPREME COURT REPORTS ANNOTATED
15 Id. Reyes-Mesugas vs. Reyes
16 Id. ulgation of a decision based on the compromise agreement, Section 4, Rule
17 Pio Baretto Realty Dev., Inc. v. Court of Appeals, No. L-62432, 3 90 of the Rules of Court provides:
August 1984, 131 SCRA 606. “Sec. 4. Recording the order of partition of estate.—Certified copies of
351 final orders and judgments of the court relating to the real estate or the
VOL. 616, MARCH 22, 2010 351 partition thereof shall be recorded in the registry of deeds of the province
where the property is situated.
Reyes-Mesugas vs. Reyes
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 In line with the recording of the order for the partition of the estate,
paragraph 2, Section 77 of Presidential Decree (PD) No. 1529 21 provides:
Section 77. Cancellation of Lis Pendens.—xxx xxx xxx
xxx xxx
At any time after final judgment in favor of the defendant, or other
disposition of the action such as to terminate finally all rights of the
plaintiff in and to the land and/or buildings involved, in any case in which
a memorandum or notice of lis  pendens has been registered as provided in
the preceding section, the notice of lis pendens shall be deemed
cancelled upon the registration of a certificate of the clerk of court in which
the action or proceeding was pending stating the manner of disposal thereof.”
(emphasis supplied)
Thus, when the September 13, 2000 decision was recorded in the
Registry of Deeds of Rizal pursuant to Section 4, Rule 90 of the Rules of
Court, the notice of lis pendens inscribed on TCT No. 24475 was deemed
cancelled by virtue of Section 77 of PD No. 1529.
WHEREFORE, the petition is hereby GRANTED. The Orders of the
Regional Trial Court of Makati, Branch 62 dated June 23, 2006 and
September 21, 2006 are SET ASIDE. The notice of lis pendens annotated on
TCT No. 24475 is hereby declared CANCELLED pursuant to Section 77 of
the PD No. 1529 in relation to Section 4, Rule 90 of the Rules of Court.

_______________

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