Siochi, Gozon, Inter-Dimensional Realty, Inc.: Facts

10. SIOCHI vs. GOZON.
docx 1
LTD - Module 7 - by MBC

10. Mario SIOCHI, petitioner,
vs. Alfredo GOZON, Winifred Gozon, Gil Tabije, INTER-DIMENSIONAL REALTY,
INC., and Elvira Gozon, respondents.
G.R. No. 169900, 2010 March 18
FACTS:
On December 23, 1991, Elvira Gozon filed with the Regional Trial Court (RTC) Cavite
a petition for legal separation against her husband Alfredo Gozon. On January 2, 1992,
Elvira filed a notice of lis pendens with annotation on TCT No. 5357.
While the pending case of Legal Separation of both parties, on August 31, 1993,
Alfredo sold their conjugal property to Mario for the price of 18 million pesos. Mario
paid the partial payment and took the possession of the property. An agreement was
annotated in TCT No. 5357.
When the Court approved the legal separation of Elvira and Mario, their property
was dissolved and liquidated. Being the offending spouse, Alfredo was deprived of his
share in the net profits and the same was awarded to their child Winifred R. Gozon
whose custody was awarded to Elvira. On August 22, 1994, Alfredo executed a Deed of
Donation over the property in favor of their daughter Winifred Gozon. The Register of
Deeds of Malabon cancelled TCT No. 5357 and issued TCT No. M-10508 in the name of
Winifred.
On Oct, 26, 1994 Alfredo sold that property to Inter-Dimensional Realty Inc. (IDRI)
for 18 million pesos, IDRI paid full payment. Subsequently, the Register of Deeds
cancelled TCT No. M-10508 and issued TCT No. M-10976 to IDRI.
Mario, filed a complaint with RTC Malabon for specific performance and damages,
annulment of donation and sale, with preliminary mandatory and prohibitory injunction
and/or temporary restraining order.
On April 3, 2001, the RTC Malabon rendered a decision, the agreement between
Alfredo and IDRI was null and void for their attempt of commission or continuance of
their wrongful acts, further alienating or disposing of the subject property. Also the
agreement between Alfredo and Mario (1. to secure an affidavit from Elvira that the
property was Alfredo’s exclusive property; 2. removal of the notice of lis pendens
annotated at the back of TCT No. 5357) was null and void, because of the absence of
written consent of Elvira Gozon for her property rights to the undivided one-half share
in the conjugal property.
10. SIOCHI vs. GOZON.docx 2
ISSUE:
Whether or not the Court of Appeals erred in holding that Inter-Dimensional
Realty, Inc. (respondent) was not a buyer in good faith.
HELD:
NO. With regard to IDRI, we agree with the Court of Appeals in holding that IDRI is
not a buyer in good faith for IDRI had actual knowledge of facts and circumstances
which should impel a reasonably cautious person to make further inquiries about the
vendor’s title to the property. The representative of IDRI testified that he knew about
the existence of the notice of lis pendens on TCT No. 5357 and the legal separation case
filed. Furthermore, if IDRI made further inquiries, it would have known that the
cancellation of the notice of lis pendens was highly irregular. If IDRI had been more
prudent before buying the property, it would have discovered that Alfredo’s donation of
the property to Winifred was without the consent of Elvira. Under Article 125 of the
Family Code, a conjugal property cannot be donated by one spouse without the consent
of the other spouse. Clearly, IDRI was not a buyer in good faith.
PRINCIPLES AND ANALYSIS:
Article 125 of Family Code:
Art. 125. Neither spouse may donate any conjugal partnership property without
the consent of the other. However, either spouse may, without consent of the other,
make moderate donations from the conjugal partnership property for charity or on
occasions of family rejoicing or family distress.
Cf. Siochi vs. Gozon
Alfredo Gozon’s donation of the property to her daughter Winifred was without the
consent of Elvira, therefore, it was null and void.
Section 77 of PD 1529:
Sec. 77. Cancellation of lis pendens. -- Before final judgment, a notice of lis
pendens may be cancelled upon order of the court, after proper showing that the
notice is for the purpose of molesting the adverse party, or that it is necessary to
protect the rights of the party who caused it to be registered. It may be cancelled by
the Register of Deeds upon verified petition of the party who caused the registration
to it.
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
10. SIOCHI vs. GOZON.docx 3
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 preceding was pending stating the manner of disposal in
to.
Two Grounds to Cancel Notice of Lis Pendens:
a. Upon order of the court
After proper showing that the notice 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.
b. Upon action by the Register of Deeds
At the instance of the party who caused the registration of notice.

When the annotation is not necessary to protect the rights of the party who caused it to
be recorded.
Cf. Siochi vs. Gozon
There was no court order for the cancellation of the lis pendens, neither did Elvira,
the party who caused the registration of the lis pendens, file a verified petition for its
cancellation.

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10. SIOCHI vs. GOZON.

LTD - Module 7 - by MBC

PRINCIPLES AND ANALYSIS:

Article 125 of Family Code:

Cf. Siochi vs. Gozon

and/or buildings involved,in any case in which a memorandum or notice of lis

Two Grounds to Cancel Notice of Lis Pendens:

a. Upon order of the court

b. Upon action by the Register of Deeds

At the instance of the party who caused the registration of notice.

Cf. Siochi vs. Gozon

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