Republic V Gotengco
Republic V Gotengco
Republic V Gotengco
DECISION
GESMUNDO, J : p
The Antecedents
After the Modified Partial Decision had lapsed into finality, Gotengco,
de Jesus, and Garcia, jointly moved for its execution, which the RTC
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approved on March 30, 2001. Accordingly, Republic and Gotengco executed
a Deed of Absolute Sale 7 on one of the three lots of the latter's expropriated
property, Lot A, covered by TCT No. T-334198, in the amount of
P20,669,520.00. In three separate installments, Republic paid Gotengco the
following amounts: CAIHTE
Table IV:
Date of Amount
Payment
July 2002 P4,068,111.40
October 4, 2004 P8,931,733.88
October 24, 2012 P7,669,520.00
The CA Ruling
Since Gotengco was deprived of his property and of its income since its
taking on March 30, 2001 (date of execution of judgment), 25 the CA found
that legal interest, therefore, should be imposed and, accordingly, adjudged
the RTC not guilty of grave abuse of discretion in imposing the payment of
6% legal interest on the amount of just compensation for being in
accordance with law and jurisprudence.
Hence, the present petition. Republic contends that the appellate court
committed a reversible error in finding no grave abuse of discretion
amounting to lack or excess in jurisdiction on the part of the trial court when
it modified and altered a judgment that had already become final; therefore,
violating the doctrine of immutability and finality of judgments. The
arguments of Republic as raised in the instant petition are as follows:
THE COURT OF APPEALS COMMITTED A REVERSIBLE ERROR IN
RENDERING THE ASSAILED DECISION DATED FEBRUARY 26, 2016
AND RESOLUTION DATED AUGUST 9, 2016, FINDING THAT THERE
WAS NO GRAVE ABUSE OF DISCRETION ON THE PART OF THE TRIAL
COURT IN ISSUING THE ORDERS DATED JULY 20, 2010, MAY 6, 2013,
AND FEBRUARY 4, 2014, GRANTING LEGAL INTEREST IN FAVOR OF
THE RESPONDENT.
I.
THE ORDERS DATED JULY 20, 2010, MAY 6, 2013 AND FEBRUARY 4,
2014 OF THE TRIAL COURT WERE ISSUED WITH GRAVE ABUSE OF
DISCRETION, CONSIDERING THAT SUCH ORDERS RUN AFOUL WITH
WELL-SETTLED PRINCIPLES AND JURISPRUDENCE REGARDING
FINALITY AND IMMUTABILITY OF JUDGMENTS.
II.
THE ORDERS OF THE TRIAL COURT IMPOSING LEGAL INTEREST DUE
TO THE ALLEGED DELAY ON THE PART OF THE PETITIONER IN THE
PAYMENT OF JUST COMPENSATION, WHICH WERE EFFECTIVELY
AFFIRMED BY THE COURT OF APPEALS, WERE ISSUED WITH GRAVE
ABUSE OF DISCRETION AND WITHOUT BASIS, CONSIDERING THAT
THERE WAS NO DELAY IN PAYMENT. 26
Meanwhile, pending resolution of the case, Gotengco submitted to the
RTC for approval, the Compromise Agreement 27 he entered into with
Tiaoqui to equally share the remainder of the just compensation amounting
to P5,576,340.00. On the other hand, Republic manifested its readiness to
release the final payment. Finding the compromise agreement valid and not
contrary to law, morals, and public policy, the RTC approved the same in an
order dated September 23, 2016. 28
Hence, the sole issue for resolution is whether or not the trial court
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violated the well-settled doctrine of immutability of judgments in modifying
its own decision that had already attained finality to the extent that it
granted interest.
The stark differences lie on whether legal interest was imposed by the
trial court and the concomitant undertaking of the litigants to protect them
from the adverse judgment. In Apo Fruits , the RTC categorically ordered the
government, though Land Bank, to pay AFC and Hijo just compensation with
legal interest. 34 Here, the RTC, as early as in the Partial Decision and even
in the subsequent Modified Partial Decision, never adjudicated the payment
of such legal interest — it was clear at its inception that legal interest was
not imposed. Yet, despite the apparent adverse decision to impose no legal
interest, Gotengco chose to acquiesce. It was only after nine (9) long years
from finality of the assailed Modified Partial Decision when Gotengco filed his
motion for reconsideration. Such fact, without a doubt, this Court cannot turn
a blind eye to.
While, indeed, aside from Gotengco's motion for reconsideration was
obviously filed out of time, 35 it was also barred by laches. As defined, laches
is the failure or neglect for an unreasonable and unexplained length of time
to do that, which, by exercising diligence, could or should have been done
earlier. It is the negligence or omission to assert a right within a reasonable
time warranting a presumption that the party entitled to assert it either has
abandoned it or declined to assert it. 36 The elements of laches are all
present, to wit:
1. Conduct on the part of the defendant, or one under whom he
claims, giving rise to the situation that led to the complaint and
for which the complaint seeks a remedy;
2. Delay in asserting the complainant's rights, the complainant
having had knowledge or notice of the defendant's conduct and
having been afforded an opportunity to institute a suit;
3. Lack of knowledge or notice on the part of the defendant that the
complainant would assert the right on which he bases his suit;
and
4. Injury or prejudice to the defendant in the event relief is
accorded to the complainant or the suit is not held barred. 37
As borne by the records of the case, Gotengco had notice of the
Modified Partial Decision, manifested by the fact that Gotengco himself,
together with the other affected owners, moved for the issuance of a writ of
execution of the Modified Partial Decision, to which a deed of absolute sale
was issued pursuant thereto; hence, he cannot feign ignorance of the
rendition of the Modified Partial Decision. Even with the grace period
afforded to him by the law, for reasons known only to Gotengco, he
squandered his right and, instead, waited nine (9) unreasonable years to
disturb the otherwise final and executory Modified Partial Decision. Clearly,
estoppel by laches has set in against him. 38 His belated action in asserting
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his right within a reasonable time to dispute the assailed judgment in the
guise of this Court's protection from miscarriage of justice cannot be
disregarded. 39 Indeed, Gotengco is guilty of laches.
Verily, while the present case involves a private property expropriated
by the government, the exception as applied in Apo Fruits does not apply to
those who sleep on their rights. Vigilantibus non dormientibus equitas
subvenit. Equity aids the vigilant, not the ones who sleep over their rights.
The Doctrine of Urtula v. Republic 40
Time and again, the Court has reiterated the maxim that rules of
procedure must be faithfully followed and cannot be ignored due to its
indispensability for the orderly and speedy discharge of the administration of
justice. While rules of procedure may be relaxed to better serve the ends of
justice, the Court, however, must take precaution as the exception to this
tenet is applied only to the most persuasive of reasons and the most
deserving. 45
WHEREFORE, the petition is GRANTED. The Decision of the Court of
Appeals dated February 26, 2016 in CA-G.R. SP No. 134944, affirming the
Order of the Regional Trial Court dated May 6, 2013, which ordered the
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Republic to pay Gotengco legal interest at the rate of 6% per annum from
the date of finality of judgment until the entire amount of just compensation
is paid in full is REVERSED and SET ASIDE. Accordingly, the Modified Partial
Decision dated February 15, 2001 of the Regional Trial Court in Civil Case
No. 184-83-C ordering the Republic to pay Gotengco just compensation sans
legal interest is hereby REINSTATED.
SO ORDERED.
Velasco, Jr., Bersamin and Leonen, JJ., concur.
Martires, * J., is on official leave.
Footnotes
* On Official Leave.
1. Penned by Associate Justice Ma. Luisa C. Quijano-Padilla with Associate Justices
Normandie B. Pizarro and Samuel H. Gaerlan concurring; rollo, pp. 49-57.
2. Id. at 59-61.
3. Id. at 131-115.
4. Id. at 103.
5. Id. at 103-108.
6. Rollo , p. 115.
7. Id. at 120-122.
8. See Table IV.
9. Rollo , p. 390; Compare with rollo, pp. 55 and 390.
10. Id. at 123-128.
34. Apo Fruits Corp., et al. v. Land Bank of the Phils., 543 Phil. 497, 507 (2007).
35. Section 1, Rule 37, Rules of Court, in relation to Section 2, Rule 40, Rules of
Court.
36. Españo, Sr. v. CA, et al., 335 Phil. 983, 986 (1997).
37. Buenaventura, et al. v. Court of Appeals, 290-A Phil. 628, 635 (1992) citing
Yusingco v. Ong Hing Lian , 149 Phil. 688, 710 (1971).
38. Ochagabia, et al. v. Court of Appeals, et al., 364 Phil. 233, 240 (1999).
39. Republic v. Limbonhai and Sons, G.R. No. 217956, November 16, 2016.
41. Id.
42. Section 3, Rule 67, Revised Rules of Court; Urtula, et al. v. Republic, 130 Phil.
449, 454 (1968).
45. Spouses Bergonia and Castillo v. CA, et al., 680 Phil. 334, 344-345 (2012).