Sep 8, 2019

Orquiola vs CA CASE DIGEST - Civil Procedure - Real Party in Interest - Indispensable Party


ORQUIOLA VS. CA
TOPIC: RULE 3 - Section 9. Non-joinder of necessary parties to be pleaded
Facts: Ledesma was the registered owner of Lot 689. This parcel of land was adjacent to certain portions of Lot 707 of the Piedad Estates, registered in the name of Pedro. Pedro sold Lot 707-A and 707-B to Lising who then registered both lots and Lot 707-C in the name of M.B. Lising Realty and subdivided them into smaller lots. Certain portions of the subdivided lots were sold to third persons including Orquiola (1964).
Sometime in 1969, Ledesma filed a complaint in RTC against Pedro and Lising for allegedly encroaching upon Lot 689. During the pendency of the action, Tandang Sora Development Corporation replaced Ledesma as plaintiff by virtue of an assignment of Lot 689 made by Ledesma in favor of said corporation.
In 1991, RTC finally adjudged defendants Pedro and Lising jointly and severally liable for encroaching on plaintiff’s land.
Issue: WON the decision in the Civil Case can be enforced against petitioners even though they were not impleaded thereto
Held: NO, petitioners are not privies (interested in the outcome of the action) and cannot be bound by the judgment against Lising and his predecessors-in-interests.
The Medina doctrine relied upon by the CA is markedly different from the one before the court. In the present case, petitioners acquired the lot before the commencement of Civil Case and petitioners acquired the registered title in their own names.
In other words, the sale to petitioners was made before Ledesma claimed the lot. Petitioners could reasonably rely on Lising’s Certificate of Title which at the time of purchase was still free from any third-party claim.

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