FACTS:

J. Casim Construction Supplies Inc. filed a petition to cancel a notice of lis pendens on its certificate of title. The petitioner acquired the property through a Deed of Absolute Sale, resulting in the cancellation of the mother title and the issuance of a new certificate of title. However, the petitioner discovered several entries on the original copy of the certificate of title, including the notice of lis pendens, which were not present on its owner's duplicate copy. The petitioner argued that the notice of lis pendens was a forgery due to inconsistencies in the inscriber's signature and non-chronological date of the entry. The petitioner claimed to be an innocent purchaser for value with an indefeasible title. The Intestate Estate of Bruneo F. Casim, who claimed an interest in the property, argued that the trial court lacked jurisdiction over the petition and that there was insufficient evidence to prove forgery. The trial court dismissed the petition for lack of jurisdiction, and the petitioner's motion for reconsideration was denied. The petitioner now seeks the review of the trial court's decision, asserting that the trial court has inherent power to cancel the notice of lis pendens and that its title is indefeasible.

ISSUES:

1. Whether the trial court has the jurisdiction to cancel the notice of lis pendens.

2. Whether the trial court erred in declining to rule on the allegation of forgery.

3. Whether the notice of lis pendens should be cancelled due to the absence of any transaction record with the Register of Deeds.

4. Whether the trial court has the authority to cancel the notice of lis pendens.

5. Whether the cancellation of the notice of lis pendens is an incident to the main action.

RULING:

1. Yes, the trial court has the jurisdiction to cancel the notice of lis pendens. Section 14, Rule 13 of the 1997 Rules of Civil Procedure authorizes the trial court to cancel a notice of lis pendens if it is shown that the purpose of its annotation is to molestation the adverse party or if it is not necessary to protect the rights of the party who caused it to be annotated. While cancellation is an exceptional remedy, it can be exercised in certain circumstances, such as when the party who caused the annotation is responsible for the circumstances that led to the cancellation.

2. The trial court did not err in declining to rule on the allegation of forgery. The main issue in the present case is the cancellation of the notice of lis pendens, and the question of forgery is not directly related to that issue. Therefore, the court's ruling on the cancellation of the notice of lis pendens is justified.

3. The absence of any transaction record with the Register of Deeds does not automatically result in the cancellation of the notice of lis pendens. Once a notice of lis pendens is duly registered, it serves as a warning to the whole world that the property is in litigation. The fact that the owner's duplicate title is clean does not necessarily mean that the property is not subject to the notice of lis pendens. The notice remains in effect until the litigation is terminated.

4. Yes, the trial court has the authority to cancel the notice of lis pendens. The power possessed by a trial court to cancel the notice of lis pendens is said to be inherent as it is merely ancillary to the main action.

5. Yes, the cancellation of the notice of lis pendens is an incident to the main action. The notice of lis pendens is an extrajudicial incident in an action and does not affect the merits thereof. It is intended to warn all people who deal with the property that they do so at their own risk, and their rights may be inferior and subordinate to those finally determined in the action. The cancellation of the notice of lis pendens can be ordered by the court having jurisdiction over the main action at any given time.

PRINCIPLES:

• Lis pendens refers to the jurisdiction, power, or control that a court acquires over the property involved in a suit until final judgment. Its purpose is to keep the properties in litigation within the power of the court and to prevent the defeat of the judgment by subsequent alienation.

• A notice of lis pendens, once duly registered, may be cancelled by the trial court before which the action involving the property is pending. The power to cancel a notice of lis pendens is exercised under exceptional circumstances, such as when it is shown that the annotation is for the purpose of molesting the adverse party or when it is not necessary to protect the rights of the party who caused it to be annotated.

• The cancellation of a notice of lis pendens is within the jurisdiction of the trial court even if it is not ancillary to a main action. The court has the power to cancel the notice if the circumstances warranted such cancellation.

• The power possessed by a trial court to cancel the notice of lis pendens is inherent and merely ancillary to the main action.

• The notice of lis pendens is an extrajudicial incident in an action and does not affect the merits thereof. Its purpose is to warn people dealing with the property that their rights may be subordinate to those finally determined in the action.

• The cancellation of the notice of lis pendens can be ordered by the court having jurisdiction over the main action at any given time.

• After final judgment in favor of the defendant or other disposition of the action that terminates all rights of the plaintiff in the property, the notice of lis pendens shall be deemed cancelled upon the registration of a certificate of the clerk of court stating the manner of disposal of the action.

• The cancellation of the notice of lis pendens can also be done administratively by presenting to the Register of Deeds a certificate executed by the clerk of court stating that the case has been finally decided and the manner of disposal thereof.