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LETICIA P. LIGON v. RTC

FACTS:

The case involves a petition for review on certiorari assailing the decision of the Court of Appeals regarding the orders issued by the Regional Trial Court (RTC) of Makati City in Civil Case No. 03-186. The orders directed the Register of Deeds of Muntinlupa City to register the Officer's Final Deed of Sale and cancel Transfer Certificate of Title (TCT) No. 8502/T44 in favor of Leonardo J. Ting, the highest bidder. A new certificate of title would be issued in Ting's name, free from any liens and encumbrances.

Leticia P. Ligon, the petitioner, filed a complaint against Spouses Rosario and Saturnino Baladjay, among others, for collection of a sum of money and damages, rescission of contract, and nullification of title. Ligon claimed that Rosario Baladjay persuaded her to extend a loan secured by an Allied Bank post-dated check, assuring her that their property in Ayala Alabang Village, Muntinlupa City would be sold to repay the loan easily. However, the check was dishonored, and Ligon later discovered that the property had already been transferred to Polished Arrow Holdings, Inc., alleged to be a dummy corporation of the Baladjays and the other defendants. Ligon sought the nullification of the transfer and the issuance of a writ of preliminary attachment.

In a separate case filed by Spouses Cecilia and Gil Vicente, it was established that Spouses Baladjay had persuaded the Vicentes to invest using conduit companies controlled by Rosario as President and Chairperson. An attachment was also issued against the subject property in that case. The Makati City RTC ruled that the transfer of the subject property to Polished Arrow was rescinded and directed the cancellation of TCT No. 9273 in the name of Polished Arrow, restoring TCT No. 8502 to Rosario Baladjay.

After the Quezon City case concluded, Ligon discovered that the attachment annotation on TCT No. 9273 had been removed when the property was sold to Ting through a public auction. Subsequently, the Makati City RTC ordered the Register of Deeds to register the Officer's Final Deed of Sale in favor of Ting, cancel TCT No. 8502, and issue a new title in Ting's name free from any liens and encumbrances.

ISSUES:

  1. Whether the Makati City RTC gravely abused its discretion in issuing the Assailed Orders.

  2. Whether Judge Laigo should be cited in contempt and penalized administratively.

  3. Whether or not the RTC gravely abused its discretion in issuing the Assailed Orders that disregarded Ligon's prior attachment lien over the subject property.

  4. Whether or not the respondents, specifically Judge Laigo, should be held in indirect contempt.

  5. Whether or not the petition is premature.

  6. Whether or not the filing of a petition for certiorari is an adequate remedy.

RULING:

  1. The petition is partly meritorious.

  2. Yes, the RTC gravely abused its discretion in issuing the Assailed Orders. The attachment lien of Ligon over the subject property should have been preserved despite the cancellation of the previous certificate of title. The issuance of a new certificate of title free from any liens and encumbrances negates the efficacy of Ligon's attachment lien and goes against the nature of attachment proceedings.

  3. No, the respondents, including Judge Laigo, should not be held in indirect contempt. Ligon failed to sufficiently show how the acts of the respondents constitute any of the acts punishable under the Rules of Court. Judge Laigo merely performed his judicial functions based on a final decision. Without proper substantiation, the indirect contempt charges are dismissed.

  4. The Court held that the petition is premature. The case is still pending in the trial court and no final judgment has been rendered. Hence, the petitioner failed to exhaust all available remedies before invoking the jurisdiction of the Court.

  5. The Court ruled that the filing of a petition for certiorari is not an adequate remedy. The petitioner could have filed a motion for reconsideration in the trial court or invoked the hierarchy of courts before resorting to a certiorari petition. Additionally, the petitioner failed to show that there is an urgent necessity for the Court to exercise its power of certiorari before trial and judgment.

PRINCIPLES:

  • Attachment is a provisional remedy that takes the property of an adverse party into legal custody as security for the satisfaction of a judgment. It creates a specific lien on the attached property.

  • A prior registration of an attachment lien creates a preference, and a purchaser of the property subsequent to the attachment takes the property subject to the attachment.

  • Registration of an attachment lien operates as constructive notice to all persons.

  • Registration of a property operates as constructive notice to all persons.

  • Attachment lien continues until the judgment debt is satisfied or the attachment is discharged or vacated.

  • Contempt of court can be either direct or indirect contempt.

  • Indirect or constructive contempt involves improper conduct that tends to impede, obstruct, or degrade the administration of justice.

  • The presumption of regularity applies to the official acts of a judge.

  • The principle of exhaustion of administrative remedies requires that before a party is allowed to seek the intervention of the court, he/she should have availed of all the means of administrative processes afforded to him/her. (Issue 1)

  • The hierarchy of courts must be respected and adhered to because it promotes respect for the court system, contributes to its orderly administration, and assists in the proper and efficient administration of justice. (Issue 2)