Law School Noob: [CASE DIGEST] Looyuko v. Court of Appeals

Saturday, September 14, 2013

[CASE DIGEST] Looyuko v. Court of Appeals

July 12, 2001 | G.R. No. 102696

FACTS:

There are three cases in this case involving a single property owned by the Spouses Tomas and Linda Mendoza.

1st case:

FGU Insurance Corporation filed an action for foreclosure of mortgage against Spouses Tomas and Linda Mendoza, where a judgment was rendered in favor of Looyuko and Uy. The property was then sold at public auction with Looyuko and Uy as highest bidders. In 1995, the Register of Deeds issued a new TCT over the property in the name of Looyuko and Uy (TCT No. 10107).

2nd case:

A complaint for a sum of money with damages was filed by Antonia Gutang against Tomas Mendoza. Judgment was rendered in favor of Gutang, The property was sold at a public auction to Antonia Gutang. AS such, the Sheriff executed a final deed of sale in 1985.
TCT No. 1702 was cancelled and TCT No 242 in the name of Gutang was issued in 1987.

3rd case:

Spouses Mendoza executed a mortgage over the subject property in favor of FGU Insurance Corporation. The mortgage was registered in 1976. FGU filed an action with the RTC Manila against the spouses.
Spouses Mendoza were declared in default for failing to appear during the pre-trial. Subsequently, Manila RTC rendered a decision in favor of FGU.

FGU filed a motion for partial reconsideration, pointing out that the action was not for a sum of money but for foreclosure of mortgage. It prayed that in accordance with Sec. 2, Rule 68 of the Rules of Court, the decision be amended by ordering the sale of the property mortgaged in case defendant should not satisfy the judgment in favor of plaintiff within 90 days from notice of decision. RTC issued an order granting FGU’s motion.

Before new TCT could be issued in favor of FGU, Gutang filed a motion for intervention and to set aside the judgment of the RTC, alleging that they are now the new registered owners of the property.
RTC allowed the motion for intervention, holding that the failure of FGU to implead the Spouses Gutang in the action for foreclosure deprived the latter of due process. This was affirmed by the Court of Appeals.

ISSUE:

Whether the filing of the motion for intervention was proper. -- NO.

HELD:

The rule permits the filing of the motion to intervene at any time before the rendition of the judgment in the case. The justification advanced for this is that before judgment is rendered, the court, for god cause shown, may still allow the introduction of additional evidence and that is still within a liberal interpretation of the period for trial. Also, since no judgment has yet been rendered, the matter subject of the intervention may still be readily resolved and integrated in the judgment disposing of all claims in the case, and would not require an overall reassessment of said claims as would be the case if the judgment had already been rendered.

However, In the present case, motions for intervention were filed after the judgment had already been rendered, indeed when the case was already final and executory. Certainly, intervention can no longer be allowed in a case already terminated by final judgment.

Intervention is merely collateral or accessory or ancillary to the principal action, and not an independent proceeding; it is an interlocutory proceeding dependent on or subsidiary to the case between the original parties.Where the main action ceases to exist, there is no pending proceeding wherein the intervention may be based. Here, there is no more pending principal action wherein the Spouses Gutang and Looyuko et al. may intervene.

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