TOPIC CASE NO. CASE NAME MEMBER Art. 2131 G.R. No. 139437 Langkaan Realty v. UCPB Robyn Bangsil DOCTRINE 1. Act No. 3135 provides that the extra-judicial foreclosure sale cannot be held outside the province where the property is situated. Should a place within the province be a subject of stipulation, the sale shall be held at the stipulated place or in the municipal building of the municipality where the property or part thereof is situated. 2. Well-known is the basic legal principle that venue is waivable. Failure of any party to object to the impropriety of venue is deemed a waiver of his right to do so. RECIT-READY DIGEST Petitioner Langkaan mortgaged a parcel of land in favor of UCPB to secure 2 loans of Guimaras Agricultural Development worth P5M. Guimaras defaulted in payment of its loan obligation, and UCBP extra-judicially foreclosed the property, paying P3.095M at the foreclosure sale. Since Langkaan failed to redeem the property within the 1-year redemption period, title was consolidated in UCPB’s favor. Subsequently, Lankaan offered to buy back the property from UCPB for P4M, but this was rejected as the current selling price was P6.5M. Langkaan thus filed to annul the extra-judicial foreclosure, alleging that the sale is invalid due to non-compliance with the provisions of Act No. 3135 on venue, posting, and publication of Notice of Sale. SC finds that the sale was valid. Notice of the sale was posted in 3 conspicuous placed: municipal hall of Dasmarinas, Cavite; barangay hall of Langkaan, and the place where the property was located. Due publication was also effected; as said was published in Record Newsweekly, a newspaper of general circulation. Even assuming that the notice was not posted in 3 public places, this would not invalidate the foreclosure sale, the important matter is notice circulated in a newspaper of general circulation. As to the contention of petitioner that venue should have been in Trece Martires City, the capital of Cavite, as the Deed of REM provides that venue should be in the capital of the province, if the property is within the territorial jurisdiction of the province concerned, or shall be held in the city, if the property is within the territorial jurisdiction of the city concerned. The property is located in Dasmariñas City, a municipality in Cavite. Damsariñas is within the territorial jurisdiction of the province of Cavite, but not within that of the provincial capital of Trece Martires, or of any other city in Cavite. The jurisdiction is covered by the RTC of Imus, another municipality in Cavite. The SC ruled that the sale could have been in Trece Martires, but the sale is nonetheless valid, because for 3 years Langkaan knew about the extra-judicial foreclosure sale, and never objected to the impropriety of the venue of the sale. Basic is the rule that the venue is waivable, and when a party fails to object to the venue, his right to do so is deemed waived. For such failure, the venue is considered valid, and so the subsequent EJFS is likewise valid. Petition denied. FACTS - Langkaan Realty Development Corporation was the registered owner of a parcel of land. - It executed a Real Estate Mortgage (REM) over the said parcel in favor of respondent United Coconut Planters Bank (UCPB) as security for a loan obtained from the bank by Guimaras Agricultural Development in the amount of P 3,000,000.00. o Langkaan and Guimaras agreed to share in the total loan proceeds that the latter may obtain from UCPB - After which, Guimaras obtained another loan of P 2,000,000.00, which was also covered by the same REM. - The loan was fully secured by the REM which covered all obligations obtained from UCPB by either GUIMARAS or LANGKAAN before, during or after the constitution of the mortgage. 1 - - - The agreement also provided for an acceleration clause, and that UCPB may immediately foreclose the said mortgage. Guimaras defaulted, and UCPB filed a Petition for Sale under Act. 3135, with the Office of the Clerk of Court and Ex-Officio Sheriff of RTC of Imus,Cavite. The petition was granted, and a Notice of Extra-judicial Sale was issued on August 4, setting the sale on August 29, or 25 days later. The notice was published in the Record Newsweekly, and was certified by Court Deputy Sheriff to have been duly posted. The property was sold to UCPB as it was the higest bidder, for the amount of P 3,095,000.00. Petitioner Langkaan failed to redeem and so the title was consolidated in favor of UCPB. On March 31, 1989, Langkaan, through its counsel, wrote UCPB offering to buy back the foreclosed property for P 4,000,000.00, but the said offer was rejected, stating that the current price was at P 6.5M. Langkaan then filed a Complaint for Annulment of Extra-judicial Foreclosure and Sale. The petition was denied for lack of merit. ISSUE/S and HELD 1. Whether or not the extrajudicial foreclosure was valid – YES RATIO 1. Whether the EJFS was valid – Yes NOTICE (question of fact) - It was contended that the notice of sale was posted at only one 1 public place, the Municipal Building of Dasmarinas, Cavite contrary to the requirement in Act No. 3135, that said notice shall be posted in at least 3 public places. - Deputy Sheriff Nonilon Caniya, however, has categorically declared that he had posted Notices of Sale in four public places; namely: (1) Municipal Hall of Dasmarinas, Cavite, (2) Barangay Hall of Langkaan, (3) in the place where the property is located and (4) at the Dasmarinas Public Market. The court gives credence to said Sheriffs testimony due to the presumption of regularity of performance. - The publication of the notice of sale in the newspaper of general circulation alone is more than sufficient compliance with the notice-posting requirement of the law. o Even if the notice of sale was not posted in 3 public places, this would not invalidate the foreclosure conducted. o By such publication, a reasonably wide publicity had been effected such that those interested might attend the public sale, and the purpose of the law had been thereby subserved. - It is beyond dispute that notice of Sheriff’s Sale was published in Record Newsweekly, a newspaper of general circulation. No evidence was adduced by petitioner to contradict this. - Petitioner claims that the newspaper has no subscribers (having subscribers is one of the requisites for a newspaper to be considered one of general circulation), but this is belied by the Affidavit of Publication executed by the Publisher of Records Newsweekly, and by the Clerk of Court. - The Court takes note that the purpose of publication is to inform the public of the nature and condition of the property to be sold, and of the time, place, and terms of the sale. - Notices are given for the purpose of securing bidders, and preventing the sacrifice of property. - Appellant also alleges that the certificate of posting is falsified, resulting from unlawful intercalations made, to change the import and meaning of said certificate. A certificate of posting however, is not a statutory requirement, and as such, is not considered indespensible. 2 VENUE - Act No. 31351 provides that the extra-judicial foreclosure sale cannot be held outside the province where the property is situated. Should a place within the province be a subject of stipulation, the sale shall be held at the stipulated place or in the municipal building of the municipality where the property or part thereof is situated. - In the case at bar, the REM contract contains a stipulation which states that the auction sale shall be held at the capital of the province, if the property is within the territorial jurisdiction of the province concerned, or shall be held in the city, if the property is within the territorial jurisdiction of the city concerned. - The property is located in Dasmariñas City, a municipality in Cavite. Damsariñas is within the territorial jurisdiction of the province of Cavite, but not within that of the provincial capital of Trece Martires, or of any other city in Cavite. The jurisdiction is covered by the RTC of Imus, another municipality in Cavite. - Petitioner contends that the sale should have been in Trece Martires, while Respondents argue that the extrajudicial foreclosure was properly held at the main entrance of the Office of the Clerk of Court of the RTC of Imus, which has territorial jurisdiction over Dasmariñas. - The Court ruled that the sale could have been in Trece Martires; however, the sale in the Office of the Clerk of Court is still valid. Well-known is the basic legal principle that venue is waivable. Failure of any party to object to the impropriety of venue is deemed a waiver of his right to do so. - From 1986 to 1989, Petitioner Langkaan knew of the foreclosure sale, and yet, they did not take any step to question the propriety of the venue. For failure to object, the right to object to the venue of the sale is deemed waived. DISPOSTIVE PORTION WHEREFORE, premises considered, the petition is hereby DENIED SEC. 2. Said sale cannot be made legally outside of the province which the property sold is situated; and in case the place within said province in which the sale is to be made is the subject of stipulation, such sale shall be made in said place or in the municipal building of the municipality in which the property or part thereof is situated. 3
