Marietta P. Santos v. Court of Appeals

Summary

The Santos spouses lost their Dasmariñas Village property through execution of judgment in favor of Pilipinas Bank. After multiple failed attempts to annul the execution and foreclosure, they filed Civil Case No. 17197 seeking redemption based on equity and promissory estoppel. The Supreme Court affirmed the dismissal of their first cause of action, ruling that res judicata barred their claim since all four elements were present: final judgment, competent court, judgment on merits, and identity of parties, subject matter, and cause of action with the previous case. The Court also held that the proposed contract to sell was not binding as it was never perfected due to lack of absolute acceptance communicated to the bank. This case demonstrates the strict application of res judicata in preventing relitigation of settled matters and the requirements for contract formation under the Civil Code.