Felicidad L. Oronce v. Hon. Court of Appeals

Summary

This case involves a property dispute where petitioners claimed ownership of a Quezon City property through a Deed of Sale with Assumption of Mortgage, while respondent corporation argued the agreement was merely an equitable mortgage. The Supreme Court held that the document was indeed an equitable mortgage under Articles 1602 and 1604 of the Civil Code, as evidenced by the vendor's continued possession and the vendees' retention of part of the purchase price. The Court emphasized that Metropolitan Trial Courts have jurisdiction to resolve ownership issues in ejectment cases only to determine possession rights, but must properly analyze the documents presented. The case clarifies the extent of inferior courts' jurisdiction in ejectment proceedings where ownership is disputed and reaffirms the Civil Code provisions on equitable mortgage presumptions.