Sps. Nestor v. Honorable Court of Appeals

Summary

This case involves a mortgage foreclosure dispute where spouses Borromeo obtained a housing loan but disagreed over the identity of their creditor-mortgagee. While loan documents showed Equitable Savings Bank (ESB) as mortgagee, evidence indicated their actual lender was Equitable PCI Bank (EPCIB). When ESB attempted foreclosure after payment default, petitioners sought injunction claiming ESB lacked standing. The Supreme Court granted preliminary injunction, applying the Civil Code principle that contracts bind only the parties who executed them. The Court found ESB, despite being EPCIB's subsidiary, could not foreclose as it was not the real party in interest. The decision emphasized this was only for injunctive relief purposes pending final resolution of the mortgage validity issue, protecting petitioners from potential irreparable harm while preserving both parties' substantive rights.