Bignay Ex-Im Philippines v · G.R. 171590

Petitioner: Bignay Ex-Im Philippines
Respondent: Union Bank of the Philippines
Citation: G.R. No. 171590
Court: Supreme Court
Division: Second Division
Ponente: Del Castillo, J.
Decided: February 12, 2014

Summary

Union Bank sold foreclosed property to Bignay with warranty to defend title, but was later found to have acted in bad faith when the original mortgage was declared void due to forged signature, resulting in Bignay's eviction. The Supreme Court held Union Bank liable for P24 million (P4 million land cost plus P20 million building value) due to gross negligence amounting to bad faith in defending its title. The Court found Union Bank's handling of the annulment case was grossly negligent - its appeal was dismissed for failure to file appellant's brief, subsequent petition was denied for late filing, and annulment petition was dismissed for non-compliance with court rules. The Court dismissed Union Bank's counterclaim, questioning the authenticity of receipts supposedly proving docket fee payment that suddenly appeared during appeal.

Statutes applied

Civil Code, Art. 1547

Related cases

Other Philippine cases on the same provisions and issues.

Gamaliel C. Villanueva v. Court of Appeals G.R. No. 107624
Sps. Cornelio Joel I. Orden v. Orden G.R. No. 172733
EPIFANIO GUIA v. MARCOS PULUTAN G.R. No. 421
Raymundo S. de Leon v. Benita T. Ong G.R. No. 170405
Julia Tuason v. Fausto Raymundo G.R. No. 9372
Esteban Barretto v. Manila Railroad Co. G.R. No. 21313
Bignay Ex-Im Phils. Inc. v. Union Bank G.R. Nos. 171590171598 G.R. No. 171590171598

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Contract of Sale in the Philippines

By the Intellegal Editorial Board · February 12, 2014

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