- Petitioner
- Insurance of the Philippine Islands Corporation
- Respondent
- Spouses Vidal S. Gregorio
- Citation
- G.R. No. 174104
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Peralta, J.
- Decided
- February 14, 2011
Summary
This case involves Insurance of the Philippine Islands Corporation's action for damages against spouses Gregorio for alleged fraud in mortgage transactions. The spouses obtained loans secured by properties represented to be unregistered but were actually titled to third parties. After foreclosure, petitioner discovered the fraud in 1995 and sued in 1996. The RTC awarded damages, but the CA dismissed the case citing prescription and laches. The Supreme Court reinstated the RTC decision, ruling that the prescriptive period runs from actual discovery of fraud (1995), not from title registration. The Court emphasized that equity prevents the application of laches when it would result in manifest injustice, particularly since respondents' fraud deprived petitioner of rightful ownership.