- Petitioner
- Sta. Lucia Realty
- Respondent
- Edsel B. Lumawag
- Citation
- G.R. No. 222897
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- M.V. Lopez, J.
- Decided
- February 22, 2023
Summary
This consolidated case involves a property dispute arising from AFP Retirement System's sale of a 240-square meter lot to Edsel Lumawag. After full payment in 2000, the seller failed to execute the final deed and deliver title due to encroachment by adjacent lot owner Lourdes Pearce, who built her house on 20 square meters of Edsel's lot. The Supreme Court affirmed AFP Retirement System's liability for acting in bad faith, declaring it must deliver clear title and pay damages. Lourdes was declared a builder in good faith but liable for nominal damages due to contributory negligence. The Court deleted developer Sta. Lucia Realty's liability for moral and exemplary damages based on a prior final CA decision, while maintaining its obligation to reimburse Lourdes for construction-related expenses. The case was remanded to HLURB for assessment of fair market values to properly apply Civil Code Article 448 regarding builder's rights and landowner's options.