Spouses Rodolfo Q. Pineda v. Joseph G. Hizon

Summary

This case involves a real estate mortgage foreclosure dispute where petitioners sought to foreclose on Virginia Custodio's property after she defaulted on a P1,500,000.00 loan. After two compromise agreements and Virginia's death, respondent Joseph Hizon challenged the foreclosure sale claiming ownership through his agent. The Supreme Court affirmed the Court of Appeals' ruling that respondent had standing to challenge the proceedings as an aggrieved party in possession of the property. The Court held that the first compromise agreement created a final judgment that terminated the original case, making the second compromise agreement void. Under Article 2041 of the Civil Code, petitioners' remedies were alternative - having chosen enforcement through writ of execution, they could not later rescind and revive the foreclosure action. All subsequent proceedings including the foreclosure sale were declared void.