Lumen Policarpio v. Hon. Court of Appeals (Now Intermediate Appellate Court)

Summary

This case involves a mortgage foreclosure where the Policarpio family's property was sold to Philippine Trust Company at auction in 1970. After foreclosure, the family built or renovated a building on the property. When the bank sought a writ of possession, the trial court initially recognized the need to determine whether the Policarpios were builders in good faith entitled to reimbursement and retention rights under Civil Code Articles 546, 448, and 450. However, the court later reversed itself and granted the writ without allowing the petitioner to present evidence. The Supreme Court found this denial of due process and remanded the case to the Intermediate Appellate Court to resolve the factual issue of good faith, emphasizing that both the bank's right to possession and the builder's potential right to reimbursement must be respected.