City of Zamboanga v. Hon. Pelagio S. Mandi

Summary

The City of Zamboanga filed an eminent domain case against the Julians for their 56,865 sq.m. lot, with courts awarding P0.18/sq.m. compensation. While the Julians' appeal was pending before the Supreme Court, the parties entered into a compromise agreement increasing the price to P3.00/sq.m. Despite the City's initial requirement for Supreme Court approval, subsequent resolutions and the parties' execution of a deed of sale demonstrated their intent to proceed without such approval. When the City later refused payment, claiming the compromise was invalid without Supreme Court approval, the Julians successfully sought mandamus. The Supreme Court held that the compromise agreement created new obligations through novation, effectively superseding the original judgment, and that the Julians could properly enforce it under Civil Code Article 2041. The case demonstrates how compromise agreements can novate final judgments when parties manifest clear intent to create new obligations.