Jesus F. Ignacio v. The Hon. Court of Appeals (Former First Division)

Summary

This case involved a dispute over a P1,000,000 pacto de retro sale of real property between Jesus F. Ignacio and spouses Renato and Marina Yalung. When the vendors failed to redeem the property within the 90-day period, Ignacio filed for consolidation of ownership in a land registration court. The Yalung spouses claimed the agreement was actually an equitable mortgage. The Court of Appeals ruled the land registration court lacked jurisdiction, but the Supreme Court reversed this decision. The Court held that the parties waived any jurisdictional objection by participating in the proceedings and that P.D. No. 1529 eliminated the distinction between general and limited RTC jurisdiction in land matters. The Court affirmed that the deed constituted a true pacto de retro sale based on its clear terms and the parties' understanding, rejecting the claim of equitable mortgage. The decision reinforced the principle that clear contractual terms should be interpreted according to their literal sense.