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The Regional Trial Court (RTC) Branch 26 of Naga City favored GMA Network, Inc. (GMA) in a civil case filed against lawyer Fabian Mendez, who sold to GMA four parcels of land sitting on a 1,083-square meter land area in Concepcion Pequeña, Naga City.
The Regional Trial Court (RTC) Branch 26 of Naga City favored GMA Network, Inc. (GMA) in a civil case filed against lawyer Fabian Mendez, who sold to GMA four parcels of land sitting on a 1,083-square meter land area in Concepcion Pequeña, Naga City.
GMA
filed the lawsuit against Mendez for the latter’s failure to fulfill his obligations detailed in the Deed of Conditional Sale, which was negotiated between parties in February 1998.
Under the Deed
of Conditional Sale, Mendez
was required to submit
to GMA within 30 days from its signing several documents that would facilitate transfer of ownership of the land to GMA.
GMA bought the subject land from Mendez for P3,790,500 to house its tower and transmitter. In the process of installation and construction of broadcast equipment on the said property, GMA was prevented by a certain Fortunato Mendoza who claimed ownership of the adjoining lots and barricaded the right of way leading to the lots of GMA. Mendoza said he was willing to give GMA the right of way for a fee.
Mendez said he should not be blamed that GMA was denied the right of way and attributed the fault on Mendoza
against whom he filed a third-party complaint. Mendez also refused to return GMA’s money and held that the broadcast company has no valid cause of action against him.
In a 15-page decision written by
Naga RTC Judge Filemon Montenegro
issued on May 10, 2012, the Court
ordered the rescission of the Deed of Conditional Sale and
directed Mendez to return the purchase price of the subject land with 12% interest per annum from February 24, 1998, the date of purchase.
According to Judge Montenegro, GMA is entitled to rescind the Deed of Conditional Sale because Mendez failed to fulfill his obligations and warranties as stated in the said document
.Mendez failed to comply with his obligation to cancel the Notice of
Lis Pendens (suit pending) annotated at the back of the land title
which arose from a Complaint for Annulment of Sale filed in 1991 by Weller Jopson, who was an alleged bona fide tenant-farmer of the subject land.
The Court
also said that Mendez
failed to comply with the
legal warranty of
providing access and legal and peaceful possession of the land in favor of GMA. Mendez concealed and misrepresented the lack of road right of way to the property.
He provided GMA a copy of the location map
which reflects an existing road and a right of way to the property but the said right of way was eventually proven non-existent, it being privately owned by Mendoza. Had GMA known that the given right of way was flawed, it would not have entered in
to the said transaction with Mendez.
Due to the continuous refusal of Mendoza to let GMA pass through his property, GMA was forced to extend its stay in the roof deck of the Naga College Foundation, which the broadcast company rented prior to the purchase of the subject land.
As a result, GMA incurred additional costs
in renting the site amounting to P228,682.
The Court
likewise ordered Mendez to pay GMA more than P400,000 in actual and exemplary damages for acting in bad faith and breaching the warranties detailed in the Deed of Conditional Sale.
The Court said that “Mendez acted in bad faith and in a wanton, fraudulent, reckless, oppressive or malevolent manner when he sold the subject property to [GMA] knowing their defects and for breach of warranty.”
