SPOUSES SALVADOR VS SPOUSES RABAJA AND GONZALES (G. R. No. 199990, February 4, 2015) FACTS: Petitioners Spouses Salvaor sol a par!el o" lan lo!ate in #analuyon$ %ity to responents Spouses Raba&a, t'rou$' Rosario Gonales, t'e sellers a$ent. Fro* 19 1994 94+2 +200 002, 2, respo espon nen ents ts 'ave 'ave been been renti entin$ n$ t'e t'e prop proper erty ty "ro* "ro* petitioners. 'en t'ey learne t'at petitioners -ere looin$ "or a buyer, responents e/pr e/press esse e esir esire e to pur!'a pur!'ase se t'e lan lan an petiti petitione oners rs intro introu! u!e e Gonal Gonales es to responents as a*inistrator o" t'e lan. Petitioners even 'ane to Gonales t'e o-ners upli!ate !erti!ate o" title on t'e property. n 199, responents pai 4,000 pesos to Gonales, -'o t'en 'a an SP3 e/e!ute by petitioner+Rolano, in t'e presen!e o" petitioner+er*inia. n t'e sa*e ay, t'e parties e/e!ute a !ontra!t to sell, stipulatin$ t'e a*ount o" t'e property at 5 *illion pesos. Respo espon nen ents ts *ae *ae seve severa rall pay* pay*en ents ts a*ou a*ount ntin in$ $ to 95 950, 0,00 000 0 peso pesos s to Gonales pursuant to t'e SP3 provie earlier as evien!e by t'e !'e! vou!'ers si$ne by Gonales an t'e i*provise re!eipts si$ne by er*inia. 6ut in 7une 7une 1999, 1999, petit petition ioners ers !o*pla !o*plain ine e t'at t'at t'ey t'ey i i not re!ei re!eive ve any pay*en pay*entt "ro* "ro* respo respone nents nts,, so resp respon onent ents s suspe suspen ne e "urt'e "urt'err pay*en pay*entt o" t'e pur!'ase pri!e8 an as a !onseuen!e, t'ey re!eive a noti!e to va!ate t'e sub&e!t property "ro* Spouses Salvaor "or non+pay*ent o" rentals. 3n e&e!t*ent suit -as le by petitioners be"ore t'e #e:%, -'ile a !ase "or res!ission o" !ontra!t -as le by responents be"ore t'e R:%. Petitioners Petitioners -on in t'e e&e!t*ent suit an -ere able to $arnis' 59;,400 pesos "ro* "ro* respon responents ents ti*e eposits eposits repres representin entin$ $ pay*ent pay*ent "or t'e ba! rentals rentals,, as orere by t'e trial !ourt in t'e -rit o" e/e!ution. R:% reverse #e:% an rule t'at t'ere -as no lease a$ree*ent bet-een t'e part partie ies. s. :'is :'is pro* pro*pt pte e peti petiti tion oner ers s to appe appeal al t'e t'e !ase !ase be"o be"orre t'e t'e %3, %3, -'i! -'i!' ' reinstate #e:%s rulin$. :'is %3 e!ision be!a*e nal an e/e!utory. #ean-'ile, R:%, in t'e res!ission !ase, orere t'e res!ission o" t'e !ontra!t. Petit Petition ioners ers -ere -ere only only able able to atten atten t'e rst rst o" t'e *any *any pre+t pre+tria riall !on"e !on"ere ren! n!e, e, leain$ to t'e R:%s issuan!e o" an orer o" e"ault, allo-in$ responents to present evien!e e/+parte . :'e R:% rule in responents "avor an 'el t'at t+'e !ontra!t -as one o" sale not a !ontra!t to sell, -'i!' !an appropriately be res!ine, res!ine, bein$ a !ontra!t -it' re!ipro!al obli$ations. n its rulin$ in "avor o" responents, it orere t'e return o" t'e $arnis'e a*ount an t'e 950,000 pesos -'i!' represents t'e pur!'ase pri!e. %3 a
3. 'et'er or not t'e nal an e/e!utory &u$*ent on t'e e&e!t*ent !ase -'i!' orers t'e $arnis'*ent o" 59;,400 pesos !an still be isturbe, an t'e $arnis'e a*ount returne. 4. 'et'er or not t'e a-ar o" a*a$es in "avor o" Spouses Raba&a an Gonales -as proper absent any le$al an "a!tual bases. RULING: 1. The fai!"e #f S$#!%e% Sa&a'#" (# a((e)' $"e*("ia +#)fe"e)+e ,a""a)(% (he $"e%e)(a(i#) #f e&i'e)+e e- $a"(e / S$#!%e% Raa0a. :'e %ourt reiterates t'e rule t'at t'e "ailure to atten t'e pre+trial !on"eren!e oes not result in t'e e"ault o" an absent party. =ner t'e 199> Rules o" %ivil Pro!eure, a e"enant is only e!lare in e"ault i" 'e "ails to le 'is 3ns-er -it'in t'e re$le*entary perio. n t'e ot'er 'an, i" a e"enant "ails to atten t'e pre+trial !on"eren!e, t'e plainti? !an present 'is evien!e e/ parte. 7usti!e Re$alao, in 'is boo, !larie t'at -'ile t'e orer o" e"ault no lon$er obtaine -'en a party "ails to appear at t'e pre+trial !on"eren!e, its e?e!ts -ere retaine. :'ere is no ispute t'at Spouses Salvaor an t'eir !ounsel "aile to atten t'e pre+trial !on"eren!e set on February 4, 2005 espite proper noti!e. Spouses Salvaor aver t'at t'eir non+ attenan!e -as ue to t'e "ault o" t'eir !ounsel as 'e "or$ot to upate 'is !alenar. :'is e/!use s*a!s o" !arelessness, an ini?eren!e to t'e pre+trial sta$e. t si*ply !annot be !onsiere as a &ustiable e/!use by t'e %ourt. 2. O) (he SPA. 3!!orin$ to 3rti!le 1990 o" t'e Ne- %ivil %oe, inso"ar as t'ir persons are !on!erne, an a!t is ee*e to 'ave been per"or*e -it'in t'e s!ope o" t'e a$ent@s aut'ority, i" su!' a!t is -it'in t'e ter*s o" t'e po-er o" attorney, as -ritten. Responents i not re!lessly enter into a !ontra!t to sell -it' Gonales. :'ere -as a vali SP3 so responents properly *ae pay*ents to Gonales, as a$ent o" petitioners8 an it -as as i" t'ey pai to t'e petitioners. O) G#)ae% "e+ei$( #f $a/e)( . t is o" no *o*ent, inso"ar as responents are !on!erne, -'et'er or not t'e pay*ents -ere a!tually re*itte to petitioners. 3ny internal *atter, arran$e*ent, $rievan!e or stri"e bet-een t'e prin!ipal an t'e a$ent is t'eirs alone an s'oul not a?e!t t'ir persons. O) (he +#)("a+( #f %ae. :'e %ourt a$rees -it' t'e !ourts belo- in nin$ t'at t'e !ontra!t entere into by t'e parties -as essentially a !ontra!t o" sale -'i!' !oul be valily res!ine. O) (he 'e+i%i#) f#" a")i%he)(. :'e a*ount o" P59;,400.00 ;. s'oul not be returne by petitioners. :'e $arnis'*ent ste*s "ro* an entirely i?erent !ase involvin$ an a!tion "or e&e!t*ent, an it oes not !on!ern t'e res!ission !ase -'i!' is on appeal be"ore t'is %ourt. :'e e!ision on t'e e&e!t*ent !ase is nal an e/e!utory an an entry o" &u$*ent 'as alreay been *ae. Not'in$ is *ore settle in la- t'an t'at -'en a nal &u$*ent is e/e!utory, it t'ereby be!o*es i**utable an unalterable. Responents *ust 'ave institute t'eir opposition to t'e e/e!ution pro!eein$ in t'at separate !ase -it' t'ey 'ave any ob&e!tion on t'e *anner an propriety o" t'e e/e!ution. :'ey !an, 'o-ever, invoe t'e le$al !o*pensation or set+o? uner 3rti!les 12>, 12>9 an 12>0 be!ause t'e t-o obli$ations appear to 'ave respe!tively o?set ea!' ot'er. 4. O) Daae%. No a-ar o" a!tual, *oral an e/e*plary a*a$es !an be sustaine by t'is %ourt. :'e lin$ alone o" a !ivil a!tion s'oul not be a $roun "or an a-ar o" *oral a*a$es. 3rti!le 2220 o" t'e Ne- %ivil %oe provies t'at to a-ar *oral a*a$es in a brea!' o" !ontra!t, t'e e"enant *ust a!t "rauulently or in ba "ait'. n t'is !ase, responents "aile to su
"rauulent *anner or -it' ba "ait'. A/e*plary a*a$es !annot be a-are too sin!e responents "aile to prove *oral or !o*pensatory a*a$es as reuire by 3rti!le 2229 o" t'e Ne- %ivil %oe be"ore e/e*plary a*a$es !an be a-are.
