Escolar Documentos
Profissional Documentos
Cultura Documentos
, vs CA, Cebu
Asiancars et al
By:
Dexter Gary P. Flores
I Statement of the Legal Problem
Petitioner Graciano and Mamerta Jayme wants to redeem the mortgaged property
leased to Asiancars and was foreclosed by Metrobank by way of “dacion en pago”.
Metrobank, on the other hand, by way of Real Estate Mortgage foreclosed the
mortgage because the lessee failed to pay their obligations with Metrobank and
therefore giving the ownership of the building and the lot to Metrobank.
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III Highlights of the Case
Spouses Graciano and Mamerta Jayme are the registered owners of lot 2700, situated
in the Municipality of Mandaue, Cebu, consisting of 2,568 sq. m. and covered by
Transfer Certificate of Title No. 8290.
On January 8, 1973, hey entered into a Contract of Lease with George Neri, the
president of Airland Motors Corporation (now Cebu Asiancars Inc.) covering half of lot
2700. The lease was for twenty years.
The contract stipulates that Asiancars may used the leased premises as a collateral to
secure payment of a loan which Asiancars may obtain from any bank, provided that the
proceeds of the loan be used solely for the construction of a building which upon
termination of the lease shall automatically become the property of the Jayme spouses.
A Special Power of Attorney was then executed dated January 26,1974 in favor of
George Neri, who used the lot to secure a loan from the General Bank and Trust
Company. The loan was paid fully on August 14, 1977.
In October 1977, Asiancars obtained a loan of P6,000,000 from Metrobank. The entire
lot 2700 was offered as one of the several properties given as a collateral for the loan.
As mortgagors, the spouses signed a Deed of Real Estate Mortgage dated November
21, 1977, in favor of Metrobank. It stated that the deed was to secure the payment of a
loan obtained by Asiancars from the bank.
To assure the Jayme spouses, Neri and the other officers of Asiancars, executed an
undertaking. The undertaking states that Neri promised, in their personal capacities
and/or in representation of Cebu Asiancars, inc., to compensate Mr. & Mrs. Graciano
Jayme for any and all or whatever damage they may sustain or suffer by virtue and
arising out of the mortgage to Metrobank of the aforestated parcel of land. Neri also
wrote a letter dated September 1, 1981 addressed to Mamerta Jayme acknowledging
her “confidence and help” extended to him, his family and Asiancars. He promised to
pay the loan to Metrobank before it was due.
Asiancars have financial difficulties paying the loan and incurred an outstanding
balance on the loan. By way of Dacion en Pago, Asiancars conveyed ownership of the
building on the leased premises.
Eventually, Metrobank extrajudicially foreclosed the mortgage. A Certificate of Sale was
issued and was registered with the Registry of Deeds on February 23, 1981 in favor of
Metrobank who won the public auction.
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It is also decided by the court that the alienation of the building by Asiancars in favor
Metrobank is also valid by virtue of Dacion en Pago which is the delivery and
transmission of ownership of a thing by the debtor to the creditor as an accepted
equivalent of the performance of the obligation.