CA orders firm of ex-Oriental Mindoro rep Valencia to return land
The Court of Appeals (CA) has upheld a ruling of trial court which ordered the real estate firm of former Oriental Mindoro representative Rodolfo Valencia to return a land in Batangas to its owner.
The CA has issued a decision was turned down the petition of RGV Development Corporation (RGVDC) to reverse the 2017 ruling of the Batangas City regional trial court (RTC) which ordered the firm and the Philippines Retirement and Separation Benefits System (AFP-RSBS) to reconvey a 150-hectare land to its original owner, Group Developers, Inc. (GDI).
The GDI filed the case after discovering that the AFP-RSBS posted a newspaper advertisement saying that it was offering shares of stocks of the Monterossa Development Corporation (MDC) for the property in Nasugbu, Batangas worth at P892.5 million. MDC is a subsidiary of RGVDC.
The appelate court pointed out the RTC was correct in its ruling considering GDI only received P1 million as earnest money out of the P321.6 million of the property’s price.
Because of this, the appelate court ruled “RGVDC’s non-compliance with their obligation constituted non-payment of the full purchase price, and consequently, a breach of contract on their part.”
“Here, GDI opted to have the contracts rescinded, which is well within its right,” the CA said.
Under the memoranda of understanding (MOAs) executed in 1997 and 1999, portions of the payment was supposed to be distributed to the informal settlers in the amaount of P117.16 million; P129.47 to be spent for the development of relocation sites for informal settlers; P55 million to the Bangko Sentral ng Pilipinas (BSP) for the partial payment of the GDI’s loan to the Manila Banking Coporation; and P16.6 million for the legal and miscellaneous expenses.