G.R. No.

105188 January 23, 1998

MYRON C. PAPA, Administrator of the Testate Estate of Angela M. Butte, petitioner,
vs.
A.U. VALENCIA and CO. INC., FELIX PEARROYO, SPS. ARSENIO B. REYES & AMANDA SANTOS, and
DELFIN JAO, respondents

Facts:
The case arose from a sale of a parcel of land allegedly made to private respondent Penarroyo by petitioner
acting as attorney-in-fact of Anne Butte. The purchaser, through Valencia, made a check payment in the amount of
P40,000 and in cash, P5,000. Both were accepted by petitioner as evidenced by various receipts. It appeared that the
said property has already been mortgaged to the bank previously together with other properties of Butte.
When Butte passed away, the private respondent Penarroyo now demanded that the title to the property be
conveyed to him, however the bank refused. Hence, the filing of a suit for specific performance by private respondents
against the petitioner. The lower court ruled in favor of the private respondents and ordered herein petitioner the
conveyance or the property or if not, its payment. The petitioner appealed the lower court's decision alleging that the sale
was not consummated as he never encashed the check given as part of the purchase price.
The Court of Appeals affirmed with modifications the lower court's decision. It held that there was a consummated
sale of the subject property despite.

ISSUE: WON the estate of Angela M. Butte is not an indispensable party

HELD: NO.
The estate of Angela M. Butte is not an indispensable party. Under Section 3 of Rule 3 of the Rules of Court, an
executor or administrator may sue or be sued without joining the party for whose benefit the action is presented or
defended, thus:
Sec. 3. Representative parties. A trustee of an express trust, a guardian, executor or
administrator, or a party authorized by statute, may sue or be sued without joining the party for
whose benefit the action is presented or defended; but the court may, at any stage of the
proceedings, order such beneficiary to be made a party. An agent acting in his own name and for the
benefit of an undisclosed principal may sue or be sued without joining the principal except when the
contract involves things belonging to the principal. 16
Neither is the estate of Ramon Papa, Jr. an indispensable party without whom, no final determination of the action
can be had. Whatever prior and subsisting mortgage rights the estate of Ramon Papa, Jr. has over the property may
still be enforced regardless of the change in ownership thereof.
WHEREFORE, the petition for review is hereby DENIED and the Decision of the Court of Appeals, dated 27
January 1992 is AFFIRMED.