Digested case 11

Adorable vs CA - 319 SCRA 200 G.R No. 119466 .

FACTS:
Saturnino Bareng own 2 lot No. 661-D-5A with area 20,000 sq mtr and lot No. 661-E w area 4,062sq mtr.
He and his son Francisco Bareng loan from Petitioner (Adorables) amounting 26k pesos and in return
they will transfer the possession and fruit of lot No. 661-E. Saturnino Bareng sold to his son Francisco
Bareng 18,500 sqr mtr from lot 661-D-A and his son sold to Jose Ramos a portion (3,000 sq mtr) of lot No
661-D-5A. Bareng failed to pay their indebtedness amounting to 56,385 pesos to the Petitioner.
Petitioner learned the contract between Franscisco Bareng and Jose Ramos. The Petitioner filed
annulment of contract between Bareng and Ramos, however on the said hearing date the Petitioner is
absent.

ISSUES:
(1) Whether or not the Petitioner has legal right to annul the contract between Francisco Bareng and
Jose Ramos
(2) Whether or not the CA erred in sustaining the decision of the lower court on the lack of cause of
action.

HELD:
(1) The Petitioner has no legal right to annul the contract between Francisco Bareng and Jose Ramos due
to none payment of the loan to the petitioner. The Petitioner must exhaust all legal means for Bareng to
paid the debt since Bareng has other property or other means to pay the said loan to the Petitioner. The
lesses ( Petitioner) has personal right but not real right therefore the lot is not subject for payment
unless it is the only property remained to the defendant.

(2) The CA has no error in sustaining the decision of the lower court since the petitioner does not appear
in the said date of hearing, thus the Petitioner wave his right to present evidence and cross examine by
the defendant council that resulted to the decision of the the lower court to dismiss n case for lack of
cause of action.