be successfully proved in court. Facts are supported by evidence Founded on applicable law Consistent with the remedies and reliefs availed of under the Rules of Court 1
Case Theory, defined
Particular line of reasoning adopted by a party to a suit that aims to being together the facts of the case in a logical sequence and correlate them in a manner that produce in the mind a definite conclusion that may entitle him to the judgment prayed for based on certain principles of law; 2
Notes on Case Theory
It is the foundation of a case; Pleadings must be drawn in accordance with the theory; Introduction of evidence is in accordance with the theory; The theory remains consistent, constant through trial and appeal till the termination of the case; 3
Certain Rules on Case
Theory As a rule, the theory formulated in the pleadings binds the litigant and is not allowed to be changed till the termination of the case; Amendment of pleading as a matter of right before the service of a responsive pleading (or if no responsive pleading is permitted, before the action is placed in trial calendar); Thereafter, by leave of court; this may be refused if the theory is substantially altered;
Hypothetical Case, as Civil
Case Facts gathered from client, witnesses and other evidence A borrowed P50K from B; To secure the payment, A executed a sale of land in favor of B with the right to repurchase for a period of one year; Land has an area of 10 hectares covered by TCT in As name; B registered the instrument; A defaulted on payment and failed to redeem the land; B had had the property judicially consolidated in his name; Upon Bs demand, A refused to vacate the property and B is compelled to file an action for recovery of possession as well as ownership;
B seeks your services as legal counsel;
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Study of the Case
The document between A and B is a pacto de retro sale; Bs intention was not to sell the land but merely use it as security for the loan; The value of the land is currently P100,000 to P300,000 per hectare, or a total of P1 to 3 million; B remained in possession of the property and is in fact refusing to vacate the property; 6
Study of the Case,
Article 1602 of the Civil Code provides: The contract shall be presumed to be an equitable mortgage in any of the following cases: 1) When the price of the sale with the right to repurchase is unusually inadequate; 2) When the vendor remains in possession as lessee or otherwise; xxx 6) In any other case, where it may be fairly inferred that the real intention of the parties is that the transaction shall secure the payment of a debt or the performance of any other obligation. 7
Developing the Case Theory
The nature of the transaction and real intention of the parties is equitable mortgage, not a sale with the right to repurchase; Interpose affirmative defenses attuned to the theory of equitable mortgage in the responsive pleadings; Reliefs rescission of the contract; restore parties to their former status; order B to surrender the certificate of title to ROD for cancellation and issuance of a TCT in As name; damages; attorneys fees; costs of suit; 8
Developing the Case
Theory, Defendant A to b ordered to return to plaintiff the amount with legal interest until actual payment is made. Reference: Legal Counseling With Notes On: Practicum and Practice Court by Recaredo P. Barte, 2006 Edition, pages 75-77. [END OF SLIDES] 9