Double Sale
Facts:
Petitioner Marcelita Co brought two parcels of land. She sold one of the lots and the other lot was titled in the name of her brother Ruperto Padonan as a trustee of the property and a house was constructed thereon. In furtherance of their trust agreement, Ruperto executed a deed of absolute sale in favor of Marcelita who took possession of the house and lot. The deed of sale however was not registered. More than a year later, Ruperto executed another deed of sale of the house and lot registered in his name in favor of the respondent Eduardo Memije who was unable to take possession of the properties because the petitioners are occupying the same. Respondent now sued for recovery of possession and quieting of title but it was dismissed. Thereafter they filed petition for writ of possession in the original land registration proceeding, which the lower court issued but was set aside by the appellate court. Petitioner now filed an action to annul the deed of sale and title against the respondents before the RTC of Caloocan City. This was dismissed on ground of improper venue. Respondents filed for the recovery of possession of the property and the petitioner raised the affirmative defense of fraud on their ownership of the property and interposed the same as compulsory counterclaim instead of re-filing a separate action for annulment of the deed of sale executed in favor of the respondents.
Lower court: ruled against petitioner
