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Legal Implications of Lis Pendens

This case discusses whether a notice of lis pendens constitutes a lien or encumbrance on a property. The court ruled that a notice of lis pendens is not a lien or encumbrance, but rather serves as a warning to potential buyers or mortgagees that the property is involved in ongoing litigation, and that they proceed at their own risk. A notice of lis pendens aims to protect the rights of the party in litigation by keeping control over the property until the resolution of the case to avoid successive alienations that could make a judgment impossible to execute.

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245 views1 page

Legal Implications of Lis Pendens

This case discusses whether a notice of lis pendens constitutes a lien or encumbrance on a property. The court ruled that a notice of lis pendens is not a lien or encumbrance, but rather serves as a warning to potential buyers or mortgagees that the property is involved in ongoing litigation, and that they proceed at their own risk. A notice of lis pendens aims to protect the rights of the party in litigation by keeping control over the property until the resolution of the case to avoid successive alienations that could make a judgment impossible to execute.

Uploaded by

Gia Dimayuga
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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314. People v. RTC of Manila, GR 81541, Oct.

4, 1989, 178 SCRA 299

FACTS

On September 20, 1980, the private respondents sold several parcels of land located in
Dasmariñas, Cavite, in favor of Ricardo Silverio. These parcels were at that time
registered in the names of the private respondents. One of the parcels, covered by
Transfer Certificate of Title No. T-110942 of the Registry of Deeds for the province of
Cavite, is the subject matter of a litigation between the private respondents and Pedro
Caragao and his co-owners for reconveyance and cancellation of title and damages
docketed as Civil Case No. TG-493 before Branch XVIII of the Regional Trial Court of
Cavite in Tagaytay City.

Pedro Caragao then caused the annotation of a notice of lis pendens at the back of the
original of the Transfer Certificate of Title (T.C.T.) of the parcel of land under litigation,
on file in the Register of Deeds for the province of Cavite, without the knowledge of the
private respondents. Hence, the owners’ (private respondents’) copy of the title in
question did not bear any annotation of such notice of lis pendens.

ISSUE

Whether or not notice of lis pendens is a lien or encumbrance?

RULING

No. Notice of lis pendens is not a lien or encumbrance but a mere notice. Lis pendens is
a Latin term which literally means a pending suit or a pending litigation while a notice of
lis pendens is an announcement to the whole world that a particular real property is in
litigation, serving as a warning that one who acquires an interest over the said property
does so at his own risk, or that he gambles on the result of the litigation over the said
property. It is but a signal to the intending buyer or mortgagee to take care or beware
and to investigate the prospect or non-prospect of the litigation succeeding before he
forks down his money. Notice of lis pendens has been conceived and, more often than
not, availed of, to protect the real rights of the registrant while the case involving such
rights is pending resolution or decision. With the notice of lis pendens duly recorded,
and remains uncancelled, he could rest secure that he would not lose the property or
any part of it during the litigation." [T]he doctrine of lis pendens is founded upon reason
of public policy and necessity, the purpose of which is to keep the subject matter of the
litigation within the power of the Court until the judgment or the decree shall have been
entered; otherwise, by successive alienations pending the litigation, its judgment or
decree shall be rendered abortive and impossible of execution.

315. People v. RTC of Manila, GR 81541, Oct. 4, 1989, 178 SCRA 299
(same case as Case No. 314)

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