Spouses Lam v. CA and Jose Lim

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G.R. No. 116220. December 6, 2000

SPOUSES ROY PO LAM and JOSEFA ONG PO LAM, Petitioners, v. COURT OF APPEALS and FELIX LIM now JOSE LEE, Respondents.

Facts:

Spouses Roy Po Lam and Josefa Ong Po Lam, as transferees pendente lite are not purchasers in good faith of lots, prime commercial lots located in the heart of Legaspi City. The court ordered them to reconvey said lots to private respondent Jose Lee. These were sold by Lim Kok Chiong. Later, Felix Lim and Lim Kok Chiongs brother filed a complaint with the then Court of First Instance of Albay against his brother and LAHCO to annul the deeds of sale covering said lots on the ground that the sale included pro-indiviso portion of the lots which Felix Lim had inherited from his foster parents. As to their motion for reconsideration, it remained in status quo until upon the retirement of Justice Purisima who once decided the case. The matter of the motion for reconsideration was assigned by raffle for study and the preparation of the appropriate action. The Court of Appeals affirmed the decision of the trial court in April 1980.

Issue:

Whether Po Lam spouses are purchasers in bad faith.

Held:

It must be stressed that the sole basis for finding petitioners to be purchasers in bad faith was the subsistence of the notice of lis pendens. The meaning, nature, recording, and effects of a notice of lis pendens are clearly stated in Section 14, Rule 13 of the 1997 Rules of Civil Procedure. The 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 decree shall have been entered; otherwise by successive alienations pending the litigation, its judgment or decree shall be rendered abortive and impossible of execution. The Motion for Reconsideration of petitioners-spouses Roy Po Lam and Josefa Ong Po Lam is GRANTED and declaring them to be PURCHASERS IN GOOD FAITH.