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ESPERANZA SALES BERMUDEZ v. HELEN S. GONZALES

This case has been cited 2 times or more.

	GR No. 176043 2014-01-15	SPS. BERNADETTE AND RODULFO VILBAR v. ANGELITO L. OPINION DEL CASTILLO, J.
Board of Directors of Dulos Realty at the time the transactions with the spouses Vilbar were entered into by the company. Evidence on record shows that the Deed of Absolute Sale dated June 1, 1981 covering Lot 20, as well as the Contract to Sell over Lot 21, was signed by Juan as President of Dulos Realty. Simply, spouses Vilbar cannot ascribe bad faith on the part of Gorospe, Sr. absent clear and convincing proof that he had knowledge of the said spouses' transactions with the company. As far as the Court is concerned, the evidence presented shows that Gorospe, Sr. had no knowledge of the transactions between Dulos Realty and the spouses Vilbar because it was Juan who executed and signed the documents. More importantly, the aforementioned Deed of Absolute Sale and Contract to Sell were not registered and annotated on the original titles in the name of Dulos Realty. Under land registration laws, the said properties were not encumbered then, and third parties need only to rely on the face of the duly issued titles. Consequently, the Court finds no bad faith on Gorospe, Sr.'s part when he bought the properties at public auction free from liens and encumbrances. It is worth stressing at this point that bad faith cannot be presumed. "It is a question of fact that must be proven"[83] by clear and convincing evidence. "[T]he burden of proving bad faith rests on the one alleging it."[84] Sadly,
	GR No. 135644 2001-09-17	GOVERNMENT SERVICE INSURANCE SYSTEM v. SPS. GONZALO AND MATILDE LABUNG-DEANG PARDO, J.
Since good faith is presumed and bad faith is a matter of fact which should be proved,[29] we shall treat GSIS as a party who defaulted in its obligation to return the owners' duplicate copy of the title. As an obligor in good faith, GSIS is liable for all the "natural and probable consequences of the breach of the obligation." The inability of the spouses Deang to secure another loan and the damages they suffered thereby has its roots in the failure of the GSIS to return the owners' duplicate copy of the title.