Adorable vs CA - 319 SCRA 200 G.R No. 119466 .

FACTS:

Saturnino Bareng own 2 lot No. 661-D-5A with area 20,000 sq mtr and lot
No. 661-E w area 4,062sq mtr. He and his son Francisco Bareng loan from
Petitioner (Adorables) amounting 26k pesos and in return they will transfer
the possession and fruit of lot No. 661-E. Saturnino Bareng sold to his son
Francisco Bareng 18,500 sqr mtr from lot 661-D-A and his son sold to Jose
Ramos a portion (3,000 sq mtr) of lot No 661-D-5A. Bareng failed to pay their
indebtedness amounting to 56,385 pesos to the Petitioner. Petitioner learned
the contract between Franscisco Bareng and Jose Ramos. The Petitioner
filed annulment of contract between Bareng and Ramos, however on the
said hearing date the Petitioner is absent.

ISSUES:

(1) Whether or not the Petitioner has legal right to annul the contract between
Francisco Bareng and Jose Ramos

(2) Whether or not the CA erred in sustaining the decision of the lower court
on the lack of cause of action.

HELD:

(1) The Petitioner has no legal right to annul the contract between Francisco
Bareng and Jose Ramos due to none payment of the loan to the petitioner.
The Petitioner must exhaust all legal means for Bareng to paid the debt since
Bareng has other property or other means to pay the said loan to the
Petitioner. The lesses ( Petitioner) has personal right but not real right
therefore the lot is not subject for payment unless it is the only property
remained to the defendant.
(2) The CA has no error in sustaining the decision of the lower court since
the petitioner does not appear in the said date of hearing, thus the Petitioner
wave his right to present evidence and cross examine by the defendant
council that resulted to the decision of the the lower court to dismiss n case
for lack of cause of action.