CASE DIGEST

https://www.moodyonthemarket.com/michigan-treasury-holds-unclaimed-property-auction-this-
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Submitted by:

Jacquilou G. Macasero
JD2
Liceo de Cagayan University

Submitted to:

Atty. Bonna E. Lora-Soriano

Professor, Civil Law-Sales
Case Topic: Sale by Auction

Case Doctrine:

Article 1476, paragraph 2 of the Civil Code provides:

Article 1476. In the case of a sale by auction:

(2) A sale by auction is perfected when the auctioneer announces its perfection by the
fall of the hammer, or in other customary manner. Until such announcement is made,
any bidder may retract his bid; and the auctioneer may withdraw the goods from the
sale unless the auction has been announced to be without reserve.

CASE DIGEST

DOMINGO A. DIZON, Petitioner

versus
ELPIDIO R. DIZON, Respondent

G. R. No. 156539 September 5, 2007

Ponente: Justice Sandoval-Gutierrez

Facts:

Domingo A. Dizon (Domingo) purchased a house and lot located on Limay St.,
Tondo, Manila from his nephew, Elpidio R. Dizon (Elpidio). Elpidio, however, did
not perform his part of the obligation by failing to deliver the house and lot to
Domingo. It appears that Elpidio’s brother, Ricardo, who is a co-owner of the lot, did
not give his written authority to sell his 1/2 share. Consequently, Domingo-petitioner
filed with the Regional Trial Court(RTC), Branch 41, Manila, a complaint for specific
performance and sum of money with damages against Elpidio, herein respondent.

RTC rendered a decision rescinding the the Contract of Sale entered by the parties and
ordering respondent to pay petitioner sum of money with damages.

RTC issued a Writ of Execution implemented by sheriff Cesar Cabildo who scheduled
the auction sale of respondent’s properties for the satisfaction of the judgement.
Petitioner’s attorney-in-fact participated in the auction sale as well as the respondent
and his counsel. Petitioner emerged as highest bidder of the said auction sale having
offered P180,000.00 for the two parcels of land which were attached by the sheriff.
The said proceeding, having been completed, was recorded in the Minutes of The
Sheriff’s Sale signed by both parties and their counsels. However, in the afternoon of
the same day, sheriff approached respondent asking him to agree and sign the
Supplemental Minutes on Sheriff’s Sale indicating a new bid of the two parcels of lot
amounting to P1,690,074.41 instead of the agreed amount of P180,000.00 to which
the respondent refused as it would then be difficult for him to redeem said property.
Respondent filed a Motion to Quash the Supplemental Minutes of the Sheriff’s Sale
which was denied by by the RTC.
Issue:

Whether or not the petitioner, being the highest bidder of the said auction sale, has the
option to amend his bid in order to conform to the amount awarded in his favor by the
trial court.

Ruling:

No. Article 1476, paragraph 2 of the Civil Code provides:

Article 1476. In the case of a sale by auction:

(2) A sale by auction is perfected when the auctioneer announces its perfection by the
fall of the hammer, or in other customary manner. Until such announcement is made,
any bidder may retract his bid; and the auctioneer may withdraw the goods from the
sale unless the auction has been announced to be without reserve.

The public auction held on April 3, 1997 which ended at 10:25 a.m., declared the
petitioner as the highest bidder having offered the amount of P180,000.00 for the
property. Considering that this has been perfected already, the supplemental sale with
higher consideration at the instance of the same party could no longer be validly
executed.