Instruction:

The case below has three (3) parties. The plaintiffs, defendants
and the intervenors.

Make a group of six (6), two groups will serve as the counsel for
each parties. There will be 2 presentations.

Make the best arguments that would best represent your clients
and your cause.

Presentation will be on August 12, 2017. Best of Luck!

FACTS OF THE CASE

A complaint was filed by plaintiffs JULIO ARDIENTE and EMILIA

ARDIENTE against defendants IVY AGUAS and CAMIA CRUZ, the plaintiffs
were the owner of the parcels of land which is the subject matter of this case;
That in these parcels of land is erected the conjugal house of plaintiffs which
cost more than twenty Million (P20,000,000.00) Pesos;
That in 2010, defendants, who were neighbours at Jose Abad Santos Street,
Kidapawan City and close friends of plaintiffs for more than ten (10) years, went to
the house of plaintiffs and convinced the plaintiff to sign a prepared deed of sale of
the above-mentioned parcels of land;
The defendants told plaintiffs, who were financially hard up at that time,
they would help plaintiffs secured a loan from One Network Bank at a lower
interest rate using said Deed of Sale. Both plaintiffs and defendants were, at that
time, aware that plaintiffs could not anymore avail a loan from One Network Bank
using the house and above-mentioned as collateral because they have existing loan
at bank Enterprise.
The plaintiffs initially refused to sign the said Deed of sale but were
eventually prevailed upon by assurances of the defendants that they could easily
destroy the said deed of sale just in case their planned loan with One Network Bank
would not push through. Hence, they signed the Deed of Sale;
That a month after, defendant Emilia Ardiente approached Ivy Aguas and
Camia Cruz and told them that the plan to avail loan with One Network Bank did
not push through because of the high requirements of the Capital Gains Tax by the
BIR;
The plaintiffs then asked for the fictitious Deed of Sale which they signed
and they were assured by defendant Flordeliza Delgado that she already destroyed
the said fictitious document;
On September 2011, plaintiff were exceedingly surprised when defendants
started to demand from plaintiffs to vacate the conjugal house, as well as the
parcels of land where it is erected, using the said fictitious Deed of Sale;
The defendants IVY AGUAS and CAMIA CRUZ, denied all the material
allegations and claimed that the truth in the matter is that all the subject properties
of the complaint were all conveyed by sale to herein defendants by virtue of a Deed
of Absolute Sale executed by the parties which were duly notarized.
That Sometime on February 2010, herein plaintiffs, went to the defendants
selling the aforementioned properties (house and Lot) at the price of P700,000.00
provided that they will pay the 8,000,000.00 mortgage loan with the Enterprise
Bank. To which the defendants agreed. Thats the time the defendants executed a
Deed of Absolute Sale. In furtherance, the defended presented a document
purported to be a Special power of Attorney in compliance with their agreement
that the defendants will be the one to redeem the mortgage properties in the
Enterprise Bank, Inc.
However, without the knowledge of the defendants the aforesaid properties
are in bad faith and by fraud, sold by plaintiffs to the spouses NAHT TING WONG
and SAM TING WONG of Davao City pursuant to the Deed of Sale executed on
June 1, 2011. The defendants viewed that the Deed of Absolute Sale executed in
their favour is valid and binding to the herein parties.
Consequently, the defendants filed a complaint-in-intervention against
NAHT TING WONG and SAM TING WONG claiming that the registration of the
afore-mentioned properties by the spouses Wong having knowledge that the said
properties were already sold to IVY AGUAS and CAMIA CRUZ is a clear
manifestation of Fraud, Malice, Misrepresentation and Bad Faith. Thus, it is
correct to conclude that the titles issued to the spouses Wong was fraudulently
procured and vitiated by bad faith.
NAHT TING WONG and SAM TING WONG as intervenors, claimed
that, the spouses lend money to Julio Ardiente and Emilia Ardiente and to secure
their indebtedness, the ardientes offered their parcels of land with residential
building erected thereon located at lanao, Kidapawan city which is the subject
matter of this case. They also made mention that if they could not pay off their
indebtedness in due time, they are very much amenable to a dacion en pago
arrangement. Apparently, when the titles for possible mortgage or dacion en pago,
the said titles were still mortgage in favour of the Enterprise Bank, Inc. thus, in
order for the spouses Wong to be able to get back the possession of the said titles,
they need to pay off their mortgage obligation. To which they agreed, and paid off
the obligation of the Ardientes before the Enterprise Bank with an aggregate
amount of P7, 292,777.82.
After paying the loan obligation, the titles over the subject properties were
released to the spouses, on strength of the Special Power of Attorney issued by the
Argentes.
On June 01, 2011, the Argentes executed a Joint Affidavit that they are
freely and voluntarily selling their properties in the favour of the sps Wong due to
their difficulty in complying with the agreement. On the same date, Sps. Wong and
the Argentes enetered into Deed of Absolute Sale for their properties for the
consideration of P5,000,000.00, in furtherance of the sales transaction, Sps.
Wong dutifully paid all the corresponding taxes and fees, which resulted to the
issuance of new titles. Upon perusal of the new titles, sps Wong was surprised when
they discovered that a notice of Adverse Claim was annotated therein, executed by
a certain Ivy Aguas.