Agustin & Leoncia DORMITORIO, petitioners, vs. Hon.

Jose FFERNANDEZ, ⇒ The presence of animus novandi is undeniable nor is there anything novel
CFI Negros Occidental Branch V Judge and Serafin Lazalita, respondents in such an approach. When after judgment has become final, facts &
[1976] circumstances transpire w/c render its execution impossible/unjust, the
interested party may ask the court to modify/alter the judgment to
⇒ Municipality of Victorias owns several parcels of lands in Victorias, Negros harmonize the same w/justice & the facts (Moilna vs .de la Riva). In this
Occidental. It was sold to its inhabitants either in cash/installment for 10 yrs case, we have a stronger case since there is a later decision expressly
at P1.00/sq meter. superseding the decision in the ejectment case.
⇒ On Dec. 7, 1948, Lazalita bought Lot No. 1, Block 16 w/an area of 230 sq. ⇒ The agreement was a result of a compromise w/c had the effect of res
meters. Upon full payment, a deed of definite sale and a certificate of title judicata. Thus, the parties were bound by it. There was an element of bad
were executed in favor of buyer. He possessed the land for 8 continuous faith when the sps tried to evade its terms.
years & he introduced permanent & valuable improvements thereon. ⇒ The sps can’t claim that they were not informed by Judge Fernandez about
⇒ 1955: Sps Dormitorio bought Lot No. 2, Block 16 from the Municipality w/an Lazalita’s motion to set aside the writ of execution. The sps filed a MFR
area of 343 sq.meters. They were able to obtain a transfer Certificate of which in effect cured the failure to notify them.
Title although they have not taken actual possession of said property. They
subsequently filed an ejectment suit against Lazalita. Upon investigation, it Holding: Petition dismissed.
was discovered that the land originally bought by Lazalita was converted
into a municipal road (Jover St.) and the lot he was occupying actually
belonged to the sps.
⇒ CFI: ordered Lazalita to vacate the place & pay a monthly rental of P20.00
to Dormitorio.
⇒ Lazalita filed a case against the Municipality since the value of his
permanent improvements & building introduced/constructed on the
Dormitorios’ lot have far exceeded the original purchase price of the land.
Based on the land’s fair market value, it is now saleable at present at
P20.00/sq. meter. The Municipality agreed to amicably settle the case by
giving Lazalita another lot if they could open their newly proposed
subdivision or pay him back the amount necessary & just for him to acquire
another lot for his residence & for the expenses of transferring his present
residential house thereto.
⇒ The parties in the ejectment case agreed that the decision in that case
would no longer be enforced & executed in relation to the amicable
settlement reached by Lazalita & the municipality.
⇒ However, by means of fraud, misrepresentation & concealment of the true
facts of the case, the sps were able to mislead the court thru an ex-parte
motion to issue by mistake an Order for the issuance of a Writ of Execution
by making the court believe that the former decision was still enforceable &
executory.
⇒ Lazalita then filed a petition to set aside the writ of execution w/c was
granted by the CFI. The CFI ruled that the compromise agreement as
evidenced by the agreed stipulation of facts was a clear proof of animus
novandi & superseded the first court order in the ejectment case.

Issue & Ratio: WON there was novation in this case. – YES.
⇒ The compromise agreement created new rts & obligations between the
parties w/c naturally superseded the judgment of the municipal court. The
judge properly set aside the writ of execution mistakenly issued.