In the Philippines, a petition for annulment of judgment is an exceptional remedy to void a final and executory judgment. The Supreme Court in Remedios Antonino v. The Register of Deeds of Makati City and Tan Tian Su, G.R. No. 185663, June 20, 2012, reiterated that this remedy is strictly limited to cases where there is extrinsic fraud or lack of jurisdiction and is not a substitute for a lost appeal. This means that parties cannot use annulment to re-litigate issues or correct errors they should have addressed through timely appeals. Only when a judgment is fundamentally void due to fraud or jurisdictional defects can it be overturned, ensuring the stability and finality of court decisions.

Locked Out: When Can a Final Judgment Be Challenged?

The case of Remedios Antonino versus Tan Tian Su revolves around a dispute over a property in Makati City. Antonino, who had been leasing the property from Su since 1978 with a right of first refusal, filed a complaint seeking to enforce an agreement to sell the property to her. The Regional Trial Court (RTC) dismissed Antonino’s complaint due to improper venue and non-payment of the correct docket fees. Antonino then filed a petition for annulment of judgment with the Court of Appeals (CA), arguing that the RTC committed grave abuse of discretion. The CA dismissed the petition, and the case reached the Supreme Court.

The Supreme Court emphasized that the remedy of annulment of judgment is an equitable recourse available only in exceptional circumstances. It is governed by Rule 47 of the 1997 Rules of Civil Procedure, which explicitly provides only two grounds for annulment: extrinsic fraud and lack of jurisdiction. The Court reiterated that this remedy cannot be used as a substitute for a lost appeal. As the Supreme Court elucidated in Ramos v. Judge Combong, Jr.:

Annulment of judgment is a recourse equitable in character, allowed only in exceptional cases as where there is no available or other adequate remedy. Rule 47 of the 1997 Rules of Civil Procedure, as amended, governs actions for annulment of judgments or final orders and resolutions, and Section 2 thereof explicitly provides only two grounds for annulment of judgment, i.e., extrinsic fraud and lack of jurisdiction.

Building on this principle, the Court clarified that only void judgments, due to “extrinsic fraud” or the court’s lack of jurisdiction, are subject to annulment. Extrinsic fraud refers to fraud that prevents a party from having a fair trial, while lack of jurisdiction means the court did not have the authority to hear the case. The Supreme Court in Barco v. Court of Appeals clarified:

The law sanctions the annulment of certain judgments which, though final, are ultimately void. Annulment of judgment is an equitable principle not because it allows a party-litigant another opportunity to reopen a judgment that has long lapsed into finality but because it enables him to be discharged from the burden of being bound to a judgment that is an absolute nullity to begin with.

The Court also emphasized that a party seeking annulment must demonstrate that ordinary remedies, such as appeal, are no longer available through no fault of their own. In Antonino’s case, the Supreme Court found her recourse to annulment seriously flawed. She failed to explain why she did not appeal the RTC’s initial order dismissing her complaint, and instead filed a second motion for reconsideration, which is not allowed. The Court emphasized that it cannot be used to circumvent the consequences of neglecting to use available remedies.

The Supreme Court also addressed Antonino’s argument that the RTC committed grave abuse of discretion. The Court clarified that grave abuse of discretion is not a ground for annulment of judgment. The Court drew a distinction between jurisdiction and the exercise of jurisdiction, citing Republic of the Philippines v. “G” Holdings, Inc. The Court explained that “lack of jurisdiction” pertains to the court’s authority over the person or the subject matter, not errors in judgment.

In fact, the Supreme Court affirmed the RTC’s classification of Antonino’s action as personal, and its finding that the case was filed in the wrong venue. The Court explained that a personal action is based on privity of contracts, where the plaintiff seeks recovery of personal property, enforcement of a contract, or damages. A real action, on the other hand, involves the recovery of ownership or possession of real property.

Antonino’s amended complaint sought to enforce the Undertaking Agreement, which the Court deemed a personal action. The Court emphasized that even if a contract of sale exists, it does not automatically transfer title to the property. Ownership is transferred through delivery, either actual or constructive, and Antonino did not claim ownership in her complaint. That there is a private document supposedly evidencing the alleged sale does not confer to Antonino title to the subject property. As such, the Supreme Court agreed with the lower courts and denied Antonino’s petition, upholding the finality of the RTC’s decision.

FAQs

What is annulment of judgment?	It is an equitable remedy to nullify a final judgment, available only under specific circumstances.
What are the grounds for annulment of judgment?	The two grounds are extrinsic fraud (fraud preventing a fair trial) and lack of jurisdiction.
Can I use annulment if I missed the appeal period?	No, annulment cannot substitute for a lost appeal due to negligence or error.
What is extrinsic fraud?	Extrinsic fraud is fraud that prevents a party from presenting their case in court.
What does “lack of jurisdiction” mean?	It means the court did not have the legal authority to hear the case.
Is grave abuse of discretion a ground for annulment?	No, grave abuse of discretion is not a valid ground for annulment of judgment.
What is a personal action?	A personal action seeks recovery of personal property, enforcement of a contract, or damages.
What is a real action?	A real action involves the recovery of ownership or possession of real property.
Does a contract of sale transfer ownership automatically?	No, ownership is transferred through delivery, either actual or constructive.

The Supreme Court’s decision in Antonino v. Su reinforces the principle that final judgments should not be easily disturbed. The remedy of annulment of judgment is reserved for exceptional cases where fundamental fairness and justice require it, ensuring that the stability of judicial decisions is maintained. In future disputes, litigants must be aware of the strict requirements for annulling a judgment and prioritize timely appeals to protect their rights.

For inquiries regarding the application of this ruling to specific circumstances, please contact ASG Law through contact or via email at frontdesk@asglawpartners.com.

Disclaimer: This analysis is provided for informational purposes only and does not constitute legal advice. For specific legal guidance tailored to your situation, please consult with a qualified attorney.
Source: Remedios Antonino v. The Register of Deeds of Makati City and Tan Tian Su, G.R. No. 185663, June 20, 2012