In a legal dispute involving property rights, the Supreme Court clarified when a partial summary judgment can be challenged immediately. The Court held that while partial summary judgments are generally not appealable until the entire case is decided, an exception exists. If a trial court issues a partial summary judgment with grave abuse of discretion—essentially ignoring clear issues or violating established legal procedures—the aggrieved party can file a petition for certiorari under Rule 65 of the Rules of Court to seek immediate review.

Diplomatic Area Dispute: Can a Tax Declaration Be Separated From Ownership?

The case revolves around a land dispute in Fort Bonifacio, Taguig, involving the Bases Conversion and Development Authority (BCDA) and private claimants Pedro S. Callangan, Jr., and Elizabeth Barba-Azares. Callangan et al. claimed ownership of properties within the Diplomatic and Consular Area (DCA), relying on titles dating back to 1976. The BCDA, however, asserted that the land was state-owned, designated for diplomatic purposes, and under its administration per Presidential Proclamation No. 1725.

In 2017, Callangan et al. sued the BCDA and the City Assessor to recover possession of the land, cancel the BCDA’s tax declarations, and obtain new tax declarations in their favor. They argued that since they had submitted all the required documents, the City Assessor’s duty to issue the tax declaration was ministerial. The Regional Trial Court (RTC) granted a partial summary judgment, ordering the City Assessor to issue tax declarations to Callangan et al.’s predecessors-in-interest. The BCDA questioned the RTC’s decision, leading to the Supreme Court’s intervention.

The central issue before the Supreme Court was whether the RTC correctly granted the partial summary judgment. This depended on several sub-issues: whether the BCDA used the correct legal remedy, whether genuine issues of fact existed, whether Callangan et al. were legally entitled to the tax declaration, and whether the BCDA had the right to challenge the judgment.

The Supreme Court began by discussing summary judgments under Rule 35 of the Rules of Court. A summary judgment is appropriate when the pleadings, affidavits, and other evidence show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. A **partial summary judgment** resolves some issues but not the entire case.

The Court clarified the remedies available to challenge a summary judgment. A **full summary judgment**, which fully disposes of the case, is considered a final judgment and can be appealed under Rule 41. However, a **partial summary judgment**, being interlocutory, generally cannot be appealed separately. Instead, it is reviewed alongside the final judgment on the entire case.

However, the Court emphasized that this general rule has an exception. A partial summary judgment can be immediately challenged through a petition for certiorari under Rule 65 if it was issued with **grave abuse of discretion**. Grave abuse of discretion occurs when a court exercises its judgment in a capricious, whimsical, or arbitrary manner, amounting to a lack of jurisdiction. The Court clarified that the availability of certiorari is a mutually exclusive remedy. After the trial on the entire case has been completed, an aggrieved party cannot pursue an appeal and a petition for certiorari at the same time.

The Court noted that a Rule 45 petition is only available to assail a full summary judgment and not a partial summary judgment because of its interlocutory nature. This is because review under a Rule 45 petition is discretionary upon the Court and will only be granted when there are special and important reasons warranting consideration. This is consistent with the doctrine of hierarchy of courts.

Turning to the specifics of the case, the Supreme Court found that the RTC had indeed committed grave abuse of discretion. The RTC had overlooked a critical issue: the validity of Callangan et al.’s ownership claim. The BCDA had presented arguments questioning the authenticity of Callangan et al.’s titles and asserting state ownership of the land.

The Supreme Court also cited Tallorin v. Tarona, emphasizing the link between ownership and tax declarations. Ownership of property cannot be isolated from one’s entitlement to a tax declaration. A claim of ownership is the foundation of its issuance.

The reason is simple: a tax declaration is a primary evidence, if not the source, of the right to claim title of ownership over real property, a right enforceable against another person.

The Supreme Court highlighted several red flags that the RTC had ignored: the overlap between Callangan et al.’s claimed properties and the DCA, the BCDA’s existing tax declaration, the delay in seeking a tax declaration, and the fact that the request was made by transferees, not the registered owners. These circumstances should have prompted the RTC to recognize the existence of genuine issues requiring a full trial.

Furthermore, the Court found that Callangan et al. had not demonstrated their legal entitlement to a tax declaration. The requirements for issuing a new tax declaration include presenting a certified copy of a free patent, homestead, or miscellaneous sales application. Callangan et al. had only presented a certificate of title and an approved subdivision plan, falling short of the legal requirements. The Court emphasized that the City Assessor has a duty to examine documents and exercise discretion, which means the role is not purely ministerial.

The Supreme Court disagreed with the argument that the motion for partial judgment was only directed against the City Assessor. They stated that the cancellation of the BCDA’s tax declaration was intertwined with the issuance of the new tax assessment. The Court then cited the Manual on Real Property Appraisal and Assessment Operations of the Bureau of Local Government Finance, which states the guidelines when several assessments are made on the same property.

In conclusion, the Supreme Court held that the RTC had gravely abused its discretion by granting the partial summary judgment. A tax declaration should not have been issued without resolving the genuine issues of ownership through a full-blown trial. The Court reversed the RTC’s orders, underscoring the importance of carefully considering all relevant facts and ensuring compliance with legal procedures before granting summary relief.

What was the key issue in this case?	The key issue was whether the Regional Trial Court (RTC) correctly granted a partial summary judgment directing the issuance of tax declarations without resolving the underlying issue of property ownership.
What is a partial summary judgment?	A partial summary judgment is a court order that resolves some issues in a case but not all, leaving other matters to be decided later, usually through a trial.
When can a partial summary judgment be challenged immediately?	A partial summary judgment can be immediately challenged through a petition for certiorari if it was issued with grave abuse of discretion, meaning the court acted arbitrarily or beyond its jurisdiction.
What is grave abuse of discretion?	Grave abuse of discretion means a court exercised its judgment in a capricious, whimsical, or arbitrary manner, amounting to a lack of jurisdiction or a disregard for established legal principles.
Why did the Supreme Court reverse the RTC’s decision?	The Supreme Court reversed the decision because the RTC failed to consider the genuine issue of property ownership and did not follow the proper legal requirements for issuing tax declarations.
What is the role of the City Assessor in issuing tax declarations?	The City Assessor has a duty to examine the documents presented and exercise discretion, not just to perform a purely ministerial function. This includes ensuring that the applicant has a valid claim to the property.
What is the relationship between property ownership and tax declarations?	A tax declaration is closely tied to property ownership because it serves as primary evidence of a person’s claim to the property, making ownership a crucial factor in issuing tax declarations.
What documents are needed for the issuance of a new tax declaration for titled property?	The documents needed include: a certified copy of free patent, homestead, or miscellaneous sales application; a certified true copy of the title issued by the Registrar of Deeds; and an approved survey plan.
What is the significance of Presidential Proclamation No. 1725 in this case?	Presidential Proclamation No. 1725 declared certain parcels of land as alienable and disposable, placing them under the administration of the BCDA, which influenced the dispute over the properties’ ownership.

This case serves as a reminder to lower courts about exercising caution when issuing summary judgments, especially when property rights are at stake. The Supreme Court’s decision highlights the critical importance of carefully considering all relevant facts and ensuring compliance with legal procedures. It also confirms that grave abuse of discretion in issuing a partial summary judgement opens the door to a petition for certiorari.

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: BCDA vs. Callangan, G.R. No. 241168, August 22, 2022