Ong-Yu V Pacleb Gr172172

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ONG YU vs.

PACLEB
580 SCRA 197 February 24, 2009

PUNO, C.J.:

FACTS:

The present action is an action for specific performance and


damages filed by petitioner spouses against Javier to compel
performance of the latter’s undertakings under their
Contract to Sell. A decision was rendered therein at the RTC
acknowledging Langcaan, not a party in the case, as the
rightful owner of the property in dispute. Petitioner spouses
argue that the decision of the Regional Trial Court as to the
rightful owner of the Langcaan Property is conclusive and
binding upon respondent even if the latter was not a party
thereto since it involved the question of possession and
ownership of real property, and is thus not merely an action
in personam but an action quasi in rem.

ISSUE:

Whether or not the present action is a proceeding in rem or


in personam

RULING:

The settled rule is that the aim and object of an action


determine its character. Whether a proceeding is in rem, or
in personam, or quasi in rem for that matter, is determined
by its nature and purpose, and by these only. A proceeding
in personam is a proceeding to enforce personal rights and
obligations brought against the person and is based on the
jurisdiction of the person, although it may involve his right
to, or the exercise of ownership of, specific property, or seek
to compel him to control or dispose of it in accordance with
the mandate of the court. The purpose of a proceeding in
personam is to impose, through the judgment of a court,
some responsibility or liability directly upon the person of
the defendant. Of this character are suits to compel a
defendant to specifically perform some act or actions to
fasten a pecuniary liability on him. An action in personam is
said to be one which has for its object a judgment against
the person, as distinguished from a judgment against the
propriety to determine its state. It has been held that an
action in personam is a proceeding to enforce personal
rights or obligations; such action is brought against the
person.

On the other hand, a proceeding quasi in rem is one brought


against persons seeking to subject the property of such
persons to the discharge of the claims assailed. In an action
quasi in rem, an individual is named as defendant and the
purpose of the proceeding is to subject his interests therein
to the obligation or loan burdening the property. Actions
quasi in rem deal with the status, ownership or liability of a
particular property but which are intended to operate on
these questions only as between the particular parties to the
proceedings and not to ascertain or cut off the rights or
interests of all possible claimants. The judgments therein are
binding only upon the parties who joined in the action.

The present action’s object is to compel Javier to accept the


full payment of the purchase price, and to execute a deed of
absolute sale over the Langcaan Property in their favor. The
obligations of Javier under the contract to sell attach to him
alone, and do not burden the Langcaan Property. Being a
judgment in personam, the civil case is binding only upon
the parties properly impleaded therein and duly heard or
given an opportunity to be heard. Therefore, it cannot bind
respondent since he was not a party therein. Neither can
respondent be considered as privy thereto since his
signature and that of his late first wife, Angelita Chan, were
forged in the deed of sale.

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