G.R. No. 52733. July 23, 1985 (Case Brief / Digest)

### Title: Pilar de Guzman, Rolando Gestuvo, and Minerva Gestuvo vs. The Hon. Court of Appeals, The Hon. Judge Pedro JL. Bautista, and Leonida P. Singh

### Facts:
This case involves a Contract to Sell entered into on February 17, 1971, between the petitioners (as sellers) and the private respondent Leonida P. Singh (as buyer), concerning two parcels of land in Pasay City, Philippines. Failing to receive certain requested documents from the petitioners, Singh filed a complaint for specific performance with damages, which was initially dismissed but later refiled as Civil Case No. 5247-P. The trial court dismissed the complaint due to failure to prosecute, prompting Singh to refile. The parties eventually submitted a compromise agreement approved by the trial court on November 29, 1977. When Singh allegedly failed to pay the agreed amount within the stipulated period, the petitioners sought execution of the agreement. However, the respondent judge denied the execution request, ruling that Singh had complied with the agreement’s terms. The petitioners’ later appeal was dismissed by both the trial court and the Court of Appeals for being inapplicable and defective. The petitioners then appealed to the Supreme Court.

### Issues:
1. Whether the judgment rendered according to the compromise agreement is appealable.
2. If the order of execution issued by the trial court varies from the terms of the judgment or lacks clarity.
3. Whether late filing or insufficiency of the record on appeal is ground for dismissing an appeal.
4. If Leonida P. Singh substantially complied with the terms of the compromise agreement.

### Court’s Decision:
The Supreme Court dismissed the petitioners’ appeal, lifting and setting aside the previously issued temporary restraining order. The Court elucidated that a judgment based on a compromise agreement is not appealable unless there’s an allegation of fraud, mistake, or duress. The Court further held that:
1. The parties both sought to have the compromise agreement implemented, indicating no dispute over its legality or enforceability.
2. The issue raised by the petitioners regarding compliance with the compromise agreement was fact-based but nonetheless appealable.
3. Since the original court record is elevated to the appellate court for most appeals, the necessity for a record on appeal does not apply, thus not justifying dismissal of the appeal for being late or insufficient.
4. The Court agreed with the trial court’s finding that Singh had substantially complied with the terms of the compromise agreement, attributing any failure to meet the specific deadline to the petitioners’ own actions.

### Doctrine:
The decision reiterates the doctrine that judgments based on compromise agreements are immediately executory and not appealable, except under specific conditions such as allegations of mistake, fraud, or duress. It also highlighted the non-necessity of a record on appeal in most appellate procedures, except under specified exceptions.

### Class Notes:
– **Judgment on Compromise:** A judgment rendered as per a compromise agreement is not appealable. It becomes executory unless contested for fraud, mistake, or duress.
– **Order of Execution and Appealability:** An order for the execution of a judgment is generally not appealable unless it is opined that it varies or misinterprets the terms of the judgment.
– **Filing for Appeal:** For most cases, the physical submission of a record on appeal is not needed, unless specified by the Rules of Court, like in multiple appeals or special proceedings.
– **Compliance with Compromise Agreement:** Substantial compliance, impacted by actions of the opposing party preventing full compliance, can be considered as fulfilling the agreement’s terms.

### Historical Background:
This case is set against the backdrop of contractual obligations in property transactions in the Philippines, particularly emphasizing the enforceability and execution of compromise agreements. It provides clarity on procedural aspects regarding appeals related to such agreements, showing the judiciary’s stance on ensuring the efficient and fair execution of justice based on agreements reached by parties out of court.


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