SPOUSES MARIA AND FERNANDO SAMBAJON, PETITIONERS, VS. HON. JUDGE EDUARDO TUTAAN, PRESIDING JUDGE OF THE COURT OF FIRST INSTANCE OF RIZAL, BRANCH V, QUEZON CITY, AND MERRYLAND DE…

On April 15, 1977, or before this Court’s resolution of March 24,
1977 became final (the petitioners filed a motion for an extension up to April
30, 1977 within which to file a motion for reconsideration, which motion is hereby
granted), the parties, assisted by their lawyers, submitted the following pleading:

“COMPROMISE
AGREEMENT

“The PARTIES, assisted by their respective counsel, most
respectfully submit the following stipulations:

“1.  That petitioners recognize the validity of the
redemption made by the private respondent of the property in question from the
Government Service Insurance System in the amount of P298,558.90 without
admitting the foreclosure of the GSIS to be valid;

“2.  That petitioners recognize and admit that in
redeeming the property from the private respondent, the amount of P328,345.20
did not include the payment of prior liens held by private respondent in the
amount of P90,000.00 and which liens were evidenced by the three documents
subject matter of the reformation case pending before the Court of First
Instance of Rizal, Branch XXXI, Quezon
City, entitled ‘Maria N. Sambajon, et al., Plaintiff
versus Merryland Development Corp., Defendant’,
docketed thereat as Civil Case No. Q-19557.

“3.  With these admissions and for considerations
hereunder discussed, the parties covenant that:

“1.  For and in consideration of P90,000.00 paid by
petitioners to the private respondent, P85,000.00 of which was in cash and
P5,000.00 covered by postdated check, including the amount of P328,345.20 and
the interest accrued thereon deposited with the City Sheriff, private
respondent hereby relinquishes, cedes and waives all its rights and interests
on the property of petitioners covered by Transfer Certificate of Title No. 80460
of the Register of Deeds of Quezon City and the
improvements thereon and recognizes the absolute ownership and possession of
petitioners thereof and that parties hereby waive and quitclaim any claim that
they may have against each other over said property;

“2.  Petitioners will move for the dismissal with
prejudice of the following pending cases initiated by them:

“a.  Civil Case No. Q-19557, Maria N. Sambajon, et al. versus Merryland
Development Corporation, CFI, Quezon City, Branch
XXXI;

“b.  G.R. No. L-43652, Spouses Maria and
Fernando Sambajon versus Hon. Eduardo Tutaan, et al. (the instant case);

“c.  G.R. No. L-43622, Maria N. Sambajon and Fernando Sambajon,
versus Hon. Court of Appeals, Hon. Judge Enrique Agana
and Merryland Development Corporation;

“d.  I. S. No. 76-10856,
for perjury-Fernando A. Sambajon versus Adalia B. Francisco (Fiscal Reyes).

“3.  Private respondent will recognize petitioners’
actual and constructive possession of the property and neither will they take
any steps to cause any disturbance of said possession by any means;

“4.  Private respondent will also move for the
dismissal with prejudice of the following pending cases initiated by it:

“a.  Civil Case No. 4270-P, Merryland
Development Corporation versus Maria N. Sambajon, et
al., CFI, Pasay City, Branch XXVIII;

“b.  Civil Case No. Q-20998, Merryland Development Corporation versus Atty. Vitaliano Valdellon, et al., CFI,
Quezon City,
Branch V;

“c.  I. S. No. 76-7805-A for Estafa
thru Falsification – Adalia Francisco versus Fernando
Sambajon, Maria Sambajon
and Francia Sambajon-Cecilio
(Fiscal Reyes);

“d.  I. S. No. 10101 Adalia
Francisco versus Manuel Salak, Reynaldo Noval, Isagani Yambot, Maria Sambajon for Libel
(Fiscal Reyes);

“e.  All criminal and administrative cases against
Judge Augusto Valencia, Presiding Judge, Court of
First Instance of Rizal, Quezon City, Branch XXXI;

“f.   Administrative case against F. Sambajon.

“5.  The Parties further covenant that aside from
their foregoing stipulations that neither has any other claim against each
other and if there be any, that they renounce, waive and abandon forever any
such other claims.

“WHEREFORE, premises considered, it is respectfully prayed
that the Resolution of this Honorable Court dated March 24, 1977 be considered novated
by the foregoing Compromise Agreement and thereafter that judgment be rendered
in accordance therewith.

“Other reliefs just and equitable in
the premises are similarly prayed for.

“Metropolitan Manila,
April 13, 1977.

Sgd. Maria N. Sambajon                                                                                                 MERRYLAND
DELOPMENT

Typed MARIA N. SAMBAJON     CORPORATION

– and –                                                                                                                  By:

Sgd. F.  A. Sambajon                                                                                                            Sgd. Adalia B. Francisco

Typed FERNANDO
A. SAMBAJON                                                                                       Typed
ADALIA B. FRANCISCO

President

Assisted by:

Sgd. A. G. Barredo, Jr.                                                                                                          Sgd. Illegible

Typed ANTONIO
G. BARREDO                                                                                            Typed
VIRGILIO M. PABLO

Counsel for the
Petitioners                                                                                              Counsel
for the Private Respondent

2nd Floor, Sarmiento Building                                                                                               1373
E. Rodriguez, Sr. Blvd.

Ayala Ave.,
Makati, Metro Manila Quezon
City”

Finding the said agreement to be in accordance with law, the same
is hereby approved.

As prayed for, this Court’s resolution of March 24, 1977 is deemed novated
by the said agreement.

The parties are enjoined to comply with the terms of the said
agreement.  No costs.

SO ORDERED.

Castro, C.J., Fernando, Teehankee, Makasiar, Antonio, Muñoz Palma, and Martin, JJ., concur.

Barredo, J., did not take part.

Concepcion, Jr., J., on leave.