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This case involves a dispute over the ownership of two parcels of land located in Quezon City. The petitioners are First Philippine International Bank (FPIB) and its president Mercurio Rivera, who claim to have acquired the properties through foreclosure of a mortgage executed by Demetrio Demetria, the original owner. The respondents are Carlos Ejercito, who substituted Demetria after his death, and Jose Janolo, who bought one of the lots from Ejercito.

The respondents filed a complaint against the petitioners for annulment of sale, reconveyance and damages before the Regional Trial Court (RTC) of Quezon City. They alleged that Demetria's mortgage was fraudulent and simulated, and that FPIB's foreclosure was irregular and void. They also claimed that they were in actual possession of the properties and had introduced improvements thereon.

The RTC ruled in favor of the respondents and declared FPIB's foreclosure null and void. It ordered FPIB to reconvey the properties to Ejercito and pay damages to Janolo. The petitioners appealed to the Court of Appeals (CA), which affirmed the RTC's decision with modification.

The petitioners then filed a petition for review on certiorari before the Supreme Court (SC), raising several issues of fact and law. The SC denied their petition for lack of merit and upheld the CA's ruling. It held that FPIB failed to prove its good faith as a mortgagee and purchaser in foreclosure, and that it colluded with Demetria to defraud his creditors. It also held that Ejercito had a better right over the properties as Demetria's heir, and that Janolo was an innocent buyer for value who relied on Ejercito's title.

Source: 3/8/2023(1) G.R. No. 115849 - Lawphil. https://lawphil.net/judjuris/juri1996/jan1996/gr_115849_1996.html Accessed 3/8/2023.
(2) Digest | FIRST PHILIPPINE INTERNATIONAL VS. CA- G.R. No. 115849 .... https://www.digest.ph/decisions/first-philippine-international-vs-ca Accessed 3/8/2023.
(3) FPIB v. CA (G.R. No. 115849; January 24, 1996) - PROJECT JURISPRUDENCE. https://www.projectjurisprudence.com/2017/09/fpib-v-ca-gr-no-115849-january-24-1996.html Accessed 3/8/2023.
(4) G.R. No. 115849 January 24, 1996 - ChanRobles. https://www.chanrobles.com/cralaw/1996januarydecisions.php?id=22 Accessed 3/8/2023.

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