Cebu City questions adverse claims of contested Lahug lot

CEBU, Philippines - The Cebu City Government is set to file a petition to cancel the notice of adverse claim filed by Felix Gochan and Sons Realty Corporation and Waterfront Cebu City Hotel and Casinos (WCCHC) over the contested lot 917 in Barangay Lahug.

On March 10, Engineer Vincent Lazaro of WCCHC has sent a letter to Mayor Michael Rama and City Council requesting for the suspension on the sale of Lot 917 while on March 13, Gochan also wrote a letter reminding the city officials that the contested lot is still subject to Deed of Exchange.

These caused the annotation with the Register of Deeds of a Notice Adverse Claim on Transfer Certificate of Title. The contested lot has an area of 2,357-square meter, adjacent to the hotel.

In a five-page legal opinion of lawyer Floro Casas Jr., City Legal Office Attorney III, said the Notice of Adverse claim of Lazaro and Louise Gochan, president of Felix Gochan and Sons Realty Corp. is “ineffective”.

Casas explained that Gochan and Lazaro have no authority to act for and in behalf of the corporations, because both failed to present any Board Resolution or Secretary’s Certificate.

“Hence, her (Gochan) authority to execute and file any Notice of Adverse Claim is seriously in question. Moreover, it is ineffective in view of the fact that neither Gochan nor the corporation has any established right or interest over Lot 917,” he said.

Casas added “it has no binding force and effect as the Deed of Exchange between the city and the corporation was denied by the Commission on Audit (COA).”

COA disapproved the Deed of Exchange on June 5, 2009, more than two years before the Notice of Adverse Claim was filed by Gochan on December 13, 2011 because it was found out that the appraised values of the Gochan properties are lower by 45-percent and 46-percent compared to Cebu City property.

Based on the COA ruling, the transaction violates Sec.3 (j) 7279 Republic Act “that the lands to swapped should be more or less of equal values, and if more valuable land is to be exchanged, that land should belong to the private person, not to the government entity.”

“The fact that the said claim is ineffective was confirmed when the Motion for Reconsideration filed by Gochan was denied by the COA,” Casas said.

On the other hand, the Lazaro’s allegations in his affidavit also did not mention of any claim of ownership over the said property but rather on the alleged failure of public bidding notice.

Also, Casas pointed out that the said allegations did not meet the requirement under Sec. 70 Presidential Decree  No. 496 which states that the Notice of Adverse Claim may be filed only by “whoever claims any right or interest in registered land adverse to the registered owner..”   (FREEMAN)