Ligon vs. RTC of MakatiOn November 20, 2002, petitioner Leticia P. Ligon (Ligon) filed an amendedcomplaint6before the Regional Trial Court of Quezon City, Branch 101 (Quezon CityRTC) for collection of sum of money and damages, rescission of contract, andnullification of title with prayer for the issuance of a writ of preliminary attachment,docketed asCivil Case No. Q–10–48145(Quezon City Case), against Sps.Baladjay, a certain Olivia Marasigan (Marasigan), Polished Arrow Holdings, Inc.(Polished Arrow), and its incorporators,7namely, Spouses Julius Gonzalo andCharaine Doreece Anne Fuentebella (Sps. Fuentebella), Ma. Linda Mendoza(Mendoza), Barbara C. Clavo (Clavo), Bayani E. Arit, Jr. (Arit, Jr.), and Peter M.Kairuz (Kairuz), as well as the latter’s spouses (individual defendants).In her complaint, Ligon alleged,inter alia, that Rosario Baladjay (Rosario) enticedher to extend a short–term loan in the amount of P3,000,000.00, payable in amonth’s time and secured by an Allied Bank post–dated check for the sameamount.8Ligon likewise claimed that Rosario, as further enticement for the loanextension, represented that she and her husband Saturnino were in the process ofselling their property in Ayala Alabang Village, Muntinlupa City (subject property),covered by a clean title,i.e.,TCT No. 8502[9in the name ofRosario Baladjay,married to Saturnino Baladjay, and that the proceeds of the said sale could easilypay–off the loan.10Unfortunately, the Allied Bank check was dishonored uponpresentment and, despite assurances to replace it with cash, Rosario failed to do so.Moreover, Ligon discovered that the subject property had already been transferred toPolished Arrow, alleged to be a dummy corporation of Sps. Baladjay and theindividual defendants (defendants). As a result, TCT No. 8502 was cancelled andreplaced on October 11, 2002 by TCT No. 9273[11in the name ofPolished Arrow.Thus, Ligon prayed that all defendants be held solidarily liable to pay her the amountof P3,000,000.00, with interest due, as well as P1,000,000.00 as attorney’s fees andanother P1,000,000.00 by way of moral and exemplary damages. Asserting that thetransfer of the subject property to Polished Arrow was made in fraud of Sps.Baladjay’s creditors, Ligon also prayed that the said transfer be nullified, and that awrit of preliminary attachment be issued in the interim against defendants’ assets,including the subject property. Subsequently, an Amended Writ of PreliminaryAttachment12was issued on November 26, 2002, and annotated on the dorsalportion13of TCT No. 9273 on December 3, 2002(December 3, 2002 attachmentannotation).On February 18, 2003, a similar complaint for collection of sum of money, damages,and cancellation of title with prayer for issuance of a writ of preliminary attachmentwas lodged before the Makati City RTC, docketed as Civil Case No. 03–186(MakatiCity Case), by Spouses Cecilia and Gil Vicente (Sps. Vicente) against Sps. Baladjay,Polished Arrow, and other corporations.14In that case, it was established that Sps.