Remedial Law, 2019 Bar — Question A.5

ESSAY

Mrs. G defaulted in the payment of her loan obligation with Z Bank. As such, Z Bank extra-judicially foreclosed Mrs. G’s mortgaged property and sold it at public auction where it emerged as the highest bidder. Eventually, a certificate of sale was issued in Z Bank’s favor, and title to the property was later consolidated under the bank’s name. Claiming that Z Bank used fraudulent machinations in increasing the interest and penalty charges on the loan, thereby making it impossible for her to pay, Mrs. G filed before the Regional Trial Court (RTC) a complaint for cancellation of consolidation of ownership over a real property with prayer for the issuance of a writ of preliminary injunction against Z Bank. Immediately thereafter, the RTC issued an ex parte writ of preliminary injunction enjoining Z Bank from disposing of the foreclosed property or taking possession thereof. Did the RTC err in issuing the writ of preliminary injunction ex parte? Explain.

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