Los Baños Rural Bank vs Africa

Petitioner Los Baños questioned the decision of the Court of Appeals in granting respondent Pacita Africa's application for the issuance of a writ of preliminary injunction to restrain petitioner from proceeding with the foreclosure and consolidation of the title over the subject property after such property was allegedly sold to Macy Africa by forging Pacita Africa's signature.

Los Baños argued that they should not be enjoined from foreclosing hte property because the foreclosure sale has long been effected and since it is a consummated act, it can no longer be restrained.

The SC held that in the instant case, the status quo was the situation of the parties at the time of filing the Amended Complaint, at the poin where the property was already foreclosed. But, the last actual uncontested status that preceeded the conroversy was when the property in dispute was still registered int he name of Macy Africa, petitioner not having consolidated in its name the title thereto.

Moreover, the court also held that the requisites for the issuance of a preliminary injunction are present and established by Pacita Africa. A writ of preliminary injunction is issued to preserve the status quo ante, upon an applican't showing of two important requisites; namely: (1) the right to be protected exists prima facie, and (2) the acts sought to be enjoined are violative of that right. It must be proven that the violation sought to be prevented would cause an irreparable injustice.

The issuance of the wirt of preliminary injuction would no doubt preserve the status quo.