Cua vs Vargas

2006
Summary Settlement of Estates
Petitioner Jose Cua bought shares of some of the heirs of Paulina Vargas in the parcel of
residential land with an area of 99 square meters in Virac, Cataduanes. The heirs, whose shares
totaling at 55 square meters, executed an extra-judicial settlement which was subsequently
published in a newspaper of general circulation. Later, they also executed an extra-judicial
settlement with sale over the same property and among the same heirs. One of the heirs of
Paulina who did not participate in the settlement, Gloria Vargas sought to redeem the sold
shares and when it was refused by Cua, sought the annulment of the extra-judicial settlement.
Her petition was dismissed by the MTC and RTC, but the CA reversed the ruling of the inferior
courts. Hence, Cua comes to the succor of the Supreme Court with a petition for review on
certiorari under Rule 45 of the Rules of Court.
ISSUE: Whether or not the publication of extra judicial settlement after it was executed is
binding upon the heirs who did not participated therein
Ruling: No, it is not binding. In the first place, the requirement of Sec. 1 of Rule 74 was the
publication be done before the extra judicial settlement and not after it was already executed.
Secondly, such publication was not meant to deprive heirs of their lawful participation therein
and instead, is designed for the protection of creditors. The partition made is not valid in so far
as the heirs who did not participate therein is concerned.