PHILIPPINE TRUST CO.

V ROLDAN 99 Phil 393 BENGZON; May 31, 1956 FACTS Mariano Bernardo inherited from his father, Marcelo Bernardo, the arcels of land in !"estion# $n %ie& of his minority, '"ardianshi roceedin's &ere instit"ted &herein (ocorro )oldan &as a ointed '"ardian# (he &as the s"r%i%in' s o"se of Marcelo Bernardo (ocorro filed in a '"ardianshi roceedin's a motion as*in' for a"thority to sell as '"ardian the 1+ arcels for the s"m of P1,,+-- to .r# /idel 0# )amos, to in%est the money in a residential ho"se, &hich the minor desired to ha%e# 1he motion &as 'ranted# (ocorro, as '"ardian, e2ec"ted the ro er deed of sale in fa%or of her 3rother4in4la& .r# /idel 0# )amos and o3tained, 5"dicial confirmation of the sale# 6 &ee* later, .r# /idel 0# )amos e2ec"ted in fa%or of (ocorro, ersonally, a deed of con%eyance co%erin' the same se%enteen arcels, for the s"m of P15,---# 6nd later the same year, (ocorro sold fo"r arcels o"t of the se%enteen to Emilio 0r"7 for P3,---, reser%in' to herself the ri'ht to re "rchase# 1he Phili ine 1r"st 0om any re laced (ocorro as '"ardian# 6nd this liti'ation, started t&o months later, see*s to "ndo &hat the re%io"s '"ardian had done# 1he ste 4mother in effect, sold to herself, the ro erties of her &ard, contends the laintiff, and the sale sho"ld 3e ann"lled 3eca"se it %iolates 6rticle 1,59 of the 0i%il 0ode rohi3itin' the '"ardian from "rchasin' 8either in erson or thro"'h the mediation of another8 the ro erty of her &ard# 1he 0/$, follo&in' )odri'"e7 %s# Mactal, held the article &as not controllin', 3eca"se there &as no roof that /idel 0# )amos &as a mere intermediary or that the latter had re%io"sly a'reed &ith (ocorro )oldan to 3"y the arcels for her 3enefit# E%en (ocorro s&ore she had re "rchased the lands from .r# /idel 0# )amos to reser%e it and to 'i%e her rote'e o ort"nity to redeem 4 the co"rt rendered 5"d'ment " holdin' the contracts 3"t allo&in' the minor to re "rchase all the arcels 3y ayin' P15,---, &ithin one year# 06 affirmed 5"d'ment# ISSUE 9ON the contracts of sale &as made &ere %alid HELD

No, the three sales sho"ld not 3e s"stained: the first t&o for %iolation of article 1,59 of the 0i%il 0ode; and the third 3eca"se (ocorro )oldan co"ld ass no title to Emilio 0r"7# 1he ann"lment carries &ith is ;6rticle 13-3 0i%il 0ode< the o3li'ation of (ocorro )oldan to ret"rn the 1+ arcels to'ether &ith their fr"its and the d"ty of the minor, thro"'h his '"ardian to re ay P1,,+-- &ith le'al interest# )emem3erin' the 'eneral doctrine that '"ardianshi is a tr"st of the hi'hest order, and the tr"stee cannot 3e allo&ed to ha%e any ind"cement to ne'lect his &ard=s interest, and in line &ith the co"rt=s s"s icion &hene%er the '"ardian ac!"ires &ard=s ro erty &e ha%e no hesitation to declare that in this case, in the eyes of the la&, (ocorro )oldan too* 3y "rchase her &ard=s arcels thr" .r# )amos, and that 6rticle 1,59 of the 0i%il 0ode a lies# Disposition >"d'ment is therefore rendered: a# 6nn"llin' the three contracts of sale in !"estion; 3# declarin' the minor as the o&ner of the se%enteen arcels of land, &ith the o3li'ation to ret"rn to (ocorro )oldan the rice of P1,,+-- &ith le'al interest from 6"'"st 1?, 19,+; c# Orderin' (ocorro )oldan and Emilio 0r"7 to deli%er said arcels of land to the minor; d# )e!"irin' (ocorro )oldan to ay him 3e'innin' &ith 19,+ the fr"its, &hich her attorney admits, amo"nted to P1,5?? a year; e# 6"thori7in' the minor to deli%er directly to Emilio 0r"7, o"t of the rice of P1,,+-- a3o%e mentioned, the s"m of P3,---; and f# char'in' a ellees &ith the costs#