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G.R. No. L-8220, Miranda v.

Fadullon
ndd. Gas. No. r2a
Republic of the Philippines
SUPREME COURT
Manila
EN BANC
October 29, 1955
GR No !"#22$
SALVACION MIRANDA, plainti%"appellants,
&s
ESTEBAN FADULLON and spouses DIONISIO SEGARRA and
CLEMENCIA N. DE SEGARRA, 'efen'ants"appellees
Lopez, Duterte, Guillamac, Rubillos, Montecillo and Bernardo for
appellees.
Gaudencio R. Juezan for appellant.
MONTEMAYOR, J.:
(he present appeal )as *rst ta+en to the Court of Appeals !ater b,
resolution of the sai' court it )as certi*e' to us un'er section 1-,
para.raph / of the 0u'iciar, Act of 191#, as a2en'e', the sai'
(ribunal bein. of the opinion that the case in&ol&e' onl, 3uestions of
la) (he facts as 2a, be .athere' fro2 the plea'in.s *le' b, the
parties 2a, be brie4, state' as follo)s 5n the ,ear 1969 one !ucio
(io )as the o)ner of a parcel of lan', lot 15#9"0 of the Banila'
Estate, Cebu, un'er (ransfer Certi*cate of (itle No 1$51# On
7ece2ber 29, 1969, a po)er of attorne, in fa&or of one Esteban
8a'ullon e9ecute' b, !ucio (io )as re.istere' in the lan' recor's of
Cebu Cit, an' annotate' on the sa2e certi*cate of title 5n the ,ear
191/, on the stren.th of the sai' po)er of attorne, 8a'ullon to 2a+e
the repurchase )ithin this perio', the :e.arras about ten 'a,s after
the e9piration of the perio' *le' a s)or' petition for the
consoli'ation of their o)nership an' re.istere' sai' petition in the
o;ce of the Re.ister of 7ee's on Ma, 15, 191/ Apprise' of the sale
of his propert,, !ucio (io on 0une 1, 191/, *le' a co2plaint in the
Court of 8irst 5nstance of Cebu, Ci&il Case No 1#1 to annul the sale
:er&ice of su22ons )as 2a'e upon the :e.arras on 0une 1$, 191/
After hearin. the trial court ren'ere' <u'.2ent annullin. the sale
(he :e.arras appeale' to the Court of Appeals un'er CA=G R
No/55$"R an' the sai' (ribunal a;r2e' the appeale' 'ecision an'
further re3uire' the :e.arras to pa, plainti% the reasonable rentals
on the propert, fro2 the *lin. of the action until sai' propert, shall
ha&e been returne' to plainti% >pon the 'ecision beco2in. *nal the
correspon'in. )rit of e9ecution )as issue' 'irectin. the :heri% to
put plainti% (io in possession of the lot 5t turne' out ho)e&er that
'urin. the possession of the propert, b, the :e.arras the, ha'
intro'uce' i2pro&e2ents thereon consistin. of a buil'in. of three
roo2s an' a stora.e roo2, an' one artesian )ell, )ith to)er an'
)ater tan+ an' a ce2ent 4oorin. co&erin. about one"thir' of the lot
)hich accor'in. to the :e.arras cost the2 P5,6$$ (he, then *le' a
2otion )ith the trial court clai2in. that the, )ere possessors in
.oo' faith of the lot in 3uestion, an' that the, ha' intro'uce' the
i2pro&e2ents afore2entione' in .oo' faith an' as+e' the court to
or'er the plainti% to pa, for the sai' i2pro&e2ents &alue' at P5,6$$
or to allo) the2 to bu, the lan' shoul' the plainti% 'eci'e not to
pa, for the i2pro&e2ents On Au.ust 2#, 1952, the trial court
issue' the follo)in. or'er?
(he attorne, for the plainti% has been accor'in.l, ser&e' )ith cop,
of 'efen'ant@s 2otion of 0ul, 61, 1952, *le' throu.h counsel
As pra,e' for, )ithout opposition, the plainti% is hereb, or'ere' to
either pa, the 'efen'ant spouses, 7ionisio :e.arra an' Cle2encia
N :e.arra Apossessors in .oo' faithB the su2 of P5,6$$, &alue of the
buil'in. erecte' on the lan' in 3uestion, or other)ise allo) sai'
'efen'ants to purchase the afore2entione' lot
(he plainti% *le' a 2otion for reconsi'eration clai2in. that the
:e.arras )ere possessors an' buil'ers in ba' faith an' so )ere not
entitle' to rei2burse2ent for the &alue of the i2pro&e2entsC that
the reason he Aplainti%B 'i' not *le an opposition to the 2otion of
the 'efen'ants as+in. for rei2burse2ent )as that he thou.ht that
the trial court )as su;cientl, infor2e' an' i2presse' )ith the ba'
faith )ith )hich 'efen'ants bou.ht the lan' an' intro'uce'
i2pro&e2ents thereon an' that it )oul' conse3uentl, 'en, their
2otionC an' in support of his 2otion for reconsi'eration plainti%
3uote' portions of the 'ecision of the trial court an' the Court of
Appeals >pon the 'enial of his 2otion for reconsi'eration, he too+
the present appeal
After a careful re&ie) of the recor' )e a.ree )ith the plainti%"
appellant (he trial court in its 'ecision 'eclarin. the sale of the lan'
to the 'efen'ants null an' &oi' an' co22entin. on the alle.e'
.oo' faith of 'efen'ants in bu,in. the propert, sai' the follo)in.?
(here are t)o circu2stances )hich see2 to stubbornl, belie the
professe' .oo' faith on the part of the :e.arras in bu,in. this
propert,C na2el, the circu2stances of the po)er"of"attorne,
appearin. on the bac+ of the title as of *&e or si9 ,ears pre&ious an'
the other circu2stances of the co2parati&el, li2ite' perio' of one
2onth .rante' &en'or 8a'ullon to re'ee2 the propert, Abo&e all
these, is the further circu2stance that the sai' propert, ha' alrea',
been 2ort.a.e' in fa&or of the Cebu Mutual Buil'in. an' !oan
Association b, &irtue of that po)er"of"attorne,
Dhile the e&i'ence 'i' not 'isclose a collusion or conspirac,
bet)een 8a'ullon an' the :e.arras, ,et, consi'erin. the short
perio' of one 2onth )ithin )hich to re'ee2 an' the surroun'in.
circu2stances, the possibilit, of such collusion lin.ers
Ob&iousl, there )as in this transaction a pre&ailin. intention of
railroa'in. the propert, into a ne) o)nership as 2a, be pro&en b,
the fact that sai' purchasers *le' a s)orn petition for consoli'atin.
their o)nership barel, ten 'a,s after the e9piration of thirt, 'a,s,
that is, on April 16, 191/, an' re.istere' )ith the o;ce of Re.ister
of 7ee's for Cebu t)el&e 'a,s thereafter, or on Ma, 15, 191/
(he Court of Appeals in its 'ecision a;r2in. that of the trial court
sai'?
(he :e.arra spouses 2aintain that the, are purchasers in .oo'
faith De )ill no) e9a2ine the recor' on this point (he alle.e'
po)er of attorne, e9ecute' b, the late !ucio (io in fa&or of
appellant 8a'ullon )as re.istere' in the lan' recor' of the Re.ister
of 7ee's of Cebu Citl, an' annotate' at the bac+ of (ransfer
Certi*cate of (itle No 1$51# on 7ece2ber 29, 1969 On the sa2e
'ate, the 'ee' of 2ort.a.e in fa&or of the Cebu Mutual Buil'in. an'
!oan Association )as annotate' in the sai' (orrens title AE9hibits 1
an' 1"BB (his encu2brance alone shoul' ha&e been su;cient to put
the :e.arra spouses upon an in3uir, as to the authorit, of 8a'ullon
to sell to the2 the sa2e propert, si9 ,ears later 8or instance, the
:e.arras coul' ha&e as+e' the2sel&es this 3uestion? 7i' not the
2ort.a.e of P1$$ ser&e the purpose for )hich the po)er of attorne,
)as e9ecute'E
(he :e.arras 'i' not re3uire 8a'ullon to pro'uce his po)er of
attorne, Dhile it is true that sai' po)er of attorne, is annotate' at
the bac+ of the (orrens title of (io, it )as still incu2bent upon the
:e.arras to ascertain the scope an' authorit, of 8a'ullon un'er sai'
po)er of attorne, 8a'ullon e9ecute' the sale )ith the ri.ht to
repurchase )ithin the e9traor'inar, short perio' of 6$ 'a,s (his
circu2stance, a.ain, shoul' ha&e place' the :e.arras on their
.uar's, +no)in., as the, 'i', that the, )ere 'ealin. )ith an a.ent
un'er a po)er of attorne, e9ecute' before the )ar (hese unusual
circu2stances )oul' see2 to en.en'er in our 2in's the possibilit,
of collusion bet)een the appellants, to hasten the re.istration of the
title of the :e.arras to the lan' in 'ispute
the transfer of 'o2inion on the propert, in 3uestion to the
:e.arras )as null an' &oi' an' of no e%ect (he ne) Certi*cate of
(orrens (itle No 692 on the propert, no) in the na2e of the
:e.arras is hereb, or'ere' cancelle' an' that a ne) one issue' in
the na2e of !ucio (io an' his )ife :al&acion Miran'aC or'erin. the
:e.arras to return the possession of sai' propert, to plainti%C
(he 'efen'ants :e.arras are further2ore re3uire' to pa, plainti%
the reasonable rentals on the propert, fro2 the *lin. of this action
until such ti2e as the sai' propert, shall ha&e been returne' to
plainti% F
Althou.h neither the trial court nor the Court of Appeals 'i'
e9pressl, sa, an' in so 2an, )or's that the 'efen'ants"appellees
)ere possessors in ba' faith, fro2 a rea'in. of their 'ecisions
particularl, those )e ha&e <ust 3uote', one can lo.icall, infer that
that )as the conclusion of the t)o courts, or to sa, it 2ore 2il'l,,
that the 'efen'ants )ere not possessors in .oo' faith Moreo&er,
the &er, fact that the Court of Appeals sentence' the 'efen'ants to
pa, rentals is an in'ication, e&en proof that 'efen'ants )ere
consi'ere' possessors an' buil'ers in ba' faith, or at least that the,
)ere not possessors an' buil'ers in .oo' faith A buil'er in .oo'
faith 2a, not be re3uire' to pa, rentals Ge has a ri.ht to retain the
lan' on )hich he has built in .oo' faith until he is rei2burse' the
e9penses incurre' b, hi2 Possibl, he 2i.ht be re3uire' to pa,
rental onl, )hen the o)ner of the lan' chooses not to appropriate
the i2pro&e2ent an' re3uires the buil'er in .oo' faith to pa, for
the lan', but that the buil'er is un)illin. or unable to bu, the lan',
an' then the, 'eci'e to lea&e thin.s as the, are an' assu2e the
relation of lessor an' lessee, an' shoul' the, 'isa.ree as to the
a2ount of the rental then the, can .o to the court to *9 that
a2ount 8urther2ore, plainti%"appellant in her brief Apa.e -B sa,s
)ithout 'enial or refutation on the part of 'efen'ants"appellees that
the, A'efen'antsB applie' for a buil'in. per2it to construct the
i2pro&e2ents in 3uestion on 7ece2ber 1, 191/, an' the per2it )as
.rante' on 0anuar, 11, 191-, all this about se&en 2onths after the,
recei&e' the su22ons on 0une 1$, 191/, 2eanin. to sa, that the
i2pro&e2ents )ere intro'uce' lon. after their alle.e' .oo' faith as
possessors ha' en'e'
5n &ie) of the fore.oin., the appeale' or'er of Au.ust 2#, 1952 an'
the or'er of October 15, 1952, 'en,in. plainti%@s 2otion for
reconsi'eration are set asi'e Dith costs a.ainst appellees
Paras, C. J., Bengzon, Padilla, Reyes, ., Jugo, Bautista ngelo,
Labrador, Concepcion, and Reyes, J. B. L., JJ., concur.