Professional Documents
Culture Documents
2
arrived at his law office in the De los Reyes Building and left an
envelope wrapped in red handkerchief [Exhibit C] (p. 32, t. s. n.,
hearing of 13 October 1947); that he checked up the signatures
on the envelope Exhibit A with those on the will placed in the
envelope (p. 33, t. s. n., Id.); that the will was exactly the same as
the draft Exhibit B (pp. 32, 47, 50, t. s. n., Id.).
If the will was snatched after the delivery thereof by Go Toh to
Anastacio Teodoro And returned by the latter to the former
because they could not agree on the amount of fees, the former
coming to the latter's office straight from the boat (p. 315, t. s. n.,
hearing of 19 January 1948) that brought him to the Philippines
from Amoy, and that delivery took place in November 1934 (p.
273, t. s. n., Id.), then the testimony of Ana Suntay that she saw
and heard her brother Apolonio Suntay read the will sometime in
September 1934 (p. 524, t. s. n., hearing of 24 February 1948),
must not be true.
Although Ana Suntay would be a good witness because she was
testifying against her own interest, still the fact remains that she
did not read the whole will but only the adjudication (pp. 526-8,
530-1, 542, t. s. n., Id.) and saw only the signature, of her father
and of the witnesses Go Toh, Manuel Lopez and Alberto Barretto
(p. 546, t. s. n., Id.). But her testimony on cross-examination that
she read the part of the will on adjudication is inconsistent with
her testimony in chief that after Apolonio had read that part of the
will he turned over or handed the document to Manuel who went
away (p. 528, t. s. n., Id.).
If it is true that Go Toh saw the draft Exhibit B in the office of
Alberto Barretto in November 1929 when the will was signed, then
the part of his testimony that Alberto Barretto handed the draft to
Jose B. Suntay to whom he said: "You had better see if you want
any correction" and that "after checking Jose B. Suntay put the
"Exhibit B" in his pocket and had the original signed and
executed" cannot be true, for it was not the time for correcting the
draft of the will, because it must have been corrected before and
all corrections and additions written in lead pencil must have been
inserted and copied in the final draft of the will which was signed
on that occasion. The bringing in for the draft (Exhibit B) on that
occasion is just to fit it within the framework of the appellant's
theory. At any rate, all of Go Toh's testimony by deposition on the
provisions of the alleged lost will is hearsay, because he came to
know or he learned to them from information given him by Jose B.
Suntay and from reading the translation of the draft (Exhibit B)
into Chinese.
Much stress is laid upon the testimony of Federico C. Suntay who
testifies that he read the supposed will or the alleged will of his
father and that the share of the surviving widow, according to the
will, is two-thirds of the estate (p. 229, t. s. n., hearing of 24
October 1947). But this witness testified to oppose the
appointment of a co-administrator of the estate, for the reason
that he had acquired the interest of the surviving widow not only in
the estate of her deceased husband but also in the conjugal
property (pp. 148, 205, 228, 229, 231, t. s. n., Id.) Whether he
read the original will or just the copy thereof (Exhibit B) is not
clear. For him the important point was that he had acquired all the
share, participation and interest of the surviving widow and of the
only child by the second marriage in the estate of his deceased
father. Be that as it may, his testimony that under the will the
surviving widow would take two-thirds of the estate of the late
Jose B. Suntay is at variance with Exhibit B and the testimony of
Anastacio Teodoro. According to the latter, the third for strict
legitime is for the ten children; the third for betterment is for
Silvino, Apolonio, Concepcion and Jose Jr.; and the third for free
disposal is for the surviving widow and her child Silvino.
Hence, granting that there was a will duly executed by Jose B.
Suntay placed in the envelope (Exhibit A) and that it was in
existence at the time of, and not revoked before, his death, still
the testimony of Anastacio Teodoro alone falls short of the legal
requirement that the provisions of the lost will must be "clearly
and distinctly proved by at least two credible witnesses." Credible
witnesses mean competent witnesses and those who testify to
3
Philippines, the court shall so allow it, and a certificate of its
allowance, signed by the Judge, and attested by the seal of the
courts, to which shall be attached a copy of the will, shall be filed
and recorded by the clerk, and the will shall have the same effect
as if originally proved and allowed in such court.
The fact that the municipal district court of Amoy, China, is a
probate court must be proved. The law of China on procedure in
the probate or allowance of wills must also be proved. The legal
requirements for the execution of a valid will in China in 1931
should also be established by competent evidence. There is no
proof on these points. The unverified answers to the questions
propounded by counsel for the appellant to the Consul General of
the Republic of China set forth in Exhibits R-1 and R-2, objected
to by counsel for the appellee, are inadmissible, because apart
from the fact that the office of Consul General does not qualify
and make the person who holds it an expert on the Chinese law
on procedure in probate matters, if the same be admitted, the
adverse party would be deprived of his right to confront and
cross-examine the witness. Consuls are appointed to attend to
trade matters. Moreover, it appears that all the proceedings had in
the municipal district court of Amoy were for the purpose of taking
the testimony of two attesting witnesses to the will and that the
order of the municipal district court of Amoy does not purport to
probate the will. In the absence of proof that the municipal district
court of Amoy is a probate court and on the Chinese law of
procedure in probate matters, it may be presumed that the
proceedings in the matter of probating or allowing a will in the
Chinese courts are the a deposition or to a perpetuation of
testimony, and even if it were so it does not measure same as
those provided for in our laws on the subject. It is a proceedings
in rem and for the validity of such proceedings personal notice or
by publication or both to all interested parties must be made. The
interested parties in the case were known to reside in the
Philippines. The evidence shows that no such notice was
received by the interested parties residing in the Philippines (pp.
474, 476, 481, 503-4, t. s. n., hearing of 24 February 1948). The
proceedings had in the municipal district court of Amoy, China,
may be likened toe or come up to the standard of such
proceedings in the Philippines for lack of notice to all interested
parties and the proceedings were held at the back of such
interested parties.
The order of the municipal district court of Amoy, China, which
reads as follows:
ORDER:
SEE BELOW
The above minutes were satisfactorily confirmed by the
interrogated parties, who declare that there are no errors, after
said minutes were loudly read and announced actually in the
court.
Done and subscribed on the Nineteenth day of the English month
of the 35th year of the Republic of China in the Civil Section of the
Municipal District Court of Amoy, China.
HUANG KUANG CHENG
Clerk of Court
CHIANG TENG HWA
Judge
(Exhibit N-13, p. 89 Folder of Exhibits.).
does not purport to probate or allow the will which was the subject
of the proceedings. In view thereof, the will and the alleged
probate thereof cannot be said to have been done in accordance
with the accepted basic and fundamental concepts and principles
followed in the probate and allowance of wills. Consequently, the
authenticated transcript of proceedings held in the municipal
district court of Amoy, China, cannot be deemed and accepted as
proceedings leading to the probate or allowance of a will and,
therefore, the will referred to therein cannot be allowed, filed and
recorded by a competent court of this country.
The decree appealed from is affirmed, without pronouncement as
to costs.
Pablo, Bengzon, A. Reyes, Labrador and Concepcion, JJ.,
concur.
Separate Opinions
PARAS, C.J., dissenting:
As a preliminary statement we may well refer to the case of Maria
Natividad Lim Billian, petitioner and appellant, vs. Apolonio
Suntay, Angel Suntay, Manuel Suntay, and Jose Suntay,
oppositors and appellees, 63 Phil., 793-797, in which the following
decision was rendered by this Court on November 25, 1936,
holding that the will executed by Jose B. Suntay who died in the
City of Amoy, China, on May 14, 1934, was lost under the
circumstances pointed out therein, and ordering the return of the
case to the Court of First Instance of Bulacan for further
proceedings:
On May 14, 1934, Jose B. Suntay died in the City of Amoy, China.
He married twice, the first time to Manuela T. Cruz with whom he
had several children now residing in the Philippines, and the
second time to Maria Natividad Lim Billian with whom he had a
son.
On the same date, May 14, 1934, Apolonio Suntay, eldest son of
the deceased by his first marriage, filed the latter's intestate in the
Court of First Instance of Manila (civil case No. 4892).
On October 15, 1934, and in the same court, Maria Natividad Lim
Billian also instituted the present proceedings for the probate of a
will allegedly left by the deceased.
According to the petitioner, before the deceased died in China he
left with her a sealed envelope (Exhibit A) containing his will and,
also another document (Exhibit B of the petitioner) said to be a
true copy of the original contained in the envelope. The will in the
envelope was executed in the Philippines, with Messrs. Go Toh,
Alberto Barretto and Manuel Lopez as attesting witnesses. On
August 25, 1934, Go Toh, as attorney-in-fact of the petitioner,
arrived in the Philippines with the will in the envelope and its copy
Exhibit B. While Go Toh was showing this envelope to Apolonio
Suntay and Angel Suntay, children by first marriage of the
deceased, they snatched and opened it and, after getting its
contents and throwing away the envelope, they fled.
Upon this allegation, the petitioner asks in this case that the
brothers Apolonio, Angel, Manuel and Jose Suntay, children by
the first marriage of the deceased, who allegedly have the
document contained in the envelope which is the will of the
deceased, be ordered to present it in court, that a day be set for
the reception of evidence on the will, and that the petitioner be
appointed executrix pursuant to the designation made by the
deceased in the will.
In answer to the court's order to present the alleged will, the
brothers Apolonio, Angel, Manuel and Jose Suntay stated that
they did not have the said will and denied having snatched it from
Go Toh.
In view of the allegations of the petition and the answer of the
brothers Apolonio, Angel, Manuel and Jose Suntay, the questions
raised herein are: The loss of the alleged will of the deceased,
whether Exhibit B accompanying the petition is an authentic copy
thereof, and whether it has been executed with all the essential
and necessary formalities required by law for its probate.
At the trial of the case on March 26, 1934, the petitioner put two
witnesses upon the stand, Go Toh and Tan Boon Chong, who
corroborated the allegation that the brothers Apolonio and Angel
appropriated the envelope in the circumstances abovementioned. The oppositors have not adduced any evidence
counter to the testimony of these two witnesses. The court, while
making no express finding on this fact, took it for granted in its
decision; but it dismissed the petition believing that the evidence
is insufficient to establish that the envelope seized from Go Toh
contained the will of the deceased, and that the said will was
executed with all the essential and necessary formalities required
by law for its probate.
In our opinion, the evidence is sufficient to establish the loss of
the document contained in the envelope. Oppositors' answer
admits that, according to Barretto, he prepared a will of the
4
deceased to which he later become a witness together with Go
Toh and Manuel Lopez, and that this will was placed in an
envelope which was signed by the deceased and by the
instrumental witnesses. In court there was presented and
attached to the case an open and empty envelope signed by Jose
B. Suntay, Alberto Barretto, Go Toh and Manuel Lopez. It is thus
undeniable that this envelope Exhibit A is the same one that
contained the will executed by the deceased-drafted by Barretto
and with the latter, Go Toh and Manuel Lopez as attesting
witnesses. These tokens sufficiently point to the loss of the will of
the deceased, a circumstance justifying the presentation of
secondary evidence of its contents and of whether it was
executed with all the essential and necessary legal formalities.
The trial of this case was limited to the proof of loss of the will,
and from what has taken place we deduce that it was not
petitioner's intention to raise, upon the evidence adduced by her,
the other points involved herein, namely, as we have heretofore
indicated, whether Exhibit B is a true copy of the will and whether
the latter was executed with all the formalities required by law for
its probate. The testimony of Alberto Barretto bears importantly in
this connection.
Wherefore, the loss of the will executed by the deceased having
been sufficiently established, it is ordered that this case be
remanded to the court of origin for further proceedings in
obedience to this decision, without any pronouncement as to the
costs. So ordered
On June 18, 1947, Silvino Suntay, the herein petitioner, filed a
petition in the Court of First Instance of Bulacan praying "that an
order be issued (a) either directing the continuation of the
proceedings in the case remanded by the Supreme Court by
virtue of its decision in G. R. No. 44276 and fixing a date for the
reception of evidence of the contents of the will declared lost, or
the allowance, filing and recording of the will of the deceased
which had been duly probated in China, upon the presentation of
the certificates and authentications required by Section 41, Rule
123 (Yu Chengco vs. Tiaoqui supra), or both proceedings
concurrently and simultaneously; (b) that letters of administration
be issued to herein petitioner as co-administrator of the estate of
the deceased together with Federico Suntay; and (c) that such
other necessary and proper orders be issued which this
Honorable Court deems appropriate in the premises." While this
petition was opposed by Federico C. Suntay, son of the deceased
Jose B. Suntay with his first wife, Manuela T. Cruz, the other
children of the first marriage, namely, Ana Suntay, Aurora Suntay,
Concepcion Suntay, Lourdes Guevara Vda. de Suntay, Manuel
Suntay and Emiliano Suntay, filed the following answer stating
that they had no opposition thereto; "Come now the heirs
Concepcion Suntay, Ana Suntay, Aurora Suntay, Lourdes
Guevara Vda. de Suntay, Manuel Suntay, and Emiliano Suntay,
through their undersigned attorney, and, in answer to the
alternative petition filed in these proceedings by Silvino Suntay,
through counsel, dated June 18, 1947, to this Honorable Court
respectfully state that, since said alternative petition seeks only to
put into effect the testamentary disposition and wishes of their late
father, they have no opposition thereto."
After hearing, the Court of First Instance of Bulacan rendered on
April 19, 1948, the following decision:
This action is for the legalization of the alleged will of Jose B.
Suntay, deceased.
In order to have a comprehensive understanding of this case, it is
necessary to state the background on which the alternative
petition of the herein petitioner Silvino Suntay has been based.
The decision of the Supreme Court (Exhibit O), in re will of the
deceased Jose B. Suntay, 63 Phil., 793-797, is hereunder
produced:
(As quoted above)
The above quoted decision of the Supreme Court was
promulgated on November 25, 1936 (Exhibit O).
The Clerk of the Court of Court of First Instance of Bulacan
notified the parties of the decision on December 15, 1936; and the
case was set for hearing on February 12, 1937, but it was
transferred to March 29, 1937 (Exhibit O), on motion of the then
petitioner Maria Natividad Lim Billian (Exhibit F). Again, it was
postponed until "further setting" in the order of court dated March
18, 1937, upon motion of the petitioner (Exhibit H).
In the meantime, the deposition of Go Toh was being sought
(Exhibit H).
The hearing of the case was again set for February 7, 1936, by
order of the court dated January 5, 1938, upon motion of Emiliano
Suntay and Jose Suntay, Jr. On the same day of the hearing
which had been set, the petitioner, then, Maria Natividad Lim
Billian, sent a telegram from Amoy, China, addressed to the Court
of First Instance of Bulacan moving for the postponement of the
hearing on the ground that Atty. Eriberto de Silva who was
representing her died (Exhibit K). The court, instead of granting
the telegraphic motion for postponement, dismissed the case in
the order dated February 7, 1938 (Exhibit L).
On July 3, 1947, the petitioner Silvino Suntay filed a motion for
the consolidation of the intestate Estate of the deceased Jose B.
Suntay, Special Proceeding No. 4892 and the Testate Estate of
Jose B. Suntay, Special Proceeding No. 4952, which latter case is
the subject of the said alternative petition. The motion for the
merger and consolidation of the two cases was granted on July 3,
1947.
That oppositor, Federico C. Suntay, in the Testate Proceeding
filed a motion to dismiss the alternative petition on November 14,
1947, which was denied by the court in its resolution of November
22, 1947. The said oppositor not being satisfied with the ruling of
this court denying the motion to dismiss, filed before the Supreme
Court a petition for a writ of certiorari with preliminary injunction,
which was dismissed for lack of merit on January 27, 1948.
In obedience to the decision of the Supreme Court (Exhibit O) and
upon the alternative petition of Silvino Suntay, and, further, upon
the dismissal of the petition for a writ of certiorari with preliminary
injunction, the court was constrained to proceed with the hearing
of the probate of the lost will, the draft of which is Exhibit B, or the
admission and recording of the will which had been probated in
Amoy, China.
The evidence for the petitioner, Silvino Suntay, shows that Jose
B. Suntay married twice; first to Manuela T. Cruz who died on
June 15, 1920 and had begotten with her Apolonio, now
deceased, Concepcion, Angel, Manuel, Federico, Ana, Aurora,
Emiliano and Jose, Jr., all surnamed Suntay, and second, to
Maria Natividad Lim Billian with whom he had as the only child
Silvino Suntay, the petitioner herein.
Some time in November 1929, Jose B. Suntay executed his last
will and testament in the office of Atty. Alberto Barretto in Manila,
which was witnessed by Alberto Barretto, Manuel Lopez and Go
Toh. The will was prepared by said Alberto Barretto upon the
instance of Jose B. Suntay, and it was written in the Spanish
language which was understood and spoken by said testator.
After the due execution of the will, that is signing every page and
the attestation clause by the testator and the witnesses in the
presence of each other, the will was placed inside the envelope
(Exhibit A), sealed and on the said envelope the testator and the
three subscribing witnesses also signed, after which it was
delivered to Jose B. Suntay.
A year or so after the execution of the will, Jose B. Suntay
together with his second wife Maria Natividad Lim Billian and
Silvino Suntay who was then of tender age went to reside in
Amoy, Fookien, China, where he died on May 14, 1934. The will
was entrusted to the widow, Maria Natividad Lim Billian.
Upon the death of Jose B. Suntay on May 14, 1934, Apolonio
Suntay, the oldest son now deceased, instituted the Intestate
Proceedings No. 4892, upon the presumption that no will existed.
Maria Natividad Lim Billian who remained in Amoy, China, had
with her the will and she engaged the services of the law firm of
Barretto and Teodoro for the probate of the will. Upon the request
of the said attorneys the will was brought to the Philippines by Go
Toh who was one of the attesting witnesses, and it was taken to
5
the law office of Barretto and Teodoro. The law firm of Barretto
and Teodoro was composed of Atty. Alberto Barretto and Judge
Anastacio Teodoro. The probate of the will was entrusted to the
junior partner Judge Anastacio Teodoro; and, upon the
presentation of the sealed envelope to him, he opened it and
examined the said will preparatory to the filing of the petition for
probate. There was a disagreement as to the fees to be paid by
Maria Natividad Lim Billian, and as she (through Go Toh) could
not agree to pay, P20,000 as fees, the will was returned to Go
Toh by Judge Anastacio Teodoro after the latter had kept it in his
safe, in his office, for three days.
Subsequently, the will inside the envelope was snatched from Go
Toh by Manuel Suntay and Jose, Jr., which fact has been
established in the decision of the Supreme Court at the beginning
of this decision. Go Toh could recover the envelope (Exhibit A)
and the piece of cloth with which the envelope was wrapped
(Exhibit C).
The Testate Proceeding was filed nevertheless and in lien of the
lost will a draft of the will (Exhibit B) was presented as secondary
evidence for probate. It was disallowed by this court through
Judge Buenaventura Ocampo, but on appeal the Supreme Court
remanded the case to this court for further proceeding (Exhibit C).
In the meantime, a Chinese will which was executed in Amoy
Fookien, China, on January 4, 1931, by Jose B. Suntay, written in
Chinese characters (Exhibit P) was discovered in Amoy, China,
among the papers left by Jose B. Suntay, and said will had been
allowed to probate in the Amoy District Court, China, which is
being also presented by Silvino Suntay for allowance and
recording in this court.
The said petition is opposed by Federico C. Suntay on the main
ground that Maria Natividad Lim Billian and Silvino Suntay have
no more interest in the properties left by Jose B. Suntay, because
they have already sold their respective shares, interests and
participations. But such a ground of opposition is not of moment in
the instant case, because the proposition involved herein in the
legalization of the lost will or the allowance and recording of the
will which had been probated in Amoy, China.
It is now incumbent upon this court to delve into the evidence
whether or not Jose B. Suntay, deceased, left a will (the draft of
which is Exhibit B) and another will which was executed and
another will which was executed and probated in Amoy, China.
There is no longer any doubt that Jose B. Suntay while he was
still residing in the Philippines, had executed a will; such is the
conclusion of the Supreme Court in its decision (Exhibit O). That
the will was snatched and it has never been produced in court by
those who snatched it, and consequently considered lost, is also
an established fact.
The contention of the oppositor, Federico C. Suntay, is that the
will that was executed by Jose B. Suntay in the Philippines
contained provisions which provided for equal distribution of the
properties among the heirs; hence, the draft (Exhibit B) cannot be
considered as secondary evidence, because it does not provide
for equal distribution, but if favors Maria Natividad Lim Billian and
Silvino Suntay. He relies on the testimony of Atty. Alberto Barretto
who declared that the first will which he drafted and reduced into
a plain copy was the will that was executed by Jose B. Suntay
and placed inside the envelope (Exhibit A).
Granting that the first will which Atty. Alberto Barretto had drafted
became the will of Jose B. Suntay and it was snatched by, and,
therefore, it had fallen into the hands of, Manuel Suntay and the
brothers of the first marriage, it stands to reason that said Manuel
Suntay and brothers would have been primarily interested in the
production of said will in court, for obvious reasons, namely, that
they would have been favored. But it was suppressed and
"evidence willfully suppressed would be adverse if produced"
(Section 69 (e), Rule 123 of the Rules of Court). The contention,
therefore, that the first will which was drafted by Atty. Barretto was
the one placed inside the envelope (Exhibit A) is untenable.
It might be said in this connection that the draft of the will (Exhibit
B) has been admitted by Atty. Alberto Barretto as identical in
6
Manuel Lopez as one of the subscribing witnesses is dead. Atty.
Alberto Barretto and Go Toh are still living. The former testified
during the hearing, while Go Toh's deposition was introduced in
evidence which was admitted. In the absence of the testimony of
Manuel Lopez, deceased, the testimony of Judge Anastacio
Teodoro and Ana Suntay was received.
It is an established fact that the will, draft of which is Exhibit B,
was lost or destroyed; that it was executed and valid and that it
existed at the time of the death of Jose B. Suntay. These
circumstances also apply to the will (Exhibit P) which was
executed in Amoy, China.
The contents of the Chinese will is substantially the same as the
draft (Exhibit B). Granting that the will executed in the Philippines
is non-existent as contended by the oppositor, although the
findings of this court is otherwise, the will executed and probated
in China should be allowed and recorded in this court. All the
formalities of the law in China had been followed in its execution,
on account of which it was duly probated in the Amoy District
Court. There is no cogent reason, therefore, why it should not be
admitted and recorded in this jurisdiction.
The said will (Exhibit P) in Chinese characters is presented as an
alternate in case the will executed in the Philippines would not be
allowed to probate, or as a corroborative evidence that the will,
the draft of which is Exhibit B, has been duly executed in the
Philippines by Jose B. Suntay.
Rule 78 of the Rules of Court covers the allowance of will proved
outside of the Philippines and administration of estate thereunder.
Section 1 of said rule provides:
"Wills proved and allowed in the United States, or any state or
territory thereof, or in foreign country, according to the laws of
such state, territory, or country, may be allowed, filed, and
recorded by the proper Court of First Instance in the Philippines."
Section 2 of the same rule provides:
"When a copy of such will and the allowance thereof, duly
authenticated, is filed with a petition for allowance in the
Philippines, by the executor or other person interested, in the
court having jurisdiction, such court shall fix a time and place for
the hearing, and cause notice thereof to be given as in case of an
original will presented for allowance."
This court has delved deep into the evidence adduced during the
hearing with that penetrating scrutiny in order to discovery the real
facts; it had used unsparingly the judicial scapel; and it has
winnowed the evidenced to separate the grain from the chaff. All
the facts lead to the inevitable conclusion that Jose B. Suntay, in
his sound and disposing mind and not acting under duress or
undue influence, executed the will which is lost, the draft of which
is Exhibit B, with all the necessary formalities prescribed by law.
He, likewise, executed the second will (Exhibit P) in Amoy, China,
which has been duly probated in Amoy District Court,-a
corroborative evidence that the testator really executed the will.
Copies of the said wills duly certified and under the seal of the
court are appended hereto, marked Exhibits B and P, and they
form part of this decision.
In view of the foregoing considerations, the court is of the opinion
and so declares that the draft of the will (Exhibit B) is, to all legal
intents and purposes, and testament of the deceased Jose B.
Suntay. With costs against the oppositor, Federico C. Suntay.
Oppositor Federico C. Suntay filed on May 20, 1948, a motion for
new trial and to set aside the decision rendered on April 19, 1948,
to which the petitioner filed an opposition, followed by a reply filed
by the oppositor and an answer on the part of the petitioner.
Without reopening the case and receiving any new or additional
evidence, the Court of First Instance of Bulacan, on September
29, 1948, promulgated the following resolution setting aside his
first decision and disallowing the wills sought to be probated by
the petitioner in his alternative petition filed on June 18, 1947:
This is a motion for new trial and to set aside the decision
legalizing the will of Jose B. Suntay and allowing and recording
another will executed by him in Amoy, China.
By virtue of this motion, this court is constrained to go over the
7
The Court is now confronted with the legalization of the lost will
whether or not the draft (Exhibit B) should be admitted as
secondary evidence in lieu of the lost will and allowed to probate.
Section 6. Rule 77 provides as follows:
"SEC. 6. Proof of lost or destroyed will Certificate thereupon.
No will shall be proved as a lost will or destroyed will unless
the execution and validity of the same be established, and the will
is proved to have been in existence at the time of the death of the
testator, or is shown to have been fraudulently or accidentally
destroyed in the lifetime of the testator without his knowledge, nor
unless its provisions are clearly and distinctly proved by at least
two credible witnesses. When a lost will is proved, the provisions
thereof must be distinctly stated and certified by the Judge, under
the seal of the court and the certificate must be filed and recorded
as other wills are filed and recorded." (Emphasis Court's)
From the above quoted provision of the law, it is clear that the
petitioner should not only establish the execution and validity of
the will, its existence at the time of the death of the testator or its
fraudulent and accidental destruction in the lifetime of the testator
without his knowledge, but also must prove its provisions clearly
and distinctly by at least two credible witnesses. The exact
language of the clause in the above quoted provision of the law is
"nor unless its provisions are clearly and distinctly proved by at
least two credible witnesses." The legalization of a lost will is not
so easy, therefore, as that of an original will. The question,
therefore, is boiled down to, and projected on the screen, in a
very sharp focus; namely, the execution and validity must be
established and the provisions must be clearly and distinctly
proved by at least credible witnesses.
Granting that the execution and validity of the lost will have been
established through the testimony of Judge Anastacio Teodoro
and Go Toh, and perhaps superficially by the rebuttal witness,
Ana Suntay, does it follow that the provisions of the lost will have
been clearly and distinctly proved by at least two credible
witnesses? A careful review of the evidence has revealed that at
most the only credible witness who testified as to the provisions of
the will was Judge Anastacio Teodoro, and yet he testified on the
provisions of the lost will with the draft (Exhibit B) in his hands
while testifying. It may be granted, however, that with or without
the draft of the will (Exhibit B) in his hands, he could have testified
clearly and distinctly on the provisions of the said lost will,
because he had kept the will in his safe, in his office, for three
days, after opening it, and he is well versed in Spanish language
in which the will as written. But did the attesting witness Go Toh,
testify in his deposition and prove clearly and distinctly the
provisions of the lost will? He did not, and he could not have done
so even if he tried because the original will was not read to him
nor by him before or at the signing of the same. It was written in
Spanish and he did not and does not understand the Spanish
language. Neither was there any occasion for him to have the
contents of the said will, after its execution and sealing inside the
envelope (Exhibit A), read to him because it was opened only
when Judge Teodoro had examined it and then subsequently
snatched from Go Toh. Ana Suntay on rebuttal did not, likewise,
prove clearly and distinctly the provisions of the said lost will
because she has not had enough schooling and she does
possess adequate knowledge of the Spanish language as shown
by the fact that she had to testify in Tagalog on the witness
standing.
It is evident, therefore, that although the petitioner has established
the execution and validity of the lost will, yet he had not proved
clearly and distinctly the provisions of the will by at least two
credible witnesses.
B. As to the Allowance and Recording of the will Executed in
Amoy, China. Jose B. Suntay, while he was residing in China
during the remaining years of his life, executed also a will, written
in Chinese characters, the translation of which is marked Exhibit
P. It was allowed to probate in the District Court of Amoy, China.
The question is whether or not the said will should be allowed and
recorded in this jurisdiction.
8
Virginia govern. To this end, there was submitted a copy of
section 3868 of Acts 1882, c. 84 as found in West Virginia Code,
Annotated, by Hogg, Charles E., Vol. 2, 1914, p. 1690, and as
certified to by the Director of the National Library. But this was far
from compliance with the law. The laws of a foreign jurisdiction do
not prove themselves in our courts. The courts of the Philippine
Islands are not authorized to take judicial notice of the laws of the
various States of the American Union. Such laws must be proved
as facts. (In re Estate of Johnson (1918), 39 Phil., 156.) Here the
requirements of the law were not met. There was not showing that
the book from which an extract was taken was printed or
published under the authority of the State of West Virginia, as
provided in section 300 of the Code of Civil Procedure. Nor was
the extract from the law attested by the certificate of the officer
having charge of the original under the seal of the State of West
Virginia, as provided in section 301 of the Code of Civil
Procedure. No evidence was introduced to show that the extract
from the laws of West Virginia was in force at the time the alleged
will was executed.
"It was also necessary for the petitioner to prove that the testator
had his domicile in West Virginia and not in the Philippine Islands.
The only evidence introduced to establish this fact consisted of
the recitals in the alleged will and the testimony of the petitioner.
"While the appeal was pending submission in this court, the
attorney for the appellant presented an unverified petition asking
the court to accept as part of the evidence the documents
attached to the petition. One of these documents discloses that a
paper writing purporting to be the last will and testament of
Edward Randolph Hix, deceased, was presented for probate on
June 8, 1929, to the clerk of Randolph County, State of West
Virginia, in vacation, and was duly proven by the oaths of Dana
Vansley and Joseph L. Madden, the subscribing witnesses
thereto, and ordered to be recorded and filed. It was shown by
another document that in vacation, on June 8, 1929, the clerk of
court of Randolph County, West Virginia, appointed Claude E.
Maxwell as administrator, cum testamento annexo, of the estate
of Edward Randolph Hix, deceased ... However this may be no
attempt has been made to comply with the provisions of sections
637, 638, and 639 of the Code of Civil Procedure, for no hearing
on the question of the allowance of a will said to have been
proved and allowed in West Virginia has been requested. ... ."
Granting that the will of Jose B. Suntay which was executed in
Amoy, China, was validly done in accordance with the law of the
Republic of China on the matter, is it necessary to prove in this
jurisdiction the existence of such law in China as a prerequisite to
the allowance and recording of said will? The answer is in the
affirmative as enunciated in Fluemer vs. Hix, supra, and in Yanez
de Barnuevo vs. Fuster, 29 Phil., 606. In the latter case, the
Supreme Court said:
"A foreign law may be proved by the certificate of the officer
having in charge of the original, under the seal of the state or
country. It may also be proved by an official copy of the same
published under the authority of the particular state and purporting
to contain such law. (Secs. 300 and 301, Act No. 190.),
(Syllabus.)
The provisions of section 300 and 301 of the Code of Civil
Procedure (Act No. 190) are as follows:
"SEC. 300. Printed laws of the State or Country. Books printed
or published under the authority of the United States, or one of
the States of the United States, or a foreign country, and
purporting to contain statutes, codes, or other written law of such
State or country or proved to be commonly admitted in the
tribunals of such State or country an evidence of the written law
thereof, are admissible in the Philippine Islands are evidence of
such law."
"SEC. 301. Attested copy of foreign laws. A copy of the written
law or other public writing of any state or country, attested by the
certificate of the officer having charge of the original, under the
seal of the state or country, is admissible as evidence of such law
or writing."
9
It is very significant that in the foregoing resolution, the Court of
First Instance of Bulacan "reiterates its finding of the same facts
in this resolution," and merely proceeds to pose the sole question
"whether or not the facts established by the petitioner, Silvino
Suntay, warrant the legalization of the lost will and allowance and
recording of the will that was executed in Amoy, China." The
somersault executed by the trial court is premised on the ground
that "although the petitioner has established the execution and
validity of the lost will, yet he has not proved clearly and distinctly
the provisions of the will by the least two credible witnesses"; and
that, assuming that the will of Jose B. Suntay executed in Amoy,
China, was in accordance with the law of the Republic of China,
the certification of the Chinese Consul General in the Philippines
as the existence of such law is not admissible evidence in this
jurisdiction. In effect the resolution on the motion for
reconsideration promulgated by the trial court, and the decision of
the majority herein, adopt the position that the testimony of Judge
Anastacio Teodoro as to the provisions of the lost will, while
credible and perhaps sufficient in extent, is not corroborated by
the witnesses Go Toh and Ana Suntay and, therefore, falls short
of the requirement in section 6, Rule 77, of the Rules of Court that
the provisions of the lost will must be "clearly and distinctly proved
by at least two witnesses." That this requirement was obviously
construed, to mean that the exact provisions are to be
established, may be deduced from the following dialogue between
his Honor, Judge Potenciano Pecson, and attorney Teofilo Sison,
new counsel for oppositor Federico C. Suntay, who appeared for
the first time at the ex parte hearing of the oppositor's motion for
new trial on September 1, 1949:
COURT: However, Rule 77, Section 6, provides in proving a lost
will, the provisions of the lost will must be distinctly stated and
certified by the Judge.
ATTY. TEOFILO SISON: Yes, Your Honor.
COURT: That presupposes that the judge could only certify to the
exact provisions of the will from the evidence presented.
ATTY. TEOFILO SISON: That is our contention, provided that
provision is clearly established by two credible witnesses so that
the Court could state that in the decision, we agree, that is the
very point.
(t. s. n. 75, Session of Sept. 1, 1948)
The sound rule, however, as we have found it to be, as to the
degree of proof required to establish the contents of a lost or
destroyed will, is that there is sufficient compliance if two
witnesses have substantiated the provisions affecting the
disposition of the testator's properties; and this is especially
necessary to prevent the "perpetration of fraud by permitting a
presumption to supply the suppressed proof," to keep a wrongdoer from utilizing the rule as his "most effective weapon," or to
avoid the enjoyment of a "premium from the rascality of one
whose interests might suggest the destruction of a will."
Section 1865 of the Code requires that the provisions of a lost will
must be clearly and distinctly proved by at least two credible
witnesses before it can be admitted to probate; but this section
must receive a liberal construction (Hook vs. Pratt, 8 Hun. 102109) and its spirit is complied with by holding that it applies only to
those provisions which affect the disposition of the testator's
property and which are of the substance of the will.
The allegations of the contents of the will are general, and under
ordinary circumstances, would be in sufficient; but the fact
alleged, if proven as alleged, would certainly authorize the
establishment of the will so far as its bequests are concerned. To
require that a copy of the will or the language of the bequests, in
detail, should be pleaded, where no copy has been preserved,
and where the memory of the witnesses does not hold the exact
words, would not only deny the substance for mere form, but
would offer a premium upon the rascality of one whose interests
might suggest the destruction of a will. As said in Anderson vs.
Irwin, 101 Ill. 411: "The instrument in controversy having been
destroyed without the fault of the defendant in error ... and there
not appearing to be any copy of it in existence, it would be
10
testimony of Atty. Alberto Barretto to the contrary
notwithstanding."
We should not forget, in this connection, that in the resolution on
the motion for reconsideration the trial Judge reiterated the
findings in his decision, although as regards the testimony of
Judge Teodoro admittedly "the only credible witness who testified
as to the provisions of the will," he observed that Judge Teodoro
had the draft Exhibit "B" in his hands while testifying. We cannot
see any justifying for the observation, assuming that Judge
Teodoro consulted the draft, since even the trial Judge granted
that he "could have testified clearly and distinctly on the
provisions of the said lost will, because he had kept the will in his
safe, in his office, for three days, after opening it, and he is well
versed in Spanish language in which the will was written." As a
matter of fact, however, it is not true that Judge Teodoro had the
draft in question before him while testifying as may be seen from
the following passages of the transcript:
Q. And, have you read that will which was inside this envelope,
Exhibit A? "A. Yes.
Q. Do you remember more or less the contents of the will?
ATTY. FERRIN: With our objection, the best evidence is original
will itself, Your Honor.
ATTY. RECTO: We are precisely proving by means of secondary
evidence, the contents of the will, because according to the
Supreme Court, and that is a fact already decided, that the will of
Jose B. Suntay was lost and that is res adjudicata.
COURT: Witness may answer.
WITNESS: I remember the main features of the will because as I
said I was the one fighting for the postponement of the hearing of
the intestate case because I was asked by Don Alberto Barretto
to secure the postponement until the will that was executed by the
deceased is sent here by the widow from China, with whom we
communicated with several letters, and when the will arrived. I
had to check the facts as appearing in the will, and examined fully
in connection with the facts alleged in the intestate, and there was
a striking fact in the intestate that Apolonio Suntay has..
ATTY. FERRIN: (Interrupting) May we ask that the witness
answer categorically the questions of Atty. Recto, it seems that
the answers of the witness are kilometric ...
ATTY. RECTO: Sometimes the question cannot be answered fully
unless the witness would relate and give all the facts.
COURT: The Attorney for the Administrator may move for the
striking out of any testimony that is not responsive to the question.
ATTY. FERRIN: That is why, our objection, the answer is out of
the question.
COURT: Atty. Recto may propound another question.
ATTY. RECTO: I heard the witness was saying something and he
has not finished the sentence, and I want to ask the Court just to
allow the witness to finish his sentence.
COURT: You may finish.
WITNESS: "A. There was a sentence, the point I was trying to
check first was whether the value of the estate left by the
deceased was SIXTY THOUSAND PESOS (P60,000.00) as
Apolonio Suntay made it appear in his petition, and when I looked
at the original will, I found out that it was several hundred
thousand pesos, several thousands of pesos, hundreds of pesos,
that was very striking fact to me because the petition for intestate
was for SIXTY THOUSAND PESOS (P60,000.00), and I came to
know that it was worth more than SEVEN HUNDRED
THOUSAND (P700,000.00) PESOS.
Q. Do you remember, Judge, the disposition of the will, the main
disposition of the will? "A. Yes, because our client were the
widow, Maria Natividad Lim Billian, and his son, Silvino, the only
son in the second marriage, that was very important for me to
know.
Q. How were the properties distributed according to that will?- "A.
The properties were distributed into three (3) parts, one part
which we call legitima corta, were equally distributed to the ten
(10) children, nine (9) in the first marriage, and one (1) in the
second marriage with Maria Natividad Lim Billian. The other third,
11
contents of the said will, after its execution and sealing inside the
envelope (Exhibit A), read to him, because it was opened only
when Judge Teodoro had examined it and then subsequently
snatched from Go Toh."
The later position thus taken by Judge Pecson is palpably
inconsistent with the following unequivocal statements of Go Toh
contained in hid disposition taken in Amoy, China, on April 17,
1938, and in oppositor's Exhibit "6":
26. State what you know of the contents of that will.
. . . . Regarding (1) expenditures (2) Philippine citizenship; (3)
Distribution of estates among children (4) Taking care of grave lot;
(5) guardianship of Silvino Suntay and (6) after paying his debts
he will have approximately 720,000 pesos left. This amount will
be divided into three equal parts of 240,000 pesos each. The first
part is to be divided equally among the ten children born by the
first and second wives and the second part among the three sons
Silvino Suntay, 75,000 approximately; Apolonio Suntay, 50,000
pesos approximately; Jose Suntay and Concepcion Suntay,
36,000 each approximately. The third part is to be divided
between Maria Lim Billian and Silvino Suntay; each will get
approximately 110,000 pesos. Silvino Suntay will get a total of
210,000 pesos approximately, Maria Natividad Lim Billian a total
of 290,000 approximately, and Apolonio Suntay a total of 80,000
approximately, Concepcion Suntay and Jose Suntay will get
60,000 pesos each approximately. The rest of the children will get
approximately 29,000 each. The way of distribution of the
property of Jose B. Suntay, movable and immovable, and the
outstanding debts to be collected was arranged by Jose B.
Suntay.
xxx
xxx
xxx
78. On the occasion of the execution of the testament of Jose B.
Suntay, state whether or not you say Exhibit B ... Yes.
79. In the affirmative case, state if you know who had the
possession of Exhibit B and the testament the first time you saw
them on that occasion. ... Yes, I know who had possession of
them.
80. Can you say whether or not Jose B. Suntay happened to get
those documents later on, on that same occasion? ... He got
them after the execution.
81. Please name the person who gave those documents to Mr.
Suntay. ... Alberto Barretto gave the documents to Jose B.
Suntay.
82. Did the person who gave those documents to Suntay say
anything to him (Suntay) at the time of giving them? ... Yes.
83. If so what was it that he said, if he said any? ... He said,
"You had better see if you want any correction."
84. What did Mr. Suntay do after those documents were given to
him? ... Jose B. Suntay looked at them and then gave one
copy to Manuel Lopez for checking.
85. State whether or not Mr. Suntay gave one of those documents
to another man. ... Yes.
86. In the affirmative case, can you say which of the two
documents was given and who the man was? ... Yes he gave
Exhibit B to Manuel Lopez.
87. State whether or not Mr. Suntay said something to the man to
whom he gave one of those documents. ... Yes.
88. In the affirmative case can you repeat more or less what Mr.
Suntay said to that man? ... He told him to read it for checking.
89. State if you know what did the man do with one of those
documents given to him. ... He took it and read it for checking.
90. What did in turn Mr. Suntay do with the other one left with
him? ... Jose B. Suntay looked at the original and checked
them.
91. What was done with those documents later on if there was
anything done with them? ... After checking, Jose B. Suntay
put Exhibit B in his pocket and had the original signed and
executed.
92. What was done with the testament of Jose B. Suntay after it
was signed by the testator and its witnesses? ... It was taken
away by Jose B. Suntay. (Exhibit D, D-1.)
Q. Did you know the contents of this envelope? "A. I knew that
it was a will.
Q. But did you know the provisions of the will? "A. It is about
the distribution of the property to the heirs.
Q. Did you know how the property was distributed according to
the will? "A. I know that more than P500,000 was for the widow
and her son, more than P100,000 for the heirs that are in the
family. (Exhibit "6", p. 28).
Q. You stated that you were one of the witnesses to the will and
that the will was written in Spanish. Was it written in typewriting or
in handwriting of somebody? "A. That will was written in
typewriting.
Q. Did you read the contents of that will, or do you know the
contents of that will? A. No, sir, because I do not know
Spanish.
Q. How do you know that it was the will of Jose B. Suntay ? "A.
Because I was one of the signers and I saw it." (Exhibit "6", p. 19.)
22. Do you understand the language in which that will was
written? ... I know a little Spanish.
23. Do you talk or write that language? I can write and talk a little
Spanish. (Exhibits D, D-1.)
As to Ana Suntay's corroborating testimony, Judge Pecson aptly
made the following findings: "Ana Suntay, one of the heirs and
who would be affected adversely by the legalization of the will in
question, also testified on rebuttal that she saw the original will in
the possession of Manuel Suntay immediately after the snatching.
She read it and she particularly remembers the manner in which
the properties were to be distributed. Exhibit B was shown to her
on the witness stand and she declared that the provision
regarding the distribution of the properties in said Exhibit B is the
same as that contained in the original will. Said testimony of Ana
Suntay, therefore, belies the testimony of Atty. Alberto Barretto."
And yet in the resolution on the motion for new trial, the trial
Judge had to state that "Ana Suntay on rebuttal did not, likewise,
prove clearly and distinctly the provisions of the said lost will,
because she has not had enough schooling and she does not
possess adequate knowledge of the Spanish language as shown
by the fact that she had to testify in Tagalog on the witness
stand." The potent error committed by Judge Pecson in reversing
his views as regards Ana's testimony, is revealed readily in the
following portions of the transcript:
P. Cuantas paginas tenia aquel documento a que usted se
refiere? "R. Probablemente seria mas de veinte (20) paginas.
P. No serian treinta (30) paginas? "Abogado Recto: La testigo
ha contestado ya que mas de veinte (20).
Juzgado: Se estima
Abogado Mejia:
P. Usted personalmente leyo el documento" "R. Yo leyo mi
hermano en presencia mia.
P. La pregunta es, si usted personalmente ha leido el
documento? " R. Si, lo he visto.
P. No solamente le pregunto a usted si Vd. ha visto el testamento
sino si usted ha leido personalmente el testamento? "R. Si la
parte de la adjudicacion lo he leido para asegurarme a que
porcion corresponde a cada uno de nosotros.
P. Puede usted repetir poco mas o menos esa porcion a que se
hacia la distribucion del alegado testamento? "R. Como ya he
declarado, que las propiedades de mi difunto padre se habian
dividido en tres partes, una tercera parte se nos adjudica a
nosotros diez (1) hijos en primeros nupcias y segunda nupcia, la
segunda tercera parte los adjudica a la viuda y a Silvino, y la otra
tercera parte se lo adjudica a sus hijos como mejora a Silvino,
Apolonio, Concepcion y Jose.
P. Eso, tal como usted personalmente lo leyo en el documento?
"R. Si Seor.
P. Quiere usted tener la bondad, seora, de repetir poco mas o
menos las palabras en ese documento que se distribuia las
propiedades del defundo padre usted como usted relata aqui?
"Abogado Recto: Objetamos a la pregunta por falta de base,
porque elle solamente se fijo en la parte como se distribuian las
12
propiedades pero no ha dicho la testigo que ella lo ha puesto de
memoria, ni Vd. ha preguntado en que lenguaje estaba escrito el
testamento ...
Juzgado: Se estima.
Abogado Mejia:
P. Sabe usted en que lenguaje estaba redactado el documento
que usted leyo personalmente? "R. En Castellano.
P. Puede usted repetirnos ahora en Castellano algunas frases o
palabras como se hizo la distribucion en aquel supuesto
testamento?
Abogado Recto: Objecion, por falta de base, uno puede entender
el espaol y sin embargo no podra repetir lo que ha leido, y no se
sabe todavia si ha estudiado el espaol bastante hasta el punto
de poder hablarlo.
Juzgado: Se estima.
Abogado Mejia
P. Usted dijo que estaba puesto en castellano el supuesto
testamento que Vda. leyo, usted poso el castellano? "R. Yo
entiendo el castellano, pero no puedo hablar bien.
P. Usted estudio el castellano en algun colegio? "Rj. Si, seor,
En Sta. Catalina.
P. Cuantos aos? "R. Nuestros estudios no han sido
continuous porque mi padre nos ingresaba en el colegio y
despues nos sacaba para estar afuera, y no era continuo nuestro
estudio.
P. Pero en total, como cuantos meses o aos estaba usted en el
colegio aprendiendo el castelano? "R. Unos cuatro o cinco
aos.
P. Entonces usted puede leer el castellano con facilidad, seora?
"R. Si, castellano sencillo puedo entender y lo puedo leer.
P. Usted entiende las preguntas que se le dirigian aqui en
castellano sin interpretacion o sin el interprete? "R. Si, Seor.
P. Puede usted contestar en castellano? "R. Bueno, pero
como de contestar, por eso quiero que la pregunta se me
traduzca antes. asi puedo contestar debidamente. (t.s.n. pp. 533534.)
We are really at a loss to understand why, without any change
whatsoever in the evidence, the trial Judge reversed his first
decision, particularly when he announced therein that "it is now
incumbent upon this court to delve into the evidence whether or
not Jose B. Suntay, deceased, left a will (the draft of which is
Exhibit B) and another will which was executed and probated in
Amoy, China." His action is indeed surprising when we take into
account the various circumstancial features presently to be
stated, that clearly confirm the testimony of Judge Anastacio
Teodoro, G. Toh and Ana Suntay, or otherwise constitute visible
indicia of oppositor's desire to frustrate the wishes of his father,
Jose B. Suntay.
In our opinion the most important piece of evidence in favor of the
petitioner's case is the draft of the lost will, Exhibit "B." Its
authenticity cannot be seriously questioned, because according to
the trial Judge himself, oppositor's own witness, Atty. Alberto
Barretto, admitted it to be "identical in substance and form to the
second draft which he prepared in typewriting." Indeed, all the
"A's" and "B's" in the handwritten insertions of the draft are very
similar to those in Barretto's admittedly genuine signature on the
envelope, Exhibit "A." The finding of Judge Pecson on the point in
his first decision (reiterated expressly in the resolution on the
motion for new trial), should control, not only because it is in
accordance with the evidence but because the oppositor had
failed and did not even attempt to have the trial Judge reconsider
or reverse his factual conclusions. The draft, Exhibit "B," having
been positively identified by the witnesses for the petitioner to be
an exact copy of the lost will of Jose B. Suntay, is therefore
conclusive. Oppositor's effort to show that said draft was never
signed in final form, and was thought of merely to deceive
petitioner's mother, Lim Billian, and that the will actually executed
and put in the envelope, Exhibit "A", provided that the testator's
estate would be divided equally among his heirs, as in the case of
intestacy, was necessarily futile because, if this allegation is true,
the will would not have been "snatched" from Go Toh and the
loss certainly cannot be imputed to the widow Lim Billian or the
petitioner; the snatched will would have been produced to put an
end to petitioner's and his mother's claim for greater inheritance
or participation under the lost will; and the envelope containing
the first will providing for equal shares, would not have been
entrusted to the care and custody of the widow Lim Billian.
It is very noteworthy that out of the nine children of the first
marriage, only Angel, Jose and Federico Suntay had opposed the
probate of the will in question; the rest, namely, Ana, Aurora,
Concepcion, Lourdes, Manuel and Emiliano Suntay, having
expressly manifested in their answer that they had no opposition
thereto, since the petitioner's alternative petition "seeks only to
put into effect the testamentary disposition and wishes of their late
father." This attitude is significantly an indication of the justness of
petitioner's claim, because it would have been to their greater
advantage if they had sided with oppositor Federico Suntay in his
theory of equal inheritance for all the children of Jose B. Suntay.
Under the lost will or its draft Exhibit "B", each of the Suntay
children would receive only some P 25,000.00, whereas in case
of intestacy or under the alleged will providing for equal shares,
each of them would receive some P100,000.00. And yet the
Suntay children other than Angel, Jose and Federico had chosen
to give their conformity to the alternative petition in this case.
Another unequivocal confirmation of the lost will is the will which
Jose B. Suntay executed in Amoy, Fookien, China, on January 4,
1931, and probated in Amoy District Court, China, containing
virtually the same provisions as those in the draft Exhibit "B".
What better evidence is there of an man's desire or insistence to
express his last wishes than the execution of a will reiterating the
same provisions contained in an earlier will. Assuming that the
Chinese will cannot be probated in the jurisdiction, its probative
value as corroborating evidence cannot be ignored.
Oppositor himself had admitted having read the will in question
under which the widow Lim Billian was favored; and this again in
a way goes to corroborate the evidence for the petitioner as to the
contents of the will sought to be probated.
COURT:
Q. Have you read the supposed will or the alleged will of your
father? "A. Yes, sir.
COURT:
Q. Can you tell the court the share or participation in the
inheritance of Maria Natividad Lim Billian according to the will?
A. Yes sir, she will inherit, I think, two-thirds (2/3) of the estate, in
other words she is the most favored in the will, so when they sold
that, they sold everything, they are selling everything even the
conjugal property. (t. s. n. 228-229.)
The decision of the majority leans heavily on the testimony of
Atty. Alberto Barretto, forgetful perhaps of the fact that the trial
Judge gave no credence to said witness. It should be repeated
that Judge Pecson reiterated in the resolution on the motion for
new trial all his findings in the first decision. If as Atty. Barretto
testified, Lim Billian was entitled under the will actually signed by
Jose Suntay only to P10,000.00, in addition to properties in China
value at P15,000.00, the fees of P25,000.00 admittedly asked by
him would absorb her entire inheritance; and this would normally
not be done by any law practitioner. Upon the other hand, there is
evidence to the effect that Atty. Barretto might have become
hostile to the petitioner and his mother Lim Billian in view of the
latter's refusal to agree to the amount of P25,000.00 and her offer
to pay only P100.00. There is also evidence tending to show that
as early as 1942, Atty. Barretto was paid by oppositor Federico
Suntay the sum of P16,000.00 which, although allegedly for
services in the testate proceedings, was paid out of the personal
funds of said oppositors to supply Atty. Barretto's needs. This
circumstances perhaps further explains why the latter had to
support the side of Federico Suntay.
We have quoted in full the decision of this court in the "snatching"
case and the first decision of Judge Pecson in this case, both in
the hope and in the belief (1) that the first would reveal the
13
manner by which those adversely affected had planned to prevent
the last wishes of the deceased Jose B. Suntay from being
carried on, and (2) that the second, by the facts correctly recited
therein and by the force and accuracy of its logic would amply
show the weakness and utter lack of foundation of the resolution
on the motion for reconsideration. We have set forth at length
pertinent portions of the testimony of various witnesses to
demonstrate more plainly the plausibility of the original decision of
Judge Pecson, and the latter's consequent bad judgment in
having forced himself to accomplish a somersault, a feat which
the majority, in my opinion, have mistakenly commended. We
have found this to be one of the cases of this court in which we
have had occasion to participate, where there can be absolutely
no doubt as to the result outright reversal for which, with
due respect to the majority opinion, we vote without hesitancy.
Montemayor and Jugo, JJ., concur.
RESOLUTION
5 November 1954
PADILLA, J.:
This is a motion for reconsideration of the decision promulgated
on 31 July 1954, affirming the decree of the Court of First
Instance of Bulacan which disallowed the alleged last will and
testament executed in November 1929 and the alleged last will
and testament executed in Kulangsu, Amoy, China, on 4 January
1931, by Jose B. Suntay, without pronouncement as to costs, on
grounds that will presently be taken up and discussed.
Appellant points to an alleged error in the decision where it states
that
. . . This petition was denied because of the loss of said will after
the filing of the petition and before the hearing thereof, . . .
because according to him the "will was lost before not after (the)
filing of the petition." This slight error, if it is an error at all, does
not, and cannot, after the conclusions and pronouncements made
in the judgment rendered in the case. In his alternative petition the
appellant alleges:
4. That on October 15, 1934, Marian Natividad Lim Billian, the
mother of herein petitioner filed a petition in this court for the
allowance and probate of a last will and testament executed, and
signed in the Philippines in the year 1929 by said deceased Jose
B. Suntay. (P. 3, amended record on appeal.)
If such will and testament was already lost or destroyed at the
time of the filing of the petition by Maria Natividad Lim Billian (15
October 1934), the appellant would have so stated and alleged. If
Anastacio Teodoro, a witness for the appellant, is to be believed
when he testified
. . . that one day in November 1934 (p. 273, t. s. n., hearing of 19
January 1948), ... Go Toh arrived at his law office in the De Los
Reyes Building and left an envelope wrapped in red handkerchief
[Exhibit C] (p. 32, t. s. n., hearing of 13 October 19470 . . .
and
If the will was snatched after the delivery thereof by Go Toh to
Anastacio Teodoro and returned by the latter to the former
because they could not agree on the amount of fees, . . .
then on 15 October 1934, the date of the filing of the petition, the
will was not yet lost. And if the facts alleged in paragraph 5 of the
appellant's alternative petition which states:
That this Honorable Court, after hearing, denied the aforesaid
petition for probate filed by Maria Natividad Lim Billian in view of
the loss and/or destruction of said will subsequent to the filing of
said petition and prior to the hearing thereof, and the alleged
insufficiency of the evidence adduced to established the loss
and/or destruction of the said will, (Emphasis supplied, P. 3,
amended record on appeal.)
may be relied upon, then the alleged error pointed out by the
appellant, if it is an error, is due to the allegation in said paragraph
of his alternative petition. Did the appellant allege the facts in said
paragraph with reckless abandon? Or, did the appellant make the
allegation as erroneously as that which he made in paragraph 10
of the alternative petition that "his will which was lost and ordered
14
infirmity born of a mistaken premise that all the conclusions and
pronouncements made by the probate court in the first decree
which allowed the probate of the lost will of the late Jose B.
Suntay must be accepted by this Court. This is an error. It must
be borne in mind that this is not a petition for a writ of certiorari to
review a judgment of the Court of Appeals on questions of law
where the findings of fact by said Court are binding upon this
Court. This is an appeal from the probate court, because the
amount involved in the controversy exceeds P50,000, and this
Court in the exercise of its appellate jurisdiction must review the
evidence and the findings of fact and legal pronouncements made
by the probate court. If such conclusions and pronouncements
are unjustified and erroneous this Court is in duty bound to correct
them. Not long after entering the first decree the probate court
was convinced that it had committed a mistake, so it set aside the
decree and entered another. This Court affirmed the last decree
not precisely upon the facts found by the probate court but upon
facts found by it after a careful review and scrutiny of the
evidence, parole and documentary. After such review this Court
has found that the provisions of the will had not been established
clearly and distinctly by at least two credible witnesses and that
conclusion is unassailable because it is solidly based on the
established facts and in accordance with law.
The appellant and the dissent try to make much out of a pleading
filed by five (5) children and the widow of Apolonio Suntay,
another child of the deceased by the first marriage, wherein they
state that
. . . in answer to the alternative petition filed in these proceedings
by Silvino Suntay, through counsel, dated June 18, 1947, to this
Honorable Court respectfully state that, since said alternative
petition seeks only to put into effect the testamentary disposition
and wishes of their late father, they have no opposition thereto.
(Pp. 71-72, amended record on appeal.)
Does that mean that they were consenting to the probate of the
lost will? Of course not. If the lost will sought to be probated in the
alternative petition was really the will of their late father, they, as
good children, naturally had, could have, no objection to its
probate. That is all that their answer implies and means. But such
lack of objection to the probate of the lost will does not relieve the
proponent thereof or the party interested in its probate from
establishing its due execution and proving clearly and distinctly
the provisions thereof at least two credible witnesses. It does not
mean that they accept the draft Exhibit B as an exact and true
copy of the lost will and consent to its probate. Far from it. In the
pleading copied in the dissent, which the appellant has owned
and used as argument in the motion for reconsideration, there is
nothing that may bolster up his contention. Even if all the children
were agreeable to the probate of said lost will, still the due
execution of the lost will must be established and the provisions
thereof proved clearly and distinctly by at least two credible
witnesses, as provided for in section 6, Rule 77. The appellant's
effort failed to prove what is required by the rule. Even if the
children of the deceased by the first marriage, out of generosity,
were willing to donate their shares in the estate of their deceased
father or parts thereof to their step mother and her only child, the
herein appellant, still the donation, if validly made, would not
dispense with the proceedings for the probate of the will in
accordance with section 6, Rule 77, because the former may
convey by way of donation their shares in the state of their
deceased father or parts thereof to the latter only after the decree
disallowing the will shall have been rendered and shall have
become final. If the lost will is allowed to probate there would be
no room for such donation except of their respective shares in the
probated will.
The part of the deposition of Go Toh quoted in the motion for
reconsideration which appellant underscores does not refer to Go
Toh but to Manuel Lopez. Even if Go Toh heard Manuel Lopez
read the draft (Exhibit B) for the purpose of checking it up with the
original held and read by Jose B. Suntay, Go Toh should not have
understood the provisions of the will because he knew very little
15
ordering you to pay that, do you have that copy of the order?
A. Yes, sir, I have, but I think that was burned. (P. 184, t. s. n.,
supra.).
So the sum of P16,000 was paid upon recommendation of the
former administrator and order of the probate court for services
rendered by Alberto Barretto not only in the probate proceedings
that also for services rendered to his father. But if this sum of
P16,000 paid to Alberto Barretto upon recommendation of the
previous administrator and order of the probate court for
professional services rendered in the probate proceedings and to
the deceased in his lifetime be taken against his truthfulness and
veracity as to affect adversely his testimony, what about the
professional services of Anastacio Teodoro who appeared in this
case as one of the attorneys for the petitioner-appellant? (P. 2, t.
s. n., hearing of 13 October 1947.)Would that not likewise or by
the same token affect his credibility? It is the latter's interest more
compelling than the former's?
For the foregoing reasons, the motion for reconsideration is
denied.
Pablo, Bengzon, Reyes, A. and Concepcion, JJ., concur.
Paras, C.J., dissenting:
For the same reasons and considerations set forth in detail in my
dissent promulgated on July 31, 1954, I vote to grant the motion
for reconsideration.
Montemayor and Jugo, JJ., concur.
In addition, the due execution of the will was not established. The
only evidence on this point is to be found in the testimony of the
petitioner. Aside from this, there was nothing to indicate that the
will was acknowledged by the testator in the presence of two
competent witnesses, of that these witnesses subscribed the will
in the presence of the testator and of each other as the law of
West Virginia seems to require. On the supposition that the
witnesses to the will reside without the Philippine Islands, it would
then the duty of the petitioner to prove execution by some other
means (Code of Civil Procedure, sec. 633.)
It was also necessary for the petitioner to prove that the testator
had his domicile in West Virginia and not establish this fact
consisted of the recitals in the CATHY will and the testimony of
the petitioner. Also in beginning administration proceedings
orginally in the Philippine Islands, the petitioner violated his own
theory by attempting to have the principal administration in the
Philippine Islands.
While the appeal pending submission in this court, the attorney for
the appellant presented an unverified petition asking the court to
accept as part of the evidence the documents attached to the
petition. One of these documents discloses that a paper writing
purporting to be the was presented for probate on June 8, 1929,
to the clerk of Randolph Country, State of West Virginia, in
vacation, and was duly proven by the oaths of Dana Wamsley
and Joseph L. MAdden, the subscribing witnesses thereto , and
ordered to be recorded and filed. It was shown by another
document that, in vacation, on June 8, 1929, the clerk of court of
Randolph Country, West Virginia, appointed Claude W. Maxwell
as administrator, cum testamento annexo, of the estate of Edward
Randolph Hix, deceased. In this connection, it is to be noted that
the application for the probate of the will in the Philippines was
filed on February 20, 1929, while the proceedings in West Virginia
appear to have been initiated on June 8, 1929. These facts are
strongly indicative of an intention to make the Philippines the
principal administration and West Virginia the ancillary
administration. However this may be, no attempt has been made
to comply with Civil Procedure, for no hearing on the question of
the allowance of a will said to have been proved and allowed in
West Virginia has been requested. There is no showing that the
deceased left any property at any place other than the Philippine
Islands and no contention that he left any in West Virginia.
Reference has been made by the parties to a divorce purported to
have been awarded Edward Randolph Hix from Annie Cousins
Hix on October 8, 1925, in the State of West specific
pronouncements on the validity or validity of this alleged divorce.
For all of the foregoing, the judgment appealed from will be
affirmed, with the costs of this instance against the appellant.
Villamor, Ostrand, Johns, Romualdez and Villa-Real, JJ., concur.
16
(1) The approval of said scheme of partition; (2) denial of his
participation in the inheritance; (3) the denial of the motion for
reconsideration of the order approving the partition; (4) the
approval of the purchase made by the Pietro Lana of the
deceased's business and the deed of transfer of said business;
and (5) the declaration that the Turkish laws are impertinent to
this cause, and the failure not to postpone the approval of the
scheme of partition and the delivery of the deceased's business to
Pietro Lanza until the receipt of the depositions requested in
reference to the Turkish laws.
The appellant's opposition is based on the fact that the partition in
question puts into effect the provisions of Joseph G. Brimo's will
which are not in accordance with the laws of his Turkish
nationality, for which reason they are void as being in violation or
article 10 of the Civil Code which, among other things, provides
the following:
Nevertheless, legal and testamentary successions, in respect to
the order of succession as well as to the amount of the
successional rights and the intrinsic validity of their provisions,
shall be regulated by the national law of the person whose
succession is in question, whatever may be the nature of the
property or the country in which it may be situated.
But the fact is that the oppositor did not prove that said
testimentary dispositions are not in accordance with the Turkish
laws, inasmuch as he did not present any evidence showing what
the Turkish laws are on the matter, and in the absence of
evidence on such laws, they are presumed to be the same as
those of the Philippines. (Lim and Lim vs. Collector of Customs,
36 Phil., 472.)
It has not been proved in these proceedings what the Turkish
laws are. He, himself, acknowledges it when he desires to be
given an opportunity to present evidence on this point; so much
so that he assigns as an error of the court in not having deferred
the approval of the scheme of partition until the receipt of certain
testimony requested regarding the Turkish laws on the matter.
The refusal to give the oppositor another opportunity to prove
such laws does not constitute an error. It is discretionary with the
trial court, and, taking into consideration that the oppositor was
granted ample opportunity to introduce competent evidence, we
find no abuse of discretion on the part of the court in this
particular. There is, therefore, no evidence in the record that the
national law of the testator Joseph G. Brimo was violated in the
testamentary dispositions in question which, not being contrary to
our laws in force, must be complied with and executed.
lawphil.net
Therefore, the approval of the scheme of partition in this respect
was not erroneous.
In regard to the first assignment of error which deals with the
exclusion of the herein appellant as a legatee, inasmuch as he is
one of the persons designated as such in will, it must be taken
into consideration that such exclusion is based on the last part of
the second clause of the will, which says:
Second. I like desire to state that although by law, I am a Turkish
citizen, this citizenship having been conferred upon me by
conquest and not by free choice, nor by nationality and, on the
other hand, having resided for a considerable length of time in the
Philippine Islands where I succeeded in acquiring all of the
property that I now possess, it is my wish that the distribution of
my property and everything in connection with this, my will, be
made and disposed of in accordance with the laws in force in the
Philippine islands, requesting all of my relatives to respect this
wish, otherwise, I annul and cancel beforehand whatever
disposition found in this will favorable to the person or persons
who fail to comply with this request.
The institution of legatees in this will is conditional, and the
condition is that the instituted legatees must respect the testator's
will to distribute his property, not in accordance with the laws of
his nationality, but in accordance with the laws of the Philippines.
If this condition as it is expressed were legal and valid, any
legatee who fails to comply with it, as the herein oppositor who,
17
personal effects to be delivered to her for her use and profit; the
moneys, securities and other valuable property, not personal
effects, to be held in trust for her benefit by my executors, at their
absolute discretion, to be administered for her permanent benefit
in whatever way they may consider most advantageous in the
circumstances existing. Since the said Mercedes de Leon is not of
sound judgment, and discretion in the handling of money, it is not
my wish that she be given any sums of money other than for her
current needs, except as my executors in their judgment deem
advantageous to her. In case the amount available for this
bequest be sufficient to purchase an adequate annuity, the
executors in their discretion may do so. And I attest and direct
that I do not wish to intend that the action of my executors upon
their discretion in this matter be questioned by anyone
whatsoever.
For the purpose of carrying out that testamentary provision,
James Madison Ross was appointed trustee by the New York
County Surrogate's Court on February 4, 1948. Once appointed,
and with the beneficiary signing the application with him, Ross
bought an annuity from the Manufacturer's life Insurance Co. at its
head office in Toronto, Canada, paying in advance $17,091.03 as
the combined premiums. The contract stipulates for a monthly
payment of $57.60 to Mercedes Benz during her lifetime, with the
proviso that in the event of her death, the residue, if any, of the
capital sum shall be paid in one sum to James Madison Ross or
his successor as trustee. And beginning May 27, 1948, Mercedes
de Leon has been receiving the stipulated monthly allowance
through the Insurance Company's Manila Office.
With the object, so it would seem, of getting hold at once of the
entire amount invested in the annuity, Mercedes de Leon on
September 4, 1948, presented Butler's will for probate in the
Court of First Instance of Manila, and secured the appointment of
Ada Loggey Ghezzi as administratrix with the will annexed early
in 1949. (James Madison Ross and Ewald E. Selph had expressly
declined appointment as executors "on the ground that the
probate proceedings of the above estate were terminated by the
Surrogate's Court of the County of New York, New York City, U.
S. A., and that there are no properties of the estate left to be
administered.") After having qualified, the administratrix filed the
motion which Judge Amparo has denied; and as the party most if
not solely interested in that motion, Mercedes de Leon has joined
Ghezzi in this appeal.
The administration of Butler's estate granted in New York was the
principal or domiciliary administration (Johannes vs. Harvey, 43
Phil., 175), while the administration taken out in the Philippines is
ancillary. However, the distinction serves only to distinguish one
administration from the other, for the two proceedings are
separate and independent. (34 C.J.S. 1232,1233).
The important thing to inquire into is the Manila court's authority
with respect to the assets herein involved. The general rule
universally recognized is that administration extends only to the
assets of a decedent found within the state or country where it
was granted, so that an administrator appointed in one state or
country has no power over property in another state or country.
(Keenan vs. Toury, 132 A.L.R. 1362; Nash vs. Benari, 3 A.L.R.
61; Michigan Trust Co. vs. Chaffee, 149 A.L.R. 1078).This
principle is specifically embodied in section 4 of Rule 78 of the
Rules of Court:
Estate, how administered.When a will is thus allowed, the court
shall grant letters testamentary, or letters of administration with
the will annexed, and such letters testamentary or of
administration, shall extend to all the estate of the testator in the
Philippines. Such estate, after the payment of just debts and
expenses of administration, shall be disposed of according to
such will, so far as such will may operate upon it; and the residue,
if any, shall be disposed of as is provided by law in cases of
estates in the Philippines belonging to persons who are
inhabitants of another state or country.
It is manifest from the facts before set out that the funds in
question are outside the jurisdiction of the probate court of Manila.
18
Difference, account of the property Bonga
P10. 55
Difference, account of the property Basag
218. 75
Difference, small accounts Bonga and Basag
8. 80
Difference, account estate of A. Sanchez
150. 00
Difference, account heirs of J. M. Ceballos
224. 81
Difference, account hemp of La Trinidad
82. 87
Difference, account workmen at La Trinidad 80. 70
Difference, account lates of Ligao
2. 00
Small accounts of Bonga and Basag 3,676. 84
Cost of 1 lamp and 1 barometer
33. 50
Workmen at La Trinidad
5,709. 90
Excess of salaries paid account general expenses at La
Trinidad
670. 00
Account of cockpit
34. 15
Account late Caualog 220. 10
Account Jesus Teran
235. 92
Account Antonio Moreda
1,029. 83
Total
12,388. 72
In answer to the said complaint, the Defendant admitted certain
allegations and denied others. The Defendant admitted that he
owed the Plaintiff P188. 39 but claimed that the Plaintiff owed him
the sum of P482. 14, and that the Plaintiff, therefore, still owed to
the Defendant the difference between P188. 39 and P482. 14, or
the sum of P293. 75, for which latter amount the Defendant
prayed for judgment, with interest and costs against the Plaintiff.
After hearing the evidence adduced during the trial of the cause,
the lower court found from the evidence that the Defendant, as
administrator of the estate of Antonio Sanchez Muoz, or that part
of the said estate belonging to the Plaintiff, owed the Plaintiff the
sum of P3,447. 46, with interest at 6 per cent until the same
amount should be fully paid. From this decision of the lower court
the Defendant appealed and made the following assignments of
error: chanrobles virtualawlibrary
1.
The court erred in holding that the Defendant, from
September 17, 1901, to October 6, 1906, managed and
administered the estate of Sanchez Muoz as a judicial
administrator or executor.
2.
The court erred in holding that the Defendant was
responsible to the Plaintiffs for the loans made to different
persons for different accounts, and for credits against the persons
mentioned in the complaint.
3.
The court erred in declaring in the judgment that the
difference in the weight of the scales was illegal.
4.
And the court erred in sentencing the Defendant to pay
the costs specified in the judgment.
With reference to the first above assignment of error, from the
record to this court the following facts appear: chanrobles
virtualawlibrary
First. That the Defendant Leopoldo Teran was, on the 17th day of
September, 1901, appointed as administrator of said estate. The
record also discloses that the Defendant entered into a bond in
the sum of 10,000 dollars, gold, for the faithful performance of his
duties as such representative of the estate of Antonio Sanchez
Muoz.
Second. The record further discloses that upon the 18th day of
March, 1902, the Court of First Instance of the Province of Albay
appointed Maria Munoz y Gomez as guardian for the said Maria
Manuela and Maria del Carmen Sanchez Munoz, and that the
said Maria Munoz y Gomez gave the required bond for the faithful
performance of her duties as such guardian.
Third. While there are some indications in the record that the
Defendant continued to act as the administrator of said estate
after the appointment of the said Maria Munoz y Gomez, up to
and including the 6th day of October, 1906, yet the fact exists and
must be accepted as true that the said Maria Munoz Gomez was
the actual representative of the said Maria Manuela and Maria del
Carmen Sanchez Munoz in the administration of their interests in
the estate of the said Antonio Sanchez Munoz, from and after the
18th day of March, 1902, until the 6th day of October, 1906, and
therefore the said Maria Munoz y Gomez, as such guardian and
administratrix of the estate of the said minors, must be held
responsible for the property belonging to said minors during the
period while she (Maria Munoz y Gomez) was the actual guardian
of said minors.
Fourth. On the 6th day of October, 1906, the Court of First
Instance of the Province of Albay, for the reason that the said
Maria Munoz y Gomez was not a resident of the Philippine
Islands at the time of her appointment (the 18th day of March,
1902) removed her as such guardian and appointed as guardian
of said minors Felix Samson, and required from said Samson, as
provisional guardian, a bond in the sum of P2,000. On the 18th
day of October, 1906, the said Samson duly executed the bond
as required.
From the order of the judge annulling the appointment of the said
Maria Munoz y Gomez her lawyers appealed to the Supreme
Court, which appeal was subsequently withdrawn. The order
therefore revoking the appointment of the said Maria Munoz y
Gomez became final. The mere fact, however, that she had been
removed as said guardian did not relieve her, nor her bondsmen
from liability to the minors during the time that she was duly acting
as said guardian. It must be clear, therefore, that the said Maria
Munoz y Gomez is responsible to said minors for the
administration of their interests in the estate of the said Antonio
Sanchez Munoz from the time of her acceptance of said
appointment on the 18th day of March, 1902, up to the time of her
removal on the 6th day of October, 1906. If during this time she
allowed other persons to handle the property of her wards and if
any mismanagement or loss occurred thereby, the responsibility
must fall upon her. Unquestionably, she may have an action
against the persons to whom she entrusted the direct
management of said estate for any loss which they may have
negligently and corruptly occasioned her. Therefore, if any loss
occurred to the Plaintiff between the 18th day of March, 1902, and
the 6th day of October, 1906, they have a right of action only
against the said Maria Munoz Gomez as their legal guardian and
under the law the administratrix of the property of their estate.
In the claim presented by the Plaintiff against the Defendant no
dates are given showing the time of the particular loss or losses
occasioned by the Defendant. As was said above, the Defendant
was liable for losses only during the time that he was acting as
the legal representative of the said minors in the management of
their estate, from the 17th day of September, 1901, up to the time
that he was superseded by the aid Maria Munoz y Gomez, on the
18th day of March, 1902. There is no proof showing that any of
the losses constituting the amount which the Plaintiff claims
occurred within this period. However, the Defendant
acknowledged that of the amount claimed by the Plaintiff, he
owes to them the sum of P188. 39.
There is no claim of any loss or that the estate has not been
properly managed since the appointment of the said Felix
Samson on the 6th day of October, 1906.
From a consideration of all of the evidence brought to this court,
we reach the following conclusions: chanrobles virtualawlibrary
First. That the Defendant, Leopoldo Teran, was the duly
appointed and recognized representative of the minors Maria
Manuela and Maria del Carmen Sanchez Munoz in the
administration of their interests in the estate of the said Antonio
Sanchez Munoz from the 17th day of September, 1901, until the
18th day of March, 1902.
Second. That the said Doa Munoz y Gomez was the duly
appointed representative of the said minors in the administration
of their interests in the estate of the said Antonio Sanchez Munoz
from the 18th day of March, 1902, until the 6th day of October,
1906.
Third. That the said Leopoldo Teran was responsible to the
Plaintiff (the said minors) for the fruits and profits resulting from
their interests in the estate of the said Antonio Sanchez Munoz
from the said 17th day of September, 1901, to the 18th day of
19
March, 1902.
Fourth. That the said Doa Maria Munoz y Gomez was
responsible to the Plaintiff (the said minors) for the fruits and
profits resulting from the management of the estate of the said
Don Antonio Sanchez Munoz from the 18th day of March, 1902,
until the 6th day of October, 1906.
The record not disclosing that any of the amounts claimed by the
Plaintiff were due as a result of the management of the aid estate
during the time while the said Defendant was administering their
interests therein, except the sum of P188. 39, admitted to be due
by the Defendant, we are of the opinion, and so hold, that the only
amount which the Plaintiff is entitled to recover in this action is the
said amount of P188. 39.
Doa Maria Munoz y Gomez was, as above indicated, removed
upon the theory that her appointment was void because she did
not reside in the Philippine Islands. There is nothing in the law
which requires the courts to appoint residents only as
administrators or guardians. However, notwithstanding the fact
that there are no statutory requirements upon this question, the
courts, charged with the responsibilities of protecting the estates
of deceased persons, wards of the estate, etc., will find much
difficulty in complying with this duty by appointing administrators
and guardians who are not personally subject to their jurisdiction.
Notwithstanding that there is no statutory requirement, the courts
should not consent to the appointment of persons as
administrators and guardians who are not personally subject to
the jurisdiction of our courts here.
We deem it unnecessary to discuss the other assignments of
error for the reason that there is no evidence in the record
indicating any liability on the part of the Defendant other than his
admission above indicated.
For the reasons above stated, the judgment of the lower court is
hereby reversed, without any special finding as to costs.
Arellano, C.J., Torres and Mapa, JJ., concur.
Willard, J., concurs in the result.
error.
In the present case the court based its ruling on the fact that it
appeared from the record in Civil Case No. 1041 of the same
court, that the appellant had adverse interest in the estate of such
a character as to render him unsuitable as administrator.
Unsuitableness may consist in adverse interest of some kind or
hostility to those immediately interested in the estate. (18 Cyc.,
93, 94.) The court below therefore stated facts which may
constitute sufficient grounds for setting aside the appellant's
preferential rights and which, in the absence of proof to the
contrary, must be presumed sufficient. Whether they are in fact
sufficient, we are not in position to determine as we have not
before us the record in the aforesaid case No. 1041; it being a
record of the court below, that court could properly take judicial
notice thereof, but we cannot.
The order appealed from is affirmed, with the costs against the
appellant. So ordered.
Araullo, C.J., Street, Malcolm, Avancea, Villamor, and Johns,
JJ., concur.
20
The appellants' opposition to the appointment of Father Mercado
was based on his alleged unfitness and incapacity to discharge
the duties of executor for the following reasons: (1) That
notwithstanding the appellants' opposition, he contracted the
services of Attorneys Hipolito Alo and Gabino R. Veloso to
represent him in these proceedings for the sole purpose of
repaying the obligations he owed said Attorney Alo; (2) that he
cannot be impartial as executor because the church of San
Nicolas of which he is parish priest is one of the legatees named
in the will. It being natural that as such parish priest he would
favor the interests of his parish to those of the heir and the other
legatees, and above all, he is related to some of the legatees; (3)
that as the estate has no debts and the heirs instituted in the will
are all of age and are willing, according to them, to secure
payment of all the legacies, there is no necessity of making the
estate incur such unnecessary expenses as the executor's fees
and expenses and his attorneys' fees; (4) that the appellants are
better able to protect the interests of the estate; and (5) that
Attorney Margarito E. Revilles, married to the heir Cesarea
Gorordo, is willing to render professional services to the estate
free of charge.
The reasons advanced by the appellants do not seem to carry
sufficient weight to warrant the reversal of the appealed orders.
When the retired bishop Monsignor Juan Bautista Perfecto
Gorordo chose Father Emiliano Mercado as executor and
administrator of his estate after his death, he must have had good
and sufficient reasons therefore, and his will must be respected.
The evidence shows that when the deceased bishop made his will
naming said priest in preference to anybody else, he was in the
full enjoyment of his intellectual faculties. Under the
circumstances, it is not only just but also right to fully comply with
his last will; and this is precisely what the lower court did in
confirming the appointment of Father Mercado as executor
herein. As a matter of fact, section 641 of Act No. 190 provides
that when a will has been probed and allowed, the court is bound
to issue letters testamentary thereon to the person named as
executor therein provided he accepts the trust and gives the bond
as required by law, which Father Emiliano Mercado certainly did
willingly before assuming his trust. While it is true, as the
appellants contend, that this provision of the law should not be
strictly interpreted because the court would be deprived of its
power not to appoint, in certain cases, one who is unworthy of the
trust, notwithstanding the fact that he was named as such by the
testator (sec. 653, Act No. 190); it is also true that in order to do
this, the unworthiness, incapacity, ineptitude and unfitness of
such person must be manifest and real and not merely imaginary.
What acts committed by Father Mercado argue against this
capacity? The appellants allege as one of them his having
engaged the services of Attorney Alo, to whom he is under
obligation, in order to be able to repay him in some way not with
his own money but with the money of the estate, thereby
insinuating that he lacks the interest which a good executor must
have for the protection of the rights and interest of the estate
entrusted to him. The evidence relative to this matter shows that
Attorneys Hipolito Alo and Gabino R. Veloso were engaged by
Father Emiliano Mercado not as attorneys for the estate but as his
own, in his capacity as petitioner for the probate of the will of
Bishop Monsignor Juan Bautista Perfecto Gorordo. It shows
further that the special agreement he had with said attorneys
(Exhibit 3) was to the effect that their fees would only be that
determined and fixed by the court.
On the other hand, the alleged favors owed by Father Mercado to
Attorney Alo are those inferred from the following except from the
record:
Q. Is it true that you owe Attorney Alo favors? A. Properly they
are not favors, but of course, Mr. Alo has been one whom we
might call the mediator ( puente deplata) between the
parishioners of San Nicolas and myself. Thanks to his
intervention, many misunderstandings have been dissipated.
(Testimony of Father Mercado, t.s.n., page 35.)
G.R. No. L-5436, Ozaeta et al. v. Pecson and BPI, 93 Phil. 416
content follows
21
Republic of the Philippines
SUPREME COURT
Manila
EN BANC
June 30, 1953
G.R. No. L-5436
ROMAN OZAETA, ROSA GONZALES VDA. DE PALANCA,
JUSTO G. PALANCA, LEONARDA PALANCA DE ARANAS,
SEVERINA G. PALANCA, CARLOS PALANCA, JR., ANTONIO
G. PALANCA, MACARIO G. PALANCA, MILAGROS PALANCA
DE FURER, and RAMON G. PALANCA, petitioners,
vs.
HONORABLE POTENCIANO PECSON, Judge of First Instance
of Manila, and BANK OF THE PHILIPPINE ISLANDS,
respondents.
Roxas, Lichauco, Picazo and Manuel S. San Jose for
petitioners. Sebastian C. Palanca in his own behalf. Sison,
Arguego and Sison for investors.
LABRADOR, J.:
The question posed by the petition filed in this case is: Does a
probate court commit an abuse of discretion if, pending an appeal
against its order or judgment admitting a will to probate and
appointing as judicial administrator the person named therein as
executor, it appoints as special administrator any person other
than the executor named in the will?
The facts giving rise to the question may be briefly summarized
as follows: Carlos Palanca died on September 2, 1950; leaving a
will executed by him on May 19, 1945. In the will petitioner
Roman Ozaeta, former associate justice of this Court, was named
executor if General Manuel A. Roxas fails to qualify. Upon
Palanca's death, and General Roxas having died previously,
petitioner presented a petition for the probate of the will, at the
same time praying that he be appointed special administrator.
Some of the heirs of the decedent opposed this petition, and the
court on October 6, 1950, appointed the Philippine Trust
Company, a non-applicant and a stranger to the proceedings,
special administrator. On April 20, 1951, the Philippine Trust
Company presented a petition to resign as special administrator
on the ground of incompatibility of interest, as it had granted a
loan to heir Angel Palanca, who had pledged to it shares of the
Far Eastern University allegedly belonging to the estate of the
deceased. Thereupon petitioner reiterated his previous petition,
but the court appointed Sebastian Palanca, one of the heirs, to
take the place of the Philippine Trust Company. The order is
dated June 30, 1951. But on October 23rd, the court rendered an
order admitting the will to probate and appointing petitioner as
administrator. The order reads thus:
In view of all the foregoing, the court declares that the document
which was executed by the testator on May 19, 1945 (Exhibit D),
is the last will of Carlos Palanca Tanguinlay, and its probate is
hereby allowed. The court appoints the petitioner, Roman Ozaeta,
as executor, with a bond of P50,000 with sufficient sureties and
subject to the approval by this court. Once this decision has
become final and upon the approval of the said bond and the
taking of the oath of office, let letters testamentary issue
accordingly. With costs against the oppositors.
And on October 25, 1951, the court allowed the Philippine Trust
Company to resign, reconsidered its order appointing Sebastian
Palanca special administrator, and appointed instead the Bank of
the Philippine Islands. Petitioner moved to reconsider the order,
but his motion was denied, and thereupon the present petition
was filed. In its order the court held that it has discretion to
choose the special administrator and is not bound to appoint the
person named therein as executor, because the order had been
appealed.
Petitioner claims that the reason why the respondent judge does
not appoint him special administrator is his personal dislike for
him, and that the reasons given by the judge in not appointing
him, namely, alleged partiality to one group of heirs, less ability
and experience in handling estates as the appointees the
previous and the subsequent one are not actually the reasons
that impelled him to deny petitioner's appointment. On the other
hand, intervenors Maria Cuartero, et al., (a group of heirs), claim
that petitioner had close personal relations with Rosa Gonzales
(second wife of deceased) and her children, acting as sponsor in
her marriage with the deceased, obtaining a loan from her family,
etc. We have overlooked all the personal grounds or reasons
given by the parties, and have chosen to decide the issue from a
purely legal point of view.
It should be noted at the outset that Rule 81 of the Rules of Court,
under the provisions of which the order appealed from was made,
grants discretion to the probate court to appoint or not to appoint
a special administrator. It is silent as to the person that may be
appointed as special administrator, unlike section 6 of Rule 79,
which expressly gives the order of preference of the persons that
may be appointed regular administrator. We have held in the case
of Roxas vs. Pecson, however, that the appointment of special
administrators is not governed by the rules regarding the
appointment of regular administrators. (Roxas vs. Pecson, 82
Phil., 407, 46 Off. Gaz. [5] 2058.) But we further held, however,
that while the choice of the person lies within the court's
discretion, such discretion should not be a whimsical one, but one
that is reasonable and logical and in accord with fundamental
legal principles and justice. The fact that a judge is granted
discretion does not authorize him to become partial, or to make
his personal likes and dislikes prevail over, or his passions to rule,
his judgment. Such discretion must be based on reason and legal
principle, and it must be exercised within the limits thereof. And
there is no reason why the same fundamental and legal principles
governing the choice of a regular administrator should not be
taken into account in the appointment of the special administrator.
The choice of his executor is a precious prerogative of a testator,
a necessary concomitant of his right to dispose of his property in
the manner he wishes. It is natural that the testator should desire
to appoint one of his confidence, one who can be trusted to carry
out his wishes in the disposal of the estate. The curtailment of this
right may be considered as a curtailment of the right to dispose.
And as the rights granted by will take effect from the time of death
(Article 777, Civil Code of the Philippines), the management of his
estate by the administrator of his choice should be made as soon
as practicable, when no reasonable objection to his assumption of
the trust can be interposed any longer. It has been held that when
a will has been admitted to probate, it is the duty of the court to
issue letters testamentary to the person named as executor upon
his application (23 C.J. 1023). It is the testator that appoints his
executor, as the question as to his peculiar fitness for such a
position or his want of ability to manage the estate can not be
addressed to the discretion of the county judge. (Holbrook vs.
Head, 6 S.W. 592, 593, 9 Ky. 755.)
In the case at bar, the will has already been admitted to probate,
and respondent judge himself has expressly appointed petitioner
as administrator. The only reason or ground, therefore, for
suspending his appointment, and for the appointment of a special
administrator, who is not the petitioner himself, is a very technical
one. It also appears that the Philippine Trust Company, which had
acted as special administrator for a period of only a few months,
has submitted a bill for P90,000. This would cut deep into the
income of the estate, and if the new special administrator
appointed by the respondent judge takes office, it is not
improbable that the estate may again be subjected to the same
expensive cost of administration. Under these circumstances, it
would seem unreasonable to refuse to appoint the petitioner as
special administrator. To do so would be delaying the fulfillment of
the wishes of the testator and subjecting the estate to
unnecessary expense. Petitioner has cited precedents in the
surrogate courts of the State of New York to support his claim that
as the will appointing him regular administrator has been admitted
to probate by the trial judge, he should now be appointed special
administrator during the pendency of the appeal against the order
admitting the will to probate. In the case of In re Shonts' Estate,
22
178 N.Y.S. 762, 767-768, the judge makes the following very
pertinent remarks:
. . . . It is my firm belief that the appointment of the executors
named in a will as temporary administrators during contested
probates is not only more economical for suitors and estates in
ninety-nine cases of a hundred, but more consonant with the
dignity of a court of this character. The intrusion of nominees of
the court, strangers to the dead, very distasteful to the inhabitants
of this state, should be as rare as possible in this court if people of
property are to continue to feel as ease and in security in this
state.
The case of In re Erlanger's Estate, 242 N.Y.S. 249, also
reiterates the same principle.
The courts have always respected the right to which a testator
enjoys to determine who is most suitable to settle his
testamentary affairs, and his solemn selection should not lightly
be disregarded. After the admission of a will to probate, the courts
will not name a better executor for the testator nor disqualify, by a
judicial veto, the widow or friend or other person selected in the
will, except upon strict proof of the statutory grounds of
incompetency. Matter of Leland's Will, 219 N.Y. 387, 393, 114
N.E. 854. For the foregoing reasons the person selected by the
testator in three successive wills will be appointed. (Pages 254255).
The claimant's principal objection to the selection of Mr. Baron as
temporary administrator is founded upon her charge that he
exercised undue influence upon the testator in the drafting of the
will offered for probate here. She also stresses his personal
hostility to her. In my opinion, and in view of the special
circumstances of this case, these considerations do not constitute
a disqualification. Matter of Hilton's Will, 29 Misc. Rep. 532, 61
N.Y.S. 1073; Jessup-Redfield Surrogate's Courts, 6th Edit., page
743; Matter of Robert, N.Y. Law Journal, January 9th, 1912;
Matter of Ashmore's Estate, 48 Misc. Rep. 312, 96 N.Y.S. 772.
He receives no legacy under the will. He is an attorney of long
experience and his professional standing is attested by several
affiants. In addition to the fact that he was selected by Mr.
Erlanger as executor in three wills, it appears from several
affidavits that he was for a long period of time intimately
associated with Mr. Erlanger. This association not only involved a
personal friendship, but also the relationship of Mr. Baron as
lawyer and Mr. Erlanger as client. It involved also knowledge of
Mr. Erlanger's financial transactions, and, in addition, a close
business contact with Mr. Erlanger's various enterprises. Mr.
Baron was an officer or director of over thirty corporations through
which Mr. Erlanger's various activities were conducted. He held
powers of attorney from him in the last years of Mr. Erlanger's life.
He is qualified, therefore, by this experience to safeguard the
estate as temporary administrator. (Pages 252-253).
The writ prayed for is, therefore, granted, the appealed order
reversed, and the temporary injunction issued by the court made
absolute. Let temporary letters of administration be issued in favor
of petitioner during the pendency of the appeal from the order
admitting the will to probate.
Paras, C.J., Pablo, Bengzon, Tuason, Montemayor, Reyes, Jugo
and Bautista Angelo, JJ., concur.
23
Branch 143, Makati, Metro Manila and TERESA F. OLBES,
respondents.
Andres V. Maglipon for petitioner.
Sycip, Salazar, Hernandez & Gatmaitan for private respondent.
PADILLA, J.:
This is a petition for certiorari which seeks to annul, on the ground
of grave abuse of discretion, the Order of the respondent Judge,
dated 15 January 1985, cancelling the appointment of the
petitioner Beatriz F. Gonzales as a co-administratrix in Special
Proceedings No. 021 entitled "In the Matter of the Intestate Estate
of Ramona Gonzales Vda. de Favis," Branch 143, RTC, Makati,
Metro Manila; and the Order of 15 May 1985 denying
reconsideration of the same.
The facts are:
Special Proceedings No. 021, pending before the court a quo, is
an intestate proceeding involving the estate of the deceased
Doa Ramona Gonzales Vda. de Favis. Doa Ramona is
survived by her four (4) children who are her only heirs, namely,
Asterio Favis, Beatriz F. Gonzales, Teresa F. Olbes, and Cecilia
Favis-Gomez.
On 25 October 1983, the court a quo appointed petitioner Beatriz
F. Gonzales and private respondent Teresa Olbes as coadministratices of the estate.
On 11 November 1984, while petitioner Beatriz F. Gonzales was
in the United States accompanying her ailing husband who was
receiving medical treatment in that country, private respondent
Teresa Olbes filed a motion, dated 26 November 1984, to remove
Beatriz F. Gonzales as co-administratrix, on the ground that she
is incapable or unsuitable to discharge the trust and had
committed acts and omissions detrimental to the interest of the
estate and the heirs. Copy of said motion was served upon
petitioner's then counsel of record, Atty. Manuel Castro who,
since 2 June 1984, had been suspended by the Supreme Court
from the practice of law throughout the Philippines. 1
After the filing of private respondent's aforesaid motion,
respondent Judge Zoilo Aguinaldo issued an Order dated 4
December 1984 which required Beatriz F. Gonzales and the other
parties to file their opposition, if any, thereto. Only Asterio Favis
opposed the removal of Beatriz F. Gonzales as co-administratrix,
as the latter was still in the United States attending to her ailing
husband.
In an Order dated 15 January 1985, respondent Judge cancelled
the letters of administration granted to Beatriz F. Gonzales and
retained Teresa Olbes as the administratrix of the estate of the
late Ramona Gonzales. The Court, in explaining its action, stated:
. . . In appointing them, the court was of the opinion that it would
be to the best interest of the estate if two administrators who are
the children of the deceased would jointly administer the same.
Unfortunately, as events have shown, the two administrators have
not seen eye to eye with each other and most of the time they
have been at loggerheads with each other to the prejudice of the
estate. Beatriz F. Gonzales has been absent from the country
since October, 1984 as she is in the United States as stated in the
motion and opposition of Asterio Favis dated December 11, 1984,
and she has not returned even up to this date so that Teresa F.
Olbes has been left alone to administer the estate. Under these
circumstances, and in order that the estate will be administered in
an orderly and efficient manner, the court believes that there
should be now only one administrator of the estate. 2
Petitioner moved to reconsider the Order of 15 January 1985. Her
motion was opposed separately by private respondent Teresa
Olbes and another co-heir Cecilia Gomez. In her manifestation
and opposition to petitioner's motion for reconsideration, Cecilia
Gomez stated that it would be pointless to re-appoint Beatriz F.
Gonzales as co-administratrix of Teresa Olbes, as the former
would be leaving soon for the United States to attend to
unfinished business. Moreover, she expressed satisfaction with
the manner respondent Teresa Olbes had been managing and
administering the estate.
24
law and precedents.
In the present case, the court a quo did not base the removal of
the petitioner as co-administratrix on any of the causes specified
in respondent's motion for relief of the petitioner. Neither did it
dwell on, nor determine the validity of the charges brought against
petitioner by respondent Olbes. The court based the removal of
the petitioner on the fact that in the administration of the estate,
conflicts and misunderstandings have existed between petitioner
and respondent Teresa Olbes which allegedly have prejudiced
the estate, and the added circumstance that petitioner had been
absent from the country since October 1984, and up to 15
January 1985, the date of the questioned order.
Certainly, it is desirable that the administration of the deceased's
estate be marked with harmonious relations between coadministrators. But for mere disagreements between such joint
fiduciaries, without misconduct, one's removal is not favored. 12
Conflicts of opinion and judgment naturally, and, perhaps
inevitably, occur between persons with different interests in the
same estate. Such conflicts, if unresolved by the coadministrators, can be resolved by the probate court to the best
interest of the estate and its heirs.
We, like petitioner, find of material importance the fact that the
court a quo failed to find hard facts showing that the conflict and
disharmony between the two (2) co-administratrices were unjustly
caused by petitioner, or that petitioner was guilty of incompetence
in the fulfillment of her duties, or prevented the management of
the estate according to the dictates of prudence, or any other act
or omission showing that her continuance as co-administratrix of
the estate materially endangers the interests of the estate.
Petitioner Beatriz F. Gonzales is as interested as respondent
Olbes and the other heirs in that the properties of the estate be
duly administered and conserved for the benefit of the heirs; and
there is as yet no ground to believe that she has prejudiced or is
out to prejudice said estate to warrant the probate court into
removing petitioner as co-administratrix.
Respondent Judge removed petitioner Beatriz F. Gonzales as coadministratrix of the estate also on the ground that she had been
absent from the country since October 1984 and had not returned
as of 15 January 1985, the date of the questioned order, leaving
respondent Olbes alone to administer the estate.
In her motion for reconsideration of the Order dated 15 January
1985, petitioner explained to the court a quo that her absence
from the country was due to the fact that she had to accompany
her ailing husband to the United States for medical treatment. 13 It
appears too that petitioner's absence from the country was known
to respondent Olbes, and that the latter and petitioner Gonzales
had continually maintained correspondence with each other with
respect to the administration of the estate during the petitioner's
absence from the country. 14 As a matter of fact, petitioner, while
in the United States, sent respondent Olbes a letter addressed to
the Land Bank of the Philippines dated 14 November 1984, and
duly authenticated by the Philippine Consulate in San Francisco,
authorizing her (Olbes) to receive, and collect the interests
accruing from the Land Bank bonds belonging to the estate, and
to use them for the payment of accounts necessary for the
operation of the administration. 15
The above facts, we note, show that petitioner had never
abandoned her role as co-administratrix of the estate nor had she
been remiss in the fullfilment of her duties. Suffice it to state,
temporary absence in the state does not disqualify one to be an
administrator of the estate. Thus, as held in re Mc Knight's Will, a
temporary residence outside of the state, maintained for the
benefit of the health of the executors' family, is not such a
removal from the state as to necessitate his removal as executor.
. . . It seems quite clear that a temporary absence from the state
on account of ill health, or on account of business or for purposes
of travel or pleasure, would not necessarily establish the fact that
an executor "has removed" from the estate, within the intent of the
statute. The learned surrogate was evidently satisfied that the
sojourn of these executors in New Jersey was nothing more than
25
Singapore heirs apparently joined in asking that letters of
administration be granted by the Supreme Court of the Straits
Settlements to B. E. Johannes, the lawful husband of the
deceased. At least, on September 19, 1921, the husband of the
deceased. At least, on September 19, 1921, the husband was
named the administrator of the property of the deceased wife,
which was locally situate within the jurisdiction of the Supreme
Court of the Straits Settlements. (Under the British law [22 & 23
Charles II c 10, 29 Charles II c 3, and James II c 17], it would
seem that the husband is entitled to the whole of the estate of his
wife if she die intestate to the exclusive of any other next of kin.)
On October 1, 1921, the brother Alfred D' Almeida was, on his
petition, appointed administrator of the Manila estate of the
deceased consisting of P109,732.55. This sum it appears, was on
deposit in the Manila banks under and by virtue of guardianship
proceedings for the late Carmen Theodora Johannes, which were
finally terminated by the discharge of the guardian, the Philippine
Trust Company, on January 16, 1922.
The burden of the relator's contention is that the Honorable
George R. Harvey, as judge of First Instance of the City of Manila,
has acted in excess of his jurisdiction in appointing Alfred
D'Almeida administrator of the funds of the estate on deposit in
the Philippines, and that an administration in the jurisdiction is
unnecessary. Accordingly, relators pray the court to annul the
appointment of Alfred D'Almeida and to issue an order directing
the Judge of First Instance to have placed to the credit of B. E.
Johannes as administrator of the estate of Carmen Theodora
Johannes all of the funds of the late Carmen D'Almeida
Johannes, now on deposit and subject to the order of the court,
with P5,000 as damages. The respondents, Judge Harvey, and
the administrator Alfred D'Almeida, in compliance with the order
to show cause why the writ should not issue, contend that the
respondent judge has not in any manner acted in excess of the
jurisdiction duly conferred upon and exercised by him in the
manner provided by law, and that an order appointing an
administrator is a final and appealable order.
Certain general observations may possibly serve to clarify the
situation.
It is often necessary to have more than one administration of an
estate. When a person dies intestate owning property in the
country of his domicile as well as in a foreign country,
administration is had in both countries. That which is granted in
the jurisdiction of decedent's last domicile is termed the principal
administration, while any other administration is termed the
ancillary administration. The reason for the latter is because a
grant of administration does not ex proprio vigore have any effect
beyond the limits of the country in which it is granted. Hence, an
administrator appointed in a foreign state has no authority in the
United States. The ancillary administration is proper, whenever a
person dies, leaving in a country other than that of his las
domicile, property to be administered in the nature of assets of
the decedent, liable for his individual debts or to be distributed
among his heirs. (23 C. J., 1010, et seq.; 24 C. J., 1109, et seq.;
Wilkins vs. Ellett [1882], 108 U. S., 256; Perez vs. Aguerria
[1901], 1 Porto Rico Fed., 443; Vaughn vs. Barret [1833], 5 Vt.,
333.)
The principal administration in this instance is that at the domicile
of the late Carmen Theodora Johannes in Singapore, Straits
Settlements. What is sought in the Philippine Islands is an
ancillary
administration
subsidiary
to
the
domiciliary
administration, conformable to the provisions of sections 601,
602, and 603 of the Code of Civil Procedure. The proper course
of procedure would be for the ancillary administrator to pay the
claims of creditors, if there be any, settle the accounts, and remit
the surplus to the domiciliary jurisdiction, for distribution among
the next of kin. Such administration appears to be required in this
jurisdiction since the provisions of section 596 of the Code of Civil
Procedure, which permit of the settlement of certain estates
without legal proceedings, have not been met. The decision of
this court in Baldemor vs. Malangyaon ([1916]), 34 Phil., 368), on
26
proponents) complied with the requirement of said sec. 4 of Rule
77 of the Rules of Court, for that question has not been raised by
the appellants in the court below, either in their original petition for
relief of May 12, 1949 (pp. 2-8, Record on Appeal), or in their
motion for reconsideration dated August 27, 1949, of the order
denying their petition for relief (pp. 67-71). And there being no
evidence to the contrary, the legal presumption is that the court
which probated the will of October, 19, 1948., complied with its
duty and acted in lawful exercise of its jurisdiction in probating
said will (Sec. 69 (m) (n), Rule 123 of the Rules of Court).
Besides, appellee's attorney, in the statement of facts in to the
appellants' petition for relief, stated that "This Honorable Court set
its hearing [of the petition for allowance of the will of October 19,
1948] on December 2, 1948. Copy of this order was published in
"The Star Reporter", newspaper of general circulation in Bulacan
on November 5, 12 and 19 respectively, and the corresponding
notices served by the office of the Clerk of Court, in accordance
with law" (pp. 25 26, Record on Appeal). And the attorneys for the
petitioners-appellant had not denied said statement.
The petitioners-appellants having failed to show that the judgment
of the lower court of January 5, 1948, probating the will of testatrix
of October 19, was obtained through fraud, the lower court did not
commit any error in denying the appellant's petition for relief
under sec. 2, Rule 38 of the Rules of Court, and therefore it is not
necessary for us to discuss and pass upon the other propositions
of the appellant.
Where a will is duly probated after publication pursuant to 630 of
the Code of Civil Procedure, the order admitting the will is, in the
absence of fraud, effective against an persons. The fact that an
heir or other interested party lives so far away as to make it
impossible for such party to be present at the date appointed for
the, probate of the will does not render the order of probate void
for lack of due process. (In re Estate of Johnson, 39 Phil. 156)
Besides, even assuming without deciding, that under sec. 3 of
Rule 77, the court shall set aside a date for proving a will even
without petition when it is delivered to the, court having
jurisdiction, as contended by the appellants, the lower court was
right in not setting a date for proving the will of August 16, 1948,
because this will was expressly and absolutely revoked by the will
of October 19, 1948, executed by the same executrix or
deceased, which was filed for allowance on November 1, 1948,
with the same Court of First Instance of Bulacan. According to the
attorneys for the appellant, the will dated August 16, 1948, was
sent together with a writing called "Manifestation" by registered
mail on October 30, 1948, from Manila to the Court of First
Instance of Bulacan, by Attorney Mr. Tomas V. Barnes, and said
will must have been received by the Clerk of Said Court on or
after November 1, 1948, the date when the subsequent will of
October 19, was filed for probate. It stands to reason that if two
wills are presented for allowance but one of them revoked will
cannot be included in the probate of the latter subsequent will,
because it would be a waste of time to allow the revoked will if the
subsequent revoking will is allowed. The revoked will may be
probated and allowed only if the subsequent revoking will is
disallowed. (11. McAra vs .MacCay, L. R. 23 Ir., 138; Pepper vs.
Pepper, Ir. R. 5 Eq., 85; Matter of Palmer, 58 L.J. P.D. and Adm.,
44; Matter of Stephens, 22 L.T. Rep., N.S. 727.) [68 C.J. 886]
Besides, the appellants in the present case, who merely allege in
their petition for relief that they are "nephews and nieces and
therefore legal heirs of the deceased Damasa Crisostomo,"
without specifying the degree of relationship they had the latter,
do not pretend that it if the will October 19, 1949, be disallowed,
they will inherit the estate left by the testatrix. They contend that
said will should be probated jointly or together with the will of
August 16, 1948, and the latter be allowed instead of the former.
As in her will of October 19, 1949, as well in that of August 16,
1948, the testatrix is leaving all her properties as legacies to other
persons, the appellants have no interest in the probate of said
wills, and they can not appeal from the judgment which allowed
one of them instead of the other.
27
only P2,000.00. When Adela expressed surprise over the amount,
the administrator replied that he only wanted to help her get
started in business. On January 12, 1955, Adela was brought by
Villegas and Rizalina to the office of their lawyer, where she was
made to sign a document she could not read. On January 13,
1955, the lawyer asked Adela to sign another document, which he
said was to be presented in Court and explained the contents of
the document signed the day before. It was only then that Adela
came to know that said document was a deed of sale. 1 When
Adela protested, Villegas told her that the matter could be
discussed better in his house in Malabon. On arriving at Malabon,
Villegas informed Adela that the amount of P50,000.00 which
Rizalina was paying for her share in the inheritance, was probably
more than what she would get in the estate, because the estate is
not valuable and had plenty of debts. Villegas handed to Adela
P6,800.00 in cash and a check drawn, by Rizalina on the
Prudential Bank for P3,200.00. Although Adela did not want to
accept the money, Villegas refused to take them back. When she
was made to sign the deed of assignment, Adela did not know the
true value of the estate, which she now estimates to be no less
than P1,000.000.00. In the same manifestation, Adela stated that
a complaint for annulment of the Deed of Assignment was being
prepared; that she was tendering the full amount of P10,000.00 to
Villegas or Rizalina; that she was placing the above facts within
the knowledge of the Court so that no action be taken giving value
to the alleged deed of assignment and in order that she (Adela)
might be notified of each and all pleadings or orders connected
with the proceedings. The administrator Villegas and Rizalina filed
exceptions and/or objections to the Manifestation, denying the
allegations of fraud, undue influence and the like.
In a motion dated September 7, 1955, filed with the CFI of Pasay,
Adela asked the Court to transfer Special Proceedings No. 2100,
to Branch I (Pasig), alleging that the complaint for the nullity of the
Deed of Assignment filed with the Rizal CFI had been assigned to
said Branch I; and that the transfer would save time and effort on
the part of all concerned. The motion was strongly opposed by the
administrator who stated, among others
That in the final distribution of the estate to the heirs, the share
corresponding to the movant Adela Santos Gutierrez may be
ordered withheld by this Court (if due motion therefor shall have
been presented to this Court) until the validity of the deed of
assignment shall have been resolved by Branch I of the Court of
First Instance of Rizal.
On September 16, 1955, the motion to transfer was denied.
On February 9, 1956, Adela presented with the Probate Court, a
motion praying that the administrator and/or his attorneys be
required to furnish her all copies of pleadings filed or to be filed in
the intestate proceedings, it appearing that the administrator
presented pleadings in Court without serving her copies thereof.
An opposition was interposed by the administrator, who alleged
that the movant, although originally a party to the probate
proceeding, has voluntarily and expressly desisted from being so,
and that having assigned by sale, all her rights, interests and
participations in the estate, she has no longer any legal standing
in the case. On March 12, 1956, the Court (Judge Emilio
Rilloraza, presiding) promulgated the following order
. . ., the Court is of the opinion that the said motion should be, as
it is hereby, granted and the said administrator and/or his
attorneys are hereby directed to furnish Adela Santos Gutierrez,
through counsel, all copies of the pleadings filed and to be filed in
this case, except those mentioned in said motion within a
reasonable time upon notice hereof.
The Clerk of Court should see to it that before receiving for filing
by the administrator or the other legal heir, Rizalina Santos
Rivera, and/or their respective counsel, any pleadings, motion,
etc., that copies thereof have been furnished Adela Santos
Gutierrez through counsel.
A series of long pleadings were presented by the parties,
following a motion of reconsideration, containing arguments and
authorities sustaining their respective theories. On June 2, 1956,
28
Moreover, it cannot be successfully denied that Adela Santos
Gutierrez is an indispensable party to the proceedings in
question. Her interest in the estate is not inchoate, it was
established at the time of death of Irene Santos on November 11,
1954. While it is true that she executed a deed of assignment, it is
also a fact that she asked the same to be annulled, which action
is now pending before the Rizal CFI, Pasig Branch. Although
Adela had filed a manifestation dropping herself from the
proceedings and presenting therewith the supposed Deed of
Assignment, the record, nevertheless fails to show that action
thereon had been taken by the probate Court. Every act intended
to put an end to indivision among co-heirs and legatees or
devisees is deemed to be a partition, although it should purport to
be a sale, an exchange, a compromise, or any other transaction
(Art. 1082, NCC). No serious argument can be offered to deny the
co-heirship of appellee in the estate under probate. It appearing (if
We assume the due execution of the Deed of Assignment), that
the transaction is in the nature of extrajudicial partition, court
approval is imperative, and the heirs cannot just divest the court
of its jurisdiction over the estate and over their persons, by the
mere act of assignment and desistance. Thus, in the case of
Sandoval v. Santiago, G.R. No. L-1723, May 30, 1949, this Court
said: ". . . and the heirs of the deceased Marquez could not divest
the Court of First Instance of its already acquired jurisdiction by
the mere fact of dividing and distributing extrajudicially the estate
of the deceased among themselves". But even if the partition had
been judicially approved on the basis of the alleged deed of
assignment, an aggrieved heir does not lose her standing in the
probate court.
In our opinion, the court that approved the partition and the
agreement in ratification thereof may annul both whenever, as it is
here alleged, the approval was obtained by deceit or fraud, and
the petition must be filed in the courts of the intestate
proceedings, for it is generally admitted that probate courts are
authorized to vacate any decree or judgment procured by fraud,
not only while the proceedings in the course of which it was
issued are pending, but even, as in this case, within a reasonable
time thereafter. (Trillana v. Crisostomo, G.R. No. L-3378, Aug. 22,
1951; Espinosa v. Barrios. 70 Phil. 311).
We agree with appellee that the motion in question is not one of
intervention, but solely a plea to enforce a right and that is to
receive pleadings and orders related to the case. Evidently, the
use of the word "intervention" in the manifestation and pleadings
presented by Adela was resorted to for want of another
appropriate word. In effect, all she wanted to convey was that she
should participate or continue taking part in the case for being an
original party therein. It was her belief that in filing the
manifestation dropping herself from the proceedings (but which
she later informed the court to have been secured thru fraud), her
standing might have been affected. Intervention as contemplated
by the Rules is a proceeding in a suit or action by which a third
person is permitted by the court to make himself a party, either
joining plaintiff in claiming what is sought by the complaint, or
uniting with defendant in resisting the claims of plaintiff, or
demanding something adversely to both of them; the act or
proceeding by which a third person becomes a party in a suit
pending between others; the admission, by leave of court, of a
person not an original party to pending legal proceedings, which
such person becomes a party thereto for the protection of some
right or interest alleged by him to be affected by such proceedings
(Judge of Camarines Sur, et al. vs. David, et al., G.R. No. 45454,
April 12, 1939, cited in Francisco's Rules of Court, Vol. I, Part I, p.
639, emphasis supplied). The circumstances stated above do not
fit the status of Adela in the probate proceedings; she was not a
third person; she was an original party therein.
We see no prejudice to be suffered by the administrator and
Rizalina, if they are required to furnish copies of their pleadings to
appellee. On the contrary, doing so, will give appellee her day in
court and provide protection to the administrator himself.
IN VIEW OF THE FOREGOING, We find the Order appealed
29
the assigning heir does not lose his status as a person interested
in the estate, even after said assignment is approved by the court.
The situation in the Santos case involves an assignment between
co-heirs pendente lite, during the course of settlement
proceedings, properly and validly commenced. At the time of said
assignment, therefore, the settlement court had already acquired
jurisdiction over the properties of estate. As a result, any
assignment regarding the same had to be approved by said court.
And since the approval the court is not deemed final until the
estate is closed the assigning heir remains an interested person
in proceedings even after said approval, which can be vacated is
given.
In the present case, however, the assignment took place when no
settlement proceedings was pending. The properties subject
matter of the assignment were not under the jurisdiction of a
settlement court. Allowing that the assignment must be deemed a
partition as between the assignor and assignee, the same does
not need court approval to be effective as between the parties. An
extrajudicial partition is valid as between the participants even if
the requisites of Sec. 1, Rule 74 for extrajudicial partition are not
followed, since said requisites are for purposes of binding
creditors and non-participating heirs only (Hernandez v. Andal, 78
Phil. 196). Should it be contended that said partition was attended
with fraud, lesion or inadequacy of price, the remedy is to rescind
or to annul the same in an action for that purpose. And in the
meanwhile, assigning heir cannot initiate a settlement
proceedings, for until the deed of assignment is annulled or
rescinded, it is deemed valid and effective against him, so that he
is left without that "interest" in the estate required to petite for
settlement proceedings.
Anent appellant Miguel Duran, he sought in his petition below to
"join petitioner Cipriano Duran as co-petitioner in the latter's
petition . . . and incorporates herein by adoption all the allegations
made in said petition." (Record on Appeal, pp. 45-46). The same,
therefore, amounted to a petition to intervene in the settlement
proceedings. As aptly ruled by the court a quo, since there was
really no settlement proceedings in the first place, the petition to
intervene must be denied.
Finally, although Josefina Duran prayed to be appointed
administratrix, her doing so did not amount to ratification of the
petition for settlement under the ruling in Eusebio v. Valmores, 97
Phil. 163, since she did so merely by way of an alternative prayer,
should her motion to dismiss fail. And said motion to dismiss was
properly sustained.
Wherefore, the dismissal order appealed from is hereby affirmed,
with costs against appellants. So ordered.
Concepcion, C.J., Reyes, J.B.L., Dizon, Makalintal, Zaldivar,
Sanchez and Castro, JJ., concur.
30
administrator. The bond for the said special administratrix is
hereby fixed in the amount of P200,000.00. (Rollo, p. 40)
On June 8, 1987, the lower court issued another order, to wit:
Acting on the Urgent Ex-Parte Motion for Assistance" filed by
Petitioner-Special Administratrix Elaine de Guzman for
appointment of Deputy Sheriffs Honorio Santos and Jose B. Flora
together with some military men and/or policemen to assist her in
preserving the estate of Manolito de Guzman, the motion is
granted and the Deputy Sheriffs Honorio Santos and Jose B.
Flora are hereby appointed for that purpose, provided that the
subject matter of the motion for writ of possession pending before
this Court shall not be affected. (Rollo, p. 41)
Trouble ensued when the respondents tried to enforce the above
order. The petitioner resisted when Deputy Sheriffs Jose B. Flora
and Honorio Santos tried to take the subject vehicles on the
ground that they were his personal properties. According to the
petitioner, this resulted in a "near shoot-out between members of
the Makati Police, who were to maintain peace and order, and the
CAPCOM soldiers who were ostensibly aiding respondent sheriffs
and Elaine G. de Guzman" and that "the timely arrival of Mayor
Jejomar Binay of Makati defused the very volatile situation which
resulted in an agreement between the parties that the bulldozer,
sought to be taken, be temporarily placed in the custody of Mayor
Binay, while the parties seek clarification of the order from
respondent Judge Zosimo Angeles the next day, June 9, 1981 at
10:30 a.m."
In the conference held before the respondent court attended by
the counsels for both parties, the June 8, 1987 order was clarified
to the effect that the order "must be merely to take and preserve
assets admittedly belonging to the estate, but not properties, the
ownership of which is claimed by third persons."
The petitioner then filed a manifestation listing properties which
he claimed to be his own.
Thereafter, the instant petition was filed to annul the lower court's
orders dated June 5, 1987 and June 8, 1987.
In a resolution dated June 10, 1987, we issued a temporary
restraining order enjoining the respondent court from enforcing
the two questioned orders. In another resolution dated October
28, 1987, we gave due course to the petition.
The petitioner contends that the June 5, 1987 order is a patent
nullity, the respondent court not having acquired jurisdiction to
appoint a special administratrix because the petition for the
settlement of the estate of Manolito de Guzman was not yet set
for hearing and published for three consecutive weeks, as
mandated by the Rules of Court. The petitioner also stresses that
the appointment of a special administratrix constitutes an abuse
of discretion for having been made without giving petitioner and
other parties an opportunity to oppose said appointment.
Anent the June 8, 1987 order, the petitioner alleges that the
immediate grant of the motion praying for the court's assistance in
the preservation of the estate of the deceased, "without notice to
the petitioner Pedro de Guzman, and its immediate
implementation on the very same day by respondent Elaine G. de
Guzman with the assistance of respondents deputy sheriffs, at no
other place but at the home of the petitioner Pedro de Guzman,
are eloquent proofs that all the antecedent events were intended
solely to deprive petitioner de Guzman of his property without due
process of law." He also prays that the respondent Judge be
disqualified from further continuing the case.
As stated earlier, the pivotal issue in the instant petition hinges on
whether or not a probate court may appoint a special
administratrix and issue a writ of possession of alleged properties
of a decedent for the preservation of the estate in a petition for the
settlement of the intestate estate of the said deceased person
even before the probate court causes notice to be served upon all
interested parties pursuant to section 3, Rule 79 of the Revised
Rules of Court.
As early as March 18, 1937, in the case of Santos v. Castillo (64
Phil. 211) we ruled that before a court may acquire jurisdiction
over the case for the probate of a will and the administration of
31
creditor of the estate listed in the Petition (P850,240.80) could
have participated in the proceedings especially so, because the
respondent immediately filed a motion to have herself appointed
as administratrix. A special administrator has been defined as the
"representative of decedent appointed by the probate court to
care for and preserve his estate until an executor or general
administrator is appointed." (Jones v. Minnesota Transfer R. Co.
1965 ed., at 106 cited in Fule v. Court of Appeals, 74 SCRA 189).
The petitioner as creditor of the estate has a similar interest in the
preservation of the estate as the private respondent who happens
to be the widow of deceased Manolito de Guzman. Hence, the
necessity of notice as mandated by the Rules of Court. It is not
clear from the records exactly what emergency would have
ensued if the appointment of an administrator was deferred at
least until the most interested parties were given notice of the
proposed action. No unavoidable delay in the appointment of a
regular administrator is apparent from the records.
As argued by the petitioner:
The position of special administrator, by the very nature of the
powers granted thereby, is one of trust and confidence. It is a
fiduciary position and, therefore, requires a comprehensive
determination of the suitability of the applicant to such position.
Hence, under Philippine jurisprudence, it has been settled that the
same fundamental and legal principles governing the choice of a
regular administrator should be taken in choosing the special
administrator (Francisco, Vol. VB, page 46 citing the cases of
Ozaeta v. Pecson, Ibid. and Roxas v. Pecson, Ibid.)
In order to fully and correctly ascertain the suitability of the
applicant to the trust, a hearing is obviously necessary wherein
the applicant can prove his qualifications and at the same time
affording oppositors, given notice of such hearing and application,
the opportunity to oppose or contest such application.
The requirement of a hearing and the notification to all the known
heirs and other interested parties as to the date thereof is
essential to the validity of the proceeding for the appointment of
an administrator "in order that no person may be deprived of his
right or property without due process of law" (Eusebio v.
Valmores, 97 Phil. 163). Moreover, a hearing is necessary in
order to fully determine the suitability of the applicant to the trust,
by giving him the opportunity to prove his qualifications and
affording oppositors, if any, to contest the said application.
(Matute v. Court of Appeals, 26 SCRA 770; emphasis supplied).
Since the position of special administrator is a very sensitive one
which requires trust and confidence, it is essential that the
suitability of the applicant be ascertained in a hearing with due
notice to all oppositors who may object precisely to the applicant's
suitability to the trust. (Rollo, pp. 103-104)
If emergency situations threatening the dissipation of the assets
of an estate justify a court's immediately taking some kind of
temporary action even without the required notice, no such
emergency is shown in this case. The need for the proper notice
even for the appointment of a special administrator is apparent
from the circumstances of this case.
The respondent Judge himself explains that the order for the
preservation of the estate was limited to properties not claimed by
third parties. If certain properties are already in the possession of
the applicant for special administratrix and are not claimed by
other persons, we see no need to hurry up and take special action
to preserve those properties. As it is, the sheriffs took advantage
of the questioned order to seize by force, properties found in the
residence of the petitioner which he vehemently claims are owned
by him and not by the estate of the deceased person.
The petitioner also asks that the respondent Judge be disqualified
from continuing with the proceedings of the case on the ground
that he is partial to the private respondent.
In view of the fact that the respondent Judge in his "Explanation"
requests that he be inhibited from further active on the case, this
issue has now become academic. We accept Judge Angeles"
voluntary inhibition in line with our ruling in Pimentel v. Salanga
(21 SCRA 160). As we stated in Query of Executive Judge
32
appointment of a special administrator is sought to be
reviewed.
On May 2, 1973, Virginia G. Fule filed with the Court of First
Instance of Laguna, at Calamba, presided over by Judge
Severo A. Malvar, a petition for letters of administration,
docketed as Sp. Proc. No. 27-C, alleging, inter alia, "that on
April 26, 1973, Amado G. Garcia, a property owner of
Calamba, Laguna, died intestate in the City of Manila, leaving
real estate and personal properties in Calamba, Laguna, and
in other places, within the jurisdiction of the Honorable
Court." At the same time, she moved
ex parte for her appointment as special administratrix over
the estate. On even date, May 2, 1973, Judge Malvar granted
the motion.
A motion for reconsideration was filed by Preciosa B. Garcia
on May 8, 1973, contending that the order appointing Virginia
G. Fule as special administratrix was issued without
jurisdiction, since no notice of the petition for letters of
administration has been served upon all persons interested
in the estate; there has been no delay or cause for delay in
the proceedings for the appointment of a regular
administrator as the surviving spouse of Amado G. Garcia,
she should be preferred in the appointment of a special
administratrix; and, Virginia G. Fule is a debtor of the estate
of Amado G. Garcia. Preciosa B. Garcia, therefore, prayed
that she be appointed special administratrix of the estate, in
lieu of Virginia G. Fule, and as regular administratrix after
due hearing.
While this reconsideration motion was pending resolution
before the Court, Preciosa B. Garcia filed on May 29, 1973 a
motion to remove Virginia G. Fule as special administratrix
alleging, besides the jurisdictional ground raised in the
motion for reconsideration of May 8, 1973 that her
appointment was obtained through erroneous, misleading
and/or incomplete misrepresentations; that Virginia G. Fule
has adverse interest against the estate; and that she has
shown herself unsuitable as administratrix and as officer of
the court.
In the meantime, the notice of hearing of the petition for
letters of administration filed by Virginia G. Fule with the
Court of First Instance of Calamba, Laguna, was published
on May 17, 24, and 31, 1973, in the Bayanihan, a weekly
publication of general circulation in Southern Luzon.
On June 6, 1973, Preciosa B. Garcia received a
"Supplemental Petition for the Appointment of Regular
Administrator ' filed by Virginia G. Fule. This supplemental
petition modified the original petition in four aspects: (1) the
allegation that during the lifetime of the deceased Amado G.
Garcia, he was elected as Constitutional Delegate for the
First District of Laguna and his last place of residence was at
Calamba, Laguna; (2) the deletion of the names of Preciosa
B. Garcia and Agustina Garcia as legal heirs of Amado G.
Garcia; (3) the allegation that Carolina Carpio, who was
simply listed as heir in the original petition, is the surviving
spouse of Amado G. Garcia and that she has expressly
renounced her preferential right to the administration of the
estate in favor of Virginia G. Fule; and (4) that Virginia G. Fule
be appointed as the regular administratrix. The admission of
this supplemental petition was opposed by Preciosa B.
Garcia for the reason, among others, that it attempts to
confer jurisdiction on the Court of First Instance of Laguna,
of which the court was not possessed at the beginning
because the original petition was deficient.
On July 19, 1973, Preciosa B. Garcia filed an opposition to
the original and supplemental petitions for letters of
administration, raising the issues of jurisdiction, venue, lack
of interest of Virginia G. Fule in the estate of Amado G.
Garcia, and disqualification of Virginia G Fule as special
administratrix.
An omnibus motion was filed by Virginia G. Fule on August
33
limiting the authority of the special administratrix to the
making of an inventory. Preciosa B. Garcia also asked for the
resolution of her motion to dismiss the petitions for lack of
cause of action, and also that filed in behalf of Agustina B.
Garcia. Resolution of her motions to substitute and remove
the special administratrix was likewise prayed for.
On December 19, 1973, Judge Malvar issued two separate
orders, the first, denying Preciosa B. Garcia's motions to
substitute and remove the special administratrix, and the
second, holding that the power allowed the special
administratrix enables her to conduct and submit an
inventory of the assets of the estate.
On January 7, 1974, Preciosa B. Garcia moved for
reconsideration of the foregoing orders of November 28,
1973 and December 19, 1973, insofar as they sustained or
failed to rule on the issues raised by her: (a) legal standing
(cause of action) of Virginia G. Fule; (b) venue; (c)
jurisdiction; (d) appointment, qualification and removal of
special administratrix; and (e) delivery to the special
administratrix of checks and papers and effects in the office
of the Calamba Sugar Planters Cooperative Marketing
Association, Inc.
On March 27, 1973, Judge Malvar issued the first questioned
order
denying
Preciosa B.
Garcia's
motion
for
reconsideration of January 7, 1974. On July 19, 1974, Judge
Malvar issued the other three questioned orders: one,
directing Ramon Mercado, of the Calamba Sugar Planters
Cooperative Marketing Association, Inc., to furnish Virginia
G. Fule, as special administratrix, copy of the statement of
accounts and final liquidation of sugar pool, as well as to
deliver to her the corresponding amount due the estate;
another, directing Preciosa B. Garcia to deliver to Virginia G.
Fule two motor vehicles presumably belonging to the estate;
and another, directing Ramon Mercado to deliver to the court
all certificates of title in his possession in the name of
Preciosa B. Garcia, whether qualified with the word "single"
or "married to Amado Garcia."
During the hearing of the various incidents of this case (Sp.
Proc. 27-C) before Judge Malvar, 2 Virginia G. Fule presented
the death certificate of Amado G. Garcia showing that his
residence at the time of his death was Quezon City. On her
part, Preciosa B. Garcia presented the residence certificate
of the decedent for 1973 showing that three months before
his death his residence was in Quezon City. Virginia G. Fule
also testified that Amado G. Garcia was residing in Calamba,
Laguna at the time of his death, and that he was a delegate to
the 1971 Constitutional Convention for the first district of
Laguna.
On July 26, 1974, Preciosa B. Garcia and Agustina B. Garcia
commenced a special action for certiorari and/or prohibition
and preliminary injunction before the Court of Appeals,
docketed as CA-G.R. No. 03221-SP. primarily to annul the
proceedings before Judge Malvar in Sp. Proc. No. 27-C of the
Court of First Instance of Laguna, or, in the alternative, to
vacate the questioned four orders of that court, viz., one
dated March 27, 1974, denying their motion for
reconsideration of the order denying their motion to dismiss
the criminal and supplemental petitions on the issue, among
others, of jurisdiction, and the three others, all dated July 19,
1974, directing the delivery of certain properties to the
special administratrix, Virginia G. Fule, and to the court.
On January 30, 1975, the Court of Appeals rendered
judgment annulling the proceedings before Judge Severo A.
Malvar in Sp. Proc. 27-C of the Court of First Instance of
Calamba, Laguna, for lack of jurisdiction.
Denied of their motion for reconsideration on March 31, 1975,
Virginia G. Fule forthwith elevated the matter to Us on appeal
by certiorari. The case was docketed as G.R. No. L-40502.
However, even before Virginia G. Fule could receive the
decision of the Court of Appeals, Preciosa B. Garcia had
34
allege all the necessary facts, such as death, the name and
last residence of the decedent, the existence, and situs if
need be, of assets, intestacy, where this is relied upon, and
the right of the person who seeks administration, as next of
kin, creditor, or otherwise, to be appointed. The fact of death
of the intestate and his last residence within the country are
foundation facts upon which all subsequent proceedings in
the administration of the estate rest, and that if the intestate
was not an inhabitant of the state at the time of his death,
and left no assets in the state, no jurisdiction is conferred on
the court to grant letters of administration. 3
The aforequoted Section 1, Rule 73 (formerly Rule 75,
Section 1), specifically the clause "so far as it depends on
the place of residence of the decedent, or of the location of
the estate," is in reality a matter of venue, as the caption of
the Rule indicates: "Settlement of Estate of Deceased
Persons. Venue and Processes. 4 It could not have been
intended to define the jurisdiction over the subject matter,
because such legal provision is contained in a law of
procedure dealing merely with procedural matters.
Procedure is one thing; jurisdiction over the subject matter is
another. The power or authority of the court over the subject
matter "existed and was fixed before procedure in a given
cause began." That power or authority is not altered or
changed by procedure, which simply directs the manner in
which the power or authority shall be fully and justly
exercised. There are cases though that if the power is not
exercised conformably with the provisions of the procedural
law, purely, the court attempting to exercise it loses the
power to exercise it legally. However, this does not amount
to a loss of jurisdiction over the subject matter. Rather, it
means that the court may thereby lose jurisdiction over the
person or that the judgment may thereby be rendered
defective for lack of something essential to sustain it. The
appearance of this provision in the procedural law at once
raises a strong presumption that it has nothing to do with the
jurisdiction of the court over the subject matter. In plain
words, it is just a matter of method, of convenience to the
parties. 5
The Judiciary Act of 1948, as amended, confers upon Courts
of First Instance jurisdiction over all probate cases
independently of the place of residence of the deceased.
Because of the existence of numerous Courts of First
Instance in the country, the Rules of Court, however,
purposedly fixes the venue or the place where each case
shall be brought. A fortiori, the place of residence of the
deceased in settlement of estates, probate of will, and
issuance of letters of administration does not constitute an
element of jurisdiction over the subject matter. It is merely
constitutive of venue. And it is upon this reason that the
Revised Rules of Court properly considers the province
where the estate of a deceased person shall be settled as
"venue." 6
2. But, the far-ranging question is this: What does the term
"resides" mean? Does it refer to the actual residence or
domicile of the decedent at the time of his death? We lay
down the doctrinal rule that the term "resides" connotes ex
vi termini "actual residence" as distinguished from "legal
residence or domicile." This term "resides," like, the terms
"residing" and "residence," is elastic and should be
interpreted in the light of the object or purpose of the statute
or rule in which it is employed. 7 In the application of venue
statutes and rules Section 1, Rule 73 of the Revised Rules
of Court is of such nature residence rather than domicile
is the significant factor. Even where the statute uses the
word "domicile" still it is construed as meaning residence
and not domicile in the technical sense. Some cases make a
distinction between the terms "residence" and "domicile" but
as generally used in statutes fixing venue, the terms are
synonymous, and convey the same meaning as the term
35
4. Preciosa B. Garcia's challenge to Virginia G. Fule's
appointment as special administratrix is another issue of
perplexity. Preciosa B. Garcia claims preference to the
appointment as surviving spouse. Section 1 of Rule 80
provides that "(w)hen there is delay in granting letters
testamentary or of administration by any cause including an
appeal from the allowance or disallowance of a will, the court
may appoint a special administrator to take possession and
charge of the estate of the deceased until the questions
causing the delay are decided and executors or
administrators appointed. 13 Formerly, the appointment of a
special administrator was only proper when the allowance or
disallowance of a will is under appeal. The new Rules,
however, broadened the basis for appointment and such
appointment is now allowed when there is delay in granting
letters testamentary or administration by any cause e.g.,
parties cannot agree among themselves. 14 Nevertheless, the
discretion to appoint a special administrator or not lies in the
probate court. 15 That, however, is no authority for the judge
to become partial, or to make his personal likes and dislikes
prevail over, or his passions to rule, his judgment. Exercise
of that discretion must be based on reason, equity, justice
and legal principle. There is no reason why the same
fundamental and legal principles governing the choice of a
regular administrator should not be taken into account in the
appointment of a special administrator. 16 Nothing is wrong
for the judge to consider the order of preference in the
appointment of a regular administrator in appointing a
special administrator. After all, the consideration that
overrides all others in this respect is the beneficial interest of
the appointee in the estate of the decedent. 17 Under the law,
the widow would have the right of succession over a portion
of the exclusive property of the decedent, besides her share
in the conjugal partnership. For such reason, she would have
as such, if not more, interest in administering the entire
estate correctly than any other next of kin. The good or bad
administration of a property may affect rather the fruits than
the naked ownership of a property. 18
Virginia G. Fule, however, disputes the status of Preciosa B.
Garcia as the widow of the late Amado G. Garcia. With equal
force, Preciosa B. Garcia maintains that Virginia G. Fule has
no relation whatsoever with Amado G. Garcia, or that, she is
a mere illegitimate sister of the latter, incapable of any
successional rights. 19 On this point, We rule that Preciosa B.
Garcia is prima facie entitled to the appointment of special
administratrix. It needs be emphasized that in the issuance of
such appointment, which is but temporary and subsists only
until a regular administrator is appointed, 20 the appointing
court does not determine who are entitled to share in the
estate of the decedent but who is entitled to the
administration. The issue of heirship is one to be determined
in the decree of distribution, and the findings of the court on
the relationship of the parties in the administration as to be
the basis of distribution. 21 The preference of Preciosa B.
Garcia is with sufficient reason. In a Donation Inter Vivos
executed by the deceased Amado G. Garcia on January 8,
1973 in favor of Agustina B. Garcia, he indicated therein that
he is married to Preciosa B. Garcia. 22 In his certificate of
candidacy for the office of Delegate to the Constitutional
Convention for the First District of Laguna filed on
September 1, 1970, he wrote therein the name of Preciosa B.
Banaticla as his spouse. 23 Faced with these documents and
the presumption that a man and a woman deporting
themselves as husband and wife have entered into a lawful
contract of marriage, Preciosa B. Garcia can be reasonably
believed to be the surviving spouse of the late Amado G.
Garcia. Semper praesumitur pro matrimonio. 24
5. Under these circumstances and the doctrine laid down in
Cuenco vs. Court of Appeals, 25 this Court under its
supervisory authority over all inferior courts may properly
36
sign their respective names in the presence of the testator, from
which the petitioner has appealed, and the appeal is now
pending.
On December 29, 1947, the respondents Maria and Pedro Roxas
renewed their petition for the appointment of Maria Roxas as
special administratrix or special co-administratrix, and on May 5,
1948, the respondent judge rendered his resolution appointing the
petitioner Natividad I. Vda. de Roxas as special administratrix
only of all the conjugal properties of the deceased, and Maria
Roxas as special administratrix of all capital or properties
belonging exclusively to the deceased Pablo M. Roxas.
The present petition for certiorari has been filed with this Court
against the last order or resolution of the Court of First Instance of
Bulacan based on the ground that the respondent judge acted in
excess of the court's jurisdiction in appointing two special coadministratices of the estate of the deceased Pablo Roxas, one of
the capital or properties belonging exclusively to the deceased,
and another of his conjugal properties with his wife (now widow),
the petitioner.
It is well settled that the statutory provisions as to the prior or
preferred right of certain persons to the appointment of
administrator under section 1, Rule 81, as well as the statutory
provisions as to causes for removal of an executor or
administrator under section 653 of Act No. 190, now section 2,
Rule 83, do not apply to the selection or removal of special
administrator. (21 Am. Jur., 833; De Gala vs. Gonzales and Ona,
53 Phil., 104, 106.) As the law does not say who shall be
appointed as special administrator and the qualifications the
appointee must have, the judge or court has discretion in the
selection of the person to be appointed, discretion which must be
sound, that is, not whimsical or contrary to reason, justice or
equity.
There is nothing wrong in that the respondent judge, in exercising
his discretion and appointing the petitioner as special
administratrix, had taken into consideration the beneficial interest
of the petitioner in the estate of the decedent and her being
designated in the will as executrix thereof. But the respondent's
subsequent act of appointing her as special administratrix only of
the conjugal or community property, and Maria Roxas as special
administratrix of the capital or exclusive property of the decedent,
does not seem to be in conformity with logic or reason. The
petitioner has or claims to have the same beneficial interest after
the decision of the court disapproving the will, which is now
pending on appeal, as she had prior to it, because the decision is
not yet final and may be reversed by the appellate court.
Besides, even if the will is not probated, the widow in the present
case would have, under the law, the right of usufruct over one-half
of the exclusive property of the decedent, besides her share in the
conjugal partnership. The beneficial interest required as a
qualification for appointment as administrator of the estate of a
decedent is the interest in the whole estate and not only in some
part thereof. The petitioner being entitled to one-half in usufruct of
all the exclusive properties of the decedent, she would have as
much if not more interest in administering the entire estate
correctly, in order to reap the benefit of a wise, speedy,
economical administration of the state, and not suffer the
consequences of the waste, improvidence or mismanagement
thereof. The good or bad administration of the property may affect
rather the fruits than the naked ownership of a property.
However, for the decision of the question involved in this
proceeding it is not necessary for us to determine whether or not
the respondent judge has acted with grave abuse of discretion in
rendering the resolution complained of for the reasons just stated,
in view of our conclusion that the respondent judge acted in
excess of the court's jurisdiction in appointing two separate
special administratices of the estate of the decedent: one of the
conjugal or community property and another of the capital or
exclusive property of the deceased Pablo M. Roxas.
According to section 2, Rule 75, taken from section 685 of the
former Code of Civil Procedure, Act No. 190, as amended, "when
37
38
GO TIANUY, defendants-appellants.
Fisher, DeWitt, Perkins & Brady for appellants. Del Rosario &
Del Rosario and Palma, Leuterio & Yamzon for appellee.
MALCOLM, J.:
In this action which arose out of the proceedings relating to the
estate of the deceased Go Bung Kiu, the plaintiff, Maximina Tan,
the present administratrix of the estate, seeks to recover from the
defendant, Go Chiong Lee, the administrator whom the plaintiff
succeeded, and the defendants Tio Liok, Ang Changco, and
Manuel Go Tianuy, the bondsmen of Go Chiong Lee, on four
causes of action, amounts totalling P54,700.39. On the trial
court's awarding the plaintiff the sum of P42,849.08, but limiting
the liability of the sureties to P30,000, the defendants appealed.
UNDISPUTED FACTS
The undisputed facts in this case may properly serve as its
background.
During the lifetime of the deceased Go Bung Kiu, Go Chiong Lee
was his encargado. Go Bung Kiu died in China on April 15, 1920.
On April 26, 1920, Go Chiong Lee was appointed special
administrator of the estate, with Tio Liok, Ang Changco, and
Manuel Go Tianuy as sureties on his bond in the sum of P30,000.
On May 25, 1920, Go Chiong Lee's status with reference to the
estate was changed to that of administrator. On the same date,
Go Chiong Lee filed a motion in which he prayed that he be
allowed to operate two stores belonging to the estate, one in the
City of Cebu and the other in the municipality of Toledo, Cebu.
The court granted the administrator the authority to which he
asked, but on the original copy of the order, the judge added in
ink the following words: "Se exige como condicion de continuar
dicho poder condedido al administrador su informe por escrito
que debe presentarse el primero de julio y de cada mes
siguiente." Another bond also in the amount of P30,000 and with
the same sureties was filed by the administrator, and letters of
administration were issued in his favor. Go Chiong Lee continued
to discharge his duties administrator until he was relieved by
Maximina Tan on October 28, 1921. During this period, the
administrator filed one report covering the period from May 26,
1920, to September 30, 1920, another report covering the period
from October 1, 1920, to July 31, 1921, and still a third and final
report.
The committee on claims rendered its report on June 2, 1921,
admitting as proved, claims amounting to P69,029.91. One month
later, the court issued an order of the following tenor:
The administrator is hereby ordered immediately to pay out of the
funds of the estate of the deceased Go Bung Kiu, under
administration, to each and everyone of the persons mentioned in
the report of the committee on claims, attached to the record at
pages 86 and 87, the whole amount appearing therein to have
been allowed by said committee without any preference either as
to the amount, or as to the time of payment between the claims
allowed.
Responding to the report of the committee on claims and the
order of the court, the administrator informed the court on July 19,
1921, that he had paid the creditors of the estate P16,700.39. He
explained how the payments were made, in the following words:
The administrator desires to state that the payments above
specified were made slowly, as the funds in his possession
permitted them and as the creditors came to make collection,
without preference of any kind. These last weeks, he has not
been able to make any payment; and this was due to the fact that
the debtors of the estate, who are many and will be able to pay
when the market shall improve, have not made upon them by the
administrator, and also to the fact that two establishments in Cebu
and Toledo, especially the latter, hardly make any sales, the
administrator having been compelled to close that in Toledo and
to economize in the expenses of the Cebu to prevent losses.
As further undisputed facts there should be appended to the
foregoing narration of events certain figures having to do with the
financial situation of the estate.
The inventory of the estate made by the administrator showed the
Errors ass
appellants
I, II, III, IV,
II
8,000.00
6,375.00
III
20,000.00
18,372.19
I, II, III IV a
IV
16,700.39
16,700.39
Totals
54,700.39
42,849.08
DISPUTED FACTS
Coming now to the disputed points, we resolve them in order.
First and third causes of action, in relation with errors I, II, III, IV,
and V. At this point, it is well to recall that presumably the
estate lost over P19,000 during the time when it was administered
by Go Chiong Lee, and that on the first and third causes of action
the trial judge found with the plaintiff in approximately an amount
which covered the losses. The basis for this finding was, first, the
lack of authority on the part of Go Chiong Lee as administrator to
run the two stores belonging to the estate of the deceased, and
second, the failure of Go Chiong Lee to render the monthly
reports made a condition of his appointment as administrator.
The permission to operate the stores was granted to Go Chiong
Lee on the same date when he was relieved as special
administrator and appointed "administrador definitivo" of the
estate. He proceeded to act under such authority for over a year
without being challenged by anyone. It would now be
preposterous to suppose that the power to run the stores actually
granted by the trial judge continued merely for an infinitesimal
moment of time on May 25, 1920, between the precise moment
when Go Chiong Lee acted under it as special administrator, and
the succeeding moment when he became the administrator. The
only reasonable deduction is that the powers of the special
administrator having ceased, and that at the same time that they
ceased permission was given to operate the stores, this authority
was intended for the administrator, or if intended for the special
administrator, was transmitted to the general administrator as
soon as he was appointed.
That the attorney of the defendant Go Chiong Lee had knowledge
of the addition to the order of the court naming Go Chiong Lee
administrator, by which the latter was bound to render written
monthly reports of his administration, is established, but that
subsequently the court tacitly modified its order, is likewise
disclosed by the record. The administrator was repeatedly
enjoined to submit accounts without specifying monthly accounts.
On three occasions the administrator rendered his accounts
without protest from any source.
That monthly reports would have possessed any particular virtue
over the reports actually submitted, to place the court on its guard
and thus to protect the estate from losses, is hardly plausible. On
the contrary, that the losses sustained by the estate resulted from
the risk necessarily attending the operation of the two stores, is a
much more reasonable assumption. At least the only testimony
X, XI, and
--------------
39
refuting that of the former administrator comes from one Vidal
Reynes, a tailor by profession, and is not at all impressive.
The standard of responsibility of the administrator is best
measured as in essence the responsibility of a bailee. Like any
bailee, he must pursue his discretion honestly and in good faith,
or he will become personally liable, to those who are interested in
the estate, for waste, conversion, or embezzlement. But where an
administrator, entrusted with the carrying on of an estate, acts in
good faith and in accordance with the usual rules and methods
obtaining in such business, he will not be held liable for losses
incurred. (Schouler on Wills, Executors and Administrators,
Chapter III; Allen and Hill vs. Shanks [891], 90 Tenn., 359.)
We find that the personal responsibility of the former administrator
and the sureties on his bond for losses incurred by the estate
during his administration, has not been proved.
Second cause of action, in relation with errors VI, VII, VIII, and IX.
On this cause of action, the plaintiff sought to recover the value
of 850 sacks of corn which Go Chiong Lee, it is said, failed to
inventory. Related to the point, are legal provisions providing that
the administrator who has qualified shall, within three months
after his appointment, return to the court a true inventory of the
real estate and of the goods, chattels, rights, and credits of the
deceased, which come into his possession or knowledge, and
that the administrator shall be chargeable in his account with the
goods, chattels, rights, and credits of the deceased, which come
into his possession. (Code of Civil Procedure, secs. 661, 662,
668, 673.) The administrator is accountable on his bond along
with the sureties for the performance of these legal obligations.
The issue is squarely one of fact, and as is customary in such
cases, we follow the findings of the trial court if proof to
substantiate such findings appears in the record. Here, such proof
exists, which means that the judgment appealed from must be
affirmed in this respect.
Fourth cause of action, in relation with errors X, XI, and XII.
The law provides how the debts of the estate shall be paid, and
how subsequent to the return of the report of the committee on
claims, the court shall order the payment of the debts and the
distribution of the assets. (Code of Civil Procedure, Chapter
XXXVIII, especially sec. 739.) The committee on claims did in this
case make such a report, showing the debts to come to
P69,099.91. The court did decree payment of the debts in the
order which is hereinbefore quoted. And the defendant did
attempt to comply with the order as appears from his report
likewise hereinbefore quoted in part. The anomaly, however, is
that, while some of the creditors have been paid entirely and other
partially, some of them received absolutely nothing on account of
the hit and miss method followed by the administrator.
The general rule is that a personal representative will be
protected in the payment of a claim which has been duly allowed
or ordered paid by the court, although it should not have been
paid in full, unless it is made to appear that such allowance of the
claim, or order for the payment thereof, was obtained through his
collusion or bad faith. (24 C. J., 452; Hancock vs. Chapman
[1916], 170 Ky., 99; Thomson vs. Taylor [1877], 71 N. Y., 217.)
Keeping the conceded facts and the legal principle in mind, we
have read many times the order of the trial court relating to the
distribution of the assets among the creditors and are still left with
the impression that the administrator, although unwisely,
attempted to follow the order to the best of his ability. Moreover, it
is not at all certain but that the estate will finally show enough on
the profit side of the ledger either to pay all of the creditors to the
full extent of their claims, or to give to most of the creditors who
have not been paid a proportion similar to that of the creditors
who have been paid. In these same proceedings, the
administratrix on her own motion, or the creditors at their initiative,
may recover the excess imprudently paid out to certain creditors.
(2 Schouler on Wills, Executors, and Administrators, pp. 1511,
1512.)
For all the foregoing, the judgment is modified to the extent that
the plaintiff shall only have and recover from the defendants
jointly and severally the amount of P6,375, with legal interest from
the date when the complaint was presented. Without costs. So
ordered.
Johnson, Street, Avancea, Villamor, Ostrand and Romualdez,
JJ., concur.
FIRST DIVISION
[G.R. No. 13910. September 17, 1919. ]
SOCIEDAD DE
LIZARRAGA HERMANOS,
PlaintiffsAppellants, v. FELICISIMA ABADA ET AL., DefendantsAppellants.
Charles C. Cohn for plaintiff and appellant
Crossfield & OBrien for defendants and appellants.
SYLLABUS
1. EXECUTORS AND ADMINISTRATORS; EXPENSES. The
expenses of administration should be those necessary for the
management of the property, for protecting it against destruction
or deterioration, and possibly for the production of fruits; but the
sum expended by an administrator of an extensive administration
of the estates of the decedent can not be considered "expenses
of administration."cralaw virtua1aw library
2. MORTGAGES. That the state grants no power to an
administrator to borrow money upon a mortgage of the real estate
of the decedent is not controverted. Indeed, such an act would be
contrary to the policy and purposes of the administration which
aims to close up, and not to continue an estate.
3. ID.; APPROVAL BY THE COURT. Although the mortgage
was one made by the administrator and approved by the Court of
First Instance, still this approval can not render valid the void acts
of an administrator.
DECISION
MOIR, J. :
40
claims against the estate were duly appointed, and plaintiffs
presented their claim which was allowed by the commissioners in
the sum of P12,783.74. The commissioners report was dated in
February, 1909.
The administratrix leased the hacienda [farm] known as
"Coronacion" to Hilario Zayco for a term of years, but afterwards
she married Vicente Alvarez, one of the defendants, and the
lease was transferred to Alvarez by Zayco, October 2, 1908.
On the 11th of April, 1913, nearly seven years after the death of
Caponong, the plaintiffs herein filed a suit in the Court of First
Instance of Occidental Negros against Felicisima Abada
personally and as administratrix of the estate of Francisco
Caponong, alleging that Francisco Caponong owed plaintiffs
P12,783.74, and that Felicisima Abada in her own name and as
administratrix, had been receiving from the plaintiffs money and
effects from 1908 to 1912 which money and effects were used by
the defendant in "the expense of cultivation and the exploitation of
the Hacienda "Coronacion," and that defendant had delivered to
plaintiffs the sugar produced until the last crop which she refused
to deliver to them. And that due to "los contratiempos agricolas y
a la poca produccion de la hacienda [drought and poor crops of
the farm] , and after deducting for the sugar delivered, the
account of the defendant showed a balance in favor of plaintiffs
on the 27th of August, 1912, of P62,437.15; that of this amount
they were informed the defendant recognized as due from the
estate only "about P14,000" which however had not been paid;
that it had been agreed by Francisco Caponong that the
"amounts" taken should draw interest at the rate of 12 per cent
from the date of each, and that in case it was necessary to bring
suit P1,500 would be paid by defendant to plaintiffs for their
expenses and attorneys fees, and they asked for judgment for
P62,437.15 with interest at 12 per cent and P1,500 for attorney s
fee.
The court granted the attachment order the 24th of July, 1916,
and the provincial sheriff attached one parcel of land, the growing
crops, certain products of the soil, and various animals.
The defendants answer in that case (No. 969, Neg. Occi.) admits
she owed P8,555.78 as administratrix, and alleges that the
balance was due by her personally.
The receiver took charge of the property and the defendants were
ousted from the house they had been occupying on the premises.
The defendants, Felicisima Abada, administratrix, and Januario
Granada, the guardian, filed an amended answer in which they
allege their representative capacity; that the claim of the plaintiffs
against the intestate proceedings of Francisco Caponong had
been allowed in the sum of P12,783.74 by the commissioners;
that the property belonged to the children of the deceased; that
the only interest of Felicisima Abada personally was her
usufructuary interest in one-sixth of the property; that all the
property was in custodia legis, and could not lawfully be attached;
that the administratrix had not contracted any other obligation,
and that, if any existed, it was the personal debt of her present
husband, Vicente Alvarez; that Exhibits A and B, (the compromise
agreement and the mortgage executed in conformity therewith)
made a part of the complaint, were obtained through fraud and
false representation; that the approval of the court was obtained
through fraud and deceit, and was illegal and of no value; that
defendants have never attempted to sell or conceal their property,
41
and prayed the court to declare Exhibits A and B null and void;
and that the attachment was malicious and illegal, and they
presented a counterclaim based on the wrongful issuance, on
false affidavits of the attachment, laying their damages in the sum
of P89,960 for which they asked judgment. And a second
counterclaim was presented based on the unwarranted
appointment of a receiver for property already in custody of the
court, through the administratrix and they alleged their damages
in this count in the sum of P28,120.
The Honorable Norberto Romualdez, judge, in his decision largely
sustained defendants claim, and declared that plaintiffs should
pay as damages
"For improperly causing the appointment of a
receiver P 500.00
"For the attachment of carabaos, etc. 500.00
"For damages to the sugar because of the
attachment and the appointment of a receiver 4,462.50
"For damages to land by reason of being left to
grow up in bushes 5,000.00
"18. The court erred in absolving from the complaint herein the
defendant Januario Granada as guardian of the minors, Juan
Buenaventura, Jose, Nicanor and Carlos Caponong y
Abada."cralaw virtua1aw library
As to the first error. Exhibit A was the compromise agreement
made in action No. 969, Lizarraga Hermanos against Felicisima
Abada personally and as administratrix, in which the guardian of
the minor children intervened, as defendant, by permission of the
court. Exhibit B was the mortgage given to secure the amount
agreed upon in that settlement.
42
the trial, plus interest. The plaintiffs, after their claim had been
presented and allowed by the commissioners, made advances to
the administratrix till their claim was more than P68,000.
It is urged that the major part of this debt of P68,000 is
administration expenses, and as such is chargeable against the
assets of the estate. No reason is given why the expense of
administration should be so great, and the evidence fails to
sustain this position.
The administration expense would be the necessary expenses of
handling the property, of protecting it against destruction or
deterioration, and possibly producing a crop, but if plaintiffs,
holding a claim originally for less than P13,000 against the estate,
let the administratrix have money and effects till their claim grow
to P68,000 they can not be permitted to charge this amount as
expense of administration. They might be allowed to charge it
against the current revenue from the hacienda or the net
proceeds of the "exploitation of the hacienda" for which it was
obtained and used, as plaintiffs allege, but it cannot relate back to
the presenting of their claim to the commissioners, and be a
charge against the inheritance of the heirs, or even a claim to
prorate with other creditors claims allowed by the commissioners.
By expense of administration we understand to be the reasonable
and necessary expense of caring for the property and managing it
till the debts are paid, as provided by law, and of dividing it, if
necessary, so as to partition it and deliver to the heirs.
The court could not approve a settlement saddling upon the
estate debts it never owed, and if it did, its approval would be a
nullity.
of
Civil
Procedure
The contract was clearly a dead letter, and the approval of the
court could not breathe the breath of life into it.
That the mortgage given at the same time and as a result of the
agreement was without legal warrant is equally clear. No
mortgage can be placed by an administrator on the estate of a
descendant, unless it is specifically authorized by statute.
The second assignment of error is that the court should not have
reduced the amount of the mortgage (Exhibit B) from P68,611.01
to P8,555.78. The court did err, but its error consisted in not
declaring the mortgage void.
The court was without jurisdiction to approve the mortgage in the
first place, and its approval was a nullity. Plaintiffs claim against
the estate was P8,655.78 with interest as added by the court. This
claim should be paid pro rata with any other unpaid claims against
the estate.
The other errors of appellant need only brief consideration.
That an attachment should not have been levied on the carabaos
in administration is too plain to need discussion. If they were in
the name and possession of the administratrix, they were in
custodia legis, and could not be lawfully attached. The plaintiffs as
creditors of the estate could have petitioned the court to compel
the administratrix to take any steps necessary and proper to
43
protect the interest of all concerned.
The appointment of a receiver was equally unjustified and
improper. The property being under the courts control, the court
should have removed the administratrix, if necessary, and it could
have taken other means to protect the creditors and wind up the
estate.
The plaintiffs assign as error No. 10 that the court should not have
allowed the sum of P5,000 damages for injury to the sugar lands.
The evidence as to this damage is not considered as clear and
satisfactory as it should be.
It seems this claim should have been wholly denied by the trial
court, and we think the judgment in favor of the administratrix and
against the plaintiffs should be reduced from P13,262.50 to
P8,262.50 with interest as provided therein. The other damages
allowed by the trial court are so fully sustained by the evidence, it
is not necessary to discuss them.
With the above modification and with a declaration that the
mortgage, exhibit B, was absolutely void, the judgment appealed
from is affirmed, with costs against the appellants. So ordered.
Arellano, C.J., Torres, Johnson, Araullo, Street, Malcolm and
Avancea, JJ., concur.
44
proceedings were it was filed. This view is likewise not tenable.
Though nominally payable to the Republic of the Philippines, the
bond is expressly for the benefit of the heirs, legatees and
creditors of the Estate of the deceased Aguedo Gonzaga. There
is no valid reason why a creditor may not directly in his name
enforce said bond in so far as he is concerned.
Under the fifth assignment of error, it is alleged that the plaintiffs
should have first filed a claim against the Estate of the deceased
administratrix Agueda Gonzaga, in conformity with section 6 of
Rule 87 of the Rules of Court providing that "Where the obligation
of the decedent is joint and several with another debtor, the claim
shall be filed against the decedent as if he were the only debtor,
without prejudice to the right of the estate to recover contribution
from the other debtor." Apart from the fact that his defense was
not pleaded either in a motion to dismiss or in the answer and
was therefore waived (section 10, Rule 9 of the Rules of Court), it
appears that even as late as September 17, 1952, when the
present complaint was filed, (more than two years after the death
of Agueda Gonzaga), there were no proceedings for the
administration of her estate, with the result that section 6 of Rule
87 loses its applicability. Moreover, it is to be noted that the
appellant had also chosen to file a third-party complaint in the
present case against Romualdo Araneta, joint and several
counter-guarantor of the deceased administratrix, instead of
presenting a claim against the latter's estate.
In its sixth assignment of error, the lower court is alleged to have
erred in sentencing the appellant to pay attorney's fees in the sum
of P900, in excess of the limit of its bond. This contention is
tenable. Under section 3 of Rule 36 of the Rules of Court, a
summary judgment may be rendered upon proper motion except
as to the amount of damages.1wphl.nt
There being no proof regarding the amount of attorney's fees
claimed by the plaintiff, no judgment thereon may be rendered
herein. It is, however, argued by the counsel for appellee that said
fees are in pursuance of article 2208 of the Civil Code, providing
that attorney's fees cannot be recovered except "where the
defendant acted in gross and evident bad faith in refusing to
satisfy the plaintiff's plainly valid, just and demandable claim"; and
it alleged in the complaint that the appellant had so acted in this
case. While the provision cited authorizes the collection of
attorney's fees under the situation contemplated herein, it does
not dispense with the effect of section 3 of Rule 36.
Wherefore, it being understood that the defendant-appellant is
sentenced to pay to the plaintiff-appellee only the sum of P6,000,
plus the cost, the same is hereby affirmed.
Pablo, Bengzon, Padilla, Montemayor, Reyes, A., Jugo, Bautista
Angelo, Concepcion and Reyes, J.B.L., JJ., concur.
45
April 30,
May
June 30,
July
Aug.
Sept.
Oct.
Nov.
Dec.
1927
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sept.
Oct.
Sales store
Products
Store
None (Store discontinued)
Products
Do
Do
Do
None.
Do.
Do.
53.12
117.00
.25
Products
Do
Products
Cash received from Constabulary
Products
Do
Do
Carabao sold
Two steers sold
Hogs sold
Few nuts sold
Two steers sold
Nuts sold
$50 U. S. Liberty Bond & Interest
The total of which is
16.00
166.60
15.00
20.91
13.50
5.00
10.00
100.00
160.00
79.50
8.00
180.00
12.00
127.52
2.20
29.75
12.80
18.40
1,919.25
From which it appears that on November 30,1925, the
administrator sold hogs for P108.50; in July, 1927, he sold one
carabao for P100 and two steers for P160; in August he sold hogs
for P79.50; and in September he sold two steers for P180.
Strange as it may seem, the above is the only account which was
ever rendered of the livestock which was appraised at P4,000,
and yet no specific objection was ever made or filed to the final
account of the administrator for his failure to render any other or
different account of the livestock. Even so, it appears that the sale
to Mannion was made by and with the consent of the heirs, and
that the deed was intended to convey all of the property to him
described in the inventory, except that of a perishable nature and
some personal effects. It further appears from the amended
account that the total amount of cash received by the
administrator, including the sale to Mannion was P9,519.25, and
that the total amount of cash disbursed by the administrator was
P11,328.94, leaving a deficit or balance due and owing from the
estate of P1,809.69. It also appears that the amount of Fleming's
note at the time it was paid was P1,003.40, and that the taxes for
the years 1925,1926, and 1927 amounted to P152.14, and the
claim of J. S. Alano amounted to P500. That is to say, at the time
they were paid, the actual claims against the deceased was P
1,655.54. Here, it will be noted that the value of the personal
property of the estate at the time of Wilson's appointment,
appearing over his own signature was P5,800 which included 80
head of cattle, carabao and horses of the value of P4,000. That is
to say, at the time Wilson was appointed, his estate had personal
property of the value of P5,800, and when the amended final
account was filed the actual debts of the deceased, including
interest and accumulated taxes, was P1,655.54.
In this situation, it was the legal duty of the administrator to at
once apply to the court for an order to sell the personal property
to pay the debts of the deceased and the expenses of
administration. It also appears from the amended final account
that the expenses charged by the administrator was P750.94; that
the court expenses, including attorney's fees was P693.20; and
that the claims of the commisioners was P322.90, the total of
which is P1,767.04. That is to say, that the total of all claims
against the deceased, including interest and taxes was
P1,655.54, and that the whole amount of the court costs and
expenses of administration was P1,767.04, the total of which is
P3,422.58. That is to say, at the time of his appointment, it
appears over the administrator's own signature that the value of
the personal property of the deceased which came into his
possession was P5,800, and the whole amount of claims against
Rear at the time of his death and the court costs and expenses of
administration was P3,422.58. That is to say, if the personal
property of the estate had been promptly sold, when it should
have been, and sold for its appraised value, all the debts of the
deceased and the court costs and expenses of administration
would have been paid, and the estate would have a balance left
of P2,377.42. Instead of doing that, and without any order,
process or authority of the court the administrator, as appears
from his amended final account, continued the operation of the
plantation and the employment of Fleming as manager at a salary
of P200 per month, and a large number of men, so that at the
time of the filing of the amended final account, the total expense
for labor was P2,863.62, and the amount of the manager's salary
was P4,533.33, the net result of which was that all of the property
of the estate was consumed, lost, or destroyed, leaving a deficit
against the estate of P1,809.69. Whereas, if the administrator had
followed the law and promptly sold the personal property, all of
the debts of the estate would have been paid, and it would have a
cash balance in its favor of P2,377.42, and all of its real property
left, which was appraised at P15,000.
It is but fair to say that Wilson's place of business, which was in
Zamboanga, is at least 300 kilometers from the plantation, and
that he declined to serve as administrator and only accepted it
under pressure. That in legal effect he operated and left the
management of the plantation largely in the discretion of Fleming,
and that he personally had but little, if anything, to do with the
administration, and it does not appear that he was a party to any
fraud. But even so, he was appointed and qualified as
administrator, and the law imposed upon him legal duties and
obligations, among which was to handle the estate in a businesslike manner, marshal its assets, and close the estate without any
unreasonable or unnecessary delay. He was not appointed to act
for or on behalf of the creditors, or to represent the interests of the
heirs only. He should have administered the affairs of the estate
for the use and benefit alike of all interested persons, as any
prudent business man would handle his own personal business.
When appointed, it is the legal duty of the administrator to
administer, settle, and close the administration in the ordinary
course of business, without any unnecessary delay. Neither does
an administrator, in particular, without a specific showing or an
order of the court, have any legal right to continue the operation of
the business in which the deceased was engaged, or to eat up
and absorb the assets of the estate in the payment of operating
expenses. Yet, in the instant case, the administrator on his own
volition and without any authority or process of court continued
the operation of the plantation, and in the end, as shown by his
own report, the estate, which was appraised at P20,800, with
actual debts of the deceased of only P1,655,54 was all wiped out
and lost, and left with a deficit of P1,809.69.
The law does not impose upon an administrator a high degree of
care in the administration of an estate, but it does impose upon
him ordinary and usual care, for want of which he is personally
liable. In the instant case there were no complications of any kind
and in the usual and ordinary course of business, the
administrator should have wound up and settled the estate within
eight months from the date of his appointment.
Ruling Case Law, vol. 11, section 142, says:
Winding up Business An executor or administrator ordinarily
has no power to continue the business in which the decedent was
engaged at the time of his death; and this is true although he acts
in the utmost good faith and believes that he is proceeding for the
best interests of the estate. The penalty for continuing a business
of the decedent without authority is the imposition of a personal
liability on the executor or administrator so doing for all debts of
46
the business. The normal duty of the personal representative in
reference to such business is limited to winding it up, and even
where the beneficiaries are infants the court cannot authorize the
administrator to carry on the trade of the decedent. However, an
exception to the general rule is sometimes recognized; and so it
has been held that in order to settle an estate the personal
representative may, in some cases , be permitted to continue a
business for a reasonable time. For example, such personal
representative when authorized to postpone the sale of the
testator's effects may generally carry on the business for a
reasonable time with a view to its sale as a going concern. Even
in such cases the personal representatives are not, however,
entitled to embark in the business more of the testator's property
than was employed in it at his death. (Citing numerous
authorities.)
The same principle is also laid down in Cyc., vol., 18,p. 241,
where it is said:
C. Engaging in Business 1. GENERAL RULE. The general rule
is that neither an executor nor an administrator is justified in
placing or leaving assets in trade, for this is a hazardous use to
permit of trust moneys; and trading lies outside the scope of
administrative functions. So great a breach of trust is it for the
representative to engage in business with the funds of the estate
that the law charges him with all the losses thereby incurred
without on the other hand allowing him to receive the benefit of
any profits that he may make, the rule being that the persons
beneficially interested in the estate may either hold the
representative liable for the amount so used with interest, or at
their election take all the profits which the representative has
made by such unauthorized use of the funds of the estate.
Even so, considering the fact that Wilson's home and place of
business was 300 kilometers from the plantation, and that in the
very nature of things, he could not give the business of the estate
his personal attention, we are disposed to be more or less lenient,
and to allow him the actual operating expenses of the plantation
for the first eight months of his appointment amounting to
P2,257.45. Although the expense account of the administrator
and the claims of the commissioners are somewhat high, we are
also disposed to allow those claims. That is to say, in his final
account, the administrator should have credit for the following
items:
As stated, it appears from his report that the administrator in the
course of administration received P1,919.25 from the sale of
personal property. This with the P7,600 which he received from
His personal charges and expenses
Court expenses, including attorney's fee
Claims of the commissioners
Expenses for and on account of operation for the first eight months
Debts against the deceased, including taxes
or a total of
the remaining assets sold to Mannion make a total of P9,519.25
from which should be deducted P5,680.03 for and on account of
the items above stated, leaving a balance due and owing from the
administrator to the heirs of the deceased of P3,839.22.
As stated, it is the duty of the administrator of an estate to
represent and protect the interests of all interested persons,
including the heirs of the deceased. It is very apparent upon their
face that the entries in Exhibits D and E were not made in the
ordinary course of business, and even if they were, they would
not be evidence of the payments without the corresponding
receipts or vouchers. That is to say, to entitle the administrator to
credit for money paid out in the course of administration, he
should submit and file with the court a corresponding receipt or
voucher. Even so, it appears from the record that during his
lifetime, the deceased employed a number of laborers on the
plantation, and that after Wilson was appointed as administrator,
Fleming personally took charge of and operated the plantation,
and that the expenses of which for the first eight months was
P2,257.45.
The order of the lower court approving the final account of Wilson
as administrator is reversed and set aside, and a judgment will be
entered in favor of the heirs and against the administrator for
P3,839.22, with interest thereon from November 7,1927, at the
rate of 6 per cent per annum, without prejudice to any remedy
which the heirs may have against the bondsmen of the
administrator. The appellants to recover costs. So ordered.
Avancea, C.J., Johnson, Street, Malcolm, Villamor, Romualdez
and Villa-Real, JJ., concur. Ostrand, J., reserves his vote.
47
On October 20, 1962, the Court of First Instance of Negros
Occidental acting on the motions filed by the defendantsappellants ordered the bonds cancelled.
Plaintiff-appellee's demand amounted to P2,436.00 in each case,
hence, a total of P4,872.00 for the period of August 9, 1955 to
October 20, 1962. The defendants-appellants to pay the said
amount of P4,872.00.
On January 8, 1963, the plaintiff-appellee filed the case with the
Court of First Instance of Manila During the pre-trial the parties
presented their documentary evidences and agreed on the
ultimate issue - "whether or not the administrator's bonds were in
force and effect from and after the year that they were filed and
approved by the court up to 1962, when they were cancelled."
The defendants-appellants offered P1,800.00 by way of amicable
settlement which the plaintiff-appellee refused.
The lower court allowed the plaintiff to recover from the
defendants-appellants, holding that:
We find for the plaintiff it is clear from the terms of the Order of
the Court in which these bond were filed, that the same were in
force and effect from and after filling thereof up to and including
20 October, 1962, when the same werecancelled. It follows that
the defendants are liable under the terms of the Indemnity
Agreements, notwithstanding that they have not expressly sought
the renewal of these bonds bemuse the same were in force and
effect until they were cancelled by order of the Court. The renewal
of said bonds is presumed from the fact that the defendants did
not ask for the cancellation of the same; and their liability springs
from the fact that defendant Administrator Pastor Quebrar,
benefited from the bonds during their lifetime.
We find no merit in defendants' claim that the Administrator's
bonds in question are not judicial bonds but legal or conventional
bonds only, since they were constituted by virtue of Rule 82, Sec.
1 of the Old Rule of Court. Neither is there merit in defendants,
claim that payments of premiums and documentary stamps were
conditions precedent to the effectivity of the bonds, since it was
the defendants' duty to pay for the premiums as long as the
bonds were in force and effect. Finally, defendants' claim that
they are not liable under the Indemnity Agreements is also without
merit since the under of defendants under said Indemnity
Agreements; includes the payment of yearly pre for the bonds.
WHEREFORE, judgment is hereby rendered in favor of the
plaintiff and against the defendants, ordering the tsn the
defendant to pay the plaintiff, jointly and severally, the amount of
P6,649.36 plus interest at the legal rate from 27 July 1964 until
fully paid and the sum equivalent to 10% of the total amount due
as and or attorney's fees, and costs (pp. 92-94, ROA; p. 9, rec.).
Defendants-appellants appealed to the Court of Appeals. On
March 20, 1975, the Court of Appeals in a resolution certified the
herein case to this Court after finding that this case involves only
errors or questions of law.
1. The proper determination of the liability of the surety and of the
principal on the bond must depend primarily upon the language of
the bond itself. The bonds herein were required by Section 1 of
Rule 81 of the Rules of Court. While a bond is nonetheless a
contract because it is required by statute (Midland Co. vs. Broat
52 NW 972), said statutory bonds are construed in the light of the
statute creating the obligation secured and the purposes for which
the bond is required, as expressed in the statute (Michael vs.
Logan, 52 NW 972; Squires vs. Miller, 138 NW 1062). The statute
which requires the giving of a bond becomes a part of the bond
and imparts into the bond any conditions prescribed by the statute
(Scott vs. United States Fidelity Co., 252 Ala 373, 41 So 2d 298;
Employer's Liability Assurance Corp. vs. Lunt, 82 Ariz 320, 313
P2d 393).
The bonds in question herein contain practically the very same
conditions in Sec. 1, Rule 81 of the Rules of Court. Pertinent
provision of the administrator's bonds is as follows:
Therefore, if the said Pastor T. Quebrar faithfully prepares and
presents to the Court, within three months from the date of his
appointment, a correct inventory of all the property of the
deceased which may have come into his possession or into the
possession of any other person representing him according to
law, if he administers all the property of the deceased which at
any time comes into his possession or into the possession of any
other person representing him; faithfully pays all the debts,
legacies, and bequests which encumber said estate, pays
whatever dividends which the Court may decide should be paid,
and renders a just and true account of his administrations to the
Court within a year or at any other date that he may be required
so to do, and faithfully executes all orders and decrees of said
Court, then in this case this obligation shall be void, otherwise it
shall remain full force and effect (p. 9, 18, ROA p. 9, rec.).
Section 1 of Rule 81 of the Rules of Court requires the
administrator/executor to put up a bond for the purpose of
indemnifying the creditors, heirs, legatees and the estate. It is
conditioned upon the faithful performance of the administrator's
trust (Mendoza vs. Pacheco, 64 Phil. 134).
Having in mind the purpose and intent of the law, the surety is
then liable under the administrator's bond, for as long as the
administrator has duties to do as such administrator/executor.
Since the liability of the sureties is co-extensive with that of the
administrator and embraces the performance of every duty he is
called upon to perform in the course of administration (Deobold
vs. Oppermann, 111 NY 531, 19 NE 94), it follows that the
administrator is still duty bound to respect the indemnity
agreements entered into by him in consideration of the suretyship
It is shown that the defendant-appellant Pastor T. Quebrar, still
had something to do as an administrator/executor even after the
approval of the amended project of partition and accounts on
June 6, 1957.
The contention of the defendants-appellants that the
administrator's bond ceased to be of legal force and effect with
the approval of the project of partition and statement of accounts
on June 6, 1957 is without merit. The defendant-appellant Pastor
T. Quebrar did not cease as administrator after June 6, 1957, for
administration is for the purpose of liquidation of the estate and
distribution of the residue among the heirs and legatees. And
liquidation means the determination of all the assets of the estate
and payment of all the debts and expenses (Flores vs. Flores, 48
Phil. 982). It appears that there were still debts and expenses to
be paid after June 6, 1957.
And in the case of Montemayor vs. Gutierrez (114 Phil. 95), an
estate may be partitioned even before the termination of the
administration proceedings. Hence, the approval of the project of
partition did not necessarily terminate the administration
proceedings. Notwithstanding the approval of the partition, the
Court of First Instance of Negros Occidental still had jurisdiction
over the administration proceedings of the estate of A.B. Chinsuy
and Cresenciana Lipa.
2. The sureties of an administration bond are liable only as a rule,
for matters occurring during the term covered by the bond. And
the term of a bond does not usually expire until the administration
has been closed and terminated in the manner directed by law
(Hartford Accident and Indemnity Co. vs. White, 115 SW 2d 249).
Thus, as long as the probate court retains jurisdiction of the
estate, the bond contemplates a continuing liability (Deobold vs.
Oppermann, supra) notwithstanding the non-renewal of the bond
by the defendants-appellants.
It must be remembered that the probate court possesses an allembracing power over the administrator's bond and over the
administration proceedings and it cannot be devoid of legal
authority to execute and make that bond answerable for the every
purpose for which it was filed (Mendoza vs. Pacheco, 64 Phil. 105). It is the duty of the courts of probate jurisdiction to guard
jealously the estate of the deceased persons by intervening in the
administration thereof in order to remedy or repair any injury that
may be done thereto (Dariano vs. Fernandez Fidalgo, 14 Phil. 62,
67; Sison vs. Azarraga, 30 Phil. 129, 134).
3. In cases like these where the pivotal point is the interpretation
of the contracts entered into, it is essential to scrutinize the very
48
language used in the contracts. The two Indemnity Agreements
provided that:
The undersigned, Pastor T. Quebrar and Dr. Francisco Kilayko,
jointly and severally, bind ourselves unto the Luzon Surety Co.,
Inc. ... in consideration of it having become SURETY upon Civil
Bond in the sum of Fifteen Thousand Pesos (P15,000.00) ... in
favor of the Republic of the Philippines in Special Proceeding ...
dated August 9, 1954, a copy of which is hereto attached and
made an integral part hereof (emphasis supplied; pp. 12-13, 21,
ROA p. 9, rec.),
To separately consider these two agreements would then be
contrary to the intent of the parties in making them integrated as a
whole.
The contention then of the defendants-appellants that both the
Administrator's Bonds and the Indemnity Agreements ceased to
have any force and effect, the former since June 6, 1957 with the
approval of the project of partition and the latter since August 9,
1955 with the non-payment of the stated premiums, is without
merit. Such construction of the said contracts entered into would
render futile the purpose for which they were made.
To allow the defendants-appellants to evade their liability under
the Indemnity Agreements by non-payment of the premiums
would ultimately lead to giving the administrator the power to
diminish or reduce and altogether nullify his liability under the
Administrator's Bonds. As already stated, this is contrary to the
intent and purpose of the law in providing for the administrator's
bonds for the protection of the creditors, heirs, legatees, and the
estate.
4. Moreover, the lower court was correct in holding that there is
no merit in the defendants' claim that payments of premiums and
documentary stamps are conditions precedent to the effectivity of
the bonds.
It is worthy to note that there is no provision or condition in the
bond to the effect that it will terminate at the end of the first year if
the premium for continuation thereafter is not paid. And there is
no clause by which its obligation is avoided or even suspended by
the failure of the obligee to pay an annual premium (U.S. vs.
Maryland Casualty Co. DCMD 129 F. Supp; Dale vs. Continental
Insurance Co., 31 SW 266; Equitable Insurance C. vs. Harvey, 40
SW 1092).
It was held in the case of Fourth and First Bank and Trust Co. vs.
Fidelity and Deposit Co. (281 SW 785), that "at the end of the first
year, the bond went on, whether or not the premium was paid or
not ... Even on a failure to pay an annual premium, the contract
ran on until affirmative action was taken to avoid it. The obligation
of the bond was therefore continuous." And in United States vs.
American Surety Co. of New York (172 F2d 135), it was held that
"under a surety bond securing faithful performance of duties by
postal employee, liability for default of employee occurring in any
one year would continue, whether or not a renewal premium was
paid for a later year."
The payment of the annual premium is to be enforced as part of
the consideration, and not as a condition Woodfin vs. Asheville
Mutual Insurance Co., 51 N.C. 558); for the payment was not
made a condition to the attaching or continuing of the contract
(National Bank vs. National Surety Co., 144 A 576). The premium
is the consideration for furnishing the bonds and the obligation to
pay the same subsists for as long as the liability of the surety shall
exist (Reparations Commission vs. Universal Deep-Sea Fishing
Corp., L-21996, 83 SCRA 764, June 27, 1978). And in Arranz vs.
Manila Fidelity and Surety Co., Inc. (101 Phil. 272), the "premium
is the consideration for furnishing the bond or the guaranty. While
the liability of the surety subsists the premium is collectible from
the principal. Lastly, in Manila Surety and Fidelity Co., Inc. vs.
Villarama (107 Phil. 891), it was held that "the one-year period
mentioned therein refers not to the duration or lifetime of the
bond, but merely to the payment of premiums, and, consequently,
does not affect at all the effectivity or efficacy of such bond. But
such non- payment alone of the premiums for the succeeding
years ... does not necessarily extinguish or terminate the
49
motions to he discharged from the bond were filed by sureties
Pacheco and Cordero. Both motions were denied. A motion by
Cordero to reconsider the order of denial met a like fate. Brought
on appeal to this court, the appeal was dismissed. The dispositive
part of the decision of this court (G. R. No. 40998, Cosme de
Mendoza vs. Pacheco and Cordero [60 Phil., 1057]) reads as
follows:
The motion of October 1, 1933, was filed only on behalf of
Raymundo Cordero who filed no motion for reconsideration of the
order of execution of November 4, 1932, and took no appeal
therefrom. Being of the opinion that the trial court correctly held
that said order had become final, the motion of October 31, 1933,
for reconsideration (if such it may be called) came too late. The
judgment is therefore affirmed with costs against the appellants.
When the case was remanded to the lower court, the sureties
filed a motion challenging, for the first time, the jurisdiction of the
trial court to issue the order of November 4, 1932, executing the
bond. The trial court denied the motion in view of the decision of
this court. The case is elevated here for the second time on
appeal.
Appellants assign the following error:
The lower court erred in refusing: (a) To declare null and void its
order of execution of the ex-administrator's bond of November 4,
1932, as well as the writs of execution issued in virtue thereof; (b)
to accordingly vacate said order of November 4, 1932, and order
the release of the properties of the herein sureties-appellants
attached in pursuance of the writs of execution issued against
them by virtue of said order; and (c) to order the suspension of
the execution of the said order of November 4, 1932, until this
case is finally decide.
In the discussion of the foregoing assignment of error in their brief
(pp. 9-23), the appellants take in six propositions. One question,
however, that of jurisdiction of the Court of First Instance of
Laguna to order the execution of the administrator's bond is
decisive of this appeal. Appellants, sureties upon the bond, press
the point that the order in suit is an absolute nullity for lack of
power in the issuing court. "In vain," they tell us, "have we
searched our statute books, especially the part of our Code of
Civil Procedure regarding probate jurisdiction, to find whether our
Courts of First Instance, acting as probate courts, have the power
to order the execution of an administrator's bond." Neither their
failure to assail that jurisdiction when they ought nor the
subsequent affirmance of the order by this court, they say, could
revive an order dead from its inception.
To begin with, it lies within discretion of the court to select an
administrator of the estate of a deceased person (Capistrano vs.
Nadurata, 46 Phil., 726, 727). Before an administrator, or an
executor, enters upon the execution of his trust, and letters
testamentary or of administration are issued, the person to whom
they are issued is required to give a bond in such reasonable sum
as the court directs, with one or more sufficient sureties,
conditioned upon the faithful performance of his trust (Code of
Civil Procedure, sec. 643, 662). The administrator is accountable
on his bond along with the sureties for the performance of certain
legal obligations. (Tan vs. Go Chiong Lee, 46 Phil., 200, 205. See
also, Stovall vs. Banks, 10 Wall., 583, 588; 19 Law. ed., 1036;
Long vs. O'Fallon, 19 How., 116; 15 Law. ed., 550.)
It is clear that a Court of First Instance, exercising probate
jurisdiction, is empowered to require the filing of the
administrator's bond, to fix the amount thereof, and to hold it
accountable for any breach of the administrator's duty.
Possessed, as it is, with an all-embracing power over the
administrator's bond and over administration proceedings, a Court
of First Instance in a probate proceeding cannot be devoid of
legal authority to execute and make that bond answerable for the
very purpose for which it was filed. It is true that the law does not
say expressly or in so many words that such court has power to
execute the bond of an administrator, but by necessary and
logical implication, the power is there as eloquently as if it were
phrased in unequivocal term. When the accountability of an
50
though they still are often unadvisedly described, particularly in
Connecticut (Griffin vs. Pratt, 3 Conn., 513), as courts of limited,
inferior or special jurisdiction, they have outgrown their limitations
and have become courts with considerably increased powers
(Woerner, The American Law of Administration [2d], sec. 145;
Plant vs. Harrison, supra).
What has been said sufficiently determinative of the appeal before
us. We wish, however, to say a word on a salutary consideration
of policy which has been invariably followed by this court in cases
of this nature. We refer to the dispatch and economy with which
administration of the estates of deceased persons should be
terminated and settled. It will be recalled that the appellants could
have raised the question of jurisdiction now pressed upon us in
civil case No. 5494 of the Court of First Instance of Laguna and
on appeal of that case to this court once before (G. R. No. 40998
[60 Phil., 1057]). They not failed to avail of that right but failed to
appeal from the order complained of (Vide, Decision of this court
in G. R. No. 40998, Cosme de Mendoza vs. Pacheco and
Cordero). The questions raised in the appeal at bar, appellant's
second attempt to go about and frustrate the order in question,
could have been passed upon once for all in the case referred to.
We cannot encourage a practice that trenches violently upon the
settled jurisprudence of this court that the policy and purpose of
administration proceedings is ". . . to close up, and not to continue
an estate . . ." (Lizarraga Hermanos vs. Abada, 40 Phil., 124,
133), and that ". . . the State fails wretchedly in its duty to its
citizens if the machinery furnished by it for the division and
distribution of the property of a decedent is so cumbersome,
unwidely and expensive that a considerable portion of the sate is
absorbed in the process of such division. Where administration is
necessary, it ought to be accomplished consumes any
considerable portion of the property which it was designed to
distribute is a failure. . . ." (McMicking vs. Sy Conbieng, 21 Phil.,
211, 220.)
The order appealed from is hereby affirmed, with costs against
the appellants. So ordered.
Avancea, C.J., Abad Santos, Imperial, Diaz and Concepcion,
JJ., concur.
Separate Opinions
VILLA-REAL, J., dissenting:
Much as I respect the opinion of the majority, I am constrained by
contrary conviction to dissent from said opinion.
Chapter XXXI of the Code of Civil Procedure, which is headed
"Wills and the allowance thereof, and duties of executors",
contains no provision concerning the enforcement of the liability of
an executor or administrator on his bond and of that of his
sureties. According to article 1853 of the Civil Code, "the
guarantor may set up against the creditor all the defenses
available to the principal debtor and which may be inherent in the
debt; . . . ." In an administration bond the executor or
administrator stands in the place of the principal debtor; his
sureties may, therefore, set up all the defenses to which he may
be entitled, and which are inherent in the obligation. The
procedure by which such defenses may be set up is the ordinary
one established by the said Code of Civil Procedure by means of
an action in court wherein may contain general or special denial,
a special defense or a counterclaim. (Secs. 94 and 95, Act No.
190.) The said Code has not established any special procedure
by which an executor or administrator with a mere notice to his
sureties does not afford them an adequate opportunity to set up
the defenses which the law guarantees to them. To enforce the
liability of an administrators and require them to file an adequate
bond is not only ultra vires but a violation of the constitutional
inhibition that no person shall be deprived of his life, liberty and
property without due process of law. "The usual method of
enforcing the liability on an administration bond is by an action
brought on the bond in a court of law, although in some
jurisdictions other forms of remedy are provided by statute, . . . ."
(24 Corpus Juris, sec. 2598, p. 1084.)
51
appellant filed a motion asking for the reconsideration of the order
of April 7, 1928, alleging fraud, mistake and surprise. In the same
motion application was made for the removal of the administrator
and for forfeiture of his bond. This application we consider to have
been made under section 113 of the Code of Civil Procedure; and
it is from an order of Judge Santamaria, expressed with some
regret, denying the application to set aside the order of Judge
Salas of April 7, 1928, that this appeal is being prosecuted.
There can be no doubt that an appeal lies from a refusal of a
court to grant relief in a proper case under section 113 of the
Code of Civil Procedure; and it is evident that Judge Santamaria,
possibly out of an excessive defense for the prior order of an
associate, has failed to give relief where relief was in fact called
for. The order of Judge Salas, which is the subject of complaint in
this appeal, was in our opinion improvident, to say the least, and
made without a reasonable opportunity having been given to the
adverse creditors to make effective opposition.
From what has been said it follows that the order from which this
appeal was taken is erroneous, and, as prayed in the first
assignment of error, we hereby set aside the order of Judge
Fernando Salas of April 7, 1928, with the result of the
proceedings will be restored to the position in which they stood
before that order was entered, except as stated in the next
paragraph.
A careful examination of the facts revealed in this record
concerning the activities of Agripino S. Gustilo, as administrator of
Angel Gustilo, convinces this court that he is not a fit person to be
administrator of this estate and that he has not in fact
administered it so far with due regard to the rights of other
persons in interest. It is the opinion of the court, therefore, that he
should be removed and required to render his accounts as
administrator, in accordance with the second assignment of error.
The third assignment of error, taking exception to the refusal of
the trial court to order the forfeiture of the bond of the
administrator, in our opinion contemplates an order that would be
premature.
The fourth assignment of error involves a criticism of the court a
quo for not seeing that the debts of the estate had been more
expeditiously paid; and it supplies no basis for resolution here.
In conclusion, the order of April 7, 1928, above referred to, is
abrogated, the administrator, Agripino S. Gustilo, is removed from
office, with liability to account, and the cause remanded for further
proceedings. So ordered, without costs.
Johnson, Malcolm, Ostrand, Johns, Romualdez and Villa-Real,
JJ., concur.
52
special administrator Valentin Umipig should file the accounts of
his administration appears to be so unreasonable to justify that,
as prayed by petitioner, it be disturbed. .
The facts alleged in the petition are not ground enough why the
lower court should be compelled to order the removal of said
special administrator. There is enough ground for the lower court
to issue his discretion to the effect of ordering said removal, but
its action in not ordering it does not appear to be arbitrary,
abusive, or even unwise. The fact that the lower court had to
issue warnings in order to compel said special administrator to
perform its official duties offers basis enough to believe that said
official duties and negligence in the performance of official duty
should not be countenanced, but rather should be dealt with
sternly. It justifies removal from office, it is highly detrimental to
public interest. The guilty ones should always be made to feel the
weight of their responsibility and suffer the deserved sanction.
In our opinion, the petition must be denied.
53
come into his possession or knowledge, in accordance with the
provisions of section 668 of the Code of Civil Procedure, and to
manage them according to section 643 of the same Code; and in
order that he may have in his power and under his custody all
such property, section 702 of the aforesaid Code authorizes him
to bring such actions for the purpose as he may deem necessary.
Section 642 in providing for the appointment of an administrator
where there is no will or the will does not name an executor,
seeks to protect not only the estate of the deceased but also the
rights of the creditors in order that they may be able to collect
their credits, and of the heirs and legatees in order that they may
receive the portion of the inheritance or legacy appertaining to
them after all the debts and expenses chargeable against the
deceased's estate have been paid. Under the provisions of the
law, therefore, the judicial administrator is the legal representative
not only of the testate or intestate estate, but also of the creditors,
and heirs and legatees, inasmuch as he represents their interest
in the estate of the deceased.
Benedicta Santa Juana, as administratrix of the intestate estate of
the late Chua Piaco, was the legal representative not only of said
estate but also of its creditors and heirs. In view of this relation of
agent and principal between her and the plaintiffs in the present
case, the decision rendered against Benedicta Santa Juana, as
such administratrix, in the former case is conclusive and binding
upon said plaintiffs in the present case, in accordance with
section 306 of the Code of Civil Procedure cited above. (Spaths
vs. Hanley, 85 Cal., 155; Schwarz vs. Bohle, 47 Cal. Ap., 445;
Cunningham vs. Ashley, 45 Cal., 485; Lloyd vs. Bell, 77 Fed.,
365.)
With reference to the parties plaintiffs, then, while there is no real
identity between the plaintiff in civil case No. 25797 of the Court of
First Instance of Manila, and the plaintiffs in the present case,
nevertheless, there exists between them the relation of legal
representation by virtue of which the decision rendered in such
case against the former binds the latter. With respect to the
parties defendant, there is no question that the defendant in the
first case is the same in the present and appears in the same
capacity.1awphil.net
The second question to decide is whether or not there is identity
of subject matter. In the former case the petition was for the
rendering of an accounting of certain funds alleged to have been
delivered in trust by the late Chua Piaco to his adopted son, the
late Chua Toco. In the present case the petition is for the partition
of those same funds and their fruits between the heirs of both
deceased. Therefore, the subject matter of the litigation is the
same, and, consequently, there is perfect identity of subject
matter.
As to whether or not there is identity of cause of action, in the
former case it was alleged that the late Chua Piaco had delivered
in trust to his adopted son, the late Chua Toco, certain funds and
that the judicial administratrix of the latter's intestate estate had
refused to render an accounting of said funds and the fruits
thereof. In the present case the plaintiffs include the same
allegation of trust, and the defendant makes the same denial,
except that instead of a rendition of accounts, the partition of said
funds and the product thereof is asked.
The cause of action in the former case is therefore identical with
the cause of action in the present case, and is predicated on one
and the same alleged right of action arising out of an alleged trust,
and the same general denial and special defense.
It is true that the relief sought, the rendition of accounts in the
former case, is different from the relief sought in the case now
before us, which is the partition of funds, but the question at
issue, upon the determination of which depended the granting or
denial of such relief, is the same, namely, whether Chua Piaco or
Chua Toco was the owner of said funds. This question was
definitely decided in favor of the defendant and against the
plaintiff, the complaint having been finally dismissed, wherein the
latter had alleged, as we have stated, that the aforesaid funds and
the products thereof belonged to the late Chua Piaco, who had
EN BANC
[G.R. No. 46898. January 20, 1940.]
Testate of the deceased Rudocindo Adapon. PEDRO
ADAPON, administrator-appellant, v. FELISA MARALIT,
Oppositor-Appellee.
G. Garcia and Jose Nava for Appellant.
Godofredo Reyes for Appellee.
SYLLABUS
1. ESTATES OF DECEASED PERSONS; EXTENT OF
JURISDICTION OF PROBATE COURTS; DETERMINATION OF
QUESTIONS OF OWNERSHIP. Under section 599 of the
Code of Civil Procedure, the probate jurisdiction of the Court of
First Instance relates only to matters having to do with "the
settlement of estates and probate of wills of deceased persons,
the appointment and removal of guardians and trustees, and the
power, duties, and rights of guardians and wards, trustees, and
cestuis que trust." As may be seen, the law does not extend the
54
jurisdiction of a probate court to the determination of questions of
ownership that arise during the proceeding.
DECISION
LAUREL, J.:
Total 12,400.00
To this petition, administrator-appellant filed an answer
enumerating his objections as follows:jgc:chanrobles.com.ph
"(a) En cuanto a la obligacion de Gregorio Salud, de P2,000, la
misma se ha contraido a favor del finado Rudocindo Adapon y del
Administrador Pedro Adapon; de modo que, solamente la mitad
de dicho credito, o sea, P1,000 corresponde a la Testamentaria.
"(b) En cuanto a los cavanes de palay, solamente 300 cavanes
corresponden a la Testamentaria.
"(c) En cuanto a los carabaos, caballos y vacunos, el
Administrador solo tiene en su poder unos 28 cabezas.
55
apelante a la orden del Juzgado de 7 de julio de 1937."cralaw
virtua1aw library
The statement of the issue by the parties is markedly conflictive.
We are of the opinion, however, that the sole question to be
resolved in this appeal is whether or not a Court of First Instance,
in the exercise of its probate jurisdiction under section 599 of the
Code of Civil Procedure, could, upon petition of an oppositor to
include certain properties in the inventory prepared by the
administrator, to some of which the said administrator has laid
claims of proprietorship, determine the question of ownership, and
thereby meet the issues as thus presented.
The administrator-appellant earnestly contends that the question
of ownership is not involved, and that the only point to be passed
upon is:" Deberia el Juzgado ordenar o no el administrador
Pedro Adapon la inclusion en el inventario de la testamentaria el
credito y bienes especificados por Felisa Maralit en su aludido
escrito?" It is not seen how the probate court can determine the
respective merits of the conflicting claims made by the
administrator and the oppositor without necessarily declaring the
lawful ownership of the properties involved. Such a declaration is
necessary and inevitable, and without it the, probate court cannot
properly proceed and dispose of the petition submitted by the.
oppositor.
Under section 599 of the Code Of Civil Procedure, the probate
jurisdiction of the Court of First Instance relates only to matters
having to do with "the settlement of estates and probate of wills of
deceased persons, the appointment and removal of guardians
and trustees, and the powers, duties, and rights of guardians and
wards, trustees, and cestuis que trust." As may be seen, the law
does not extend the jurisdiction of a probate court to the
determination of questions of ownership that arise during the
proceeding.
In the case of Bauermann v. Casas (10 Phil., 392-393), this court,
in passing upon the same question now raised, observed that "the
mere fact that one of the parties is an executor or administrator of
a certain estate does not give exclusive jurisdiction to the probate
court wherein the estate is being settled, of questions arising
between such executors or administrators and third persons, as to
the ownership of specific property. of course when it is once
determined that certain property is the property of the estate,
exclusive jurisdiction over the administration of such property
vests in the court wherein the estate is being settled, but until this
question is decided the mere allegation that certain property is the
property of an estate in course of administration is not sufficient to
oust all other courts of jurisdiction over questions touching the
ownership of such property and rights based on the right of
ownership." In Devesa v. Arbes (13 Phil., 281), the same doctrine
was reiterated with greater force and emphasis, the Court there
holding that "a contested claim of an administrator that certain
rights of possession and ownership are the property of the estate
which he represents must be determined in a separate action,
and not in the course of the administration proceedings." Again,
this Court in Guzman v. Anog and Anog (37 Phil., 62-63), decided
that "when questions arise as to the ownership of property,
alleged to be a part of the estate of a deceased person, but
claimed by some other person to be his property, not by virtue of
any right of inheritance from the deceased, but by title adverse to
that of the deceased and his estate, such questions cannot be
determined in the course of administration proceedings. The
Court of First Instance, acting as a probate court, has no
jurisdiction to adjudicate such contentions, which must be
submitted to the court in the exercise of its general jurisdiction as
a Court of First Instance to try and determine the ordinary actions
mentioned in the Code of Civil Procedure." Finally, in the case of
Lunsod v. Ortega (46 Phil., 676), where the same question was
presented, the Court reaffirmed the principle enunciated in the