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Yet, in the last paragraph of page 8 it states Reliance on the case of Parks vs. Province of Tarlac 3
that the donation is basically a gratuitous as cited on page 5 of the majority opinion is
one. The pertinent portion thereof reads: erroneous in so far as the latter stated that the
condition in Parks is a resolutory one and applied
Finally, since the questioned deed of this to the present case. A more careful reading of
donation herein is basically a this Court's decision would reveal that nowhere did
gratuitous one, doubts referring to we say, whether explicitly or impliedly, that the
incidental circumstances of a donation in that case, which also has a condition
gratuitous contract should be imposed to build a school and a public park upon
resolved in favor of the least the property donated, is a resolutory condition. 4 It is
transmission of rights and interest . . . incorrect to say that the "conditions" of the donation
(emphasis supplied) there or in the present case are resolutory
Second, the discussion on conditional obligations is conditions because, applying Article 1181 of the
unnecessary. There is no conditional obligation to Civil Code, that would mean that upon fulfillment of
speak of in this case. It seems that the "conditions" the conditions, the rights already acquired will be
imposed by the donor and as the word is used in the extinguished. Obviously, that could not have been
law of donations is confused with "conditions" as the intention of the parties.
used in the law of obligations. In his annotation of What the majority opinion probably had in mind was
Article 764 of the Civil Code on Donations, Arturo M. that the conditions are resolutory because if they
Tolentino, citing the well-known civilists such as are not complied with, the rights of the donee as
Castan, Perez Gonzalez and Alguer, and Colin & such will be extinguished and the donation will be
revoked. To my mind, though, it is more accurate to anymore and the action to revoke the donation
state that the conditions here are not resolutory becomes imprescriptible.
conditions but, for the reasons stated above, are the Admittedly, the donation now in question is an
obligations imposed by the donor. onerous donation and is governed by the law on
Third, I cannot subscribe to the view that the contracts (Article 733) and the case of Osmeña,
provisions of Article 1197 cannot be applied here. being one involving a contract, may apply. But we
The conditions/obligations imposed by the donor must not lose sight of the fact that it is still a
herein are subject to a period. I draw this conclusion donation for which this Court itself applied the
based on our previous ruling which, although made pertinent law to resolve situations such as this. That
almost 90 years ago, still finds application in the the action to revoke the donation can still prescribe
present case. In Barretto vs. City of Manila, 5 we said has been the pronouncement of this Court as early
that when the contract of donation, as the one as 1926 in the case of Parks which, on this point,
involved therein, has no fixed period in which the finds relevance in this case. There, this Court said,
condition should be fulfilled, the provisions of what [that] this action [for the revocation of
is now Article 1197 (then Article 1128) are the donation] is prescriptible, there is
applicable and it is the duty of the court to fix a no doubt. There is no legal provision
suitable time for its fulfillment. Indeed, from the which excludes this class of action
nature and circumstances of the from the statute of limitations. And
conditions/obligations of the present donation, it can not only this, the law itself recognizes
be inferred that a period was contemplated by the the prescriptibility of the action for
donor. Don Ramon Lopez could not have intended the revocation of a donation,
his property to remain idle for a long period of time providing a special period of [four]
when in fact, he specifically burdened the donee years for the revocation by the
with the obligation to set up a medical college subsequent birth of children [Art. 646,
therein and thus put his property to good use. There now Art. 763], and . . . by reason of
is a need to fix the duration of the time within which ingratitude. If no special period is
the conditions imposed are to be fulfilled. provided for the prescription of the
It is also important to fix the duration or period for action for revocation for
the performance of the conditions/obligations in the noncompliance of the conditions of
donation in resolving the petitioner's claim that the donation [Art. 647, now Art. 764],
prescription has already barred the present action. I it is because in this respect the
disagree once more with the ruling of the majority donation is considered onerous and is
that the action of the petitioners is not barred by the governed by the law of contracts and
statute of limitations. There is misplaced reliance the general rules of prescription. 7
again on a previous decision of this Court in More recently, in De Luna v. Abrigo, 8 this Court
Osmeña vs. Rama. 6 That case does not speak of a reiterated the ruling in Parks and said that:
deed of donation as erroneously quoted and cited
by the majority opinion. It speaks of a contract for a It is true that under Article 764 of the
sum of money where the debtor herself imposed a New Civil Code, actions for the
condition which will determine when she will fulfill revocation of a donation must be
her obligation to pay the creditor, thus, making the brought within four (4) years from the
fulfillment of her obligation dependent upon her will. non-compliance of the conditions of
What we have here, however, is not a contract for a the donation. However, it is Our
sum of money but a donation where the donee has opinion that said article does not
not imposed any conditions on the fulfillment of its apply to onerous donations in view of
obligations. Although it is admitted that the the specific provision of Article 733
fulfillment of the conditions/obligations of the providing that onerous donations are
present donation may be dependent on the will of governed by the rules on contracts.
the donee as to when it will comply therewith, this In the light of the above, the rules on
did not arise out of a condition which the donee contracts and the general rules on
itself imposed. It is believed that the donee was not prescription and not the rules on
meant to and does not have absolute control over donations are applicable in the case
the time within which it will perform its obligations. at bar.
It must still do so within a reasonable time. What
that reasonable time is, under the circumstances, The law applied in both cases is Article 1144(1). It
for the courts to determine. Thus, the mere fact that refers to the prescription of an action upon a written
there is no time fixed as to when the conditions of contract, which is what the deed of an onerous
the donation are to be fulfilled does not ipso facto donation is. The prescriptive period is ten years
mean that the statute of limitations will not apply from the time the cause of action accrues, and that
is, from the expiration of the time within which the
donee must comply with the conditions/obligations
of the donation. As to when this exactly is remains The word "conditions" in this article
to be determined, and that is for the courts to do as does not refer to uncertain events on
reposed upon them by Article 1197. which the birth or extinguishment of a
juridical relation depends, but is used
For the reasons expressed above, I register my
in the vulgar sense of obligations or
dissent. Accordingly, the decision of the Court of
charges imposed by the donor on the
Appeals must be upheld, except its ruling that the
donee. It is used, not in its technical
conditions of the donation are resolutory.
or strict legal sense, but in its
Padilla, J., dissents broadest sense. 1 (emphasis supplied)
Clearly then, when the law and the deed of donation
Separate Opinions speaks of "conditions" of a donation, what are
referred to are actually the obligations, charges or
DAVIDE, JR., J., dissenting: burdens imposed by the donor upon the donee and
I agree with the view in the majority opinion that the which would characterize the donation as onerous.
donation in question is onerous considering the In the present case, the donation is, quite obviously,
conditions imposed by the donor on the donee onerous, but it is more properly called a "modal
which created reciprocal obligations upon both donation." A modal donation is one in which the
parties. Beyond that, I beg to disagree. donor imposes a prestation upon the donee. The
establishment of the medical college as the
First of all, may I point out an inconsistency in the condition of the donation in the present case is one
majority opinion's description of the donation in such prestation.
question. In one part, it says that the donation in
question is onerous. Thus, on page 4 it states: The conditions imposed by the donor Don Ramon
Lopez determines neither the existence nor the
We find it difficult to sustain the extinguishment of the obligations of the donor and
petition. A clear perusal of the the donee with respect to the donation. In fact, the
conditions set forth in the deed of conditions imposed by Don Ramon Lopez upon the
donation executed by Don Ramon donee are the very obligations of the donation — to
Lopez, Sr., give us no alternative but build the medical college and use the property for
to conclude that his donation was the purposes specified in the deed of donation. It is
onerous, one executed for a valuable very clear that those obligations are unconditional,
consideration which is considered the the fulfillment, performance, existence or
equivalent of the donation itself, e.g., extinguishment of which is not dependent on any
when a donation imposes a burden future or uncertain event or past and unknown
equivalent to the value of the event, as the Civil Code would define a conditional
donation . . . . (emphasis supplied) obligation. 2
Yet, in the last paragraph of page 8 it states Reliance on the case of Parks vs. Province of Tarlac 3
that the donation is basically a gratuitous as cited on page 5 of the majority opinion is
one. The pertinent portion thereof reads: erroneous in so far as the latter stated that the
Finally, since the questioned deed of condition in Parks is a resolutory one and applied
donation herein is basically a this to the present case. A more careful reading of
gratuitous one, doubts referring to this Court's decision would reveal that nowhere did
incidental circumstances of a we say, whether explicitly or impliedly, that the
gratuitous contract should be donation in that case, which also has a condition
resolved in favor of the least imposed to build a school and a public park upon
transmission of rights and interest . . . the property donated, is a resolutory condition. 4 It is
(emphasis supplied) incorrect to say that the "conditions" of the donation
there or in the present case are resolutory
Second, the discussion on conditional obligations is
conditions because, applying Article 1181 of the
unnecessary. There is no conditional obligation to
Civil Code, that would mean that upon fulfillment of
speak of in this case. It seems that the "conditions"
the conditions, the rights already acquired will be
imposed by the donor and as the word is used in the
extinguished. Obviously, that could not have been
law of donations is confused with "conditions" as
the intention of the parties.
used in the law of obligations. In his annotation of
Article 764 of the Civil Code on Donations, Arturo M. What the majority opinion probably had in mind was
Tolentino, citing the well-known civilists such as that the conditions are resolutory because if they
Castan, Perez Gonzalez and Alguer, and Colin & are not complied with, the rights of the donee as
Capitant, states clearly the context within which the such will be extinguished and the donation will be
term "conditions" is used in the law of donations, to revoked. To my mind, though, it is more accurate to
wit: state that the conditions here are not resolutory
conditions but, for the reasons stated above, are the
obligations imposed by the donor.
Third, I cannot subscribe to the view that the being one involving a contract, may apply. But we
provisions of Article 1197 cannot be applied here. must not lose sight of the fact that it is still a
The conditions/obligations imposed by the donor donation for which this Court itself applied the
herein are subject to a period. I draw this conclusion pertinent law to resolve situations such as this. That
based on our previous ruling which, although made the action to revoke the donation can still prescribe
almost 90 years ago, still finds application in the has been the pronouncement of this Court as early
present case. In Barretto vs. City of Manila, 5 we said as 1926 in the case of Parks which, on this point,
that when the contract of donation, as the one finds relevance in this case. There, this Court said,
involved therein, has no fixed period in which the [that] this action [for the revocation of
condition should be fulfilled, the provisions of what the donation] is prescriptible, there is
is now Article 1197 (then Article 1128) are no doubt. There is no legal provision
applicable and it is the duty of the court to fix a which excludes this class of action
suitable time for its fulfillment. Indeed, from the from the statute of limitations. And
nature and circumstances of the not only this, the law itself recognizes
conditions/obligations of the present donation, it can the prescriptibility of the action for
be inferred that a period was contemplated by the the revocation of a donation,
donor. Don Ramon Lopez could not have intended providing a special period of [four]
his property to remain idle for a long period of time years for the revocation by the
when in fact, he specifically burdened the donee subsequent birth of children [Art. 646,
with the obligation to set up a medical college now Art. 763], and . . . by reason of
therein and thus put his property to good use. There
ingratitude. If no special period is
is a need to fix the duration of the time within which provided for the prescription of the
the conditions imposed are to be fulfilled. action for revocation for
It is also important to fix the duration or period for noncompliance of the conditions of
the performance of the conditions/obligations in the the donation [Art. 647, now Art. 764],
donation in resolving the petitioner's claim that it is because in this respect the
prescription has already barred the present action. I donation is considered onerous and is
disagree once more with the ruling of the majority governed by the law of contracts and
that the action of the petitioners is not barred by the the general rules of prescription. 7
statute of limitations. There is misplaced reliance More recently, in De Luna v. Abrigo, 8 this Court
again on a previous decision of this Court in reiterated the ruling in Parks and said that:
Osmeña vs. Rama. 6 That case does not speak of a
deed of donation as erroneously quoted and cited It is true that under Article 764 of the
by the majority opinion. It speaks of a contract for a New Civil Code, actions for the
sum of money where the debtor herself imposed a revocation of a donation must be
condition which will determine when she will fulfill brought within four (4) years from the
her obligation to pay the creditor, thus, making the non-compliance of the conditions of
fulfillment of her obligation dependent upon her will. the donation. However, it is Our
What we have here, however, is not a contract for a opinion that said article does not
sum of money but a donation where the donee has apply to onerous donations in view of
not imposed any conditions on the fulfillment of its the specific provision of Article 733
obligations. Although it is admitted that the providing that onerous donations are
fulfillment of the conditions/obligations of the governed by the rules on contracts.
present donation may be dependent on the will of In the light of the above, the rules on
the donee as to when it will comply therewith, this contracts and the general rules on
did not arise out of a condition which the donee prescription and not the rules on
itself imposed. It is believed that the donee was not donations are applicable in the case
meant to and does not have absolute control over at bar.
the time within which it will perform its obligations.
It must still do so within a reasonable time. What The law applied in both cases is Article 1144(1). It
that reasonable time is, under the circumstances, refers to the prescription of an action upon a written
for the courts to determine. Thus, the mere fact that contract, which is what the deed of an onerous
there is no time fixed as to when the conditions of donation is. The prescriptive period is ten years
the donation are to be fulfilled does not ipso facto from the time the cause of action accrues, and that
mean that the statute of limitations will not apply is, from the expiration of the time within which the
anymore and the action to revoke the donation donee must comply with the conditions/obligations
becomes imprescriptible. of the donation. As to when this exactly is remains
to be determined, and that is for the courts to do as
Admittedly, the donation now in question is an reposed upon them by Article 1197.
onerous donation and is governed by the law on
contracts (Article 733) and the case of Osmeña, For the reasons expressed above, I register my
dissent. Accordingly, the decision of the Court of
Appeals must be upheld, except its ruling that the
conditions of the donation are resolutory.
Padilla, J., dissents
Footnotes
1 Rollo, p. 23.
2 Rollo, p. 8.
3 City of Manila v. Rizal Park Co., 53
Phil. 515 (1929).
4 Parks v. Province of Tarlac, 49 Phil.
142 (1926).
5 Ibid.
6 Osmeña v. Rama, 14 Phil. 99
(1909).
7 Arturo M. Tolentino, The Civil Code
of the Philippines, 1986 Ed., Vol. IV, p.
42.
8 Concepcion v. People, 74 Phil. 63
(1942).
9 Tiglao v. Manila Railroad Co., 52
O.G., p. 179.
10 Art. 1378, Civil Code.
DAVIDE, JR. J., dissenting:
1 ARTURO M. TOLENTINO,
Commentaries and Jurisprudence on
the Civil Code of the Philippines 535,
vol. 2 [1983].
2 Article 1179.
3 49 Phil. 142 [1926].
4 Id. at 145-146.
5 7 Phil. 416 [1907].
6 14 Phil. 99 [1909].
7 Parks vs. Province of Tarlac, supra
note 3, at 146.
8 181 SCRA 150 [1990].