Case No.

276
G.R. No. L82564 October 13, 1989
IGMIDIO ABANDO and CONSOLACION ABANDO, petitioners, vs. FRANCISCO
LOZADA, MILAGROS LOZADA and THE HONORABLE COURT OF
APPEALS, respondents.
Facts: Petitioners were originally owned three parcels of land which were later acquired
by one Ernesto Pucan through fraudulent acts, among others: making them believe that a
building will be constructed on their land which they too will earn an income from;
letting them sign documents of the purported lease contract where the other copies
presented were actually different.
When the petitioners found out the fraud committed against them, Pucan had already
mortgaged two of the lots. The latter failed to pay the loan and thus, the lots were then
awarded to the respondent spouses Lozada after being the highest bidders.
Thereafter, petitioners filed a suit seeking to restore the said lands under their name, as
well as nullifying the Transfer Certificate Titles issued to respondents. The CFI ruled in
favor of them but to which the CA modified; hence, this petition.
Issue: May the Transfer Certificate Titles, and all the other pertinent documents, be
voided on the ground of fraud?
Ruling: Inasmuch as fraud was employed in the beginning, the Supreme Court ruled in
favor of the respondents. It stated that the latter acquired the lands in good faith, even
verifying the records in the Register of Deeds where said lands were then under Pucans
name. Not enough proof was presented to prove otherwise.
In citing Blondeau and De la Cantera vs. Nano and Vallejo, the Court furthered that
between two innocent persons, one being the mortgagee and the other being the real
owner of the property, the one who should suffer the loss due to fraud is that which who
made it possible.
Hence, the CAs decision was affirmed and the petition was dismissed.