Neri vs Heirs of Hadji Yusop Uy GR No 194366 10 October 2012
FACTS
This case is a petition for review on certiorari by petitioners:
Napoleon, Alicia, Visminda, Rosa, Douglas, Eutropia, and Victoria
seeking to reverse and set aside the Decision of the CA which
annulled the Decision of the RTC of Davao del Norte, and entered
a new one dismissing Ps complaint for annulment of sale and
damages against herein respondent.
During the lifetime of Ps mother, Anunciacion, she and her 2nd
husband, Enrique, acquired several homestead properties. When
Anunciacion died, however, Enrique in his personal capacity and
as natural guardian of his minor children Rosa and Douglas,
together with, Napoleon, Alicia and Visminda executed an Extra-
Judicial Settlement of the Estate with Absolute Deed of Sale
(1979) adjudicating among themselves the said homestead
properties, and thereafter, sold the properties to the late spouses
Uy for a consideration of 80,000.
On 1996, the children of Enrique filed a complaint for annulment
of the said sale against spouses Uy, assailing the validity of the
sale for having been sold within the prohibited period. And, also,
for having been executed without the consent or approval of
Eutropia, Victoria, Rosa and Douglas; thus, depriving the latter
siblings of their legitime.
Uy countered that the sale took place beyond the 5 year
prohibitory period from the issuance of the homestead patents.
They also denied that Eutropia and Victoria were excluded from
the Extra-judicial settlement and sale of the subject properties,
and interposed further the defense of prescription and laches.
RTC rendered a Decision annulling the Extra-judicial settlement of
estate with Absolute Deed of Sale. It ruled that the sale is void
because Eutropia and Victoria were deprived of their hereditary
rights and that Enrique had no judicial authority to sell the shares
of his minor children, Rosa and Douglas.
ISSUE RULING
Whether No, as to the shares of the minor children because as a natural guardian, he is
Enrique, merely clothed with powers of administration.
as
guardian Doctrine: Parents should apply for judicial guardianship in order for them to
of his sell properties of their children.
children
and co- *Even the parents of their minor children are bound to post bond.*
owner
(with his With respect to Rosa and Douglas who were minors at the time of the
children), execution of the settlement and sale, their NATURAL GUARDIAN and father,
sell their Enrique, represented them in the transaction. However, on the basis of the
co- laws prevailing at that time, Enrique was merely clothed with POWERS OF
owned ADMINISTRATION and bereft of any authority to dispose of their 2/16 shares in
property the estate of their mother, Anunciacion.
?
Power of dominion, is granted by law only to a JUDICIAL GUARDIAN of the
wards property and even then only with courts prior approval secured in
accordance with the proceedings set forth by the Rules.
Exception: RATIFICATION
Consequently, the disputed sale entered into by Enrique in behalf of his minor
children without the proper judicial authority, unless ratified by them upon
reaching the age of majority, is unenforceable in accordance with Art. 1317
and 1403(1) of the Civil Code.
Records, however, show that Rosa had ratified the extrajudicial settlement of
the estate with absolute deed of sale. The same, however, is not true with
respect to Douglas for lack of evidence showing ratification.
THEREFORE, the extrajudicial settlement with sale is invalid and not binding
on Eutropia, Victoria and Douglas. Consequently, spouses Uy or their
substituted heirs became pro indiviso co-owners of the homestead properties
with Eutropia, Victoria and Douglas, who retained title to their respective
shares.
Neri vs Heirs of Hadji Yusop Uy GR No 194366 10 October 2012

On appeal, however, CA reserved and set aside RTC decision.

Hence this appeal.