Professional Documents
Culture Documents
LEONARDO MARIANO, AVELINA TIGUE, LAZARO MARIANO, MERCEDES SAN PEDRO, DIONISIA M. AQUINO, and JOSE N.T.
AQUINO, petitioners,
vs.
HON. COURT OF APPEALS, (Sixteenth Division), GRACE GOSIENGFIAO, assisted by her husband GERMAN GALCOS;
ESTER GOSIENGFIAO, assisted by her husband AMADOR BITONA; FRANCISCO GOSIENGFIAO, JR., NORMA
GOSIENGFIAO, and PINKY ROSE GUENO, respondents.
NOCON, J.:
Before Us is a petition foe review of the decision, dated May 13, 1991 of the Court of Appeals in CA-G.R. CV No. 13122,
entitled Grace Gosiengfiao, et al. v. Leonardo Mariano v. Amparo Gosiengfiao 1 raising as issue the distinction between Article
1088 and Article 1620 of the Civil Code.
2 3
It appears on record that the decedent Francisco Gosiengfiao is the registered owner of a residential lot
located at Ugac Sur, Tuguegarao, Cagayan, particularly described as follows, to wit:
"The eastern portion of Lot 1351, Tuguegarao Cadastre, and after its segregation now
designated as Lot 1351-A, Plan PSD-67391, with an area of 1,1346 square meters."
and covered by Transfer Certificate of Title No. T-2416 recorded in the Register of Deeds of Cagayan.
The lot in question was mortgaged by the decedent to the Rural Bank of Tuguegarao (designated as
Mortgagee bank, for brevity) on several occasions before the last, being on March 9, 1956 and 29, 1958.
On August 15, 1958, Francisco Gosiengfiao died intestate survived by his heirs, namely: Third-Party
Defendants: wife Antonia and Children Amparo, Carlos, Severino and herein plaintiffs-appellants Grace,
Emma, Ester, Francisco, Jr., Norma, Lina (represented by daughter Pinky Rose), and Jacinto.
The loan being unpaid, the lot in dispute was foreclosed by the mortgagee bank and in the foreclosure sale
held on December 27, 1963, the same was awarded to the mortgagee bank as the highest bidder.
On February 7, 1964, third-party defendant Amparo Gosiengfiao-Ibarra redeemed the property by paying the
amount of P1,347.89 and the balance of P423.35 was paid on December 28, 1964 to the mortgagee bank.
On September 10, 1965, Antonia Gosiengfiao on her behalf and that of her minor children Emma, Lina, Norma
together with Carlos and Severino executed a "Deed of Assignment of the Right of Redemption" in favor of
Amparo G. Ibarra appearing in the notarial register of Pedro (Laggui) as Doc. No. 257, Page No. 6, Book No.
8, Series of 1965.
On August 15, 1966, Amparo Gosiengfiao sold the entire property to defendant Leonardo Mariano who
subsequently established residence on the lot subject of this controversy. It appears in the Deed of Sale dated
August 15, 1966 that Amparo, Antonia, Carlos and Severino were signatories thereto.
Sometime in 1982, plaintiff-appellant Grace Gosiengfiao learned of the sale of said property by the third-party
defendants. She went to the Barangay Captain and asked for a confrontation with defendants Leonardo and
Avelina Mariano to present her claim to said property.
On November 27, 1982, no settlement having been reached by the parties, the Barangay captain issued a
certificate to file action.
On December 8, 1982, defendant Leonardo Mariano sold the same property to his children Lazaro F. Mariano
and Dionicia M. Aquino as evidenced by a Deed of Sale notarized by Hilarion L. Aquino as Doc. No. 143, Page
No. 19, Book No. V, Series of 1982.
On December 21, 1982, plaintiffs Grace Gosiengfiao, et al. filed a complaint for "recovery of possession and
legal redemption with damages" against defendants Leonardo and Avelina Mariano. Plaintiffs alleged in their
complaint that as co-heirs and co-owners of the lot in question, they have the right to recover their respective
shares in the same, and property as they did not sell the same, and the right of redemption with regard to the
shares of other co-owners sold to the defendants.
Defendants in their answer alleged that the plaintiffs has (sic) no cause of action against them as the money
used to redeem lot in question was solely from the personal funds of third-party defendant Amparo
Gosiengfiao-Ibarra, who consequently became the sole owner of the said property and thus validly sold the
entire property to the defendants, and the fact that defendants had already sold the said property to the
children, Lazaro Mariano and Dionicia M. Aquino. Defendants further contend that even granting that the
plaintiffs are co-owners with the third-party defendants, their right of redemption had already been barred by
the Statute of Limitations under Article 1144 of the Civil Code, if not by laches. 4
After trial on the merits, the Regional Trial Court of Cagayan, Branch I, rendered a decision dated September 16, 1986, dismissing the
complaint and stating that respondents have no right of ownership or possession over the lot in question. The trial court further said
that when the subject property foreclosed and sold at public auction, the rights of the heirs were reduced to a mere right of
redemption. And when Amparo G. Ibarra redeemed the lot from the Rural Bank on her own behalf and with her own money she
became the sole owner of the property. Respondents' having failed to redeem the property from the bank or from Amparo G. Ibarra,
lost whatever rights the might have on the property. 5
The Court of Appeals in its questioned decision reversed and set aside the ruling of the trial court and declared herein respondents as
co-owners of the property in the question. The Court of Appeals said:
The whole controversy in the case at bar revolves on the question of "whether or not a co-owner who redeems
the whole property with her own personal funds becomes the sole owner of said property and terminates the
existing state of co-ownership."
Admittedly, as the property in question was mortgaged by the decedent, a co-ownership existed among the
heirs during the period given by law to redeem the foreclosed property. Redemption of the whole property by a
co-owner does not vest in him sole ownership over said property but will inure to the benefit of all co-owners.
In other words, it will not end to the existing state of co-ownership. Redemption is not a mode of terminating a
co-ownership.
In the case at bar, it is undisputed and supported by records, that third-party defendant Amparo G. Ibarra
redeemed the propety in dispute within the one year redemption period. Her redemption of the property, even
granting that the money used was from her own personal funds did not make her the exclusive owner of the
mortgaged property owned in common but inured to the benefit of all co-owners. It would have been otherwise
if third-party defendant Amparo G. Ibarra purchased the said property from the mortgagee bank (highest,
bidder in the foreclosure sale) after the redemption period had already expired and after the mortgagee bank
6
had consolidated it title in which case there would no longer be any co-ownership to speak of .
The decision of the Court of Appeals is supported by a long line of case law which states that a redemption by a co-owner within the
7
period prescribed by law inures to the benefit of all the other co-owners.
The main argument of petitioners in the case at bar is that the Court of Appeals incorrectly applied Article 1620 of the Civil Code,
instead of Article 1088 of the same code which governs legal redemption by co-heirs since the lot in question, which forms part of the
intestate estate of the late Francisco Gosiengfiao, was never the subject of partition or distribution among the heirs, thus, private
respondents and third-party defendants had not ceased to be co-heirs.
On that premise, petitioners further contend that the right of legal redemption was not timely exercised by the private respondents,
since Article 1088 prescribes that the same must be done within the period of one month from the time they were notified in writing of
the sale by the vendor.
According to Tolentino, the fine distinction between Article 1088 and Article 1620 is that when the sale consists of an interest in some
particular property or properties of the inheritance, the right redemption that arises in favor of the other co-heirs is that recognized in
Article 1620. On the other hand, if the sale is the hereditary right itself, fully or in part, in the abstract sense, without specifying any
particular object, the right recognized in Article 1088 exists.
8
Petitioners allege that upon the facts and circumstances of the present case, respondents failed to exercise their right of legal
redemption during the period provided by law, citing as authority the case of Conejero, et al., v. Court of Appeals, et al. wherein the
9
Court adopted the principle that the giving of a copy of a deed is equivalent to the notice as required by law in legal redemption.
We do not dispute the principle laid down in the Conejero case. However, the facts in the said case are not four square with the facts
of the present case. In Conejero, redemptioner Enrique Conejero was shown and given a copy of the deed of sale of the subject
property. The Court in that case stated that the furnishing of a copy of the deed was equivalent to the giving of a written notice
required by law. 11
The records of the present petition, however, show no written notice of the sale being given whatsoever to private respondents.
Although, petitioners allege that sometime on October 31, 1982 private respondent, Grace Gosiengfiao was given a copy of the
questioned deed of sale and shown a copy of the document at the Office of the Barangay Captain sometime November 18, 1982, this
was not supported by the evidence presented. On the contrary, respondent, Grace Gosiengfiao, in her testimony, declared as follows:
Q. When you went back to the residence of Atty. Pedro Laggui were you able to see
him?
A. Yes, I did.
A. I asked him about the Deed of Sale which Mrs. Aquino had told me and he also
showed me a Deed of Sale. I went over the Deed of Sale and I asked Atty. Laggui
about this and he mentioned here about the names of the legal heirs. I asked why my
name is not included and I was never informed in writing because I would like to claim
and he told me to better consult my own attorney.
A. Yes, I did.
Q. If shown to you the copy of the Deed of Sale will you be able to identify it?
A. Yes, sir. 11
Thereafter, Grace Gosiengfiao explicitly stated that she was never given a copy of the said Deed of Sale.
Q. Where did Don Mariano, Dr. Mariano and you see each other?
Q. What transpired in the house of the Brgy. Captain when you saw each other there?
A. Brgy. Captain Bassig informed my intention of claiming the lot and I also informed
him about the Deed of Sale that was not signed by me since it is mine it is already sold
and I was informed in writing about it. I am a legal heir and I have also the right to
claim.
Q. And what was the reply of Don Mariano and Dr. Mariano to the information given to
them by Brgy. Captain Bassig regarding your claim?
A. He insisted that the lot is already his because of the Deed of Sale. I asked for the
exact copy so that I could show to him that I did not sign and he said he does not have
a copy. 12
The above testimony was never refuted by Dr. Mariano who was present before Brgy. Captain Bassig.
The requirement of a written notice has long been settled as early as in the case of Castillo v. Samonte, where this Court quoted the
13
Both the letter and spirit of the New Civil Code argue against any attempt to widen the scope of the notice
specified in Article 1088 by including therein any other kind of notice, such as verbal or by registration. If the
intention of the law had been to include verbal notice or any other means of information as sufficient to give the
effect of this notice, then there would have been no necessity or reasons to specify in Article 1088 of the New
Civil Code that the said notice be made in writing for, under the old law, a verbal notice or information was
sufficient.
14
Moreover, petitioners themselves adopted in their argument respondents' allegation In their complaint that sometime on October, 1982
they sought the redemption of the property from spouses Leonardo Mariano and Avelina Tigue, by tendering the repurchase money of
P12,000.00, which the spouses rejected. Consequently, private respondents exercised their right of redemption at the first
15
opportunity they have by tendering the repurchase price to petitioners. The complaint they filed, before the Barangay Captain and
then to the Regional Trial Court was necessary to assert their rights. As we learned in the case of Castillo, supra:
It would seem clear from the above that the reimbursement to the purchaser within the period of one month
from the notice in writing is a requisite or condition precedent to the exercise of the right of legal redemption;
the bringing of an action in court is the remedy to enforce that right in case the purchaser refuses the
redemption. The first must be done within the month-period; the second within the prescriptive period provided
in the Statute of Limitation.16
The ruling in Castillo v. Samonte; supra, was reiterated in the case of Garcia v. Calaliman, where We also discussed the reason for
the requirement of the written notice. We said:
Consistent with aforesaid ruling, in the interpretation of a related provision (Article 1623 of the New Civil Code)
this Court had stressed that written notice is indispensable, actual knowledge of the sale acquired in some
other manners by the redemptioner, notwithstanding. He or she is still entitled to written notice, as exacted by
the code to remove all uncertainty as to the sale, its terms and its validity, and to quiet and doubt that the
alienation is not definitive. The law not having provided for any alternative, the method of notifications remains
exclusive, though the Code does not prescribe any particular form of written notice nor any distinctive method
written notification of redemption (Conejero et al. v. Court of Appeals et al., 16 SCRA 775 [1966];
Etcuban v. Court of Appeals, 148 SCRA 507 [1987]; Cabrera v. Villanueva, G.R. No. 75069, April 15,
1988). (Emphasis ours)
17
We likewise do not find merit in petitioners' position that private respondents could not have validly effected redemption due to their
failure to consign in court the full redemption price after tender thereof was rejected by the petitioners. Consignation is not necessary,
because the tender of payment was not made to discharge an obligation, but to enforce or exercise a right. It has been previously held
that consignation is not required to preserve the right of repurchase as a mere tender of payment is enough on time as a basis for an
action to compel the vendee a retroto resell the property; no subsequent consignation was necessary to entitle private respondents to
such
reconveyance. 18
Premises considered, respondents have not lost their right to redeem, for in the absence of a written notification of the sale by the
vendors, the 30-day period has not even begun to run.
WHEREFORE, the decision of the Court of Appeals is hereby AFFIRMED. Cost against petitioners.
SO ORDERED.
# Footnotes
1 Justice Justo P. Torres, Jr., ponente, Justices Ricardo J. Francisco and Consuelo Ynares-Santiago
concurring.
2 Article 1088. Should any of the heirs sell his hereditary rights to a stranger before the partition, any or all of
the co-heirs may be subrogated to the rights of the purchaser by reimbursing him for the price of the sale,
provided they so within the period of the month from the time they were notified in writing of the sale by the
vendor.
3 Article 1620. A co-owner of a thing may exercise the right of redemption in case the shares of all the other
co-owners or of any of them, are sold to a third person. If the price of the alienation is grossly excessive, the
redemptioner shall pay only a reasonable one.
Should two or more co-owners desire to exercise the right of redemption, they may only do so in proportion to
the share they may respectively have in the thing owned in common.
7 Annie Tan v. C.A., G.R. No. 79899, 172 SCRA 660 (1989); Adille v. C.A., G.R. No. 44546, 157 SCRA 445
(1988); De Guzman v. C.A., G.R. No. 47378, 148 SCRA 75 (1987).
8 Tolentino, Arturo M., Commentaries and Jurisprudence on the Civil Code of the Philippines, Vol. III, pp. 607-
608, citing Manresa at p. 777.
14 Id., at 1028.
16 Ibid., at 1029.
SECOND DIVISION
DECISION
REYES, J.:
The Case
Antecedent Facts
SO ORDERED.[5]
SO ORDERED.[8]
On July 6, 2006, the writ was partially executed with the petitioner
paying the respondents the amount of P46,870.00, representing the
following payments:
IT IS SO ORDERED.[16]
Not satisfied with the trial court's Order, the petitioner filed a
Motion for Reconsideration[17] on September 8, 2006. Consequently, the
RTC issued another Order[18]dated November 8, 2006, holding that
although the Decision dated October 10, 2005 has become final and
executory, it may still consider the Motion for Clarification because the
petitioner simply wanted to clarify the meaning of net profit earned.
[19]
Furthermore, the same Order held:
ALL TOLD, the Court Order dated August 31, 2006 is hereby
ordered set aside. NET PROFIT EARNED, which is subject of
forfeiture in favor of [the] parties' common children, is ordered to be
computed in accordance [with] par. 4 of Article 102 of the Family
Code.[20]
Not satisfied with the trial court's Order, the petitioner filed on
February 27, 2007 this instant Petition for Review under Rule 45 of the
Rules of Court, raising the following:
Issues
II
IV
Our Ruling
In the case at bar, the trial court rendered its Decision on October
10, 2005. The petitioner neither filed a motion for reconsideration nor a
notice of appeal. On December 16, 2005, or after 67 days had lapsed, the
trial court issued an order granting the respondent's motion for execution;
and on February 10, 2006, or after 123 days had lapsed, the trial court
issued a writ of execution. Finally, when the writ had already been
partially executed, the petitioner, on July 7, 2006 or after 270 days had
lapsed, filed his Motion for Clarification on the definition of the net
profits earned. From the foregoing, the petitioner had clearly slept on his
right to question the RTCs Decision dated October 10, 2005. For 270
days, the petitioner never raised a single issue until the decision had
already been partially executed. Thus at the time the petitioner filed his
motion for clarification, the trial courts decision has become final and
executory. A judgment becomes final and executory when the
reglementary period to appeal lapses and no appeal is perfected within
such period. Consequently, no court, not even this Court, can arrogate
unto itself appellate jurisdiction to review a case or modify a judgment
that became final.[28]
A judgment is null and void when the court which rendered it had
no power to grant the relief or no jurisdiction over the subject matter or
over the parties or both.[30] In other words, a court, which does not have
the power to decide a case or that has no jurisdiction over the subject
matter or the parties, will issue a void judgment or a coram non judice.[31]
The questioned judgment does not fall within the purview of a void
judgment. For sure, the trial court has jurisdiction over a case involving
legal separation. Republic Act (R.A.) No. 8369 confers upon an RTC,
designated as the Family Court of a city, the exclusive original
jurisdiction to hear and decide, among others, complaints or petitions
relating to marital status and property relations of the husband and wife or
those living together.[32] The Rule on Legal Separation[33] provides that the
petition [for legal separation] shall be filed in the Family Court of the
province or city where the petitioner or the respondent has been residing
for at least six months prior to the date of filing or in the case of a non-
resident respondent, where he may be found in the Philippines, at the
election of the petitioner.[34] In the instant case, herein respondent Rita is
found to reside in Tungao, Butuan City for more than six months prior to
the date of filing of the petition; thus, the RTC, clearly has jurisdiction
over the respondent's petition below.Furthermore, the RTC also acquired
jurisdiction over the persons of both parties, considering that summons
and a copy of the complaint with its annexes were served upon the herein
petitioner on December 14, 2000 and that the herein petitioner filed his
Answer to the Complaint on January 9, 2001. [35] Thus, without doubt, the
RTC, which has rendered the questioned judgment, has jurisdiction over
the complaint and the persons of the parties.
(a) The finding that the petitioner is the offending spouse since he
cohabited with a woman who is not his wife;[38]
(b) The trial court's grant of the petition for legal separation of
respondent Rita;[39]
(d) The forfeiture of the petitioner's right to any share of the net
profits earned by the conjugal partnership;[41]
(h) The holding that the property relation of the parties is conjugal
partnership of gains and pursuant to Article 116 of the Family Code, all
properties acquired during the marriage, whether acquired by one or both
spouses, is presumed to be conjugal unless the contrary is proved;[45]
(i) The finding that the spouses acquired their real and personal
properties while they were living together;[46]
(k) The list of the remaining properties of the couple which must be
dissolved and liquidated and the fact that respondent Rita was the one
who took charge of the administration of these properties;[48]
(m) The fact that the trial court had no way of knowing whether the
petitioner had separate properties which can satisfy his share for the
support of the family;[50]
(n) The holding that the applicable law in this case is Article
129(7);[51]
(o) The ruling that the remaining properties not subject to any
encumbrance shall therefore be divided equally between the petitioner
and the respondent without prejudice to the children's legitime;[52]
(p) The holding that the petitioner's share of the net profits earned
by the conjugal partnership is forfeited in favor of the common children;
[53]
and
(q) The order to the petitioner to reimburse the respondents the sum
of P19,000.00 as attorney's fees and litigation expenses of P5,000.00.[54]
The petitioner claims that the court a quo is wrong when it applied
Article 129 of the Family Code, instead of Article 102. He confusingly
argues that Article 102 applies because there is no other provision under
the Family Code which defines net profits earned subject of forfeiture as
a result of legal separation.
Offhand, the trial court's Decision dated October 10, 2005 held that
Article 129(7) of the Family Code applies in this case. We agree with the
trial court's holding.
Thus, from the foregoing facts and law, it is clear that what governs
the property relations of the petitioner and of the respondent is conjugal
partnership of gains. And under this property relation, the husband and
the wife place in a common fund the fruits of their separate property and
the income from their work or industry. [56] The husband and wife also
own in common all the property of the conjugal partnership of gains.[57]
Second, since at the time of the dissolution of the petitioner and the
respondent's marriage the operative law is already the Family Code, the
same applies in the instant case and the applicable law in so far as the
liquidation of the conjugal partnership assets and liabilities is concerned
is Article 129 of the Family Code in relation to Article 63(2) of the
Family Code. The latter provision is applicable because according to
Article 256 of the Family Code [t]his Code shall have retroactive effect
insofar as it does not prejudice or impair vested or acquired rights in
accordance with the Civil Code or other law.[58]
Now, the petitioner asks: Was his vested right over half of the
common properties of the conjugal partnership violated when the trial
court forfeited them in favor of his children pursuant to Articles 63(2) and
129 of the Family Code?
Indeed, the petitioner claims that his vested rights have been
impaired, arguing: As earlier adverted to, the petitioner acquired vested
rights over half of the conjugal properties, the same being owned in
common by the spouses. If the provisions of the Family Code are to be
given retroactive application to the point of authorizing the forfeiture of
the petitioner's share in the net remainder of the conjugal partnership
properties, the same impairs his rights acquired prior to the effectivity of
the Family Code.[59] In other words, the petitioner is saying that since the
property relations between the spouses is governed by the regime of
Conjugal Partnership of Gains under the Civil Code, the petitioner
acquired vested rights over half of the properties of the Conjugal
Partnership of Gains, pursuant to Article 143 of the Civil Code, which
provides: All property of the conjugal partnership of gains is owned in
common by the husband and wife.[60] Thus, since he is one of the owners
of the properties covered by the conjugal partnership of gains, he has a
vested right over half of the said properties, even after the promulgation
of the Family Code; and he insisted that no provision under the Family
Code may deprive him of this vested right by virtue of Article 256 of the
Family Code which prohibits retroactive application of the Family Code
when it will prejudice a person's vested right.
From the foregoing, it is clear that while one may not be deprived
of his vested right, he may lose the same if there is due process and such
deprivation is founded in law and jurisprudence.
In the present case, the petitioner was accorded his right to due
process. First, he was well-aware that the respondent prayed in her
complaint that all of the conjugal properties be awarded to her. [65] In fact,
in his Answer, the petitioner prayed that the trial court divide the
community assets between the petitioner and the respondent as
circumstances and evidence warrant after the accounting and inventory of
all the community properties of the parties.[66] Second, when the Decision
dated October 10, 2005 was promulgated, the petitioner never questioned
the trial court's ruling forfeiting what the trial court termed as net profits,
pursuant to Article 129(7) of the Family Code. [67] Thus, the petitioner
cannot claim being deprived of his right to due process.
From the above discussions, Article 129 of the Family Code clearly
applies to the present case since the parties' property relation is governed
by the system of relative community or conjugal partnership of gains and
since the trial court's Decision has attained finality and immutability.
What does Article 102 of the Family Code say? Is the computation
of net profits earned in the conjugal partnership of gains the same with
the computation of net profits earned in the absolute community?
Now, we clarify.
Applying Article 102 of the Family Code, the net profits requires
that we first find the market value of the properties at the time of the
community's dissolution. From the totality of the market value of all the
properties, we subtract the debts and obligations of the absolute
community and this result to the net assets or net remainder of the
properties of the absolute community, from which we deduct the market
value of the properties at the time of marriage, which then results to the
net profits.[75]
(a) According to the trial court's finding of facts, both husband and
wife have no separate properties, thus, the remaining properties in the list
above are all part of the absolute community. And its market value at the
time of the dissolution of the absolute community constitutes the market
value at dissolution.
(b) Thus, when the petitioner and the respondent finally were
legally separated, all the properties which remained will be liable for the
debts and obligations of the community. Such debts and obligations will
be subtracted from the market value at dissolution.
(c) What remains after the debts and obligations have been paid
from the total assets of the absolute community constitutes the net
remainder or net asset. And from such net asset/remainder of the
petitioner and respondent's remaining properties, the market value at the
time of marriage will be subtracted and the resulting totality constitutes
the net profits.
(3) Each spouse shall be reimbursed for the use of his or her
exclusive funds in the acquisition of property or for the value of his or
her exclusive property, the ownership of which has been vested by law
in the conjugal partnership.
In the normal course of events, the following are the steps in the
liquidation of the properties of the spouses:
SO ORDERED.
BIENVENIDO L. REYES
Associate Justice
WE CONCUR:
ANTONIO T. CARPIO
Senior Associate Justice
Chairperson, Second Division
C E R T I FI CAT I O N
I certify that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of
the Courts Division.
ANTONIO T. CARPIO
Senior Associate Justice
(Per Section 12, R.A. 296
The Judiciary Act of 1948, as amended)
[1]
Rollo, pp. 7-35.
[2]
Penned by Judge Eduardo S. Casals; id. at 115-122.
[3]
Id. at 36.
[4]
Id. at 36-57.
[5]
Id. at 56-57.
[6]
A.M. No. 02-11-11-SC.
[7]
Rollo, p. 185.
[8]
Id. at 59.
[9]
Id. at 58-59.
[10]
Id. at 59.
[11]
Id. at 60.
[12]
Id. at 61-69.
[13]
Id. at 70-76.
[14]
Id. at 75.
[15]
Id. at 74-75.
[16]
Id. at 75-76.
[17]
Id. at 77-86.
[18]
Id. at 87-91.
[19]
Id. at 90.
[20]
Id. at 91.
[21]
Id. at 92-97.
[22]
Id. at 115-122.
[23]
Id. at 18.
[24]
Id. at 143-146.
[25]
506 Phil. 613, 629 (2005).
[26]
Id. at 626.
[27]
Id. at 627.
[28]
PCI Leasing and Finance, Inc., v. Milan, G.R. No. 151215, April 5, 2010, 617 SCRA 258.
[29]
Rollo, p. 166.
[30]
See Moreno, Federico B., Philippine Law Dictionary, 3rd ed., 1988, p. 998.
[31]
People v. Judge Navarro, 159 Phil. 863, 874 (1975).
[32]
R.A. No. 8369, Section 5(d).
[33]
A.M. No. 02-11-11-SC.
[34]
Id. at Section 2(c).
[35]
Rollo, p. 38.
[36]
Sps. Edillo v. Sps. Dulpina, G.R. No. 188360, January 21, 2010, 610 SCRA 590, 601-602.
[37]
Lim v. Judge Vianzon, 529 Phil. 472, 483-484 (2006); See also Herrera v. Barretto and Joaquin, 25
Phil. 245, 256 (1913), citing Miller v. Rowan, 251 Ill., 344.
[38]
Rollo, pp. 50-51.
[39]
Id. at 51.
[40]
Id.
[41]
Id. at 51-52.
[42]
Id. at 52 and 56.
[43]
Id. at 52.
[44]
Id.
[45]
Id.
[46]
Id.
[47]
Id. at 52-53.
[48]
Id. at 53.
[49]
Id. at 53-54.
[50]
Id. at 55.
[51]
Id.
[52]
Id. at 56.
[53]
Id. at 57.
[54]
Id.
[55]
CIVIL CODE OF THE PHILIPPINES, Art. 119.
[56]
Id. at Art. 142.
[57]
Id. at Art. 143.
[58]
FAMILY CODE OF THE PHILIPPINES, Art. 256.
[59]
Rollo, p. 29.
[60]
CIVIL CODE OF THE PHILIPPINES, Art. 143.
[61]
G.R. No. 172027, July 29, 2010, 626 SCRA 180, 201.
[62]
Id. at 199.
[63]
The Court consolidated the following cases: ABAKADA Guro Party List Officer Samson S.
Alcantara, et al. v. The Hon. Executive Secretary Eduardo R. Ermita, G.R. No. 168056; Aquilino Q.
Pimentel, Jr., et al. v. Executive Secretary Eduardo R. Ermita, et al., G.R. No. 168207; Association of
Pilipinas Shell Dealers, Inc., et al. v. Cesar V. Purisima, et al., G.R. No. 168461; Francis Joseph G.
Escudero v. Cesar V. Purisima, et al, G.R. No. 168463; and Bataan Governor Enrique T. Garcia, Jr. v.
Hon. Eduardo R. Ermita, et al., G.R. No. 168730.
[64]
Id.
[65]
Rollo, p. 37.
[66]
Id. at 39.
[67]
Id. at 55-57.
[68]
482 Phil. 877-894 (2004).
[69]
Id. at 890-891.
[70]
Rollo, p. 55.
[71]
Malayan Employees Association-FFW v. Malayan Insurance Co., Inc., G.R. No. 181357, February
2, 2010, 611 SCRA 392, 399; Catmon Sales Int'l. Corp. v. Atty. Yngson, Jr., G.R. No. 179761, January
15, 2010, 610 SCRA 236, 245.
[72]
FAMILY CODE OF THE PHILIPPINES, Art. 102(4).
[73]
Id. at Art. 91; See also Tolentino, Arturo, M., COMMENTARIES AND JURISPRUDENCE ON
THE CIVIL CODE OF THE PHILIPPINES: VOLUME ONE WITH THE FAMILY CODE OF THE
PHILIPPINES, 379 (1990).
[74]
FAMILY CODE OF THE PHILIPPINES, Art. 102.
[75]
Tolentino, Arturo, M., COMMENTARIES AND JURISPRUDENCE ON THE CIVIL CODE OF
THE PHILIPPINES: VOLUME ONE WITH THE FAMILY CODE OF THE PHILIPPINES, 401-402
(1990).
[76]
CIVIL CODE OF THE PHILIPPINES, Art. 142.
[77]
Tolentino, Arturo, M., COMMENTARIES AND JURISPRUDENCE ON THE CIVIL CODE OF
THE PHILIPPINES: VOLUME ONE, 365 (1974).
[78]
Tolentino, Arturo, M., COMMENTARIES AND JURISPRUDENCE ON THE CIVIL CODE OF
THE PHILIPPINES: VOLUME ONE WITH THE FAMILY CODE OF THE PHILIPPINES,
472 (1990).
[79]
Rollo, p. 55.
[80]
Id. at 56-57.
[81]
FAMILY CODE OF THE PHILIPPINES, Art. 129(2).
[82]
Id. at Art. 129(3).
[83]
Id. at Art. 129(4).
[84]
Id. at Art. 129(5).
[85]
Rollo, p. 55.
[86]
FAMILY CODE OF THE PHILIPPINES, Art. 129(7).
- versus -
- versus -
June 27, 2012
PHILIPPINE EPISCOPAL
CHURCH, represented by RT.
REV. ROBERT O. LONGID,
Respondent.
x- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
-x
DECISION
Pending action before the Court is G.R. No. 171209, a Petition for
Review on Certiorari under Rule 45 of the Rules of Court assailing the
Decision[2] dated August 26, 2005 and Resolution[3] dated January 18,
2006 of the Court of Appeals in CA-G.R. CV No. 49978.
The Bishop of the Missionary District of the Philippine Islands of
the Protestant Episcopal Church in the United States of America,
otherwise known as the Philippine Episcopal Church (PEC), is a religious
corporation duly organized and registered under the laws of the Republic
of the Philippines, performing mission work in over 500 communities
throughout the country. The PEC was previously comprised of five
dioceses, namely: Episcopal Diocese of Northern Philippines (EDNP),
Episcopal Diocese of Northern Luzon, Episcopal Diocese of North
Central Philippines, Episcopal Diocese of Central Philippines, and
Episcopal Diocese of Southern Philippines. PEC-EDNP, which has
canonical jurisdiction over the provinces of Mountain Province, Ifugao,
Isabela, Quirino, Aurora, and Quezon, exercises missionary, pastoral, and
administrative oversight of St. Mary the Virgin Parish in the municipality
of Sagada, Mountain Province.[4]
Bounded on all sides by public lands. Bearings true. Variation 0o 25E. points referred to marked
on plan Pi-115. Surveyed March 18-19, 1907. Approved November 27, 1907. Containing an area of thirty-
four hectares, twenty-four ares, and sixty centares x x x. [7]
PEC-EDNP asserted that the U.S. Episcopal Church donated the Ken-
geka property, among other real properties, to the PEC by virtue of a
Deed of Donation[8] executed on April 24, 1974. Around the second
quarter of 1989, Ambrosio Decaleng entered and cultivated a portion of
about 1,635 square meters of the Ken-geka property despite the
protestations of PEC-EDNP representatives.[9]
Bounded on the NE., by property of Bartolome Gambican; on the SE., by property of The Domestic and
Foreign Missionary Society of the Protestant Episcopal Church in the United States of America; on the S.,
by property of Nicolas Imperial & Adriano Lizardo (joint owners); and on the NW., by properties of
Nicolas Imperial & Adriano Lizardo (joint owners) and Tomas Moting, Kapiz, Baculong, Bayang, Apaling
& Benito Gawaeng (joint owners).
All points referred to are indicated on the plan and marked on the ground as follows: points 1, 2, 3, 4, 5,
and 7, by P.L.S. cyl. Conc. Mons; and point 6, by X on stone mon.[11]
B) To order [Ambrosio Decaleng and Lopez] to refrain from entering the property of
[PEC-EDNP] subject of this case;
C) To order [Ambrosio Decaleng and Lopez] to vacate the premises of the subject
portions of the aforedescribed land being illegally occupied by them;
D) To order [Ambrosio Decaleng and Lopez] to pay the [PEC-EDNP] the amount
of P20,000.00 as actual damages, P15,000.00 as attorneys fee, plus P500.00 as appearance pay of counsel
every time this case is called for hearing and P10,000.00 as necessary expenses of litigation;
F) To sentence [Ambrosio Decaleng and Lopez] to pay the cost of the suit;
G) Finally [PEC-EDNP] prays for such other measures of reliefs and remedies just and
equitable in the premises.[13]
Ambrosio Decaleng and Lopez filed their Answer [16] on April 27,
1992. They stated in their Answer that Certificate of Title No. 1 was
inaccurate and depicted a parcel of land much bigger than that generally
believed to be owned by PEC-EDNP; that the properties occupied by
Ambrosio Decaleng were outside the properties of PEC-EDNP; that
Ambrosio Decaleng received the property in Ken-geka, and his wife,
Julia Wanay Decaleng, received the property in Ken-gedeng, from their
parents as their inheritance on the occasion of their marriage in
accordance with the local custom of ay-yeng or liw-liwa; that Ambrosio
Decaleng and Julia Wanay Decaleng (spouses Decaleng) and their
predecessors-in-interest had been in possession of the subject properties
continuously, actually, notoriously, publicly, adversely, and in the concept
of an owner, since time immemorial, or at least, certainly for more than
50 years; that the spouses Decaleng had been in peaceful and undisturbed
possession of the subject properties until PEC-EDNP surreptitiously
moved the existing perimeter fence and encroached upon 240 square
meters of their properties; and that Lopez was a mere tenant of the
spouses Decaleng who worked on Portion 2 of the Ken-gedeng
property. Consequently, Ambrosio Decaleng and Lopez sought the
dismissal of the complaint of PEC-EDNP and the payment by PEC-
EDNP in their favor of P50,000.00 as reimbursement of litigation
expenses and attorneys fees, P100,000.00 as moral damages,
and P25,000.00 as exemplary damages.
After trial, the RTC rendered its Decision [24] on January 20,
1995 finding that:
Re that 1,635 square meters lot at Ken-geka (Exhs. C-1 and C-2), the mere supposed xerox
copy of a reputed OCT No. 1 purportedly including the portion within its borders, allegedly registered in
the name of the plaintiff Church (Exh. A), does not reasonably confirm the fact of its absolute ownership
of the said portion (Reyes vs Borbon, 50 Phil. 79). Neither does the purported xerox copy of a putative
deed of donation (Exh. B), sans the original, substantially show that said plaintiff acquired dominion over
that particular parcel in issue via gratuitous grant as a mode of acquiring ownership (Art. 712, Par. 2, NCC;
Paras, Civil Code, Vol. II, 1981 Ed., (b) p. 92). By itself, the plaintiffs survey plans of the premises
coupled with its unpaid tax declarations (Exhs. BB, CC, E, F and G) is insufficient and inc[onc]lusive to
prove ownership ad/or possession of the proponent of the subject area (Acua vs City of Manila, [9] Phil.
225; Dadivas vs Bunayon, 54 Phil. 632). While it appears that the Church is the possessor for almost a
century of the greater part of that tract of land embraced in its survey plan of P1-115 (Exh. C), it cannot be
deemed to be in constructive possession of that portion now in question, considering that said plaintiff
never materially occupied or exercised control over the same and that it has been in the adverse possession
of the Decalengs for quite sometime (Art. 531, NCC; Rosales vs Director of Lands, 51 Phil 502). In effect,
dominion over the portion have not passed to the plaintiff by operation of law by virtue of long and actual
possession as a title or a mode of acquiring ownership (Art. 712, Par. 2, NCC; Nolan v. Jalandoni, 23 Phil.
299).
Anent those two (2) separate parcels at Ken-gedeng (Exhs. D-2, D-3, D-4, D-5), the survey
plans and tax declarations in the name of the plaintiff and predecessors in interest (Exhs. X, DD, G, H, I)
do not by themselves confer dominion of the proponent over the afore-mentioned parcels, albeit the same
are included within the coverage of the documents. To be sure, the Church is the exclusive and continuous
possessor, probably since 1902, of the south-eastern portion of the surveyed area where its building are
erected and the surroundings thereof improved (Exhs. X, X-1 to X-6). This fact in conjunction with its said
survey plans and tax declarations may prove ownership of the plaintiff of the premises mentioned (Alamo
vs Ignacio, L-16434, Feb. 28, 1962). It cannot however be presumed, much less adjudged that the Church
has constructive possession of the subject two separate parcels absent any showing that it materially
occupied, and exercised control over said parcels at any given time in the same manner as it developed the
rest of the portions within the plans and tax declarations. Not to mention the fact that the former lots have
been all along in the adverse possession of the defendants. Hence, by law, the plaintiff Church did not
acquire ownership and/or possession of those disputed lots at Ken-gedeng.
Penultimately, the counterclaim for damages interposed by the defensive party is denied for
lack of merit and on the principle that no penalty should be attached on the right to litigate (Art. 2217,
NCC; Ramos vs. Ramos, 61 SCRA 284)[25]
II. Ordering the plaintiff to pay attorneys fees and litigation expense in the
reasonable sum of P120,000.00; and to pay the costs.[26]
While the case was pending before the Court of Appeals, Atty. Paul
P. Sagayo, Jr. (Sagayo) and Atty. Floyd P. Lalwet (Lalwet) entered their
appearance as counsels for PEC-EDNP on March 28, 1996. In the Notice
of Appearance[28] and subsequent pleadings[29] filed by Attys. Sagayo and
Lalwet, they included the following names as defendants: Simeon
Dapliyan (Dapliyan), Gayagay,[30] Nicolas Imperial (Imperial), Juana
Ullocan (Ullocan), and Mary Tudlong (Tudlong).
(1) Declaring the plaintiff as the true and real owner of the
properties subject of this controversy, namely, the parcel of land
covered by Original Certificate of Title No. 1 and Lot 3 covered by
Survey Plan PSU-118424; and
The case at bar falls under one of the exceptions, as the factual
conclusions of the RTC and the Court of Appeals are in conflict with each
other. Thus, the Court must necessarily return to the evidence on record
and make its own evaluation thereof.
xxxx
In reply to your letter dated August 25, 1993, we regret to inform you
that we have no reconstituted records of pre-war sales application of
the Domestic and Foreign Missionary Society of the Protestant
Episcopal Church in the United States of America, which the basis of
the issuance of alleged Sales Patent No. 14 on February 18, 1915. It
may be informed further that all our pre-war records were burned
and/or destroyed when the Oriente Building where the Bureau of
Lands was then housed was razed by fire during the liberation
of Manila.[63] (Emphasis supplied.)
It might, perhaps, be proper and sufficient to say that when, as far back
as testimony or memory goes, the land has been held by individuals
under a claim of private ownership, it will be presumed to have been
held in the same way from before the Spanish conquest, and never to
have been public land. Certainly in a case like this, if there is doubt or
ambiguity in the Spanish law, we ought to give the applicant the
benefit of the doubt. x x x.
The applicant failed to show that he has title to the lot that may
be confirmed under the Land Registration Act. He failed to show that
he or any of his predecessors in interest had acquired the lot from the
Government, either by purchase or by grant, under the laws, orders and
decrees promulgated by the Spanish Government in the Philippines, or
by possessory information under the Mortgage Law (section 19, Act
496). All lands that were not acquired from the Government, either by
purchase or by grant, belong to the public domain. An exception to
the rule would be any land that should have been in the possession
of an occupant and of his predecessors in interest since time
immemorial, for such possession would justify the presumption
that the land had never been part of the public domain or that it
had been a private property even before the Spanish
conquest. (Carino vs. Insular Government, 212 U.S., 449; 53 Law. ed.,
594.) The applicant does not come under the exception, for the
earliest possession of the lot by his first predecessor in interest
began in 1880.[68] (Emphases supplied.)
SO ORDERED.
WE CONCUR:
ATTESTATION
I attest that the conclusions in the above Decision had been reached in
consultation before the case was assigned to the writer of the opinion of
the Courts Division.
CERTIFICATION
Pursuant to Section 13, Article VIII of the Constitution and the Division
Acting Chairpersons Attestation, I certify that the conclusions in the
above Decision had been reached in consultation before the case was
assigned to the writer of the opinion of the Courts Division.
ANTONIO T. CARPIO
Senior Associate Justice
(Per Section 12, R.A. 296,
The Judiciary Act of 1948, as amended)
[1]
Per January 25, 1994 Order of the RTC, Bontoc, Mt. Province. The heirs are the children of spouses
Ambrosio Decaleng and Julia Wanay Decaleng, namely: Mercedez D. Fonite, Elizabeth D.
Tzoganatous, Esther D. Tongbaban, Nora D. Sumcad, Mary D. Capuyan, Nellie D. Dagacan,
Mariano Decaleng, and Beverly D. Bawing. (Records, p. 190.)
*
Per Raffle dated March 12, 2012.
**
Per Special Order No. 1226 dated May 30, 2012.
***
Per Special Order No. 1227 dated May 30, 2012.
[2]
Rollo (G.R. No. 171209), pp. 54-74; penned by Associate Justice Lucas P. Bersamin (now a member
of this Court) with Associate Justices Andres B. Reyes, Jr. and Celia C. Librea-Leagogo,
concurring.
[3]
Id. at 93-95.
[4]
Id. at 280.
[5]
Records, p. 7; Annex A.
[6]
SEC. 122. Whenever public lands in the Philippine Islands belonging to the Government of the
United States or to the Government of the Philippine Islands are alienated, granted, or
conveyed to persons or to public or private corporations, the same shall be brought forthwith
under the operation of this Act and shall become registered lands. It shall be the duty of the
official issuing the instrument of alienation, grant, or conveyance in behalf of the Government
to cause such instrument, before its delivery to the grantee, to be filed with the register of
deeds for the province where the land lies and to be there registered like other deeds and
conveyances, whereupon a certificate shall be entered as in other cases of registered land, and
an owners duplicate certificate issued to the grantee. The deed, grant, or instrument of
conveyance from the Government to the grantee shall not take effect as a conveyance or bind
the land, but shall operate as a contract between the Government and the grantee and as
evidence of authority to the clerk or register of deeds to make registration. The act of
registration shall be the operative act to convey and affect the lands, and in all cases under this
Act registration shall be made in the office of the register of deeds for the province where the
land lies. The fees for registration shall be paid by the grantee. After due registration and issue
of the certificate and owners duplicate such land shall be registered land for all purposes under
this Act.
[7]
Records, p. 9; Annex B.
[8]
Id. at 8-13.
[9]
Id. at 2.
[10]
Id. at 3.
[11]
Id. at 103.
[12]
Id. at 3-4.
[13]
Id. at 5-6.
[14]
Id. at 26.
[15]
Id. at 27.
[16]
Id. at 33-38.
[17]
Id. at 81.
[18]
Id. at 105.
[19]
Id. at 106.
[20]
Id. at 110-117.
[21]
Id. at 118.
[22]
Id. at 146-147.
[23]
Id. at 121.
[24]
Id. at 241-256.
[25]
Id. at 254-256.
[26]
Id. at 256.
[27]
Id. at 285.
[28]
CA rollo, pp. 12-13.
[29]
Id. at 14-61, 62-64, and 66-68.
[30]
One name only.
[31]
Rollo (G.R. No. 171209), p. 73.
[32]
Id. at 93-95.
[33]
They were those who were included as defendants-appellants when the case was on appeal before
the Court of Appeals.
[34]
Rollo (UDK-13672), pp. 8-9.
[35]
Although 46 petitioners were named in the Petition, only 40 actually signed the same.
[36]
Rollo (UDK-13672), pp. 4-5.
[37]
Id. at 49.
[38]
Id. at 51.
[39]
Rollo (G.R. No. 171209), pp. 5-36.
[40]
Apex Mining Co., Inc. v. Southeast Mindanao Gold Mining Corp., 525 Phil. 436 (2006).
[41]
Id. at 459.
[42]
Evadel Realty and Development Corporation v. Spouses Soriano, 409 Phil. 450, 461 (2001).
[43]
Spouses Hutchison v. Buscas, 498 Phil. 276, 262 (2005).
[44]
Records, p. 16; Annex E.
[45]
Id. at 15; Annex D.
[46]
Testimony of Lorenzo Agagen; TSN, January 12, 1993, pp. 3-7.
[47]
Testimony of Paul Sapaen; TSN, November 9, 1992, p. 28.
[48]
Testimony of Fred Yamashita; TSN, April 29, 1993, pp. 22-23.
[49]
Records, pp. 125-127; Exhibits E, F and G.
[50]
Id. at 128-129; Exhibits H and I.
[51]
Rollo (G.R. No. 171209), pp. 68-70.
[52]
TSN, June 10, 1993, pp. 5-6.
[53]
511 Phil. 162 (2005).
[54]
Id. at 172-173.
[55]
322 Phil. 387 (1996).
[56]
Id. at 401.
[57]
Caraan v. Court of Appeals, supra note 53 at 169-170.
[58]
Collado v. Court of Appeals, 439 Phil. 149, 168 (2002).
[59]
Datu Kiram Sampaco v. Hadji Serad Mingca Lantud, G.R. No. 163551, July 18, 2011, 654 SCRA
36, 54-55.
[60]
S.J. Vda. de Villanueva v. Court of Appeals, 403 Phil. 721, 732 (2001).
[61]
359 Phil. 242 (1998).
[62]
Id. at 257.
[63]
Records, p. 152.
[64]
41 Phil. 935 (1909).
[65]
Id. at 941-942.
[66]
A rough determination based on the ages of the witnesses (who were around 70-80 years old when
they took the witness stand before the RTC in 1993-1994) and their testimonies that they
actually saw the parents of the spouses Decaleng working on the properties.
[67]
75 Phil. 890 (1946).
[68]
Id. at 892.
[69]
Imperfect or incomplete titles to public agricultural lands may be confirmed by judicial legalization
or by administrative legalization (free patent). (Sec. 11 [Commonwealth Act No. 141,
otherwise known as the Public Land Act].)
Sec. 44 of the Public Land Act provides:
Sec. 44. Any natural-born citizen of the Philippines who is not the owner of more
than twelve (12) hectares and who, for at least thirty (30) years prior to the
effectivity of this amendatory Act, has continuously occupied and cultivated,
either by himself or through his predecessors-in-interest a tract or tracts of
agricultural public land subject to disposition, who shall have paid the real
estate tax thereon while the same has not been occupied by any person shall
be entitled, under the provisions of this Chapter, to have a free patent issued
to him for such tract or tracts of such land not to exceed twelve (12)
hectares. (As amended by RA No. 782, and by RA No. 6940, approved
March 28, 1990.)
A member of the national cultural minorities who has continuously occupied and
cultivated, either by himself or through his predecessors-in-interest, a tract
or tracts of land, whether disposable or not since July 4, 1955, shall be
entitled to the right granted in the preceding paragraph of this
section: Provided, That at the time he files his free patent application he is
not the owner of any real property secured or disposable under this
provision of the Public Land Law. (As amended by Rep. Act No. 3872,
approved June 18, 1964.) Emphasis supplied.)
Section 48 of the Public Land Act, as amended by Presidential Decree No. 1073, reads:
Section 48. The following described citizens of the Philippines,
occupying lands of the public domain or claiming to own any such lands or
an interest therein, but whose titles have not been perfected or completed,
may apply to the Court of First Instance of the province where the land is
located for confirmation of their claims and the issuance of a certificate of
title therefor, under the Land Registration Act, to wit:
(a) [Repealed by Presidential Decree No. 1073).
(b) Those who by themselves or through their predecessors in
interest have been in the open, continuous, exclusive, and notorious
possession and occupation of alienable and disposable lands of the public
domain, under a bona fide claim of acquisition or ownership, since June 12,
1945, except when prevented by war or force majeure. These shall be
conclusively presumed to have performed all the conditions essential to a
Government grant and shall be entitled to a certificate of title under the
provisions of this chapter.
(c) Members of the national cultural minorities who by themselves
or through their predecessors-in-interest have been in open, continuous,
exclusive and notorious possession and occupation of lands of alienable
lands of the public domain, under a bona fide claim of ownership shall be
entitled to the rights granted in subsection (b) hereof. (Emphasis supplied.)
SARMIENTO, J.:
In issue herein are property and property rights, a familiar subject of controversy and a wellspring of enormous conflict that
has led not only to protracted legal entanglements but to even more bitter consequences, like strained relationships and even
the forfeiture of lives. It is a question that likewise reflects a tragic commentary on prevailing social and cultural values and
institutions, where, as one observer notes, wealth and its accumulation are the basis of self-fulfillment and where property is
held as sacred as life itself. "It is in the defense of his property," says this modern thinker, that one "will mobilize his deepest
protective devices, and anybody that threatens his possessions will arouse his most passionate enmity." 1
The task of this Court, however, is not to judge the wisdom of values; the burden of reconstructing the social order is shouldered by
the political leadership-and the people themselves.
The parties have come to this Court for relief and accordingly, our responsibility is to give them that relief pursuant to the decree of
law.
The antecedent facts are quoted from the decision appealed from:
2
... [T]he land in question Lot 14694 of Cadastral Survey of Albay located in Legaspi City with an area of some
11,325 sq. m. originally belonged to one Felisa Alzul as her own private property; she married twice in her
lifetime; the first, with one Bernabe Adille, with whom she had as an only child, herein defendant Rustico Adille;
in her second marriage with one Procopio Asejo, her children were herein plaintiffs, — now, sometime in 1939,
said Felisa sold the property in pacto de retro to certain 3rd persons, period of repurchase being 3 years, but
she died in 1942 without being able to redeem and after her death, but during the period of redemption, herein
defendant repurchased, by himself alone, and after that, he executed a deed of extra-judicial partition
representing himself to be the only heir and child of his mother Felisa with the consequence that he was able
to secure title in his name alone also, so that OCT. No. 21137 in the name of his mother was transferred to his
name, that was in 1955; that was why after some efforts of compromise had failed, his half-brothers and
sisters, herein plaintiffs, filed present case for partition with accounting on the position that he was only a
trustee on an implied trust when he redeemed,-and this is the evidence, but as it also turned out that one of
plaintiffs, Emeteria Asejo was occupying a portion, defendant counterclaimed for her to vacate that, —
Well then, after hearing the evidence, trial Judge sustained defendant in his position that he was and became
absolute owner, he was not a trustee, and therefore, dismissed case and also condemned plaintiff occupant,
Emeteria to vacate; it is because of this that plaintiffs have come here and contend that trial court erred in:
III. ... ordering one of the plaintiffs who is in possession of the portion of the property to vacate the land, p. 1
Appellant's brief.
which can be reduced to simple question of whether or not on the basis of evidence and law, judgment appealed from should be
maintained. 3
The respondent Court of appeals reversed the trial Court, and ruled for the plaintiffs-appellants, the private respondents herein. The
4
We required the private respondents to file a comment and thereafter, having given due course to the petition, directed the parties to
file their briefs. Only the petitioner, however, filed a brief, and the private respondents having failed to file one, we declared the case
submitted for decision.
The petition raises a purely legal issue: May a co-owner acquire exclusive ownership over the property held in common?
Essentially, it is the petitioner's contention that the property subject of dispute devolved upon him upon the failure of his co-heirs to join
him in its redemption within the period required by law. He relies on the provisions of Article 1515 of the old Civil Article 1613 of the
present Code, giving the vendee a retro the right to demand redemption of the entire property.
The right of repurchase may be exercised by a co-owner with aspect to his share alone. While the records show that the petitioner
5
redeemed the property in its entirety, shouldering the expenses therefor, that did not make him the owner of all of it. In other words, it
did not put to end the existing state of co-ownership.
Necessary expenses may be incurred by one co-owner, subject to his right to collect reimbursement from the remaining co-
owners. There is no doubt that redemption of property entails a necessary expense. Under the Civil Code:
6
ART. 488. Each co-owner shall have a right to compel the other co-owners to contribute to the expenses of
preservation of the thing or right owned in common and to the taxes. Any one of the latter may exempt himself
from this obligation by renouncing so much of his undivided interest as may be equivalent to his share of the
expenses and taxes. No such waiver shall be made if it is prejudicial to the co-ownership.
The result is that the property remains to be in a condition of co-ownership. While a vendee a retro, under Article 1613 of the Code,
"may not be compelled to consent to a partial redemption," the redemption by one co-heir or co-owner of the property in its totality
does not vest in him ownership over it. Failure on the part of all the co-owners to redeem it entitles the vendee a retro to retain the
property and consolidate title thereto in his name. But the provision does not give to the redeeming co-owner the right to the entire
7
Neither does the fact that the petitioner had succeeded in securing title over the parcel in his name terminate the existing co-
ownership. While his half-brothers and sisters are, as we said, liable to him for reimbursement as and for their shares in redemption
expenses, he cannot claim exclusive right to the property owned in common. Registration of property is not a means of acquiring
ownership. It operates as a mere notice of existing title, that is, if there is one.
The petitioner must then be said to be a trustee of the property on behalf of the private respondents. The Civil Code states:
ART. 1456. If property is acquired through mistake or fraud, the person obtaining it is, by force of law,
considered a trustee of an implied trust for the benefit of the person from whom the property comes.
We agree with the respondent Court of Appeals that fraud attended the registration of the property. The petitioner's pretension that he
was the sole heir to the land in the affidavit of extrajudicial settlement he executed preliminary to the registration thereof betrays a
clear effort on his part to defraud his brothers and sisters and to exercise sole dominion over the property. The aforequoted provision
therefore applies.
It is the view of the respondent Court that the petitioner, in taking over the property, did so either on behalf of his co-heirs, in which
event, he had constituted himself a negotiorum gestor under Article 2144 of the Civil Code, or for his exclusive benefit, in which case,
he is guilty of fraud, and must act as trustee, the private respondents being the beneficiaries, under the Article 1456. The evidence, of
course, points to the second alternative the petitioner having asserted claims of exclusive ownership over the property and having
acted in fraud of his co-heirs. He cannot therefore be said to have assume the mere management of the property abandoned by his
co-heirs, the situation Article 2144 of the Code contemplates. In any case, as the respondent Court itself affirms, the result would be
the same whether it is one or the other. The petitioner would remain liable to the Private respondents, his co-heirs.
This Court is not unaware of the well-established principle that prescription bars any demand on property (owned in common) held by
another (co-owner) following the required number of years. In that event, the party in possession acquires title to the property and the
state of co-ownership is ended . In the case at bar, the property was registered in 1955 by the petitioner, solely in his name, while the
8
claim of the private respondents was presented in 1974. Has prescription then, set in?
We hold in the negative. Prescription, as a mode of terminating a relation of co-ownership, must have been preceded by repudiation
(of the co-ownership). The act of repudiation, in turn is subject to certain conditions: (1) a co-owner repudiates the co-ownership; (2)
such an act of repudiation is clearly made known to the other co-owners; (3) the evidence thereon is clear and conclusive, and (4) he
has been in possession through open, continuous, exclusive, and notorious possession of the property for the period required by law. 9
The instant case shows that the petitioner had not complied with these requisites. We are not convinced that he had repudiated the
co-ownership; on the contrary, he had deliberately kept the private respondents in the dark by feigning sole heirship over the estate
under dispute. He cannot therefore be said to have "made known" his efforts to deny the co-ownership. Moreover, one of the private
respondents, Emeteria Asejo, is occupying a portion of the land up to the present, yet, the petitioner has not taken pains to eject her
therefrom. As a matter of fact, he sought to recover possession of that portion Emeteria is occupying only as a counterclaim, and only
after the private respondents had first sought judicial relief.
It is true that registration under the Torrens system is constructive notice of title, but it has likewise been our holding that the Torrens
10
title does not furnish a shield for fraud. It is therefore no argument to say that the act of registration is equivalent to notice of
11
repudiation, assuming there was one, notwithstanding the long-standing rule that registration operates as a universal notice of title.
For the same reason, we cannot dismiss the private respondents' claims commenced in 1974 over the estate registered in 1955.
While actions to enforce a constructive trust prescribes in ten years, reckoned from the date of the registration of the property, we,
12 13
as we said, are not prepared to count the period from such a date in this case. We note the petitioner's sub rosa efforts to get hold of
the property exclusively for himself beginning with his fraudulent misrepresentation in his unilateral affidavit of extrajudicial settlement
that he is "the only heir and child of his mother Feliza with the consequence that he was able to secure title in his name
also." Accordingly, we hold that the right of the private respondents commenced from the time they actually discovered the
14
petitioner's act of defraudation. According to the respondent Court of Appeals, they "came to know [of it] apparently only during the
15
Moreover, and as a rule, prescription is an affirmative defense that must be pleaded either in a motion to dismiss or in the answer
otherwise it is deemed waived, and here, the petitioner never raised that defense. There are recognized exceptions to this rule, but
17 18
WHEREFORE, there being no reversible error committed by the respondent Court of Appeals, the petition is DENIED. The Decision
sought to be reviewed is hereby AFFIRMED in toto. No pronouncement as to costs.
SO ORDERED,
Footnotes
2 Gatmaitan, Magno, Acting Pres. J.; Domondon, Sixto and Reyes, Samuel, JJ., Concurring.
3 Rollo, 14-15.
4 Solidum, Arsenic, Presiding Judge, Court of First Instance of Albay Civil Case no, 5029.
8 The modes of terminating a co-ownership other than by prescription are partition (CIVIL CODE, arts. 494;
1079, 1082), merger or consolidation, and loss of the thing (3 Manresa 486).
9 Santos v. Heirs of Crisostomo, 41 Phil. 3342 (1921); Bargayo v. Camumot, 40 Phil. 857 (1920).
12 Supra.
13 Gerona v. De Guzman, No. L-19060, May 29, 1964, 11 SCRA 153 (1964).
17 RULES OF COURT, Rule 9, sec. 2. A party need not plead the statute of limitations in a responsive
pleading (or motion to dismiss) where the complaint itself shows that the claims have prescribed [Ferrer v.
Ericta, No. L-41767, August 23, 1978, 84 SCRA 705 (1978)]. Likewise, it has been held that where the
defendant had no way of knowing that the claim advanced by the plaintiff had prescribed, his failure to invoke
the statute (in his answer or motion to dismiss) does not constitute a waiver of such a defense [Guanzo v.
Ramirez, 32 Phil. 492 (1914)]. In another case, we said that prescription need not be pleaded specifically in an
answer where the evidence itself shows that prescription bars the plaintiff's claims [Philippine National Bank v.
Perez, No. L-20412, February 28, 1966, 16 SCRA 270 (1966); see also Chua Lanko v. Dioso, 97 [Phil. 821
(1955); Philippine National Bank v. Pacific Commission House, No. L-22675, March 28, 1969, 27 SCRA 766
(1969)].