Tarlac State University

School of Law

POSITION PAPER

on

Alternative Dispute Resolution

on the Topic of :

Katarungang Pambarangay

Agreements

By Reymond Jude P. Pagco

Facts of the case:

The case at hand involves a parcel of land inherited by Juan Dela Cruz

from his father, Pedro, who in turn acquired the same from his father, Casimiro

as evidence by a deed of sale. The subject property is registered under Pedro’s

name.

However, upon Pedro’s death, his siblings – Maria and Ana, alleged that

the subject property belonged to their father, and that they have rights over the

same as heirs.

When the parties brought the matter to the barangay for a conciliation,

they agreed to enter into an amicable settlement. In setting the dispute, the

parties agreed to divide the property into two, the other half belongs to Juan,

and the other half to Pedro’s siblings.

Maria and Ana immediately sought to enforce the agreement claiming

that the same was signed and entered into voluntarily by the parties, and that

the same was not repudiated, on the other hand, Juan refused to abide by the

agreement claiming that the subject property was acquired by his father

through a deed of sale, and as an heir, he has acquired the ownership of the

property by virtue of succession.

Issue:
 Whether or not Juan can be compelled to abide the compromise

agreement entered with his father’s siblings in the Katarungang

Pambarangay?

Opinion:

Indeed in this case, Juan is not liable for his refusal to not abide with the

compromise agreement.

Let us expound the concept of a compromise agreement. The New Civil

Code of the Philippines defines a compromise agreement as follows:

“Art. 20281. A compromise is a contract whereby the parties, by making

reciprocal concessions, avoid litigation or put an end to one already commenced.”

The very purpose of a compromise agreement is to avoid litigation in

court, whereby the adverse parties settle their differences amicably without

court intervention, or to stop one that has already started. If a compromise

agreement has already been concluded and one of the parties thereto refused to

comply with his/her obligation as may be provided therein, the other party may

1
Article 2028 of the New Civil Code of the Philippines
opt either to disregard the agreement and seek recourse in court or to execute

the stipulation in the contract that has already been agreed upon.2

Now, The Article 20393 of the New Civil Code of the Philippines provides

for annulment of the compromise:

Article 2039.

When the parties compromise generally on all differences which they might

have with each other, the discovery of documents referring to one or more but not

to all of the questions settled shall not itself be a cause for annulment or rescission

of the compromise, unless said documents have been concealed by one of the

parties.

But the compromise may be annulled or rescinded if it refers only to one

thing to which one of the parties has no right, as shown by the newly-discovered

documents.

2
https://www.manilatimes.net/compromise-agreement-can-be-rescinded-or-litigated-as-aggrieved-party-
wishes/165165/

3
Article 2039 of the New Civil Code of the Philippines
 The second paragraph of sec. 2039 expressly provides if it was shown in

the newly discovered documents that one of the parties have no right over the

subject of the compromise.

In the case at hand, the newly discovered document is a deed of sale

between Casimiro Dela Cruz and Pedro Dela Cruz. As evidenced by the deed

of sale, Maria and Ana therefore have no right regarding the property in

question.
 Is the deed of sale between Pedro and Casimiro valid?

A son may buy the property of his parents. The Civil Code enumerates

those who cannot participate in a sale.

These are:

(1) Guardians, who cannot acquire property under his guardianship;

(2) Agents, who cannot acquire property whose administration or sale

may have been entrusted to him, unless the principal consents to the sale;

(3) Executors and administrators, who cannot acquire property of the

estate under their administration;

(4) Public officers and employees, who cannot acquire property of the

estate entrusted to them; and

 (5) Justices, judges, prosecuting attorneys, clerks of courts, and other

employees connected with the administration of justice, who cannot acquire

property and rights in litigation levied upon an execution before the court in

their respective jurisdiction; and

(6) others, who are specifically prohibited by law (Article 1491, Civil

Code). As long as a person is not one of those enumerated above, and therefore,

as a son which is not enumerated above, you buy the property of your parents.4

The consent of your siblings are not required in the sale. Before the time

of death, the parent has full right to do whatever he please with the property

including disposing it. So yes, the deed of sale between Casimiro and Pedro is

Valid.

4
Article 1491, Civil Code
 Can Maria and Ana still go after the property in question?

You and your siblings obtain interest in your parents’ properties only at

the time of their death5.

Art. 774. Succession is a mode of acquisition by virtue of which the property,

rights and obligations to the extent of the value of the inheritance, of a person are

transmitted through his death to another or others either by his will or by operation

of law.

Before that, your parents can do anything with their properties.

A sale, as defined by our laws, is a contract where one party is obliged to

transfer ownership and deliver a determinate thing, and the other party is

obliged to pay for the thing for a certain price, in money or its equivalent6.

5
Article 774, Civil Code
6
Article 1458, Civil Code
 A sale is basically an exchange of one thing for another. In this case, a

piece of property will be exchanged for money.

Art. 1458.

By the contract of sale one of the contracting parties obligates himself to

transfer the ownership and to deliver a determinate thing, and the other to pay

therefor a price certain in money or its equivalent.

A contract of sale may be absolute or conditional.

The only situation where a sibling may contest their right over the

property in such case if the sale was partly done as donation.7

Art. 1061.

Every compulsory heir, who succeeds with other compulsory heirs, must

bring into the mass of the estate any property or right which he may have received

from the decedent, during the lifetime of the latter, by way of donation, or any

other gratuitous title, in order that it may be computed in the determination of the

legitime of each heir, and in the account of the partition.

7
Article 1061,Civil Code
 In this case, there was no donation involved, therefore, with the siblings

Maria and Ana having no right over the property, Article 2039 of the New Civil

Code, therefore, can be invoked to annul or rescind the compromised

agreement.
 Conclusion:

Maria and Ana Dela Cruz have no right over the property.

According to the second paragraph of article 2039 of the civil code, such

situation give rise for the rescission of the compromise agreement between them

and Juan.

In regards therefore of the case, Juan Dela Cruz cannot be compelled to

transfer the half of the property sought by Ana and Maria Dela Cruz as by

virtue of article 774 of the Civil Code of the Philippines, as heir of Pedro Dela

Cruz who have bought the property to Casimiro Dela Cruz evidenced by a deed

of sale, Juan have the sole right as the heir over the property.