Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. L-8220 Octobe 2!" #!$$
SALVACION MIRANDA, plaintiff-appellants,
vs.
ESTEBAN FADULLON and spouses DIONISIO SEGARRA and CLEMENCIA N. DE
SEGARRA, %efen%ants-appellees.
Lopez, Duterte, Guillamac, Rubillos, Montecillo and Bernardo for appellees.
Gaudencio R. Juezan for appellant.
MONTEMAYOR, J.
&he pesent appeal 'as fist ta(en to the Cout of Appeals. Late b) esolution of the
sai% cout it 'as cetifie% to us un%e section #*" paa+aph , of the -u%icia) Act of
#!.8" as a/en%e%" the sai% &ibunal bein+ of the opinion that the case in0ol0e% onl)
1uestions of la'. &he facts as /a) be +athee% fo/ the plea%in+s file% b) the paties
/a) be biefl) state% as follo's. 2n the )ea #!3! one Lucio &io 'as the o'ne of a
pacel of lan%" lot #$8!-- of the Banila% Estate" Cebu" un%e &ansfe Cetificate of &itle
No. #0$.8. On 4ece/be 2!" #!3!" a po'e of attone) in fa0o of one Esteban
5a%ullon e6ecute% b) Lucio &io 'as e+istee% in the lan% eco%s of Cebu Cit) an%
annotate% on the sa/e cetificate of title. 2n the )ea #!.," on the sten+th of the sai%
po'e of attone) 5a%ullon to /a(e the epuchase 'ithin this peio%" the 7e+aas
about ten %a)s afte the e6piation of the peio% file% a s'o% petition fo the
consoli%ation of thei o'neship an% e+istee% sai% petition in the office of the Re+iste
of 4ee%s on Ma) #$" #!.,. Appise% of the sale of his popet)" Lucio &io on -une ."
#!.," file% a co/plaint in the Cout of 5ist 2nstance of Cebu" Ci0il Case No. #8# to
annul the sale. 7e0ice of su//ons 'as /a%e upon the 7e+aas on -une #0" #!.,.
Afte heain+ the tial cout en%ee% 8u%+/ent annullin+ the sale. &he 7e+aas
appeale% to the Cout of Appeals un%e CA9G. R. No.,$$0-R an% the sai% &ibunal
affi/e% the appeale% %ecision an% futhe e1uie% the 7e+aas to pa) plaintiff the
easonable entals on the popet) fo/ the filin+ of the action until sai% popet) shall
ha0e been etune% to plaintiff. :pon the %ecision beco/in+ final the coespon%in+
'it of e6ecution 'as issue% %iectin+ the 7heiff to put plaintiff &io in possession of the
lot. 2t tune% out ho'e0e that %uin+ the possession of the popet) b) the 7e+aas
the) ha% into%uce% i/po0e/ents theeon consistin+ of a buil%in+ of thee oo/s an%
a stoa+e oo/" an% one atesian 'ell" 'ith to'e an% 'ate tan( an% a ce/ent
flooin+ co0ein+ about one-thi% of the lot 'hich acco%in+ to the 7e+aas cost the/
P$"300. &he) then file% a /otion 'ith the tial cout clai/in+ that the) 'ee possessos
in +oo% faith of the lot in 1uestion" an% that the) ha% into%uce% the i/po0e/ents
afoe/entione% in +oo% faith an% as(e% the cout to o%e the plaintiff to pa) fo the
sai% i/po0e/ents 0alue% at P$"300 o to allo' the/ to bu) the lan% shoul% the
plaintiff %eci%e not to pa) fo the i/po0e/ents. On Au+ust 28" #!$2" the tial cout
issue% the follo'in+ o%e;
&he attone) fo the plaintiff has been acco%in+l) se0e% 'ith cop) of
%efen%ant<s /otion of -ul) 3#" #!$2" file% thou+h counsel.
As pa)e% fo" 'ithout opposition" the plaintiff is heeb) o%ee% to eithe pa)
the %efen%ant spouses" 4ionisio 7e+aa an% Cle/encia N. 7e+aa
=possessos in +oo% faith> the su/ of P$"300" 0alue of the buil%in+ eecte% on
the lan% in 1uestion" o othe'ise allo' sai% %efen%ants to puchase the
afoe/entione% lot.
&he plaintiff file% a /otion fo econsi%eation clai/in+ that the 7e+aas 'ee
possessos an% buil%es in ba% faith an% so 'ee not entitle% to ei/buse/ent fo the
0alue of the i/po0e/ents? that the eason he =plaintiff> %i% not file an opposition to the
/otion of the %efen%ants as(in+ fo ei/buse/ent 'as that he thou+ht that the tial
cout 'as sufficientl) info/e% an% i/pesse% 'ith the ba% faith 'ith 'hich %efen%ants
bou+ht the lan% an% into%uce% i/po0e/ents theeon an% that it 'oul% conse1uentl)
%en) thei /otion? an% in suppot of his /otion fo econsi%eation plaintiff 1uote%
potions of the %ecision of the tial cout an% the Cout of Appeals. :pon the %enial of
his /otion fo econsi%eation" he too( the pesent appeal.
Afte a caeful e0ie' of the eco% 'e a+ee 'ith the plaintiff-appellant. &he tial cout
in its %ecision %eclain+ the sale of the lan% to the %efen%ants null an% 0oi% an%
co//entin+ on the alle+e% +oo% faith of %efen%ants in bu)in+ the popet) sai% the
follo'in+;
&hee ae t'o cicu/stances 'hich see/ to stubbonl) belie the pofesse%
+oo% faith on the pat of the 7e+aas in bu)in+ this popet)? na/el). the
cicu/stances of the po'e-of-attone) appeain+ on the bac( of the title as
of fi0e o si6 )eas pe0ious an% the othe cicu/stances of the co/paati0el)
li/ite% peio% of one /onth +ante% 0en%o 5a%ullon to e%ee/ the popet).
Abo0e all these" is the futhe cicu/stance that the sai% popet) ha% alea%)
been /ot+a+e% in fa0o of the Cebu Mutual Buil%in+ an% Loan Association
b) 0itue of that po'e-of-attone).
@hile the e0i%ence %i% not %isclose a collusion o conspiac) bet'een
5a%ullon an% the 7e+aas" )et" consi%ein+ the shot peio% of one /onth
'ithin 'hich to e%ee/ an% the suoun%in+ cicu/stances" the possibilit) of
such collusion lin+es.
Ob0iousl) thee 'as in this tansaction a pe0ailin+ intention of ailoa%in+ the
popet) into a ne' o'neship as /a) be po0en b) the fact that sai%
puchases file% a s'on petition fo consoli%atin+ thei o'neship bael) ten
%a)s afte the e6piation of thit) %a)s" that is" on Apil #3" #!.," an%
e+istee% 'ith the office of Re+iste of 4ee%s fo Cebu t'el0e %a)s
theeafte" o on Ma) #$" #!.,.
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&he Cout of Appeals in its %ecision affi/in+ that of the tial cout sai%;
&he 7e+aa spouses /aintain that the) ae puchases in +oo% faith. @e 'ill
no' e6a/ine the eco% on this point. &he alle+e% po'e of attone) e6ecute%
b) the late Lucio &io in fa0o of appellant 5a%ullon 'as e+istee% in the lan%
eco% of the Re+iste of 4ee%s of Cebu Citl) an% annotate% at the bac( of
&ansfe Cetificate of &itle No. #0$.8 on 4ece/be 2!" #!3!. On the sa/e
%ate" the %ee% of /ot+a+e in fa0o of the Cebu Mutual Buil%in+ an% Loan
Association 'as annotate% in the sai% &oens title =E6hibits # an% #-B>. &his
encu/bance alone shoul% ha0e been sufficient to put the 7e+aa spouses
upon an in1ui) as to the authoit) of 5a%ullon to sell to the/ the sa/e
popet) si6 )eas late. 5o instance" the 7e+aas coul% ha0e as(e%
the/sel0es this 1uestion; 4i% not the /ot+a+e of P.00 se0e the pupose fo
'hich the po'e of attone) 'as e6ecute%A
&he 7e+aas %i% not e1uie 5a%ullon to po%uce his po'e of attone). @hile
it is tue that sai% po'e of attone) is annotate% at the bac( of the &oens
title of &io" it 'as still incu/bent upon the 7e+aas to ascetain the scope
an% authoit) of 5a%ullon un%e sai% po'e of attone). 5a%ullon e6ecute% the
sale 'ith the i+ht to epuchase 'ithin the e6tao%ina) shot peio% of 30
%a)s. &his cicu/stance" a+ain" shoul% ha0e place% the 7e+aas on thei
+ua%s" (no'in+" as the) %i%" that the) 'ee %ealin+ 'ith an a+ent un%e a
po'e of attone) e6ecute% befoe the 'a. &hese unusual cicu/stances
'oul% see/ to en+en%e in ou /in%s the possibilit) of collusion bet'een the
appellants" to hasten the e+istation of the title of the 7e+aas to the lan% in
%ispute . . .
. . . the tansfe of %o/inion on the popet) in 1uestion to the 7e+aas 'as
null an% 0oi% an% of no effect. &he ne' Cetificate of &oens &itle No. 3!2 on
the popet) no' in the na/e of the 7e+aas is heeb) o%ee% cancelle%
an% that a ne' one issue% in the na/e of Lucio &io an% his 'ife 7al0acion
Mian%a? o%ein+ the 7e+aas to etun the possession of sai% popet) to
plaintiff?
&he %efen%ants 7e+aas ae futhe/oe e1uie% to pa) plaintiff the
easonable entals on the popet) fo/ the filin+ of this action until such ti/e
as the sai% popet) shall ha0e been etune% to plaintiff . . .B
Althou+h neithe the tial cout no the Cout of Appeals %i% e6pessl) sa) an% in so
/an) 'o%s that the %efen%ants-appellees 'ee possessos in ba% faith" fo/ a
ea%in+ of thei %ecisions paticulal) those 'e ha0e 8ust 1uote%" one can lo+icall) infe
that that 'as the conclusion of the t'o couts" o to sa) it /oe /il%l)" that the
%efen%ants 'ee not possessos in +oo% faith. Moeo0e" the 0e) fact that the Cout of
Appeals sentence% the %efen%ants to pa) entals is an in%ication" e0en poof that
%efen%ants 'ee consi%ee% possessos an% buil%es in ba% faith" o at least that the)
'ee not possessos an% buil%es in +oo% faith. A buil%e in +oo% faith /a) not be
e1uie% to pa) entals. Ce has a i+ht to etain the lan% on 'hich he has built in +oo%
faith until he is ei/buse% the e6penses incue% b) hi/. Possibl) he /i+ht be
e1uie% to pa) ental onl) 'hen the o'ne of the lan% chooses not to appopiate the
i/po0e/ent an% e1uies the buil%e in +oo% faith to pa) fo the lan%" but that the
buil%e is un'illin+ o unable to bu) the lan%" an% then the) %eci%e to lea0e thin+s as
the) ae an% assu/e the elation of lesso an% lessee" an% shoul% the) %isa+ee as to
the a/ount of the ental then the) can +o to the cout to fi6 that a/ount. 5uthe/oe"
plaintiff-appellant in he bief =pa+e *> sa)s 'ithout %enial o efutation on the pat of
%efen%ants-appellees that the) =%efen%ants> applie% fo a buil%in+ pe/it to constuct
the i/po0e/ents in 1uestion on 4ece/be ." #!.," an% the pe/it 'as +ante% on
-anua) ##" #!.*" all this about se0en /onths afte the) ecei0e% the su//ons on
-une #0" #!.," /eanin+ to sa) that the i/po0e/ents 'ee into%uce% lon+ afte thei
alle+e% +oo% faith as possessos ha% en%e%.
2n 0ie' of the foe+oin+" the appeale% o%e of Au+ust 28" #!$2 an% the o%e of
Octobe #$" #!$2" %en)in+ plaintiff<s /otion fo econsi%eation ae set asi%e. @ith
costs a+ainst appellees.
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