The Supreme Court upheld the lower courts' decisions annulling the original title (OCT) held by Lydia Gaya and subsequent titles held by Fidel Cu and Ceferino Adviento. The Court found fraud in the registration of Gaya's title, as she failed to notify the lawful occupant Miguel Alvarez, depriving him of due process. Adviento was also not a buyer in good faith as he had notice of the ongoing legal dispute over the land. The annulment of Gaya's title necessarily invalidated all later titles tracing back to her fraudulent registration.
The Supreme Court upheld the lower courts' decisions annulling the original title (OCT) held by Lydia Gaya and subsequent titles held by Fidel Cu and Ceferino Adviento. The Court found fraud in the registration of Gaya's title, as she failed to notify the lawful occupant Miguel Alvarez, depriving him of due process. Adviento was also not a buyer in good faith as he had notice of the ongoing legal dispute over the land. The annulment of Gaya's title necessarily invalidated all later titles tracing back to her fraudulent registration.
The Supreme Court upheld the lower courts' decisions annulling the original title (OCT) held by Lydia Gaya and subsequent titles held by Fidel Cu and Ceferino Adviento. The Court found fraud in the registration of Gaya's title, as she failed to notify the lawful occupant Miguel Alvarez, depriving him of due process. Adviento was also not a buyer in good faith as he had notice of the ongoing legal dispute over the land. The annulment of Gaya's title necessarily invalidated all later titles tracing back to her fraudulent registration.
The Supreme Court upheld the lower courts' decisions annulling the original title (OCT) held by Lydia Gaya and subsequent titles held by Fidel Cu and Ceferino Adviento. The Court found fraud in the registration of Gaya's title, as she failed to notify the lawful occupant Miguel Alvarez, depriving him of due process. Adviento was also not a buyer in good faith as he had notice of the ongoing legal dispute over the land. The annulment of Gaya's title necessarily invalidated all later titles tracing back to her fraudulent registration.
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ADVIENTO V ALVAREZ
FACTS:
1. Miguel Alvarez, now represented by his heirs filed a complaint
against Lydia Gaya, Advientos predecessor-in-interest, alleging that: Alvarez was in continuous, exclusive and notorious possession and occupation of land and its buildings The land was originally surveyed and numbered by the Cadastral Survey of Naga. Gaya initiated the subdivision of the said lot without the knowledge of Alvarez. Gaya willfully failed to notify Alvarez of the cadastral proceeding as the lawful occupant and owner. Gaya committed fraud in the obtaining the OCT. 2. Lydia Gayas Answer: Alvarez had no right of ownership. She had been in peaceful and continuous possession as an owner from 1936. She acquired imperfect title to the land which was confirmed on June 1966 by the Cadastaral Court. The case was considered uncontested because she was the only claimant. CFI ordered registration of said property along with the improvements in her and her husbands name resulting the issuance of OCT. Thus her title has become indefeasible and can no longer be reviewed. 3. Subsequently, petitioner Ceferino Adviento filed an Answer in Intervention with Urgent Prayer for Issuance of Preliminary Injunction alleging that he acquired controversial lot against the interest of Alvarez. Adviento traced his title to Fidel Cu who bought the property from Lydia Gaya. He alleged that Alvarez constructed a concrete building, which he discovered was encroaching on his property. Adviento adopted the allegations of Gaya insofar as they contested the ownership of the land. 4. RTCs decision: Annulment of OCT in the name of Lydia Gaya and subsequent titles, in the name of Fidel Cu and in the name of Ceferino Adviento in so far as it covers the land adjacent to plaintiffs land 5. Upon appeal, CA affirmed RTCs decision. 6. Hence, this petition. ISSUE W/N if a title was validly registered, the validity and conclusiveness of the decision resulting in a decree of registration in favor of appellant, the said LRC decision puts to rest whatever issues there may be/ Completeness and determination of title in favor of Lydia Gaya and subsequently to Adviento, the case should have been dismissed and that the decision of RTC and CA in favor of Alvarez should have been dismissed/ W/N admission in the trial court as to the existence of title in her name, said person need not to prove her ownership of the subject lot. HELD: NO. 1. Distinction should be drawn between taking judicial notice of sources, documents and materials without formal proof of the genuineness or authenticity, and taking notice of facts related to such admissions and materials. As the appellate court explained: where the court finds that it is while the source is genuine, the facts therein are not clearly indisputable and should, therefore be subject to proof. The totality of proof adduced by the parties shows that the title of petitioners predecessor-in-interest is bereft of any legal basis. 2. In addition, under Section 21 of Act No. 496 of the LRA (law applicable at that time), the application for registration should contain a notification to all the occupants of the land of all adjoining owners, it shall state what search has been made to find them. In the case at bar, petitioner admitted the lack of the notice to respondents. Lack of notice is a denial of due process to respondents. It is elementary that no person can be denied his property without due process of law. Thus, petitioners argument that CA failed to recognize the regularity and validity and conclusiveness of the owner is without merit. 3. Petitioners argument that the registration decree binds the RTC and CA is without merit. RTC and CA are not bound by the land registration decree especially when it is assailed on the ground of fraud. Under section 38 of Act No. 496, the petitioner must show affirmatively that (1) he has an interest or estate in the land, and (2) he has been deprived of that interest through fraud in the procurement of the decree of registration. The essential facts are to be clearly alleged in the petition; otherwise, the registration court is justified in dismissing the same. In the case at bar, respondents pleaded their interest in the land and the fraud used which defeated such interest. No notice was given to the respondents. The lack of notice was obviously intended by the petitioners predecessor-in- interest to prevent contest on the application. Petitioners predecessor-in-interest falsely attested to the absence of any adverse claim, including the absence of any possession of the land. The purpose of the law in giving aggrieved parties, deprived of land or any interest therein, through fraud in the registration proceedings, the opportunity to review the decree is to insure fair and honest dealing in the registration of land. Thus, relief is granted to a party deprived of his interest in land where the fraud consists in a deliberate misrepresentation that the lots are not contested when in fact they are. Or in willfully misrepresenting that there are no other claims, or in deliberately failing to notify the party entitled to notice, or in inducing him not to oppose an application, or in misrepresenting about the identity of the lot to the true owner by the applicant causing the former to withdraw his opposition. In all these examples the overriding consideration is that the fraudulent scheme of the prevailing litigant prevented a party from having his day in court or from presenting his case. The fraud, therefore, is one that affects and goes into the jurisdiction of the court 4. Thus, when the trial court decided against Lydia Gayas interest, it followed that all the succeeding titles which trace interest to her title were affected. In the case at bar, the trial court found that the issuance of title was illegal. Petitioners claimed right cannot now have more coverage and extent than that from which it originated. Indeed, petitioners purchase of the said land despite the notice of lis pendens and actual knowledge of the pending case would not qualify him as an innocent purchaser for value. It is a settled rule that a purchaser of real estate with knowledge of any defect or lack of title of the vendor cannot claim that he has acquired title thereto in good faith as against the true owner of the land or interest therein. The same rule applies to one with knowledge of facts which should have put him on inquiry and investigation as might be necessary to acquaint him with the defects in the title of his vendor.