GR 97401 - Castro, Et - Al. vs. CA
GR 97401 - Castro, Et - Al. vs. CA
GR 97401 - Castro, Et - Al. vs. CA
DECISION
CHICO-NAZARIO, J.:
The factual antecedents of this case reveal that Timotea F. Galvez died intestate
on 28 April 1965.[1] She left behind her children Ulpiano and Paz Galvez. Ulpiano,
who died on24 July 1959,[2] predeceased Timotea and was survived by his
son, Porfirio Galvez. Timotea left a parcel of land situated at Pagdaraoan, San
Fernando, La Union, covered by Tax Declaration No. 39645[3] and more
particularly described as follows:
On 12 May 1994, Porfirio Galvez filed Civil Case No. 4895 before the RTC,
Branch 26, of San Fernando, La Union, for Legal Redemption with Damages and
Cancellation of Documents[13] against Paz Galvez and Carlos Tam. The Complaint
was later amended to implead as additional defendant, Tycoon Properties,
Inc.[14] When Tycoon Properties, Inc. filed its Answer, it also filed a cross-claim
against Carlos Tam. In a decision[15] dated 15 December 1999, the trial court held:
2. declaring null and void the Deed of Absolute Sale over the
property originally covered by Tax Declaration No. 39645
executed by PAZ GALVEZ in favor of CARLOS TAM;
3. the Original Certificate of Title No. 0-2602, in the name of
CARLOS TAM be considered cancelled;
Petitioners Paz Galvez, Carlos Tam and Tycoon Properties, Inc. appealed the
decision to the Court of Appeals.[17] In a decision of the Court of Appeals dated 28
August 2002,[18] the appellate court resolved to affirm the decision of the trial
court. Petitioners filed a Motion for Reconsideration which was denied in a
resolution dated 14 April 2003.[19]
Not contented with the decision of the Court of Appeals, petitioners are now before
this Court via Petition for Review on Certiorari under Rule 45 of the Rules of
Court.
Petitioners Carlos Tam and Tycoon Properties, Inc. separately filed their
Memorandum[20] but raised the same issues to wit:
I
II
III
In assailing the decisions of the trial and appellate courts, petitioners cite Article
1451[22] of the Civil Code and claim that an implied or constructive trust which
prescribes in ten years, was established between Paz Galvez and Porfirio Galvez. It
is petitioners unflinching stand that the implied trust was repudiated when
Paz Galvez executed an Affidavit of Self-Adjudication on 4 May 1970, registered
the same before the Register of Deeds of La Union on 4 June 1970 and secured a
new tax declaration in her name. From 4 May 1970to the time the complaint was
filed on 12 May 1994, 24 years have passed, hence, the action is clearly barred
both by prescription and laches.
For title to prescribe in favor of a co-owner there must be a clear showing that he
has repudiated the claims of the other co-owners and the latter has been
categorically advised of the exclusive claim he is making to the property in
question. The rule requires a clear repudiation of the co-ownership duly
communicated to the other co-owners.[27] It is only when such unequivocal notice
has been given that the period of prescription will begin to run against the other co-
owners and ultimately divest them of their own title if they do not seasonably
defend it.[28]
To sustain a plea of prescription, it must always clearly appear that one who was
originally a joint owner has repudiated the claims of his co-owners, and that his co-
owners were apprised or should have been apprised of his claim of adverse and
exclusive ownership before the alleged prescriptive period began to run.[29]
Acts which may be considered adverse to strangers may not be considered adverse
insofar as co-owners are concerned. Thus, Salvador v. Court of Appeals reiterated
what acts constitute proof of exclusive ownership amounting to repudiation,
emphasizing that the act must be borne out of clear and convincing evidence of
acts of possession which unequivocably amounts to an ouster or deprivation of the
right of the other co-owner. The case of Pangan v. Court of Appeals[32] enumerated
the following as constituting acts of repudiation:
The issuance of the certificate of title would constitute an open and clear
repudiation of any trust, and the lapse of more than 20 years, open and adverse
possession as owner would certainly suffice to vest title by prescription.
The prescriptive period may only be counted from the time petitioners repudiated
the trust relation in 1955 upon the filing of the complaint for recovery of
possession against private respondents so that the counterclaim of the private
respondents contained in their amended answer wherein they asserted absolute
ownership of the disputed realty by reason of the continuous and adverse
possession of the same is well within the 10-year prescriptive period.
In this case, we find that Paz Galvez effected no clear and evident repudiation of
the co-ownership. The execution of the affidavit of self-adjudication does not
constitute such sufficient act of repudiation as contemplated under the law as to
effectively exclude Porfirio Galvez from the property. This Court has repeatedly
expressed its disapproval over the obvious bad faith of a co-heir feigning sole
ownership of the property to the exclusion of the other heirs essentially stating that
one who acts in bad faith should not be permitted to profit from it to the detriment
of others. In the cases of Adille[33] and Pangan[34] where, as in this case, a co-heir
was excluded from his legal share by the other co-heir who represented himself as
the only heir, this Court held that the act of exclusion does not constitute
repudiation.
The pertinent provisions of the Civil Code on legal redemption are as follows:
ART. 1619. Legal redemption is the right to be subrogated, upon the same terms and conditions
stipulated in the contract, in the place of one who acquires a thing by purchase
or dation in payment, or by any other transaction whereby ownership is transmitted by
onerous title.
ART. 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.
The purpose of Article 1067 (of the old Civil Code, now Article 1088 of the
present Civil Code) is to keep strangers to the family out of a joint ownership, if,
as is often the case, the presence of outsiders be undesirable and the other heir or
heirs be willing and in a position to repurchase the share sold (De Jesus
vs. Manlapus, 81 Phil. 144). While there should be no question that an heir may
dispose his right before partition (Rivero vs. Serrano [CA] 46 O.G.
642; Wenceslao vs. Calimon, 46 Phil. 906; Hernaez vs. Hernaez, 32 Phil. 214), a
co-heir would have had to pay only the price for which the vendee acquired it
(Hernaez vs. Hernaez, Ibid.).
Legal redemption is in the nature of a privilege created by law partly for reasons
of public policy and partly for the benefit and convenience of the redemptioner, to
afford him a way out of what might be a disagreeable or [an] inconvenient
association into which he has been thrust. (10 Manresa, 4th Ed., 317.) It is
intended to minimize co-ownership. The law grants a co-owner the exercise of the
said right of redemption when the shares of the other owners are sold to a third
person.
The rule on redemption is liberally construed in favor of the original owner of the
property and the policy of the law is to aid rather than defeat him in the exercise of
his right of redemption.[41]
Thus, petitioners cannot be accommodated in this respect and we agree with the
trial court when it held:
The provision of Art. 1088 of the Civil Code of the Philippines is very clear on
the matter.
Art. 1088, provides: Should any of the heirs sell his hereditary
rights to a stranger before the partition, any or all the co-heirs may
be subrogated to the rights of the purchaser by reimbursing him for
the price of the sale, provided they do so within the period of one
(1) month from the time they were notified in writing of the sale by
the vendor.
There was no written notice sent to Porfirio Galvez by Paz Galvez when she sold
her share over the land to Carlos Tam. Porfirio Galvez only discovered on May
12, 1994 that the land was sold to Carlos Tam. Art. 1620, Civil Code of
the Philippines, provides:
As to petitioners Carlos Tam and Tycoon Properties, Inc.s claim that they are
buyers in good faith, same fails to persuade.
A purchaser in good faith and for value is one who buys the property without
notice that some other person has a right to or interest in such property and pays its
fair price before he has notice of the adverse claims and interest of another person
in the same property. So it is that the honesty of intention which constitutes good
faith implies a freedom from knowledge of circumstances which ought to put a
person on inquiry.[43]
Suffice it to state that both the trial and appellate courts found otherwise as Tam
did not exert efforts to determine the previous ownership of the property in
question[44] and relied only on the tax declarations in the name of Paz Galvez.[45] It
must be noted that Carlos Tam received a copy of the summons and the complaint
on 22 September 1994.This notwithstanding, he sold the property to Tycoon
Properties, Inc. on 27 September 1994. Significantly, Carlos Tam is also an owner
of Tycoon Properties, Inc. to the extent of 45%.[46] A notice of lis pendens dated 8
July 1997 filed with the Registry of Deeds of the Province of La Union was
inscribed on TCT No. T- 40390.[47] Despite the inscription, Tycoon Properties, Inc.
mortgaged the land to Far East Bank and Trust Company for the sum
of P11,172,600.[48] All these attendant circumstances negate petitioners claim of
good faith.
MINITA V. CHICO-NAZARIO
Associate Justice
WE CONCUR:
ARTEMIO V. PANGANIBAN
Chief Justice
Chairperson
CERTIFICATION
ARTEMIO V. PANGANIBAN
Chief Justice
Petitioners proceed to describe when the period is reckoned and state that this
occurs (1) when the trustee has performed unequivocal acts of repudiation
amounting to an ouster of the cestui que trust; (2) such positive acts of
repudiation have been made known to the cestui que trust, and (3) the
evidence thereon is clear and positive.
Presidential Decree No. 1529, known as the Property Registration Decree, Section
113 provides:
(a) the Register of Deeds for each province or city shall keep a Primary Entry
book and a Registration book. The Primary Entry Book shall contain,
among other particulars, the entry number, the names of the parties, the
nature of the document, the date, hour and minute it was presented and
received. The recording of the deed and other instruments relating to
unregistered lands shall be effected by way of annotation onthe space
provided therefor in the Registration Book, after the same shall have been
entered in the Primary Entry Book.
(b) If, on the face of the instrument, it appears that it is sufficient in law, the
Register of Deeds shall forthwith record the instrument in the manner
provided herein. In case the Register of Deeds refuses its admission to
record, said official shall advise hte party in interest in writing of the
ground or grounds for his refusal, and the latter may appeal the matter to
the Commissioner of Land Registration in accordance with the provisions
of Section 117 of this Decree. It shall be understood that any recording
made under this section shall be without prejudice to a third party with a
better right.
(c) After recording on the Record Book, the Register of Deeds shall endorse,
among other things, upon the original of the recorded instruments, the file
number and the date as well as the hour and minute when the document
was received for recording as shown in the primary entry book, returning
to the registrant or person in interest the duplicate of the instrument, with
appropriate annotation, certifying that he has recorded the instrument after
reserving one copy thereof to be furnished the provincial or city assessor
as required by existing law.
(d) Tax sale, attachment and levy, notice of lis pendens, adverse claim and other
instruments in the nature of involuntary dealings with respect to
unregistered lands, if made in the form sufficient in law, shall likewise be
admissible to record under this section.
(e) For the services to be rendered by the Register of Deeds under this section, he
shall collect the same amount of fees prescribed for similar services for the
registration of deeds or instruments concerning registered lands.[49]
In the same manner, the citation by petitioner Tycoon of the case of Gonzales v.
Intermediate Appellate Court,[52] and the case of Vda. De Esconde v. Court
of Appeals,[53] we find inapplicable as well, as the property involved therein
is registered under the Torrens System.
[1]
Exhibits for the plaintiff, Exhibit C, p. 3.
[2]
Id., Exhibit D, p. 4.
[3]
Id., Exhibit A, p. 1.
[4]
Rollo, p. 67.
[5]
Amended Complaint, p. 3; Records, p. 43.
[6]
Annex A, Records, p. 7.
[7]
Exhibits for the plaintiff, Exhibit F, p. 6.
[8]
Id., Exhibit G, p. 7.
[9]
Id., Exhibit H, p. 8.
[10]
Id., Exhibit J, p. 10.
[11]
Exhibits for the defendant, Exhibit 2, p. 3.
[12]
Exhibits for the plaintiff, Exhibit K, p. 12.
[13]
Records, pp. 1-6.
[14]
Records, pp. 115-121.
[15]
Penned by Judge Alfredo A. Cajigal.
[16]
Rollo, pp. 45-46.
[17]
Docketed as CA-G.R. CV No. 66786.
[18]
Rollo, pp. 45-54, penned by Associate Justice Eliezer R. De Los Santos with Acting Presiding Justice Cancio C.
Garcia and Associate Justice Marina L. Buzon, concurring.
[19]
Rollo, p. 140.
[20]
In view of the Certification by the Office of the Civil Registrar of San Fernando La Union of the death of
Paz Galvez on 5 May 2002, this Court, in a resolution dated 28 September 2005 (Rollo, p. 388) noted and
considered as satisfactory the compliance filed by counsel for Tycoon properties regarding its failure to
enter a substitute on behalf of Paz Galvez.
[21]
Memorandum of Tycoon Properties, rollo, pp. 323-324; Memorandum of Carlos Tam, rollo, pp. 350-351.
[22]
Art. 1451. When land passes by succession to any person and he causes the legal title to be put in the name of
another, a trust is established by implication of law for the benefit of the true owner.
[23]
Mariano v. De Vega, G.R. No. L-59974, 9 March 1987, 148 SCRA 342, 345.
[24]
Robles v. Court of Appeals, 384 Phil. 635, 649 (2000).
[25]
396 Phil. 928, 947 (2000).
[26]
G.R. No. L-44546, 29 January 1988, 157 SCRA 455, 461.
[27]
Mariano v. De Vega, supra note 23, p. 346.
[28]
Pangan v. Court of Appeals, G.R. No. L-39299, 18 October 1988, 166 SCRA 375, 382.
[29]
Cortes v. Oliva, 33 Phil. 480, 484 (1916).
[30]
313 Phil. 36, 56-57 (1995).
[31]
G.R. No. 108525, 13 September 1994, 236 SCRA 420, 428-429.
[32]
Supra note 28, pp. 382-383.
[33]
Adille v. Court of Appeals, supra note 26.
[34]
Pangan v. Court of Appeals, supra note 28.
[35]
Jimenez v. Fernandez, G.R. No. 46364, 6 April 1990, 184 SCRA 190, 197, cited in Cometa v. Court of
Appeals, G.R. No. 141855, 06 February 2001, 351 SCRA 294, 310.
[36]
Heirs of Clemente Ermac v. Heirs of Vicente Ermac, 451 Phil. 368, 379 (2003).
[37]
Rollo, pp. 357-358.
[38]
Records, pp. 1-6, 115-121.
[39]
360 Phil. 703, 721 (1998).
[40]
Fernandez v. Sps. Tarun, 440 Phil. 334, 344 (2002).
[41]
Ysmael v. Court of Appeals, 376 Phil. 323, 334 (1999).
[42]
Rollo, pp. 90-91.
[43]
Occea v. Esponilla, G.R. No. 156973, 4 June 2004, 431 SCRA 116, 124.
[44]
CA decision, p. 8; Rollo, p. 52.
[45]
RTC decision, p. 16; Id., p. 82.
[46]
RTC decision, p. 26; Records, p. 342.
[47]
Exhibits for the plaintiff, Exhibit K, p. 12.
[48]
Id., Exhibit K-1, p. 12.
[49]
REGISTRATION OF LAND TITLES AND DEEDS, Antonio H. Noblejas, 1986 Ed, pp. 654-655.
[50]
G.R. No. L-10228, 28 February 1962.
[51]
G.R. No. L-26107, 27 November 1981.
[52]
G.R. No. 66479, 21 November 1991.
[53]
G.R. No. 103635, 01 February 1996.