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Jesus Campos and Rosemarie Campos-Bautista vs. Nenita Buevinida Pastrana, Et Al., G.R. No. 175994, December 8, 2009. (2 Division)

This case involves a dispute over possession of a fishpond. The father of the petitioners leased the fishpond but refused to surrender possession after the contract expired. Two cases were filed - one by the father claiming to be an agricultural lessee, and another by the respondents for recovery of the land. The respondents obtained a judgment but could not execute it because the father transferred his properties via sale to the petitioners. The court ruled that (1) an action to declare a contract as non-existent is imprescriptible, so the respondent's claim was not barred by prescription, and (2) a void contract cannot be rescinded since it does not legally exist. It held that the sale contracts between the father

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76 views1 page

Jesus Campos and Rosemarie Campos-Bautista vs. Nenita Buevinida Pastrana, Et Al., G.R. No. 175994, December 8, 2009. (2 Division)

This case involves a dispute over possession of a fishpond. The father of the petitioners leased the fishpond but refused to surrender possession after the contract expired. Two cases were filed - one by the father claiming to be an agricultural lessee, and another by the respondents for recovery of the land. The respondents obtained a judgment but could not execute it because the father transferred his properties via sale to the petitioners. The court ruled that (1) an action to declare a contract as non-existent is imprescriptible, so the respondent's claim was not barred by prescription, and (2) a void contract cannot be rescinded since it does not legally exist. It held that the sale contracts between the father

Uploaded by

nenenenene
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Jesus Campos and Rosemarie Campos-Bautista vs.

Nenita Buevinida Pastrana,


et al., G.R. No. 175994, December 8, 2009. [2nd division]

Facts:
The father of petitioners (Carlito) leased a fishpond from the respondents’ mother. He
refused to surrender possession of a fishpond to the latter’s heirs despite the expiration
of their contract of lease in 1980. Two cases were filed here. One by Carlito in the Special
Agrarian Courts, contending that he was an agricultural lessee. And another, by
respondents, during the pendency of Carlito’s appeal, for recovery of the land with
damages. They obtained a favorable judgment, however, execution had yet to be
obtained since attempts by respondents to levy on Carlito’s properties were effectively
defeated by his transfer via deeds of absolute sale covering all of his properties to the
petitioners.
For their defense, the petitioners raise the validity of the contracts of sale, and
prescription of the respondents action since the second case was only filed after 7 years
since the time of issuing the titles.
Issue:
(1) Can a contract that is null and void give rise to prescription?
(2) Can a void contract be rescinded?
Ruling:
(1) No. Under Article 1410 of the Civil Code, an action or defense for the declaration of
the inexistence of a contract is imprescriptible. Hence, petitioners’ contention that
respondents’ cause of action is already barred by prescription is without legal basis since
the sale of the subject properties are null and void.
(2) No. An action to rescind is founded upon and presupposes the existence of a contract”.
A contract which is null and void is no contract at all and hence could not be the subject
of rescission.
In the instant case, the Deeds of Absolute Sale are fictitious and inexistent for being
absolutely simulated contracts. It is true that the CA cited instances that may constitute
badges of fraud under Article 1387 of the Civil Code on rescissible contracts. But there is
nothing else in the appealed decision to indicate that rescission was contemplated under
the said provision of the Civil Code. The aforementioned badges must have been
considered merely as grounds for holding that the sale is fictitious. Consequently, we find
that the CA properly applied the governing law over the matter under consideration which
is Article 1409 of the Civil Code on void or inexistent contracts.

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