Land Title and Deeds
Land Title and Deeds
Non-registrable Properties
Facts:
Petitioner Julian Santulan and Antonio Lusin who have been
succeeded by their heirs were rival claimants with respect to the lease of
a parcel of foreshore land of public domain with an area of about 4 ½
hectares located at Barrio Kaingin, Kawit Cavite. The Petitioner
Santulan surveyed the land on December 5, 1942 and filed an
application on Dec. 29, 1942 to lease for five (5) years for agricultural
purposes an area of 36, 120 sq. meters and including the application for
revocable permit to occupy the said land for planting of Bakawan which
later develop to fishpond seven years later after acquiring ordinary
fishpond permit from BFAR. On the other hand, private respondent
Lusin was reported and was being summoned that he was illegally
entered the area covered by the petitioners fishpond permit and was
refrain from introducing improvements.
Ruling:
The Director of Land ruled that the disputed land was subject to
―reparian rights‖ which may he invoked by petitioner Julian Santulan as
owner of the upland in accordance with section 32 of Lands
Administrative Order No. 7-1. It was found out that the disputed land is
foreshore land covered and uncovered by the flow and ebb of the
ordinary tides that is an extension of Santulan’s Lot No. 986 of the
Kawit cadastre, with an area of 17, 301 square meters, registered in his
name in 1937 under Original Certificate of Title No. 6 which was issued
by virtue of a free patent, and the said foreshore land was allegedly
formed by soil deposits accumulated by the alluvial action of the sea,
and the petitioner was the first to enter the land and to make dikes
thereon.
Private Respondent Antonio Lusin was found out to be possessor in bad
faith, and latter’s allegation with respect to the possession and
improvements could not nullify the petitioner’s preferential right to lease
the land by reason of his riparian rights. Therefore, the rejection of the
private respondent’s revocable permit and foreshore lease is proper.
__________________________________________________________
______
Lands Administrative Order No. 7-1 dated April 30. 1936
32. Preference of the Reparian Owner � The owner of the property
adjoining foreshore lands, marshy lands or lands covered with water
bordering upon shores or banks of navigable lakes or rivers, shall be
given preference to apply for such lands adjoining his property as may
not be needed for the public service, subject to the laws and regulations
governing lands of this nature, provided that he applies therefore within
sixty (60) days from the date he receives a communication from the
Director of Lands advising him of his preferential right.
Strictly speaking, "riparian" refers to rivers. A riparian owner is a person
who owns land situated on the bank of a river.
―Riparian owner" embraces not only the owners of lands on the banks of
rivers but also the littoral owners, meaning the owners of lands
bordering the shore of the sea or lake or other tidal waters. The littoral is
the coastal region including both the land along the coast and the water
near the coast or the shore zone between the high and low watermarks.
G.R. No. L-39473 April 30, 1979
REPUBLIC OF THE PHILIPPINES, petitioner,
vs.
HON. COURT OF APPEALS and ISABEL LASTIMADO,
respondents.
On June 3, 1968, or within one year from the entry of the decree of
registration, petitioner filed a Petition for Review pursuant to Sec. 38,
Act No. 496, on the ground of fraud alleging that during the period of
alleged adverse possession by private respondent, said parcel of land
was part of the U.S. Military Reservation in Bataan. which was formally
turned over to the Republic of the Philippines only on December 22,
1965, and that the same is inside the public forest of Mariveles, Bataan
and, therefore, not subject to disposition or acquisition under the Public
Land Law. Respondent field an Opposition thereto, which was
considered by the trial Court, as a Motion to Dismiss, and on December
20,1968, said Court (Judge Tito V. Tizon, presiding) issued an Order
dismissing the Petition for Review mainly on the ground that the
Solicitor General had failed to file opposition to the original Petition for
reopening of the cadastral proceedings and was, therefore, estopped
from questioning the decree of registration ordered issued therein. On
January 28, 1969, petitioner moved for reconsideration, which was
denied by the trial Court in its Order dated May 20, 1969, for lack of
merit.
On September 30, 1974, the Court of Appeals upheld the trial Court's
dismissal of the Petition for Review stating:
... We cannot find any allegation in the petition for review which shows
that private respondent had committed fraud against petitioner. Its
representations and officials were duly notified of private respondent's
petition for reopening and registration of title in her name. In said
petition, the technical descriptions of the portion of Lot No. 626 of the
Mariveles (Bataan) Cadastre, subject-matter of the petition were
expressly stated, the boundaries, specifically delineated. The alleged
ground that the land forms part of a forest land exists at the time
petitioner was duly notified of said petition. Failure to file opposition is
in effect, an admission that the petition is actually not part of a forest
land. Indubitably, therefore, no justifiable reason exists for the
annulment of the Order, dated December 20, 1968 (Annex D-Petition) of
the lower court dismissing herein petitioner's petition for review of the
decree issued in favor of private respondent Lastimado. 1
From this Decision, petitioner filed the present Petition for Review
(Appeal) by certiorari assigning the following errors to the Court of
Appeals and to the trial Court:
1. The Lower Court as well as the Court of Appeals erred in finding that
there can be possession, even for the purpose of claiming title, of land
which at the time of possession is subject to a military reservation.
2. The Lower Court as well as the Court of Appeals erred in finding that
such land which is subject to a government reservation, may
appropriately be the subject of cadastral proceedings, and hence. also of
a petition to reopen cadastral proceedings.
3. The Lower Court as well as the Court of Appeals erred in finding that
a parcel of land which is part of the public forest is susceptible of
occupation and registration in favor of private individual.
4. The Lower Court as well as the Court of Appeals erred in not finding
that the Republic of the Philippines is not estopped from questioning the
decree of registration and the title issued pursuant thereto in favor of
respondent Lastimado over the parcel of land in question.
5. The Lower Court erred in dismissing the petition for review of the
Republic of the Philippines.
If the court after hearing finds that the applicant or adverse claimant has
title as stated in his application or adverse claim and proper for
registration, a decree of confirmation and registration shall be entered.
Every decree of registration shall bind the land, and quiet title thereto.
subject only to the exceptions stated in the following section. It shall be
conclusive upon and against all persons, including the Insular
Government and all the branches thereof, whether mentioned by name in
the application, notice of citation, or included in the general description
"To all whom it may concern". Such decree shall not be opened by
reason of the absence, infancy, or other disability of any person affect
thereby, nor by any proceeding in any court for reversing judgments or
decrees; subject, however, to the right of any person deprived of land or
of any estate or interest therein by decree of registration obtained by
fraud to file in the competent Court of First Instance a petition for
review within one year after entry of the decree provided no innocent
purchaser for value has acquired an interest. ... 3
The fraud is one that affects and goes into the jurisdiction of the Court. 7
In its Petition for Review filed before the trial Court, petitioner alleged
that fraud was committed by private respondent when she
misrepresented that she and her predecessors-in-interest had been in
possession of the land publicly, peacefully, exclusively and adversely
against the whole world as owner for more than forty years when, in
fact, the subject land was in. side the former U.S. Military Reservation,
which was formally turned over to the Republic of the Philippines only
on December 22, 1965, and that she likewise contended that her rights,
as derived from the original and primitive occupants of the land in
question, are capable of judicial confirmation under existing laws, when
the truth is, said parcel of land is within the public forest of Mariveles,
Bataan, and is not subject to disposition or acquisition by private persons
under the Public Land Law.
The trial Court ruled, and was upheld by the Court of Appeals, that no
fraud was committed by private respondent, which deprived petitioner of
its day in Court as there was no showing that she was aware of the facts
alleged by the Government, so that she could not have suppressed them
with intent to deceive. The trial Court also noted that petitioner had
failed to file an opposition to the reopening of the cadastral proceedings
despite notices sent not only to the Solicitor General as required by
Republic Act No. 931. but to the Bureau of Lands and the Bureau of
Forestry as well. It then concluded that "the remedy granted by section
38 of the Land Registration Act is designed to give relief to victims of
fraud, not to those who are victims of their own neglect, inaction or
carelessness, especially when no attempt is ever made to excuse or
justify the neglect." With the foregoing as the essential basis, the trial
Court dismissed the Petition for Review.
If the allegation of petitioner that the land in question was inside the
military reservation at the time it was claimed is true, then, it cannot be
the object of any cadastral p nor can it be the object of reopening under
Republic Act No. 931. 9 Similarly, if the land in question, indeed forms
part of the public forest, then, possession thereof, however long, cannot
convert it into private property as it is within the exclusive jurisdiction
of the Bureau of Forestry and beyond the power and jurisdiction of the
Cadastral Court to register under the Torrens System. 10
Even assuming that the government agencies can be faulted for inaction
and neglect (although the Solicitor General claims that it received no
notice), yet, the same cannot operate to bar action by the State as it
cannot be estopped by the mistake or error of its officials or agents. 11
Further, we cannot lose sight of the cardinal consideration that "the State
as persona in law is the juridical entity, which is the source of any
asserted right to ownership in land" under basic Constitutional Precepts,
and that it is moreover charged with the conservation of such patrimony.
12
WHEREFORE, the Decision of the Court of Appeals dated September
30, 1974, dismissing the Petition for certiorari and mandamus filed
before it, as well as the Order of the Court of First Instance of Bataan
(Branch I) dated December 20, 1968, dismissing the Petition for Review,
are hereby set aside and the records of this case hereby ed to the latter
Court for further proceedings to enable petitioner to present evidence in
support of its Petition for Review.
No pronouncement as to costs.
Chavez vs. Public Estates Authority (G.R. No. 133250, July 9, 2002)
Fact:
In 1973, the Comissioner on Public Highways entered into a contract to
reclaim areas of Manila Bay with the Construction and Development
Corportion of the Philippines (CDCP).
Issue:
w/n: the transfer to AMARI lands reclaimed or to be reclaimed as part of
the stipulations in the (Amended) JVA between AMARI and PEA
violate Sec. 3 Art. XII of the 1987 Constitution
w/n: the court is the proper forum for raising the issue of whether the
amended joint venture agreement is grossly disadvantageous to the
government.
Held:
On the issue of Amended JVA as violating the constitution:
1. The 157.84 hectares of reclaimed lands comprising the Freedom
Islands, now covered by certificates of title in the name of PEA, are
alienable lands of the public domain. PEA may lease these lands to
private corporations but may not sell or transfer ownership of these lands
to private corporations. PEA may only sell these lands to Philippine
citizens, subject to the ownership limitations in the 1987 Constitution
and existing laws.
FACTS:
To summarize, the SMDRP shall consist of Phase I and Phase II. Phase
I of the project involves clearing, levelling-off the dumpsite, and
construction of temporary housing units for the current residents on the
cleared and levelled site. Phase II involves the construction of a fenced
incineration area for the on-site disposal of the garbage at the dumpsite.
Subsequently, the Clean Air Act was passed by the legislature which
made the establishment of an incinerator illegal, making the off-site
dumpsite at Smokey Mountain necessary. On August 1, 1998, the
project was suspended, to be later reconstituted by President Estrada in
MO No. 33.
Whether respondents NHA and RBI have been granted the power and
authority to reclaim lands of the public domain as this power is vested
exclusively in PEA as claimed by petitioner
Whether respondents NHA and RBI were given the power and
authority by DENR to reclaim foreshore and submerged lands
Whether respondent RBI can acquire reclaimed foreshore and
submerged lands considered as alienable and outside the commerce of
man
Whether respondent RBI can acquire reclaimed lands when there was
no declaration that said lands are no longer needed for public use
Whether there is a law authorizing sale of reclaimed lands
Whether the transfer of reclaimed lands to RBI was done by public
bidding
Whether RBI, being a private corporation, is barred by the
Constitution to acquire lands of public domain
Whether respondents can be compelled to disclose all information
related to the SMDRP
Whether the operative fact doctrine applies to the instant position
HELD:
Executive Order 525 reads that the PEA shall be primarily responsible
for integrating, directing, and coordinating all reclamation projects for
and on behalf of the National Government. This does not mean that it
shall be responsible for all. The requisites for a valid and legal
reclamation project are approval by the President (which were provided
for by MOs), favourable recommendation of PEA (which were seen as a
part of its recommendations to the EXECOM), and undertaken either by
PEA or entity under contract of PEA or by the National Government
Agency (NHA is a government agency whose authority to reclaim lands
under consultation with PEA is derived under PD 727 and RA 7279).
Notwithstanding the need for DENR permission, the DENR is
deemed to have granted the authority to reclaim in the Smokey
Mountain Project for the DENR is one of the members of the EXECOM
which provides reviews for the project. ECCs and Special Patent Orders
were given by the DENR which are exercises of its power of supervision
over the project. Furthermore, it was the President via the
abovementioned MOs that originally authorized the reclamation. It must
be noted that the reclamation of lands of public domain is reposed first
in the Philippine President.
The reclaimed lands were classified alienable and disposable via MO
415 issued by President Aquino and Proclamation Nos. 39 and 465 by
President Ramos.
Despite not having an explicit declaration, the lands have been
deemed to be no longer needed for public use as stated in Proclamation
No. 39 that these are to be ―disposed to qualified beneficiaries.‖
Furthermore, these lands have already been necessarily reclassified as
alienable and disposable lands under the BOT law.
Letter I of Sec. 6 of PD 757 clearly states that the NHA can acquire
property rights and interests and encumber or otherwise dispose of them
as it may deem appropriate.
There is no doubt that respondent NHA conducted a public bidding of
the right to become its joint venture partner in the Smokey Mountain
Project. It was noted that notices were published in national
newspapers. The bidding proper was done by the Bids and Awards
Committee on May 18, 1992.
RA 6957 as amended by RA 7718 explicitly states that a contractor
can be paid ―a portion as percentage of the reclaimed land‖ subject to the
constitutional requirement that only Filipino citizens or corporation with
at least 60% Filipino equity can acquire the same. In addition, when the
lands were transferred to the NHA, these were considered Patrimonial
lands of the state, by which it has the power to sell the same to any
qualified person.
This relief must be granted. It is the right of the Filipino people to
information on matters of public concerned as stated in Article II, Sec.
28, and Article III, Sec. 7 of the 1987 Constitution.
When the petitioner filed the case, the JVA had already been
terminated by virtue of MOA between RBI and NHA. The properties
and rights in question after the passage of around 10 years from the start
of the project’s implementation cannot be disturbed or questioned. The
petitioner, being the Solicitor General at the time SMDRP was
formulated, had ample opportunity to question the said project, but did
not do so. The moment to challenge has passed.
VII. Remedies
FACTS:
xxx
That the aforesaid amount shall be paid in two installments, the first
installment which is in the amount of __________ (P15,387.50) and the
balance in the amount of __________ (P15,387.50), shall be paid as
soon as the described portion of the property shall have been registered
under the Land Registration Act and a Certificate of Title issued
accordingly;
That as soon as the total amount of the property has been paid and the
Certificate of Title has been issued, an absolute deed of sale shall be
executed accordingly;
xxx
On August 12, 1991, Sabug, Jr, applied for a free patent over
the entire Lot 18089 and was eventually issued OCT No. M-59558 in his
name on October 21, 1991. On June 24, 1993, Sabug, Jr. and Rivero, in
her personal capacity and in representation of Rivero, et al., executed the
1993 Joint Affidavit, acknowledging that the subject portion belongs to
Sps. Roque and expressed their willingness to segregate the same from
the entire area of Lot 18089.
ISSUE:
Here, it is undisputed that Sps. Roque have not paid the final
installment of the purchase price. As such, the condition which would
have triggered the parties’ obligation to enter into and thereby perfect a
contract of sale in order to effectively transfer the ownership of the
subject portion from the sellers (i.e., Rivero et al.) to the buyers (Sps.
Roque) cannot be deemed to have been fulfilled. Consequently, the latter
cannot validly claim ownership over the subject portion even if they had
made an initial payment and even took possession of the same.
There is no double sale in such case. Title to the property will transfer to
the buyer after registration because there is no defect in the owner-
seller’s title per se, but the latter, of course, may be sued for damages by
the intending buyer.
When this came to her knowledge, petitioner filed on February 18, 1994
a petition for reconveyance, docketed as Civil Case No. 878-94, with the
Regional Trial Court (RTC), Branch 21 of the Province of Cavite against
respondent, accusing her of forgery and fraudulently causing the
issuance of a new certificate of title in her name.
After trial, the RTC, Branch 21, Cavite, rendered its Decision[5] dated
October 7, 1996 dismissing the complaint for reconveyance and finding
respondent as the true and lawful owner of the property described in
TCT 369793.
10. TCT No. T-784707 dated December 15, 1997 in the name of
Engracia’s heirs had been mortgaged to a certain Potentiano Ponce for
P6,500,000.00 on January 13, 1998. The mortgage was annotated on the
TCT on January 14, 1998.
2. Further, the title of the Heirs of Engracia Isip (TCT No. T-784707)
did not originate from the cancelled title of Irene Montemayor (TCT No.
T-369793);
4. That the title of the Isips (TCT No. T-784707) is a derivative title
from TCT No. T-769357 (Engracia Isip) which originated from a Deed
of Conveyance duly issued by the Land Management Bureau, an
immediate transfer from OCT No. 1002 (Republic of the Philippines);
5. That the late Engracia Isip nor her heirs were not a party to the
ongoing court litigation between Emma Ver Reyes, et al. vs. Irene
Montemayor, et al., hence, the said notice of Lis Pendens does not meet
the necessary requirement of its registrability.[21]
Thus, this petition, raising the sole issue of whether the Register of
Deeds was justified, under the attendant circumstances, in denying the
annotation of the Notice of Lis Pendens on TCT No. T-784707.
Citing our rulings that a notation of lis pendens does not create a right or
a lien upon the subject property,[29] and that the applying party is not
required to prove his right or interest over the property on which the
notice is sought to be annotated,[30] petitioner argues that the annotation
of the notice of lis pendens under the circumstances would only serve as
a warning to third parties that the real property is subject to a pending
litigation such that persons dealing with it would do so at their own risk,
and it would not, in any way, prejudice the rights of Engracia’s heirs
who are named as owners of the subject real estate.
SO ORDERED.
ESSIE GASATAYA, G.R. No. 148147
-versus-
EDITHA MABASA,
February 16, 2007
x-------------------------------------------------
- - -x
DECISION
CORONA, J.:
Eight years after the execution of the above deed of sale with right to
repurchase, respondent discovered that Sabas Gasataya had stopped
paying DBP. As a result, DBP revoked her right to repurchase the
subject lots.
Petitioner and his father denied the allegations saying that the deed of
conditional sale assumed by the latter from respondent was rendered
ineffective by DBPs refusal to accept payments thereon.
The trial court ruled in favor of respondent finding that the Gasatayas
failed to controvert her claim that they defrauded her just so petitioner
could acquire the lots at public auction.[5] According to the trial court,
the Gasatayas failed to prove that DBP indeed rejected payments from
Sabas Gasataya. The trial court ruled:
b. Ordering the Registrar of Deeds for the Province of Lanao del Norte
to procure and cause the transfer and registration of the aforesaid
transfer certificates of title in favor and in the name of herein
[respondent] Editha S. Mabasa;
SO ORDERED.[6]
Petitioner and his father appealed to the CA which affirmed the RTCs
decision and dismissed their appeal for lack of merit. The CA declared:
Before us, petitioner contests the CA decision affirming the trial courts
order to reconvey his titles on the disputed lots to respondent who,
according to him, is not the owner thereof.
We affirm the CA.
The trial courts findings, as affirmed by the CA, that petitioner and his
father deceived respondent to acquire the disputed lots bind us. Well-
settled is the rule that factual conclusions of the trial court deserve
respect and become irrefutable especially when affirmed by the CA.[9]
Absent any evidence that the CA overlooked salient matters that could
justify a reversal of the outcome of this case, we decline to disturb such
factual conclusions.
We disagree.
Neither can this Court uphold petitioners contention that his titles are
unsullied on the mere fact that he purchased the properties at public
auction. Fraud overthrows the presumption that the public sale was
attended with regularity. The public sale did not vest petitioner with any
valid title to the properties since it was but the consequence of his and
his fathers fraudulent schemes.
Moreover, the law only protects an innocent purchaser for value and not
one who has knowledge of and participation in the employment of fraud.
An innocent purchaser for value is one who buys the property of another
without notice that some other person has a right to or interest in that
same property, and who pays a full and fair price at the time of the
purchase or before receiving any notice of another persons claim.[13]
Obviously, petitioner was not an innocent purchaser for value.
As a final point, the Court takes significant note of the fact that
respondents father originally acquired the subject lots through
homestead grant. Commonwealth Act 141 (Public Land Act) aims to
confine and preserve to the homesteader and his kin the homestead lots.
We, therefore, agree with the CAs disquisition that courts should lend a
stout shoulder to help keep a homestead in the homesteaders family for
the stern reality cannot be belied that homesteaders and their families are
generally in the lower stratum of life and most likely, when they alienate
the homestead, it is out of dire necessity.[14] According to the CA,
desperation does not allow much of a choice, hence homesteaders and
their kin should be given every opportunity to repurchase their
homestead.
SO ORDERED.
G.R. No. L-33261 September 30, 1987
LIWALUG AMEROL, MACATANTO AMEROL, TAIB
AMEROL, DIBARATUN AMEROL, DIBARATUN,
MATABALAO, MINDALANO DIBARATUN, DIPUNDUGUN
MORO, and MANUCAO MORO, petitioners,
vs.
MOLOK BAGUMBARAN, respondent.
The only issue for resolution is the prescriptive period of an action for
reconveyance of real property which has been wrongfully or erroneously
registered under the Torrens System in another's name. In other words,
what is the prescriptive period for the action to reconvey the title to real
property arising from an implied or constructive trust and, corrolarily
reference. The petitioners herein, defendants in the trial court, assert that
they have ten years to bring the action, while the respondent, plaintiff in
the court below, claims the prescriptive period is four years. The trial
court ruled tor the plaintiff, now respondent.
We reverse. We hold that the prescriptive period for such an action for
reconveyance, as this case, is ten years. The point of reference is, or the
ten-year prescriptive period commences to run from, the. date of the
issuance of the certificate of title over the real property.
There is no issue as to the facts, this case having been elevated to this
Court, as aforestated, on purely a question of law. Be that as it may, in
order to satisfy constitutional requirements as well as to place the
question of law in proper perspective, there is need to state the facts of
the case. On this regard, the findings of the trial court would best serve
the stated purposes.
The patent of the plaintiff having been registered back in 1955 and in
contemplation of law registration thereof is notice to the whole world
and yet defendant exerted no effort whatsoever either to annul the title or
institute proceedings for reconveyance except in his counterclaim
contained in his answer to the complaint in this case at bar which answer
and counter-claim was filed on December 4, 1964, some nine long years
from the date of registration of the patent, defendant unfortunately lost
his right to reconveyance within the period of four (4) years from the
date of registration of said patent. 5
The petitioners in their Brief 8 assign the following two errors allegedly
committed by the trial court:
I.
II.
In this case, the land in question was patented and titled in respondent's
name by and through his false pretenses. Molok Bagumbaran
fraudulently misrepresented that he was the occupant and actual
possessor of the land in question when he was not because it was
Liwalug Datomanong. Bagumbaran falsely pretended that there was no
prior applicant for a free patent over the land but there was — Liwalug
Datomanong. By such fraudulent acts, Molok Bagumbaran is deemed to
hold the title of the property in trust and for the benefit of petitioner
Liwalug Datomanong. Notwithstanding the irrevocability of the Torrens
title already issued in the name of respondent, he, even being already the
registered owner under the Torrens system, may still be compelled under
the law to reconvey the subject property to Liwalug Datomanong. After
all, the Torrens system was not designed to shield and protect one who
had committed fraud or misrepresentation and thus holds title in bad
faith. Further, contrary to the erroneous claim of the respondent, 9
reconveyance does not work to set aside and put under review anew the
findings of facts of the Bureau of Lands. In an action for reconveyance,
the decree of registration is respected as incontrovertible. What is sought
instead is the transfer of the property, in this case the title thereof, which
has been wrongfully or erroneously registered in another person's name,
to its rightful and legal owner, 10 or to one with a better right. That is
what reconveyance is all about.
Finally, the case of Ramirez vs. Court of Appeals 14 can not be availed
of because the period of prescription was not there definitely and
squarely settled. In fact, Ramirez underscores a vacillation between the
four-year and the ten-year rule. There it was stated that "an action for
relief on the ground of fraud — to which class the remedy prayed for by
Paguia belong — scan only be brought within four years after accrual of
the right of action, or from the discovery of the fraud." If the decision
just stayed pat on that statement, there would be merit in the
respondent's presentation. But Ramirez continues: "(I)ndepedently,
however, of the alleged fraud on the part of Ramirez, the right to
demand a reconveyance prescribes after 10 years from accrual of the
cause of action, June 22, 1944, the date of registration of the patent and
of the issuance of OCT No. 282- A in his name." 15
SEC. 43. Other civil actions; how limited-Civil actions other than for the
recovery of real property can only be brought within the following
periods after the right of action accrues:
In contrast, under the present Civil Code, we find that just as an implied
or constructive trust is an offspring of the law (Art. 1456, Civil Code),
so is the corresponding obligation to reconvey the property and the title
thereto in favor of the true owner. In this context, and vis-a-vis
prescription, Article 1144 of the Civil Code is applicable.
Article 1144. The following actions must be brought within ten years
from the time the right of action accrues:
(Emphasis supplied)
It is abundantly clear from all the foregoing that the action of petitioner
Datomanong for reconveyance, in the nature of a counterclaim
interposed in his Answer, filed on December 4, 1964, to the complaint
for recovery of possession instituted by the respondent, has not yet
prescribed. Between August 16, 1955, the date of reference, being the
date of the issuance of the Original Certificate of Title in the name of the
respondent, and December 4, 1964, when the period of prescription was
interrupted by the filing of the Answer cum Counterclaim, is less than
ten years.
SO ORDERED.
Separate Opinions
PADILLA, J, concurring and dissenting:
Separate Opinions
PADILLA, J, concurring and dissenting:
In Rone vs. Claro and Baquiring (91 Phil. 250, 251), the Court held that
an action for the recovery of title to parcel of registered land, where it
was alleged that the defendants or one of them, through fraud, deceit and
breach of faith, succeeded in getting the original certificate of title from
one of the plaintiffs, and then, again, with use of fraud, deceit, breach of
faith, and other machinations, succeeded in having the plaintiffs execute
a deed of sale of the lot in question in favor of the defendants, and,
thereafter, obtained a certificate of title in their names: "It may be that
the recovery of title and possession of the lot was the ultimate objective
of plaintiffs, but to attain that goal, they must need first travel over the
road of relief on the ground of fraud."
DECISION
The Antecedents
On August 29, 1988, Free Patent No. VII-4-2974 was issued to Alan P.
Quijano, married to Mila Matutina, over a parcel of land located in
Antipolo, Medellin, Cebu, with an area of 14,197 square meters
identified as Lot 374, Cadastre 374-D. Based on the said patent, Original
Certificate of Title (OCT) No. OP-38221 was issued by the Register of
Deeds to and in the name of Alan P. Quijano on September 6, 1988.[3]
On November 11, 1988, Free Patent No. VII-4-3088 was issued to and
in favor of Gwendolyn Q. Enriquez, married to Eugenio G. Enriquez,
over a parcel of land located in Antipolo, Medellin, Cebu, identified as
Lot 379, Cadastre 374-D, with an area of 6,640 square meters. Based on
the said patent, OCT No. OP-39847 was issued in her favor on February
11, 1989.[4]
In the meantime, Gwendolyn Enriquez filed an application for a free
patent over Lot 376 of Cadastre 374-D with the Department of
Environment and Natural Resources (DENR). The application was
docketed as Free Patent Application (F.P.A.) No. VII-4-3152. She also
filed an application for a free patent over Lot 378, docketed as F.P.A.
No. VII-4-3152-A. However, the heirs of Guillermo Sanjorjo, namely,
Tranquilina, Pablo, Boir, Erlinda, Josefina, Maria, Maximo, Isabel, Jose,
Dario, Vicente, Noel, Albina, Ramon, Domingo, Adriano and Celedonia,
all surnamed Sanjorjo, filed a protest/complaint with the DENR on May
22, 1991, praying for the cancellation of Free Patent No. VII-4-2974, as
well as Free Patent No. VII-4-3088, and for the dismissal of the free
patent applications over Lots 376 and 378.[5] The complaint was
docketed as PENRO Claim No. PN 072231-4, and was assigned to the
Regional Executive Director for hearing and decision.
Protestants further pray for other relief, just and equitable, under the
premises.[6]
(a) Lot No. 374 with an area of 14,179 sq.m. and covered by Tax
Declaration No. 00718 in the name of PONCIANO DEMIAR and Tax
Declaration No. 01042 in the name of TRANQUILINA SANJORJO;
(b) Lot No. 376 with an area of 6,177 sq.m. and covered by Tax
Declaration No. 01038 in the name of MAURO SANJORJO;
(c) Lot No. 378 with an area of 3,201 sq.m. and covered by Tax
Declaration No. 01035 in the name of FLORENTINO SANJORJO;
(d) Lot No. 379 with an area of 6,640 sq.m. and covered by Tax
Declaration No. 00772 in the name of SANTOS INOT and Tax
Declaration No. 01039 in the name of SABINIANO SANJORJO;
The said Tax Declarations are hereto attached and marked as Annexes
A, B, C, D, E and F, respectively, and made integral parts of this
complaint;
(a) Lot No. 374 is now covered by OCT No. OP-38221 in the name of
defendant ALAN P. QUIJANO. A copy of the title is hereto attached
and marked as Annex G and made an integral part of this complaint;
(b) Lot No. 376 is now covered by Tax Declaration No. 10015 in the
name of MANUEL Y. QUIJANO married to FLAVIANA P. QUIJANO.
A copy of the said tax declaration is hereto attached and marked as
Annex H and made an integral part of this complaint;
(c) Lot No. 379 is now covered by OCT No. OP-39847 in the name of
GWENDOLYN Q. ENRIQUEZ. A copy of the title is hereto attached
and marked as Annex I and made an integral part of this complaint;
7. That the plaintiffs nor their ascendants have never sold, donated, or
mortgaged any of these lots in question to the defendants or their
ascendants;
(a) Ordering the cancellation of OCT Nos. OP-38221 and OP-39847 and
Tax Declaration No. 10015;
(b) Ordering the defendants to pay rentals to the plaintiffs in the amount
of P4,500.00 per year from 1983 up to the time the properties are
returned to the plaintiffs; and
(c) Ordering the defendants to pay the plaintiffs moral damages in the
amount of not less than P20,000.00.
Plaintiffs further pray for such other relief and remedies as this Court
may deem just and equitable under the premises.[10]
The petitioners opposed the motion. In their reply to such opposition, the
private respondents invoked another ground that the petitioners action
was barred by the issuance of OCT No. OP-38221 covering Lot 374 on
August 29, 1988, and OCT No. OP-39847 covering Lot 379 on
November 11, 1988.
On September 13, 1994, the trial court issued an Order dismissing the
complaint on the ground of res judicata. The petitioners appealed the
order to the CA.
We note that the petitioners limited the issues to the two titled lots, Lots
374 and 379, arguing that there can be no res judicata in this case
because one of its elements, i.e., that the former judgment is a judgment
on the merits, was lacking. The petitioners did not assail the trial courts
order dismissing the complaint insofar as Lots 376 and 378 are
concerned. Moreover, according to the petitioners, the April 14, 1992
Decision of the Regional Executive Director was not a decision on the
merits of the complaint, as they had yet to prove their allegation of fraud
as regards the said lots.
The petitioners maintain that the appellate court erred in holding that
their action in Civil Case No. CEB 14580 was barred by the Decision
dated April 14, 1992 of the DENR Regional Executive Director. They
contend that the latter decision is not a decision on its merits so as to bar
their complaint.
We agree.
The elements of res judicata are the following: (1) the previous judgment
has become final; (2) the prior judgment was rendered by a court having
jurisdiction over the subject matter and the parties; (3) the first judgment
was made on the merits; and (4) there was substantial identity of parties,
subject matter and causes of action, as between the prior and subsequent
actions.[15]
On the second issue, we agree with the petitioners that their action
against the private respondents for the reconveyance of Lots 374 and
379, covered by OCT No. OP-38221 issued on September 6, 1988 and
OCT No. OP-39847 issued on February 11, 1989, respectively, was not
barred by Section 32 of P.D. No. 1529, which reads:
We agree with the ruling of the CA that the torrens title issued on the
basis of the free patents became as indefeasible as one which was
judicially secured upon the expiration of one year from date of issuance
of the patent.[19] The order or decision of the DENR granting an
application for a free patent can be reviewed only within one year
thereafter, on the ground of actual fraud via a petition for review in the
Regional Trial Court (RTC) provided that no innocent purchaser for
value has acquired the property or any interest thereon. However, an
aggrieved party may still file an action for reconveyance based on
implied or constructive trust, which prescribes in ten years from the date
of the issuance of the Certificate of Title over the property provided that
the property has not been acquired by an innocent purchaser for value.
Thus:
The basic rule is that after the lapse of one (1) year, a decree of
registration is no longer open to review or attack although its issuance is
attended with actual fraud. This does not mean, however, that the
aggrieved party is without a remedy at law. If the property has not yet
passed to an innocent purchaser for value, an action for reconveyance is
still available. The decree becomes incontrovertible and can no longer be
reviewed after one (1) year from the date of the decree so that the only
remedy of the landowner whose property has been wrongfully or
erroneously registered in anothers name is to bring an ordinary action in
court for reconveyance, which is an action in personam and is always
available as long as the property has not passed to an innocent third
party for value. If the property has passed into the hands of an innocent
purchaser for value, the remedy is an action for damages. In this case,
the disputed property is still registered in the name of respondent
Demetrio Caringal, so that petitioner was correct in availing himself of
the procedural remedy of reconveyance.[20]
Article 1456 of the New Civil Code provides that a person acquiring
property through fraud becomes by operation of law a trustee of an
implied trust for the benefit of the real owner of the property. The
presence of fraud in this case created an implied trust in favor of the
petitioners, giving them the right to seek reconveyance of the property
from the private respondents. However, because of the trial courts
dismissal order adverted to above, the petitioners have been unable to
prove their charges of fraud and misrepresentation.
SO ORDERED.