Professional Documents
Culture Documents
Esteban Vs CA
Esteban Vs CA
SUPREME COURT
Manila
EN BANC
INTESTATE ESTATE OF THE LATE DON MARIANO SAN PEDRO Y ESTEBAN, represented by
its HEIR-JUDICIAL ADMINISTRATOR, ENGRACIO F. SAN PEDRO, petitioner-appellant,
vs.
COURT OF APPEALS (Second Division) AURELIO OCAMPO, DOMINADOR D. BUHAIN,
TERESA C. DELA CRUZ, respondents-appellees.
The most fantastic land claim in the history of the Philippines is the subject of controversy in these two
consolidated cases. The heirs of the late Mariano San Pedro y Esteban laid claim and have been
laying claim to the ownership of, against third persons and the Government itself, a total land area of
approximately 173,000 hectares or "214,047 quiniones," 1 on the basis of a Spanish title, entitled
"Titulo de Propriedad Numero 4136" dated April 25, 1894. The claim, according to the San Pedro
heirs, appears to cover lands in the provinces of Nueva Ecija, Bulacan, Rizal, Laguna and Quezon;
and such Metro Manila cities as Quezon City, Caloocan City, Pasay City, City of Pasig and City of
Manila, thus affecting in general lands extending from Malolos, Bulacan to the City Hall of Quezon
City and the land area between Dingalan Bay in the north and Tayabas Bay in the south. 2
Considering the vastness of the land claim, innumerable disputes cropped up and land swindles and
rackets proliferated resulting in tedious litigation in various trial courts, in the appellate court and in the
Supreme Court, 3 in connection therewith.
We have had the impression that our decisions in Director of Forestry, et al. v. Muñoz, 23 SCRA 1183
[1968]; Antonio, et al. v. Barroga, et al., 23 SCRA 357 [1968]; Carabot, et al. v. Court of Appeals, et
al., 145 SCRA 368 [1986]; Republic v. Intermediate Appellate Court, et al., 186 SCRA 88
[1990]; Widows and Orphans Association, Inc. (WIDORA) v. Court of Appeals, et al., 212 SCRA 360
[1992]; NAPOCOR v. Court of Appeals, et al., 144 SCRA 318 [1986]; Republic v. Court of Appeals, et
al., 135 SCRA 156 [1985]; and Director of lands v. Tesalona, 236 SCRA 336 [1994] 4 terminated the
controversy as to ownership of lands covered by Spanish Land Titles, for it is the rule that, once this
Court, as the highest Tribunal of the land, has spoken, there the matter must rest:
It is withal of the essence of the judicial function that at some point, litigation must
end, Hence, after the procedures and processes for lawsuits have been undergone,
and the modes of review set by law have been exhausted, or terminated, no further
ventilation of the same subject matter is allowed. To be sure, there may be, on the
part of the losing parties, continuing disagreement with the verdict, and the
conclusions therein embodied. This is of no moment, indeed, is to be expected; but, it
is not their will, but the Court's, which must prevail; and, to repeat, public policy
demands that at some definite time, the issues must be laid to rest and the court's
dispositions thereon accorded absolute finality. 5 [Cited cases omitted]
It is, therefore, to the best interest of the people and the Government that we render judgment herein
writing finis to these controversies by laying to rest the issue of validity of the basis of the estate's
claim of ownership over this vast expanse of real property.
The following facts are pertinent in the resolution of these long drawn-out cases:
G.R No. 103727, an appeal by certiorari, arose out of a complaint 6 for recovery of possession and/or
damages with a prayer for a writ of preliminary injunction. This was dismissed by the Regional Trial
Court, National Capital Judicial Region, Branch 104, Quezon City in its decision 7 dated July 7, 1989,
the dispositive portion 8 of which reads:
The said complaint for recovery of possession of real property and/or reconveyance with damages
and with a prayer for preliminary injunction was filed on August 15, 1988 by Engracio San Pedro as
heir-judicial administrator of the "Intestate Estate of Don Mariano San Pedro y Esteban" against Jose
G. De Ocampo, Aurelio Ocampo, MARECO, Inc., Rey Antonio Noguera, Teresa C. dela Cruz,
Gaudencio R Soliven, Diomedes Millan, Carmen Rayasco, Dominador D. Buhain, Mario D. Buhain,
Jose D. Buhain, Arestedes S. Cauntay, Manuel Chung and Victoria Chung Tiu (El Mavic Investment &
Development Corporation), Capitol Hills Realty Corporation and Jose F. Castro. The complaint was
docketed as Civil Case No. Q-88-447 in Branch 104, Regional Trial Court of Quezon City.
In the complaint, it was alleged, among others: (1) that Engracio San Pedro discovered that the
aforenamed defendants were able to secure from the Registry of Deeds of Quezon City titles to
portions of the subject estate, particularly Transfer Certificates of Title Nos. 1386, 8982, 951975-
951977, 313624, 279067, 1412, 353054, 372592, 149120, 86404, 17874-17875, all emanating from
Original Certificate of Title No. 614 9 and Transfer Certificates of Title Nos. 255544 and 264124, both
derivatives of Original Certificate of Title No. 333; (2) that the aforesaid defendants were able to
acquire exclusive ownership and possession of certain portions of the subject estate in their names
through deceit, fraud, bad faith and misrepresentation; (3) that Original Certificates of Title Nos. 614
and 333 had been cancelled by and through a final and executory decision dated March 21, 1988 in
relation to letter recommendations by the Bureau of Lands, Bureau of Forest Development and the
Office of the Solicitor General and also in relation to Central Bank Circulars dated April 7, 1971, April
23, 1971, September 12, 1972 and June 10, 1980; and (4) that the issue of the existence, validity and
genuineness of Titulo Propriedad No. 4136 dated April 25, 1894 which covers the subject estate had
been resolved in favor of the petitioner estate in a decision dated April 25, 1978 by the defunct Court
of First Instance, Branch 1 of Baliwag, Bulacan pertaining to a case docketed as Special Proceeding
No. 312-B. 10
Summons were served on only five of the aforementioned defendants, namely, Aurelio Ocampo,
MARECO, Inc., Teresita G. dela Cruz, Dominador Buhain and Manuel Chung and Victoria Chung
Tiu. 11
On February 7, 1989, the lower court ordered the dismissal of the complaint against Mareco, Inc. for
improper service of summons and against Manuel Chung and Victoria Chung Tiu for lack of cause of
action considering that the registered owner of the parcel of land covered by TCT No. 86404 is El
Mavic Investment and Development Co., Inc., not Manuel Chung and Victoria Chung Tiu. 12
Trial on the merits proceeded against the private respondents Ocampo, Buhain and Dela Cruz.
On July 7, 1989, the lower court rendered judgment dismissing the complaint based on the following
grounds: (a) Ocampo, Buhain and Dela Cruz are already the registered owners of the parcels of land
covered by Torrens titles which cannot be defeated by the alleged Spanish title, Titulo Propriedad No.
4136, covering the subject estate; and (b) the decision of the Court of First Instance of Bulacan
entitled "In the Matter of the Intestate Estate of the late Don Mariano San Pedro y Esteban"
specifically stated in its dispositive portion that all lands which have already been legally and validly
titled under the Torrens System by private persons shall be excluded from the coverage of Titulo
Propriedad No. 4136. 13
The motion for reconsideration thereof was denied, 14 and so, the petitioner estate interposed an
appeal with the Court of Appeals. On January 20, 1992, the appeal was dismissed 15 for being
unmeritorious and the lower court's decision was affirmed with costs against the petitioner estate. The
appellate court ratiocinated:
(1) neither the Titulo Propriedad No. 4136 nor a genuine copy thereof was presented
in the proceeding below;
(2) the illegible copy of the Titulo presented in court was not registered under the
Torrens system hence, it cannot be used as evidence of land ownership;
(3) the CFI decision invoked by petitioner estate in its favor expressly excluded from
the Titulo titled lands of private individuals;
(4) the Titulo is inferior to that of the registered titles of Ocampo, Buhain and Dela
Cruz as correctly ruled by the lower court;
(5) there is no evidence showing that OCT No. 614 from which titles of Ocampo,
Buhain and Dela Cruz originated was already cancelled, hence, the lower court did
not err in not declaring the same as null and
void. 16
Not having obtained a favorable judgment on appeal, the petitioner estate, on March 16, 1992, filed
the present petition 17 docketed as G.R. No. 103727.
1) The Decision dated April 25, 1978 is reconsidered and set aside.
2) Titulo de Propriedad No. 4136 is declared null and void and of no legal force and
effect and that therefore no rights could be derived therefrom.
3) All orders approving the sales, conveyances, donations or any other transactions
involving the lands covered by Titulo de Propriedad No. 4136 are declared
invalidated, void and of no force and effect.
4) All lands covered by Titulo de Propriedad No. 4136 are excluded from the
inventory of the estate of the late Mariano San Pedro y Esteban.
5) The heirs, agents, privies or anyone acting for and in behalf of the estate of the late
Mariano San Pedro y Esteban are enjoined from representing or exercising any acts
of possession or ownership or from disposing in any manner portions of all the lands
covered by Titulo de Propriedad No. 4136 and to immediately vacate the same.
6) Engracio San Pedro and Justino Benito as co-administrators submit in Court within
twenty days their final accounting and inventory of all real and personal properties of
the estate which had come into their possession or knowledge under oath.
The consideration and approval of the administrator's final accounting and inventory
of the presentation of movants-intervenors' evidence as well as the consideration of
all other incidents are hereby set on December 22, 1978 at 8:30 a.m.
The aforementioned petition for letters of administration over the intestate estate of the late Mariano
San Pedro y Esteban was filed on December 29, 1971 with the defunct Court of First Instance of
Bulacan, Fifth Judicial District, Branch IV, Baliuag, Bulacan. The petition docketed as Sp. Proc. No.
312-B was initiated by Engracio San Pedro and Justino Z. Benito who sought to be appointed as
administrator and co-administrator, respectively.
On February 29, 1972, after the jurisdictional facts were established, evidence for the petitioners was
received by the lower court without any opposition. 21
On March 2, 1972, then Presiding Judge Juan F. Echiverri issued an Order appointing Engracio San
Pedro as Administrator of the subject estate. 22
On March 11, 1972, the Court issued letters of administration in favor of Engracio San Pedro upon
posting of a bond in the sum of Ten Thousand Pesos (P10,000.00). 23
On February 7, 1974, Administrator Engracio San Pedro was ordered to furnish copies of the letters of
administration and other pertinent orders approving certain dispositions of the properties of the estate
to the following entities:
(k) Office of Civil Relations, Camp Crame, Quezon City and Camp Aguinaldo,
Quezon City. 24
The above Order was issued so as to protect the general public from any confusion brought about by
various persons who had been misrepresenting themselves as having been legally authorized to act
for the subject estate and to sell its properties by virtue thereof.
On August 30, 1976, a Motion for Intervention and an Opposition to the Petition was filed by the
Republic of the Philippines alleging, inter alia:
4. That under Presidential Decree No. 892, dated February 16, 1976, Spanish titles
like the TITULO is absolutely inadmissible and ineffective as proof of ownership in
court proceedings, except where the holder thereof applies for land registration under
Act 496, which is not true in the proceedings at bar;
5. That no less than the Supreme Court had declared TITULO DE PROPIEDAD NO.
4136 as invalid;
6. That, moreover, the late Don Mariano San Pedro y Esteban and/or his supposed
heirs have lost whatever rights of ownership they might have had to the so-called
Estate on the ground of inaction, laches and/or prescription;
8. That the Republic of the Philippines has a legal interest in the land subject matter
of the petition considering that, except such portions thereof had been (sic) already
the subject of valid adjudication or disposition in accordance with law, the same
belong in State ownership.25
On February 16, 1977, the Republic's Opposition to the Petition for Letters of Administration was
dismissed by means of the following Order issued by Judge Benigno Puno:
WHEREFORE, for lack of jurisdiction to determine the legal issues raised, the Court
hereby DISMISSES the "Opposition" dated August 30, 1976, filed by the Office of the
Solicitor General; likewise, for lack of merit, the Motion to Suspend Proceedings
dated February 15, 1977, filed by the Office of the Solicitor General is DENIED.
The administrator Engracio San Pedro and the Co-administrator Justino Z. Benito are
ordered to furnish the office of the Solicitor General all copies of inventories already
filed in Court within ten (10) days from notice hereof. 27
On April 25, 1978, the lower court then presided over by Judge Agustin C. Bagasao, rendered a 52-
page decision, the dispositive portion of which reads:
(b) Declaring Engracio San Pedro, Candido Gener, Santiago Gener, Rosa Pantaleon,
Vicente Pantaleon, Eleuterio Pantaleon, Trinidad San Pedro, Rodrigo San Pedro,
Ricardo Nicolas, and Teresa Nicolas, as the true and lawful heirs of the deceased
Don Mariano San Pedro y Esteban and entitled to inherit the intestate estate left by
the said deceased, consisting of the above-mentioned tract of private land covered
and described by said above-mentioned Titulo de Propriedad No. 4136 of the
Registry of Deeds of Bulacan, excluding therefrom: (a) all lands which have already
been legally and validly titled under the Torrens System, by private persons, or the
Republic of the Philippines, or any of its instrumentalities or agencies; (b) all lands
declared by the government as reservations for public use and purposes; (c) all lands
belonging to the public domain; and, (d) all portions thereof which had been sold,
quitclaimed and/or previously excluded by the Administrator and duly approved by a
final order of the Court, except those which may hereafter be set aside, after due
consideration on a case to case basis, of various motions to set aside the said Court
order which approved the said sales, quit-claims, and/or exclusions;
(c) The designation of Atty. Justino Z. Benito as co- administrator, is hereby revoked
to take effect immediately, to obviate any confusion in the administration of the
Estate, and to fix the responsibilities of administration to the co-heir Administrator,
Engracio San Pedro, whose appointment as such is hereby confirmed. The said co-
administrator Justino Z. Benito is hereby ordered to render his final accounting of his
co-administration of the Estate, within thirty (30) days from receipt of copy hereof;
No Costs.
SO ORDERED. 29
On May 17, 1978, the Republic moved for a reconsideration of the above decision. 30
On June 5, 1978, administrator Engracio San Pedro filed a Manifestation and Petition for the Inhibition
of the then newly appointed Presiding Judge Oscar Fernandez. On July 12, 1978, after the Republic
filed its Reply to the Petition for Inhibition, Judge Fernandez denied the said petition. 31
After hearings were conducted on the Republic's Motion for Reconsideration, Judge Fernandez
issued the aforestated Order 32 dated November 17, 1978 which, in essence, set aside Judge
Bagasao's decision dated April 25, 1978 by declaring Titulo de Propriedad No. 4136 as null and void
and of no legal force and effect, thus, excluding all lands covered by Titulo de Propriedad No. 4136
from the inventory of the estate of the late Mariano San Pedro y Esteban.
The petitioners-heirs of the late Mariano San Pedro y Esteban appealed to the Court of Appeals and
alleged that the lower court did not act with impartiality when it granted the Republic's motion for
reconsideration which was merely pro forma, thereby overturning a prior declaration by the same
court of the existence, genuineness and authenticity of Titulo de Propriedad No. 4136 in the name of
the deceased Mariano San Pedro. 33
On March 11, 1992, the Court of Appeals dismissed the appeal of the petitioners-heirs.34 In affirming
the assailed Order dated November 17, 1978, the appellate court focused its discussion solely on the
issue of whether or not the lower court erred in declaring Titulo de Priopriedad No. 4136 null and void.
The appellate court ruled that the petitioners-heirs failed to controvert the Republic's claim that Titulo
de Propriedad No. 4136 is invalid on the following bases; (a) non-production of the original of the
subject title; (b) inadmissibility of the photostat copies of the said title; and (c) non-registration of the
subject Spanish title under Act No. 496 (Land Registration Act) as required by Presidential Decree
No. 892 (Discontinuance of the Spanish Mortgage System of Registration and of the Use of Spanish
Titles as Evidence in Land Registration Proceedings).
The petitioners-heirs moved for a reconsideration of the Court of Appeals' decision by invoking certain
cases wherein the validity of Titulo de Propriedad No. 4136 had been allegedly recognized. The Court
of Appeals refused to be swayed and denied the motion for reconsideration for lack of merit. 35
Hence, the herein petition, 36 docketed as G. R. No. 106496, was filed on September 18, 1992.
After the parties filed their respective pleadings in G.R. Nos. 103727 and 106496, this Court resolved
to consolidate both cases on September 15,
1994. 3 7
While these cases were pending before us, several parties filed separate motions for intervention
which we denied on different occasions for lack of merit.
In G.R No. 103727, the grounds relied upon for the grant of the petition are as follows:
I. That petitioner-appellant as plaintiff in Civil Case No. Q-88-447, RTC, Branch 104
was denied due process of law due to gross negligence of lawyer, which respondent
court grossly failed to take cognizance of.
II. That the respondent court committed grave abuse of discretion tantamount to lack
of jurisdiction in not remanding the case for trial and in affirming the lower court's null
and void judgment.38
In G.R No. 106496, the petitioners-heirs present the following assignment of errors, to wit:
First. Respondent Court of Appeals affirmed the appealed order which resolved a
question of title or ownership over which the lower court as an intestate court has no
jurisdiction and over the vigorous and repeated objections of the petitioners. 39
Third. Respondent Court of Appeals has no jurisdiction to uphold the order of Judge
Fernandez who without jurisdiction, set aside the order of Judge Puno and the
decision of Judge Bagasao, both of which were already final. 41
Fourth. Respondent Court of Appeals was unmindful of the fact that Judge Fernandez
was appointed by President Marcos to reverse Judge Bagasao, regardless of the
evidence, thereby unmindful that petitioners were denied the cold neutrality of an
impartial tribunal.42
Fifth. Respondent Court of Appeals erred in not considering the evidence presented
before Judges Echiverri, Puno and Bagasao and merely adopted the order of Judge
Fernandez who never received a single piece of evidence, notwithstanding the 1906
Guide title over Hacienda Angono in Binangonan, Rizal, the boundary owner stated
therein being Don Mariano San Pedro y Esteban, and the November 1991 en
banc decision of the Supreme Court upholding the Guido title. 43
Of paramount importance over and above the central issue of the probative value of the petitioners'
Spanish title in these cases is the propriety of the lower court's resolution of the question of ownership
of the subject San Pedro estate in the special proceedings case. Thus, before we address ourselves
to the issue of whether or not petitioners' Titulo de Propriedad No. 4136 is null and void and of no
legal force and effect, it is best that we first determine whether or not the lower court, acting as a
probate court, in the petition for letters of administration, committed grave abuse of discretion
amounting to lack of jurisdiction in settling the issue of ownership of the San Pedro estate covered by
Titulo Propriedad No. 4136.
Petitioners-heirs, in G.R No. 106496, on the one hand, contend that the lower court, then CFI,
Bulacan, Branch IV, had no jurisdiction as an "intestate court" 44 to resolve the question of title or
ownership raised by the public respondent Republic of the Philippines, through the Office of the
Solicitor General in the intestate proceedings of the estate of Mariano San Pedro y Esteban. 45
The public respondent, on the other hand, invoking its sovereign capacity as parens patriae, argues
that petitioners' contention is misplaced considering that when the Republic questioned the existence
of the estate of Mariano San Pedro y Esteban, the lower court became duty-bound to rule on the
genuineness and validity of Titulo de Propriedad 4136 which purportedly covers the said estate,
otherwise, the lower court in the intestate proceedings would be mistakenly dealing with properties
that are proven to be part of the State's patrimony or improperly included as belonging to the estate of
the deceased. 46
A probate court's jurisdiction is not limited to the determination of who the heirs are and what shares
are due them as regards the estate of a deceased person. Neither is it confined to the issue of the
validity of wills. We held in the case of Maniñgat v. Castillo, 4 7 that "the main function of a probate
court is to settle and liquidate the estates of deceased persons either summarily or through the
process of administration." Thus, its function necessarily includes the examination of the properties,
rights and credits of the deceased so as to rule on whether or not the inventory of the estate properly
included them for purposes of distribution of the net assets of the estate of the deceased to the lawful
heirs.
Parenthetically, questions of title pertaining to the determination prima facie of whether certain
properties ought to be included or excluded from the inventory and accounting of the estate subject of
a petition for letters of administration, as in the intestate proceedings of the estate of the late Mariano
San Pedro y Esteban, maybe resolved by the probate court. In this light, we echo our pronouncement
in the case of Garcia v. Garcia 49 that:
. . . The court which acquired jurisdiction over the properties of a deceased person
through the filing of the corresponding proceedings, has supervision and control over
the said properties, and under the said power, it is its inherent duty to see that the
inventory submitted by the administrator appointed by it contains all the properties,
rights and credits which the law requires the administrator to set out in his inventory.
In compliance with this duty, the court has also inherent power to determine what
properties, rights and credits of the deceased should be included in or excluded from
the inventory. Should an heir or person interested in the properties of a deceased
person duly call the court's attention to the fact that certain properties, rights or credits
have been left out in the inventory, it is likewise the court's duty to hear the
observations, with power to determine if such observations should be attended to or
not and if the properties referred to therein belong prima facie to the intestate, but no
such determination is final and ultimate in nature as to the ownership of the said
properties. 50 [Emphasis Supplied]
In view of these disquisitions of this Court, we hold that the lower court did not commit any reversible
error when it issued the Order dated November 17, 1978 which set aside Judge Bagasao's decision
dated April 25, 1978 and declared Titulo de Propriedad No. 4136 as null and void, consequently
excluding all lands covered by the said title from the inventory of the estate of the late Mariano San
Pedro y Esteban.
A corollary issue sought to be ventilated by the petitioners-heirs as regards the assailed Order of
November 17, 1978 is the impropriety of Judge Fernandez' act of granting the motion for
reconsideration filed by the public respondent Republic since, Judge Fernandez did not personally
hear the intestate case. Petitioners thus dubbed him as a "reviewing judge." By setting aside the
Decision dated April 25, 1978 of his predecessors in CFI, Branch IV, Baliuag, Bulacan, namely, Judge
Benigno Puno and Judge Agustin C. Bagasao, respectively, Judge Fernandez, acting as a "reviewing
judge," proceeded without authority and/or jurisdiction. 51
There is no question that, barring any serious doubts as to whether the decision arrived at is fair and
just, a newly appointed judge who did not try the case can decide the same as long as the record and
the evidence are all available to him and that the same were taken into consideration and thoroughly
studied. The "reviewing judge" argument of the petitioners-heirs has no leg to stand on considering
that "the fact that the judge who penned the decision did not hear a certain case in its entirety is not a
compelling reason to jettison his findings and conclusion inasmuch as the full record was available to
him for his perusal." 52 In the case at bar, it is evident that the 41-page Order dated November 17,
1978 of Judge Fernandez bespeaks of a knowledgeable and analytical discussion of the rationale for
reconsidering and setting aside Judge Bagasao's Decision dated April 25, 1978.
Considering the definiteness of our holding in regard to the correctness of Judge Fernandez'
disposition of the case, i.e., the issuance by the lower court of the assailed Order of November 17,
1978, we now focus on the core issue of whether or not the lower court in G.R No. 106496 committed
reversible error in excluding from the inventory of the estate of the deceased Mariano San Pedro y
Esteban all lands covered by Titulo de Propriedad No. 4136 primarily on the ground that the said title
is null and void and of no legal force and effect. Juxtaposed with this is the issue of whether or not the
appellate court, in both cases, G.R. Nos. 103727 and 106496, erred in not recognizing Titulo de
Propriedad No. 4136 as evidence to prove ownership by the Late Mariano San Pedro of the lands
covered thereby.
It is settled that by virtue of Presidential Decree No. 892 which took effect on February 16, 1976, the
system of registration under the Spanish Mortgage Law was abolished and all holders of Spanish
titles or grants should cause their lands covered thereby to be registered under the Land Registration
Act 53 within six (6) months from the date of effectivity of the said Decree or until August 16,
1976. 54 Otherwise, non-compliance therewith will result in a re-classification of their lands. 55 Spanish
titles can no longer be countenanced as indubitable evidence of land ownership. 56
Sec. 1. The system of registration under the Spanish Mortgage Law is discontinued,
and all lands recorded under said system which are not yet covered by Torrens title
shall be considered as unregistered lands.
All holders of Spanish titles or grants should apply for registration of their lands under
Act No. 496, otherwise known as the Land Registration Act, within six (6) months
from the effectivity of this decree. Thereafter, Spanish titles cannot be used as
evidence of land ownership in any registration proceedings under the Torrens
system.
Hereafter, all instruments affecting lands originally registered under the Spanish
Mortgage Law may be recorded under Section 194 of the Revised Administrative
Code, as amended by Act. 3344.
The Whereas clauses of the aforesaid Decree specify the underlying policies for its passage, to wit:
WHEREAS, statistics in the Land Registration Commission show that recording in the
system of registration under the Spanish Mortgage Law is practically nil and that this
system has become obsolete;
WHEREAS, Spanish titles to lands which have not yet been brought under the
operation of the Torrens system, being subject to prescription, are now ineffective to
prove ownership unless accompanied by proof of actual possession;
In the case of Director of Lands v. Heirs of Isabel Tesalona, et al., 57 we took cognizance of this
Decree and thus held that caution and care must be exercised in the acceptance and admission of
Spanish titles taking into account the numerous fake titles that have been discovered after their
supposed reconstitution subsequent to World War II.
In both cases, petitioners-heirs did not adduce evidence to show that Titulo de Propriedad 4136 was
brought under the operation of P.D. 892 despite their allegation that they did so on August 13,
1976. 58 Time and again we have held that a mere allegation is not evidence and the party who
alleges a fact has the burden of proving it. 59 Proof of compliance with P.D. 892 should be the
Certificate of Title covering the land registered.
In the petition for letters of administration, it was a glaring error on the part of Judge Bagasao who
rendered the reconsidered Decision dated April 25, 1978 to have declared the existence,
genuineness and authenticity of Titulo de Propriedad No. 4136 in the name of the deceased Mariano
San Pedro y Esteban despite the effectivity of P.D. No. 892. Judge Fernandez, in setting aside Judge
Bagasao's decision, emphasized that Titulo de Propriedad No. 4136, under P.D. 892, is inadmissible
and ineffective as evidence of private ownership in the special proceedings case. He made the
following observations as regards the Titulo, to wit:
Some, under the guise of being benign heroes even feigned donations to charitable
and religious organizations, including veterans' organizations as smoke screen to the
gargantuan fraud they have committed and to hood wink further other gullible and
unsuspecting victims. 60
In the same light, it does not escape this Court's onomatopoeic observation that the then heir-judicial
administrator Engracio San Pedro who filed the complaint for recovery of possession and/or
reconveyance with damages in G.R No. 103727 on August 15, 1988 invoked Judge Bagasao's
Decision of April 25, 1978 in support of the Titulo's validity notwithstanding the fact that, by then, the
said Decision had already been set aside by Judge Fernandez' Order of November 17, 1978. We are
in accord with the appellate courts' holding in G.R No. 103727 insofar as it concludes that since the
Titulo was not registered under Act No. 496, otherwise known as the Land Registration Act, said
Titulo is inferior to the registered titles of the private respondents Ocampo, Buhain and Dela Cruz.
This Court can only surmise that the reason for the non-registration of the Titulo under the Torrens
system is the lack of the necessary documents to be presented in order to comply with the provisions
of P.D. 892. We do not discount the possibility that the Spanish title in question is not genuine,
especially since its genuineness and due execution have not been proven. In both cases, the
petitioners heirs were not able to present the original of Titulo de Propriedad No. 4136 nor a genuine
copy thereof. In the special proceedings case, the petitioners-heirs failed to produce the Titulo despite
a subpoena duces tecum (Exh. "Q-RP") to produce it as requested by the Republic from the then
administrators of the subject intestate estate, Engracio San Pedro and Justino Benito, and the other
interested parties. As an alternative to prove their claim of the subject intestate estate, the petitioners
referred to a document known as "hypoteca" (the Spanish term is 'hipoteca') allegedly appended to
the Titulo. However, the said hypoteca was neither properly identified nor presented as evidence.
Likewise, in the action for recovery of possession and/or reconveyance with damages, the petitioners-
heirs did not submit the Titulo as part of their evidence. Instead, only an alleged illegible copy of the
Titulo was presented. (Exhs. "C-9" to "C-19").
The Best Evidence Rule as provided under Rule 130, section 2 of the Rules of Court is stated in
unequivocal terms. Subparagraphs (a) and (b) of the said Rule read:
(a) When the original has been lost, destroyed, or cannot be produced in court;
(b) When the original is in the possession of the party against whom the evidence is
offered, and the latter fails to produce it after reasonable notice;
Sec 4. Secondary evidence when original is lost or destroyed — When the original
writing has been lost or destroyed, or cannot be produced in court, upon proof of its
execution and loss or destruction or unavailability, its contents may be proved by a
copy, or by a recital of its contents in some authentic document, or by the recollection
of witnesses.
Thus, the court shall not receive any evidence that is merely substitutionary in its nature, such
as photocopies, as long as the original evidence can be had. In the absence of a clear
showing that the original writing has been lost or destroyed or cannot be produced in court,
the photocopy submitted, in lieu thereof, must be disregarded, being unworthy of any
probative value and being an inadmissible piece of evidence. 61
Hence, we conclude that petitioners-heirs failed to establish by competent proof the existence and
due execution of the Titulo. Their explanation as to why the original copy of the Titulo could not be
produced was not satisfactory. The alleged contents thereof which should have resolved the issue as
to the exact extent of the subject intestate estate of the late Mariano San Pedro were not distinctly
proved. In the case of Ong Ching Po v. Court of Appeals, 62 we pointed out that:
Secondary evidence is admissible when the original documents were actually lost or
destroyed. But prior to the introduction of such secondary evidence, the proponent
must establish the former existence of the document. The correct order of proof is as
follows: existence; execution; loss; contents. This order may be changed if necessary
in the discretion of the court. 63
In upholding the genuineness and authenticity of Titulo de Propriedad No. 4136, Judge Bagasao, in
his decision, relied on: (1) the testimony of the NBI expert, Mr. Segundo Tabayoyong, pertaining to a
report dated January 28, 1963 denominated as "Questioned Documents Report No. 230-163"; (2) a
photostat copy of the original of the Titulo duly certified by the then Clerk of Court of the defunct Court
of First Instance of Manila; and (3) the hipoteca Registered in the Register of Deeds of Bulacan on
December 4, 1894.
Judge Fernandez, in his November 1978 Order which set aside Judge Bagasao's April 1978 decision
correctly clarified that the NBI report aforementioned was limited to the genuineness of the two
signatures of Alejandro Garcia and Mariano Lopez Delgado appearing on the last page of the Titulo,
not the Titulo itself. When asked by the counsel of the petitioners-heirs to admit the existence and due
execution of the Titulo, the handling Solicitor testified:
ATTY. BRINGAS:
COURT:
ATTY. AGCAOILI:
ATTY. BRINGAS:
ATTY. AGCAOILI:
We are now stating before this court that there was such a document
examined by the NBI insofar as the signatures of Alejandro Garcia
and Manuel Lopez Delgado are concerned and they are found to be
authentic. 64
The following significant findings of Judge Fernandez further lend credence to our pronouncement
that the Titulo is of dubious validity:
. . . the NBI in its Questioned Document Report No. 448-977 dated September 2,
1977 (Exhibit "O-RP") concluded that the document contained material alterations as
follows:
a) On line 15 of "p, 1, Title" and on line 5 of "p. 2, Title," the word "Pinagcamaligan"
was written after "Pulo;"
c) On Line 18, "p. 1, Title," "mil" was written at the end of "tres" in "tres mil;"
d) On line 19 of "p. 1, Title," a semblance of "mil" was written after "setentay tres;"
The plain and evident purpose was definitely to enlarge the area of the titulo.
According to Mr. Tabayoyong of the NBI, there are still "pieces of black ashes around
the rings of the portions which are indications of burnings". The burnings were made
on the very portions where there were previous erasures, alterations and
intercalations. Understandably, the burnings were done to erase traces of the criminal
act. 65
In the case of National Power Corporation v. Court of Appeals, et a1. 66 Justice Ameurfina Melencio-
Herrera, in reinstating the trial court's judgment therein, sustained the finding that:
. . . The photostatic copy (in lieu of the lost original) of the Spanish title in the name of
Mariano San Pedro shows obvious alterations and intercalations in an attempt to
vastly increase the area and change the location of the land described in the original
title . . .
Anent the inadmissibility as evidence of the photostat copy of the Titulo, we sustain the lower court's
analysis, as affirmed by the appellate court, viz:
To begin with, the original of Titulo de Propiedad No. 4136 was never presented in
Court. Upon request of the Government, a subpoena duces tecum (Exhibit "Q-RP")
was issued to the two administrators, Engracio San Pedro and Justino Benito as well
as to other interested parties to produce the original of Titulo de Propriedad No. 4136.
But no one produced the titulo. What the parties did was to pass the buck to one
another.
Without any plausible explanation at all on as to why the original could not be
produced, the Court cannot take cognizance of any secondary evidence.
It was explained that the titulo after changing hands, finally fell into the hands of a
certain Moon Park of Korea but who later disappeared and that his present
whereabouts could not be known.
Strangely enough, despite the significance of the titulo, no serious efforts on the part
of the claimants-heirs were exerted to retrieve this document of vital importance
despite the Court order to produce it in order to determine its authenticity.
It would not be enough to simply say that Moon Park's whereabouts are unknown or
that there are not enough funds to locate him. The only logical conclusion would be
that the original would be adverse if
produced. 67
As regards the hipoteca which allegedly defines the metes and bounds of the subject intestate estate,
the petitioners-heirs have not established the conditions required by law for their admissibility as
secondary evidence to prove that there exists a document designated as Titulo de Propriedad No.
4136. Hence, the same acquires no probative value. 68
At this juncture, our decision dated June 28, 1968 in Director of Forestry, et al. v. Hon. Emmanuel
M. Muñoz, as Judge of the Court of First Instance of Bulacan, Branch I, et al. 69 is enlightening. In said
case, private respondent, Pinaycamaligan Indo-Agro Development Corporation, Inc., (PIADECO),
claimed to be the owner of some 72,000 hectares of land located in the municipalities of Angat,
Norzagaray and San Jose del Monte, province of Bulacan, and in Antipolo and Montalban, province of
Rizal. To prove its ownership Piadeco relied on Titulo de Propriedad No. 4136 dated April 28, 1894.
Scholarly opining that the Titulo is of doubtful validity, 70 Justice Conrado V. Sanchez, speaking for the
Court, stated that:
But an important moiety here is the deeply disturbing intertwine of two undisputed
facts. First. The Title embraces land "located in the Provinces of Bulacan, Rizal,
Quezon, and Quezon City." Second. The title was signed only by the provincial
officials of Bulacan, and inscribed only in the Land Registry of Bulacan. Why? The
situation, indeed, cries desperately for a plausible answer.
Here, no definite area seems to have been mentioned in the title. In Piadeco's
"Rejoinder to Opposition" dated April 28, 1964 filed in Civil Case 3035-M, it specified
that area covered by its Titulo de Propiedad as 74,000 hectares (Rollo in L-24796, p.
36). In its "Opposition" of May 13, 1964 in the same case, it described the land as
containing 72,000 hectares (Id., p. 48). Which is which? This but accentuates the
nebulous identity of Piadeco's land, Piadeco's ownership thereof then equally suffers
from vagueness, fatal at least in these proceedings.
Piadeco asserts that Don Mariano San Pedro y Esteban, the original owner
appearing on the title, acquired his rights over the property by prescription under
Articles 4 and 5 of the Royal Decree of June 25, 1880, (Rollo of L-24796, p. 184) the
basic decree that authorized adjustment of lands. By this decree, applications for
adjustment — showing the location, boundaries and area of land applied for — were
to be filed with the Direccion General de Administration Civil, which then ordered
the classification and survey of the land with the assistance of the interested party or
his legal representative (Ponce, op. cit., p. 22).
The Royal Decree of June 5, 1880 also fixed the period for filing applications for
adjustment at one year from the date of publication of the decree in the Gaceta de
Manila on September 10, 1880, extended for another year by the Royal Order of July
15, 1881 (Ibid.). If Don Mariano sought adjustment within the time prescribed, as he
should have, then, seriously to be considered here are the Royal Orders of November
25, 1880 and of October 26, 1881, which limited adjustment to 1,000 hectares of
arids lands, 500 hectares of land with trees and 100 hectares of irrigable lands (See:
Government v. Avila, 46 Phil. 146, 154; Bayot v. Director of Lands, 98 Phil. 935, 941.
Article 15 of the Royal Decree of January 26, 1889 limited the area that may be
acquired by purchase to 2,500 hectares, with allowable error up to 5%. Ponce, op cit.,
p. 19). And, at the risk of repetition, it should be stated again that Piadeco's Titulo is
held out to embrace 72,000 or 74,000 hectares of land.
But if more were needed, we have the Maura Law (Royal Decree of February 13,
1894), published in the Gaceta de Manila on April 17, 1894 (Ibid., p. 26;
Venture, op. cit., p. 28). That decree required a second petition for adjustment within
six months from publication, for those who had not yet secured their titles at the time
of the publication of the law (Ibid.). Said law also abolished the provincial boards for
the adjustment of lands established by Royal Decree of December 26, 1884, and
confirmed by Royal Decree of August 31, 1888, which boards were directed to deliver
to their successors, the provincial boards established by Decree on Municipal
Organization issued on May 19, 1893, all records and documents which they may
hold in their possession (Ramirez v. Director of Land, supra, at p. 124).
Doubt on Piadeco's title here supervenes when we come to consider that title was
either dated April 29 or April 25, 1894, twelve or eight days after the publication of the
Maura Law.
Let us now take a look, as near as the record allows, at how Piadeco exactly acquired
its rights under the Titulo. The original owner appearing thereon was Don Mariano
San Pedro y Esteban. From Piadeco's explanation — not its evidence (Rollo of L-
24796, pp. 179-188) we cull the following: On December 3, 1894, Don Mariano
mortgaged the land under pacto de retro, redeemable within 10 years, for P8,000.00
to one Don Ignacio Conrado. This transaction was said to have been registered or
inscribed on December 4, 1894. Don Mariano Ignacio died, his daughter, Maria
Socorro Conrado, his only heir, adjudicated the land to herself. At about the same
time, Piadeco was organized. Its certificate of registration was issued by the
Securities and Exchange Commission on June 27, 1932. Later, Maria Socorro, heir of
Don Ignacio, became a shareholder of Piadeco when she conveyed the land to
Piadeco's treasurer and an incorporator, Trinidad B. Estrada, in consideration of a
certain amount of Piadeco shares. Thereafter, Trinidad B. Estrada assigned the land
to Piadeco. Then came to the scene a certain Fabian Castillo, appearing as sole heir
of Don Mariano, the original owner of the land. Castillo also executed an affidavit of
adjudication to himself over the same land, and then sold the same to Piadeco.
Consideration therefor was paid partially by Piadeco, pending the registration of the
land under Act 496.
The question may well be asked: Why was full payment of the consideration to
Fabian Castillo made to depend on the registration of the land under the Torrens
system, if Piadeco was sure of the validity of Titulo de Propiedad 4136? This, and
other factors herein pointed out, cast great clouds of doubt that hang most
conspicuously over Piadeco's title.
Moreover, in the case of Widows & Orphans Association, Inc. v. Court of Appeals, 71 we categorically
enunciated that the alleged Spanish title, Titulo de Propriedad No. 4136, had become bereft of any
probative value as evidence of land ownership by virtue of P.D. 892 as contained in our Resolution
dated February 6, 1985 in a related case entitled Benito and WIDORA v. Ortigas docketed as G.R No.
69343. On March 29, 1985, an entry of final judgment was made respecting G.R. No. 69343.
Under the doctrine of conclusiveness of judgment, the prior declarations by this Court relating to the
issue of the validity of Titulo de Propriedad No. 4136 preclude us from adjudicating otherwise. In
the Muñoz case, we had cast doubt on the Titulo's validity. In the WIDORA case, the Titulo's
nullification was definitive. In both cases, the Republic and the estate of Mariano San Pedro y
Esteban were on opposite ends before this bench. In the case en banc of Calalang v. Register of
Deeds of Quezon City, 72 the Court explained the concept of conclusiveness of judgment, viz:
The issue, whether Titulo de Propriedad No. 4136 is valid or not, must now be laid to rest.
The Titulo cannot be relied upon by the petitioners-heirs or their privies as evidence of
ownership. In the petition for letters of administration the inventory submitted before the
probate court consisted solely of lands covered by the Titulo. Hence, there can be no "net
estate" to speak of after the Titulo's exclusion from the intestate proceedings of the estate of
the late Mariano San Pedro.
In G.R No. 103727, the Titulo cannot be superior to the Torrens Titles of private respondents Buhain,
Ocampo and Dela Cruz, namely TCT No. 372592 (Exh. "2", Buhain), TCT No. 8982 (Exh. "2" — De
Ocampo) and TCT No. 269707 (Exh. "2" — Dela Cruz). 73 Under the Torrens system of registration,
the titles of private respondents became indefeasible and incontrovertible one year from its final
decree. 74 More importantly, TCT Nos. 372592, 8982, 269707, having been issued under the Torrens
system, enjoy the conclusive presumption of validity. 75 As a last hurrah to champion their claim to the
vast estate covered by the subject Spanish title, the petitioners-heirs imputed fraud and bad faith
which they failed to prove on the part of the private respondents as regards their Torrens titles and
accused their own counsel of gross negligence for having failed to call the proper witnesses from the
Bureau of Forestry to substantiate the petitioners-heirs' claim that OCT No. 614 from which private
respondents were derived is null and void. It is an elementary legal principle that the negligence of
counsel binds the client. 76 The records show that the petitioners-heirs were not at all prejudiced by
the non-presentation of evidence to prove that OCT No. 614 is a nullity considering that their
ownership itself of the lands being claimed was not duly proved. In the case of Villa Rhecar Bus
v. Dela Cruz, et al., 77 we held:
It is unfortunate that the lawyer of the petitioner neglected his responsibilities to his
client. This negligence ultimately resulted in a judgment adverse to the client. Be that
as it may, such mistake binds the client, the herein petitioner. As a general rule, a
client is bound by the mistakes of his counsel. (Que v. Court of Appeals, 101 SCRA
13 [1980] Only when the application of the general rule would result in serious
injustice should an exception thereto be called for. Under the circumstances obtaining
in this case, no undue prejudice against the petitioner has been satisfactorily
demonstrated. At most, there is only an unsupported claim that the petitioner bad
been prejudiced by the negligence of its counsel, without an explanation to that effect.
Sans preponderance of evidence in support of the contention that the petitioners-heirs were
denied due process on account of the negligence of their counsel, the writ of certiorari is
unavailing.
It bears repeating that the heirs or successors-in-interest of Mariano San Pedro y Esteban are not
without recourse. Presidential Decree No. 892, quoted hereinabove, grants all holders of Spanish
Titles the right to apply for registration of their lands under Act No. 496, otherwise known as the Land
Registration Act, within six (6) months from the effectivity of the Decree. Thereafter, however, any
Spanish Title, if utilized as evidence of possession, cannot be used as evidence of ownership in any
land registration proceedings under the Torrens system.
All instruments affecting lands originally registered under the Spanish Mortgage Law may be recorded
under Section 194 of the Revised Administrative Code, as amended by Act 3344.
In view hereof, this is as good a time as any, to remind the Solicitor General to be more vigilant in
handling land registration cases and intestate proceedings involving portions of the subject estate. It
is not too late in the day for the Office of the Solicitor General to contest the Torrens titles of those
who have acquired ownership of such portions of land that rightfully belong to the State.
In fine, the release of the matured Land Bank Capital Bonds issued in favor of Mariano San Pedro y
Esteban on August 13, 1968 sought by one Catalino San Pedro, alleged heir, legal holder and owner
of Titulo de Propriedad No. 4136 is a matter not ripe for adjudication in these cases. Firstly, Catalino
San Pedro is not a party in any of the two cases before us for review, hence, this Court in a
Resolution dated May 10, 1993, 78 denied Catalino's motion for leave to reopen and/or new trial. And,
secondly, the aforementioned bonds were not included in the inventory of the subject estate
submitted by then administrators, Engracio San Pedro and Justino Benito before the probate court.
WHEREFORE, in view of all the foregoing, the petitions in G.R Nos. 103727 and 106496 are hereby
DISMISSED for lack of merit.
Consequently, in G.R No. 103727, the decision of the Court of Appeals dated January 20, 1992 is
hereby AFFIRMED.
(1) Titulo de Propriedad No. 4136 is declared null and void and, therefore, no rights
could be derived therefrom;
(2) All lands covered by Titulo de Propriedad No. 4136 are excluded from the
inventory of the estate of the late Mariano San Pedro y Esteban;
(3) The petition for letters of administration, docketed as Special Proceedings No.
312-B, should be, as it is, hereby closed and terminated.
(4) The heirs, agents, privies and/or anyone acting for and in behalf of the estate of
the late Mariano San Pedro y Esteban are hereby disallowed to exercise any act of
possession or ownership or to otherwise, dispose of in any manner the whole or any
portion of the estate covered by Titulo de Propriedad No. 4136; and they are hereby
ordered to immediately vacate the same, if they or any of them are in possession
thereof.
SO ORDERED.