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G.R. No.

141877 August 13, 2004


Gregorio F. Averia and Sylvanna A. Vergara, representing the Absentee Heir Teresa
Averia, petitioners
vs.
Domingo Averia, Angel Averia, Felipe Averia, and The Heirs of Felimon F.
Averia, respondents

Ponente: Associate Justice Carpio-Morales

FACTS:
Macaria Francisco and Marcos Averia contracted marriage which bore 6 issues, namely:
Gregorio, Teresa, Domingo, Angel, Felipe and Felimon. Macaria was widowed and she contracted
a second marriage with Roberto Romero which bore no issue. Romero died leaving three adjoining
residential lots. In a Deed of Extrajudicial Partition and Summary Settlement of the Estate of
Romero, the house and lot containing 150sq.m. at Extremadura Street, Sampaloc was apportioned
to Macaria. Transfer Certificate of Title covering the Extremadura property was accordingly issued
in the name of Macaria. Alleging that fraud was employed by her co-heirs in the partition of the
estate of Romero, Macaria filed an action for annulment of title and damages before the Court of
First Instance of Manila against her co-heirs Domingo Viray, et al. The decision of the Court of
Appeals adjudged Macaria as entitled to an additional 30sq.m. of the estate. Macaria's son Gregorio
and his family and daughter Teresa's family lived with her at Extremadura until her death in 1983.
Close to six years after Macaria's demise her children Domingo, et.al. filed before the RTC-Manila
a complaint against their brother Gregorio and niece Sylvanna Vergara "representing her absentee
mother" Teresa Averia, for judicial partition of the Extremadura property. The defendants in their
Answer to the Complaint, countered that the plaintiffs are not co-owners of the Extremadura
property as ½ thereof is solely owned by Gregorio which was verbally sold by Macaria before she
died to the spouses Gregorio and Agripina and 1/6 of the other half representing Domingo’s share
thereof had already been sold and assigned by Domingo to Gregorio and his wife who died in
1987. RTC rendered a decision in favor of Gregorio Averia. CA reversed the trial court decision.

ISSUE:

Whether or not CA erred in finding that the alleged conveyances by Macaria and Domingo to
Gregorio is unenforceable.

RULING:

YES. Contrary then to the finding of the CA, the admission of parol evidence upon which
the trial court anchored its decision in favor of respondents is not irregular and is not foreclosed
by Article 1405. Following Article 1405 of the Civil Code, the contracts which infringed the
Statute of Frauds were ratified by the failure to object to the presentation of parol evidence, hence,
enforceable. Indeed, except for the testimony of petitioner Gregorio bearing on the verbal sale to
him by Macaria of the property, the testimonies of petitioners' witnesses Sylvanna Vergara
Clutario and Flora Lazaro Rivera bearing on the same matter were not objected to by respondents.
In any event, the Statute of Frauds applies only to executory contracts and not to contracts which
are either partially or totally performed. However it is not enough for a party to allege partial
performance in order to render the Statute of Frauds inapplicable; such partial performance must
be duly proved. The partial performance may be proved by either documentary or oral evidence.
In the case at bar, the testimony of Sylvana Vergara Clutario, daughter of Teresa, in fact was more
than sufficient to prove the conveyance of half of the subject property by Macaria to Gregorio. As
to the sale of Domingo's 1/6 share to Gregorio, petitioners were able to establish said transaction
by parol evidence, consisting of the testimonies of Gregorio Averia, Jr., Veronica Averia and
Felimon Dagondon the presentation of which was, it bears repeating, not objected to.

COMMENT:

The ruling of the Supreme Court is justified. Under Article 1405, there are two ways of
ratification of contracts infringing the Statutes of Fraud: (1) failure to object to the presentation of
oral evidence; (2) acceptance of benefits under them. In the case at bar, the testimonies of
petitioners' witnesses Sylvanna Vergara Clutario and Flora Lazaro Rivera were not objected to by
respondents. Moreover, there was total performance of the contracts because full payment of the
objects thereof have already been made and the vendee Gregorio have, even after Macaria's death,
continued to occupy the property until and after the filing in 1989 of the complaint subject of the
case at bar as in fact he is still occupying it, hence, Statute of Fraud cannot be applied in this case
in accordance to Article 1403 of the Civil Code.

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