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  • City of Tanauan v. Millonte

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    The Supreme Court denied the petition of the City of Tanauan seeking to invalidate the decision of lower courts declaring null and void a deed of absolute sale of property from 1970. The lower courts and the Supreme Court found that the deed was null and void because the registered owners of the property, the Gonzaga siblings, were already dead when the deed was purportedly executed. As such, the action to declare the deed null was imprescriptible under Article 1410 of the Civil Code. The title transferred to the City and subsequent transactions were also invalid. Declaring the deed null would restore the property to the condition before the invalid execution.

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    42. CITY OF TANAUAN V. MILLONTE

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    The Supreme Court denied the petition of the City of Tanauan seeking to invalidate the decision of lower courts declaring null and void a deed of absolute sale of property from 1970. The lower courts and the Supreme Court found that the deed was null and void because the registered owners of the property, the Gonzaga siblings, were already dead when the deed was purportedly executed. As such, the action to declare the deed null was imprescriptible under Article 1410 of the Civil Code. The title transferred to the City and subsequent transactions were also invalid. Declaring the deed null would restore the property to the condition before the invalid execution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    100 views2 pages

    City of Tanauan v. Millonte

    Uploaded by

    Jay jogs
    The Supreme Court denied the petition of the City of Tanauan seeking to invalidate the decision of lower courts declaring null and void a deed of absolute sale of property from 1970. The lower courts and the Supreme Court found that the deed was null and void because the registered owners of the property, the Gonzaga siblings, were already dead when the deed was purportedly executed. As such, the action to declare the deed null was imprescriptible under Article 1410 of the Civil Code. The title transferred to the City and subsequent transactions were also invalid. Declaring the deed null would restore the property to the condition before the invalid execution.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    of 2

    CITY OF TANAUAN, PETITIONER, VS. GLORIA A.

    MILLONTE, RESPONDENT

    G.R. No. 219292, June 28, 2021

    Hernando, J. – Third Division

    NATURE OF THE ACTION:

    Petition for Review on Certiorari assailing the Decision and Resolution of the Court of
    Appeals, which affirmed the Decision of the Regional Trial Court of Tanauan City, Batangas.

    FACTS:

    Lucio Gonzaga is one of the registered owners of the lot covered by Original Certificate
    of Title No. 3243. Gloria A. Millonte is Lucio's granddaughter and direct descendant. On May
    12, 2004, Millonte filed a complaint against City of Tanauan, praying for the declaration of
    nullity of the Deed of Absolute Sale7 dated February 10, 1970. Millonte alleged that the
    Gonzaga siblings were already dead when the said deed was executed, hence, they could not
    have signed the document. In its Answer, the City of Tanauan countered that Millonte's right to
    tile an action for the annulment of the Deed of Absolute Sale has already prescribed. More than
    34 years have passed since the execution of the said deed and more than 14 years from the
    registration of the sale in the Register of Deeds of Tanauan City.

    The RTC ruled that the Deed of Absolute Sale, as well as TCT T-42198, was invalid
    since the Gonzaga siblings were already dead at the time of the deed's execution on February 10,
    1970. On appeal, the CA affirmed the Decision of the RTC.

    The City of Tanauan argued that the action is barred by laches since the case was filed
    more than 34 years after the execution of the Deed of Absolute Sale and more than 12 years after
    the recording of the sale with the Register of Deeds.

    ISSUE:

    Whether or not the action for declaration of nullity of the Deed of Absolute Sale has
    prescribed.

    RULING:

    The Petition is DENIED.

    Considering that the Gonzagas could not have signed the Deed of Absolute Sale, the said
    contract is null and void. In the same manner, the deed did not convey any legal title to the
    petitioner. Consequently, TCT T-42198, which was issued in the name of the City of Tanauan
    "by virtue of the said spurious and forged document[, is] also null and void."71 Furthermore, "all
    the transactions, [if any], subsequent to the alleged sale are likewise void."

    Article 1410 of the Civil Code relevantly states that "[t]he action or defense for the
    declaration of the inexistence of a contract does not prescribe." In other words, "an action that is
    predicated on the fact that the conveyance complained of was null and void ab initio is
    imprescriptible." Therefore, Millonte, as an heir, could assail the validity of the Deed of
    Absolute Sale even years after the execution of the document, and even if the title of the property
    has already been transferred in the name of the City of Tanauan. The passage of time in this case
    could not defeat the legal principle that a null and void contract can be assailed anytime due to
    the imprescriptibility of the action. In like manner, given that the action is imprescriptible, the
    petitioner cannot invoke laches as a defense. Undeniably, Millonte is not estopped from assailing
    the Deed of Absolute Sale specifically since the signatures of the Gonzaga siblings were forged
    and without any binding or legal effect.

    Jurisprudence teaches that "the 'declaration of nullity of a contract which is void ab initio
    operated to restore things to the state and condition in which they were found before the
    execution thereof.'" If the Court were to permit the City of Tanauan to retain ownership of the
    property notwithstanding the void nature of the contract of sale, such would result in unjust
    enrichment as the petitioner would continue to benefit from the lot. This is regardless of the
    undisputed fact that the Tanauan Water District stands on the contested property.

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