Justice Teresita Leonardo-De Castro Cases (2008-2015)Civil
Law
EFFECT AND APPLICATION OF LAWS
There is no irreconcilable conflict or repugnancy between
Section 28 of R.A. No. 7279 and P.D. No. 1315 and No. 1472, rather,
they can be read together and harmonized to give effect to their
provision. It should be stressed that Section 28 of R.A. No. 7279
does not totally and absolutely prohibit eviction and demolition
without a judicial order as in fact it provides for exceptions.
Pursuant to established doctrine, the three (3) statutes should be
construed in the light of the objective to be achieved and the evil
or mischief to be suppressed by the said laws, and they should be
given such construction as will advance the object, suppress the
mischief and secure the benefits intended. It is worthy to note
that the three laws (P.D. No. 1315, P.D. No. 1472 and R.A. No.
7279) have a common objective to address the housing problems of
the country by establishing a comprehensive urban development and
housing program for the homeless. For this reason, the need to
harmonize these laws all the more becomes imperative. - Caridad
Magkalas vs. National Housing Authority, G.R. No. 138823, September
17, 2008
CONFLICT OF LAWS
In an action for enforcement of foreign judgment, the Court has
limited review over the decision rendered by the foreign tribunal.
The Philippine courts cannot pass upon the merits of the case
pursuant to the incorporation clause of the Constitution, unless
there is proof of want of jurisdiction, want of notice to the
party, collusion, fraud, or clear mistake of law or fact. - Bank of
the Philippine Islands Securities Corporation vs.Edgardo V.
Guevara, G.R. No. 167052, March 11, 2015
HUMAN RELATIONS
UNJUST ENRICHMENT
Expounding on this provision in a recent case, we have held that
the principle of unjust enrichment essentially contemplates payment
when there is no duty to pay, and the person who receives the
payment has no right to receive it.
In light of the overpayment, it seems specious for petitioner to
claim that it has suffered damages from respondents refusal to pay
its Progress Billing, which had been proven to be excessive and
inaccurate. Bearing in mind the law and jurisprudence on unjust
enrichment, we hold that petitioner is indeed liable to return what
it had received beyond the actual value of the work it had done for
respondent. - R.V. Santos Company, Inc. vs. Belle Corporation, G.R.
Nos. 159561-62, October 3, 2012
PERSONS
PSYCHOLOGICAL INCAPACITY
There is no requirement that the defendant/respondent spouse
should be personally examined by a physician or psychologist as a
condition sine qua non for the declaration of nullity of marriage
based on psychological incapacity. - Marietta C. Azcueta vs.
Republic of the Philippines and the Court of Appeals, G.R. No.
180668, May 26, 2009
Article 36 of the Family Code is not to be confused with a
divorce law that cuts the marital bond at the time the causes
therefore manifest themselves.It refers to a serious psychological
illness afflicting a party even before the celebration of the
marriage.It is a malady so grave and so permanent as to deprive one
of awareness of the duties and responsibilities of the matrimonial
bond one is about to assume. Judicial precedents regarding the
evidentiary requirements in psychological incapacity cases that
must be applied. Jose Reynaldo B. Ochosa vs. Bona J. Alano and
Republic of the Philippines, G.R. No. 167459, January 26, 2011
PROPERTY RELATIONS OF THE SPOUSES (FAMILY CODE)
When the sale is made before the effectivity of the Family Code,
the applicable law is the Civil Code. Article 173 of the Civil Code
provides that the disposition of conjugal property without the
wife's consent is not void but merely voidable. - Heirs Of Domingo
Hernandez, Sr., namely: Sergia V. Hernandez (Surviving Spouse),
Domingo V. Hernandez, Jr., and Maria Leonora Wilma Hernandez vs.
Plaridel Mingoa, Sr., Dolores Camisura, Melanie Mingoa, and Quezon
City Register of Deeds, G.R. No. 146548, December 18 2009
PROPERTY
OWNERSHIP
A Torrens title cannot be attacked collaterally, and the issue
on its validity can be raised only in an action expressly
instituted for that purpose. A collateral attack is made when, in
another action to obtain a different relief, the certificate of
title is assailed as an incident in said action. Spouses Decaleng
only sought the dismissal of the complaint of PEC-EDNP plus the
grant of their counterclaim for the payment of moral damages,
exemplary damages, litigation expenses, and attorneys fees. They
conspicuously did not pray for the annulment or cancellation of
Certificate of Title No. 1. Evidently, the Spouses Decalengs attack
on the validity, as well as the existence of Certificate of Title
No. 1 is only incidental to their defense against the accion
publiciana and accion reinvindicatoria instituted by PEC-EDNP,
hence, merely collateral. - Sps. Ambrosio Decaleng (substituted by
his heirs) and Julia "Wanay" Decaleng vs. Bishop of the Missionary
District of the Philippine Islands of Protestant Episcopal Church
in the United States of America, otherwise known as the Philippine
Episcopal Church, G.R. No. 171209, June 27, 2012
ACCESSION
The accessory follows the principal. The right of accession is
recognized under Article 440 of the Civil Code which states that
the ownership of property gives the right by accession to
everything which is produced thereby, or which is incorporated or
attached thereto, either naturally or artificially. - Maria
Torbela, represented by her heirs, Eulogio Tosino, et al. vs.
Spouses Andres T. Rosario, et al., G.R. No. 140528, December 7,
2011
QUIETING OF TITLE
Vidal filed an action for quieting of title with regard to the
land she inherited from Francisco Cacho. However, Teofilo opposed
contended that there is no title to be disturbed in the first
place. The court ruled that this action indisputably an action for
quieting of title, a special proceeding wherein the court is
precisely tasked to determine the rights of the parties as to a
particular parcel of land, so that the complainant and those
claiming under him/her may be forever free from any danger of
hostile claim. - Republic of thePhilippines vs. Hon. Mamindiara P.
Mangotara, et al., G.R. No. 170375, July 7, 2010
The Syjucos' title, shows that it originated from OCT No. 994
registered on May 3, 1917 while Bonficacio's title shows that that
it likewise originated from OCT No. 994, but registered on April
19, 1917. This case affirmed the earlier finding that there is only
one OCT No. 994, the registration date of which had already been
decisively settled as 3 May 1917 and not 19 April 1917 and
categorically concluded that OCT No. 994 which reflects the date of
19 April 1917 as its registration date is null and void. - Imelda
Syjuco,et al.,vs. Felisa D. Bonifacio and VSD Realty &
Corporation, G.R. No. 148748, January 14, 2015
For an action to quiet title to prosper, two indispensable
requisites must concur: (1) the plaintiff or complainant has a
legal or equitable title or interest in the real property subject
of the action; and (2) the deed, claim, encumbrance, or proceeding
claimed to be casting a cloud on his title must be shown to be in
fact invalid or inoperative despite its prima facie appearance of
validity or legal efficacy. - Herminio M. De Guzman, for himself
and as Attorney-In-Fact of Nilo M. De Guzman, Angelino De Guzman,
Josefino M. De Guzman, Estrella M. De Guzman, Teresita De Guzman,
Elsa Margarita M. De Guzman, Evelyn M. De Guzman, Ma. Nimia M. De
Guzman, Antolin M. De Guzman, and Ferdinand M. De Guzman vs.
Tabangao Realty Incorporated, G.R. No. 154262, February 11,
2015POSESSION
It is a time-honored legal precept that after the consolidation
of titles in the buyers name, for failure of the mortgagor to
redeem, entitlement to a writ of possession becomes a matter of
right. - Viola Cahilig et al., vs. Hon. Eustaquio G. Terencio et
al., G.R. No. 164470, November 28, 2011
OBLIGATIONS
EXTINGUISHMENT OF OBLIGATIONS
Article 1391 of the Civil Code, which pertinently reads: The
action for annulment shall be brought within four years. In case of
mistake or fraud, this period shall begin from the time of the
discovery of the same. - Spouses Renato and Florinda Dela Cruz vs.
Spouses Gil and Leonila Segovia, G.R. No. 149801, June 26, 2008
In general, a payment in order to be effective to discharge an
obligation, must be made to the proper person. Thus, payment must
be made to the obligee himself or to an agent having authority,
express or implied, to receive the particular payment. Hence,
absent any showing that the respondent agreed to the payment of the
contract price to another person, or that she authorized Cruz to
claim the check on her behalf, the payment, to be effective must be
made to her. - Republic of the Philippines, represented by the
Chief of the Philippine National Police vs. Thi Thu Thuy T. De
Guzman, G.R. No. 175021, June 15, 2011
It is important to note at this point that in the determination
of the nullity of a contract based on the lack of consideration,
the debtor has the burden to prove the same. Article 1354 of the
Civil Code provides that "although the cause is not stated in the
contract, it is presumed that it exists and is lawful, unless the
debtor proves the contrary." - Union Bank of the Philippines vs.
Spouses Rodolfo T. Tiu and Victoria N. Tiu, G.R. Nos. 173090-91,
September 7, 2011
CONTRACTS
ESSENTIAL REQUISISTES
When there is as of yet no meeting of the minds as to the
subject matter or the cause or consideration of the contract being
negotiated, the same cannot be considered to have been perfected. -
MCA-MBF Countdown Cards Philippines Inc., Amable R. Aguiluz V,
Amable C. Aguiluz IX, Cielo C. Aguiluz, Alberto L. Buenviaje,
Vicente Acsay andMCA Holdings and Management Corporation vs. MBf
Card International Limited and MBf Discount Card Limited, G.R.
No.173586, March 14, 2012
KINDS OF CONTRACTS
SALVADORA. FERNANDEZ vs. CRISTINA D. AMAGNAG.R. No. 152614,
September 30, 2009, J. Leonardo-De Castro
When the contract of lease does not provide for a definite
period for its duration, the lease shall be considered month to
month if the rentals are paid on a monthly basis and when the
lessee fails to pay the monthly rental, the contract of lease shall
be considered terminated.
ROLANDO T. CATUNGAL, JOSE T. CATUNGAL, JR., CAROLYN T. CATUNGAL
and ERLINDA CATUNGAL-WESSEL vs. ANGEL S. RODRIGUEZG.R. No. 146839,
March 23, 2011, J. LEONARDO-DE CASTRO
This Court has distinguished between a condition imposed on the
perfection of a contract and a condition imposed merely on the
performance of an obligation. While failure to comply with the
first condition results in the failure of a contract, failure to
comply with the second merely gives the other party the option to
either refuse to proceed with the sale or to waive the
condition.
INTERPRETATION OF CONTRACTS
As mandated by Article 1370 of the Civil Code, if the terms of
the contract are clear and leave no doubt upon the intention of the
contracting parties, the literal meaning of its stipulations shall
control. The agreement is clear, plain and simple that it leaves no
room for interpretation. It explicitly provides that for the
services of Zamora, as agent under the agreement, Multiwood agreed
to pay her in the amount equivalent to 10% of the face value of the
invoice price, covering the letter of credit or such other
instrument representing the actual purchase price for the products
sold or shipped by Multiwood. - Heirs of Deceased Carmen
Cruz-Zamora vs. Multiwood International Inc., G.R. No. 146428,
January 19, 2009
DEFECTIVE CONTRACTS
The proper basis for the nullity of the forged pacto de retro
sale is Article 1318 of the Civil Code, which enumerates the
essential requisites of a valid contract, and not Article 1409
which enumerates examples of void contracts in relation to Article
1505 which refers to an unenforceable contract and is applicable
only to goods. - Vicente Manzano, Jr. vs. Marcelino Garcia, G.R.
No. 179323, November 28, 2011
Article 1305 of the Civil Code allows contracting parties to
establish such stipulation, clauses, terms, and conditions as they
may deem convenient, provided, however, that they are not contrary
to law, morals, good customs, public order, or public policy.
Pactum commissorium is among the contractual stipulations that
are deemed contrary to law. It is defined as "a stipulation
empowering the creditor to appropriate the thing given as guaranty
for the fulfillment of the obligation in the event the obligor
fails to live up to his undertakings, without further formality,
such as foreclosure proceedings, and a public sale."It is
explicitly prohibited under Article 2088 of the Civil Code. -
Philnico Industrial Corporation vs. Privatization and Management
Office, G.R. No. 199420, August 27, 2014
RESCISSION OF CONTRACTS
The general rule is that he who alleges fraud or mistake in a
transaction must substantiate his allegation as the presumption is
that a person takes ordinary care for his concerns and that private
dealings have been entered into fairly and regularly." One who
alleges defect or lack of valid consent to a contract by reason of
fraud or undue influence must establish by full, clear and
convincing evidence such specific acts that vitiated a partys
consent, otherwise, the latters presumed consent to the contract
prevails. - Fontana Resort and Country Club, Inc. and RN
Development Corp.vs. Spouses Roy S. Tan and Susan C. Tan, G.R. No.
154670, January 30, 2012
SALES
EXTINGUISHMENT OF SALE
The alleged nullity of the deed of conditional sale because the
period of redemption had expired is wrong. The right of legal
redemption must be exercised within specified time limits. However,
the statutory period of redemption can be extended by agreement of
the parties. Allowing a redemption after the lapse of the statutory
period, when the buyer at the foreclosure does not object but even
consents to the redemption, will uphold the policy of the law
recognized in such cases as Javellana v. Mirasol and Nuez, and in
the more recent case of Tibajia, et al. v. Honorable Court of
Appeals, et al., which is to aid rather than defeat the right of
redemption. - Republic of the Philippines vs. Marawi-Marantao
General Hospital Inc, and Atty. Macapanton K. Mangodadatu, G.R. No.
158920, November 28, 2012
PARTNERSHIP
There is a co-ownership when an undivided thing or right belongs
to different persons.It is a partnership when two or more persons
bind themselves to contribute money, property, or industry to a
common fund, with the intention of dividing the profits among
themselves. A partner is entitled only to his share as agreed upon,
or in the absence of any such stipulations, then to his share in
proportion to his contribution to the partnership. - Federico
Jarantilla, Jr. vs. Antonieta Jarantilla, Buenaventura Remotigue,
substituted by Cynthia Remotigue, Doroteo Jarantillaand Tomas
Jarantilla, G.R. No.154486, December 1, 2010
AGENCY
Our law mandates an agent to act within the scope of his
authority. The scope of an agents authority is what appears in the
written terms of the power of attorney granted upon him. Under
Article 1878(11) of the Civil Code,a special power of attorneyis
necessary to obligate the principal as a guarantor or surety. In
the case at bar, the principal could be held liable even if the
agent exceeded the scope of his authority only if the agents act of
issuing the Surety Bond isdeemedto have been performed within the
written terms of the power of attorney he was granted. However, the
Special Power of Attorney accorded to the agent in this case
clearly states the limits of his authority and particularly
provides that in case of surety bonds, it can only be issued in
favor ofthe Department of Public Works and Highways, the National
Power Corporation, and other government agencies. - CountryBankers
Insurance Corporation vs. Keppel Cebu Shipyard, Unimarine Shipping
Lines, Inc., Paul Rodriguez, Peter Rodriguez, Albert Hontanosas,
and Bethoven Quinain, G.R. No. 166044, June 18, 2012
TRUST
A trust may have a constructive or implied nature in the
beginning, but the registered owners subsequent express
acknowledgement in a public document of a previous sale of the
property to another party, had the effect of imparting to the
aforementioned trust the nature of an express trust. - Maria
Torbela, represented by her heirs, Eulogio Tosino et al vs. Spouses
Andres T. Rosario et al, G.R. No. 140528, December 7, 2011
A constructive trust is substantially an appropriate remedy
against unjust enrichment. It is raised by equity in respect of
property, which has been acquired by fraud, or where although
acquired originally without fraud, it is against equity that it
should be retained by the person holding it. Thus, the payees, who
acquired the retirement benefits under the GSIS RFP, are considered
as trustees of the disallowed amounts, as although they committed
no fraud in obtaining these benefits, it is against equity and good
conscience for them to continue holding on to them. Government
Service Insurance System (GSIS), et al. vs. Commission On Audit
(COA), Amorsonia B. Escarda, Ma. Cristina D. Dimagiba, and Reynaldo
P. Ventura, G.R. No. 162372, September 11, 2012
CREDIT TRANSACTIONS
LOAN
There is no express trust made if there is no clear and manifest
intention to create such. If after careful scrutiny of the
document, it is clear that what was intended was the establishment
of a lien over the subject properties as a form of collateral, then
the underlying agreement is a loan, not a trust. - Philippine
National Bank vs. Merelo B. Aznar, et al., G.R. No. 171805, May 30,
2011
REAL MORTGAGEIt has been settled that there is effective
registration once the registrant has fulfilled all that is needed
of him for purposes of entry and annotation, so that what is left
to be accomplished lies solely on the register of deeds. As such,
an entry of the certificate of sale was validly registered even if
the same was only annotated in the owners transfer certificates of
titles. Particularly, the purchaser in the auction sale cannot be
faulted for the impossibility of annotation on the transfer
certificates of title which were supposed to be in the custody of
the Registrar of Deeds, like in instances when the same were
previously razed in fire. Neither could such purchaser be blamed
for the fact that there were no reconstituted titles available
during the time of inscription as it had taken the necessary steps
in having the same reconstituted but to no avail. Hence, the
one-year period of redemption commences to run from the said
annotation and the failure of the mortgagors to redeem during the
said period entitles the purchaser to the writ of possession as a
matter of right. - National Housing Authority vs. Augusto Basa,
Jr., Luz Basa and Eduardo S. Basa, G.R. No. 149121, April 20,
2010
Foreclosure proceedings enjoy the presumption of regularity and
that the mortgagor who alleges absence of a requisite has the
burden of proving such fact.
The publication of the notice of sale in the newspaper of
general circulation alone is more than sufficient compliance with
the notice posting requirement of the law. By such publication, a
reasonably wide publicity had been effected such that those
interested might attend the public sale, and the purpose of the law
had been thereby subserved. - Century Savings Bank vs. Spouses
Danilo T. Samonte and Rosalinda M. Samonte, G.R. No.176212, October
20, 2010
If the proceeds of the sale are insufficient to cover the debt
in an extrajudicial foreclosure of mortgage, the mortgagee is
entitled to claim the deficiency from the debtor. While Act No.
3135, as amended, does not discuss the mortgagees right to recover
the deficiency, neither does it contain any provision expressly or
impliedly prohibiting recovery. - BPI Family Savings Bank, Inc. vs.
Ma. Arlyn T. Avenido & Pacifico A. Avenido , G.R. No. 175816,
December 7, 2011
Gross inadequacy of price does not nullify an execution sale. In
an ordinary sale, for reason of equity, a transaction may be
invalidated on the ground of inadequacy of price, or when such
inadequacy shocks ones conscience as to justify the courts to
interfere; such does not follow when the law gives the owner the
right to redeem as when a sale is made at public auction, upon the
theory that the lesser the price, the easier it is for the owner to
effect redemption. When there is a right to redeem, inadequacy of
price should not be material because the judgment debtor may
re-acquire the property or else sell his right to redeem and thus
recover any loss he claims to have suffered by reason of the price
obtained at the execution sale. Thus, respondent stood to gain
rather than be harmed by the low sale value of the auctioned
properties because it possesses the right of redemption. - Bank Of
The Philippine Islands, as Successor-In-Interest of Far East Bank
& Trust Company vs. Cynthia L. Reyes, G.R. No. 182769, February
1, 2012
While it is true that the annotation of the first mortgage to
Villar on Galass TCT contained a restriction on further
encumbrances without the mortgagees prior consent, this restriction
was nowhere to be found in the Deed of Real Estate Mortgage. As
this Deed became the basis for the annotation on Galass title, its
terms and conditions take precedence over the standard, stamped
annotation placed on her title. If it were the intention of the
parties to impose such restriction, they would have and should have
stipulated such in the Deed of Real Estate Mortgage itself.
Moreover, Villars purchase of the mortgaged property did not
violate the prohibition on pactum commissorium. The power of
attorney provision in favor of Villar did not provide that the
ownership over the subject property would automatically pass to
Villar upon Galass failure to pay the loan on time. What it granted
was the mere appointment of Villar as attorney-in-fact, with
authority to sell or otherwise dispose of the subject property, and
to apply the proceeds to the payment of the loan. Finally, Villar
did not obligate herself to replace the debtor in the principal
obligation upon his buying of the mortgaged property, and could not
do so in law without the creditors consent. Therefore, the
obligation to pay the mortgage indebtedness remains with the
original debtors Galas and Pingol. - Pablo P. Garcia vs. Yolanda
Valdez Villar, G.R. No. 158891, June 27, 2012
DRAGNET CLAUSE
As a general rule, a mortgage liability is usually limited to
the amount mentioned in the contract. However, the amounts named as
consideration in a contract of mortgage do not limit the amount for
which the mortgage may stand as security if, from the four corners
of the instrument, the intent to secure future and other
indebtedness can be gathered. This stipulation is valid and binding
between the parties and is known as the "blanket mortgage clause"
also known as the "dragnet clause. - Ramona Ramos and the Estate of
Luis T. Ramos vs. Philippine National Bank, Opal Portfolio
Investments (SPV-AMC), Inc. and Golden Dragon Star Equities, Inc.,
G.R. No. 178218, December 14, 2011
JUST COMPENSATION
When the acquisition process under PD 27 remains incomplete and
is overtaken by RA 6657, the process should be completed under RA
6657, with PD 27 and EO 228 having suppletory effect only. This
means that PD 27 applies only insofar as there are gaps in RA 6657;
where RA 6657 is sufficient, PD 27 is superseded.
Moreover, the Court has allowed the grant of interest in
expropriation cases where there is delay in the payment of just
compensation. In fact, the interest imposed in case of delay in
payments in agrarian cases is 12% per annum and not 6% as "the
imposition x x x is in the nature of damages for delay in payment
which in effect makes the obligation on the part of the government
one of forbearance."
Finally, the constitutional limitation of "just compensation" is
considered to be the sum equivalent to the market value of the
property, broadly described to be the price fixed by the seller in
open market in the usual and ordinary course of legal action and
competition or the fair value of the property as between one who
receives, and one who desires to sell, if fixed at the time of the
actual taking by the government. Thus, if property is taken for
public use before compensation is deposited with the court having
jurisdiction over the case , the final compensation must include
interest on its just value to be computed from the time the
property is taken to the time when compensation is actually paid or
deposited with the court. In fine, between the taking of the
property and the actual payment, legal interests accrue in order to
place the owner in a position as good as (but not better than) the
position he was in before the taking occurred. - Land Bank of the
Philippines vs. Emiliano R. Santiago, Jr., G.R. No. 182209, October
3, 2012
LEASE
LEASE OF RURAL AND URBAN LANDS
The well-entrenched principle is that a lease from
month-to-month is with a definite period and expires at the end of
each month upon the demand to vacate by the lessor.
The subsequent acceptance by the lessor of rental payments does
not, absent any circumstance that may dictate a contrary
conclusion, legitimize the unlawful character of their possession.
- Cebu Bionic Builders Supply, Inc. and Lydia Sia vs. Development
Bank of the Philippines, Jose To Chip, Patricio Yap and Roger
Balila, G.R. No. 154366, November 17, 2010
In case the lessee chooses to renew the lease but there are no
specified terms and conditions for the new contract of lease, the
same terms and conditions as the original contract of lease shall
continue to govern. - Manila International Airport Authority vs.
Ding Velayo Sports Center, Inc , G.R. No. 161718, December 14,
2011
LAND TITLES AND DEEDS
JURISDICTION
It is well-settled that the DAR, through its adjudication arm,
i.e., the DARAB and its regional and provincial adjudication
boards, exercises quasi-judicial functions and jurisdiction on all
matters pertaining to an agrarian dispute or controversy and the
implementation of agrarian reform laws. Pertinently, it is provided
in the DARAB Revised Rules of Procedure that the DARAB has primary
and exclusive jurisdiction, both original and appellate, to
determine and adjudicate all agrarian disputes involving the
implementation of the CARP and related agrarian reform laws. Such
jurisdiction shall extend to cases involving the issuance,
correction and cancellation of Certificates of Land Ownership Award
(CLOAs) and Emancipation Patents which are registered with the Land
Registration Authority. - Pedro Gabriel et. al. vs. Murmuray Jamias
et. al., G.R. No. 156482, September 17, 2008
It is a basic rule that jurisdiction is determined by the
allegations in the complaint. The peitioners complaints did not
contain any allegation that would, even in the slightest, imply
that the issue to be resolved in this case involved an agrarian
dispute which would transfer the jurisdiction to Department of
Agrarian Reform Adjudication Board (DARAB). In the action filed by
the petitioner, the issue to be resolved was who between the
petitioner and the private respondents and their purported
predecessors-in-interest, have a valid title over the subject
properties in light of the relevant facts and applicable laws. The
case thus involves a controversy relating to the ownership of the
subject properties, which is beyond the scope of the phrase
"agrarian dispute." The jurisdiction must then belong to the
Regional Trial Court. - Bases Conversion Development Authority vs.
Provincial Agrarian Reform Officer of Pampanga, Register of Deeds
of Angeles City, Benjamin Poy Lorenzo, Lavernie Poy Lorenzo,
Diosdado De Guzman, Rosemary Eng Tay Tan, Leandro De Guzman,
Benjamin G. Lorenzo, Antonio Manalo, and Socorro De Guzman, G.R.
Nos. 155322-29, June 27, 2012
TORRENS SYSTEM
Banks, their business being impressed with public interest, are
expected to exercise more care and prudence than private
individuals in their dealings,even those involving registered
lands. The rule that persons dealing with registered lands can rely
solely on the certificate of titledoes notapply to banks.-
Philippine Trust Company (also known as Philtrust Bank) vs. Hon.
Court of Appeals and Forfom Development Corporation, G.R. No.
150318, November 22, 2010
Banco Filipino is not an ordinary mortgagee, but is a
mortgagee-bank, whose business is impressed with public interest. A
banking institution is expected to exercise due diligence before
entering into a mortgage contract. The ascertainment of the status
or condition of a property offered to it as security for a loan
must be a standard and indispensable part of its operations. -
Maria Torbela, represented by her heirs, Eulogio Tosino et al vs.
Spouses Andres T. Rosario et al, G.R. No. 140528, December 7,
2011
Under the Regalian doctrine embodied in our Constitution, land
that has not been acquired from the government, either by purchase,
grant, or any other mode recognized by law, belongs to the State as
part of the public domain. Thus, it is indispensable for a person
claiming title to a public land to show that his title was acquired
through such means
It is not enough for the PENRO or CENRO to certify that a land
is alienable and disposable. The applicant for land registration
must prove that the DENR Secretary had approved the land
classification and released the land of the public domain as
alienable and disposable, and that the land subject of the
application for registration falls within the approved area per
verification through survey by the PENRO or CENRO. In addition, the
applicant for land registration must present a copy of the original
classification approved by the DENR Secretary and certified as a
true copy by the legal custodian of the official records. These
facts must be established to prove that the land is alienable and
disposable. - Republic of the Philippines vs. Gloria Jaralve
substituted Alan Jess Jaralve Documento, Jr., Edgardo Jaralve,
Serafin Uy, Jr., Shella Uy, Lagnada, Say A-Ang, International Nimfa
Pantaleon Starg Lad and Development Corporation, Annie Tan, Teotimo
Cabarrubias, Jessica Daclan, Ma. Emma Ramas, Danilo Deen, and Eric
Anthony Deen, G.R. No. 175177, October 24, 2012
The real purpose of the Torrens system is to quiet title to land
and to stop forever any question as to its legality A Torrens title
is generally a conclusive evidence of the ownership of the land
referred to therein.
Section 48 of Presidential Decree No. 1529, otherwise known as
the Property Registration Decree, explicitly provides that [a]
certificate of title shall not be subject to collateral attack. It
cannot be altered, modified, or cancelled except in a direct
proceeding in accordance with law. - Deogenes O. Rodriguez vs. Hon.
Court of Appeals and Philippine Chinese Charitable Association,
Inc., G.R. No. 184589, June 13, 2013
REGISTRATION
Current doctrine thus seems to be that entry alone produces the
effect of registration, whether the transaction entered is a
voluntary or an involuntary one, so long as the registrant has
complied with all that is required of him for purposes of entry and
annotation, and nothing more remains to be done but a duty
incumbent solely on the register of deeds. - Durawood Construction
and Lumber Supply, Inc. vs. Candice S. Bona, G.R. No. 179884,
January 25, 2012
The Supreme Court had allowed substantial compliance with the
requirement that an applicant for land registration must prove that
the DENR Secretary had approved the land classification and
released the land as alienable and disposable and was lenient with
the application of the rule that a CENRO Certification, by itself
does not prove that the land is alienable and disposable. However,
such substantial compliance and leniency will not be allowed where
the Land Registration Authority (LRA) or the DENR oppose the
application on the ground that the land subject thereof is
inalienable. - Republic of the Philippines vs. Lydia Capco De
Tensuan, represented by Claudia C. Aruelo, G.R. No. 171136, October
23, 2013
A party claiming ownership over a parcel of land cannot bank on
the weakness and defects of the title of the adverse party but rely
on the strength of his claim. - CLT Realty Development Corporation
vs. Phil-Ville Development and Housing Corporation, Republic Of The
Philippines (through the OFFICE OF THE SOLICITOR GENERAL), and the
Register of Deeds of Metro Manila District III, Caloocan, G .R. No.
160728, March 11, 2015
1. The buyer of the property does not automaticallybecomes a
party to the land registration case after complying with the
requirements of Sec. 22 of P.D 1529.
2. Section 108 of Presidential Decree No. 1529 authorizes a
person having interest in a registered property to ask for the
amendment and alteration of a certificate of title or the entry of
a new certificate if "new interests not appearing upon the
certificate have arisen or been created," "an omission or error was
made in entering a certificate or any memorandum thereon," or "upon
any other reasonable ground." - The Heirs of Eugenio Lopez, Sr.
namely, Oscar M. Lopez, Manuel M. Lopez and Presentacion L.
Psinakisvs.The Honorable Francisco Querubin, In His Capacity As
Presiding Judge of the Regional Trial Court of Antipolo, Branch 74,
The Heirs of Alfonso Sandoval and his wife Rosa Ruiz, represented
by their Attorney-In-Fact, Mrs. Imelda RiveraG.R. No. 155405, March
18, 2015
The ministerial duty of the land registration court to issue a
writ of possession ceases with respect to actual possessors of the
property under a claim of ownership. Heirs of Eugenio Lopez vs.
Alfonso Sandoval and Roman Ozaeta, Jr., G.R. No. 164092, March 18,
2015
Although the NCIP has the authority to issue temporary
restraining orders and writs of injunction, it was not convinced
that private respondents were entitled to the relief granted by the
Commission.Proclamation No. 15 does not appear to be a definitive
recognition of private respondents ancestral land claim, as it
merely identifies the Molintas and Gumangan families asclaimantsof
a portion of the Busol Forest Reservation, but does not acknowledge
vested rights over the same. Since it is required before the
issuance of a writ of preliminary injunction that claimants show
the existence of a right to be protected, this Court, previously,
ultimately granted the petition of the City Government of Baguio
and set aside the writ of preliminary injunction issued therein
applying stare decisis. - The Baguio Regreening Movement, Inc. vs.
Atty. Brain Masweng G.R. No. 180882, February 27, 2013
INNOCENT PURCHASER FOR VALUE
The law does not require a person dealing with the owner of
registered land to go beyond the certificate of title as he may
rely on the notices of the encumbrances on the property annotated
on the certificate of title or absence of any annotation. Here,
petitioners adverse claim is annotated at the back of the title
coupled with the fact that they are in possession of the disputed
property. To [the Court], these circumstances should have put
respondents on guard and required them to ascertain the property
being offered to them has already been sold to another to prevent
injury to prior innocent buyers. A person who deliberately ignores
a significant fact which would create suspicion in an otherwise
reasonable man is not an innocent purchaser for value. It is a
well-settled rule that a purchaser cannot close his eyes to facts
which should put a reasonable man upon his guard, and then claim
that he acted in good faith under the belief that there was no
defect in the title of the vendor. - Spouses Jesus Ching and Lee
Poe Tin vs. Spouses Adolfo and Arsenia Enrile, G.R. No. 156076,
September 17, 2008
One can sell only what one owns or is authorized to sell, and
the buyer can acquire no more right than what the seller can
transfer legally.
A person dealing with registered land has a right to rely on the
Torrens certificate of title and to dispense with the need of
inquiring furtherexcept when the party has actual knowledge of
facts and circumstances that would impel a reasonably cautious man
to make such inquiry or when the purchaser has knowledge of a
defect or the lack of title in his vendor or of sufficient facts to
induce a reasonably prudent man to inquire into the status of the
title of the property in litigation.- Adoracion Rosales Rufloe,
Alfredo Rufloe and Rodrigo Rufloe vs. Leonarda Burgos, Anita
Burgos, Angelito Burgos, Amy Burgos, Elvira Delos Reyes and Julian
C. Tubig, G.R. No. 143573, January 30, 2009
It is a well-settled doctrine that one who deals with property
registered under the Torrens system need not go beyond the same,
but only has to rely on the certificates of title, he is charged
with notice only of such burdens and claims as are annotated on the
certificates. But, a buyer of real property in possession of
persons other than the seller must be wary and should investigate
the rights of those in possession, for without such inquiry the
buyer can hardly be regarded as a buyer in good faith and cannot
have any right over the property.
A purchaser in good faith is one who buys property without
notice that some other person has a right to or interest in such
property and pays its fair price before he has notice of the
adverse claims and interest of another person in the same
property.
Laches is defined as the failure to assert a right for an
unreasonable and unexplained length of time, warranting a
presumption that the party entitled to assert it has either
abandoned or declined to assert it. - The Heirs of Romana Saves, et
al. vs. The Heirs of Escolastico Saves, et al., G.R. No. 152866,
October 6, 2010
REMEDIES
Since the indefeasibility of a title does not attach to titles
secured by fraud and misrepresentation, it was as if no title at
all was ever issued in this case to the petitioner and therefore
this is hardly the occasion to talk of collateral attack against a
title. - Gregorio Araneta University Foundation vs. The Regional
Trial Court of Kalookan City, G.R. No. 139672, March 4, 2009
The general rule is that in the case of two certificates of
title, purporting to include the same land, the earlier in date
prevails. Applying the principle Primus Tempore, Portior Jure
(First in Time, Stronger in Right), it was found that ALIs title
was the valid one having been derived from the earlier OCT. -
Spouses Morris Carpo and Socorro Carpo vs. Ayala Land,
Incorporated, G.R. No. 166577, February 3, 2010
An action for declaration of nullity of title and recovery of
ownership of real property, or re-conveyance, is a real action but
it is an action in personam, for it binds a particular individual
only although it concerns the right to a tangible thing. Any
judgment therein is binding only upon the parties properly
impleaded. The effect of the said judgment cannot be extended to
BPI Family and the spouses Chan by simply issuing an alias writ of
execution against them. No man shall be affected by any proceeding
to which he is a stranger, and strangers to a case are not bound by
any judgment rendered by the court. In the same manner, a writ of
execution can be issued only against a party and not against one
who did not have his day in court. - Emerita Muoz vs. Atty.
Victoriano R. Yabut, Jr. and Samuel Go Chan, G.R. No. 142676, June
6, 2011The rights and claims vested by virtue of a decision of the
Cadastral Court, adjudicating said lot to different persons which
was never implemented nor executed despite the lapse of more than
thirty years cannot prescribed for failure to fully execute the
same. And an action for reconveyance of registered land based on
implied trust prescribes in ten years, the point of reference being
the date of registration of the deed or the date of the issuance of
the certificate of title over the property, however, the ten-year
prescriptive period applies only when the person enforcing the
trust is not in possession of the property. - Jose Fernando, Jr.,
Zoilo Fernando, Norma Fernando Banares, Rosario Fernando
Tangkencgo, Heirs of Tomas Fernando, represented by Alfredo V.
Fernando, Heirs of Guillermo Fernando, represented by Ronnie H.
Fernando, Heirs of Iluminada Fernando, represented by Benjamin
Estrella and Heirs of Germogena Fernando vs. Leon Acuna, Hermogenes
Fernando, Heirs Of Spouses Antonio Fernando and Felisa Camacho,
represented by Hermogenes Fernando, G.R. No.161030, September 14,
2011
As correctly pointed out by petitioner, we had emphasized in
Republic v. Holazo that the term any other document in paragraph
(f) refers to reliable documents of the kind described in the
preceding enumerations and that the documents referred to in
Section 2(f) may be resorted to only in the absence of the
preceding documents in the list. Therefore, the party praying for
the reconstitution of a title must show that he had, in fact,
sought to secure such documents and failed to find them before
presentation of other documents as evidence in substitution is
allowed. Thus, we stated in Holazo that When Rep. Act No. 26,
Section 2(f), or 3(f) for that matter, speaks of any other
document, it must refer to similar documents previously enumerated
therein or documents ejusdem generis as the documents earlier
referred to. The documents alluded to in Section 3(f) must be
resorted to in the absence of those preceding in order the
petitioner for reconstitution fails to show that he had, in fact,
sought to secure such prior documents (except with respect to the
owners duplicate copy of the title which it claims had been,
likewise, destroyed) and failed to find them, the presentation of
the succeeding documents as substitutionary evidence is proscribed.
Republic of the Philippines vs. Conception Lorenzo, et al., G.R.
No. 172338, November 10, 2012
NOTE: Registration of patents is Excluded from the 2015 Bar
Examinations
A certificate of title issued pursuant to a homestead patent
becomes indefeasible after one year, is subject to the proviso that
the land covered by said certificate is a disposable public land
within the contemplation of the Public Land Law. In this case, the
subject property is part of the Matchwood Forest Reserve and is
inalienable and not subject to disposition. Being contrary to the
Public Land Law, the Homestead Patent and OCT issued in respondents
name are void; and the right of petitioner Republic to seek
cancellation of such void patent/title and reversion of the subject
property to the State is imprescriptible. - Republic of the
Philippines Bureau Of Forest Development vs. Vicente Roxas and the
Register of Deeds of Oriental Mindoro, G.R. No. 157988, December
11, 2013
PRESCRIPTION
When the plaintiff in such actionis not in possessionof the
subject property, the action prescribes in ten years from the date
of registration of the deed or the date of the issuance of the
certificate of title over the property.When the plaintiffis in
possessionof the subject property, the action, being in effect that
of quieting of title to the property, does not prescribe.- Heirs Of
Domingo Valientes vs. Hon. Reinerio (Abraham) B. Ramas, Acting
Presiding Judge, RTC, Branch 29, 9thJudicial Region, San Miguel,
Zamboanga del Sur andVilma V. Minor, G.R. No. 157852, December 15,
2010
PUBLIC LAND ACT
The ultimate objective of the law is "to promote public policy,
that is, to provide home and decent living for destitutes, aimed at
providing a class of independent small landholders which is the
bulwark of peace and order. - Barceliza P. Capistrano vs. Darryl
Limcuando and Fe S. Sumiran, G.R. No. 152413, February 13, 2009
Nowhere in Commonwealth Act No. 141 does it say that the right
to repurchase under Section 119 thereof could not be extended by
mutual agreement of the parties involved. Neither would extending
the period in Section 119 be against public policy as the evident
purpose of the Public Land Act, especially the provisions thereof
in relation to homesteads, is to conserve ownership of lands
acquired as homesteads in the homesteader or his heirs. - Rodolfo
Morla vs. Corazon Nisperos Belmonte, et al., G.R. No. 171146,
December 7, 2011
In the present case, it is settled that Homestead Patent was
issued to Gerardo on January 12, 1951 and the Absolute Deed of Sale
between Gerardo and Juan was executed on July 10, 1951, after a
lapse of only six months. Irrefragably, the alienation of the
subject properties took place within the five-year prohibitory
period under Section 118 of the Public Land Act, as amended as
such, the sale by Gerardo to Juan is null and void right from the
very start. As a void contract, the Absolute Deed of Sale dated
July 10, 1951 produces no legal effect whatsoever in accordance
with the principle quod nullum est nullum producit effectum, thus,
it could not have transferred title to the subject properties from
Gerardo to Juan and there could be no basis for the issuance of TCT
in Juans name. A void contract is also not susceptible of
ratification, and the action for the declaration of the absolute
nullity of such a contract is imprescriptible. To reiterate,
Section 118 of the Public Land Act, as amended, reads that, except
in favor of the Government or any of its branches, units, or
institutions, or legally constituted banking corporations, lands
acquired under free patent or homestead provisions shall not be
subject to encumbrance or alienation from the date of the approval
of the application and for a term of five years from and after the
date of issuance of the patent or grant. The provisions of law are
clear and explicit. A contract which purports to alienate,
transfer, convey, or encumber an homestead within the prohibitory
period of five years from the date of the issuance of the patent is
void from its execution. In a number of cases, this Court has held
that such provision is mandatory. Alejandro Binayug and Ana Binayug
vs. Eugenio Ugaddan, et al., G.R. No. 181623, December 5, 2012
TENANCY
While a tenant is not required to be physically present in the
land at all hours of the day and night, such doctrine cannot be
stretched to apply to a case wherein the supposed tenant has chosen
to reside in another place so far from the land to be cultivated
that it would be physically impossible to be present therein with
some degree of constancy as to allow the tenant to cultivate the
same. - Leonardo Tarona, Eugenia Tarona, Nita Tarona, Luis Tarona,
Rosalinda Tarona, Apolonia Tarona, Carlos Tarona, Lourdes Tarona
and Rogelio Tarona vs. Court of Appeals (Ninth Division), Gay T.
Leao, Lemuel T. Leao, Noel T. Leao, Jedd Anthony Leao Cuison and
Jason Anthony Leao Cuison, G.R. No. 170182, June 18, 2009
TORTS AND DAMAGES
TORTFEASOR
When the proximate cause of the accident is the lack of the due
care and prudence of the deceased, the doctrine of vicarious
liability will not apply. Absent any showing that the employer
failed to exercise due care and diligence in the selection and
supervision of its employees, liability will not attach to it. -
Vallacar Transit vs. Jocelyn Catubig, G.R. No. 175512, May 30,
2011
MORAL DAMAGES
Moral damages are awarded to rape victims without need of proof
other than the fact of rape under the assumption that the victim
suffered moral injuries from the experience she underwent. On the
other hand, when a crime is committed with an aggravating
circumstance either as qualifying or generic, an award of exemplary
damages is justified under Article 2230 of the New Civil Code. -
People of the Philippines vs.Roger Tejero, G.R. No.187744, June 20,
2012
EXEMPLARY OR CORRECTIVE DAMAGES
The award of exemplary damages is justified if an aggravating
circumstance, either qualifying or generic, accompanies the crime.
In the case at bar, the qualifying circumstance of evident
premeditation was duly alleged in the Information and proved during
the trial. Therefore, the trial court's award of the amount of
P30,000.00 as exemplary damages to heirs of the victim, must be
reinstated. - People of the Philippines vs. Gary Alinao, G.R. No.
191256, September 18, 2013
ATTORNEYS FEES
The stipulation on attorneys fees contained in the said
Promissory Note constitutes what is known as a penal clause.A
penalty clause, expressly recognized by law, is an accessory
undertaking to assume greater liability on the part of the obligor
in case of breach of an obligation.The obligor would then be bound
to pay the stipulated indemnity without the necessity of proof on
the existence and on the measure of damages caused by the breach.
It is well-settled that so long as such stipulation does not
contravene law, morals, or public order, it is strictly binding
upon the obligor.The attorneys fees so provided are awarded in
favor of the litigant, not his counsel. It is improper for both the
RTC and the CA to increase the award of attorneys fees despite the
express stipulation contained in the said Promissory Note since it
is not intended to be compensation for respondents counsel but was
rather in the nature of a penalty or liquidated damages. -
SoledadLeonor Pea Suatengco and Antonio Esteban Suatengco vs.
Carmencita O. Reyes, G.R. No. 162729, December 17, 2008
While the body of the Decision quoted the agreement of the
parties stating the compensation as 20% contingent fee computed on
the value to be recovered by favorable judgment on the cases. It is
basic that when there is a conflict between the dispositive portion
orfalloof a Decision and the opinion of the court contained in the
text or body of the judgment, the former prevails over the latter.
This rule rests on the theory that thefallois the final order while
the opinion in the body is merely a statement ordering nothing. -
The Law Firm of Raymundo A. Armovit vs. Court of Appeals and
Bengson Commercial Building, Inc., G.R. No.154559, October 5,
2011
Both the RTC and the Court of Appeals held DBP liable for
attorneys fees and costs of suit because said courts believed that
DBP should have been more aggressive in pursuing its claim against
Central. In the absence of stipulation, attorneys fees may be
recovered as actual or compensatory damages under any of the
circumstances provided for in Article 2208 of the Civil Code. Even
if it were true that DBP had a hand in the transfer of Traverses
insurance coverage to Central, such act is not sufficient to hold
it solidarily liable with Central for the payment of attorneys fees
and cost of litigation under the above provision of the Civil Code.
- Development Bank of the Philippines vs. Traverse Development
Corporation and Central Surety and Insurance Company, G.R. No.
169293, October 5, 2011GRADUATION OF DAMAGES
The increase in the award of damages is predicated on the
qualifying circumstances present in the case and not on the penalty
imposed. In case of moral damages, it need not be alleged and
proved as the emotional suffering of the heirs from the vicious
killing of the victim cannot be denied. As to the loss of earning
capacity, the same need not be proved, as an exception, when the
victim is self-employed and earning less than the minimum wage
under current labor laws or when employed as a daily wage worker
earning less than the minimum wage under current labor laws. -
People of the Philippines vs. Arnold Garchitorena Y Camba A.K.A.
Junior; Joey Pamplona A.K.A. Nato and Jessie Garcia Y Adorino, G.
R. No. 175605, August 28, 2009
In criminal cases, the basis of the increase in the award of
damages is the heinousness of the offense and does not depend on
the penalty that the convict shall suffer, therefore, the existence
of the mitigating circumstance of minority shall not produce the
effect of reduction of damages. - People of the Philippinesvs.
Richard O. Sarcia, G.R. No. 169641, September 10, 2009Page 16 of
16
