Land Titles, Ch. V, Non-Registrable Properties

MENCHAVEZ v. TEVESG.R. No. 153201 January 26, 2005

This is a case to recover damages from a lease contract between the parties.

Facts February 28, 1986: Menchavez (lessors) and Florentino Teves Jr. (lessee) executed a contract of lease. June 2, 1988: Cebu RTC Sheriffs demolished the fishpond dikes constructed by the the respondent and delivered the possession of the subject roperty to the plaintiffs. Respondent filed a complaint for damages and alleged that the lessors have violated their contract, specifically the peaceful and adequate enjoyment of the property for the entire duration of the contract RTC declared the contract of lease between the parties as void ab initio as it is owned by the state based on the Regalian Doctrine. RTC ruled in favor of the Petitioners. Respondent elevated the case to CA. CA disagreed with RTCs finding that petitioners and respondent were in pari delicto. It contended that while there was negligence on the part of the respondent for failing to verify the ownership of the property, there was no evidence that he had knowledge of petitiones lack of ownership Hence, this petition.

IssueWhether or not the subject property (fishponds) can be leased by the petitioners.

HeldNo. It was the state who owned the fishpond. The 1987 Constitution specifically declares that all lands of the public domain, waters,fisheriesand other natural resources belong to the State. Included here are fishponds, which may not be alienated but only leased. Possession thereof, no matter how long, cannot ripen into ownership.Being merely applicants for the lease of the fishponds, petitioners had no transferable right over them. And even if the State were to grant their application, the law expressly disallowed sublease of the fishponds to respondent.The contract of lease is void ab initio. No damages may be recovered from a void contract.

WHEREFORE, the Petition is GRANTED and the assailed Decision and Resolution SET ASIDE. The Decision of the trial court is hereby REINSTATED

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