MARGARITA SALVADOR=Plaintiff (heir of Celestino Salvador)
JUDGE ANDRES STA. MARIA=Respondent
Case 1: Action for reconveyance instituted by Celestino Salvador Case 2: Special Proceedings the probate of Celestino Salvadors will
FACTS:
1. Celestino Salvador sold parcels of land to Alfonso Salvador and Anatolia Halili. (7 parcels of land)
2. Celestino filed a case for reconveyance (Case 1) on the ground that the sale was void.
3. Celestino died testate. His heirs substituted him as plaintiff in the action for reconveyance.
4. Special Proceedings (Case 2) for the probate of his will and for letters testamentary was instituted.
5. Ruling in Case 1: In favor of Celestino Salvadors Heirs. The court ordered the reconveyance of the property to the plaintiffs.
6. Lot 6 (one of the properties subject of the reconveyance and special proceedings case 1 & 2) was sold so that the creditors who filed claims may be paid. Philippine National Bank bought it at P41,184
ISSUES in Case 2
1. Are the parcels of land and the proceeds of the sale of one of them (Lot 6), properties of the estate or not? 2. Does final judgment in the reconveyance suit (Case 1) in favor of the twenty-one so called heirs who substituted Celestino Salvador, bar the disposition of the reconveyed properties by the settlement court (Case 2)? a. Note: if it will bar, creditors are not entitled to be paid out of the proceeds of the sale of Lot 6 to Philippine National Bank
HELD in Case 2
Issue No. 1: Yes, the properties are part of the estate
Rationale: Margarita Salvador is estopped from questioning the ownership of the properties because of the fact that she substituted Celestino Salvador in the reconveyance proceeding. It follows that the properties they claim are, even by their own reasoning, part of Celestinos estate. (note: Celestino Salvador first instituted the reconveyance proceeding and was later substituted by Margarita in her capacity as an heir)
Issue no. 2: No, it will not bar the disposition of the reconveyed properties by the settlement court
Rationale: They cannot distribute said properties among themselves as substituted heirs without the debts of the estate being first satisfied.
letters testamentary - a document issued by the court clerk which states the authority of the executor of an estate of a person who has died. It is issued during probate of the estate as soon as the court approves the appointment of the executor named in the will and the executor's files a security bond if one is necessary (most well-drafted wills waive the need for a bond). Certified copies of the letters are often required by banks and other financial institutions, the federal government, stock transfer agents or other courts before transfer of money or assets to the executor of the estate