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TORRES, J.:
This is an appeal by bill of exceptions, from the judgment of October 5, 1907, whereby the
Honorable Dionisio Chanco, judge, absolved the defendants from the complaint, and the plaintiff
from a counterclaim, without special finding as to costs.
Counsel for the spouses Ricardo y Cruz and Vicente Ortiz y Felin de Pardell, the first of whom,
absent in Spain by reason of his employment, conferred upon the second sufficient and ample
powers to appear before the courts of justice, on June 8, 1905, in his written complaint, alleged
that the plaintiff, Vicente Ortiz, and the defendant, Matilde Ortiz, are the duly recognized natural
daughters of the spouses Miguel Ortiz and Calixta Felin y Paula who died in Vigan, Ilocos Sur, in
1875 and 1882, respectively; that Calixta Felin, prior to her death, executed on August 17, 1876,
a nuncupative will in Vigan whereby she made her four children, named Manuel, Francisca,
Vicenta, and Matilde, surnamed Ortiz y Felin, her sole and universal heirs of all her property; that,
of the persons enumerated, Manuel died before his mother and Francisca a few years after her
death, leaving no heirs by force of law, and therefore the only existing heirs of the said testatrix
are the plaintiff Vicenta Ortiz and the defendant Matilde Ortiz; that, aside from some personal
property and jewelry already divided among the heirs, the testatrix possessed, at the time of the
execution of her will, and left at her death the real properties which, with their respective cash
values, are as follows:
That, on or about the first months of the year 1888, the defendants, without judicial authorization,
nor friendly or extrajudicial agreement, took upon themselves the administration and enjoyment
of the said properties and collected the rents, fruits, and products thereof, to the serious detriment
of the plaintiffs' interest; that, notwithstanding the different and repeated demands extrajudicially
made upon Matilde Ortiz to divide the aforementioned properties with the plaintiff Vicente and to
deliver to the latter the one-half thereof, together with one-half of the fruits and rents collected
therefrom, the said defendant and her husband, the self-styled administrator of the properties
mentioned, had been delaying the partition and delivery of the said properties by means of unkept
promises and other excuses; and that the plaintiffs, on account of the extraordinary delay in the
delivery of one-half of said properties, or their value in cash, as the case might be, had suffered
losses and damages in the sum of P8,000. Said counsel for the plaintiffs therefore asked that
judgment be rendered by sentencing the defendants, Gaspar de Bartolome, and Matilde Ortiz Felin
de Bartolome, to restore and deliver to the plaintiffs one-half of the total value in cash, according
to appraisal, of the undivided property specified, which one-half amounted approximately to
P3,948, or if deemed proper, to recognize the plaintiff Vicenta Ortiz to be vested with the full and
absolute right of ownership to the said undivided one-half of the properties in question, as universal
testamentary heir thereof together with the defendant Matilde Ortiz, to indemnify the plaintiffs in
the sum of P8,000, for losses and damages, and to pay the costs.
Counsel for the defendants, in his answer denied the facts alleged in paragraphs 1, 4, 6, 7, and 8
thereof, inasmuch as, upon the death of the litigating sister's brother Manuel, their mother, who
was still living, was his heir by force of law, and the defendants had never refused to give to the
plaintiff Vicente Ortiz her share of the said properties; and stated that he admitted the facts alleged
in paragraph 2, provided it be understood, however, that the surname of the defendant's mother
was Felin, and not Feliu, and that Miguel Ortiz died in Spain, and not in Vigan; that he also
admitted paragraph 3 of the complaint, with the difference that the said surname should be Felin,
and likewise paragraph 5, except the part thereof relating to the personal property and the jewelry,
since the latter had not yet been divided; that the said jewelry was in the possession of the plaintiffs
and consisted of: one Lozada gold chronometer watch with a chain in the form of a bridle curb and
a watch charm consisting of the engraving of a postage stamp on a stone mounted in gold and
bearing the initials M. O., a pair of cuff buttons made of gold coins, four small gold buttons, two
finger rings, another with the initials M. O., and a gold bracelet; and that the defendants were
willing to deliver to the plaintiffs, in conformity with their petitions, one-half of the total value in
cash, according to appraisement, of the undivided real properties specified in paragraph 5, which
half amounted to P3,948.
In a special defense said counsel alleged that the defendants had never refused to divide the said
property and had in fact several years before solicited the partition of the same; that, from 1886 to
1901, inclusive, there was collected from the property on Calle Escolta the sum of 288 pesos,
besides a few other small amounts derived from other sources, which were delivered to the
plaintiffs with other larger amounts, in 1891, and from the property on Calle Washington, called La
Quinta, 990.95 pesos, which proceeds, added together, made a total of 1,278.95 pesos, saving error
The defendants, in their counter claim, repeated each and all of the allegations contained in each
of the paragraphs of section 10 of their answer; that the plaintiffs were obliged to pay to the
administrator of the said property the remuneration allowed him by law; that, as the revenues
collected by the defendants amounted to no more than P3,654.15 and the expenditures incurred by
them, to P6,252.32, it followed that the plaintiffs owed the defendants P1,299.08, that is one-half
of the difference between the amount collected from and that extended on the properties, and asked
that judgment be therefore rendered in their behalf to enable them to collect this sum from the
plaintiffs, Ricardo Pardell and Vicenta Ortiz, with legal interest thereon from December 7, 1904,
the date when the accounts were rendered, together with the sums to which the defendant
Bartolome was entitled for the administration of the undivided properties in question.
By a written motion of August 21, 1905, counsel for the plaintiffs requested permission to amend
the complaint by inserting immediately after the words "or respective appraisal," fifth line of
paragraph 5, the phrase "in cash in accordance with the assessed value," and likewise further to
amend the same, in paragraph 6 thereof, by substituting the following word in lieu of the petition
for the remedy sought: "By reason of all the foregoing, I beg the court to be pleased to render the
judgment by sentencing the defendants, Gaspar de Bartolome and Matilde Ortiz Felin de
Bartolome, to restore and deliver to the plaintiffs an exact one-half of the total vale of the undivided
properties described in the complaint, such value to be ascertained by the expert appraisal of two
competent persons, one of whom shall be appointed by the plaintiffs and the other by the
defendants, and, in case of disagreement between these two appointees such value shall be
determined by a third expert appraiser appointed by the court, or, in a proper case, by the price
offered at public auction; or, in lieu thereof, it is requested that the court recognize the plaintiff,
Vicenta Ortiz, to be vested with a full and absolute right to an undivided one-half of the said
properties; furthermore, it is prayed that the plaintiffs be awarded an indemnity of P8,000 for losses
and damages, and the costs." Notwithstanding the opposition of the defendants, the said
amendment was admitted by the court and counsel for the defendants were allowed to a period of
three days within which to present a new answer. An exception was taken to this ruling.
After this partition had been made counsel for the defendants, by a writing of March 8, 1906, set
forth: That, having petitioned for the appraisement of the properties in question for the purpose of
their partition, it was not to be understood that he desired from the exception duly entered to the
ruling made in the matter of the amendment to the complaint; that the properties retained by the
defendants were valued at P9,310, and those retained by the plaintiffs, at P2,885, one-half of which
amounts each party had to deliver to the other, as they were pro indiviso properties; that, therefore,
the defendants had to pay the plaintiffs the sum of P3,212.50, after deducting the amount which
the plaintiffs were obliged to deliver to the defendants, as one-half of the price of the properties
retained by the former; that, notwithstanding that the amount of the counterclaim for the expenses
incurred in the reconstruction of the pro indiviso property should be deducted from the sum which
the defendants had to pay the plaintiffs, the former, for the purpose of bringing the matter of the
partition to a close, would deliver to the latter, immediately upon the signing of the instrument of
purchase and sale, the sum of P3,212.50, which was one-half of the value of the properties alloted
to the defendants; such delivery, however, was not to be understood as a renouncement of the said
counterclaim, but only as a means for the final termination of the pro indiviso status of the
property.
The case having been heard, the court on October 5, 1907, rendered judgment holding that the
revenues and the expenses were compensated by the residence enjoyed by the defendant party,
that no losses or damages were either caused or suffered, nor likewise any other expense besides
those aforementioned, and absolved the defendants from the complaint and the plaintiffs from
the counterclaim, with no special finding as to costs. An exception was taken to this judgment by
counsel for the defendants who moved for a new trial on the grounds that the evidence presented
did not warrant the judgment rendered and that the latter was contrary to law. This motion was
denied, exception whereto was taken by said counsel, who filed the proper bill of exceptions, and
the same was approved and forwarded to the clerk of this court, with a transcript of the evidence.
Both of the litigating sisters assented to a partition by halves of the property left in her will by
their mother at her death; in fact, during the course of this suit, proceedings were had, in
accordance with the agreement made, for the division between them of the said hereditary
property of common ownership, which division was recognized and approved in the findings of
the trial court, as shown by the judgment appealed from.
Before entering upon an explanation of the propriety or impropriety of the claims made by both
parties, it is indispensable to state that the trial judge, in absolving the defendants from the
complaint, held that they had not caused losses and damages to the plaintiffs, and that the
revenues and the expenses were compensated, in view of the fact that the defendants had been
living for several years in the Calle Escolta house, which was pro indiviso property of joint
ownership.
By this finding absolving the defendants from the complaint, and which was acquiesced in by the
plaintiffs who made no appeal therefrom, the first issue has been decided which was raised by
the plaintiffs, concerning the indemnity for losses and damages, wherein are comprised the rents
which should have been obtained from the upper story of the said house during the time it was
occupied by the defendants, Matilde Ortiz and her husband, Gaspar de Bartolome.
Notwithstanding the acquiescence on the part of the plaintiffs, assenting to the said finding
whereby the defendants were absolved from the complaint, yet, as such absolution is based on
the compensation established in the judgment of the trial court, between the amounts which each
party is entitled to claim from the other, it is imperative to determine whether the defendant
Matilde Ortiz, as coowner of the house on Calle Escolta, was entitled, with her husband, to reside
therein, without paying to her coowner, Vicenta Ortiz, who, during the greater part of the time,
lived with her husband abroad, one-half of the rents which the upper story would have produced,
had it been rented to a stranger.
Each coowner may use the things owned in common, provided he uses them in
accordance with their object and in such manner as not to injure the interests of the
community nor prevent the coowners from utilizing them according to their rights.
Matilde Ortiz and her husband occupied the upper story, designed for use as a dwelling, in the
house of joint ownership; but the record shows no proof that, by so doing, the said Matilde
occasioned any detriment to the interest of the community property, nor that she prevented her
sister Vicenta from utilizing the said upper story according to her rights. It is to be noted that the
stores of the lower floor were rented and accounting of the rents was duly made to the plaintiffs.
As the hereditary properties of the joint ownership of the two sisters, Vicenta Ortiz, plaintiff, and
Matilde Ortiz, defendant, were situated in the Province of Ilocos Sur, and were in the care of the
last named, assisted by her husband, while the plaintiff Vicenta with her husband was residing
outside of the said province the greater part of the time between 1885 and 1905, when she left
these Islands for Spain, it is not at all strange that delays and difficulties should have attended the
efforts made to collect the rents and proceeds from the property held in common and to obtain a
partition of the latter, especially during several years when, owing to the insurrection, the
country was in a turmoil; and for this reason, aside from that founded on the right of
coownership of the defendants, who took upon themselves the administration and care of the
properties of joint tenancy for purposes of their preservation and improvement, these latter are
not obliged to pay to the plaintiff Vicenta one-half of the rents which might have been derived
from the upper of the story of the said house on Calle Escolta, and, much less, because one of the
living rooms and the storeroom thereof were used for the storage of some belongings and effects
of common ownership between the litigants. The defendant Matilde, therefore, in occupying with
her husband the upper floor of the said house, did not injure the interests of her coowner, her
sister Vicenta, nor did she prevent the latter from living therein, but merely exercised a
legitimate right pertaining to her as coowner of the property.
Notwithstanding the above statements relative to the joint-ownership rights which entitled the
defendants to live in the upper story of the said house, yet in view of the fact that the record
shows it to have been proved that the defendant Matilde's husband, Gaspar de Bartolome,
occupied for four years a room or a part of the lower floor of the same house on Calle Escolta,
using it as an office for the justice of the peace, a position which he held in the capital of that
province, strict justice, requires that he pay his sister-in-law, the plaintiff, one half of the monthly
rent which the said quarters could have produced, had they been leased to another person. The
amount of such monthly rental is fixed at P16 in accordance with the evidence shown in the
record. This conclusion as to Bartolome's liability results from the fact that, even as the husband
of the defendant coowner of the property, he had no right to occupy and use gratuitously the said
part of the lower floor of the house in question, where he lived with his wife, to the detriment of
the plaintiff Vicenta who did not receive one-half of the rent which those quarters could and
should have produced, had they been occupied by a stranger, in the same manner that rent was
obtained from the rooms on the lower floor that were used as stores. Therefore, the defendant
Bartolome must pay to the plaintiff Vicenta P384, that is, one-half of P768, the total amount of
the rents which should have been obtained during four years from the quarters occupied as an
office by the justice of the peace of Vigan.
With respect to the second question submitted for decision to this court, relative to the payment
of the sum demanded as a counterclaim, it was admitted and proved in the present case that, as a
result of a serious earthquake on August 15, 1897, the said house on Calle Escolta was left in
ruins and uninhabitable, and that, for its reconstruction or repair, the defendants had to expend
The defendants claim to be entitled to the collection of legal interest on the amount of the
counterclaim, from December 7, 1904. This contention can not be sustained, inasmuch as, until
this suit is finally decided, it could not be known whether the plaintiffs would or would not be
obliged to pay the sum whatever in reimbursement of expenses incurred by the plaintiffs in the
repair work on the said house on Calle Escolta, whether or not the defendants, in turn, were
entitled to collect any such amount, and, finally, what the net sum would be which the plaintiff's
might have to pay as reimbursement for one-half of the expenditure made by the defendants.
Until final disposal of the case, no such net sum can be determined, nor until then can the debtor
be deemed to be in arrears. In order that there be an obligation to pay legal interest in connection
with a matter at issue between the parties, it must be declared in a judicial decision from what
date the interest will be due on the principal concerned in the suit. This rule has been established
by the decisions of the supreme court of Spain, in reference to articles 1108, 1109, and 1110 of
the Civil Code, reference on April 24, 1867, November 19, 1869, and February 22, 1901.
With regard to the percentage, as remuneration claimed by the husband of the defendant Matilde
for his administration of the property of common ownership, inasmuch as no stipulation
whatever was made in the matter by and between him and his sister-in-law, the said defendant,
the claimant is not entitled to the payment of any remuneration whatsoever. Of his own accord
and as an officious manager, he administered the said pro indiviso property, one-half of which
belonged to his wife who held it in joint tenancy, with his sister-in-law, and the law does not
allow him any compensation as such voluntary administrator. He is merely entitled to a
reimbursement for such actual and necessary expenditures as he may have made on the
undivided properties and an indemnity for the damages he may have suffered while acting in that
capacity, since at all events it was his duty to care for and preserve the said property, half of
which belonged to his wife; and in exchange for the trouble occasioned him by the
administration of his sister-in-law's half of the said property, he with his wife resided in the
upper story of the house aforementioned, without payment of one-half of the rents said quarters
might have produced had they been leased to another person.
As regards the collection of the sum of P910.50, which is the difference between the assessed
value of the undivided real properties and the price of the same as determined by the judicial
expert appraiser, it is shown by the record that the ruling of the trial judge admitting the
amendment to the original complaint, is in accord with the law and principles of justice, for the
reason that any of the coowners of a pro indiviso property, subject to division or sale, is entitled
to petition for its valuation by competent expert appraisers. Such valuation is not prejudicial to
any of the joint owners, but is beneficial to their interests, considering that, as a general rule, the
assessed value of a building or a parcel of realty is less than the actual real value of the property,
and this being appraiser to determine, in conjunction with the one selected by the plaintiffs, the
value of the properties of joint ownership. These two experts took part in the latter proceedings
of the suit until finally, and during the course of the latter, the litigating parties agreed to an
amicable division of the pro indiviso hereditary property, in accordance with the price fixed by
the judicial expert appraiser appointed as a third party, in view of the disagreement between and
nonconformity of the appraisers chosen by the litigants. Therefore it is improper now to claim a
right to the collection of the said sum, the difference between the assessed value and that fixed
by the judicial expert appraiser, for the reason that the increase in price, as determined by this
latter appraisal, redounded to the benefit of both parties.
In consideration of the foregoing, whereby the errors assigned to the lower court have been duly
refuted, it is our opinion that, with a partial reversal of the judgment appealed from, in so far as it
absolves the plaintiffs from the counterclaim presented by the defendants, we should and hereby
do sentence the plaintiffs to the payment of the sum of P915.08, the balance of the sum claimed
by the defendants as a balance of the one-half of the amount which the defendants advanced for
the reconstruction or repair of the Calle Escolta house, after deducting from the total of such sum
claimed by the latter the amount of P384 which Gaspar de Bartolome, the husband of the
defendant Matilde, should have paid as one-half of the rents due for his occupation of the
quarters on the lower floor of the said house as an office for the justice of the peace court of
Vigan; and we further find: (1) That the defendants are not obliged to pay one-half of the rents
which could have been obtained from the upper story of the said house; (2) that the plaintiffs can
not be compelled to pay the legal interest from December 7, 1904, on the sum expanded in the
reconstruction of the aforementioned house, but only the interest fixed by law, at the rate of 6 per
cent per annum, from the date of the judgment to be rendered in accordance with this decision;
(3) that the husband of the defendant Matilde Ortiz is not entitled to any remuneration for the
administration of the pro indiviso property belonging to both parties; (4) that, neither is he
entitled to collect from the plaintiffs the sum of P910.50, the difference between the assessed
VASQUEZ, J:
This is an appeal by certiorari from the decision of the Court of First Instance of Pampanga in
Civil Case No. 2513, entitled "Olimpia Basa, et al., Plaintiffs, versus Genaro Puyat, et al.,
Defendants. "
The seven (7) petitioners are owners co-pro-indiviso of an undivided ONE-HALF (1/2) share of
a parcel of land located in Barrio San Mateo, Arayat, Pampanga, with an area of 32,383 square
meters, more or less. Private respondents Genaro Puyat and Brigida Mesina were the owners of
the other undivided half of the same parcel of land.
On March 6, 1964, Genaro Puyat, with the marital consent of Brigida Mesina, sold his ONE-
HALF (1/2) share of the parcel of land in question for the price of ONE THOUSAND
(P1,000.00) PESOS in favor of private respondents Primo Tiongson and Macaria Puyat. Primo
Tiongson is a son-in-law of Genaro Puyat who is married to Macaria Puyat, a daughter of
Genaro Puyat.
Seven (7) days later, on or March 13, 1964, the herein petitioners filed Civil Case No. 2513,
praying that they be allowed to exercise the right of redemption under Article 1620 of the Civil
Code, for which purpose they deposited with the court the sum of ONE THOUSAND PESOS
(P1,000.00) as redemption money.
The trial court rendered the judgment dismissing the case. It ruled that the petitioners are not
entitled to exercise the right of redemption under Article 1620 of the Civil Code, reasoning out
as follows:
There is nothing repugnant, from the point of view of public policy, for parents to sell to their
children. It could not, therefore, have been intended by the framers of the Civil Code of the
CORTES, J.:
The fate of petitioners' claim over a parcel of land rests ultimately on a determination of whether
or not said petitioners are chargeable with such laches as may effectively bar their present action.
The petitioners herein filed a case for recovery of property and damages with notice of lis
pendens on March 13, 1981 against the defendant and herein private respondent, Celestino
Afable. The parcel of land involved in this case, with an area of 48,849 square meters, is covered
by Original Certificate of Title No. 1771 issued on June 12, 1931, in the names of Rosalia,
Gaudencio, Sabina Bernabe, Nenita and Delia, all surnamed Bailon, as co-owners, each with a
1/6 share. Gaudencio and Nenita are now dead, the latter being represented in this case by her
children. Luz, Emma and Nilda. Bernabe went to China in 1931 and had not been heard from
since then [Decision of the Court of Appeals, Rollo, p. 39].
It appears that on August 23, 1948, Rosalia Bailon and Gaudencio Bailon sold a portion of the
said land consisting of 16,283 square meters to Donato Delgado. On May 13, 1949, Rosalia
Bailon alone sold the remainder of the land consisting of 32,566 square meters to Ponciana V.
Aresgado de Lanuza. On the same date, Lanuza acquired from Delgado the 16,283 square meters
of land which the latter had earlier acquired from Rosalia and Gaudencio. On December 3, 1975,
John Lanuza, acting under a special power of attorney given by his wife, Ponciana V. Aresgado
de Lanuza, sold the two parcels of land to Celestino Afable, Sr.
In all these transfers, it was stated in the deeds of sale that the land was not registered under the
provisions of Act No. 496 when the fact is that it is. It appears that said land had been
successively declared for taxation first, in the name of Ciriaca Dellamas, mother of the registered
co-owners, then in the name of Rosalia Bailon in 1924, then in that of Donato Delgado in 1936,
then in Ponciana de Lanuza's name in 1962 and finally in the name of Celestino Afable, Sr. in
1983.
In his answer to the complaint filed by the herein petitioners, Afable claimed that he had
acquired the land in question through prescription and contended that the petitioners were guilty
of laches.He later filed a third-party complaint against Rosalia Bailon for damages allegedly
suffered as a result of the sale to him of the land.
After trial, the lower court rendered a decision:
FERNAN, C.J.:
DIAZ, J.:
This action was brought by the brothers and sisters Resurreccion Tagarao, Buenaventura
Tagarao, and Serafin Tagarao, children of the deceased Merced Garcia, daughter of the deceased
Buenaventura Garcia who was a brother of the defendant Marcos Garcia, against the latter and
the other defendants named Paula Tabifranca, Margarita Garcia, Rosario Garcia, Dolores Rufino
and Eleuterio Rufino, praying that judgment be rendered against the defendants ordering them to
deliver to the plaintiffs, after executing the necessary deeds of transfer, one-fourth of the land
known as lot No. 510 of cadastral case No. 11 of the municipality of Isabela, Occidental Negros
(G. L. R. O. Cad. Record No. 100), which was formerly covered, first by original certificate of
title No. 10009 (Exhibit M), later by transfer certificate of title No. 3001 (Exhibit 3), and at
present by transfer certificate of title No. 8782 (Exhibit 7), all of the office of the register of
deeds of said Province of Occidental Negros.
In their amended complaint of July 29, 1931, which was reamended on March 8, 1932, said
plaintiffs prayed that should the defendants fail to deliver to them the required portion of the land
in question, the latter be ordered to pay them the value thereof based on the assessed value of the
whole property, and that they furthermore be indemnified for the value of 1,407 cavans of palay
at the rate of P4 a cavan, alleging that said 1,407 cavans represented their share in the products of
said land from the time the defendants took exclusive possession thereof.
Before the plaintiffs filed their amended complaint on the date above stated, the defendants
Marcos Garcia, Paula Tabifranca, Margarita Garcia, Rosario Garcia and Dolores Rufino filed a
demurrer to said plaintiffs' original complaint, alleging that it did not state sufficient facts to
constitute a cause of action and was furthermore ambiguous, unintelligible and uncertain. The
lower court sustained said demurrer and ordered the plaintiffs to amend their complaint within
the reglementary period.
When the plaintiffs amended their complaint in the sense expressed in their pleading of February
13, 1929, said five defendants again filed another demurrer alleging this time that the lower court
lack jurisdiction to try the case by reason of the subject matter involved and the lower court
overruled said demurrer ordering them to answer within the reglementary period. In compliance
therewith, the defendants on October 28, 1929, filed their answer wherein the first two
defendants, or the spouses Marcos Garcia and Paula Tabifranca, alleged that although they
formerly were the absolute and exclusive owners of the land in question they already ceased to
be so at that time, having sold the half belonging to Paula Tabifranca to the defendants Margarita
Garcia, Rosario Garcia and Dolores Rufino, and the other half belonging to Marcos Garcia to
Eleuterio Rufino. On June 9, 1931, said two defendants filed a petition of even date stating that
Witness:
(Sgd.) FRED W. BOHLER
(Sgd.) Y. E. Cox
S. A. #4146
Ana Rivera was employed by Edgar Stephenson as housekeeper from the year 1920 until his
death on June 8, 1939. On December 24, Stephenson opened an account in his name with the
defendant Peoples Bank by depositing therein the sum of P1,000. On October 17, 1931, when
there was a balance of P2,072 in said account, the survivorship agreement in question was
executed and the said account was transferred to the name of "Edgar Stephenson and/or Ana
Rivera." At the time of Stephenson's death Ana Rivera held the deposit book, and there was a
balance in said account of P701. 43, which Ana Rivera claimed but which the bank refused to
pay to her upon advice of its attorneys who gave the opinion that the survivorship agreement was
of doubtful validity. Thereupon Ana Rivera instituted the present action against the bank, and
Minnie Stephenson, administratix of the estate of the deceased, intervened and claimed the
amount for the estate, alleging that the money deposited in said account was and is the exclusive
property of the deceased.
The trial court held that the agreement in question, viewed from its effect during the lives of the
parties, was a mere power of attorney authorizing Ana Rivera to withdraw the deposit, which
power terminated upon the death of the principal, Edgar Stephenson; but that, viewed from its
effect after the death of either of the parties, the agreement was a donation mortis causa with
reference to the balance remaining at the death of one of them, which, not having been executed
with the formalities of a testamentary disposition as required by article 620 of the Civil Code,
was of no legal effect.
The defendant bank did not appear in this Court. Counsel for the intervenor-appellee in his brief
contends that the survivorship agreement was a donation mortis causa from Stephenson to Ana
OSTRAND, J.:
On August 1,1927, the plaintiffs, Manuel, Mariano, Pura and Caridad Melencio, brought the
present action against the defendant-appellee, Dy Tiao Lay for the recovery of the possession of
a parcel of land situated in the town of Cabanatuan, Nueva Ecija, and containing an area of
4,628.25 square meters. The plaintiffs further demand a monthly rental of P300 for the use and
occupation of the parcel from May, 1926, until the date of the surrender to them of the
possession thereof; and that if it is found that the said appellee was occupying the said parcel of
land by virtue of a contract of lease, such contract should be declared null and void for lack of
consent, concurrence, and ratification by the owners thereof.
In his answer, the defendant pleaded the general issue, and as special defenses, he alleged in
substance that he was occupying the said tract of land by virtue of a contract of lease executed on
July 24,1905, in favor of his predecessor in interest, by Ruperta Garcia, Pedro Melencio, Juliana
Melencio, and Ruperta Melencio under the terms specified therein, and which contract is still in
force; that Liberata Macapagal, the mother of the plaintiffs, in her capacity as judicial
administratrix of the estate of Ramon Melencio, one of the original coowners of the parcel of
land in question, actually recognized and ratified the existence and validity of the contract
aforesaid by virtue of the execution of a public document by her on or about November 27,1920,
and by collecting from the assignees of the original lessee the monthly rent for the premises until
April 30, 1926; and that said defendant deposits with the clerk of court the sum of P20.20 every
month as rent thereof and that as a counterclaim, he seeks the recovery of P272 for goods and
money delivered by him to the plaintiffs.
The plaintiffs filed a reply to the answer alleging, among other things, that Ruperta Garcia was
not one of the coowners of the land in question; that the person who signed the alleged contract
of lease never represented themselves as being the sole and exclusive owners of the land subject
to the lease as alleged by the defendant in his answer; that the said contract of lease of July
24,1905, is null and void for being executed without the intervention and consent of two
coowners, Ramon Melencio and Jose P. Melencio, and without the marital consent of the
husbands of Juliana and Ruperta Melencio; that the lessee has repeatedly violated the terms and
conditions of the said contract; and that Liberata Macapagal, in her capacity as administratrix of
the property of her deceased husband, could not lawfully and legally execute a contract of lease
with the conditions and terms similar to that of the one under consideration, and that from this it
follows that she could not ratify the said lease as claimed by the defendant.
NOCON, J.:
Before Us is a petition foe review of the decision, dated May 13, 1991 of the Court of Appeals in
CA-G.R. CV No. 13122, entitled Grace Gosiengfiao, et al. v. Leonardo Mariano v. Amparo
Gosiengfiao 1 raising as issue the distinction between Article 10882 and Article 16203 of the
Civil Code.
The Court of Appeals summarized the facts as follows:
It appears on record that the decedent Francisco Gosiengfiao is the registered owner of a
residential lot located at Ugac Sur, Tuguegarao, Cagayan, particularly described as follows, to
wit:
"The eastern portion of Lot 1351, Tuguegarao Cadastre, and after its segregation now designated
as Lot 1351-A, Plan PSD-67391, with an area of 1,1346 square meters."
and covered by Transfer Certificate of Title No. T-2416 recorded in the Register of Deeds of
Cagayan.
The lot in question was mortgaged by the decedent to the Rural Bank of Tuguegarao (designated
as Mortgagee bank, for brevity) on several occasions before the last, being on March 9, 1956 and
29, 1958.
On August 15, 1958, Francisco Gosiengfiao died intestate survived by his heirs, namely: Third-
Party Defendants: wife Antonia and Children Amparo, Carlos, Severino and herein plaintiffs-
appellants Grace, Emma, Ester, Francisco, Jr., Norma, Lina (represented by daughter Pinky
Rose), and Jacinto.
The loan being unpaid, the lot in dispute was foreclosed by the mortgagee bank and in the
foreclosure sale held on December 27, 1963, the same was awarded to the mortgagee bank as the
highest bidder.
x ---------------------------------------------------------------------------------------- x
DECISION
YNARES-SANTIAGO, J.:
Assailed in this petition for review is the September 23, 2003 Decision[1] of the Court of Appeals
in CA-G.R. SP No. 74921 which set aside the September 13, 2002 Decision[2]of the Regional
Trial Court (RTC) of Cebu City, Branch 7, in Civil Case No. CEB-27806, and reinstated the
February 12, 2002 Judgment[3] of the Municipal Trial Court (MTC) of Minglanilla, Metro Cebu,
in Civil Case No. 392, dismissing petitioner Arnelito Adlawans unlawful detainer suit against
respondents Emeterio and Narcisa Adlawan. Likewise questioned is the January 8, 2004
Resolution[4] of the Court of Appeals which denied petitioners motion for reconsideration.
The instant ejectment suit stemmed from the parties dispute over Lot 7226 and the house built
thereon, covered by Transfer Certificate of Title No. 8842,[5] registered in the name of the late
Dominador Adlawan and located at Barrio Lipata, Municipality of Minglanilla, Cebu. In his
complaint, petitioner claimed that he is an acknowledged illegitimate child[6] of Dominador who
died on May 28, 1987 without any other issue. Claiming to be the sole heir of Dominador, he
executed an affidavit adjudicating to himself Lot 7226 and the house built thereon.[7] Out of
respect and generosity to respondents who are the siblings of his father, he granted their plea to
occupy the subject property provided they would vacate the same should his need for the
property arise. Sometime in January 1999, he verbally requested respondents to vacate the house
and lot, but they refused and filed instead an action for quieting of title[8] with the RTC. Finally,
upon respondents refusal to heed the last demand letter to vacate dated August 2, 2000, petitioner
filed the instant case on August 9, 2000.[9]
Sometime in 1961, spouses Ramon and Oligia needed money to finance the renovation of their
house. Since they were not qualified to obtain a loan, they transferred ownership of Lot 7226 in
the name of their son Dominador who was the only one in the family who had a college
education. By virtue of a January 31, 1962 simulated deed of sale,[14] a title was issued to
Dominador which enabled him to secure a loan with Lot 7226 as collateral. Notwithstanding the
execution of the simulated deed, Dominador, then single, never disputed his parents ownership
of the lot. He and his wife, Graciana, did not disturb respondents possession of the property until
they died on May 28, 1987 and May 6, 1997, respectively.
Respondents also contended that Dominadors signature at the back of petitioners birth certificate
was forged, hence, the latter is not an heir of Dominador and has no right to claim ownership of
Lot 7226.[15] They argued that even if petitioner is indeed Dominadors acknowledged illegitimate
son, his right to succeed is doubtful because Dominador was survived by his wife, Graciana.[16]
On February 12, 2002, the MTC dismissed the complaint holding that the establishment of
petitioners filiation and the settlement of the estate of Dominador are conditions precedent to the
accrual of petitioners action for ejectment. It added that since Dominador was survived by his
wife, Graciana, who died 10 years thereafter, her legal heirs are also entitled to their share in Lot
7226. The dispositive portion thereof, reads:
In View of the foregoing, for failure to prove by preponderance of evidence, the plaintiffs cause
of action, the above-entitled case is hereby Ordered DISMISSED.
SO ORDERED.[17]
On appeal by petitioner, the RTC reversed the decision of the MTC holding that the title of
Dominador over Lot 7226 cannot be collaterally attacked. It thus ordered respondents to turn
Wherefore, the Judgment, dated February 12, 2002, of the Municipal Trial Court of Minglanilla,
Cebu, in Civil Case No. 392, is reversed. Defendants-appellees are directed to restore to plaintiff-
appellant possession of Lot 7226 and the house thereon, and to pay plaintiff-appellant, beginning
in August 2000, compensation for their use and occupation of the property in the amount of
P500.00 a month.
So ordered.[18]
Meanwhile, the RTC granted petitioners motion for execution pending appeal[19] which was
opposed by the alleged nephew and nieces of Graciana in their motion for leave to intervene and
to file an answer in intervention.[20] They contended that as heirs of Graciana, they have a share
in Lot 7226 and that intervention is necessary to protect their right over the property. In addition,
they declared that as co-owners of the property, they are allowing respondents to stay in Lot
7226 until a formal partition of the property is made.
The RTC denied the motion for leave to intervene.[21] It, however, recalled the order granting the
execution pending appeal having lost jurisdiction over the case in view of the petition filed by
respondents with the Court of Appeals.[22]
On September 23, 2003, the Court of Appeals set aside the decision of the RTC and reinstated
the judgment of the MTC. It ratiocinated that petitioner and the heirs of Graciana are co-owners
of Lot 7226. As such, petitioner cannot eject respondents from the property via an unlawful
detainer suit filed in his own name and as the sole owner of the property. Thus
WHEEFORE, premises considered, the appealed Decision dated September 13, 2002 of the
Regional Trial Court of Cebu City, Branch 7, in Civil Case No. CEB-27806 is REVERSED and
SET ASIDE, and the Judgment dated February 12, 2002 of the Municipal Trial Court of
Minglanilla, Metro Cebu, in Civil Case No. 392 is REINSTATED. Costs against the respondent.
SO ORDERED.[23]
The decisive issue to be resolved is whether or not petitioner can validly maintain the instant
case for ejectment.
Petitioner averred that he is an acknowledged illegitimate son and the sole heir of Dominador.
He in fact executed an affidavit adjudicating to himself the controverted property. In ruling for
the petitioner, the RTC held that the questioned January 31, 1962 deed of sale validly transferred
title to Dominador and that petitioner is his acknowledged illegitimate son who inherited
ownership of the questioned lot. The Court notes, however, that the RTC lost sight of the fact
that the theory of succession invoked by petitioner would end up proving that he is not the sole
owner of Lot 7226. This is so because Dominador was survived not only by petitioner but also
by his legal wife, Graciana, who died 10 years after the demise of Dominador on May 28,
1987.[24] By intestate succession, Graciana and petitioner became co-owners of Lot 7226.[25] The
death of Graciana on May 6, 1997, did not make petitioner the absolute owner of Lot 7226
because the share of Graciana passed to her relatives by consanguinity and not to petitioner with
whom she had no blood relations. The Court of Appeals thus correctly held that petitioner has no
authority to institute the instant action as the sole owner of Lot 7226.
Petitioner contends that even granting that he has co-owners over Lot 7226, he can on his own
file the instant case pursuant to Article 487 of the Civil Code which provides:
ART. 487. Any one of the co-owners may bring an action in ejectment.
This article covers all kinds of actions for the recovery of possession. Article 487 includes
forcible entry and unlawful detainer (accion interdictal), recovery of possession (accion
publiciana), and recovery of ownership (accion de reivindicacion).[26] A co-owner may bring
such an action without the necessity of joining all the other co-owners as co-plaintiffs because
the suit is presumed to have been filed to benefit his co-owners. It should be stressed, however,
that where the suit is for the benefit of the plaintiff alone who claims to be the sole owner and
entitled to the possession of the litigated property, the action should be dismissed.[27]
A co-owner may bring such an action, without the necessity of joining all the other co-owners as
co-plaintiffs, because the suit is deemed to be instituted for the benefit of all. If the action is for
IPRA EXCLUSIVE COMPILATION
the benefit of the plaintiff alone, such that he claims possession for himself and not for the
co-ownership, the action will not prosper. (Emphasis added)[28]
In Baloloy v. Hular,[29] respondent filed a complaint for quieting of title claiming exclusive
ownership of the property, but the evidence showed that respondent has co-owners over the
property. In dismissing the complaint for want of respondents authority to file the case, the Court
held that
Under Article 487 of the New Civil Code, any of the co-owners may bring an action in
ejectment. This article covers all kinds of actions for the recovery of possession, including
an accion publiciana and a reinvidicatory action. A co-owner may bring such an action without
the necessity of joining all the other co-owners as co-plaintiffs because the suit is deemed to be
instituted for the benefit of all. Any judgment of the court in favor of the co-owner will benefit
the others but if such judgment is adverse, the same cannot prejudice the rights of the
unimpleaded co-owners. If the action is for the benefit of the plaintiff alone who claims to be the
sole owner and entitled to the possession thereof, the action will not prosper unless he impleads
the other co-owners who are indispensable parties.
In this case, the respondent alone filed the complaint, claiming sole ownership over the subject
property and praying that he be declared the sole owner thereof. There is no proof that the other
co-owners had waived their rights over the subject property or conveyed the same to the
respondent or such co-owners were aware of the case in the trial court. The trial court rendered
judgment declaring the respondent as the sole owner of the property and entitled to its
possession, to the prejudice of the latters siblings. Patently then, the decision of the trial court is
erroneous.
Under Section 7, Rule 3 of the Rules of Court, the respondent was mandated to implead his
siblings, being co-owners of the property, as parties. The respondent failed to comply with the
rule. It must, likewise, be stressed that the Republic of the Philippines is also an indispensable
party as defendant because the respondent sought the nullification of OCT No. P-16540 which
was issued based on Free Patent No. 384019. Unless the State is impleaded as party-defendant,
any decision of the Court would not be binding on it. It has been held that the absence of an
indispensable party in a case renders ineffective all the proceedings subsequent to the filing of
the complaint including the judgment. The absence of the respondents siblings, as parties,
rendered all proceedings subsequent to the filing thereof, including the judgment of the court,
ineffective for want of authority to act, not only as to the absent parties but even as to those
present.[30]
In the same vein, there is no merit in petitioners claim that he has the legal personality to file the
present unlawful detainer suit because the ejectment of respondents would benefit not only him
but also his alleged co-owners. However, petitioner forgets that he filed the instant case to
acquire possession of the property and to recover damages. If granted, he alone will gain
possession of the lot and benefit from the proceeds of the award of damages to the exclusion of
the heirs of Graciana. Hence, petitioner cannot successfully capitalize on the alleged benefit to
his co-owners. Incidentally, it should be pointed out that in default of the said heirs of Graciana,
whom petitioner labeled as fictitious heirs, the State will inherit her share[31] and will thus be
petitioners co-owner entitled to possession and enjoyment of the property.
The present controversy should be differentiated from the cases where the Court upheld the right
of a co-owner to file a suit pursuant to Article 487 of the Civil Code. In Resuena v. Court of
Appeals,[32] and Sering v. Plazo,[33] the co-owners who filed the ejectment case did not represent
themselves as the exclusive owner of the property. In Celino v. Heirs of Alejo and Teresa
Santiago,[34] the complaint for quieting of title was brought in behalf of the co-owners precisely
to recover lots owned in common.[35]Similarly in Vencilao v. Camarenta,[36] the amended
complaint specified that the plaintiff is one of the heirs who co-owns the controverted properties.
In the foregoing cases, the plaintiff never disputed the existence of a co-ownership nor claimed
to be the sole or exclusive owner of the litigated lot. A favorable decision therein would of
course inure to the benefit not only of the plaintiff but to his co-owners as well. The instant case,
however, presents an entirely different backdrop as petitioner vigorously asserted absolute and
sole ownership of the questioned lot. In his complaint, petitioner made the following allegations,
to wit:
3. The plaintiff was the only son (illegitimate) and sole heir of the late DOMINADOR
ADLAWAN who died intestate on 28 May 1987 without any other descendant nor ascendant x x
x.
xxxx
Clearly, the said cases find no application here because petitioners action operates as a complete
repudiation of the existence of co-ownership and not in representation or recognition thereof.
Dismissal of the complaint is therefore proper. As noted by Former Supreme Court Associate
Justice Edgrado L. Paras [i]t is understood, of course, that the action [under Article 487 of the
Civil Code] is being instituted for all. Hence, if the co-owner expressly states that he is bringing
the case only for himself, the action should not be allowed to prosper.[38]
Indeed, respondents not less than four decade actual physical possession of the questioned
ancestral house and lot deserves to be respected especially so that petitioner failed to show that
he has the requisite personality and authority as co-owner to file the instant case. Justice dictates
that respondents who are now in the twilight years of their life be granted possession of their
ancestral property where their parents and siblings lived during their lifetime, and where they,
will probably spend the remaining days of their life.
WHEREFORE, the petition is DENIED. The September 23, 2003 Decision of the Court of
Appeals in CA-G.R. SP No. 74921 which reinstated the February 12, 2002 Judgment of the
Municipal Trial Court of Minglanilla, Metro Cebu, dismissing petitioners complaint in Civil
Case No. 392, and its January 8, 2004 Resolution, are AFFIRMED.
SO ORDERED.