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• An individual's right to privacy under Article 26 (1) of the Civil Code should not be confined to his
house or residence as it may extend to places where he has the right to exclude the public or deny them
access. The phrase "prying into the privacy of another's residence," therefore, covers places, locations,
or even situations which an individual considers as private. And as long as his right is recognized by
society, other individuals may not infringe on his right to privacy. The CA, therefore, erred in limiting the
application of Article 26 (1) of the Civil Code only to residences. • The reasonableness of a person's
expectation of privacy depends on a two-part test: (1) whether, by his conduct, the individual has
exhibited an expectation of privacy; and (2) this expectation is one that society recognizes as
reasonable.
• Under the Civil Code, only one marriage can exist at any given time and divorce is not recognized
except during the effectivity of R.A. 394 (An Act Authorizing for a Period of Twenty Years Divorce Among
Moslems Residing in Non-Christian Provinces), however, this was not availed of by the parties.
While the Family Code is silent with respect to the proper party who can file a complaint for nullity of
marriage prior to A.M. No. 02-11-10-SC, it has been held that in a void marriage, in which no marriage
has taken place and cannot be the source of rights, any interested party may attack the marriage
directly or collaterally without prescription, and which may be filed even beyond the lifetime of the
contracting parties.
The burden of proving psychological incapacity is on the plaintiff who must prove that the incapacitated
party, based on his or her actions or behavior, suffers a serious or psychological disorder that completely
disables him or her from understanding and discharging the essential obligations of the marital state.
• The psychological problem must be grave, must have existed at the time of marriage, and must be
incurable.
MATUDAN v. REPUBLIC OF THE PHILIPPINES G.R. No. 203284 | 14 November 2016
Marriage
DOCTRINE: Psychological Incapacity must be characterized by gravity, juridical antecedence and
incurability
Absence any proof that it is not part of the conjugal property, it must be deemed to be part of it.
FRANCISCO LIM v. EQUITABLE PCI BANK G.R. No. 183918 | 15 January 2014
Property Relations of the Spouses
DOCTRINE: The presumption in Article 160 that “all property of the marriage is presumed to belong to
the conjugal partnership” applies to property acquired during the lifetime of the husband and wife.
When the property is registered in the name of a spouse only and there is no showing as to when the
property was acquired by said spouse, this is an indication that the property belongs exclusively to said
spouse.
The presumption that a property registered to one spouse is part of the conjugal property applies only
to properties acquired during marriage
The filiation of illegitimate children is, like legitimate children, under Art. 172 of the Family Code,
established by
(1) The record of birth appearing in the civil register or a final judgment; or
(2) An admission of legitimate filiation in a public document or a private handwritten instrument and
signed by the parent concerned.
In a petition for a declaration of presumptive death under Article 41 of the Family Code, the claim must
be based on a “well-founded belief” that the spouse is dead.
Property
Art 1544 NCC, in case of a double sale of immovables, ownership shall belong to:
(1) The first registrant in good faith
(2) The first possessor in good faith
(3) The buyer who in good faith presents the oldest title
• The law requires that the second buyer must have acquired and registered the immovable property in
good faith. In order for the second buyer to displace the first buyer, the following must be shown:
(1) the second buyer must show that he acted in good faith (i.e., in ignorance of the first sale and of the
first buyer’s rights) from the time of acquisition until title is transferred to him by registration or failing
registration, by delivery of possession; and
(2) the second buyer must show continuing good faith and innocence or lack of knowledge of the first
sale until his contract ripens into full ownership through prior registration as provided by law.
The presumption remains that the respondents are builders in good faith.
• Article 448 of the Civil Code applies when the builder believes that he is the owner of the land or that
by some title he has the right to build thereon, or that, at least, he has a claim of title thereto.
• In a case for quieting of title are fairly simple, the plaintiff need to prove only two things, namely:
(1) The plaintiff or complainant has a legal or an equitable title to or interest in the real property subject
of the action; and
(2) That 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.
• Stated differently, the plaintiff must show that he has a legal or at least an equitable title over the real
property in dispute, and that some deed or proceeding beclouds its validity or efficacy.
An action for quieting of title is essentially a common law remedy grounded on equity. The competent
court is tasked to determine the respective rights of the complainant and other claimants, not only to
place things in their proper place, to make the one who has no rights to said immovable respect and not
disturb the other, but also for the benefit of both, so that he who has the right would see every cloud of
doubt over the property dissipated, and he could afterwards without fear introduce the improvements
he may desire, to use, and even to abuse the property as he deems best. But for an action to quiet title
to prosper, two indispensable requisites must concur, namely:
(1) The plaintiff or complainant has a legal or an equitable title to or interest in the real property subject
of the action;
(2) The deed, claim, encumbrance, or proceeding claimed to be casting cloud on his title must be shown
to be in fact invalid or inoperative despite its prima facie appearance of validity or legal efficacy.
GIL MACALINO, JR., et. al. v. ARTEMIO PIS-AN G.R. No. 204056 | 1 June 2016
Quieting of Title to or Interest in and Removal or Prevention of Cloud over Title or Interest in Real
Property
DOCTRINE: In cases of quieting of title, it is essential that the plaintiff has a legal or equitable title or
interest in the subject property.
In order that an action for quieting of title may prosper, it is essential that the plaintiff must have legal
or equitable title to, or interest in, the property that is the subject matter of the action.
The only issue in an ejectment case is the physical possession of real property — possession de facto
and not possession de jure but where the parties to an ejectment case raise the issue of ownership, the
courts may pass upon that issue to determine who between the parties has the better right to possess
the property.”
REPUBLIC v. CORTEZ G.R. No. 201405. | 24 August 2015
Possession
DOCTRINE: Possession, no matter how long, cannot produce any legal effect if the property cannot be
lawfully possessed in the first place.
Only things and rights which are susceptible of being appropriated may be the object of possession and
thus, property of the public dominion, common things and things specifically prohibited by law cannot
be appropriated and hence, cannot be possessed.
To prove that a land is alienable, the existence of a positive act of the government, such as presidential
proclamation or an executive order; an administrative action; investigation reports of Bureau of Lands
investigators; and a legislative act or a statute declaring the land as alienable and disposable must be
established.
• Hence, it must be considered as still inalienable public domain. Being such, it cannot be appropriated
and therefore not a proper subject of possession under Article 530 of the Civil Code. Possession, even if
the same be in the concept of an owner or no matter how long, cannot produce any legal effect since
the property cannot be lawfully possessed in the first place.
In a complaint for replevin, the claimant must convincingly show that he is either the owner or clearly
entitled to the possession of the object sought to be recovered.
However, jurisdiction is conferred by law, it cannot be presumed nor implied. In the absence of any
allegation as to the assessed value of the subject properties, it cannot be determined which court has
exclusive jurisdiction over the complaint.
• MeTC, MTC, or MCTC has exclusive original jurisdiction over civil actions involving title to or possession
of real property, or any interest therein where the assessed value does not exceed Php 20,000 (or Php
50,000 in Metro Manila). If it exceeds such value, RTC has jurisdiction.
ANDRES. v. STA. LUCIA DEV’T CO. G.R. No. 201405. | 24 August 2015
Easements
DOCTRINE: An easement of right-of-way may be demanded by the owner of an immovable or by any
person who by virtue of a real right may cultivate or use the same.
Under Article 649 of the Civil Code, an easement of right-of-way may be demanded by the owner of an
immovable or by any person who by virtue of a real right may cultivate or use the same.
An action for reconveyance based on implied trust prescribes in 10 years as it is an obligation created by
law, to be counted from the date of issuance of the Torrens title over the property.
• This rule, however, applies only when the plaintiff or the person enforcing the trust is not in
possession of the property.
• If property is acquired through mistake or fraud, the person obtaining it is, by force of law, considered
a trustee of an implied trust for the benefit of the person from whom the property comes.
ANDRES. v. STA. LUCIA DEV’T CO. G.R. No. 201405. | 24 August 2015
Prescription
DOCTRINE: If the mode of acquisition is prescription, it must first be shown that the land has already
been converted to private ownership prior to the requisite acquisitive prescriptive period.
• Prescription is one of the modes of acquiring ownership under the Civil Code.
• However, only lands of the public domain subsequently classified or declared as no longer intended for
public use or for the development of national wealth, or removed from the sphere of public dominion
and are considered converted into patrimonial lands or lands of private ownership, may be alienated or
disposed through any of the modes of acquiring ownership under the Civil Code.
• And if the mode of acquisition is prescription, whether ordinary or extraordinary, it must first be
shown that the land has already been converted to private ownership prior to the requisite acquisitive
prescriptive period.
“Hold Out” clause applies only if there is a valid and existing obligation arising from any of the sources of
obligations enumerated in Article 1157 of the Civil Code, to wit: law, contracts, quasicontracts, delict
and quasi-delict.
MANLAR RICE MILL, INC. v. DEYTO G.R. No. 191189 | 29 January 2014
Kinds of Obligations
DOCTRINE: There is a solidary liability only when the obligation expressly so states, when the law so
provides or when the nature of the obligation so requires.
well-entrenched is the rule that solidary obligations cannot be lightly inferred. There is a solidary
liability only when the obligation expressly so states, when the law so provides or when the nature of
the obligation so requires
• A contract affects only the parties to it, and cannot be enforced by or against a person who is not a
party thereto. In the present case
Parties may validly stipulate the unilateral rescission of a contract. Pursuant to Article 1191 of the Civil
Code, mutual restitution is required.
CONTINENTAL CEMENT CORPORATION v. ASEA BROWN BOVERI G.R. No. 171660 | 17 October 2011
Kinds of Obligations
DOCTRINE: The penalty clause takes the place of indemnity for damages and the payment of interests in
case of non-compliance with the obligation, unless there is a stipulation to the contrary.
Under Art. 1226 of the Civil Code, the penalty clause takes the place of indemnity for damages and the
payment of interests in case of non-compliance with the obligation, unless there is a stipulation to the
contrary.
SPOUSES BONROSTRO v. SPOUSES LUNA G.R. No. 172346 | 24 July 2013
Kinds of Obligations and Extinguishment of Obligations
DOCTRINE: Tender of payment takes effect only if accompanied by actual payment or followed by
consignation.
In a contract to sell, payment of the price is a positive suspension condition, the failure of which is not a
breach of contract warranting rescission under Article 1911 of the Civil Code but rather just an event
that prevents the supposed seller from being bound to convey title to the supposed buyer.
To have the effect of payment and the consequent extinguishment of the obligation to pay, the law
requires the companion acts of tender of payment and consignation.
• Tender of payment is the manifestation by the debtor of a desire to comply with or pay an obligation.
If refused without just cause, the tender of payment will discharge the debtor of the obligation to pay
but only after a valid consignation of the sum due shall have been made with the proper court.
• Consignation is the deposit of the proper amount with a judicial authority in accordance with rules
prescribed by law, after the tender of payment has been refused or because of circumstances which
render direct payment to the creditor impossible or inadvisable.
Compensation can take place only when both debts are liquidated and demandable.
• The Civil Code provides that compensation shall take place when the following requisites are present:
(1) Each one of the obligors be bound principally and that he be at the same time a principal creditor of
the other;
(2) Both debts consist in a sum of money, or if the things due are consumable, they be of the same kind,
and also of the same quality if the latter has been stated;
(3) The two debts are due:
(4) The debts are liquidated and demandable;
(5) Over neither of them be any retention or controversy, commenced by third parties and
communicated in due time to the debtor.
• A claim is considered liquidated when the amount and time of payment is fixed.
LUZON DEVELOPMENT BANK v. ENRIQUEZ G.R. Nos. 168646 and 168666 | 12 January 2011
Extinguishment of Obligations
DOCTRINE: The dation in payment extinguishes the obligation to the extent of the value of the thing
delivered, either as agreed upon by the parties or as may be proved, unless the parties by agreement,
express or implied, or by their silence, consider the thing as equivalent to the obligation, in which case
the obligation is totally extinguished.
As a rule, the dation in payment extinguishes the obligation to the extent of the value of the thing
delivered, either as agreed upon by the parties or as may be proved, unless the parties by agreement,
express or implied, or by their silence, consider the thing as equivalent to the obligation, in which case
the obligation is totally extinguished. • It is the intention of the parties in the dation in payment which
determines whether the property subject of the dation will be considered as the full equivalent of the
debt and will therefore serve as full satisfaction of the said debt.
A debt is considered liquidated, not only when it is expressed in definite figures which do not require
verification, but also when the determination of the exact amount depends only on a simple
arithmetical operation.
• For legal compensation to take place, the requirements set forth in Arts. 1278 and 1279 of the Civil
Code must be present. It must be established that both parties have monetary obligations to each other,
that both obligations are already due, that they be liquated and demandable, and that no third parties
must be involved. • In the instant case,
Article 1256 of the Civil Code authorizes consignation alone, without need of prior tender of payment,
when the creditor is unknown or when two or more persons claim the same right to collect.
Consignation is necessarily judicial, as the Civil Code itself provides that consignation shall be made by
depositing the thing or things due at the disposal of judicial authority. While tender of payment can be
made in venues other than courts, consignation must be made only before the courts.
It is provided under Article 1234 of the Civil Code that if the obligation is substantially performed in good
faith, the obligor, may recover as if it had strictly and completely fulfilled its obligation, less damages
suffered by the obligee.
SPOUSES CASTRO v. TAN G.R. No. 168940 | 24 November 2009
Essential Requisites of a Contract
DOCTRINE: The contracting parties may establish such stipulations, clauses, terms and conditions as
they may deem convenient, provided they are not contrary to law, morals, good customs, public order
or public policy.
Article 1306 of the Civil Code allows the contracting parties to establish such stipulations, clauses, terms
and conditions as they may deem convenient, provided they are not contrary to law, morals, good
customs, public order or public policy.
• While parties to a loan agreement have wide latitude to stipulate on any interest rate in view of
Central Bank Circular No. 905, which suspended the Usury Law ceiling on interest, it is worth stressing
that interest rates whenever unconscionable may still be declared illegal.
HEIRS OF MARIO PACRES v. HEIRS OF CECILIA YGOÑA G.R. No. 174719 | 5 May 2010
Essential Requisites of a Contract
DOCTRINE: Only parties to a contract can maintain an action to enforce the obligations arising under
said contract.
Under Article 1311 of the Civil Code, contracts take effect only between the parties, their assigns and
heirs (subject to exceptions not applicable here). Thus, only a party to the contract can maintain an
action to enforce the obligations arising under said contract.
Article 1311 of the Civil Code which provides that if a contract should contain some stipulation in favor
of a third person, he may demand its fulfillment. This refers to stipulations pour autrui or stipulation for
the benefit of third parties.
Article 1335 of the Civil Code provides that “a threat to enforce one’s claim through competent
authority, if the claim is just or legal, does not vitiate consent.”
SWIFT FOODS, INC. v. SPOUSES MATEO G.R. No. 170486 | 12 September 2011
Essential Requisites of a Contract
DOCTRINE: A contract is the law between the parties and those who are guilty of negligence in the
performance of their obligations are liable for damages.
MOVERTRADE CORP. v. COA and DPWH G.R. No. 204835 | 22 September 2015
Essential Requisites of a Contract
DOCTRINE: It is a basic principle in law that contracts have the force of law between the parties and
should be complied with in good faith.
Contracts have the force of law between the parties and should be complied with in good faith.
• A breach occurs where the contractor inexcusably fails to perform substantially in accordance with the
terms of the contract.
Article 1371 of the Civil Code provides that, “In order to judge the intention of the contracting parties,
their contemporaneous and subsequent acts shall be principally considered.”
Article 2041 of the Civil Code denotes that the party aggrieved by the breach of a compromise
agreement may, if he chooses, bring the suit contemplated or involved in his original demand, as if there
had never been any compromise agreement, without bringing an action for rescission thereof. He need
not seek a judicial declaration of rescission, for he may regard the compromise agreement already
rescinded.
• Under Article 2041 of the Civil Code, “if one of the parties fails or refuses to abide by the compromise,
the other party may either enforce the compromise or regard it as rescinded and insist upon his original
demand.”
Pursuant to Article 1410 of the Civil Code, an action or defense for the declaration of the inexistence of a
contract is imprescriptible.
An action to rescind is founded upon and presupposes the existence of a contract. A contract which is
null and void is no contract at all and hence, could not be the subject of rescission.
Sales
LUZON DEVELOPMENT BANK v. ENRIQUEZ G.R. Nos. 168646 and 168666 | 12 January 2011
Nature and Form of Contract
DOCTRINE: Contract to Sell does not transfer ownership until there is full payment of the consideration.
The Contract to Sell did not transfer ownership over Lot 4 to Enriquez because a contract to sell is one
where the prospective seller reserves the transfer of title to the prospective buyer until the happening
of an event, such as full payment of the purchase price. It does not, by itself, transfer ownership to the
buyer.
A contract of sale is perfected the moment the parties agree upon the object of the sale, the price, and
the terms of payment.
• Once perfected, the parties are bound by it whether the contract is verbal or in writing because no
form is required. • Contrary to the view
Stipulation to execute a deed of absolute sale upon full payment of the purchase price, is a unique and
distinguishing characteristic of a contract to sell.
ROBERN DEVELOPMENT v. PEOPLE’S LANDLESS ASSOCIATION G.R. No. 173622| 11 March 2013
Nature and Form of Contract
DOCTRINE: When there is merely an offer by one party without acceptance of the other, there is no
contract.
A contract of sale is perfected at the moment there is a meeting of minds upon the thing which is the
object of the contract and upon the price. Thus, for a contract of sale to be valid, all of the following
essential elements must concur:
a) consent or meeting of the minds;
b) determinate subject matter; and
c) price certain in money or its equivalent.
FIRST OPTIMA REALTY CORPORATION v. SECURITRON SECURITY SERVICES, INC. G.R. No. 199648 | 28
January 2015
Nature and Form of Contract
DOCTRINE: The payment of earnest money before the property owner agrees to sell his property cannot
bind the owner to the obligations of a seller.
As contemplated under Art. 1482 of the Civil Code, “there must first be a perfected contract of sale
before we can speak of earnest money.”
• The prior payment of earnest money even before the property owner can agree to sell his property is
irregular, and cannot be used to bind the owner to the obligations of a seller under a perfected contract
of sale, because it prevents the owner from freely giving his consent to the transaction. This constitutes
a palpable transgression of the property owner’s rights of ownership over his property.
Art. 1544 of the civil code does not apply. Since failure to pay the price in full in a contract to sell renders
the same ineffective, and without force and effect, then there is no sale to speak of.
BIGNAY EX-INN v. UNION BANK G.R. No. 171598 & 171590 |12 February 2014
Capacity to Buy or Sell
DOCTRINE: The sale of conjugal property without the consent of the wife is void.
TAINA MANIGQUE-STONE v. CATTLEYA LAND, INC. G.R. No. 195975 | 5 September 2016
Capacity to Buy or Sell
DOCTRINE: The rules on double sales only applies when the sales involved are valid.
In order for the rules on double sales to apply, the sales involved must be valid.
ASIAN CONSTRUCTION and DEVELOPMENT CORPORATION v. CAPASCO G.R. No. 167942 | 29 June 2010
Obligations of the Vendee
DOCTRINE: Copies of delivery receipts, where there is sufficient uncontroverted evidence showing loss
of the originals despite the diligence exerted to find the same, are admissible.
Copies of delivery receipts, where there is sufficient uncontroverted evidence showing loss of the
originals despite the diligence exerted to find the same, are admissible.
UNION BANK OF THE PHILIPPINES v. PHILIPPINE RABBIT BUS LINES, INC. G.R. No. 205951 | 4 July 2016
Breach of Contract
DOCTRINE: The nonpayment of the purchase price renders the contract to sell ineffective not breach of
contract.
• It was incorrect to require a demand to pay prior to filing of the ejectment case, as this is not one of
the requisites in an ejectment case based on the petitioner’s contract to sell with respondent.
• The full payment of the purchase price in a contract to sell is a positive suspensive condition whose
nonfulfillment is not a breach of contract, but merely an event that prevents the seller from conveying
title to the purchase.
Lease
Agency
Credit Transaction
Under Art. 1934 of the Civil Code, a contract of loan is perfected upon delivery of the object of the
contract. In this case
The general rule is that the applicable rate of interest shall be computed in accordance with the
stipulation of the parties. Absent any stipulation, the applicable rate of interest shall be 12% per annum
when the obligation arises out of a loan or a forbearance of money, goods or credits. In other cases, it
shall be six percent (6%).
Forbearance of money, goods or credits refers to arrangements other than loan agreements, where a
person acquiesces to the temporary use of his money, goods or credits pending happening of certain
events or fulfillment of certain conditions.
SUN LIFE OF CANADA v. TAN KIT G.R. No. 183272 | 15 October 2014
Loan
DOCTRINE: Monetary interest refers to the compensation set by the parties for the use or forbearance
of money while compensatory interest refers to the penalty or indemnity for damages imposed by law
or by the courts.
LIM v. DBP G.R. No. 177050 | 1 July 2013
Loan
DOCTRINE: Art. 1956 of the NCC provides that penalties and interest rates should be expressly stipulated
in writing.
DELA PAZ v. L&J DEVELOPMENT COMPANY G.R. No. 183360 | 8 September 2014
Loan
DOCTRINE: No interest shall be due unless it has been expressly stipulated in writing.
The lack of a written stipulation to pay interest on the loaned amount disallows a creditor from charging
monetary interest. Under Article 1956 of the Civil Code, no interest shall be due unless it has been
expressly stipulated in writing.
• Jurisprudence on the matter also holds that for interest to be due and payable, two conditions must
concur:
a) express stipulation for the payment of interest; and
b) the agreement to pay interest is reduced in writing. • Here
• It is basic that there can be no contract in the true sense in the absence of the element of agreement,
or of mutual assent of the parties. If this assent is wanting on the part of the one who contracts, his act
has no more efficacy than if it had been done under duress or by a person of unsound mind.
• Similarly, contract changes must be made with the consent of the contracting parties. The minds of all
the parties must meet as to the proposed modification, especially when it affects an important aspect of
the agreement. In the case of loan contracts, it cannot be gainsaid that the rate of interest is always a
vital component, for it can make or break a capital venture. Thus, any change must be mutually agreed
upon, otherwise, it is bereft of any binding effect.
• The "Hold Out" clause applies only if there is a valid and existing obligation arising from any of the
sources of obligation enumerated in Article 1157 of the Civil Code, to wit: law, contracts, quasicontracts,
delict, and quasi-delict.
A contract of suretyship is defined as an agreement whereby a party, called the surety, guarantees the
performance by another party, called the principal or obligor, of an obligation or undertaking in favor of
a third party, called the obligee. It includes official recognizances, stipulations, bonds or undertakings
issued by any company by virtue of and under the provisions of Act No. 536, as amended by Act No.
2206. We have consistently held that a surety's liability is joint and several, limited to the amount of the
bond, and determined strictly by the terms of contract of suretyship in relation to the principal contract
between the obligor and the obligee. It bears stressing, however, that although the contract of
suretyship is secondary to the principal contract, the surety's liability to the obligee is nevertheless
direct, primary, and absolute.
SPS. EDRALIN v. PHILIPPINE VETERANS BANK G.R. No. 168523 | 9 March 2011
Mortgage
DOCTRINE: Once the title has been consolidated upon the purchaser, he becomes entitled to a writ of
possession and the trial court has the ministerial duty to issue such writ of possession.
the issuance of a writ of possession is ministerial once the purchaser has acquired absolute ownership.
During the period of redemption, the mortgagee is entitled to a writ of possession upon depositing the
approved bond. When the redemption period expires without the mortgagor exercising his right of
redemption, the mortgagor is deemed to have lost all interest over the foreclosed property, and the
purchaser acquires absolute ownership of the property.
With the consolidated title, the purchaser becomes entitled to a writ of possession and the trial court
has the ministerial duty to issue such writ of possession. Thus, the remedy of mandamus lies to compel
the performance of this ministerial duty.
The purchaser’s right for the issuance of a writ of possession is imprescriptible. The purchaser’s right to
request for the issuance of the writ of possession of the land never prescribes. The right to possess a
property merely follows the right of ownership, and it would be illogical to hold that a person having
ownership of a parcel of land Is barred from seeking possession thereof.
A banking institution is expected to exercise due diligence before entering into a mortgage contract. The
general rule that a mortgagee need not look beyond the title does not apply to banks and other financial
institutions as greater care and due diligence is required of them.
• Before approving a loan, the standard practice for banks and other financial institutions is to conduct
an ocular inspection of the property offered to be mortgaged and verify the genuineness of the title to
determine the real owner or owners thereof. Failure to do so makes them mortgagees in bad faith.
Sorensen claims that as an innocent mortgagee for value, she has the superior right to remain in custody
of the owner’s copy of the TCT. She insists that she merely relied on the four corners of said TCT which
at the time of the transaction did not contain any annotation of lis pendens.
• Such is not the case in the present controversy since
A valid mortgage will not arise unless the mortgagor has a valid title or ownership over the mortgaged
property. By way of exception, a mortgagee can invoke that he or she derived title even if the
mortgagor's title on the property is defective, if he or she acted in good faith.
• For the Doctrine of Mortgagee in Good Faith to apply, the mortgagor, who is not the rightful owner,
must have succeeded in obtaining a Torrens title in his name thereafter in mortgaging the property.
IBM PHILIPPINES, INC. v. PRIME SYSTEMS PLUS, INC. G.R. No. 203192 | 15th August 2016
Loan
DOCTRINE: Interest rates must be agreed upon by the creditor and debtor through an express
stipulation in writing in order to be due and demandable.
Article 1956 states that interest rates should be expressly stipulated in writing in order to be due. Stated
differently, interest rates should be (1) expressly stipulated and (2) in writing in order for said rate to be
due and demandable. • In the present case
Succession
Under Article 777 of the Civil Code, the rights to the succession are transmitted from the moment of the
death of the decedent. Thus, petitioner and her coheirs should have been favored on the question of
possession, being heirs who succeeded the registered owner of the properties in dispute. Clearly,
In resolving the issue of possession in an ejectment case, the registered owner of the property is
preferred over the transferee under an unregistered deed of sale. While respondent has in his favor
deeds of sale over the eight parcels of land, these deeds were not registered
INING v. VEGA
G.R. No. 174727 | 12 August 2013
General Principles of Succession
DOCTRINE: One who is merely related by affinity to the decedent does not inherit from the latter and
cannot become a co-owner of the decedent’s property.
Under the Family Code, family relations, which is the primary basis for succession, exclude relations by
affinity. Thus, since none of the co-owners made a valid repudiation of the existing co-ownership
Registration is the operative act which gives validity to the transfer or creates a lien upon the land.
A Torrens title is evidence of indefeasible title to property in favor of the person in whose name the title
appears. It is conclusive evidence with respect to the ownership of the land described therein. It is also
settled that the titleholder is entitled to all the attributes of ownership of the property, including
possession.
An order to cancel the transferor’s title may be enforced against his transferee, whose title is expressly
subject to the outcome of the litigation by the fact of the annotation of lis pendens. The title obtained
by the transferee pendente lite affords him no special protection; he cannot invoke the rights of a
purchaser in good faith and cannot acquire better rights than those of his predecessorin- interest.
Prescription and laches cannot apply to registered land covered by the Torrens system because under
the Property Registration Decree, no title to registered land in derogation to that of the registered
owner shall be acquired by prescription or adverse possession.
The principle that the earlier title prevails over a subsequent one applies when there are two apparently
valid titles over a single property. The existence of the earlier valid title renders the subsequent title void
because a single property cannot be registered twice. A certificate is not conclusive evidence of title if it
is shown that the same land had already been registered and an earlier certificate for the same is in
existence." Clearly, a mere allegation of an earlier title will not suffice.
REPUBLIC v. HEIRS OF RAMOS G.R. No. 169481 | 22 February 2010
Torrens System (General Principles)
DOCTRINE: Section 2 of RA 26 enumerates the sources from which reconstitution of lost or destroyed
original certificates of title may be based: (1) Owner’s duplicate of the certificate of title; (2) Co-
owner’s, mortgagee’s, or lessee’s duplicate of the certificate of title; (3) Certified copy of tile; (4)
Authenticated copy of the decree of registration or patent; (5) A document, on file in the Registry of
Deed by which the property, the description of which is given in said document; and (6) Any other
document which, in the judgment of the court, is sufficient and proper basis for reconstitution the lost
or destroyed certificate of title.
RA 26 lays down the specific procedure for the reconstitution of lost or destroyed Torrens certificates of
title. It confers jurisdiction upon trial courts to hear and decide petitions for judicial reconstitution.
Sec. 2 of R.A. No. 26 enumerates the sources from which reconstitution of lost or destroyed OCTs may
be based, namely:
(a) The owner’s duplicate of the certificate of title;
(b) The co-owner’s, mortgagee’s, or lessee’s duplicate of the certificate of title;
(c) A certified copy of the certificate of title, previously issued by the register of deeds or by a legal
custodian thereof;
(d) An authenticated copy of the decree of registration or patent, as the case may be, pursuant to which
the original certificate of title was issued;
(e) A document, on file in the registry of deeds by which the property, the description of which is given
in said document, is mortgaged, leased or encumbered, or an authenticated copy of said document
showing that its original had been registered; and
(f) Any other document which, in the judgment of the court, is sufficient and proper basis for
reconstituting the lost or destroyed certificate of title.
RESIDENTS OF LOWER ATAB TEACHER’S VILLAGE v. STA. MONICA G.R. No. 198878 | 15 October 2014
Torrens System (General Principles)
DOCTRINE: : For an action to quiet title to prosper, two indispensable requisites must be present,
namely:
(1) The plaintiff or complainant has a legal or an equitable title to or interest in the real property subject
of the action; and
(2) The deed, claim, encumbrance, or proceeding claimed to be casting cloud on his title must be shown
to be in fact invalid or inoperative despite its prima facie appearance of validity or legal efficacy.
Legal title denotes registered ownership, while equitable title means beneficial ownership.
Court held that in an action for recovery of possession, the assessed value of the property sought to be
recovered determines the court’s jurisdiction.
REPUBLIC OF THE PHILIPPINES v. SPS. BENIGNO G.R. No. 205492 | 11 March 2015
Original Registration
DOCTRINE: Unless a public land is shown to have been reclassified as alienable and disposable, it
remains part of the inalienable public domain that cannot be subject for an application for registration
of title.
Under Act No. 3110, the judicial record shall be reconstituted to the extent that the parties agree;
thereafter, the court shall intervene and determine what proper action to take. It can reconstitute only
that part of the record which can stand on its own, and then continue proceedings upon such record so
reconstituted.
• As far as the trial court and parties are concerned, there is admittedly a Judgment rendered in favor of
petitioners in Civil Case No. 989; indeed, the trial court even cited the dispositive portion of said
Judgment in its December 2010 Order, and respondents did the same in their Memorandum before this
Court; that said judgment became final and executory; and that the trial court directed the issuance of a
writ of execution.
Under Sec. 108 of PD 1529, the proceeding for the erasure, alteration, or amendment of a certificate of
title may be resorted to in seven instances including:
(1) when any error, omission or mistake was made in entering a certificate or any memorandum thereon
or on any duplicate certificate; and,
(2) when there is reasonable ground for the annulment or alteration of title.
Proceedings under Sec. 108 are “summary in nature, contemplating corrections or insertions of mistakes
which are only clerical but certainly not controversial issues.
JOSEPHINE WEE v. REPUBLIC OF THE PHILIPPINES G.R. No. 177384| 8 December 2009
Subsequent Registrations
DOCTRINE: In registering land, the applicant must prove his/her claim with incontrovertible evidence.
Being in the nature of involuntary registration, the annotation of the notice of lis pendens on the
original copy of the TCT on file with the Registry of Deeds is sufficient to bind third parties.
Proximate cause is ‘that cause, which, in natural and continuous sequence, unbroken by any efficient
intervening cause, produces the injury and without which the result would not have occurred.
• To determine the proximate cause of a controversy, the question that needs to be asked is: If the
event did not happen, would the injury have resulted? If the answer is no, then the event is the
proximate cause.
Contributory negligence is conduct on the part of the injured party, contributing as a legal cause to the
harm he has suffered, which falls below the standard to which he is required to conform for his own
protection.”
GREENSTAR EXPRESS, INC. v. UNIVERSAL ROBINA CORP. G.R. No. 205090 | 17 October 2016
The Tortfeasor
DOCTRINE: When by evidence of the ownership of vehicle and employment were proved, the
presumption on negligence will be attached, as the registered owner of the vehicle and employer.
Under Article 2180 of the New Civil Code, employers shall be held primarily and solidarily liable for
damages caused by their employees acting within the scope of their assigned tasks. To hold the
employer liable under this provision, it must be shown that an employer-employee relationship exists,
and that the employee was acting within the scope of his assigned task when the act complained of was
committed.
ORIX METRO LEASING AND FINANCE CORPORATION v. MANGALINAO G.R. Nos. 174089 & 174266 | 25
January 2012
The Concepts and Doctrines of Res Ipsa Loquitur, Last Clear Chance, Proximate Cause, Damnum
Absque Injuria, Presumption of Negligence, Vicarious Liability
DOCTRINE: • The Emergency Rule is not applicable when the driver is also negligent
• The registered owner of a vehicle could be held liable for damages even though he is no longer the
actual owner of the vehicle
SUBIC BAY LEGEND RESORTS v. FERNANDEZ G.R. No. 193426 | 29 September 2014
Actual and Compensatory Damages
DOCTRINE: Attorney's fees may be recovered when the defendant acted in gross and evident bad faith
in refusing to satisfy the plaintiff's plainly valid, just and demandable claim, or in any other case where
the court deems it just and equitable that attorney's fees and expenses of litigation should be
recovered.
Under Article 2208 of the Civil Code, attorney's fees may be recovered when the defendant acted in
gross and evident bad faith in refusing to satisfy the plaintiff's plainly valid, just and demandable claim,
or in any other case where the court deems it just and equitable that attorney's fees and expenses of
litigation should be recovered.
CONTINENTAL CEMENT CORPORATION v. ASEA BROWN BOVERI G.R. No. 171660 | 17 October 2011
Actual and Compensatory Damages
DOCTRINE: Damages claimed must be the natural and probable consequences of the breach, which the
parties have foreseen or could have reasonably foreseen at the time the obligation was constituted.
Consequential damages are only awarded if as a result of the expropriation, the remaining property of
the owner suffers from an impairment or decrease in value. In this case, no evidence was submitted to
prove such impairment.
PEOPLE OF THE PHILIPPINES v. MARCELINO CAGA Y FABRE G.R. No. 206878| 22 August 2016
Moral Damages
DOCTRINE: In rape cases, the victim is awarded civil indemnity, exemplary damages and moral damages.
MEYR ENTERPRISES v. CORDERO G.R. No. 197336 | 3 September 2014
Moral Damages
DOCTRINE: The recovery of moral damages for malicious prosecution is allowed under Article 2219 of
the Civil Code, while attorney’s fees and expenses of litigation may be adjudged in malicious prosecution
cases pursuant to Article 2208 of the same Code.
the recovery of moral damages for malicious prosecution is allowed under Article 2219 of the Civil Code,
while attorney’s fees and expenses of litigation may be adjudged in malicious prosecution cases
pursuant to Article 2208 of the same Code.
• Malicious prosecution has been defined as ‘an action for damages brought by one against whom a
criminal prosecution, civil suit, or other legal proceeding has been instituted maliciously and without
probable cause, after the termination of such prosecution, suit, or other proceeding in favor of the
defendant therein.’
ONE NETWORK RURAL BANK v. BARIC G.R. No. 193684 | 5 March 2014
Nominal Damages
DOCTRINE: A third party who did not commit a violation of the plaintiff’s rights may not be held liable
for nominal damages.
SWIFT FOODS, INC. v. SPOUSES MATEO G.R. No. 170486 | 12 September 2011
Actual and Compensatory Damages; Moral Damages; Nominal Damages
DOCTRINE: Where there has been a breach of contract but actual damages have not been established,
nominal damages may be awarded to vindicate the injured party’s rights.
• The person claiming moral damages must prove the existence of bad faith by clear and convincing
evidence for the law always presumes good faith.
• Bad faith is defined as a state of mind affirmatively operating with furtive design or with some motive
of self-interest or ill will or for ulterior purpose.
In situations where there has been a breach of contract but actual damages have not been established,
nominal damages may be awarded to vindicate the injured party’s rights.
ENGR. APOLINARIO DUEAS VS. ALICE GUCE-AFRICA G.R. No. 165679 | 5 October 2009
Temperate or Moderate Damages
DOCTRINE: Temperate or moderate damages may be recovered when some pecuniary loss has been
suffered but its amount cannot, from the nature of the case, be proved with certainty.
In the absence of competent proof on the amount of actual damages suffered, a party is entitled to
temperate damages.
• Temperate or moderate damages may be recovered when some pecuniary loss has been suffered but
its amount cannot, from the nature of the case, be proved with certainty. In the case at bar, there is no
doubt that respondent sustained damages due to the breach committed by the petitioner.
PEOPLE v. BERNARDINO PERALTA and MICHAEL AMBAS G.R. No. 208524 | 1 June 2016
Temperate or Moderate Damages
DOCTRINE: Temperate damages are recovered when the court finds some pecuniary loss has been
suffered but its amount cannot be proved with certainty.
Under Article 2224 of the Civil Code, temperate damages may be recovered when the court finds that
some pecuniary loss had been suffered but its amount, cannot, from the nature of the case, be proved
with certainty.
In the absence of proof on the exact sum of actual damages, there was no basis for granting the same.
"Credence can be given only to claims which are duly supported by receipts."
ADRIAN WILSON INT'L v. TMX PHILIPPINES G.R. No. 162608 | 26 July 2010
Actual and Compensatory Damages; Temperate or Moderate Damages
DOCTRINE: One is entitled to an adequate compensation only for such pecuniary loss suffered by him as
he has duly proved.
Vouchers are not receipts. A receipt is a written and signed acknowledgment that money has been
received or goods have been delivered, while a voucher is documentary record of a business
transaction.
Moral damages were correctly awarded to the heirs of the victim without need of proof other than the
fact that a crime was committed resulting in the death of the victim and that the accused was
responsible therefor.
In lieu of actual damages, the heirs of the victim can still be awarded temperate damages. When
pecuniary loss has been suffered but the amount cannot, from the nature of the case, be proven with
certainty, temperate damages may be recovered.
Article 2229 of the Civil Code provides that exemplary damages may be imposed by way of example or
correction for the public good, in addition to the moral, temperate, liquidated or compensatory
damages. They are, however, not recoverable as a matter of right. They are awarded only if the guilty
party acted in a wanton, fraudulent, reckless, oppressive or malevolent manner.
Moral damages may be awarded when the breach of contract is attended with bad faith Exemplary
damages may also be awarded when a wrongful act is accompanied by bad faith or when the defendant
acted in a wanton, fraudulent, reckless, oppressive, or malevolent manner and since the award of
exemplary damages is proper in this case, attorney's fees and costs of the suit may also be recovered, as
stipulated in the lease agreement.
• Bad faith "means breach of a known duty through some motive or interest or ill will." By refusing to
honor their solemn obligations under the lease, and instead unduly profiting from these violations,
petitioners are guilty of bad faith.
• The court makes a distinction between civil indemnity and moral damages. Civil indemnity is granted
to the heirs of the victim without need of proof other than the commission of the crime; while moral
damages are awarded despite the absence of proof of mental and emotional suffering of the victim’s
heirs.
• The award of actual damages was correctly deleted by the CA as the victim’s mother failed to present
receipts to prove the civil liability of Yanson. The award of temperate damages in lieu thereof is likewise
correct.
• The award of attorney’s fees is likewise sustained as the same was not assailed.