ANTONIO QUIRINO, as Special Administrator, Testate Estate of Natividad C.

Raquiza
and Intestate Estate of Carmen M. Castellvi vs.
HON. NATHANIEL M. GROSPE, in his capacity as Presiding Judge, Branch VI, Court of
First Instance of Pampanga, Fifth Judicial District, and WILFREDO M. GOINGCO,
Administrator, Testate Estate of Don Alfonso Castellvi

G.R. No. L-58797 April 25, 1988

FACTS:

The antecedents are as follows:

On 7 March 1940, Don Alfonso Castellvi, single, died in Algeciras, Spain. In his Last
Will and Testament, he bequeathed two-thirds (2/3) of his estate to his legally adopted daughter,
Natividad Castellvi who was then only fourteen (14) years old, and the other one-third (1/3) of
his estate to his brother, Don Juan, who was made administrator of Don Alfonso's estate. Don
Juan was then already married to Carmen Mendoza Castellvi and the latter succeeded Don Juan,
upon his death in 1949, as Administratrix of the testate estate of Don Alfonso Castellvi.

Don Alfonso's last will was admitted to probate on 11 December 1940, in the Court of
First Instance of Pampanga.

On 27 September 1949, during the pendency of the proceedings, and in which he was the
Administrator, Don Juan Castellvi died testate, leaving an estate consisting of the one-third (1/3)
portion of the estate of his brother, Don Alfonso Castellvi. On 9 April 1980, or a little over thirty
(30) years after her husband's death, and about six (6) months before her own death, Carmen M.
Castellvi, filed a petition, in the Court of First Instance of Rizal, Pasay City, to probate the will of
her late husband, Don Juan Castellvi.

In his last will and testament, Don Juan Castellvi gave the usufruct of his entire estate
(consisting, as aforestated, of his one-third (1/3) share in the estate of Don Alfonso Castellvi) to
his widow, Carmen M. Castellvi. Upon Carmen's death on 25 October 1980, two (2) of her
children, Carmen de Castellvi and Dolores Castellvi vda. de Gil, prayed the probate court to be
substituted as petitioners, in their mother's stead, but only to move for the dismissal of the
petition on the same day. The probate court granted their request.

On 12 December 1980, or soon after they had obtained the dismissal, of the petition for
the probate of their father's will a petition for intestacy of Carmen M. Castellvi was filed, again
by her daughters Carmen de Castellvi and Dolores C. vda. de Gil, this time, in Court of First
Instance of Rizal, Quezon City.

On 30 April 1981, the last mentioned petition was dismissed, without prejudice, for lack
of interest on the part of the petitioners. On 12 October 1981, however, Antonio Quirino, a
creditor, petitioned the court to set the case for hearing, stating his interest and willingness to
advance the publication expenses. On 14 October 1981, the court set aside the Order of dismissal
and appointed Antonio Quirino, as Special Administrator, with a directive to proceed to
Pampanga to determine the estate of Carmen M. Castellvi in the pending proceedings for
settlement of Don Alfonso Castellvi's estate.

Meanwhile, on 19 March 1981, and still, during the pendency of the special proceedings
in the Court of First Instance of Pampanga, the other instituted heir of Don Alfonso Castellvi,
namely, Natividad Castellvi died testate, leaving as estate her inherited two-thirds (2/3) share in
the testate estate of Don Alfonso Castellvi. On 11 May 1981, a petition for the approval of her
will was filed in the Court of First Instance of Rizal, Pasig. The Notice of Hearing was duly
published and served on all parties concerned and at the scheduled date of hearing on 25
September 1981, petitioner, Antonio Quirino, was appointed Special Administrator in lieu of the
Executor named in the will, Judge (now Justice) Leonor Ines Luciano, who declined the office.
Petitioner Antonio Quirino took her place.

The entire estate of Don Alfonso Castellvi consists of two (2) parcels of land situated in
Floridablanca, Pampanga, respectively, of the Registry of Deeds of Pampanga. The land covered
by TCT No. 13631-R was later expropriated by the Philippine Government and is now largely
occupied by the Basa Air Base. As of 10 July 1959, the expropriated value of the land under
TCT No. 13631-R was placed at three million seven hundred ninety-six thousand nine hundred
forty-five pesos (P3,796,945.00) plus interest at six per cent (6%) per annum from 10 July 1959.
The government has not yet fully paid the expropriation price of the land. The other parcel of
land (TCT No. 13632-R) containing twenty-four (24) hectares was not expropriated and is
unappraised.

Nobody then ever guessed that almost half a century would pass and the estate
proceedings would still be subsisting.

Within six (6) months following the last publication of notice to creditors several
claimants

The claim of Ma. Nieves Toledo was approved for payment on 27 April 1943 but actually
paid only on 20 December 1957. The claims of Alejandro Lopez, Melquiades Valencia and Irene
Cordero were ordered dismissed by the court only on 5 October 1981 (after forty (40) years) for
failure to prosecute. The record fails to disclose the disposition of Juan Castellvi's claim, as
creditor.

Petitioner Antonio Quirino, Special Administrator of the Testate Estate of Natividad

Castellvi-Raquiza (instituted heiress to two-thirds (2/3) of the testate estate of Don Alfonso
Castellvi) now contends that, after having disposed of the only valid claim against the estate of
Don Alfonso Castellvi, namely, that of Ma. Nieves Toledo, the probate court should have
proceeded with the settlement and distribution of the estate of the instituted heirs, in accordance
with the dispositions of the Will of the testator Don Alfonso, as the extent and value of his estate
had already been determined. However, the probate court did not do this but, instead, entertained
controversial and purely money claims, not against the estate but against the instituted heirs, of
the estate, which have dissipated the value of the estate.
ISSUE:

Petitioner assails specifically in this petition the following Orders of the court.

1. Order dated 7 September 1981, directing respondent Wilfredo M. Goingco, as Administrator

of the Testate Estate of Don Alfonso Castellvi, to withdraw from its funds on deposit the sum of
P200,000.00 to pay the heirs of Atty. Cuadrajento Mendoza, in settlement of attorney's fees fixed
at twelve percent (12%) of the gross value of the estate of Don Alfonso Castellvi;

2. Order dated 2 October 1981, authorizing respondent Administrator Goingco to withdraw from
the estate's funds on deposit the sum of P250,000.00 and pay the same to the Estate of Exequiel
Floro and the Manila Underwriters Insurance Co., for services rendered by the late Exequiel
Floro to Administratrix Carmen M. Castellvi to improve the value of the estate of Don Alfonso;

3. Order dated 5 October 1981, granting, among others, the Motion of Atty. Juan F. Gomez,
counsel for the heirs of Don Juan Castellvi, for the court to fix his attorney's fees at twelve
percent (12%) of the one-third (1/3) share of Don Juan Castellvi in the estate of Don Alfonso,
plus the sum of P30,000.00 representing "transportation and representation expenses;"

4. Order dated 15 October 1981, granting the Motion of Antonio V. Raquiza Sr. to be paid
P250,000.00 as attorney's fees for

5. Order dated 20 October 1981, authorizing implementation of the above Order (15 October
1981), upon the offer of movant to file a bond of P250,000.00.

RULING:

According to petitioner, claims for services allegedly rendered to the Administratrix,

Carmen M. Castellvi, should have been charged to her 12% fees as Administratrix, and not
directly against the estate. He also contends that, upon the demise of Don Juan Castellvi and
Natividad Castellvi-Raquiza, and the receipt of notice of petitions for probate of their respective
wills in other courts, the respondent probate court should have refrained (but did not) from
issuing orders for the release and disbursement of funds from their respective undistributed
shares in the estate of Don Alfonso Castellvi, and that the claimants could reiterate their
respective claims before the appropriate probate courts.

In his Comment to the petition, the respondent Administrator of the estate of Don Alfonso
Castellvi alleges that long before the respondent Judge presided over the probate court with
jurisdiction, the same probate court presided over by other judges had already fixed the fees of
Carmen M. Castellvi, as Administratrix, and the fees of Messrs. Cuadrajento Mendoza and
Exequiel Floro, with the conformity of the instituted heirs and he noted assignments and
dispositions made by the instituted heirs over their share, right and participation in the estate of
Don Alfonso Castellvi as contained in orders issued many years before.

The Court held that, the petition is DENIED insofar as the respondent court's orders
dated 7 September 1981 and 2 October 1981 are concerned. Said orders are AFFIRMED, being
orders implementing earlier orders which have long become final and executed with the
conformity of the heirs of the estate of Don Alfonso Castellvi. However, petition is GRANTED
insofar as the orders of the respondent court, dated 5, 15 and 20 October 1981, respectively are
concerned. Said last three (3) orders are REVERSED and SET ASIDE. Attorneys Juan F. Gomez
and Antonio V. Raquiza are hereby ordered to return to the estate of Don Alfonso Castellvi, the
respective amounts of P30,000.00 and P250,000.00 they have received from said estate. The
temporary restraining order issued by the Court on 18 November 1981 is made permanent
insofar as said last three (3) orders are concerned. It is LIFTED as to orders dated 7 September
and 2 October 1981.

The Court hereby orders the final settlement, termination and closure of this unduly
delayed estate proceedings. "Testate Estate of the late Don Alfonso de Castellvi" where the
shares of Natividad Castellvi-Raquiza and Juan Castellvi have only to be finally determined,
quantified and distributed to said instituted heirs or their respective estates. No further claims at
this stage shall be allowed or entertained much less paid, against the share of instituted heirs in
the estate of Don Alfonso Castellvi.

Respondent Judge, or his successor, is hereby ordered to submit to this Court a report
within two (2) months from receipt or notice of this Decision, as to the specific and concrete
steps taken by him for the final settlement, termination and closure of the testate estate of Don
Alfonso Castellvi and distribution of its net estate, if any, to the instituted heirs or their respective
estates. The current Administrator is likewise ordered within the same period of two (2) months
to submit to this Court the total current value of the remaining assets of the estate, including
receivables, and its liabilities, including tax liabilities to the government, as well as the final
disposition of the net estate in accordance with the last will and testament of Don Alfonso
Castellvi.