G.R. No.

80294-95 September 21, 1988

CATHOLIC VICAR APOSTOLIC OF THE MOUNTAIN PROVINCE, petitioner,

vs.
COURT OF APPEALS, HEIRS OF EGMIDIO OCTAVIANO AND JUAN
VALDEZ, respondents.

Facts:

Defendant Catholic Vicar Apostolic of the Mountain Province (VICAR for brevity) filed
with the Court of First Instance of Baguio Benguet on September 5, 1962 an
application for registration of title, situated at Poblacion Central, La Trinidad, Benguet,
said Lots being the sites of the Catholic Church building, convents, high school
building, school gymnasium, school dormitories, social hall, stonewalls, etc.

On March 22, 1963 the Heirs of Juan Valdez and the Heirs of Egmidio
Octaviano filed their Answer/Opposition on Lots Nos. 2 and 3, respectively, asserting
ownership and title thereto. After trial on the merits, the land registration court
promulgated its Decision, dated November 17, 1965, confirming the registrable title of
VICAR to Lots 1, 2, 3, and 4.

Upon appeal by the private respondents (heirs), the decision of the lower court
was reversed. Title for lots 2 and 3 were cancelled.

On May 9, 1977, the Heirs of Octaviano filed a motion for reconsideration

praying the Court of Appeals to order the registration of Lot 3 in the names of the
Heirs of Egmidio Octaviano, and on May 17, 1977, the Heirs of Juan Valdez and
Pacita Valdez filed their motion for reconsideration praying that both Lots 2 and 3 be
ordered registered in the names of the Heirs of Juan Valdez and Pacita Valdez. On
August 12,1977, the Court of Appeals denied the motion for reconsideration filed by
the Heirs of Juan Valdez on the ground that there was "no sufficient merit to justify
reconsideration one way or the other ...," and likewise denied that of the Heirs of
Egmidio Octaviano.

VICAR filed with the Supreme Court a petition for review on certiorari of the
decision of the Court of Appeals dismissing his application for registration of Lots 2
and 3.

The Heirs of Octaviano presented one (1) witness, who testified on the alleged
ownership of the land in question (Lot 3) by their predecessor-in-interest, Egmidio
Octaviano; his written demand to Vicar for the return of the land to them; and the
reasonable rentals for the use of the land at P10,000 per month. On the other hand,
Vicar presented the Register of Deeds for the Province of Benguet, Atty. Sison, who
testified that the land in question is not covered by any title in the name of Egmidio
Octaviano or any of the heirs. Vicar dispensed with the testimony of Mons. Brasseur
when the heirs admitted that the witness if called to the witness stand, would testify
that Vicar has been in possession of Lot 3, for 75 years continuously and peacefully
and has constructed permanent structures thereon.
Issue:

Whether or not the failure to return the subject matter of commodatum

constitutes an adverse possession on the part of the owner

Decision:

WHEREFORE AND BY REASON OF THE FOREGOING, this petition is

DENIED for lack of merit, the Decision dated Aug. 31, 1987 in CA-G.R. Nos. 05148
and 05149, by respondent Court of Appeals is AFFIRMED, with costs against
petitioner

Rationale:

The bailees’ failure to return the subject matter of commodatum to the bailor did
not mean adverse possession on the part of the borrower. The bailee held in trust the
property subject matter of commodatum.

Petitioner repudiated the trust by declaring the properties in its name for taxation
purposes.

The Court of Appeals found that petitioner Vicar did not meet the requirement of
30 years possession for acquisitive prescription over Lots 2 and 3. Neither did it
satisfy the requirement of 10 years possession for ordinary acquisitive prescription
because of the absence of just title. The appellate court did not believe the findings of
the trial court that Lot 2 was acquired from Juan Valdez by purchase and Lot 3 was
acquired also by purchase from Egmidio Octaviano by petitioner Vicar because there
was absolutely no documentary evidence to support the same and the alleged
purchases were never mentioned in the application for registration.