SOLIDARIOS v. ALAMPA AL AMPAY Y G.R. No. L-39592 January 28, 1975 1975
A!"S
S#ou$%$ S#ou$%$ An&on'o Jay(% an) Ana So*')ar' So*')ar'o$ o$ +#%&'&'on +#%&'&'on%r$ %r$ *%) a o(#*a'n& o(#*a'n& a/a'n$ a/a'n$&& 0%n'&o 0%n'&o On/ or reformation of instrument an) #ray'n/ &a& &% deed of sale of the parcel of land %%u&% %%u&%) ) 4y &%( on D%%(4%r D%%(4%r 2, embody y their their true true agree agreeme ment nt 4% 196 196 'n avor avor o On/ ' ' did not embod r%or(%) r%or(%) an) declared a contract of mortgage an) &a& &%'r #ro#%r&y 4% r%&urn%) &o &%( u#on #ay(%n& o &% *oan on$')%ra&'on o P16, 5 an) &a& &%y 4% aar)%) )a(a/%$.
Aor)' Aor )'n/ n/ &o &% #%&'&' #%&'&'on% on%r$ r$,, &%y &%y %n&%r %n&%r%) %) 'n&o 'n&o an a/r%%( a/r%%(%n& %n& '& '& On/ %r%4y &%y a/r%%) &a& &%y '** 4orro ro( On/ &% $u( o P16, 5 on &% $%ur'&y $%ur'&y o &%'r &%'r #ar%* #ar%* o *an). *an). On/ a/r%%) a/r%%) &o &%'r &%'r r%u% r%u%$& $& on &% on) on)'& '&'o 'on n &a& &a& #%&' #%&'&' &'on on%r %r$ $ ou* ou*) ) %% %%u& u&% % 'n '$ '$ avo avorr a )%%) )%%) o $a*% $a*%.. P%&'&'on%r$ %%u&%) &% $a') )%%) o a4$o*u&% $a*% 'n avor o On/ or &% r%a$on &a& &%y r%#o$%) /r%a& on)%n% 'n '( 4%'n/ a /oo) a('*y r'%n) an) $'n% &%y %r% 'n )'r% n%%) o (on%y. +G'-'*a) ra :u) $'*a n' On/
S'(u*&an%ou$ &o &% %%u&'on o &% )%%) o $a*%, On/ %%u&%) 'n avor o #%&'&'on%r$ an o#&'on &o r%#ura$% &% #ar%* o *an) or 6 (on&$ or &% $a(% $u( o P16, 5.
;%n &% &'(% a(% %n #%&'&'on%r$ %r% '**'n/ an) r%a)y &o #ay On/ &% *oan, &% *a&&%r un:u$&*y r%u$%) &o %%u&% %%u&% &% #ro#%r )ou(%n& o (or&/a/% an) a%#& #%&'&'on%r$< #ay(%n& o &%'r *oan &o '(. =%n%, #%&'&'on%r$ *%) &'$ o(#*a'n&.
raised ed the the defe defens nse e of On/ On/ *%) *%) '$ '$ an$ an$%r %r '& '& oun oun&% &%rr*a' *a'( ( an) an) rais prescription. =% a$ o%v%r )'r%&%) 4y &% our& &o ra'$% &% )%%n$% o #r%$r'#&'on 'n '$ (o&'on &o )'$('$$.
"r'a* "r'a* our& /ran&%) On/<$ (o&'on &o )'$('$$. No evidence on the issue of prescription was received by trial court at the hearing of the motion to dismiss. The court merely relied on the allegation of the complaint and the plead pleading ings. s. "r'a* "r'a* our& )'$('$$%) &% o(#*a'n& on &% o**o'n/ /roun)$> o "% #ro#%r r%(%)y o #%&'&'on%r$ $ou*) av% 4%%n &% annu*(%n& o &% $a*% on &% /roun) o v'&'a&%) on$%n& ' a&'on a$ #r%$r'4%) '&'n &% -y%ar #%r'o) '&'n/ Ar&. 1391 o &% !'v'* !o)% o
ISS?@S
"% %'$&%n% o a (or&/a/% %%u&%) %%u&%) 4y On/ 'n avor o Jo$% )%* r) !a$&'**o +3 #ar&y #ar&y o '$ a (or&/a/%% (or&/a/%% 'n /oo) a'& a'& #r%$%n& #r%$%n&$ $ a *%/a* *%/a* '(#%)'(%n& &o #%&'&'on%r$< a&'on or r%or(a&'on an) r%ov%ry o &% #ro#%r&y r%% ro( a** *'%n$ an) %nu(4ran%$
1. ;ON &% a&'on or r%or(a&'on o &% 'n$&ru(%n& 4y #%&'&'on%r$ a$ #r%$r'4%) 2. ;ON &r'a* our&<$ o&%r /roun) or )'$('$$a* +#r%$%n% o (or&/a/%% 'n /oo) a'& a$ orr%&
R?LING 1. "% a&'on or r%or(a&'on o 'n$&ru(%n& 4y #%&'&'on%r$ a$ no& #r%$r'4%)
$'n% &% a##*'a4*% #r%$r'#&'on #%r'o) on actions based upon written contract and for reformation thereof a$ #rov')%) 4y *a '$ 10 YEAR a$ #rov')%) 'n Ar&'*% 11, !'v'* !o)%. Respondent court manifestly erred in holding that petitioners! action prescribed four years after the e"ecution of the #uestioned deed of sale on &% #r%('$% o '&$ un$u##or&%) #r%:u)/(%n& 'n '&$ )'$('$$a* or)%r +'&ou& &r'a* an) %v')%n% &a& B&% u*&'(a&% a/r%%(%n& o &% #ar&'%$ +a$ or &% )%n'&% $a*% an) onv%yan% +o &% #ro#%r&yB. "% oun&%r-&%ory o r%$#on)%n& &a& &% u%$&'on%) on&ra& a$ 'n &ru& a 4ona )% $a*% '$ *%ar*y a (a&&%r o )%%n$% , ' a$ y%& &o 4% %$&a4*'$%) a& &% &r'a* an) ou*) no& 4% ava'*%) o a& &% #r%-&r'a* $&a/% &o )'$('$$ &% a$% a$ ' '& %r% a*r%a)y a #rov%n a&.
Respondent court instead of disregarding$ should have adhered to the established rule that in motions to dismiss$ the allegations of the complaint are deemed to be hypothetically admitted . %ere$ the complaint for reformation of instrument clearly alleged that the deed of sale did not e"press the true agreement of the parties and should be reformed into the mortgage that it actually was an) #ray%) &a& #%&'&'on%r$ 4% a**o%) &o r%)%%( &% #ro#%r&y 4y r%#ay'n/ &% *oan o P16,5. +&% &ru% va*u% o &% #ro#%r&y 4%'n/ (u (or%, a$ %v')%n%) 4y &% (or&/a/% *oan or P1,. ' r%$#on)%n& 'n &urn $%ur%) on '&. uch allegations are binding for purposes of the dismissal motion. "% r'/& &o r%or(a&'on '$ %#r%$$*y r%o/n'C%) 'n Ar&. 1365, !'v'* !o)%> I &o #ar&'%$ a/r%% u#on &% (or&/a/%% or #*%)/% o r%a*E#%r$ona* #ro#%r&y 4u& &% 'n$&ru(%n& $&a&%$ &a& &% #ro#%r&y '$ $o*) a4$o*u&%*y or '& a r'/& &o r%#ura$%, r%or(a&'on o &% 'n$&ru(%n& '$ #ro#%r.F
2. "% &r'a* our&<$ o&%r /roun) or )'$('$$a* '$ no& orr%& $'n% &% (or&/a/%%<$
r'/&$ ov%r &% #ro#%r&y ou*) no& )%%a& #%&'&'on%r$< a&'on or r%or(a&'on an) r%ov%ry o &'&*% &o &% #ro#%r&y. I #%&'&'on%r$ #r%va'*, &%y an r%ov%r &% &'&*% &o &% #ro#%r&y $u4:%& &o &% (or&/a/% &%r%on 'n avor o )%* !a$&'**o or r%$#on)%n& On/ (ay 4% )u*y $%n&%n%) &o )%*'v%r &% &'&*% &o &% #%&'&'on%r$ r%% ro( any %nu(4ran%$ 'n*u)'n/ &% (or&/a/%F. "'$ (%an$ &a& r%$#on)%n& On/ '$ o4*'/%) &o )'$ar/% )%* !a$&'**o<$ (or&/a/% r%)'& +' (or&/a/% *oan % o4&a'n%) a&%r a** or '$ on %*u$'v% 4%n%&.
arn'n/
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&.R. No. '()*+*, -anuary ,$ 1*/+ The pouses ANTN -AY2E and ANA '3AR$ #%&'&'on%r$, v$. %on. -udge NETR A'A24AY and 5ENT N&$ r%$#on)%n&$.
Edmundo G. Manlapao for petitioners. Osmundo R. Victoriano and Eduardo P. Arboleda for private respondents.
TEE%AN6EE$ J.: In &'$ r%v'% on #ur% u%$&'on$ o *a o r%$#on)%n& our&H$ /ran&'n/ o &% (o&'on &o )'$('$$ #%&'&'on%r$H a&'on or r%or(a&'on o 'n$&ru(%n&, &% !our& r%v%r$%$ an) r%(an)$ &% a$% or &r'a* an) a):u)'a&'on on &% (%r'&$. The 7ivil 7ode provides
that where$ as alleged in the complaint$ two parties agree upon the mortgage of real property but the instrument states that the property is sold absolutely or with a right of repurchase$ an action for reformation of the instrument is proper . "% #r%$r'#&'v% #%r'o) (u$& 4% )%&%r('n%) on &% 4a$'$ o &% a**%/a&'on$ o &% o(#*a'n& or r%or(a&'on o 'n$&ru(%n& an) no& on &% oun&%ra**%/a&'on$ o &% (o&'on &o )'$('$$ +' (u$& y#o&%&'a**y a)('& &% a&ua* a**%/a&'on$ o &% o(#*a'n& &a& &% &ran$a&'on a$ a&ua**y a &ru% $a*% +' '$ a (a&&%r o )%%n$%, o an a&'on or annu*(%n& o ' ou*) #r%$r'4% 'n &% *%$$%r #%r'o) o our y%ar$. "% %'$&%n% o a bona de (or&/a/% 'n avor o a &'r) #ar&y *%ar*y on$&'&u&%$ no '(#%)'(%n& &o #%&'&'on%r$H a&'on or r%or(a&'on an) r%ov%ry o &'&*%. On Nov%(4%r 29, 1972, #%&'&'on%r$-$#ou$%$ *%) a o(#*a'n& a/a'n$& #r'va&% r%$#on)%n& 'n &% our& o r$& 'n$&an% o N%/ro$ O')%n&a* #r%$')%) 4y r%$#on)%n& :u)/% or r%or(a&'on o 'n$&ru(%n& an) #ray'n/ &a& &% deed of absolute sale o &% #ar%* o *an) 'n 0ao*o) !'&y %%u&%) 4y &%( on D%%(4%r 2, 196 'n avor o #r'va&% r%$#on)%n& ' )') no& %(4o)y &%'r &ru% a/r%%(%n& 4% r%or(%) an) declared a contract of mortgage an) &a& &%'r #ro#%r&y 4% r%&urn%) &o &%( u#on &%'r #ay(%n& o &% *oan on$')%ra&'on o P16,5. an) &a& &%y 4% aar)%) )a(a/%$, a&&orn%y$H %%$ an) o$&$. In &%'r o(#*a'n&, #%&'&'on%r$ a**%/% &a& Bon D%%(4%r 2, 196 the plainti8s and the defendant ng entered into an agreement whereby they agreed that the plainti8s will borrow from the defendant the sum of 419$+00.00 on the security of the parcel of land a4ov% (%n&'on%)B B&a& &% )%%) o $a*% )o%$ no& %(4o)y &% &ru% a/r%%(%n& o &% #ar&'%$ ' a$ &o on$&'&u&% a (or&/a/% ov%r Lo& No. 27-A, 0ao*o) !a)a$&r% a4ov% (%n&'on%) &o $%ur% #ay(%n& o &% *oan o P16,5.B B&a& plainti8s acceded to the condition re#uired by the defendant ng :to e"ecute in his favor a deed of sale; for the reason that they reposed great con
&% #ur#or&%) $a*% u# &o no, #%&'&'on%r$ Bon&'nu% &o ou#y #ar& o &% #r%('$%$ '&ou& #ay'n/ r%n&a*$ &o &% )%%n)an& (or%ov%r, #*a'n&'$ o**%& u# &o &% #r%$%n& &'(% a** &% r%n&a*$ )u% ro( &% o&%r ou#an&$ o &% #r%('$%$B &a& &% B$u( o P16,5. ... '$ /ro$$*y 'na)%ua&% or #ur#o$% o )%n'&% $a*% ...B &a& &% B#*a'n&'$ a) on $%v%ra* oa$'on$ o%r%) &o &% )%%n)an& On/ &o #ay &% $u( o P16,5. r%#r%$%n&'n/ &% *oan ...B &a& &% #*a'n&'$ ar% B'**'n/ an) r%a)y &o #ay )%%n)an& &% *oan o P16,5. #*u$ *au* 'n&%r%$& ' )u%B &a& B)u% &o &% )%%n)an& On/H$ un:u$& r%u$a* &o %%u&% &% #ro#%r )ou(%n& o (or&/a/% an) &o a%#& #*a'n&'H$ #ay(%n& o &%'r *oan &o '( &%y $u%r%) )a(a/%$.B 1 R%$#on)%n& *%) '$ an$%r '& oun&%r*a'( an) ra'$%) &% defense of prescription 'n '$ an$%r. R%$#on)%n& our& a&%r #r%-&r'a* )'r%&%) r%$#on)%n& &o ra'$% &% '$$u% o #r%$r'#&'on $uar%*y 'n a (o&'on &o )'$('$$. P%&'&'on%r$ *%) &%'r o##o$'&'on &o &% )'$('$$a* (o&'on an) a&%r %ar'n/, r%$#on)%n& our& '$$u%) '&$ or)%r o Jun% 1, 197 /ran&'n/ &% (o&'on &o )'$('$$ an) )'$('$$'n/ #%&'&'on%r$H a$%.
No evidence on the sole issue of prescription was received by respondent court at the hearing of the dismissal motion . t merely relied on the allegations of the complaint and the pleadings and granted dismissal on &o /roun)$, &o '&, 1. "% #ro#%r r%(%)y o #%&'&'on%r$ on &% 4a$'$ o &% o(#*a'n& '$ annu*(%n& o &% $a*% on &% /roun) o Bv'&'a&%) on$%n&B ' a&'on a$ #r%$r'4%) '&'n &% $&a&u&ory our-y%ar #%r'o) '&'n/ Ar&'*% 1391, !'v'* !o)% ,an) 2. "% %'$&%n% o a (or&/a/% or P1,. ov%r &% *o& %%u&%) 4y r%$#on)%n& 'n avor o Jo$% )%* !a$&'**o )o '$ a (or&/a/%% 'n /oo) a'& #r%$%n&$ a *%/a* '(#%)'(%n& &o #%&'&'on%r$H a&'on or r%or(a&'on o 'n$&ru(%n& an) r%ov%ry o &% #ro#%r&y r%% ro( a** *'%n$ an) %nu(4ran%$. R%on$')%ra&'on a$ #%r%(#&or'*y )%n'%) 'n r%$#on)%n& our&H$ or)%r o Au/u$& 5, 197. =%n%, &% #r%$%n& #%&'&'on or r%v'% on %r&'orar' on #ur% u%$&'on$ o *a. "% !our& #%r '&$ r%$o*u&'on o January 13, 1975 'n v'% o &% $'(#*% '$$u%$ 'nvo*v%) r%$o*v%) &o on$')%r &% a$% a$ a $#%'a* 'v'* a&'on an) r%$#on)%n&H$ (o&'on &o )'$('$$ a$ '$ an$%r &o &% #%&'&'on 'n or)%r &o %#%)'&'ou$*y )'$#o$% o &% *%/a* u%$&'on$ #r%$%n&%) '&ou& &% n%%) an) %#%n$% o #ar&'%$H 4r'%$. "% petition has merit and calls for the setting aside of the dismissal order . 1. Respondent court manifestly erred in holding that petitioners! action
prescribed four years after the e"ecution of the #uestioned deed of sale on &% #r%('$% o '&$ un$u##or&%) #r%:u)/(%n& 'n '&$ )'$('$$a* or)%r +'&ou& &r'a* an) %v')%n% &a& B&% u*&'(a&% a/r%%(%n& o &% #ar&'%$ +a$ or &% )%n'&% $a*% an) onv%yan% +o &% #ro#%r&yB, = an) &a& #%&'&'on%r$H a&'on Bou*) 'nvo*v%, no& &% r%or(a&'on o $a') )ou(%n& o $a*% 'n&o a (or&/a/% a$ &%y $o on&%n), 4u& 'n%r%n&*y &% annu*(%n& '&$%* o &% )%%) o $a*% an) on*y 4%au$% o an a**%/%) v'&'a&%) on$%n& o &% #*a'n&'$ 'n a%)'n/ &o &% on)'&'on$ r%u'r%) 4y &% )%%n)an&.B +
Respondent court instead of disregarding$ should have adhered to the established rule that in motions to dismiss$ the allegations of the complaint are deemed to be hypothetically admitted . %ere$ the complaint
for reformation of instrument clearly alleged that the deed of sale did not e"press the true agreement of the parties and should be reformed into the mortgage that it actually was an) #ray%) &a& #%&'&'on%r$ 4% a**o%) &o r%)%%( &% #ro#%r&y 4y r%#ay'n/ &% *oan o P16,5. +&% &ru% va*u% o &% #ro#%r&y 4%'n/ (u (or%, a$ %v')%n%) 4y &% (or&/a/% *oan or P1,. ' r%$#on)%n& 'n &urn $%ur%) on '&. uch allegations are binding for purposes of the dismissal motion and therefore the applicable prescription period for such actions based upon a written contract and for reformation thereof as provided by law is ten :10 years a$ #rov')%) 'n Ar&'*% 11, !'v'* !o)%. 9 Su r'/& &o r%or(a&'on '$ %#r%$$*y r%o/n'C%) 'n Ar&'*% 1365 o &% !'v'* !o)% ' #rov')%$ &a& BI &o #ar&'%$ a/r%% u#on &% (or&/a/% or #*%)/% o r%a* or #%r$ona* #ro#%r&y 4u& &% 'n$&ru(%n& $&a&%$ &a& &% #ro#%r&y '$ $o*) a4$o*u&%*y or '& a r'/& &o r%#ura$%, r%or(a&'on o &% 'n$&ru(%n& '$ #ro#%r.B
4etitioners! action for reformation and recovery of title was brought on November ,*$ 1*/, less than eight years after e"ecution of the #uestioned deed on 3ecember ,=$ 1*9= and had therefore not prescribed. R%$#on)%n&H$ oun&%r-&%ory &a& &% u%$&'on%) on&ra& a$ 'n &ru& an) r%a*'&y a 4ona )% $a*% '$ *%ar*y a (a&&%r o )%%n$%, ' a$ y%& &o 4% %$&a4*'$%) a& &% &r'a* an) ou*) no& 4% ava'*%) o a& &% #r%-&r'a* $&a/% &o )'$('$$ &% a$% a$ ' '& %r% a*r%a)y a #rov%n a&, on&rary &o &% v%ry a**%/a&'on$ o a& o &% o(#*a'n& ' #%&'&'on%r$ (u$& 4% /'v%n an o##or&un'&y an) &%'r )ay 'n our& &o %$&a4*'$. 2. Respondent court!s other ground for dismissal , &o '&, &a& &% %'$&'n/ P1.-(or&/a/% o &% #ro#%r&y 'n avor o Jo$% )%* !a$&'**o +o( &% #ar&'%$ av% on%)%) &o 4% a (or&/a/%% 'n /oo) a'& on$&'&u&%$ an '(#%)'(%n& &o #%&'&'on%r$H a&'on a$ an 'nno%n& #ar&yH$ Bun)'$#u&%) r'/&$ ... ou*) 4% '(#a'r%) an) #r%:u)'%)B is clear error. I& '$ o4v'ou$ &a& &% (or&/a/%%H$ r'/&$ ov%r &% #ro#%r&y ar% r%o/n'C%) 4u& &a& ou*) 'n no ay )%%a& #%&'&'on%r$H a&'on or r%or(a&'on an) r%ov%ry o &'&*% &o &% #ro#%r&y. I #%&'&'on%r$ #r%va'*, &%y $'(#*y ou*) r%ov%r &% &'&*% &o &% #ro#%r&y, $u4:%& &o &% (or&/a/% &%r%on 'n avor o )%* !a$&'**o or a$ #ray%) or 4y &%(, r%$#on)%n& (ay 4% )u*y $%n&%n%) B&o )%*'v%r &'&*% &o &% #*a'n&'$ r%% ro( any %nu(4ran%$ 'n*u)'n/ &% (or&/a/% &o )%%n)an& )%* !a$&'**oB / ' (%r%*y (%an$ &a& r%$#on)%n& ou*) 'n $u a$% 4% o4*'/%) an) $%n&%n%) &o )'$ar/% )%* !a$&'**oH$ (or&/a/% r%)'& +' (or&/a/% *oan % o4&a'n%) a&%r a** or '$ on %*u$'v% 4%n%&. A!!ORDINGLY, :u)/(%n& '$ %r%4y r%n)%r%) $%&&'n/ a$')% &% )'$('$$a* or)%r o Jun% 1, 197 an) r%(an)'n/ &% a$% &o r%$#on)%n& our& or &r'a* an) a):u)'a&'on on &% (%r'&$. ;'&ou& #ronoun%(%n& a$ &o o$&$. SO ORD@R@D.
Castro (Chairman! Ma"asiar! Es#uerra and Mu$o% Palma! &&.! concur.
