Sanchez vs. Rigos 45 SCRA 368 June 1972 OPTO! CO!TRACT "ACTS# n an ins$%u&en$ en$i$'e( )O*$ion $o Pu%chase+) e,ecu$e( on A*%i' 3+ 1961+ (e-en(an$a**e''an$ Seve%ina Rigos )ag%ee(+ *%o&ise( an( co&&i$$e( ... $o se'') $o *'ain$i--a**e''ee !ico'as Sanchez -o% $he su& o- P1+51/.// 0i$hin $0o 2 ea%s -%o& sai( (a$e+ a *a%ce' o- 'an( si$ua$e( in $he a%%ios o- Aa% an( Sio$+ San Jose+ !ueva cia. $ 0as ag%ee( $ha$ sai( o*$ion sha'' e (ee&e( )$e%&ina$e( an( e'a*se(+) i- Sanchez sha'' -ai' $o e,e%cise his %igh$ $o u $he *%o*e%$) 0i$hin $he s$i*u'a$e( *e%io(. On a%ch 12+ 1963+ Sanchez (e*osi$e( $he su& o- P'+51/.// 0i$h $he C" o!ueva cia an( -i'e( an ac$ion -o% s*eci-ic *e%-o%&ance an( (a&ages a gains$ Rigos -o% $he 'a$$e%s %e-usa' $o acce*$ seve%a' $en(e%s o- *a&en$ $ha$ Sanchez &a(e $o *u%chase $he suec$ 'an(. :e-en(an$ Rigos con$en(e( $ha$ $he con$%ac$ e$0een $he& 0as on' a uni'a$e%a' *%o&ise $o se''+ an( $he sa&e eing unsu**o%$e( an va'ua'e consi(e%a$ion+ -o%ce o- $he !e0 Civi' Co(e+ is nu'' an( voi(.) P'ain$i-P'ain$i-- Sanchez+ on $he o $he% han(+ a''ege( in his co&*'ian$ $ha$+ vi%$ue o$he o*$ion un(e% consi(e%a$ion+ )(e-en(an$ ag%ee( an( co&&i$$e( $o se'') an( )$he *'ain$i-- ag%ee( an( co&&i$$e( $o u) $he 'an( (esc%ie( in $he o*$ion. The 'o0e% cou%$ %en(e%e( u(g&en$ in -avo% o- Sanchez an( o%(e%e( Rigos $o acce*$ $he su& Sanchez u(icia'' consigne(+ an( $o e,ecu$e in his -avo% $he %e;uisi$e (ee( o- conveance. The Cou%$ o- A**ea's ce%$i-ie( ce%$i-ie( $he case a$ a% $o $he Su*%e&e Cou%$ -o% i$ invo'ves a ;ues$ion *u%e' o- 'a0. SS<# =as $he%e a con$%ac$ $o u an( se'' e$0een $he *a%$ies o% on' a uni'a$e%a' *%o&ise $o se''> CO
%en$a' o- P4+///.//+ 0i$h an ag%ee&en$ $ha$ shou'( A-%ica (eci(e $o se'' $he *%o*e%$+ $he %es*on(en$ 'essee sha'' e given$ $he -i%s$ *%io%i$ $o *u%chase $he sa&e. Then on !ove&e% 1976+ A-%ica sen$ a 'e$$e% $o $he %es*on(en$s $ha$ she 0as se''ing $he *%o*e%$ -o% $he a&oun$ o- P6//+/// 'ess a &o%$gage 'oan o- P1//+///+ giving $he& 3/ (as $o e,e%cise $hei% %igh$ o- -i%s$ *%io%i$. "ai'u%e $o e,e%cise $he sai( %igh$+ %es*on(en$s shou'( vaca$e $he *%o*e%$ no$ 'a$e% $han a%ch 1977. Then on Janua% 1977+ A-%ica in-o%&e( $ha$ $he *%o*e%$ have een so'( $o $he *e$i$ione%+ ecause %es*on(en$s -ai'e( $o e,e%cise $hei% %igh$ $o (o such. Res*on(en$ s on $he o$he% han( in-o%&e( A-%ica $ha$ $he have no$ %eceive( $hei% 'e$$e% an( %e-use( $o vaca$e $he *%o*e%$. An( on A*%i' o- $he sa&e ea%+ A-%ica (e&an(e( $ha$ $he vaca$e $he *%o*e%$ -o% -ai'u%e $o *a %en$ -o% -ou% &on$hs+ 0hich $he %e-use(. ence a co&*'ain$ -o% eec$&en$ 0as -i'e( agains$ $he&. :u%ing $he *en(enc o- $he eec$&en$ case+ %es*on(en$ -i'e( an ac$ion -o% annu'&en$ o- $he sa'e e$0een A-%ica an( $he he%ein *e$i$ione% an( -o% $he cance''a$ion o- $he $%ans-e% ce%$i-ica$e o- $i$'e in $he na&e o- $he 'a$$e%. AsBing a'so $ha$ A-%ica e %e;ui%e( $o se'' $he *%o*e%$ $o $he& un(e% $he sa&e $e%&s an( con(i$ions ag%ee( u*on in $he Con$%ac$ o- Sa'e in -avo% o- $he *e$i$ione%. Then on a 198/+ $he Ci$ Cou%$ %u'e( $ha$ $he %es*on(en$ $o vaca$e $he *%e&ises+ an( (e'ive% *ossession o- $he *%o*e%$ $o $he *e$i$ione% as 0e'' as *a $he %en$ (ue $o $he&. <*on a**ea' $o $he Cou%$ o- "i%s$ ns$ance o- ani'a+ a--i%&e( $he sai( eec$ion case 0i$h &o(i-ica$ion an( g%an$e( %es*on(en$s *e$i$ion $o cance' $he :ee( o- Sa'e e,ecu$e( e$0een A-%ica an( $he *e$i$ione% an( o%(e%e( he % $o se'' $he *%o*e%$ $o %es*on(en$+ an( -o% *e$i$ione% an( A-%ica $o *a %es*on(en$ -o% (a&ages. CA a--i%&e( $he sai( (ecision u$ 0i$h &o(i-ica$ion on $he a&oun$ o- (a&ages. ence $he *e$i$ion. ssue# =O! $he %es*on(en$ cou%$ e%%e( in %u'ing $ha$ $he g%an$ o- -i%s$ *%io%i$ $o *u%chase $he suec$ *%o*e%$ies $he u(icia' a(&inis$%a$%i, nee(e( no au$ho%i$ -%o& $he *%oa$e cou%$H =O! $he Con$%ac$ o- Sa'e e,ecu$e( e$0een $he *a%$ies 0as no$ voi(a'e u$ %escissi'eH =O! *e$i$ione% is a ue% in a( -ai$h. Ru'ing# On $he -i%s$ issue+ A-%ica -ai'e( $o sho0 $ha$ $he 'e$$e% sen$ %egis$e%e( &ai' 0as %eceive( $he %es*on(en$s+ on' a *ho$oco* o- $he 'e$$e% 0i$hou$ an %eceiving signa$u%e co&ing -%o& $he 'a$$e%. "u%$he%&o%e+ even i- $he 'a$$e% %eceive( $he 'e$$e% an( (i( no$ e,e%cise $hei% %igh$ o- -i%s$ *%io%i$+ A-%ica 0ou'( s$i'' e gui'$ o- vio'a$ing Pa%ag%a*h 2/ o- $he Con$%ac$ o- ?ease 0hich s*eci-ica'' s$a$e( $ha$ $he *%iva$e %es*on(en$s cou'( e,e%cise $he %igh$ o- -i%s$ *%io%i$+ )a'' $hings an( con(i$ions eing e ;ua'.) Since A-%ica ha( o--e%e( a 'esse% a&oun$ $o $he *e$i$ione% an( &o%e a(van$ageous o--e% $han $ha$ 0as o--e%e( $o $he %es*on(en$. A'so+ %es*on(en$ cou%$ is co%%ec$ $ha$ i$ 0as no$ necessa% $o secu%e $he a**%ova' $he *%oa$e cou%$ o- $he Con$%ac$ o- ?ease ecause i$ (i( no$ invo've an a'iena$ion o- %ea' *%o*e%$ o- $he es$a$e no% (i( $he $e%& o- $he 'ease e,cee( one ea% so as $o* &aBe i$ -a'' un(e% A%$ic'e 18788 o- $he Civi' Co(e. n $he secon( issue+ *%iva$e %es*on(en$s have $he %igh$ $o %escin( $he con$%ac$ o- sa'e ecause A-%ica ha( -ai'e( $o co&*' 0i$h he% (u$ $o give $he& -i%s$ o**o%$uni$ $o *u%chase $he suec$ *%o*e%$. The *e$i$ione% a%gues $ha$ assu&ing $he Con$%ac$ o- Sa'e $o e voi(a'e+ on' $he *a%$ies $he%e$o cou'( %ing an ac$ion $o annu' i$ *u%suan$ $o A%$ic'e 1397 o- $he Civi' Co(e. $ is s$%esse( $ha$ *%iva$e %es*on(en$s a%e s$%ange%s $o $he ag%ee&en$ an( $he%e-o%e have no *e%sona'i$ $o seeB i$s annu'&en$. The %es*on(en$ cou%$ co%%ec$' he'( $ha$ $he Con$%ac$ o- Sa'e 0as no$ voi(a'e u$ %escissi'e.
*%o*e%$ $o $he *e$i$ione% 0i$hou$ %ecognizing $hei% %igh$ o- -i%s$ *%io%i$ un(e% $he Con$%ac$ o- ?ease. Rescission is a %e&e( g%an$e( 'a0 $o $he con$%ac$ing *a%$ies an( even $o $hi%( *e%sons+ $o secu%e %e*a%a$ion -o% (a&ages cause( $o $he& a con$%ac$+ even i- $his shou'( e va'i(+ &eans o- $he %es$o%a$ion o- $hings $o $hei% con(i$ion a$ $he &o&en$ *%io% $o $he ce'e%a$ion o- sai( con$%ac$. $ is a %e'iea''o0e( -o% $he *%o$ec$ion o- one o- $he con$%ac$ing *a%$ies an( even $hi%( *e%sons -%o& a'' inu% an( (a&age $he con$%ac$ &a cause+ o% $o *%o$ec$ so&e inco&*a$i'e an( *%e-e%en$ %igh$ c%ea$e( $he con$%ac$. Recission i&*'ies a con$%ac$ 0hich+ even i- ini$ia'' va'i(+ *%o(uces a 'esion o% *ecunia% (a&age $o so&eone $ha$ us$i-ies i$s inva'i(a$ion -o% %easons o- e;ui$. $ is $%ue $ha$ $he ac;uisi$ion a $hi%( *e%son o- $he *%o*e%$ suec$ o- $he con$%ac$ is an os$ac'e $o $he ac$ion -o% i$s %escission 0he%e i$ is sho0n $ha$ such $hi%( *e%son is in 'a0-u' *ossession o- $he suec$ o$he con$%ac$ an( $ha$ he (i( no$ ac$ in a( -ai$h. o0eve%+ $his %u'e is no$ a**'ica'e in $he case e-o%e us ecause $he *e$i$ione% is no$ consi(e%e( a $hi%( *a%$ in %e'a$ion $o $he Con$%ac$ o- Sa'e no% &a i$s *ossession o- $he suec$ *%o*e%$ e %ega%(e( as ac;ui%e( 'a0-u'' an( in goo( -ai$h. Pe$i$ione% 0as a0a%e - $he 'ease in -avo% o- $he Eonnevies+ 0ho 0e%e ac$ua'' occu*ing $he suec$ *%o*e%$ a$ $he $i&e i$ 0as so'( $o i$. A'$hough $he Con$%ac$ o- ? ease 0as no$ anno$a$e( on $he $%ans-e% ce%$i-ica$e o- $i$'e in $he na&e o- $he 'a$e Jose Renoso an( A-%ica Renoso+ $he *e$i$ione% canno$ (en ac$ua' Bno0'e(ge o- such 'ease 0hich 0as e;uiva'en$ $o an( in(ee( &o%e in(ing $han * %esu&e( no$ice %egis$%a$ion. A *u%chase% in goo( -ai$h an( -o% va'ue is one 0ho us $he *%o*e%$ o- ano$he% 0i$hou$ no$ice $ha$ so&e o$he% *e%son has a %igh$ $o o% in$e%es$ in such *%o*e%$ an( *as a -u'' an( -ai% *%ice -o% $he sa&e a$ $he $i&e o- such *u%chase o% e-o%e he has no$ice o- $he c'ai& o% in$e%es$ o- so&e o$he% *e%son in $he *%o*e%$. @oo( -ai$h conno$es an hones$ in$en$ion $o as$ain -%o& $aBing unconscien$ious a(van$age oano$he%. Tes$e( $hese *%inci*'es+ $he *e$i$ione% canno$ $ena' c'ai& $o e a ue% in goo( -ai$h as i$ ha( no$ice o- $he 'ease o- $he *%o*e%$ $he Eonnevies an( such Bno0'e(ge shou'( have cau$ione( i$ $o 'ooB (ee*e% in$o $he ag%ee&en$ $o (e$e%&ine i- i$ invo've( s$i*u'a$ions $ha$ 0ou'( *%eu(ice i$s o0n in$e%es$s. Pe$i$ione%s insis$ence $ha$ i$ 0as no$ a0a%e o- $he %igh$ o- -i%s$ *%io%i$ g%an$e( $he Con$%ac$ o- ?ease+ - @uz&anEoca'ing -ai'e( $o in;ui%e aou$ $he $e%&s o- $he ?ease Con$%ac$+ 0hich inc'u(es Pa%. 2/ on *%io%i$ %igh$ given $o $he Eonnevies+ i$ ha( on' i$se'- $o 'a&e. aving Bno0n $ha$ $he *%o*e%$ i$ 0as uing 0as un(e% 'ease+ i$ ehoove( i$ as a *%u(en$ *e%son $o have %e;ui%e( Renoso o% $he %oBe% $o sho0 $o i$ $he Con$%ac$ o- ?ease in 0hich Pa%. 2/ is con$aine(. RIVERA FILIPINA INC v CA Righ$ o- "i%s$ Re-usa' "ACTS# n 1982+ Rees e,ecu$e( a 1/ea% %ene0a'e Con$%ac$ o- ?ease 0i$h Riive%a "i'i*ina ove% a *a%ce' o- 'an( in :SA.
"i'i*ina -i'e( a sui$ agains$ Rees+ C*%ess an( Co%nhi'' on $he g%oun( $ha$ $he vio'a$e( i$s %igh$ o- -i%s$ %e-usa' un(e% $he 'ease con$%ac$. RTC %u'e( in -avo% o- Rees+ C*%ess+ an( Co%nhi''. On a**ea'+ CA a--i%&e( $he (ecision o- $he RTC. SS<# =I! Rivie%a "i'i*ina 'os$ i$s %igh$ o- -i%s$ %e-usa' ?:# S. As c'ea%' sho0n $he %eco%(s an( $%ansc%i*$s o- $he case+ $he ac$ions o- $he *a%$ies $o $he con$%ac$ o- 'ease+ Rees an( Rivie%a+ sha*e( $hei% un(e%s$an(ing an( in$e%*%e$a$ion o- $he 'ease *%ovision )%igh$ o- -i%s$ %e-usa') $o &ean si&*' $ha$ shou'( $he 'esso% Rees (eci(e $o se'' $he 'ease( *%o*e%$ (u%ing $he $e%& o- $he 'ease+ such sa'e shou'( -i%s$ e o--e%e( $o $he 'essee Rivie%a. An( $ha$ is 0ha$ e,ac$' ensue( e$0een Rees an( Rivie%a+ a se%ies onego$ia$ions on $he *%ice *e% s;ua%e &e$e% o- $he suec$ *%o*e%$ 0i$h nei$he% *a%$+ es*ecia'' Rivie%a+ un0i''ing $o u(ge -%o& his o--e%+ as evi(ence( $he e,change o- 'e$$e%s e$0een $he $0o con$en(e%s. $ can c'ea%' e (isce%ne( -%o& Rivie%as 'e$$e%s $ha$ Rivie%a 0as so in$%ac$a'e in i$s *osi$ion an( $ooB ovious a(van$age o- $he Bno0'e(ge o- $he $i&e e'e&en$ in i$s nego$ia$ions 0i$h Rees as $he %e(e&*$ion *e%io( o- $he suec$ -o%ec'ose( *%o*e%$ (%e0 nea%. Rivie%a s$%ong' e,hii$e( a )$aBei$ o% 'eavei$) a$$i$u(e in i$s nego$ia$ions 0i$h Rees. $ ;uo$e( i$s )-i,e( an( -ina') *%ice as "ive Thousan( Pesos P5+///.// an( no$ an *eso &o%e. $ voice( ou$ $ha$ i$ ha( o$he% *%o*e%$ies $o consi(e% so Rees shou'( (eci(e an( &aBe Bno0n i$s (ecision )0i$hin -i-$een (as.) Rivie%a even (o0ng%a(e( i$s o--e% 0hen Rees o--e%e( ane0 $he *%o*e%$ $o i$+ such $ha$ 0ha$eve% a&oun$ Rees ini$ia'' %eceives -%o& Rivie%a 0ou'( aso'u$e' e insu--icien$ $o *a o-- $he %e(e&*$ion *%ice o- $he suec$ *%o*e%$. !a$u%a''+ Rees ha( $o (isag%ee 0i$h Rivie%as high' (isa(van$ageous o--e%. !a% a ho0' o- *%o$es$ o% shou$ o- (e-iance s*e0e( -o%$h -%o& Rivie%as 'i*s+ as i$ 0e%e+ u$ a see&ing' 0hi&*e% o- acce*$ance 0hen $he counse' o- Rees s$%ong' e,*%esse( in a 'e$$e% (a$e( :ece&e% 5+ 1989 $ha$ Rivie%a ha( 'os$ i$s %igh$ o- -i%s$ %e-usa'. Rivie%a canno$ no0 e hea%( $ha$ ha( i$ een in-o%&e( o- $he o--e% o- "ive Thousan( Th%ee un(%e( Pesos P5+3//.// o- C*%ess an( Co%nhi'' i$ 0ou'( have &a$che( sai( *%ice. $s s$uo%n a**%oach in i$s nego$ia$ions 0i$h Rees sho0e( c%s$a'c'ea% $ha$ $he%e 0as neve% an nee( $o (isc'ose such in-o%&a$ion an( (oing so 0ou'( e us$ a -u$i'e e--o%$ on $he *a%$ o- Rees. Rees 0as un(e% no o'iga$ion $o (isc'ose $he sa&e. Pu%suan$ $o A%$ic'e 1339 o- $he !e0 Civi' Co(e+ si'ence o% concea'&en$+ i$se'-+ (oes no$ cons$i$u$e -%au(+ un'ess $he%e is a s*ecia' (u$ $o (isc'ose ce%$ain -ac$s+ o% un'ess acco%(ing $o goo( -ai$h an( $he usages o- co&&e%ce $he co&&unica$ion shou'( e &a(e. The gene%a' %u'e is a**'ica'e in $he case a $ a% since Rivie%a -ai'e( $o convincing' sho0 $ha$ ei$he% o- $he e ,ce*$ions a%e %e'evan$ $o $he case a$ a%. PARANAQUE KINGS ENTERPRISES INC v CA "ACTS# Ca$a'ina o0ne( 8 *a%ce's o- 'an( 'ease( $o Chua+ 0ho assigne( i$s %igh$s $he%e$o $o ?ee Ching Eing+ 0ho+ in $u%n+ assigne( sai( %igh$s $o Pa%ana;ue King n$e%*%ises+ 0hich in$%o(uce( signi-ican$ i&*%ove&en$s on $he *%e&ises.
?:# !O. n a Righ$ o- "i%s$ Re-usa'+ $he se''e% canno$ o--e% $he *%o*e%$ $o ano$he% -o% a 'o0e% *%ice o% un(e% $e%&s &o%e -avo%a'e. $ &us$ e o--e%e( un(e% $he sa&e $e%&s F con(i$ions $o Pa%ana;ue KingH o$he%0ise+ $he %igh$ o- -i%s$ %e-usa' eco&es i''uso%. On' i- Pa%ana;ue King -ai's $o &ee$ $he o--e% &a $he *%o*e%$ e o--e%e( -o% sa'e $o ano$he% ue%Man( un(e% $he sa&e $e%&s an( con(i$ions as 0e''. The Righ$ o- "i%s$ Re-usa' &a a'so e va'i(' $%ans-e%%e( o% assigne(Mas in $his case.
LAO VS GENATO Pe$i$ion -o% ce%$io%a%i 0i$h *%ae% -o% $he (ec'a%a$ion o- nu''i$ o- $he O%(e% 1 1(a$e( "e%ua% 18+ 1981 o- $he $hen Cou%$ o- "i%s$ ns$ance o- isa&is Occi(en$a'E%anch 0hich con-i%&e( an( a**%ove( $he $0o :ee(s o- Sa'e+ o$h (a$e( Augus$ 15+ 198/+ invo'ving a co&&e%cia' *%o*e%$ e'onging $o $he es$a$e o- $he (ecease( Rosen(a Au$on.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% Pe$i$ione% s*ouses 0e%e *%o&isees in a u$ua' Ag%ee&en$ o- P%o&ise $o Se'' e,ecu$e( e$0een $he& an( *%iva$e %es*on(en$ So$e%o E. :ionisio + son o- %es*on(en$ So$e%o A. :ionisio+ J%.+ hei% an( a(&inis$%a$o% o- $he in$es$a$e es$a$e o- $he (ecease(+ 0he%e $he *%o&iso% oun( hi&se'- $o se'' $he suec$ *%o*e%$ $o *e$i$ione%s+ P%iva$e %es*on(en$s+ e,ce*$ So$e%o :ionisio an( =i''ia& @o+ a%e $he chi'(%en an( on' co&*u'so% hei%s o- $he (ecease(.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% On June 25+ 198/+ %es*on(en$ a(&inis$%a$o% So$e%o :ionisio+ J%.+ 0i$h (ue no$ice $o a'' his co hei%s+ -i'e( 0i$h $he P%oa$e Cou%$ in S*ecia' P%ocee(ings !o. 842 a o$ion -o% Au$ho%i$ $o Se'' ce%$ain *%o*e%$ies o- $he (ecease( $o se$$'e $he ou$s$an(ing o'iga$ions o- $he es$a$e.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% On Ju' 8+ 198/+ a-$e% hea%ing+ $he%e eing no o**osi$ion+ $he 'o0e% cou%$ issue( an O%(e% 2 2 au$ho%izing $he a(&inis$%a$o% $o se'' $he $he%ein (esc%ie( *%o*e%$ies o- $he es$a$e an( such o$he% *%o*e%$ies un(e% his a(&inis$%a$ion a$ $he es$ *%ice o$aina'e+ an( (i%ec$ing hi& $o su&i$ $o $he cou%$ -o% a**%ova' $he $%ansac$ion &a(e hi& chan%o'es vi%$ua' 'a0 'i%a% On Augus$ 15+ 198/+ %es*on(en$a(&inis$%a$o% *u%suan$ $o sai( au$ho%iza$ion+ so'( $o his son+ So$e%o :ionisio + $he suec$ *%o*e%$ -o% P75+///.// *e% (ee( o- sa'e 33acBno0'e(ge( e-o%e !o$a% Pu'ic T%iu&-o R. Ge'ez. On $he sa&e (a$e+ So$e%o :ionisio e,ecu$e( a (ee( o- sa'e 4 o- $he sa&e *%o*e%$ in -avo% o- %es*on(en$ =i''ia& @o -o% a consi(e%a$ion o- P8/.///.//. On Augus$ 18+ 198/+ $i$'e 0as $%ans-e%%e( $o %es*on(en$ @o.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% On Augus$ 27+ 198/+ %es*on(en$hei% "'o%i(a !u;ui+ -i'e( a o$ion -o% Annu'&en$IRevoca$ion o$he :ee(s o- Aso'u$e Sa'e -o% $he %easons $ha$ $he sa'e an( suse;uen$ $%ans-e% o- $i$'e o- $he *%o*e%$ 0e%e &a(e in vio'a$ion o- $he cou%$s o%(e% o- Ju' 8+ 198/ an( $ha$ $he consi(e%a$ion o$he $0o sa'es 0e%e g%oss' ina(e;ua$e as in -ac$ &an a%e 0i''ing $o u $he *% *%o*e%$ -o% P4//+///.// since i$ is 'oca$e( a'ong $he co%ne% o- $0o &ain s$%ee$s in $he co&&e%cia' cen$e% oO%o;uie$a Ci$.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% The %es*on(en$a(&inis$%a$o% -i'e( an o**osi$ion $o sai( &o$ion o- cohei% !u;ui a''eging $ha$ $he ac$ua' consi(e%a$ion - $he sa'e &a(e hi& is P2//+///.// an( $ha$ i$ is $he ag%ee&en$ o- $he hei%s $ha$ i- an o- $he hei%s o% c'ose %e'a$ives is in$e%es$e( in uing $he *%o*e%$+ *%e-e%ence 0i'' e given $o hi& o% he% in o%(e% $o Bee* $he *%o*e%$ 0i$hin $he -a&i' o- $he (ecease(.chan%o'esvi%$ua'a0'i%a%chan%o'es vi%$ua' 'a0 'i%a%
On Se*$e&e% 9+ 198/+ %es*on(en$ !u;ui -i'e( a Re*' $o sai( O**osi$ion+ s$a$ing $ha$ $he $0o sa'es 0e%e u$ a sing'e $%ansac$ion si&u'$aneous' ha$che( an( consu&&a$e( in one occasion as sho0n $he !o$a% Pu'ics (ocu&en$ !os. 56 F 57 an( 0i$h $he sa&e 0i$nessesH $ha$ $he sa'es 0e%e in %ea'i$ a sing'e (ea' e$0een $he a(&inis$%a$o% an( =i''ia& @o+ ecause So$e%o :ionisio is 0i$hou$ &eans o% inco&e an( so has no ca*aci$ $o u $he *%o*e%$H an( $ha$ $he $%ansac$ion is an evi(ence o- $he a(&inis$%a$o%s in$en$ $o (e-%au( $he es$a$e an( his cohei%s+ -o% ha( i$ no$ een -o% $he o$ion -o% Annu'&en$+ he 0ou'( no$ have (isc'ose( $he $%ue an( ac$ua' consi(e%a$ion o- $he sa'e.chan%o'esvi%$ua'a0'i%a%chan%o'es vi%$ua' 'a0 'i%a% On Se*$e&e% 1/+ 198/+ a'' $he cohei%s o- %es*on(en$a(&inis$%a$o% -i'e( a ani-es$a$ion $o A(o*$ $he o$ion -o% Annu'&en$IRevoca$ion o- :ee(s o- Aso'u$e Sa'e. The 'iBe0ise -i'e( a ani-es$a$ion on "e%ua% 5+ 1981 a''eging $ha$ $he Cou%$ o%(e% &e%e' au$ho%ize( $he sa'e o- $he suec$ *%o*e%$ u$ (i( no$ a**%ove $he sa&e+ Thus+ $hei% *%ae% -o% $he cance''a$ion o- $he %egis$%a$ion o- sa'e $%ansac$ion e$0een %es*on(en$ a(&inis$%a$o% an( his son+ an( $ha$ e$0een $he 'a$$e% an( %es*on(en$ = i''ia& @o.chan%o'esvi%$ua'a0'i%a%chan%o'es vi%$ua' 'a0 'i%a% Res*on(en$ @o -i'e( a o$ion -o% ?eave $o n$e%vene $o *%o$ec$ his %igh$s+ &ani-es$ing $ha$ he *ai( So$e%o :ionisio $he ac$ua' consi(e%a$ion o- P225+///.// an( eing a *u%chase% in goo( -ai$h an( -o% va'ue+ his $i$'e $o $he *%o*e%$ is in(e-easi'e *u%suan$ $o 'a0.chan%o'esvi%$ua'a0'i%a%chan%o'es vi%$ua' 'a0 'i%a% On "e%ua% 6+ 1981+ *e$i$ione% s*ouses -i'e( a )ani-es$a$ion n n$e%ven$ion o- n$e%es$ $o Pu%chase P%o*e%$ Au$ho%ize( $he Cou%$ $o e So'()+ 0he%ein $he a''ege( $ha$ %es*on(en$ a(&inis$%a$o%+ 0i$hou$ %evea'ing $ha$ $he *%o*e%$ ha( a'%ea( een so'( $o =i''ia& @o+ en$e%e( in$o a u$ua' Ag%ee&en$ o- P%o&ise $o Se'' 5 5$o he%ein *e$i$ione%s+ -o% $he a&oun$ o- P27/+/// 0hich 0as %e(uce( $o P22/+///.//H $ha$ i&&e(ia$e' u*on $he e,ecu$ion o- $he ag%ee&en$+ *e$i$ione%s *ai( $he ea%nes$ &one in $he a&oun$ o- P7/+///.// EAA ChecB !o. ONT 4//63/26 (%a0n ou$ in -avo% o- So$e%o :ionisio + as %e;ues$e( %es*on(en$a(&inis$%a$o%H $ha$ i$ 0as ag%ee( u*on $ha$ $he a'ance o- P15/+///.// sha'' i&&e(ia$e' e *ai( u*on $he *%o(uc$ion o- $he T%ans-e% Ce%$i-ica$e o- Ti$'e an( $he e,ecu$ion o- $he -ina' :ee( o- Sa'eH $ha$ a'$hough $he ag%ee&en$ 0as e,ecu$e( in $he na&e o- So$e%o :ionisio $he 'a$$e%+ 0as &e%e' a no&ina' *a%$+ -o% $echnica'' acco%(ing $o $he a(&inis$%a$o%+ he e,ecu$e( a :ee( o- Aso'u$e Sa'e in -avo% o- his son+ u$ $he nego$ia$ion an( $%ansac$ions 0e%e (i%ec$' an( *e%sona'' en$e%e( in$o e$0een $he a(&inis$%a$o% an( *e$i$ione%sH $ha$ $he con$%ac$ o- sa'e has een *e%-ec$e( consi(e%ing $ha$ $he ea%nes$ &one 0as a'%ea( *ai(H $ha$ (es*i$e %e*ea$e( (e&an(s $he a(&inis$%a$o% %e-use( $o e,ecu$e a -ina' :ee( o- Sa'e in -avo% o- *e$i$ione%s+ 0ho 'a$e% -oun( ou$ $ha$ $he suec$ *%o*e%$ 0as so'( $o =i''ia& @OH $ha$ o$h con$%ac$s o- sa'e 0e%e &a(e $o (e-%au( $he es$a$e an( $he o$he% hei%sH $ha$ assu&ing $he consi(e%a$ion o- P2//+///.// su**'ie( =i''ia& @o $o So$e%o :ionisio 0ho 0as no$ gain-u'' e&*'oe(+ $hen $he con$%ac$ o- sa'e $o @o 0ou'( e 0i$hou$ consi(e%a$ion+ hence+ i$ 0ou'( eco&e -ic$i$ious an( si&u'a$e( an( $he%e is no o$he% %ecou%se 'e-$ $o $he cou%$ u$ $o (ec'a%e $he sa'e nu'' an( voi(. Pe$i$ione%s a'so &ani-es$e( $ha$ in $he even$ $ha$ $he cou%$ shou'( -ina'' (ec'a%e $he sa'e nu'' an( voi(+ $he a%es $i'' in$e%es$e( $o *u%chase $he *%o*e%$ -o% $he sa&e a&oun$ o- P2//+///.// as *%evious' ag%ee(.chan%o'esvi%$ua'a0'i%a%chan%o'es vi%$ua' 'a0 'i%a% A$ $h hea%ing o- $he sai( inci(en$ invo'ving $he ;ues$ione( sa'es *e$i$ione%s su&i$$e( a co* o$he Con$%ac$ o- &o%$gage 66 (a$e( Ju' 18+ 198/ e,ecu$e( %es*on(en$a(&inis$%a$o% in -avo% oJuan ?ao+ one o- $he *e$i$ione%s+ 0he%e $he -o%&e% &o%$gage( )a'' his un(ivi(e( in$e%es$ in $he es$a$e o- his (ecease( &o$he%+ Rosen(a Au$on G(a. (e !u;ui+ suec$ &a$$e% o- $his in$es$a$e s$a$e !o. 842+ no0 *en(ing e-o%e $he Cou%$ o- "i%s$ ns$ance o- O%o;uie$a Ci$+ E%anch .)chan%o'es vi%$ua' 'a0 'i%a% Res*on(en$ hei% "'o%i(a A. !u;ui -i'e( an O**osi$ion $o =i''ia& @os o$ion $o n$e%vene ave%%ing $he%ein $ha$ $he (ee( o- sa'e e,ecu$e( So$e%o :ionisio+ J%. in -avo% o- So$e%o :ionisio c%ea$e( no 'ega' -o%ce an( e--ec$+ since $he va'i(i$ o- $he sa'e aso'u$e' (e*en(e( on i$s a**%ova' $he
cou%$H $ha$ i$ $he%e-o%e -o''o0s $ha$ $he succee(ing sa'e $o @o an( conse;uen$ issuance o- $he $i$'e $o hi& a%e a'so nu'' an( voi( -%o& $hei% ince*$ion an( $ha$ $he a(&ission =i''ia& @o o- $he ac$ua' an( $%ue consi(e%a$ion o- $he sa'e a$ his s$age+ ha%(' es*eaBs o- )innocence) o% )goo( -ai$h).chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% A-$e% seve%a' +(as o- hea%ing+ %es*on(en$ Ju(ge a''o0e( a'' $he in$e%es$e( *a%$ies $o i( -o% $he *%o*e%$ a$ $he highes$ o$aina'e *%ice *u%suan$ $o his O%(e% o- Ju' 8+ 198/.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% On "e%ua% 16+ 1981+ in o*en cou%$+ %es*on(en$ @o o--e%e( $o u $he *%o*e%$ in $he a&oun$ oP28/+///.//. Pe$i$ione%s coun$e%o--e%e( a$ P282+///.//+ s*o$ cash. On $ha$ sa&e (a+ a'' $he hei%s+ e,ce*$ $he a(&inis$%a$o%+ -i'e( a o$ion , Pa%$e 77 s$a$ing a&ong o$he% $hings+ $ha$ $he o--e% o- =i''ia& @o a**ea%s $he highes$ o$aina'e *%ice an( $ha$ $he o--e% o- *e$i$ione%s is no$ 0e'' $aBen as $he sa&e has no$ een &a(e 0i$hin a %easona'e *e%io( o- -ive 5 (as -%o& "e%ua% 11+ 1981.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% On "e%ua% 17+ 1981+ a '' $he *a%$ies+ 0i$h $he e,ce*$ion. o- $he ?ao s*ouses an( So$e%o :ionisio + su&i$$e( -o% a**%ova' an A&ica'e Se$$'e&en$ 88 s$a$ing# ,,, ,,, ,,,chan%o'es vi%$ua' 'a0 'i%a% Tha$ a-$e% $he a(&inis$%a$o%+ So$e%o A. :ionisio+ J%.+ ha( accoun$e( -o% $he ac$ua' *%ice %eceive( hi& ou$ o- $he $%ansac$ion e$0een hi& an( So$e%o E. :ionisio in $he a&oun$ o- T0o un(%e( $housan( P2//+///.// Pesos an( $ha$ in $he in$e%es$ o- a *eace-u' se$$'e&en$ =i''ia& ?. @o has o--e%e( an( is %ea(+ a'e an( $o *a $o $he hei%s an a((i$iona' a&oun$ o- igh$ Thousan( P8/+///.// Pesos an a%%ange&en$ 0hich is &os$ a(van$ageous $o $he hei%s an( 0hich $he 0i''ing' acce*$ $o $hei% sa$is-ac$ion. $he hei%s o- Rosen(a Au$on he%e (ec'a%e $ha$ $he have no oec$ion $o $he con-i%&a$ion an( a**%ova' o- $he sa'esI$%ansac$ions e,ecu$e( So$e%o A. :ionisio+ J%.+ in -avo% o- So$e%o E. :ionisio an( $ha$ e,ecu$e( So$e%o E. :ionisio in -avo% o- $he in$e%veno%+ =i''ia& ?. @o+ an( $he 'iBe0ise have no &o%e oec$ion $o $he 'i-$ing an( cance''a$ion o- $he no$ice o- 'is *en(ens -%o& TCT !o. 88/7.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% =R"OR+ i$ is &os$ %es*ec$-u'' *%ae( $ha$ an o%(e% issue( $his on. Cou%$ con-i%&ing an( a**%oving $he $%ansac$ion e,ecu$e( So$e%o A. :ionisio+ J%.+ in -avo% o- So$e%o E. :ionisio an( $ha$ e$0een $he 'a$$e% an( =i''ia& ?. @o+ an( $o (i%ec$ $he Regis$e% o- :ee(s o- $he P%ovince o- isa&is Occi(en$a' a$ O%o;uie$a Ci$+ -o% $he cance''a$ion o- $he no$ice o- 'is *en(ens anno$a$e( on T%ans-e% Ce%$i-ica$e o- Ti$'e !o. 88/7+ an( $o -ina'' consi(e% $he &a$$e% $%ea$e( in $he o$ion o- "'o%i(a A. !u;ui (a$e( Augus$ 27+ 198/ an( a(o*$e( a'' $he o$he% hei%s -o%eve% c'ose( an( $e%&ina$e(.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% O%o;uie$a Ci$+ "e%ua% 17+ 1981.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% ,,, ,,, ,,, On "e%ua% 18+ 1981+ *e$i$ione%s -i'e( an o**osi$ion $o $he a**%ova' o- $he A&ica'e Se$$'e&en$ on $he -o''o0ing g%oun(s# chan%o'es vi%$ua' 'a0 'i%a% a The have an in$e%es$ in $he *%o*e%$ as ven(ees in a *%o&ise $o se'' an( as o%$gagee+ o- an un(ivi(e( sha%e o- one o- $he hei%s u$ $he 0e%e no$ signa$o%ies $o $he a&ica'e se$$'e&en$+ hence i$ is con$%a% $o A%$ic'e 2/28 o- $he Civi' Co(e *%ovi(ing $ha$ )A co&*%o&ise is a con$%ac$ 0he%e $he *a%$ies+ &aBing %eci*%oca' concessions+ avoi( 'i$iga$ion o% *u$ an en( $o one a'%ea( co&&ence()H chan%o'es vi%$ua' 'a0 'i%a%
The A&ica'e Se$$'e&en$ seeBs $he con-i%&a$ion an( a**%ova' o- $he ;ues$ione( $%ansac$ions u$ as o%ne ou$ $he *'ea(ings an( o%a' a%gu&en$s+ $he :ee( o- Aso'u$e Sa'e e,ecu$e( $he a(&inis$%a$o% in -avo% o- his son is 0i$hou$ consi(e%a$ion+ $he%e-o%e+ i$ is -ic$i$ious an( si&u'a$e( hence i$ canno$ e con-i%&e( o% %a$i-ie( *u%suan$ $o A%$ic'e 14/9 o- $he !e0 Civi' Co(eH chan%o'es vi%$ua' 'a0 'i%a% c The A&ica'e Se$$'e&en$ is a (evice $o (e-%au( $he @ove%n&en$ o- Ca*i$a' @ains Ta,+ cha%ges an( o$he% -ees ecause $he :ee(s o- Sa'es (o no$ %e-'ec$ $he $%ue consi(e%a$ionH an( chan%o'es vi%$ua' 'a0 'i%a% ( The :ee(s o- Sa'e sough$ $o e con-i%&e( inc'u(e( $he un(ivi(e( sha%e o- So$e%o A. :ionisio+ J%. 0hich is *%esen$' &o%$gage( $o he%ein s*ouses+ 0hich 0as e,ecu$e( *%io% $o $he sa'e+ $hus+ ia**%ove(+ $he Cou%$ 0ou'( ae$ $he co&&ission o- $he c%i&e o- es$a-a as $he &o%$gage has no$ e$ een *ai( an( %e'ease(.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% Pe$i$ione%s 'iBe0ise *oin$e( ou$ in $hei% o**osi$ion $ha$ %es*on(en$ Ju(ge ha( in$i&a$e( in o*en cou%$ $ha$ so&eo( o--e%e( $o u $he *%o*e%$ -o% $he *%ice o- P3//+///.// u$ since $he%e 0as no -o%&a' o--e% in 0%i$ing+ $he *e$i$ione%s a%e %ea( an( 0i''ing $o u $he *%o*e%$ a$ $ha$ a&oun$+ 0hich (e-ini$e' is $he es$ *%ice o$aina'e in $he &a%Be$ an( &os$ ene-icia' $o a'' $he hei%s.chan%o'esvi%$ua'a0'i%a%chan%o'es vi%$ua' 'a0 'i%a% :es*i$e sai( o**osi$ion+ %es*on(en$ Ju(ge issue( an O%(e% 99 on "e%ua% 18+ 1981 a**%oving $he A&ica'e Se$$'e&en$+ con-i%&ing an( %a$i-ing $he $0o ;ues$ione( :ee(s o- Sa'e. Pe$i$ione%s &o$ion -o% %econsi(e%a$ion having een (enie(+ $he no0 co&e e-o%e
an( us$ so i$s va'i(i$ an( -ai%ness &a e *asse( u*on an( %eso've(. $ 0as on' u*on $he -i'ing one o- $he hei%s+ "'o%i(a A. !u;ui+ o- $he )o$ion -o% Annu'&en$IRevoca$ion o- :ee(s o Aso'u$e Sa'e) 1212;ues$ioning $he genuineness ai( va'i(i$ o- $he $%ansac$ions+ $ha$ :ionisio+ J%. 0as co&*e''e( $o a(&i$ $ha$ $he ac$ua' consi(e%a$ion -o% $he sa'e &a(e hi& 0as P2//+///.//. 13 13This sa'e is one o- $he i''ega' an( i%%egu'a% $%ansac$ions $ha$ 0as con-i%&e( an( 'ega'ize( is O!ORs a**%ova' o- $he assai'e( A&ica'e Se$$'e&en$. !o (ou$+ %es*on(en$ Ju(ges ;ues$ione( a**%ova' vio'a$es A%$ic'e 14/9 o- $he !e0 Civi' Co(e a n( canno$ 0o%B $o con-i%& no% se%ve $o %a$i- a -ic$i$ious con$%ac$ 0hich is none,is$en$ an( voi( -%o& $he ve% eginning. The -ac$ $ha$ *%ac$ica'' a'' $he hei%s a%e *a%$iessigna$o%ies $o $he sai( Co&*%o&ise Ag%ee&en$ is o- no &o&en$. Thei% assen$ $o such an i''ega' sche&e (oes no$ 'ega'ize $he sa&e no% (oes i$ i&*ose an o'iga$ion u*on %es*on(en$ Ju(ge $o a**%ove $he sa&e $o $he *%eu(ice no$ on' o- $he c%e(i$o%s o- $he es$a$e+ an( $he gove%n&en$ $he non*a&en$ o- $he co%%ec$ a&oun$ o- $a,es 'ega'' (ue -%o& $he es$a$e.chan%o'esvi%$ua'a0'i%a%chan%o'es vi%$ua' 'a0 'i%a% The o--e% $he *e$i$ione% o- P3//+///.// -o% $he *u%chase o- $he *%o*e%$ in ;ues$ion (oes no$ a**ea% se%ious' (is*u$e( on %eco%(. As agains$ $he *%ice s$a$e( in $he assai'e( Co&*%o&ise Ag%ee&en$ $he -o%&e% a&oun$ is (eci(e(' &o%e ene-icia' an( a(van$ageous no$ on' $o $he es$a$e+ $he hei%s o- $he (escen(an$s+ u$ &o%e i&*o%$an$' $o i$s c%e(i$o%s+ -o% 0hose accoun$ an( ene-i$ $he sa'e 0as &a(e. !o sa$is-ac$o% an( convincing %eason a**ea%e( given -o% $he %eec$ion an(Io% nonacce*$ance o- sai( o--e% $hus giving %ise $o a 0e''g%oun(e( sus*icion $ha$ a co''usion o- so&e so%$ e,is$s e$0een $he a(&inis$%a$o% an( $he hei%s $o (e-%au( $he c%e(i$o%s an( $he gove%n&en$.chan%o'esvi%$ua'a0'i%a% chan%o'es vi%$ua' 'a0 'i%a% ! G= O" T "OR@O!@ CO!S:RATO!S+ $he assai'e( O%(e% (a$e( "e%ua% 18+ 1981 o- $he %es*on(en$ Ju(ge a**%oving $he ;ues$ione( A&ica'e Se$$'e&en$ is (ec'a%e( !
DAVID P. FORNILDA !UAN P. FORNILDA E"ILIA P. FORNILDAOLILI LEOCADIA P. FORNILDA LA#A$EN %&' ANGELA P. FORNILDAGUTIERRE( )*+,+,-&*/v/. TE #RANC 164 REGIONAL TRIAL COURT IVT !UDICIALREGION PASIG !OAQUIN C. ANTONIO D*)+ S*, RTC 4!R T%&% R,% %&' ATT$. SERGIO I. A"ONO$ */)-&'*&+/. G.R. N-. 72306 O+-* 6 1988FACTS The Con$%ove%$e( Pa%ce's 0e%e *a%$ o- $he es$a$e o- $he 'a$e Ju'io. Ca$o'os suec$ o- in$es$a$e es$a$e *%ocee(ings+ 0he%einRes*on(en$ A&ono ac$e( as counse' -o% so&e o- $he hei%s -%o&1959 un$i' 1968 his o0n a(&ission. These *%o*e%$ies 0e%e a(u(ica$e( $o A'-onso "o%ni'(a an(Asuncion . Pasa&a in $he P%oec$ o- Pa%$i$ion a**%ove( $heCou%$ on 12 Janua% 1965 On 2/ Janua% 1965+ o% on' eigh$ 8 (as $he%ea-$e%+ an( 0hi'ehe 0as s$i'' in$e%vening in $he case as counse'+ $hese *%o*e%$ies0e%e &o%$gage( *e$i$ione%s *%e(ecesso%inin$e%es$
$oRes*on(en$ A&ono $o secu%e *a&en$ o- $he 'a$$e%s a$$o%nes-ees in $he a&oun$ oP27+6//.// Since $he &o%$gage in(e$e(ness 0as no$ *ai(+ Res*on(en$A&ono ins$i$u$e( an ac$ion -o% u(icia' -o%ec'osu%e o- &o%$gageon 21 Janua% 197/ The &o%$gage 0as suse;uen$' o%(e%e( -o%ec'ose( an( auc$ionsa'e -o''o0e( 0he%e Res*on(en$ A&ono 0as $he so'e i((e% -o%P23+6//.// Eeing sho%$ o- $he &o%$gage in(e$e(ness+ he a**'ie( -o% an(-u%$he% o$aine( a (e-icienc u(g&en$. SS<# =he$he% o% no$ $he &o%$gage cons$i$u$e( on $he Con$%ove%$e(Pa%ce's in -avo% o- Res*on(en$ A&ono co&es 0i$hin $he sco*e o- $he*%ohii$ion in A%$ic'e 1491 o- $he Civi' Co(e. ?:# S The *e%$inen$ *o%$ions o- $he sai( A%$ic'es %ea(#A%$. 1491. The -o''o0ing *e%sons canno$ ac;ui%e *u%chase even a$ a *u'ic o% u(icia' o% auc$ion+ ei$he% in*e%son o% $h%ough $he &e(ia$ion o- ano$he%#,,, ,,, ,,,5 Jus$ices+ u(ges+ *%osecu$ing a$$o%nes+ ... $he *%o*e%$ an( %igh$s in 'i$iga$ion o% 'evie( u*on one,ecu$ion e-o%e $he cou%$ 0i$hin 0hose unc$ion o%$e%%i$o% $he e,e%cise $hei% %es*ec$ive -unc$ionsH $his*%ohii$ion inc'u(es $he ac$ o- ac;ui$$ing assign&en$an( sha'' a**' $o 'a0e%s 0i$h %es*ec$ $o $he *%o*e%$ an( %igh$s 0hich &a e $he oec$ o- an 'i$iga$ion in0hich $he &a $aBe *a%$ vi%$ue o- $hei% *%o-ession .&*hasis su**'ie(
DIRECTOR OF LANDS v/. A#A#A 88 SCRA 513H "e%ua% 27+ 1979 FACTS# The a(ve%se c'ai&an$ A$$. "e%nan(ez 0as %e$aine( as counse' *e$i$ione% Aa%;uez in a civi' a case -o% $he annu'&en$ o- a con$%ac$ o- sa'e 0i$h %igh$ o- %e*u%chase an( -o% $he
%ecove% o- $he 'an( 0hich 0as $he suec$ &a$$e% $he%eo-.
G.R. N-. L>33048 A), 16 1982 EPIFANIA SARSOSA VDA. DE #ARSO#IA %&' PACITA ?. VALLAR + *e$i$ione%s+ vs. VICTORIANO T. CUENCO %es*on(en$. "ACTS# Sough$ $o e %evie0e( he%ein is $he u(g&en$ (a$e( Augus$ 18+ 197/+ o- $he Cou%$ o- A**ea's+ %en(e%e( in CA@.R. !o. 41318R+ en$i$'e( ) Victoriano T. Cuenco, Plaintiff-appellant, vs. Epifania Sarsosa Vda. de Barsobia and Pacita W. Vallar, efendants- appellees+ ) (ec'a%ing Gic$o%iano T. Cuenco no0 $he %es*on(en$ as $he aso'u$e o0ne% o- $he coconu$ 'an( in ;ues$ion. The 'o$ in con$%ove%s is a oneha'- *o%$ion on $he no%$he%n si(e o- $0o a(oining *a%ce's o- coconu$ 'an( 'oca$e( a$ Ea%%io anca*agao+ Saga+ Ca&iguin+ isa&is O%ien$a' no0 Ca&iguin *%ovince+ 0i$h an a%ea o- 29+15/ s;ua%e &e$e%s+ &o%e o% 'ess. The en$i%e 'an( 0as o0ne( *%evious' a ce%$ain ?eoca(ia Ea'isa(o+ 0ho ha( so'( i$ $o $he s*ouses Pa$%icio Ea%soia no0 (ecease( an( *i-ania Sa%sosa+ one o- $he *e$i$ione%s he%ein. The a%e "i'i*ino ci$izens. On
Se*$e&e% 5+ 1936+ *i-ania Sa%sosa $hen a 0i(o0+ so'( $he 'an( in con$%ove%s $o a Chinese+ Ong King Po+ -o% $he su& o- P1+/5/.// .Ong King Po $ooB ac$ua' *ossession an( enoe( $he -%ui$s $he%eo-. On Augus$ 5+ 1961+ Ong King Po so'( $he 'i$iga$e( *%o*e%$ $o Gic$o%iano T. Cuenco %es*on(en$ he%ein+ a na$u%a'ize( "i'i*ino+ -o% $he su& o- P5+///.//. Res*on(en$ i&&e(ia$e' $ooB ac$ua' *ossession an( ha%ves$e( $he -%ui$s $he%e-%o&. On a%ch 6+ 1962+ *i-ania )usu%*e() $he con$%ove%$e( *%o*e%$+ an( on Ju' 26+ 1962+ *i-ania $h%ough he% on' (augh$e% an( chi'(+ &e$e%ia Ea%soia+ so'( a oneha'- 1I2 *o%$ion o- $he 'an( in ;ues$ion $o Paci$a =. Ga''a%+ $he o$he% *e$i$ione% he%ein .On Se*$e&e% 19+ 1962+ %es*on(en$ -i'e( a "o%ci'e n$% case agains$ *i-ania e-o%e $he unici*a' Cou%$ o- Saga+ Ca&iguin. The case 0as (is&isse( -o% 'acB o- u%is(ic$ion since+ as $he 'a0s $hen s$oo(+ $he ;ues$ion o- *ossession cou'( no$ e *%o*e%' (e$e%&ine( 0i$hou$ -i%s$ se$$'ing $ha$ o- o0ne%shi*. On :ece&e% 27+ 1966+ %es*on(en$ ins$i$u$e( e-o%e $he Cou%$ o- "i%s$ ns$ance o- isa&is O%ien$a' a Co&*'ain$ -o% %ecove% o- *ossession an( o0ne%shi* o- $he 'i$iga$e( 'an(+ agains$ *i-ania an( Paci$a Ga''a% he%eina-$e% %e-e%%e( $o si&*' as *e$i$ione%s. ssue# =he$he% o% no$ Gic$o%iano T. Cuenco + a na$u%a'ize( "i'i*ino is $he %igh$-u' o0ne% o- $he 'an( a-$e% uing i$ -%o& Ong King Po+ a Chinese. ?:# The $%ia' Cou%$ %en(e%e( u(g&en$# 1. :is&issing $he co&*'ain$ 0i$h cos$s agains$ *'ain$i-- %es*on(en$ he%ein. 2. :ec'a%ing $he $0o :ee(s o- Sa'e+ ,hii$s A an( E+ %es*ec$ive'+ ine,is$en$ an( voi( -%o& $he eginningH an( 3. :ec'a%ing (e-en(an$ Paci$a =. Ga''a% as $he 'a0-u' o0ne% an( *ossesso% o- $he *o%$ion o- 'an( she ough$ -%o& &e$e%ia Ea%soia **. 57+ 67+ Reco%(. The %es*on(en$ a**ea'e( an( $he Cou%$ o- A**ea's %eve%se( $he $he a-o%e&en$ione( :ecision an( (ec%ee( ins$ea( $ha$ %es*on(en$ 0as $he o0ne% o- $he 'i$iga$e( *%o*e%$. The u(g&en$ a**ea'e( -%o& is he%e %eve%se(. n 'ieu $he%eo-+ The Cou%$ %en(e%s u(g&en$# a :ec'a%ing $he *'ain$i--a**e''an$ Gic$o%iano T. Cuenco $he aso'u$e o0ne% o- $he 'an( in ;ues$ion+ 0i$h $he %igh$ o- *ossession $he%eo-H O%(e%ing $he (e-en(an$sa**e''ees $o %es$o%e $he * ossession o- sai( 'an( $o $he *'ain$i--H c :is&issing $he (e-en(an$s coun$e%c'ai&H ( Con(e&ning $he (e-en(an$s $o *a $o $he *'ain$i-- $he su& o- P1/+///.// %e*%esen$ing $he 'a$$e%s sha%e -%o& $he sa'e o- co*%a 0hich he -ai'e( $o %eceive since a%ch+ 1962 0hen he 0as (e*%ive( o- his *ossession ove% $he 'an(+ an( 0hich (e-en(an$s i''ega'' a**%o*%ia$e( i$ $o $hei% o0n use an( ene-i$+ *'us 'ega' in$e%es$ -%o& $he -i'ing o- $he co&*'ain$ un$i' -u'' *ai(H *'us P2+///.// %e*%esen$ing e,*enses an( a$$o%nes -eesH e Sen$encing $he (e-en(an$s $o *a $he cos$s.
