Spouses Vicente and Lourdes Pingol vs. Court of Appeals and Heirs of Francisco Donasco (Melinda D. Pelayo, Marietta D. Singson, Myrna D. Cuevas, atividad D. Pelayo, !olanda D. Caceres, and Mary Donasco" G.R. No. 102909, 6 September 1993 Ponente# Justice Hilario Davide, Jr. Facts
!e petitio"ers #ice"te a"d $ourdes %i"&ol o'" $ot 3223 i" J. De Jesus Street a"d (alolos )ve"ue, *r&+. *a&o"& *arrio, alooca" it+ 'it! area o- /9 s.m. a"d re&istered u"der /3. " 1 ebruar+ 1969, #ice"te sold to ra"cisco Do"asco t!rou&! a" absolute deed o- sale ac4"o'led&ed be-ore a "otar+ public o"e5!al- 78 portio" o- t!at la"d. Do"asco paid %!%2,000 to #i #ice"te ce"te i" pursua"ce to t!e co"tract, t!us t!e disputed o"e5!al- portio" desi&"ated as $ot 32235), i" J. De Jesus Street8 'as se&re&ated -rom t!e mot!er lot. !e %i"&ols retai"ed t!e portio" -ro"ti"& J. De Jesus a"d (alolos )ve"ue. (ea"'!ile, Do"asco too4 possessio" o- t!e lot immediatel+ a"d co"structed a !ouse i" it. He started pa+i"& t!e mo"t!l+ i"stallme"ts -rom 190 u"til 192 o"l+. ra"cisco Do"asco died o" 13 Jul+ 19/ '!ere !e le-t a bala"ce o- %!%10,161 o" t!e lot:s co"tract price aside -rom t!e %!%2,000 adva"ce pa+me"t a"d t!e %!%, 369 mo"t!l+ i"stallme"t pa+me"ts. $ot 32235) remai"ed i" possessio" o- ra"cisco:s !eirs a"d t!e+ -iled o" 19 ctober 19 be-ore t!e R alooca" later ra--led to R *r. 128 a" actio" -or speci-ic per-orma"ce 'it! dama&es a"d 'rit o- prelimi"ar+ i";u"ctio", as4i"& t!e trial court to order t!e %i"&ols to accept t!eir o--er -or pa+me"t o- t!e %!%10,161 bala"ce plus t!e co"tract:s stipulated le&al i"terest, e o" Do"ascos: la"d. !e %i"&ols cou"tered i" t!eir a"s'er t!at t!e sale 'as a co"ditio"al a"d "ot a" absolute co"tract o- sale si"ce t!e lot:s price is to be paid o" i"stallme"t -or a period o- si< 68 +ears '!ic! be&a" o" Ja"uar+ 190. Seco"d, t!e+ alle&ed t!at t!e sale 'as deemed ca"celed because ra"cisco breac!ed !is co"tractual8 obli&atio" 'a+ bac4 i" 196 a"d t!e Do"ascos: co"ti"ued occupatio" o- $ot 32235) is due to mere tolera"ce. $astl+, t!e Do"asco:s actio" alread+ prescribed. !e !eirs o- ra"cisco speci-icall+ de"ied t!e %i"&ols: alle&atio"s, stati"& t!at t!ere:s "o provisio" -or ca"cellatio" i" t!e sale co"tract due to de-ault o- pa+i"& mo"t!l+ pa+me"ts. !e+ i"vo4e t!e provisio"s o- )rt. 192 i" t!e Ne' ivil ode.1 !e R alooca" re"dered i" its decisio" o" 22 Ja"uar+ 1990 dismissal o- Do"ascos: complai"t a"d ordered t!em to pa+ %!%30 as reaso"able mo"t!l+ re"tal o- t!e la"d -rom time o- complai"t:s -ili"&, %!%10,000 attor"e+:s -ees a"d costs o- suit. !e trial court !eld t!at deed si&"ed b+ ra"cisco Do"asco a"d #ice"te %i"&ol is a co"tract to sell a"d "ot o- a" absolute sale as #ice"te %i"&ol !ad "o i"te"tio" to tra"s-er t!e la"d:s o'"ers!ip u"til it is -ull+ paid. !e said R also up!eld t!e claims o- t!e %i"&ols as to t!e co"tract:s ca"cellatio" a"d status o- t!e Do"asco:s occupatio" o- $ot 32235). 1 )rticle 192 o- R) 36 !e Ne' ivil ode8 states? “In sale of immovable immovab le property, even though it may have been stipulated that upon failure to pay the price at the time agreed upon the resciss rescission ion of the contract shall of right take place, the vendee may pay, even after the expiration of the period, as long as no demand for rescission rescission of the contract has been made upon him either judicially or by a notarial act. After the demand, the court may not grant him a new term.”
!e Do"ascos appealed t!e trial court:s ;ud&me"t to t!e ourt o- )ppeals )8. @t reversed t!e R:s ;ud&me"t via its 12 November 1991 decisio" '!ic! said t!at #ice"te %i"&ol cleared i"te"ded to divest o'"ers!ip o- $ot 32235), t!at t!e -ailure to pa+ t!e la"d:s a&reed price is "ot a &rou"d -or t!e sale co"tract:s ca"cellatio" a"d lastl+, t!at t!e actio" i"stituted b+ t!em is a4i" to uieti"& o- title '!ic! does "ot prescribe. $ssues raised and t%e decision of t%e Supre&e Court
" 9 Ja"uar+ 1992, t!e %i"&ols -iled petitio" -or certiorari as t!e+ 'ere dissatis-ied 'it! t!e ):s decisio". 1. A!et!er A!et!er t!e co"tract co"tract 'as t!at t!at o- a" absolute absolute a"d "ot a co"ditio"al co"ditio"al sale, sale, despite despite stipulati stipulatio"s o"s li4e pa+me"t via i"stallme"t o- t!e lot:s price -or a -i sold a"d co"ve+ed t!e said propert+ to ra"cisco Do"asco #CNDCC8 as 'ell as to =!is !eirs, assi&"s a"d successors5i"5 i"terest>. 2. A!et!e A!et!err t!e co"tract co"tract ca" be ca"celled ca"celled b+ %i"&ol spouses spouses si"ce si"ce t!e la"d:s la"d:s a&reed price price 'as "ot paid b+ ra"cisco Do"ascoB !e Supreme ourt used t!e provisio" o- )rticle 192 o- t!e Ne' ivil ode -or t!e &rou"ds -or rescissio" or ca"cellatio" o- a sale co"tract i"volvi"& a" immovable propert+. 2 Si"ce t!ere 'as "o ;udicial or "otarial actio" -or rescissio" do"e b+ %i"&ol as -ou"d b+ t!e trial court or t!e ourt o- )ppeals a"d t!at t!ere 'as "o dema"d -or suc! recissio", %i"&ol ca""ot recover title to t!e la"d sold. 3. A!et!e A!et!err t!e actio" i"stit i"stituted uted b+ t!e Do"ascos Do"ascos 'as uieti" uieti"& & o- title t!at t!at does "ot prescrib prescribeB eB !e Supreme ourt !eld eve" i- t!e case -iled b+ t!e Do"ascos is -or speci-ic per-orma"ce, it t!e actio" is reall+ -or uieti"& o- title. @t !eld t!at t!e %i"&ols: re-usal to !o"or t!e pa+me"t made b+ t!e Do"ascos a"d t!at t!e+ are "ot to tra"s-er t!e title a"d o'"ers!ip o- $ot 32235) despite t!e deed o- absolute sale a"d deliver+ o- t!e ob;ect, ma4es t!e actio" o"e -or uieti"& o- title. !us, a" actio" to uiet title to propert+ i" o"e:s possessio" li4e t!at o- !eirs o- ra"cisco Do"asco8 is imprescriptible. !e ourt o- )ppeals: )ppeals: decisio" decisio" is AFF$'MD 'it! modi-icatio"s? !e Do"ascos are to pa+ t!e bala"ce o- %!%10, 161 a"d its i"terest computed -rom 6 Ja"uar+ 196 o " t!e le&al rate o- i"terest8. !e Supreme ourt also ordered t!e %i"&ols t!at upo" -ull pa+me"t o- t!e bala"ce a"d i"terest, deliver t!eir la"d:s /3 so alooca" it+:s Re&istr+ o- Deeds ca" ca"cel it a"d issue t'o "e' titles o"e -or t!e %i"&ols a"d t!e ot!er to t!e Do"ascos. Doctrines Co&&ercial La) * Sales, Divest&ent of o)ners%ip +y delivery of t%ing su+ect of t%e contract# !e deliver+ divests ve"dor o- t!e o'"ers!ip over t!e co"tract:s ob;ect a"d !e ca""ot recover title u"less t!e co"tract is resolved or resci"ded pursua"t to )rticle 192 o- t!e Ne' ivil ode . Civil La) * Property, -e&ption of Fa&ily Ho&e fro& -ecution# ) -amil+ !ome co"stituted a-ter a debt !ad bee" i"curred is "ot e
2 See Note 1 above.
debtor '!o ma+ act i" bad -ait! b+ resorti"& to suc! declaratio" ;ust to de-eat t!e claim a&ai"st !im. @- t!e purpose is to protect t!e creditor -rom -raud, it 'ould be immaterial i- t!e debt i"curred be u"disputed or i"c!oate, -or a debtor acti"& i" &ood -ait! 'ould pre-er to 'ait u"til !is case is de-i"itel+ decided be-ore co"stituti"& t!e -amil+ !ome. Civil La) * Property, uieting of /itle 5 ) ve"dee i" a" oral co"tract to co"ve+ la"d '!o !ad made part pa+me"t t!ereo-, e"tered upo" t!e la"d a"d !ad made valuable improveme"ts t!ereo", is e"titled e" titled to bri"& suit to clear !is title a&ai"st t!e ve"dor '!o !ad re-used to tra"s-er t!e title to !im. @t is "ot "ecessar+ t!at t!e ve"dee !as a" absolute title, a" euitable title is su--icie"t to clot!e !im 'it! perso"alit+ to bri"& a" actio" to uiet title. )" actio" to uiet title to propert+ i" o"e:s possessio" is imprescriptible.
