aqualab phil. v. heirs of pagobo full text

7/24/2019 Aqualab Phil. v. Heirs of Pagobo Full Text

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Republic of the Philippines

SUPREME COURTManila

THIRD DIVISION

G.R. No. 182673 October 5, 2009

AQUAA! P"##PP#NES, #NC.,Petitioner,vs."E#RS O$ MARCE#NO PAGO!O, %&'e()* PEAG#O PAGO!O, GON+AOPAGO!O, AN#ANA PAGO!O, A$REO SA-AOR, SAMUE PAGO!O,REME#OS PAGO!O, -AENT#NA PAGO!O, ONAT"AN PAGO!O, -#RG##OPAGO!O, $E#SA /A/ON, S#MP#C#O /A/ON, !ARTOOME /A/ON,!ERNAR#NA /A/ON, &% #S#RA /A/ON "E#RS O$ "#AR#ON PAGO!O,

%&'e()* PA!O PAGO!O, A$REO PAGO!O, $E# PAGO!O, RU$#NA P. A"#,!R#G#A P. GO#NE+, "ONORATA P. GO#NE+, MA#MO PAGO!O, AR#ANAPAGO!O, CEC##A PAGO!O, ##A PAGO!O, CRESCENC#O PAGO!O, RO!ERTOPAGO!O, A$ONSO PAGO!O, CAN#O PAGO!O, !ARTOOME PAGO!O,EP##O PAGO!O, PERO PAGO!O, ROGE#O PAGO!O, S"#RE/ P. CAETE,M#AGROS PAGO!O, UAN#TO PAGO!O, R., ANTON#O PAGO!O, #RENEAPAGO!O, &% AN#ANO P. 4AG4AG "E#RS O$ ANTON#O PAGO!O, %&'e()*GAUENC#O PAGO!O, OT#TA PAGO!O, ERNESTO PAGO!O, ROMANA P.AN#, $E#SA PAGO!O, CARMEN PAGO!O, &% SAU PAGO!O "E#RS O$MA#MO PAGO!O, %&'e()* RAMON PAGO!O, ROU$O PAGO!O, CR#PS#NPAGO!O, &% UR!ANO PAGO!O "E#RS O$ ONATA PAGO!O 4AG4AG, %&'e()*

$E#SA 4AG4AG, ANASTAC#O 4AG4AG, $#E 4AG4AG, &% NEMES#A4AG4AG "E#R O$ AQU##NA PAGO!O* -#CTOR PAGO!O "E#RS O$ UAN#TOPAGO!O E/AS, %&'e()* MARCEO P. E/AS, ROC"# P. $ORES, &% OR#E P.$ORES "E#RS O$ CATA#NA PAGO!O, %&'e()* REST#TUTO PAGO!O, CAR#NAP. TA#NGT#NG, TEO$#O P. TA#NGT#NG, &% UAN#TO P. TA#NGT#NG,Respondents.

E C # S # O N

-EASCO, R., J.:

Te C&eIn this Petition for Revie on !ertiorari under Rule "#, $%ualab Philippines, Inc. &$%ualab'

assails the March (#, )**+ Decision(and $pril )), )** Resolution)of the !ourt of $ppeals&!$' in !$-.R. !V No. ##"*, hich reversed the Septe/ber 0*, (11+ Order0of the Re2ional

Trial !ourt &RT!', 3ranch #0 in 4apu-lapu !it5, !ebu. The RT! dis/issed !ivil !ase No. "*6-

4 forPartition, Declaration of Nullity of Documents, Cancellation of Transfer Certificate of
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Titles, Reconveyance with Right of Legal Redemption, Damages and Attorneys ees filed b5

respondents.

Te $&ct

Sub7ect of the co/plaint initiated b5 respondents are 4ots 6+)+-8 and 6+)+-9 of the Opon!adastre, situated in Punta :n2a;o, 4apu-lapu !it5, Mactan Island, !ebu, particularl5 described

as follos$R: M:T:RS, /ore

or less. $ll points referred to are indicated on the plan and /ar?ed on the 2round as follos< = == date of the ori2inal surve5, $u2. (1)+ @ Dec. (1), and that of the subdivision surve5, $u2. +,

and (*, (160, and Sept. )+ and 0*, (16+.

4ot 6+)+-8 and 4ot 6+)+-9 used to for/ part of 4ot 6+)+ oned b5 respondentsB 2reat

2randfather, Cuan Pa2obo, covered b5 Ori2inal !ertificate of Title No. &O!T' RO-))"6"containin2 an area of ()+,"06 s%uare /eters.

4ot 6+)+ as once covered b5 Cuan Pa2oboBs ho/estead application. >pon his death on Canuar5

(, (1"+,#his ho/estead application continued to be processed cul/inatin2 in the issuance on

Dece/ber (, (161 of Ho/estead Patent No. ()"+* for 4ot 6+)+. On the basis of thisho/estead patent, O!T RO-))"6 as issued in the na/e of Cuan Pa2obo. $pparentl5, fro/ the

description of the subdivision lots of 4ot 6+)+, particularl5 those of sub7ect 4ots 6+)+-8 and

6+)+-9 above, and even before the issuance of O!T RO-))"6, the /other 4ot 6+)+ as

surve5ed in (160 and (16+ and eventuall5 subdivided into 0" subdivision lots deno/inated as4ots 6+)+-$ to 6+)+-HH.

Incidentall5, on the sa/e date that O!T RO-))"6 as issued coverin2 4ot 6+)+, O!T RO-()++6

as li?eise issued also coverin2 4ot 6+)+ in the na/e of the late Cuan Pa2obo also pursuant toHo/estead Patent No. ()"+*. Subse%uentl5, hoever, on $u2ust (*, (1++, O!T RO-()++ as

canceled for bein2 null and void pursuant to an Order issued on $u2ust ", (1++ b5 the !ourt of

irst Instance in 4apu-lapu !it5 in vie of the issuance of O!T RO-))"6.+
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Shortl5 after O!T RO-()++ and O!T RO-))"6 ere issued, sub7ect 4ots 6+)+-8 and 6+)+-9

ere subse%uentl5 sold to Tarcela de :spina ho then secured Transfer !ertificate of Title No.

&T!T' 0)1"therefor on $pril )(, (1+*. The purchase b5 Tarcela de :spina of sub7ect 4ot 6+)+-9 fro/ the heirs of Cuan Pa2obo and sub7ect 4ot 6+)+-8 fro/ one $ntonio $lcantara as dul5

annotated on the Me/orandu/ of Incu/brances of both O!T RO-()++1and O!T RO-))"6.(*

Subse%uentl5, Tarcela de :spina sold sub7ect lots to Rene :spina ho as issued, on Septe/ber

), (1+, T!T (+0*((for 4ot 6+)+-8 and T!T (+0(()for 4ot 6+)+-9. Thereafter, Rene:spina sold sub7ect lots to $nthon5 a Eache, ho in turn as issued T!T (+1((0and T!T

((++,("respectivel5, on Nove/ber 1, (1+. inall5, $%ualab ac%uired sub7ect lots fro/

$nthon5 a Eache and as issued T!T ("")(#and T!T (""0,(6respectivel5, on Ma5 ",(1.

On $u2ust (*, (11", respondents, alle2in2 that $%ualab has disturbed their peaceful occupation

of sub7ect lots in (11(, filed a !o/plaint(+forPartition, Declaration of Nullity of Documents,

Cancellation of Transfer Certificate of Titles, Reconveyance with Right of Legal Redemption,

Damages and Attorneys eesa2ainst $%ualab, the Re2ister of Deeds of 4apu-4apu !it5, !ebu,and, for bein2 unillin2 co-plaintiffs and alle2ed refusal to have sub7ect lots partitioned, the

Heirs of 3ernabe Pa2obo, na/el5< $nastacio Pa2obo, De/etrio Pa2obo, eli= Pa2obo, Ol5/piaP. Ta/pus, Da/asa Pa2obo, Salud P. Malolo5-on, !andida Pa2obo, and $driana P. Mahusa5.

The !o/plaint pertinentl5 alle2ed thatS$ND &(,***' S8>$R: M:T:RS and SIAT::N THO>S$ND ON: H>NDR:D

SIAT9 S:V:N &(6,(6+' S8>$R: M:T:RS, respectivel5. 4ots No. 6+)+-8 and 4ot no. 6+)+-

9 are presentl5 covered b5 Transfer !ertificate of Titles No. ("") and !T! No. (""0,

respectivel5, copies of hich are hereto attached as $nne=es 3 and !, respectivel5.

(. The defendants entered into transactions of the lands sub7ect /atter of this case, ithout the

?noled2e of plaintiffs and their predecessors-in-interest, and defendants did so despite full

?noled2e that onership of said lands belon2ed to plaintiffs and their predecessors-in-interestand that defendants entered into said transactions despite full ?noled2e b5 the/ and their

predecessors-in-interest that the lots as FsicG covered b5 a ho/estead patent and as such cannot

be alienated ithin tent5-five &)#' 5ears fro/ its issuance on ebruar5 (*, (1+*.

SECON CAUSE O$ ACT#ON

= = = =

)*. rantin2, ithout necessaril5 ad/ittin2, that the transaction entered into b5 the defendants

are le2al and bindin2 Plaintiffs then have not been dul5 notified of the said sale and therefore,

have the ri2ht to redee/ the sa/e under $rticle (6)* in relation to $rticle (6)0 of the Ne !ivil

!ode, and also under !o//onealth $cts FsicG No. ("(, as a/ended.(

On $u2ust )6, (11", the heirs of 3ernabe Pa2obo filed their $nser,

(1

assertin2 that sub7ect 4ot6+)+-9 as oned b5 their predecessor 3ernabe Pa2obo as evidenced b5 Ta= Declaration No.

&TD' **#)*.)*The5 /aintained that even before the Second Jorld Jar and before the death of

Cuan Pa2obo on Canuar5 (, (1"+, 3ernabe Pa2obo alread5 had possession of sub7ect 4ot 6+)+-9 hich as the portion assi2ned to hi/. Moreover, the5 contended that respondents never /ade

an5 de/ands for partition of sub7ect 4ot 6+)+-9.
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On Septe/ber (), (11", $%ualab filed its Motion to Dis/iss)(on the 2rounds of< &(' prescription

of the action for declaration of nullit5 of docu/ents, cancellation of transfer certificates of title,

and reconve5ance and &)' no cause of action for partition and le2al rede/ption of the /othertitle of sub7ect lots, i.e., O!T RO-))"6 had alread5 been subdivided and several conve5ances

/ade of the subdivided lots.

R(% o: te Tr&( Cort

35 Order dated Septe/ber 0*, (11+, the RT! 2ranted $%ualabBs /otion and dis/issedrespondentsB co/plaint, disposin2 as follosndaunted, respondents appealed the above dis/issal to the !$. The parties thereafter filed their

respective briefs.

R(% o: te A;;e((&te Cort

The !$ sa thin2s differentl5. On March (#, )**+, it rendered the assailed decision, reversin2the Septe/ber 0*, (11+ Order of diance of the certificate of title, if the plaintiff is not in

possession.0)Thus, one ho is in actual possession of a piece of land on a clai/ of onership

thereof /a5 ait until his possession is disturbed or his title is attac?ed before ta?in2 steps to

vindicate his ri2ht.00

In the instant case, as h5potheticall5 ad/itted, respondents ere in possession until (11(, and

until such possession is disturbed, the prescriptive period does not run. Since respondents filed

their co/plaint in (11", or three 5ears after their possession as alle2edl5 disturbed, it is clear

that prescription has not set in, either due to fraud or constructive trust.

3esides, if the plaintiff, as the real oner of the propert5, re/ains in possession of the propert5,the prescriptive period to recover title and possession of the propert5 does not run a2ainst hi/. In

such a case, an action for reconve5ance, if nonetheless filed, ould be in the nature of a suit for%uietin2 of title, an action that is i/prescriptible.0"

Thus, the trial courtBs reliance on!uenaventura0#and Tenio"#$se%uio06for prescription on the

ri2ht of reconve5ance due to fraud and constructive trust, respectivel5, is /isplaced, for in both

cases, the plaintiffs before the trial court ere not in possession of the lots sub7ect of their action.
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A


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$nd if $%ualab is found to be trul5 an innocent purchaser for value, its ri2hts as such is protected

b5 la /ore so in situations here there have been a series of transfers of the sub7ect lots, in

hich case, respondentsB ri2hts, if an5, ill be for da/a2es fro/ those ho perpetrated thefraudulent conve5ances.

No $&ct&( &% e&( !&e :or teC&%ce((&to% o: Cert:c&te o: Tt(e

&econd, and corollar5 to the first, 2iven that there is no 7udicial factual findin2 that $%ualab isnot an innocent purchaser for value, it is le2all5 and factuall5 ithout bases for the appellate

court to order the cancellation of the certificates of title coverin2 sub7ect lots in the na/e of

$%ualab.

Third, the issues of reconve5ance or rede/ptive ri2hts of respondents and their action forpartition have to be resolved b5 the trial court in li2ht of its eventual findin2s fro/ a trial on the

/erits of the instant case.

Je, thus, hold that the instant case should proceed to trial for the parties to adduce their

respective evidence to support their contrar5 positions in the defense of their asserted ri2hts.

4"ERE$ORE, this petition is hereb5 P$RTI$449 R$NT:D. The !$Bs Decision datedMarch (#, )**+ and Resolution dated $pril )), )** in !$-.R. !V No. ##"* are hereb5

R:V:RS:D and S:T $SID:. The RT!Bs Order dated Septe/ber 0*, (11+ dis/issin2 !ivil

!ase No. "*6-4 is li?eise R:V:RS:D and S:T $SID:. The instant case is hereb5R:INST$T:D, and petitioner $%ualab is R:8>IR:D ithin the period available pursuant to

Section " of Rule (6, (11+ Revised Rules of !ivil Procedure TO I4: its anser before the trial

court. The trial court is ordered to proceed ith dispatch to the trial on the /erits.

No costs.

SO ORD:R:D.

PRES!#TERO . -EASCO, R.$ssociate Custice

J: !ON!>R