Wednesday, December 11, 2024

Heirs of Yadao vs. Heirs of Caletina, G.R. No. 230784, February 15, 2022 [Case Digest]

 

Heirs of Yadao vs. Heirs of Caletina,

G.R. No. 230784, February 15, 2022

Lazaro- Javier J.

Case Digest

 

Subjects:

            Remedial Law – Jurisdiction and Evidence

            Civil Law - LTD

 

Facts:

            On June 22, 1993, respondents, heirs of Juan Caletina filed before the RTC, Sanchez Mira, Cagayan, a complaint for ownership and recovery of possession against petitioners' predecessors-in-interest, namely: Angel Yadao and companions.

            Respondents averred that they are the grandchildren and surviving heirs of Juan, the registered owner of a parcel of land denominated as Lot 1087 of Cadaster 317-D, located at Barangay Taggat Norte, Claveria, Cagayan with a total area of 1,797 square meters and covered by Original Certificate of Title (OCT) No. P-479 (S). Sometime in 1991, petitioners occupied the subject land and refused to leave despite their opposition and vigorous prohibition. Thus, they brought the matter to the Barangay Captain of Taggat Norte. They failed to reach an agreement.

            Petitioners countered that on September 28, 1962, their parents Josefina Yadao (Josefina) and Domingo Yadao (Domingo) bought Lot 1087 for value and in good faith from Juan's surviving heirs, i.e., his second wife Casiana Dalo, and their sons Hospicio, Jose, and William. The sale was covered by a Contrata written in Ilocano.

            The contract provides the following: We, Jose Calitina, Hospicio Calitina, William Calitina and our mother Marciana Calitina, all of legal age, married and residents of this place, confirm the truth of our agreement concerning our sale of the lot that we inherited from our father who had died, which lot is located at Barrio Taggat, Claveria, Cagayan.
The Contrata was not notarized. But Josefina and Casiana executed another Deed of Absolute Sale on October 15, 1962 on the same Lot 1087 for the same price though this time had it notarized.

            As alleged by petitioners, the owner's duplicate copy of OCT No. P- 479 (S) was delivered to them. They also averred, without any dispute, that from the time their parents bought Lot 1087, they had been in public and continuous possession thereof. The other defendants in the case below were their tenants in Lot 1087. Petitioners maintained that even assuming that no sale was made on Lot 1087, the fact remained that they had been in possession of the lot since 1962 to the present. On the other hand, as petitioners stressed, respondents brought the matter to court only on June 22, 1993 or more than thirty (30) years after they have taken possession thereof on September 28, 1962. By petitioners' conclusion, acquisitive prescription has ripened their de facto possession of Lot 1087 into legal possession and ownership.

            To prove the allegations in the complaint, Hospicio, Jr. and his mother Dolores Corpuz-Caletina (Dolores) took the witness stand. Dolores, testified that Juan was her father-in-law, being the father of her husband Hospicio, Sr. She admitted that Jose and William were also heirs of Juan as his children. She knew Jose to be Juan's child with another woman before he (Juan) got married to Nicetas. William was also Juan's son from another woman during his marriage to Nicetas. They were the half-brothers of Hospicio, Sr.  Interestingly, Dolores admitted against respondents' interest that after Juan had died, they sold, at least going by her admission, a portion of Lot 1087 to petitioners' predecessors-in-interest Domingo and Josefina.

            Notably, the owner's duplicate of OCT No. P-479 (S) was delivered to petitioners' predecessors-in-interest. Although it is not clear who gave the OCT to them, records bear that petitioners were the ones who offered this document in evidence. The delivery and voluntary cession of the OCT to their predecessors-in-interest and petitioners' eventual possession thereof were not contested by respondents. Respondents were able to offer in evidence only a certified copy of OCT No. P-479 (S) from the Register of Deeds in Cagayan.

            Petitioners' predecessors-in-interest occupied and possessed Lot 1087 after its sale on September 28, 1962 and thereafter until the present time. Dolores did not deny and has never denied this fact. She has known of their occupation and possession since September 28, 1962.

            Petitioners filed a motion to dismiss the complaint on ground of lack of jurisdiction. They averred that the RTC had no jurisdiction over the subject matter because the assessed value of Lot 1087 was only P5,390.00.

            Trial court at first granted the motion to dismiss; but upon the Motion for Reconsideration filed by the respondents; trial court granted respondents' motion for reconsideration and reinstated the complaint. It held that the motion to dismiss was filed at the tail end of the hearing when only one witness of petitioner had not testified. Thus, it would be the height of injustice to dismiss the complaint on ground of lack of jurisdiction at that late time of the day.

            RTC decided in favor of respondent. The RTC held that there was no evidence to prove the alleged sale of Lot 1087 to the Yadaos. The Contrata signed by Hospicio, Sr., Jose, William, and Casiana was not notarized, hence, it was only a private document which was unenforceable. The notarized Deed of Absolute Sale, on the other hand, was signed by Casiana who had no authority to do so as she was not a legal heir of Juan Caletina, being his non-marital partner. The RTC also opined that Lot 1087 was acquired during the marriage of Juan to Nicetas.  CA affirmed the decision of the RTC.

 

Issue 1:

            Whether RTC has jurisdiction over the present case?

 

Held:

            Petitioners are already estopped from questioning the jurisdiction of the RTC over the subject matter of the present case. The general rule is that the issue on jurisdiction over the subject matter may be raised at any time in the proceedings, even on appeal. By way of an exception, however, Tijam v. Sibonghanoy has ruled that estoppel by laches may bar a party from invoking lack of jurisdiction when the issue is raised later in the proceedings of the case and only after the party raising the argument has actively participated during trial and lost.

            The delay in raising the argument and the moving party's participation in the proceedings has led the court and the opposing party of the waiver of this issue, and as a result, the belated claim if considered and more so if granted would be inefficient and iniquitous as it is opportunistic. The trial was on going for years. In fact, petitioners, as defendants, was about to present their last witness.

 

Issue 2:

            Did petitioners acquire ownership of the subject lot through acquisitive prescription?

 

Held:

            No; Section 47 of Presidential Decree No. 1529 (PD 1529) declares that "no title to registered land in derogation of the title of the registered owner shall be acquired by prescription or adverse possession." Heir of Cardenas v. The Christian and Missionary Alliance Churches of the Philippines, Inc. ruled that the ownership and possession of registered land cannot be obtained or acquired by prescription no matter the length of time of one's physical occupation and exercise of juridical rights of possession over the land.

            Hence, since ownership cannot be gained through this means, it follows that the registered owner is not automatically dispossessed of the registered land and foreclosed from getting it back through the passage of time as the registered owner may resort to appropriate remedies to recover the property. Appropriateness, however, requires that the rule on extinctive prescription as explained below has not set in.

 

Issue 3:

            Is respondents' action already barred by prescription?

 

Held:

            Yes; extinctive prescription refers to the rule that bars even the registered owner from availing of remedies to vindicate their right over the subject lot. It is a shield rather than a sword – the mere fact that the party seeking recovery can no longer sue the party in possession does not mean automatically that the latter already has the right to possess or own. The present case demonstrates the legal principle that the law aids the vigilant, not those who slumber on their rights. Vigilantibus, sed non dormientibus jura subverniunt.

            There are two kinds of prescription provided in the Civil Code. One is acquisitive, that is, the acquisition of a right by the lapse of time as expounded in paragraph 1, Article 1106. Acquisitive prescription is also known as adverse possession and usucapcion. The other kind is extinctive prescription whereby rights and actions are lost by the lapse of time as defined in paragraph 2, Article 1106 and Article 1139. Another name for extinctive prescription is litigation of action. These two kinds of prescription should not be interchanged.

            In a plethora of cases, the Court has held that Section 47 of P.D. No. 1529 covers acquisitive prescription. A registered land therein can never be acquired by adverse possession. In the case at bench, however, it was extinctive prescription, and not acquisitive prescription, which barred the action of petitioners. As the CA correctly held, the action must fail, not because respondents adversely occupied the property, but because petitioners failed to institute their suit within the prescriptive period under Article 1144 of the Civil Code.

            To determine the applicable period of extinctive prescription, the nature and circumstances of the case should be considered. According to petitioners, the owner's duplicate certificate of title was given to Conrado for safekeeping in 1945. Allegedly, Conrado employed fraud and bad faith when he drafted the Adjudication and Absolute Sale of a Parcel of Registered Land on January 9, 1949, and transferred the title of the land to his name with the issuance of TCT No. 35282 on June 17, 1965; and because of the purported fraud committed by Conrado against petitioners, an implied constructive trust was created by operation of law, with Conrado as trustee and Aurora as cestui que trust.

            Constructive trusts are created by the construction of equity in order to satisfy the demands of justice and prevent unjust enrichment. Article 1456 of the Civil Code provides that a person acquiring property through fraud becomes, by operation of law, a trustee of an implied trust for the benefit of the real owner of the property. It is now well-settled that the prescriptive period to recover property obtained by fraud or mistake, giving rise to an implied trust under Article 1456 of the Civil Code, is 10 years pursuant to Article 1144. The prescriptive period to enforce the constructive trust shall be counted from the alleged fraudulent registration or date of issuance of the certificate of title over the property. The ten­-year prescriptive period applies only if there is an actual need to reconvey the property as when the plaintiff is not in possession of the property.

            In this case, the ten-year prescriptive period is squarely applicable because Conrado and his family, not petitioners, were in possession of the property. The subject property was registered in the name of Conrado on June 17, 1965, and this should be the starting point of the ten-year period. Petitioners, thus, had until June 17, 1975 to enforce the implied trust and assert their claim over the land. As properly held by the CA, petitioners belatedly instituted their judicial claim over the land on May 9, 1996. Indeed, with the lapse of the prescriptive period to file an action, petitioners could no longer seek relief from the courts.

            Hence, the result of the successful invocation of this rule is that while the registered owner keeps their substantive right over the lot, since acquisitive prescription is not a mode of acquiring ownership of a registered land, they are nonetheless prevented by law from invoking the legal remedies otherwise available to them. When extinctive prescription sets in, the damage done to the registered owner is not recognized as a legal injury – a legal case of damnum absque injuria – and they do not stand to enjoy any legal relief so far as their property (in both senses of title or right and the tangible lot) is concerned.

            The rule is that extinctive prescription does not lie against the heirs of the registered owner seeking recovery of the disputed lot in two instances: first, if the heirs are in actual possession of the lot; and second, if the conveyance to the party in possession of the lot is unlawful, void, or non-existent. In either of these instances, the action to recover the lot is imprescriptible.

            As registered owners of the lots in question, the respondents have a right to eject any person illegally occupying their property. This right is imprescriptible. Even if it be supposed that they were aware of the petitioner's occupation of the property, and regardless of the length of that possession, the lawful owners have a right to demand the return of their property at any time as long as the possession was unauthorized or merely tolerated, if at all. This right is never barred by laches.

            Case law teaches that those who occupy the land of another at the latter's tolerance or permission, without any contract between them, are necessarily bound by an implied promise that the occupants will vacate the property upon demand. The rule of imprescriptibility protects not only the registered owner but also the latter's heirs because they step into the shoes of the decedent by operation of law and are the continuation of the personality of their predecessor-in-interest.

            These truths, however, do not affect the validity and enforceability of the presumably unregistered and factually unnotarized sale. An unregistered and unnotarized sale is valid and enforceable against the parties to the sale. Hospicio, Sr., respondents' predecessor-in-interest, is bound by the sale.

            As a result, we cannot accept Justice Caguioa's claim that there was no valid or even enforceable sale of Lot 1087 to petitioners and their predecessors-in-interest, or that the sale was only for a portion thereof. As stated, the unnotarized Contrata signed by Hospicio, Sr. and his half­-brothers sold to petitioners' predecessors-in-interest the whole of Lot 1087 for P850, and not only for 400 square meters as subsequently intercalated in the notarized Deed of Sale that Hospicio, Sr. witnessed. But whether for the whole of Lot 1087 or 400 square meters thereof, Hospicio, Sr. more likely than not agreed to these series of sales since the certificate of title for the whole of Lot 1087 was delivered to petitioners' predecessors-in-interest as they too at once occupied the entire lot, and collected rentals from the lessees of the portions they did not occupy – without objection from Hospicio, Sr. and Dolores.

            Given these factual circumstances, petitioners' present occupation and possession of Lot 1087 is not unlawful, void, or based on non-existent claim. They have long planted themselves on Lot 1087 under the series of sales by the heirs of the registered owner – without any objection from any of them until 1993 when the relevant parties are long dead, truthful memory has faded and compromised, and crucial evidence may no longer be availed of. For this reason, respondent's action to recover the lot is definitely not imprescriptible. It will be both inefficient and unfair to the truth­-seeking and grievance-redressing functions of the courts to insist that prescription has not set in.

            To stress, respondents are now barred from assailing the sale of Lot 1087 and petitioners' possession of this lot by reason of extinctive prescription. The reckoning point for extinctive prescription to set in was when the right of respondents' predecessors-in-interest, i.e., Hospicio, Sr. as Dolores' spouse and respondents' father, who was the heir of Juan, accrued and was violated. This was when Juan died and Hospicio, Sr. acquired property (in the sense of rights) by succession to Lot 1087 and when this lot was sold to and possessed and openly occupied by petitioners' predecessors-in-interest, whichever came later.

            Here, this means that the starting date for extinctive prescription was September 28, 1962 and has since been interrupted only on June 22, 1993 when the complaint was filed with the RTC. Hospicio, Sr. could not have but known of his right to Lot 1087 and the violation of his right because –

    (i) he himself sold this lot to petitioners' predecessor-in-interests on September 28, 1962, and

    (ii) they at once openly possessed Lot 1087 by physical occupation for their own use and by leasing portions thereof to other individuals.

 

Issue 4:

            Is there a valid and binding contract selling Lot 1087 to the Yadaos?

 

Held:

           

            In sum, the fact that the Contrata was not notarized does not mean that there was no sale of Lot 1087 between the Caletina's (or Calitina) and the Yadaos. As discussed, even an oral sale of a real property is valid and binding between the parties, their heirs, and assigns.

            More important, the Court cannot turn a blind eye to the other pieces of evidence proving that: (i) respondents' privies themselves in fact sold supposedly a portion of Lot 1087 to petitioners' predecessors-in-­interest; (ii) the owner's duplicate copy of the OCT for the whole of Lot 1087 was delivered contemporaneously to petitioners' predecessors-in-­interest; and (iii) on September 28, 1962, contemporaneously with the execution of the Contrata, petitioners started their occupation and possession of the entirety of Lot 1087 with respondents' privies' knowledge and without complaints from them and their successors-in-­interest until well into June 22, 1993.

            All in all, what is clear from the evidence is that the heirs of Juan sold Lot 1087 to petitioners' predecessors-in-interest and petitioners and their successors occupied and possessed the entire lot. There were admissions to this effect from respondents themselves and respondents did not complain for thirty-one (31) years until June 22, 1993. By then, respondents have compromised the truth-seeking and grievance-redressing functions of the RTC as a result of the fact that relevant parties are long dead, truthful memory has faded and compromised, and crucial evidence may no longer be availed of. It is thus now too late for respondents to assail and for the courts to upend the validity and enforceability of the Contrata. As we have concluded above, since there is nothing in and about the Contrata that makes it invalid and unenforceable, and in view of the presence of all the elements of a valid and enforceable sale, the Contrata must be upheld in toto to affirm the validity of petitioners' ownership including of course possession of the whole of Lot 1087.

No comments:

Post a Comment