Title
Aenlle vs. Rheims
Case
G.R. No. 29168
Decision Date
Dec 29, 1928
Divorced spouses dispute conjugal property ownership; mortgage executed post-divorce encumbers entire property, as divorce decree unregistered, binding bona fide lender.

Case Digest (G.R. No. 29168)
Expanded Legal Reasoning Model

Facts:

  • Background of the Litigation
    • The case involves multiple parties:
      • Adolfo Aenlle – Applicant and Appellant
      • Clementina Maria Bertrand Rheims – Claimant and Appellee
      • Philippine Guaranty Co., Inc. – Defendant and Appellant
    • The dispute centers on the ownership and encumbrance of two lots (Nos. 16 and 17, block 1421) located on Lamayan Street, district of Santa Ana, Manila.
    • The decision under appeal was rendered by the Court of First Instance of Manila in cadastral expediente No. 43 (G.L.R.O. Record No. 204).
  • Nature of the Property and Marriage Relations
    • The lots in question were acquired during the conjugal life of Aenlle and Clementina, making the property a part of their conjugal estate.
    • The couple was married on November 22, 1886, in London, England, and lived together for many years until they separated.
    • Procedural developments in the spouses’ personal lives:
      • On July 7, 1917, Clementina obtained a divorce decree from the District Court of Washoe County, Nevada, U.S.A.
      • After the separation and divorce, Clementina contracted another marriage on February 10, 1919, with George Rheims in Victoria, Hongkong, China.
  • Core Issues Related to the Property's Title and Mortgage
    • The trial court declared that the contested lots belonged to the conjugal estate, thereby assigning equal, undivided halves to both Aenlle and Clementina.
    • Regarding the mortgage:
      • On March 15, 1922, Aenlle executed a mortgage in favor of Philippine Guaranty Co., Inc. to secure a loan of P2,000 with repayment terms specified over ten years.
      • The mortgage purported to cover the entire property in the two disputed lots.
      • Clementina contended that because the mortgage was executed after the Nevada divorce decree, it should not affect her share.
  • Procedural Posture and Mixed Causes
    • The subject matter was mixed with that of a concurrent civil case (No. 26548) in the Court of First Instance of Manila concerning a second mortgage, which later ceased to exist following its full satisfaction.
    • Hence, the appeal now before the appellate court solely concerns:
      • Aenlle’s contention regarding the declaration of the lots as conjugal property denying him exclusive ownership, and
      • The modification of the charge of the mortgage, particularly the determination that the mortgage should be deemed a lien over the entire property, not merely on Aenlle’s half.

Issues:

  • Determination of Property Regime
    • Whether the two lots constitute part of the conjugal estate of Aenlle and Clementina, thus implying equal, undivided ownership despite the personal separation and divergent marital statuses.
    • Whether the character of the conjugal property was correctly determined by the trial court given the longstanding evidence of joint acquisition.
  • Effect of the Divorce Decree on Mortgage Validity
    • Whether the Nevada divorce decree obtained by Clementina affects the validity and scope of the mortgage executed on March 15, 1922, by Aenlle in favor of Philippine Guaranty Co., Inc.
    • Whether the mortgage, being later executed and covering the entire property, can be construed as a valid encumbrance even if it seems procedurally connected to a dissolved conjugal relationship.
  • Impact on Third-Party Mortgagee Rights
    • Whether Philippine Guaranty Co., Inc., as a bona fide purchaser for value without notice, is entitled to enforce its mortgage lien notwithstanding the contested marital status and property regime.
    • Whether local property and mortgage laws (including the requirement of inscription in the property registry) protect the third party's rights over potential claims arising from the divorce.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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