Title
Baluran vs. Navarro
Case
G.R. No. L-44428
Decision Date
Sep 30, 1977
A barter agreement between spouses over properties granted usufruct, not ownership; resolutory condition upheld, allowing recovery of residential lot by donor's heir.
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Case Digest (G.R. No. L-44428)

Facts:

Ownership and Barter Agreement

  • Spouses Domingo Paraiso and Fidela Q. Paraiso owned a residential lot of approximately 480 square meters in Sarrat, Ilocos Norte.
  • On February 2, 1964, the Paraiso spouses executed a "Barter Agreement" with spouses Avelino and Benilda Baluran. The agreement involved the exchange of the Paraiso's residential lot for the Baluran's unirrigated riceland of about 223 square meters.
  • The agreement stipulated the following conditions:
    1. Both parties would enjoy material possession of the exchanged properties. The Paraiso spouses would reap the fruits of the riceland, while the Baluran spouses could build a house on the residential lot.
    2. If any of Natividad P. Obedencio's (daughter of the Paraiso spouses) children chose to reside in the municipality and build a house on the residential lot, the Baluran spouses would be obliged to return the lot to them with damages.
    3. Neither party could encumber, alienate, or dispose of their respective properties without the other's consent.
    4. The agreement was to be registered under Act No. 3344, as the properties were unregistered.

Subsequent Events

  • On May 6, 1975, Antonio Obedencio, Natividad's son, filed a complaint to recover the residential lot, claiming ownership through a donation from his mother. He argued that he needed the property to build a house since he had returned to Sarrat.
  • Avelino Baluran defended his possession, asserting that the barter agreement transferred ownership of the residential lot to him and that Obedencio's claim had prescribed.
  • During pre-trial, the parties agreed to submit the case based on stipulated facts, including that Natividad Obedencio donated the residential lot to Antonio on October 4, 1974, and that Baluran had been in possession of the lot since 1964, paid taxes, and built a house valued at P250.

Trial Court Decision

  • On November 8, 1975, the trial court ruled in favor of Antonio Obedencio, declaring him the owner of the residential lot and ordering Baluran to vacate the property.

Issue:

  1. Whether the "Barter Agreement" transferred ownership of the residential lot to Avelino Baluran.
  2. Whether Antonio Obedencio's right to recover the property was barred by the statute of limitations.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Final Judgment

  1. Avelino Baluran and Antonio Obedencio were declared the respective owners of the unirrigated riceland and residential lot.
  2. Baluran was ordered to vacate the residential lot and remove his improvements, provided that the unirrigated riceland was restored to his possession either voluntarily or through judicial proceedings.


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