Title
Bancairen vs. Diones
Case
G.R. No. L-8013
Decision Date
Dec 20, 1955
Joaquina Bancairen’s overseer fraudulently registered part of her land in his name. Her heirs sought reconveyance, citing constructive trust and bad faith by subsequent buyers. SC ruled prescription inapplicable, remanded for further proceedings.
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Case Digest (G.R. No. L-8013)

Facts:

  1. Initial Ownership and Management: Joaquina Bancairen was the original owner of a tract of land in Sibulan, Negros Oriental. Victoriano Diones was her overseer. During the cadastral survey, Diones was entrusted by Joaquina to indicate the boundaries of the land for registration in her name.
  2. Fraudulent Division of Land: Instead of following Joaquina’s instructions, Diones caused the surveyor to divide the land into two lots: Lot No. 1983 and Lot No. 1984. Joaquina and her successors-in-interest believed the land consisted only of Lot No. 1984, as Diones misrepresented the information.
  3. Registration of Lot No. 1983: Diones applied for and succeeded in registering Lot No. 1983 in his name in 1940, obtaining Original Certificate of Title No. 16353. Despite this, Joaquina and her successors-in-interest remained in actual possession, paid taxes, and enjoyed the produce of the land.
  4. Discovery of Fraud and First Action: In March 1949, Tomasa Bancairen and Maria Bancairen discovered the fraudulent registration and filed an action for reconveyance against the successors-in-interest of Victoriano Diones. The case was dismissed on May 7, 1949, for lack of cause of action and prescription, allegedly due to improper notification of the dismissal order.
  5. Second Action: On September 1, 1950, Tomasa Bancairen, Maria Bancairen, and other co-owners instituted a second action for reconveyance against the same defendants. This action was dismissed on May 5, 1951, based on prior judgment and the statute of limitations.

Issue:

  1. Prior Judgment: Whether the dismissal of the second action based on the prior judgment of the first action was proper.
  2. Statute of Limitations: Whether the action for reconveyance was barred by the statute of limitations (10 years since registration in 1940).
  3. Constructive Trust: Whether the defense of prescription could be availed of in an action to compel a trustee to convey property held in trust.
  4. Sale to Angel Campoy: Whether Angel Campoy, who allegedly bought Lot No. 1983 with knowledge of the circumstances vitiating the title of the transferors, could be deprived of the property under Section 38 of the Land Registration Act.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)


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