Title
Cascayan vs. Spouses Gumallaoi
Case
G.R. No. 211947
Decision Date
Jul 3, 2017
Heirs claimed ownership of Lot No. 20028 via free patent, alleging encroachment by Spouses Gumallaoi. Court ruled free patent obtained fraudulently, upheld Gumallaois' ownership, and denied recovery claims.

Case Digest (G.R. No. 211947)

Facts:

  • Ownership Claims and Free Patent Application
    • The heirs of Cayetano Cascayan (petitioners) filed a complaint for Recovery of Possession, Demolition, and Damages against the Spouses Gumallaoi (respondents) before the Regional Trial Court (RTC) of Bangui, Ilocos Norte.
    • The petitioners claimed co-ownership of Lot No. 20028, covered by Original Certificate of Title (OCT) No. P-78399, obtained through a free patent application.
    • The Spouses Gumallaoi owned the adjacent Lot No. 20029, where they built a residential house. The petitioners alleged that the house encroached on Lot No. 20028 after renovations.
  • Encroachment Allegations
    • The petitioners claimed that the Spouses Gumallaoi ignored notifications about the encroachment and further expanded their house onto Lot No. 20028 after obtaining a building permit in 2001.
    • They sought the demolition of the encroaching portion of the house and damages.
  • Respondents' Counterclaim
    • The Spouses Gumallaoi countered that they were the true owners of both Lot Nos. 20029 and 20028.
    • They alleged that the petitioners secured the free patent for Lot No. 20028 through fraud, supported by affidavits from the same affiants who later retracted their statements.
  • Survey and Evidence
    • Engr. Gregorio Malacas conducted a survey and confirmed that the Spouses Gumallaoi's house was partly built on Lot No. 20028.
    • The RTC ruled in favor of the Spouses Gumallaoi, finding that the petitioners failed to prove possession of Lot No. 20028 and that the free patent was obtained fraudulently.
  • Appeal to the Court of Appeals
    • The Court of Appeals affirmed the RTC's decision, ruling that the petitioners' title to Lot No. 20028 was invalid due to fraud in the free patent application.

Issues:

  • Whether the petitioners' free patent and OCT No. P-78399 were obtained through fraud.
  • Whether the Spouses Gumallaoi are the rightful owners of Lot No. 20028.
  • Whether the counterclaim filed by the Spouses Gumallaoi constitutes a direct attack on the petitioners' title.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Conclusion:

The Supreme Court upheld the cancellation of OCT No. P-78399, declared the Spouses Gumallaoi as the rightful owners of Lot No. 20028, and denied the petitioners' claims for recovery of possession and damages. The Court emphasized that fraud in obtaining a free patent invalidates the resulting title and that a counterclaim can serve as a direct attack on a title's validity.


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