G.R. No. 158407 - Domagas vs. Jensen

The donor is Manuela Concepcion, a widow residing in San Antonio, Zambales, Philippines.
The donee is her niece, Emilia Concepcion, who accepted the donation.
The instrument in question is the deed of donation labeled “Escritura de Donacion Onerosa Mortis Causa” executed on March 7, 1944.
Despite the deed’s title and some clauses using the phrase “mortis causa,” its contents indicate a donation in consideration of past services and affection.

The deed specified that the donation would take effect “solamente por muerte de la donante,” implying that possession and enjoyment of the properties would occur only after the donor’s death.
Listed among the donated items were several properties, including parcels of land, a house, a granary, and personal effects.
Specific conditions included:

An annual allocation (a portion of the land’s produce) to fund the celebration and memorial of the donor’s anniversary, limited to a maximum of P50 per year.
A declaration that the donor, having no children, ascendants, descendents, or forced heirs, had the full right and capacity to dispose of her properties in this manner.
A statement that, although the donated properties were not yet registered under the applicable property registration laws, both parties agreed to effect registration under the provisions of Law No. 3344.

The deed notably lacked the formalities required for a testamentary disposition (e.g., attestation by three witnesses and an attestation clause) since it presented only two witnesses, thus fueling the controversy over its nature.

On November 18, 1947, approximately three years after executing the deed, donor Manuela Concepcion died.
Subsequent legal proceedings were initiated by six nephews and nieces of the donor (all surnamed Concepcion) in a special summary settlement of her estate (Special Proceedings No. 491).
Emilia Concepcion opposed the summary settlement, asserting her right to the donated properties.
The lower court, without determining the precise title or right of possession, ordered the partition of the deceased’s estate among all heirs, including Emilia and her four brothers.

Due to Emilia’s refusal to relinquish possession of the properties (including a house, granary, and personal effects), the original petitioners filed civil case No. 1230 for declaration of ownership and possession shares.
Emilia filed an answer claiming title by virtue of the donation and submitted a copy of the deed.
Expert analysis of Exhibit A (the deed) revealed:

Confusing and conflicting language wherein the term “mortis causa” was used, yet the underlying substance suggested a donation made inter vivos (during the lifetime of the donor).
The conditions and acceptance language, emphasizing remuneration for past services and affection, contradicting a typical testamentary disposition.
The deed’s execution showed the parties’ mutual understanding and deliberate acceptance, implying the immediate transfer of title as in donations inter vivos.

Whether the donation, despite being termed “mortis causa” in the deed, should be interpreted as a valid inter vivos donation.
Whether the apparent use of “mortis causa” in the deed is a mere formality or reflects the true intention of the donor.

Whether the failure to adhere to the formalities required for a testamentary disposition (i.e., three witnesses and an attestation clause) renders the donation void if interpreted as mortis causa.
Whether the acceptance of the donation by Emilia, as evidenced by her signature, confirms the donation as inter vivos.

Whether the properties donated should be treated as part of the donor’s estate upon her death or as having been transferred immediately upon the valid acceptance of the donation.
How the conflicting language affects the actual rights and obligations of the parties concerning possession and distribution of the donated properties.