G.R. No. L-22404 - Constantino vs. Espiritu

On October 30, 1953, Pastor B. Constantino executed what was styled as an absolute sale of a two‐storey house and four subdivision lots (TCT No. 20174) in his name to Herminia Espiritu for ₱8,000.00, with the parol agreement that Espiritu would hold the properties in trust for their then-unborn illegitimate son, Pastor Constantino, Jr.
Thereafter, Espiritu mortgaged the properties twice (loans of ₱3,000.00 and ₱2,000.00) to Republic Savings Bank and later offered them for sale, contrary to the alleged trust agreement.

The Register of Deeds of Rizal canceled part of TCT No. 20174 and issued TCT No. 32744 in Espiritu’s name. Constantino filed a complaint seeking a preliminary injunction against further alienation, specific performance by a deed of sale in favor of the minor beneficiary, and ₱2,000.00 attorney’s fees.
Espiritu moved to dismiss the complaint for failure to include the minor beneficiary as party-plaintiff and for unenforceability under the Statute of Frauds. The trial court granted the motion and dismissed the complaint with costs.
Constantino moved to admit an amended complaint adding Pastor Constantino, Jr. as co-plaintiff and appointing himself guardian ad litem. Espiritu opposed, characterizing it as an improper substitution of parties. The trial court denied the motion, prompting this direct appeal on a question of law.

Whether the trial court erred in denying the motion to file an amended complaint adding the unborn child as co-plaintiff under a stipulation pour autrui.

Whether the action for specific performance of the alleged trust is barred by the Statute of Frauds.

Whether proof of the alleged implied trust under Article 1453, Civil Code, is precluded by the parol evidence rule.