Facts:

• The case involves Davao Grains Incorporated and Lapanday Agricultural and Development Corporation as petitioners against the Intermediate Appellate Court and private respondents Protacio Espina and Marcial Espina.
• The Espina brothers settled on an abandoned parcel of land in Asuncion, Davao, after the liberation of the Philippines in 1945.
• They filed a homestead application for the land on April 28, 1954, and paid the necessary fees.
• While awaiting a patent, the government initiated cadastral proceedings, requiring all claimants to file answers.
• The Espinas participated and received Decree No. N-130436 on June 19, 1970, leading to Original Certificate of Title (OCT) No. 0-2440.
• On May 28, 1975, the Espinas sold the property to Lapanday for P24,520.40, resulting in the cancellation of OCT No. 0-2440 and the issuance of Transfer Certificate of Title (TCT) No. T-19171 in Lapanday's name.
• Lapanday later sold the land to Davao Grains, which received TCT No. T-20083 on November 10, 1975.
• On March 24, 1980, the Espinas filed an action to repurchase the property, claiming it was a homestead subject to repurchase under Commonwealth Act No. 141.
• The trial court dismissed their complaint on January 15, 1982, ruling the land was not a homestead but a cadastral lot, a decision that became final as the Espinas did not appeal.
• On August 19, 1983, the Espinas filed a new action for annulment of the sales, leading to a trial court ruling on February 14, 1984, that reinstated the original title in the Espinas' name.

Issue:

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Ruling:

• The Supreme Court ruled in favor of the petitioners, declaring the sales in favor of Lapanday and Davao Grains, Inc. valid, and...(Unlock)

Ratio:

• The Court reasoned that the approval of a homestead application segregates the land from the public domain, granting the applicant rights over it.
• The abandonment of the land by the original occupant does not alter its status as a homestead.
• The Espinas cleared and developed the land and filed their homestead application, which was pending during the cadastral proceedings.
• The issuance of a cadastral title does not negate the homestead character of the land, as the original homestead application...continue reading