Title
De la Cruz vs. Intermediate Appellate Court
Case
G.R. No. 72981
Decision Date
Jan 29, 1988
Heirs dispute ownership of Gregorio Monte’s estate; surviving spouse Francisca de la Cruz claims rightful share. Buyers deemed not in good faith; case remanded for partition.

Case Digest (G.R. No. L-29320)
Expanded Legal Reasoning Model

Facts:

  • Parties and Procedural History
    • Petitioner and Substituted Party
      • Francisca de la Cruz (deceased), substituted by Rosa Abrenica assisted by her husband Rafael Montero.
      • Petitioner sought partition of the estate of Gregorio Monte, claiming her right as the surviving spouse.
    • Respondents and Substituted Parties
      • Respondents include the heirs of Gregorio Monte’s siblings – Benito, Mariano, and Lydia Monte – who had previously filed for possession and ownership.
      • Substituted parties include Miguel Monte (in lieu of Benito), Alfredo and Geronima Monte (in lieu of Mariano), and other private respondents such as the spouses Andres Rabara, Juliana Macanas, Faustina Leonin, Josefa Macanas, Montenillo Rafanan, and Aurelia Rafanan.
    • Prior Litigation and Appellate Proceedings
      • In Civil Case No. T-338 (1956), the plaintiffs (Monte heirs) filed against the defendants, which included Francisca de la Cruz, to recover possession and ownership of two parcels of land.
      • The trial court (1967) ruled in favor of the Monte heirs by declaring null and void the deeds conveying Lots 4305 and 962 to the defendants and ordering their surrender.
      • On appeal, the Court of Appeals (CA-G.R. No. 40121-R) affirmed the trial court’s decision with modifications involving the ordering of damages payable to the Monte heirs, yet excluding Francisca de la Cruz from such liability.
      • A subsequent Motion for Reconsideration was filed by Francisca de la Cruz, which was denied, and later the petitioner appealed to the Supreme Court for review.
  • Estate of Gregorio Monte and Real Property Transactions
    • Estate Composition
      • The late Gregorio Monte owned two parcels of land: Lot 4305 (Cadastral Survey of Urdaneta) and Lot 962 (Cadastral Survey of Villasis), both located in Pangasinan.
      • Issues of intestate succession arose, particularly with respect to the surviving spouse’s share versus the share of the heirs of Gregorio Monte’s siblings.
    • Extrajudicial and Subsequent Partition
      • After the decision in Civil Case No. T-338 became effective, the Monte heirs executed a “Deed of Extrajudicial Partition” on February 7, 1972, purporting that they were the sole legal heirs of the late Gregorio Monte.
      • This partition deed led to the cancellation of the original Transfer Certificates of Title (TCT) for both lots, with new titles subsequently issued in the names of the Monte heirs, but annotated that the transactions were subject to Section 4, Rule 74 of the New Rules of Court.
    • Sale of the Properties
      • Lot 4305 was sold to spouses Andres Rabara and Juliana Macanas, Faustina Leonin, and Josefa Macanas on February 9, 1972.
      • Lot 962 was sold on February 12, 1972 to spouses Montenillo Rafanan and Aurelia Rafanan.
      • The registration of these sales was effected on February 18, 1972, after the filing of the complaint for partition by Francisca de la Cruz.
  • Evidentiary Record and Testimonies
    • Annotated Titles and Notice of Claims
      • The new titles issued to the Monte heirs contained annotations regarding the claims of other potential heirs under Section 4, Rule 74.
      • Buyers were informed of the existing litigation and annotations on the titles at the time of purchase.
    • Testimonies of Respondent Buyers
      • Testimony of respondent Aurelia Rafanan indicated awareness that the property was involved in litigation.
      • Testimony of respondent Andres Rabara revealed uncertainty about the timing and circumstances under which the title was shown, suggesting that the buyers had knowledge of the disputed status of the property.
  • Issues on Conversion of the Action and Claims for Partition
    • Nature of the Original Action
      • The original action was for partition – demanding that the estate be divided among the rightful heirs according to the law of intestate succession.
      • The decision of the Court of Appeals converted the partition action into an action for damages against the Monte heirs, purportedly due to faulty extrajudicial partition and sales.
    • Petitioner's Claim and Assignment of Errors
      • Francisca de la Cruz, by her subsequent petition, claimed that as the surviving spouse she was entitled to her share in the estate of Gregorio Monte.
      • The assignment of errors included:
        • Alleged error in holding that she, as the surviving spouse, had no specific mention in the appellate decision to inherit or demand partition.
ii. Error in converting the partition action into an action for damages. iii. Error regarding the evaluation of evidence on the good faith of the private respondents (buyers). iv. Error in remanding the case for further trial despite issues allegedly being barred by res judicata and inconsistencies with Section 9 of the New Judiciary Act.
  • Appellate Court’s Modified Decision
    • Remanding the Case
      • The appellate court set aside the lower court’s decision dismissing the petition for partition and remanded the case to the trial court to hear the partition on the merits.
      • The remand was not for a reappraisal of the buyers’ good faith (already found lacking) but for the determination of the rightful heirs’ shares including that of the petitioner.
    • Findings on Purchasers’ Good Faith
      • The appellate court relied on the premise that buyers purchased the properties without notice of any defect and paid a full and fair price.
      • However, the record revealed that the buyers were aware of the litigation and disputed status as evidenced by the annotations and their testimonies.

Issues:

  • Question on the Right of Inheritance and Partition
    • Whether the trial court erred in disregarding the petitioner’s (Francisca de la Cruz’s) claim to her rightful share as the surviving spouse of Gregorio Monte.
    • Whether the absence of an explicit declaration as an heir in the appellate decision should preclude her partition claim.
  • Evaluation of Purchasers’ Good Faith
    • Whether the respondent appellate court improperly concluded that the purchasers (private respondents) acted in good faith without sufficient reliance on the evidence.
    • Whether the buyers, having had notice of the ongoing litigation and the annotated titles, could be deemed bona fide purchasers for value.
  • Conversion of the Nature of the Action
    • Whether it was proper to convert the original action for partition into an action for damages against the Monte heirs.
    • Whether the conversion disregarded the petitioner’s basic claim of her share in the estate under the law of intestate succession.
  • Authority to Remand the Case for Further Trial
    • Whether remanding the case to the lower court for further hearing on the merits was proper under Section 9 of the New Judiciary Act (BP No. 129).
    • Whether such remand was a violation or an appropriate exercise of the appellate court’s discretion in handling factual disputes.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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