Facts:

• The case, Resurreccion de Leon, et al. vs. Emiliana Molo-Peckson, et al. (G.R. No. L-17809), was decided by the Supreme Court of the Philippines on December 29, 1962.
• Plaintiffs Resurreccion de Leon and Justa de Leon filed a complaint on November 13, 1958, in the Court of First Instance of Rizal.
• They sought to compel defendants Emiliana Molo-Peckson and Pilar Perez Nable to convey ten parcels of land in Pasay City, totaling 1,749 square meters.
• The plaintiffs claimed these lots were willed or donated to them in 1948 by their foster parents, with an agreement to sell the properties for P1.00 each.
• Defendants denied any obligation to sell, asserting a document executed on August 9, 1956, revoked the earlier donation due to a misunderstanding of their foster parents' intentions.
• The trial court ruled in favor of the plaintiffs on September 21, 1960, establishing a trust over the properties and ordering various actions from the defendants.
• The defendants appealed the decision.

Issue:

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Ruling:

• The Supreme Court affirmed the lower court's decision, with modifications regarding the accounting of the fruits of the properties.
• A trust was constituted in favor of the plaintiffs.
• The application of the New Civil Code provisions was appropriate.
• The document executed on December 5, 1950, was valid and binding.
• The attempted revocation of the mutual agreement was ineffective.
• The order for accounting was justified, with the acc...(Unlock)

Ratio:

• The Supreme Court reasoned that the document executed on December 5, 1950, established a trust in favor of the plaintiffs, reflecting the wishes of the deceased foster parents.
• The court emphasized that the defendants voluntarily executed the document, acknowledging their obligation to convey the properties.
• The attempted revocation of the mutual agreement was ineffective, as a voluntary trust cannot be revoked without the beneficia...continue reading