G.R. No. 208595 - Escabarte vs. Heirs of Isaw

The original property is a 16.2962-hectare parcel located in Nipaan, Sindangan, Zamboanga del Norte, covered by OCT No. RP-837(3107).
The property was owned by spouses Ipo Bawing and Tanod Subano, who both died intestate (Ipo in February 1943 and Tanod in January 1948), causing the estate to devolve by operation of law onto their children (Onday, Igbay, Garay, Anong, Octoc, Martina, Leoncio, and Pedro).

On September 5, 1960, Pelagia Isig (declared sole legitimate heir of Octoc) and Igbay sold their undivided interests to spouses David and Luz Barrios.
On April 16, 1962, Martina sold her share to the same spouses.
In September 1976, spouses Barrios reconveyed the shares they had acquired via a Deed of Resale, which was duly annotated on the OCT, under the names of Fausto and Benigno Isaw (sons of Garay).
On September 24, 1976, Fausto executed a Deed of Absolute Sale transferring all rights, interest, and participation over the property to his brother Benigno.

Based on the approved subdivision plan, a petition was filed for the issuance of TCTs, resulting on November 10, 1980, in:

TCT Nos. T-34992 and T-34994 issued in the name of Benigno Isaw for Lots 1 and 3 respectively.
TCT Nos. T-34993, T-34995, and T-34996 issued in the name of Ipo Bawing for Lots 2, 4, and 5 respectively.

From issuance of these titles, Benigno and his family were in open possession and beneficially enjoyed Lots 1 and 3.

On October 17, 2003, petitioners (a group of heirs including Guino Escabarte, Maria Hampac Vda. de Anguilid, and several others) filed a complaint seeking:

Petitioners alleged that there was an agreement among the heirs that the conveyance document should be in Fausto and Benigno’s names as they provided the funds for the redemption of shares sold to spouses Barrios. This agreement was said to be subject to reimbursement and subsequent partition among all heirs.
In counter, the heirs of Benigno contended that an oral partition had already occurred when earlier sales of undivided interests to spouses Barrios took place, and that Benigno, by registering lots in his name, had repudiated co-ownership.

The RTC, Sindangan, Zamboanga del Norte (Branch 11) rendered a decision on July 15, 2008:

Declaring TCT Nos. T-34992, T-34993, T-34994, T-34995, and T-34996 null and void.
Ordering the restoration of the original title and partition of the property into seven equal shares among the heirs of spouses Bawing.
Requiring an accounting of the proceeds from Lots 1 and 3 and awarding attorney’s fees and litigation expenses.

The Court of Appeals (CA), Cagayan de Oro City, in its October 22, 2012 decision, reversed the RTC ruling by:

Upholding the validity of TCT Nos. T-34992 and T-34994 in Benigno’s name.
Allowing for the partition of the remaining property (9.0880 hectares covered by the other titles) among the five children/heirs of spouses Bawing.
Excluding certain heirs due to valid dispositions of their interests.

Petitioners’ motion for reconsideration was denied by the CA on July 29, 2013, leading to the present Petition for Review on Certiorari before the Supreme Court.

The key issue revolves around whether Lots 1 and 3, registered in Benigno’s name, are part of the original estate of spouses Bawing or whether they were acquired through an act of ordinary sale—as opposed to a transaction of legal redemption benefiting all heirs.

Whether Lots 1 and 3, which were subsequently registered in the name of Benigno Isaw, form part of the estate of spouses Bawing and should be partitioned among all co-heirs.
Whether the transaction executed by Fausto and Benigno through the Deed of Resale constitutes a legal redemption (involving an implied trust for the benefit of the co-heirs) or is merely an ordinary sale excluding the other heirs.
Whether the requisites under Article 1088 of the Civil Code—most notably the requirement of a written notice to co-heirs triggering the 30-day redemption period—were satisfied in the transactions at issue.