Title
Estate of Bueno vs. Estate of Peralta
Case
G.R. No. 205810
Decision Date
Sep 9, 2020
Dispute over property given as partial payment for legal services; oral contract upheld due to partial performance, ratification, and unjust enrichment.

Case Digest (G.R. No. 205810)
Expanded Legal Reasoning Model

Facts:

  • Arrangement Between Parties
    • In 1957, Spouses Valeriano C. Bueno and Genoveva I. Bueno engaged Atty. Eduardo M. Peralta, Sr. as personal and business counsel of the Bueno family and their companies.
    • In 1960, the Buenos gave Peralta their house and lot (TCT No. 47603, 3450 Magistrado Villamor St., Sta. Mesa, Manila) as partial consideration for his legal services. Peralta and family occupied the property from January 1962, introduced substantial improvements, and paid real property taxes.
  • Breakdown and Litigation
    • Atty. Peralta died on December 27, 1983. In 1990, Dr. Edgardo B. Peralta (one heir) wrote to the Buenos demanding execution of a proper Deed of Conveyance; the Buenos instead demanded surrender of possession and refused repeated demands. A physical intrusion and attack by Mr. Bueno on one Peralta heir led to a criminal complaint.
    • In 1996, the Estate of Peralta filed a Complaint for specific performance in RTC Manila, Branch 37, praying for execution of the conveyance. The Buenos (later joined by Genoveva’s heirs, and after Mr. Bueno’s death in 2000) answered, invoking the Statute of Frauds, prescription, and impossibility due to encumbrances.
    • After trial, the RTC (October 11, 2005) dismissed the complaint:
      • Found no perfected contract—Peralta resigned in 1975, thus failed to serve until retirement (suspensive condition).
      • Held action prescribed (six-year prescription for oral contracts).
    • CA (August 31, 2012) reversed:
      • Deemed the agreement an innominate (facio ut des) contract—Peralta rendered service (facio), the Buenos were to give property (des) upon retirement.
      • Partial performance (possession, improvements, taxes) removed Statute of Frauds.
      • Found Peralta served until retirement age; action is for quieting of title (imprescriptible).
      • Ordered the Buenos to execute Deed of Conveyance or have title divested in favor of the Peralta estates.
    • CA denied reconsideration (February 8, 2013). The Estate of Bueno filed a petition for review on certiorari (SC).

Issues:

  • Is the alleged oral agreement to transfer real property in exchange for legal services enforceable despite the Statute of Frauds?
  • Was the oral contract ratified or removed from the Statute of Frauds by partial performance, acceptance of benefits, and failure to object to parol evidence?
  • Is the action barred by prescription or laches?
  • Did the CA err in reversing the RTC and ordering the execution of the Deed of Conveyance?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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