Title
IN RE: Trias vs. Gregorio Araneta, Inc.
Case
G.R. No. L-20786
Decision Date
Oct 30, 1965
A lot owner sought to cancel a title annotation prohibiting factories, citing zoning laws. The Supreme Court upheld the restriction as a valid contractual obligation, ensuring enforceability regardless of zoning changes.

Case Digest (G.R. No. 92013)
Expanded Legal Reasoning Model

Facts:

  • Parties and Subject Matter
    • Rafaela Trias, married to Manuel Sia Ramos, petitioner and appellee, owned a lot in Quezon City.
    • Gregorio Araneta, Inc., oppositor and appellant, was involved as the party opposing the cancellation.
  • Circumstances Leading to the Petition
    • In May 1963, Rafaela Trias filed a petition in the Rizal Court of First Instance to cancel the annotation on her Torrens certificate of title which stated: "5. That no factories will be permitted in this section."
    • She claimed:
      • She was the registered owner of the lot.
      • She sought cancellation not to build a factory but to facilitate the approval of a loan application.
      • The annotation was illegal since it impaired her dominical rights as owner.
      • The annotation was surplusage as there were existing zoning ordinances prohibiting factories in the district.
  • Proceedings and Court Actions
    • The Rizal Court of First Instance granted the petition, endorsing her views, particularly pointing out the surplusage argument.
    • Gregorio Araneta, Inc. moved for reconsideration alleging:
      • The condition was inserted pursuant to a contract of sale between it and Rafaela’s predecessor-in-interest.
      • They received no timely notice of the petition.
      • The order disregarded contractual rights and obligations.
      • The prohibition against factories was valid and not surplusage.
      • The Court lacked jurisdiction to act on the petition.
    • The motion to reconsider was denied.
    • Gregorio Araneta, Inc. filed an appeal to the Supreme Court.
  • Agreement of Facts Between Parties
    • The lot was part of a subdivision originally owned by J. M. Tuason & Co. Inc.
    • The prohibition on factories was imposed by the corporation at the time of sale, reflected on the back of the original certificate of title.
    • The restriction was reiterated on the titles in subsequent transfers, including Rafaela’s certificate.
    • Rafaela noticed the prohibition upon receipt of her certificate and challenged it as an impairment of her right to use the land.

Issues:

  • The validity of the prohibition annotation on the certificate of title restricting the construction of factories on the property.
  • The effect and relevance of the existing zoning ordinance prohibiting factories in that district on the validity of the said prohibition.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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