Facts:
Mons. Carlos Inquimboy (plaintiff and appellant) was the registered owner of the disputed land in Bongabon, Nueva Ecija, as shown by
T.C.T. No. 15600 of the Register of Deeds of Nueva Ecija. On
October 31, 1941, he sold the land, together with another parcel under
T.C.T. No. 15599, to
Cenon Albea for
P4,000.00, with a down payment and an agreed balance to be paid in two installments:
P2,500.00 on
November 15, 1941, and
P500.00 in
May 1942. On
December 20, 1943, Albea sold the same land, together with two other registered parcels, to
Pedro Cruz through a deed of sale presented for registration on
January 3, 1944; registration was granted for the two other parcels, but was refused for the disputed land because it remained in Inquimboy’s name since Albea had not yet registered his own deed of sale. On
February 18, 1944, Albea’s sale was registered, Inquimboy’s title was cancelled, and
T.C.T. No. 20142 was issued to Albea. On
February 23, 1944, Inquimboy filed a case in the Court of First Instance of Nueva Ecija against Albea (Civil Case No. 93-J), alleging nonpayment of the installment sums and seeking
rescission and
reconveyance. On
May 26, 1944,
T.C.T. No. 20142 in Albea’s name was cancelled and
T.C.T. No. 20584 was issued to Pedro Cruz. In the earlier litigation, after the case went through the lower court, the Court of Appeals, and to final review by this Court, the decision promulgated on
May 29, 1950 (cited in the record as
89 Phil., 1601; 47 Off. Gaz. [12] 131) ordered Albea to reconvey and deliver the litigated properties to Inquimboy, unless within thirty days from final judgment Albea paid the remaining purchase price,
P500.00 as liquidated damages, and attorney’s fees. On
October 11, 1957, Inquimboy instituted the present action in the Court of First Instance of Nueva Ecija against
Maria Concepcion Paez Vda. de Cruz, the surviving spouse of the deceased Pedro Cruz, seeking
annulment of T.C.T. No. 20584 and issuance of a new title in Inquimboy’s name. The parties submitted the case on a stipulation of facts which contained the foregoing chronology. The lower court dismissed the complaint, prompting this appeal where Inquimboy relied on three grounds: that Pedro Cruz was not a
buyer in good faith, that Cruz was bound by the earlier decision in
G.R. No. L-1601, and that appellant was not guilty of
laches.
Issues:
Whether
Pedro Cruz was a
purchaser in good faith such that he acquired
T.C.T. No. 20584 free from Inquimboy’s prior claims arising from the rescission judgment against
Albea.
Ruling:
Ratio:
Doctrine: