G.R. No. 164978 - Pimentel, Jr. vs. Ermita

Mercuria B. Magsi (Magsi), represented by her daughter Maria Frances M. Mangaoang, filed a Complaint for Forcible Entry and Damages on March 9, 2017, docketed as Civil Case No. 14049, against the Heirs of Ignacio A. Lopez, Jr. (Delia De Guzman Lopez and Lorraine De Guzman Lopez) and Rodolfo Barnachea, Sr. (Rodolfo) (collectively, respondents).
The dispute arose after respondents allegedly forcibly ousted Magsi and her children from a property located in Baguio City, which Magsi claimed possession of since 1981.

Magsi was employed by the Department of Public Works and Highways (DPWH) in Baguio City from 1964 until retirement in 2004, residing at the National Government Dormitory, Dormitory I, Jungle Town, Engineers' Hill.
Magsi was a member of the Engineers Hill Lotless Homeseekers Association, Inc. (Association) and applied for the purchase of a cottage lot under Republic Act No. 1361, as amended by Republic Act No. 5941, which allowed the sale of government cottages and lots to lessees with at least three years continuous occupancy.
Magsi submitted her application in 1981 and was awarded Lot No. 50 where she had been occupying and building a bodega and later a residential house by 1991. She declared the house for tax purposes in 1993 and the lot as early as 1990.

The respondents (Heirs of Lopez) hold title over Lot No. 49, a distinct but adjacent lot to Lot No. 50.
Despite the lots being distinct, the subject property Magsi sought to recover was found to be encroaching into Lot No. 49, which the respondents owned, as stipulated by the parties.
In 2016, respondents allegedly threatened Magsi’s children occupying the property and subsequently fenced off the property, nailed the door, posted "NO TRESPASSING" signs, and stationed dogs, effectively depriving Magsi and her family of access.

The Municipal Trial Court in Cities (MTCC) ruled in favor of Magsi, ordering respondents to surrender possession and pay damages.
The Regional Trial Court (RTC) affirmed the MTCC’s decision.
On appeal, the Court of Appeals (CA) reversed the lower courts, holding that the Heirs of Lopez, Jr. have a better right to possession due to their Torrens title over Lot No. 49, categorizing them constructive possessors and emphasizing juridical acts over physical possession.

Magsi argued the CA erred in applying constructive possession as a ground to deny her action for forcible entry, emphasizing her prior physical possession since 1991.
Respondents argued the CA correctly resolved ownership and possession since the subject property was inside Lot No. 49.

Whether Mercuria B. Magsi is entitled to possess the subject property despite the Torrens title being held by the respondents over the larger Lot No. 49 that encompasses the disputed area.