Title
Morales vs. Court of Appeals
Case
G.R. No. 117228
Decision Date
Jun 19, 1997
Dispute over land ownership in Calbayog City; plaintiffs claimed ownership via purchase, while intervenors alleged implied trust. Court ruled for plaintiffs, rejecting trust claim and builder-in-good-faith defense, but deleted damages awards.

Case Digest (G.R. No. 117228)
Expanded Legal Reasoning Model

Facts:

  • Procedural History
  • In February 1987, spouses Ranulfo and Erlinda Ortiz filed Civil Case No. 265 in the RTC of Calbayog City for recovery of possession of a parcel of land with improvements, moral damages, litigation expenses, attorney’s fees, and a permanent mandatory injunction against Rodolfo Morales.
  • On 2 February 1988, Priscila Morales moved to intervene; no opposition was filed, and intervention was granted on 4 March 1988. Rodolfo Morales died on 30 November 1988; on 9 February 1989 the court allowed his substitution by his heirs Roda, Rosalia, Cesar, and Priscila Morales. Trial on the merits concluded on 16 November 1990.
  • On 26 August 1991, the RTC rendered judgment declaring the Ortiz spouses absolute owners, ordering the Morales intervenors to vacate, remove a beauty shop, pay monthly rent (₱1,500 from March 1987), moral damages (₱75,000), litigation expenses (₱5,000), attorney’s fees (₱10,000), and costs; it made permanent the preliminary injunction. The CA (Seventeenth Division) affirmed in toto on 20 April 1994. Petitioners then brought a Rule 45 petition to the Supreme Court.
  • Material Facts
  • Celso Avelino, bachelor and City Fiscal of Calbayog, purchased two adjoining parcels at corner Umbria St. and Rosales Blvd., Brgy. Central, Calbayog City, on 8 July 1948 from Alejandra Mendiola and Celita Bartolome by public Deed of Sale; he consolidated tax declarations, caused a survey (Lot 1949), built a two-storey concrete residence, and paid realty taxes over decades.
  • Without his knowledge, defendant Rodolfo Morales constructed a small beauty shop on the lot. In 1987 Celso sold the property by Deed of Absolute Sale (Exh. aCa) to the Ortiz spouses; Morales refused to vacate or demolish his beauty shop unless paid ₱35,000 (though valued under ₱5,000).
  • Plaintiffs demanded vacation orally and in writing (Exhs. aLa, aMa); Morales refused. As plaintiffs prepared urgent repairs on the dilapidated house, Morales lodged boarders, claimed ownership, and resisted their entry. Plaintiffs filed Civil Case No. 265.
  • The RTC found plaintiffs’ documentary evidence (conveyance deeds, tax declarations, surveys, tax receipts) clear and credible. Intervenor’s claim rested on self-serving, evasive testimony; co-heirs never contested Celso’s title; they failed to partition; Morales and Priscila showed laches; the condition of the building belied intervenor’s ownership pretensions.

Issues:

  • Did an implied resulting trust arise under Art. 1448 of the Civil Code, making Celso Avelino trustee for his parents and siblings?
  • Was Rodolfo Morales a builder in good faith entitled to indemnity under Arts. 448 and 453 of the Civil Code?
  • Are the Ortiz spouses entitled to moral damages, attorney’s fees, and litigation expenses?

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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