G.R. No. L-17587 - Philippine Banking Corporation, representing the estate of Justina Santos y Canon Faustino, vs. Lui She, administratrix of Wong Heng, deceased

Philippine Banking Corporation, representing the estate of Justina Santos y Canon Faustino (deceased), is the plaintiff-appellant.
Lui She, acting in her own name and as administratrix of the intestate estate of Wong Heng (deceased), is the defendant-appellant.

On November 15, 1957, a lease contract for a term of 50 years was executed between the parties.
On November 25, 1957, the lease was amended to encompass the entire property owned by Justina Santos.
On December 21, 1957, a subsequent contract was entered into, providing Wong Heng with an option to buy the leased premises, contingent on the approval of his pending petition for naturalization.
On November 18, 1958, after Wong Heng failed to secure naturalization, two additional contracts were executed:

Collectively, these contracts were deemed as a coordinated scheme aimed at transferring the land to Wong Heng, thereby effectively placing ownership in alien hands, in contravention of constitutional limitations.

The defendant-appellant argued that the lease contract (Plff Exh. 3) was separable from the other contracts that were struck down.
However, the Court noted that the sequence and timing of the contracts demonstrated a single, integrated scheme intended to effect the transfer of ownership contrary to the constitution.

The defendant-appellant later filed a motion for a new trial based on three documents allegedly constituting newly discovered evidence:

A codicil dated November 11, 1957, which designated Tita Yaptinchay Lao as administratrix with the right to purchase the estate’s properties or, failing that, as sole heir.
Two wills executed on August 24 and August 29, 1959, which enjoined the heirs to abide by the lease contract and the conditional option in favor of Wong Heng.

It was asserted that these documents had not been produced during the trial (which concluded on August 6, 1960) because they emerged in the probate proceedings only after the death of Justina Santos on December 28, 1964.
The Court found that this representation was misleading, as the documents were known and even introduced as evidence during the trial.

She purportedly desired that Wong Heng, whom she considered akin to a son, benefit from the property.
Despite the codicil naming another beneficiary, the execution of the lease and related contracts implied a revocation of any contrary testamentary disposition regarding the disposition of the land.

Witnesses recounted her emphatic declaration that, notwithstanding potential legal infirmities, she was the owner and that her intentions regarding the transfer should be honored.

The lower court had already decided on the invalidity of the contracts as part of a scheme to violate constitutional restrictions.
The defendant-appellant’s motion for a new trial, based on the so-called newly discovered evidence, was ultimately denied.

Whether the lease contract, although presented as separable, is in fact an integral part of the overall scheme to transfer the property in violation of constitutional limitations on alien ownership.
Whether the codicil of November 11, 1957, and the two wills executed in August 1959 constitute newly discovered evidence justifying a new trial.
Whether the alleged newly discovered evidence could alter the outcome of the case given its prior admission and discussion in earlier proceedings.