Case Digest (G.R. No. 62773)
Facts:
- Petitioners: Olimpio Reyes, Antonio G. Reyes, Irene R. Reyes, Petronila R. Carreon, Natividad R. Gahol, Florencio Carreon, Dioscoro Gahol.
- Respondents: Oscar R. Zubiri, Eufracia Gabay, Court of Appeals.
- On August 31, 1959, Olimpio Reyes and Eulogia Gutierrez leased a 4,022 square meter land in Barrio Panghulo, Malabon, Rizal to "Capiz and Rafael" for ten years.
- Lease agreement stated that improvements made by the lessee would belong to the lessor if not removed within sixty days after lease expiration.
- Improvements included an adobe stone fence, garage, factory, two-storey residential building, and canteen, all registered.
- On October 10, 1961, Cecilio M. Rafael assigned his lease rights to Republic Bank, which was registered.
- In 1967, Rafael assigned his rights to Atty. Oscar S. Zubiri as payment for legal services, but this assignment was not registered.
- After Rafael defaulted, Republic Bank chose not to auction the property.
- Following Eulogia Gutierrez's death, the other petitioners substituted her in the case.
- Dispute arose when Zubiri allegedly deceived Olimpio Reyes into signing documents that sold the improvements to him.
- Petitioners filed a suit against Zubiri for annulment of contracts, recovery of ownership, and damages.
- Trial court ruled in favor of petitioners, declaring documents null and void and affirming their ownership.
- Court of Appeals reversed the trial court's decision, prompting the petition for review.
Issue:
- (Unlock)
Ruling:
- The Supreme Court reversed the Court of Appeals' decision and reinstated the trial court's ruling, except for th...(Unlock)
Ratio:
- The Supreme Court determined that the Court of Appeals incorrectly concluded that Atty. Zubiri had rights to the improvements based on an unregistered assignment from Rafael.
- The registered assignment to Republic Bank meant Zubiri could not claim rights to the improvements since Rafael had already assigned his leasehold rights to the bank.
- Zubiri, as Rafael's attorney, was prohibited from acquiring rights ...continue reading
Case Digest (G.R. No. 62773)
Facts:
The case involves petitioners Olimpio Reyes, Antonio G. Reyes, Irene R. Reyes, Petronila R. Carreon, Natividad R. Gahol, Florencio Carreon, and Dioscoro Gahol against respondents Oscar R. Zubiri, Eufracia Gabay, and the Court of Appeals. The events leading to the case began on August 31, 1959, when spouses Olimpio Reyes and Eulogia Gutierrez, the registered owners of a 4,022 square meter parcel of land in Barrio Panghulo, Malabon, Rizal, leased their property to a partnership named "Capiz and Rafael" for ten years. The lease agreement stipulated that any improvements made by the lessee would belong to the lessor if not removed within sixty days after the lease's expiration. This contract was duly registered with the Registry of Deeds for Rizal.
During the lease, the lessees constructed various improvements on the property, including an adobe stone fence, a garage, a factory, a two-storey residential building, and a canteen. These improvements were also registered. On October 10, 1961, Cecilio M. Rafael, one of the lessees, assigned his rights under the lease to Republic Bank, which was duly registered. However, in 1967, Rafael assigned his rights to Atty. Oscar S. Zubiri as payment for legal services, but this assignment was not registered.
After Rafael defaulted on his obligations to Republic Bank, the bank opted not to pursue the auction of the property. Following the death of Eulogia G...