Case Digest (G.R. No. 165907)
Facts:
In Sps. Dominador R. Narvaez and Lilia W. Narvaez v. Sps. Rose Ogas Alciso and Antonio Alciso (G.R. No. 165907, July 27, 2009), the Supreme Court reviewed a chain of conveyances involving a 1,329-sqm parcel in La Trinidad, Benguet. Originally titled to Larry A. Ogas and partly leased to Esso, the land was sold to his daughter, Rose O. Alciso, who in August 1979 sold it to Jaime Sansano under a Deed of Sale with Right to Repurchase, then repurchased it and in March 1980 sold it to Celso S. Bate as an Absolute Sale. Bate sold the property on August 14, 1981 to the Spouses Narvaez under a Deed of Sale of Realty that included a stipulation pour autrui granting Alciso the right to repurchase “at a price under such conditions as the present buyers may impose.” The Narvaez spouses constructed a commercial building in 1982. When Alciso sought to exercise her repurchase right, parties could not agree on price and Alciso sued in June 1984 in the RTC for annulment of the deeds, cancellatioCase Digest (G.R. No. 165907)
Facts:
- Property and early transactions
- Larry A. Ogas owned a 1,329 sqm parcel in Pico, La Trinidad, Benguet (TCT No. T-1068), partly leased to Esso Standard Eastern, Inc.
- Ogas sold the land to his daughter, Rose O. Alciso, and TCT No. T-1068 was cancelled for TCT No. T-12422 in Alciso’s name.
- Subsequent sales and stipulations
- 25 August 1979 – Alciso executed a Deed of Sale with Right to Repurchase in favor of Jaime Sansano for ₱10,000; she later repurchased the land.
- 28 March 1980 – Alciso sold the property to Celso S. Bate for ₱50,000 via Deed of Absolute Sale; TCT No. T-12422 was cancelled for TCT No. T-16066.
- 14 August 1981 – Bate sold to spouses Dominador R. and Lilia W. Narvaez for ₱80,000 (TCT No. T-16528) with a stipulation carrying over Alciso’s right to repurchase “at a price under such conditions as the present buyers may impose.”
- Dispute and judicial proceedings
- Alciso demanded inclusion of a repurchase stipulation; Narvaez spouses set a ₱300,000 price, Alciso offered ₱150,000, no agreement ensued.
- 15 June 1984 – Alciso filed with the RTC a complaint to annul the three deeds, cancel subsequent titles, reconvey the land, and recover damages, alleging the transactions were real estate mortgages disguised as sales.
- 6 April 1998 – RTC held: the original pact was functus officio; the 1980 sale was time-barred; Alciso lacked personality to annul the Narvaez deed; recognized stipulation pour autrui; fixed repurchase price at ₱80,000; allowed building appropriation with indemnity; awarded attorney’s fees and nominal damages.
- 29 October 2004 – Court of Appeals affirmed with modification: confirmed stipulation pour autrui and acceptance; remanded for determination of reasonable repurchase price; recognized Narvaez spouses as good-faith builders.
- 15 December 2004 – Narvaez spouses petitioned the Supreme Court under Rule 45, contesting Alciso’s acceptance communication.
Issues:
- Whether Alciso communicated acceptance of the stipulation pour autrui before its revocation.
- Whether Article 448 of the Civil Code applies to improvements built by owner-builders in a sale with right of repurchase.
- Which provisions govern the exercise, period, and requisites of the right of repurchase in a sale with right of repurchase.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)