Title
Spouses Sabitsana, Jr. vs. Muertegui
Case
G.R. No. 181359
Decision Date
Aug 5, 2013
A dispute over unregistered land sold twice: first to Juanito Muertegui in 1981, then to Atty. Sabitsana in 1991. Courts ruled the first sale valid, voiding the second due to bad faith, applying Act No. 3344, and awarding attorney’s fees to Juanito.

Case Digest (G.R. No. 181359)
Expanded Legal Reasoning Model

Facts:

  • Initial Transactions and Possession
    • On September 2, 1981, Alberto Garcia executed an unnotarized Deed of Sale in favor of Juanito F. Muertegui over a 7,500 sqm unregistered parcel in Dalutan Island, Biliran.
    • Juanito’s father and brother entered actual, public, adverse, continuous possession; planted coconut and ipil-ipil; and paid real property taxes (1980–1998).
  • Subsequent Sale to Petitioners
    • On October 17, 1991, Garcia sold the same lot to his lawyer, Atty. Clemencio C. Sabitsana, Jr., via a notarized Deed of Absolute Sale; registered February 6, 1992; and secured Tax Declaration No. 5327.
    • Petitioners made improvements (rip-rap in 1996–1997) and paid taxes sporadically (1992, 1993, 1999).
  • Opposition and Litigation
    • In August 1998, Atty. Sabitsana opposed the Muertegui heirs’ application for public land registration, claiming conflicting ownership.
    • On April 11, 2000, Juanito (through attorney-in-fact Domingo Jr.) filed Civil Case No. B-1097 for quieting of title and preliminary injunction, praying to nullify petitioners’ sale, letter, and TD No. 5327, and for damages and attorney’s fees.
  • Trial Court Proceedings
    • Petitioners counterclaimed: argued lack of marital consent, good faith purchase, prescription, laches, and lack of jurisdiction (assessed value ₱1,230).
    • RTC Decision (Oct. 28, 2002): Declared the 1981 sale valid; 1991 sale and TD No. 5327 void for bad faith; awarded Juanito attorney’s fees (₱30,000), litigation expenses (₱10,000), and costs.
  • Court of Appeals Review
    • CA affirmed RTC (Jan. 25, 2007): held 1981 sale voidable but not annulled, thus valid; applied Art. 1544, preferred first possessor in good faith; found petitioners acted in bad faith; awarded fees and costs.
    • Petitioners’ Motion for Reconsideration denied (Jan. 11, 2008).

Issues:

  • Jurisdiction of the RTC
    • Whether the RTC lacked jurisdiction given the low assessed value (₱1,230).
  • Applicable Registration Rule
    • Whether Art. 1544 (Civil Code) or PD No. 1529 governs double sale of unregistered land.
  • Prescription, Laches, and Estoppel
    • Whether Juanito’s delay (1991–1998) barred his quieting action.
  • Award of Attorney’s Fees and Expenses
    • Whether such award was proper absent bad faith.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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