Title
Spouses Ybiosa vs. Drilon
Case
G.R. No. 212866
Decision Date
Apr 23, 2018
Dispute over Lot 3667 ownership; RTC and CA rulings voided as DAR holds exclusive jurisdiction over CLOA-covered agrarian reform land.
A

Case Digest (G.R. No. 212866)

Facts:

  • Factual Background
    • In 1997, plaintiff Inocencio Drilon filed a complaint for the annulment of a Deed of Absolute Sale, the cancellation of Original Certificate of Title No. 7266, and damages.
    • In his complaint, Inocencio alleged that he purchased Lot 3667 from the late Gabriel Drilon as supported by receipts.
    • He asserted that defendant Eustaquia Eumague Drilon, together with the spouses Fredeswinda Drilon Ybiosa and Alfredo Ybiosa, conspired to create a fraudulent deed of sale by counterfeiting the signature of Gabriel Drilon.
  • Allegations Regarding the Deed and Property
    • Plaintiff contended that the signature of the late Gabriel Drilon in the questioned Deed of Absolute Sale (dated February 28, 1992) was produced by another hand.
    • Evidence cited included comparisons with signatures on earlier documents (e.g., affidavits of consent, notices of appeal, and an answer with counterclaim) which demonstrated marked differences—suggesting fraud.
    • The receipts presented by the plaintiff, although issued around 1990–1991, appeared to be of more recent manufacture compared to the disputed deed.
  • Nature and Status of the Subject Property
    • The property in dispute, Lot 3667, was originally an unregistered land presumed to be public and owned by the State.
    • It was later treated as a conjugal property acquired by Gabriel Drilon and his wife Eustaquia Eumague when bought from Maximiana Alviola in 1980.
    • The property had been subject to tax payments and eventually obtained a Certificate of Land Ownership Award (CLOA No. 00113116) and an original certificate of title.
  • Proceedings in Lower and Intermediate Courts
    • Regional Trial Court (RTC) Decision (August 29, 2006)
      • The RTC annulled the deed of sale on the ground of badges of fraud in the signature and declared the oral sale to the plaintiff void.
      • It noted that since Lot 3667 was conjugal property and the sale lacked the necessary consent of Eustaquia Eumague Drilon, the plaintiff could not claim a superior right to the land.
      • Claims for damages were dismissed as they were not adequately established.
    • Court of Appeals (CA) Decision (August 23, 2012)
      • The CA set aside the RTC decision in part by declaring the deed of sale executed in favor of petitioners void and upheld the sale in favor of the plaintiff.
      • The CA directed that the plaintiff-appellant pay a balance with interest, while also dismissing the claims for damages.
      • It emphasized that issues involving the issuance, correction, or cancellation of a CLOA fall directly within the jurisdiction of the Department of Agrarian Reform (DAR).
    • Subsequent Motion for Reconsideration by petitioners was denied in a May 14, 2014 Resolution of the CA.
  • Key Evidentiary and Jurisdictional Aspects
    • Documentary evidence and expert testimony by the NBI indicated that the signature of Gabriel Drilon on the contested documents showed clear discrepancies.
    • The dispute raised questions on whether the RTC and subsequently the CA had proper jurisdiction over an action primarily involving the cancellation of the CLOA and certificate of title—a matter governed by agrarian reform laws and the exclusive powers of the DAR.
    • The submission of inconsistent evidence regarding the existence of a valid sale (including the alleged perfected sale by receipt) further complicated the dispute over rightful ownership.

Issues:

  • Jurisdictional Issue
    • Whether the Court of Appeals erred in not declaring that the Regional Trial Court lacked jurisdiction over a matter involving the cancellation of a Certificate of Land Ownership Award, an issue under the exclusive purview of the Department of Agrarian Reform.
  • Prescription
    • Whether the action for annulment of the deed of sale filed by plaintiff has prescribed, barring his cause of action against the petitioners.
  • Validity of the Deed of Sale
    • Whether the Court of Appeals erred in declaring the February 28, 1992 deed of sale in favor of the petitioners as void on account of badges of fraud and lack of consent.
  • Perfected Sale by Evidence of Receipts
    • Whether the CA was correct in concluding that there existed a perfected sale between Gabriel Drilon and Inocencio Drilon over a portion of Lot 3667, relying on receipts that were alleged to evidence installment payments.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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