Title
Spouses Yu vs. Ayala Land, Inc.
Case
G.R. No. 173120
Decision Date
Apr 10, 2019
Land dispute: petitioners' OCT No. 8510 upheld over ALI's void titles due to defective surveys; reconveyance deemed imprescriptible.

Case Digest (G.R. No. 140335)
Expanded Legal Reasoning Model

Facts:

  • Background of the Case
    • The consolidated cases involve Spouses Yu Hwa Ping and Mary Gaw, heirs of Spouses Andres Diaz and Josefa Mia, and respondent Ayala Land, Inc. (ALI).
    • The dispute centers on the validity of certain Transfer Certificates of Title (TCTs) and Original Certificates of Title (OCTs) covering parcels of land in Las Piñas, Rizal.
    • Petitioners challenged the validity of ALI’s titles, asserting that they were based on void surveys and technical descriptions.
    • The contested titles originated from OCT Nos. 242, 244, and 1609, while petitioners’ titles derived from OCT No. 8510.
  • Procedural History
    • The Court of Appeals rendered a decision on February 8, 2005, affirming the invalidity of ALI’s titles based on defective surveys, which was reversed on June 19, 2006.
    • The Supreme Court, in a July 26, 2017 decision, reversed the Court of Appeals’ June 19, 2006 decision, reinstating the February 8, 2005 ruling.
    • ALI filed a first Motion for Reconsideration, which was denied on December 4, 2017.
    • ALI then filed a Second Motion for Reconsideration and a motion to elevate the case to the Court en banc, which are the subjects of the instant Resolution.
  • Details on the Surveys and Titles
    • Petitioners’ titles are based on survey plan Psu-25909 dated March 17, 1921, approved by the Director of Lands, and originating from OCT No. 8510, issued on May 19, 1970.
    • ALI’s titles are based on survey plans Psu-47035 (1925), Psu-80886 (1930), and Psu-80886/SWO-20609 (1931), all prepared by the same surveyor, A.N. Feliciano, but containing numerous glaring irregularities and discrepancies.
    • The disputed surveys differ in location descriptions, signatures, and approval status, with questionable references to a monument (B.L.L.M No. 4) established only years after some surveys were done.
    • Verification surveys ordered by the Regional Trial Court (RTC) of Las Piñas revealed overlapping areas and technical anomalies in ALI’s title surveys.
    • The RTC ruled in favor of the petitioners, ascribing superior validity to their titles based on Psu-25909.
  • ALI’s Arguments
    • ALI argued that its titles cannot be declared void merely because surveys are alleged defective; that registration is conclusive and registration date governs priority.
    • ALI further claimed the issue was res judicata due to earlier rulings affirming their titles’ validity in other cases (Spouses Carpo v. ALI; Realty Sales v. IAC).
    • ALI also questioned the timeliness of the petitioners’ cause of action, claiming prescription barred the attack against their titles.

Issues:

  • Whether the Supreme Court erred in invalidating Ayala Land, Inc.’s titles on the ground of defective and irregular surveys and technical descriptions.
  • Whether the general rule that in case of two titles involving the same land, the earlier certificate prevails, applies absolutely or whether exceptions apply.
  • Whether the Second Motion for Reconsideration and motion to elevate the case to the Court en banc should be granted.
  • Whether petitioners’ action is barred by prescription or res judicata based on prior decisions affirming ALI’s titles.
  • Whether ALI was an innocent purchaser for value entitled to protection under the Torrens system.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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