Facts:
Following the death of the spouses
Fortunato Tayco and
Diega Regalado, their children included petitioner
Francisco Tayco, as well as
Concepcion Tayco-Flores and
Consolacion Tayco, who inherited several parcels of land in Aklan. The records show that in September 1972 petitioner Francisco Tayco and his sister Consolacion Tayco executed a notarized document denominated
Deed of Extrajudicial Settlement of the Estate of the Deceased Diega Regalado with Confirmation of Sale of Shares, by which they transferred their shares in the parcels of land to Concepcion Tayco-Flores; subsequently, on March 16, 1991, Concepcion Tayco-Flores and Consolacion Tayco executed a second document entitled
Confirmation of Quitclaim of Shares in Three (3) Parcels of Land. Consolacion Tayco died on December 25, 1996, and Concepcion Tayco-Flores died on January 14, 1997. Thereafter, petitioner Francisco Tayco filed in the RTC of Kalibo, Aklan, a case for
nullity of documents and partition with damages, asserting that both documents were void and that he remained entitled to his original shares. He alleged that the 1972 extrajudicial settlement was executed to accommodate Concepcion because she wanted the properties to be mortgaged and a loan to be obtained, but that the mortgage did not materialize; he claimed that Concepcion had ensured the document would have no effect. He further alleged that, without his knowledge and consent, Concepcion and Consolacion executed the 1991 quitclaim to transfer tax declarations and certificates of title in Concepcion’s name, and that he discovered these facts only when he tried to survey the property for partition and some heirs objected. The RTC ruled for petitioner Francisco Tayco, declared both documents
null and void, ordered the parties to submit a project of partition, denied the claims for moral and exemplary damages, and held that the extrajudicial settlement was simulated to make it appear that Concepcion was the owner so she could use the properties as collateral, while the loan intention later failed; the RTC further found the quitclaim void because it derived its purpose and effect from the first document and because Francisco was excluded from its execution. On appeal, the
Court of Appeals reversed the RTC, ruling that the extrajudicial settlement was genuine and duly executed, and declaring the defendants absolute owners of the subject lots, while dismissing the complaint. Petitioner moved for reconsideration, which was denied, hence the petition for review on certiorari under
Rule 45.
Issues:
Whether the
Deed of Extrajudicial Settlement of the Estate of the Deceased Diega Regalado with Confirmation of Sale of Shares could validly divest petitioner Francisco Tayco of his shares in the three (3) parcels of land.
Ruling:
Ratio:
Doctrine: