Title
Vda. de Rigo vs. Derecho
Case
G.R. No. 159571
Decision Date
Jul 15, 2005
A 1921 pacto de retro sale transferred land ownership; co-ownership ended in 1926. Dolores Rigonan repurchased in 1928, and petitioners’ 65-year adverse possession barred respondents’ 1993 claim due to prescription and laches.

Case Digest (G.R. No. 159571)
Expanded Legal Reasoning Model

Facts:

The controversy involves a parcel of land in Tuburan Sur, Danao City, originally owned by Hilarion Derecho. At his death before World War II, his eight children became co-owners by intestate succession. In 1921, five of the heirs sold the property to Francisco Lacambra under a pacto de retro sale, which allowed a five‐year redemption period. Not all heirs participated in this sale, and when the redemption period lapsed in 1926, Lacambra acquired absolute title. In 1928, Dolores Derecho, one of the heirs, together with her husband Leandro Rigonan, repurchased the land from Lacambra and took possession in their personal capacity, arguing that the co-ownership had effectively terminated with the expiry of the redemption period. Later, Leandro executed an Affidavit of Adjudication naming himself as the sole heir, and his son Teodoro obtained tax declarations—further reinforcing the possession and title. Teodoro subsequently mortgaged and sold the property to Valerio Laude, who took further steps to perfect the title. Decades later, respondents (the remaining heirs, and their successors) filed an action to annul the void contracts and recover their shares, claiming fraud in the earlier transactions. However, the petitioners maintained that their continuous and adverse possession of the property since 1928 had acquired title by prescription and that respondents’ long inaction (over 65 years) barred their claims via both prescription and the equitable doctrine of laches.

Issues:

  • Whether co-ownership among the heirs of Hilarion Derecho subsisted at the time of the 1928 purchase or terminated with the expiry of the redemption period under the pacto de retro sale.
  • Whether an implied trust arose from the repurchase transaction by the Rigonan spouses, thereby obligating them to hold the property partly in trust for the other co-heirs.
  • Whether the respondents’ claims, including the action to annul the fraudulent sale and affidavit, are barred by prescription and/or laches given their prolonged inaction.
  • Whether Petitioner Valerio Laude, having taken notice of the property’s co-ownership status, can be considered a bona fide buyer in good faith.
  • Whether the resolution awarding litigation expenses and attorney’s fees constituted an abuse of discretion, particularly in light of the parties’ respective inactions and the doctrine of laches.
  • Whether the lower court’s ruling on the issue of heirship was erroneous in light of the implications of the co-ownership termination.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.