Title
Yu Bun Guan vs. Ong
Case
G.R. No. 144735
Decision Date
Oct 18, 2001
Married couple dispute over paraphernal property ownership, involving simulated sale, fraudulent title replacement; court declares sale void, affirms wife's sole ownership.
A

Case Digest (G.R. No. L-10609)

Facts:

  • Parties and marriage
    • Yu Bun Guan (petitioner) and Elvira Ong (respondent) were married by Chinese rites on April 30, 1961, and had three children.
    • The couple separated on August 26, 1992, allegedly due to petitioner’s misconduct.
  • Property acquisitions and transactions
    • On March 20, 1968, respondent purchased the J.P. Rizal property with her personal funds; it was registered in her name as TCT No. 26795 on April 17, 1968.
    • In 1983, they jointly acquired a house and lot with conjugal funds, registered as TCT No. 118884 in both their names.
    • On July 24, 1992, respondent “reluctantly” executed a Deed of Absolute Sale of the J.P. Rizal property to petitioner for a stated consideration of ₱200,000, which was never paid; TCT No. 181033 was thereafter issued in petitioner’s name.
    • Respondent withheld the owner’s copy of TCT No. 181033 and paid all taxes and assessments on the property.
    • Petitioner filed in 1993 a petition for replacement of the owner’s copy of TCT No. 181033, alleging loss; an order was granted and a new owner’s copy issued.
    • On November 29, 1993, respondent executed an Affidavit of Adverse Claim and filed suit to annul the 1992 Deed of Sale, cancel TCT No. 181033, and recover damages.
  • Proceedings below
    • The Regional Trial Court of Makati declared the 1992 Deed of Sale void, recognized respondent as owner under TCT No. 217614, ordered cancellation of TCT No. 181033, issuance of a new title in respondent’s name, awarded damages and attorney’s fees, and dismissed petitioner’s counterclaim.
    • The Court of Appeals affirmed the RTC decision and denied petitioner’s motion for new evidence and reconsideration on April 25, 2000 (Decision) and August 31, 2000 (Resolution).
    • Petitioner filed a Rule 45 petition before the Supreme Court seeking review.

Issues:

  • Whether the J.P. Rizal property should be treated as co-owned under Article 144 of the Civil Code given respondent’s use of conjugal funds.
  • Whether the 1992 Deed of Sale was valid or was fictitious, simulated, and inexistent.
  • Whether the doctrine of in pari delicto bars respondent’s claim to annul the 1992 sale.
  • Whether TCT No. 181033 could be cancelled in the absence of proof of actual fraud.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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