Title
Adaza vs. Court of Appeals
Case
G.R. No. L-47354
Decision Date
Mar 21, 1989
Victor Adaza, Sr. donated land to daughter Violeta; Horacio claimed co-ownership via a waiver. Supreme Court upheld waiver, finding an implied trust and co-ownership.

Case Summary (G.R. No. L-47354)

Applicable Law

The decision is governed by the 1987 Philippine Constitution and relevant provisions of the Civil Code, specifically relating to donations, co-ownership, and implied trusts.

Factual Background

Victor Adaza, Sr. executed a Deed of Donation in June 1953, gifting a parcel of land to his daughter Violeta, who was single at the time. The land, which had been cultivated by Victor, was officially titled to Violeta in 1960. Subsequently, Violeta and her husband financed a loan with the property as collateral, maintaining express ownership while her brother Horacio was involved in its management.

Deed of Waiver Execution

In 1971, during a family gathering, Horacio persuaded Violeta to sign a Deed of Waiver, which acknowledged their co-ownership of the land despite Violeta's sole name on the title. The deed included terms transferring part of the property to Horacio. Violeta later contested this agreement, claiming it was signed under duress.

Legal Proceedings and Initial Ruling

Violeta and Lino Amor filed a complaint seeking annulment of the Deed of Waiver, citing fraud and undue influence. In response, Horacio asserted their co-ownership based on the family's intent and the Deed of Waiver’s provisions. The trial court upheld the validity of the Deed of Waiver, confirming that Horacio was entitled to half of the land.

Court of Appeals Decision

On appeal, the Court of Appeals reversed the trial court's decision. It ruled that the Deed of Waiver lacked consideration, deeming the gift to Violeta to be unconditional, thus voiding the waiver. The appellate court's ruling suggested that the intention behind the donation had been misinterpreted, focusing on the formality of the Deed of Donation and the procedural requirements under the Civil Code.

Supreme Court Review

The petitioners contended that the appellate court misconstrued the intent of the original donation. The Supreme Court posited that the true intent of Victor Adaza was to create co-ownership between Horacio and Violeta. Thus, the Deed of Waiver was affirmed as valid, reflecting the parent’s intent and creating an implied trust under Article 1449 of the Civil Code.

Findings of the Court

The Supreme Court emphasized the critical nature of the intent behind the Deed of Donation and acknowledged that Violeta’s acknowledgment in the Deed of Waiver constituted an admission of co-ownership. Both courts recognized that the relationship between the siblings extended beyond mere legalities and involved familial trust and expectations.

Laches and Prescription

Respondents a

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