Case Summary (G.R. No. 177099)
Petitioners and Respondents
• Petitioners before the Supreme Court: Eduardo G. Agtarap and Sebastian G. Agtarap.
• Other parties below: Joseph and Teresa Agtarap (grandchildren by Jose), Walter de Santos (representing Gloria), Abelardo Dagoro (representing Mercedes), Priscilla Agtarap (widow of Jose), and minor descendants of Milagros.
Key Dates
• September 15, 1994 – Eduardo’s petition for judicial settlement of Joaquin’s estate filed in RTC–Pasay (SP No. 94-4055).
• October 23, 2000 – RTC Order of Partition distributing assets among heirs.
• August 27, 2001 – RTC Resolution granting reconsideration to first-marriage heirs, declaring properties conjugal to Joaquin and Lucia.
• November 21, 2006 – Court of Appeals Decision affirming RTC’s August 27, 2001 Resolution and partition.
• March 27, 2007 – CA Resolution denying motions for reconsideration by Eduardo and Sebastian.
• January 15, 2010 – Death of Sebastian G. Agtarap.
• June 8, 2011 – Final Supreme Court disposition.
Applicable Law
• 1987 Philippine Constitution – basis for jurisdiction and equal protection among heirs.
• Rules of Court, Rule 73, Section 2 – administration and liquidation of conjugal partnership upon death.
• Rules of Court, Rule 90, Section 1 – conditions for distribution of estate residue after payment of debts, expenses, and inheritance tax.
• Civil Code Article 970 – principle of representation in inheritance.
• Torrens system jurisprudence – certificates of title are prima facie evidence, subject to collateral determination among heirs.
Procedural Background
- RTC, Branch 114, Pasay City: Eduardo appointed regular administrator; conducted inventory and accounting; issued October 23, 2000 Order of Partition.
- First-marriage heirs (Joseph, Teresa, Gloria’s representative) moved for reconsideration; RTC’s August 27, 2001 Resolution modified partition to reflect one-half conjugal share from Joaquin’s first marriage to Lucia.
- Eduardo and Sebastian appealed to the CA; CA on November 21, 2006 dismissed appeals, affirmed RTC’s August 27, 2001 Resolution, and detailed distribution scheme for both first and second marriages’ heirs.
- Motions for reconsideration denied March 27, 2007; consolidated petitions for certiorari filed with the Supreme Court.
Issues Presented
- Jurisdiction: whether an intestate court may determine ownership and character of Torrens-titled property.
- Conjugal rights: whether the lots should reflect Lucia’s conjugal share despite later reissuance in the name of Joaquin married to Caridad.
- Legitimacy and representation: challenges to the status of Joseph, Teresa, Walter de Santos, and Abelardo Dagoro as heirs or representatives.
- Collateral attack and res judicata: whether the CA wrongly allowed collateral attack on Torrens titles and ignored prior estate settlement in 1965.
- Precedence of testate over intestate proceedings: separate will of Milagros and its impact on distribution.
Court’s Ruling
- Jurisdictional Scope
– An intestate or probate court has special and limited jurisdiction but may determine ownership and character of estate properties when all claimants are heirs and no third-party rights are affected. 2. Conjugal Share of First Marriage
– Torrens titles annotated to substitute Caridad for Lucia did not extinguish Lucia’s half-share. Conjugal partnership must be liquidated in the estate settlement of Joaquin pursuant to Rule 73, Sec. 2. - Certificates of Title
– Possession of a Torrens title is not an absolute bar to resolving intra-family claims; the term “casado con Caridad Garcia” is descriptive and not conclusive of conjugal property status. - Estate Settlement and Inheritance Tax
– Payment of inheritance tax in 1965 alone did not effect distribution; under Rule 90, Sec. 1, estate distribution occurs only after payment or provision for debts, expenses, widow’s allowance, and taxes. - Legitimacy and Representation
– Sebastian failed to produce clear evidence to exclude Joseph and Teresa; their legitimacy as grandchildren of Joaquin by Jose was admitted or unrefuted.
– Walter de Santos and Abelardo Dagor
Case Syllabus (G.R. No. 177099)
Antecedent Facts
- Joaquin Agtarap died intestate on November 21, 1964 in Pasay City, leaving two parcels of land (TCT Nos. 38254 and 38255) and no known debts.
- Joaquin’s first marriage (to Lucia Garcia Mendietta) produced Jesus (d. s.p.), Milagros (d. 1996), and Jose (d. 1967), the last survived by Gloria (d. 1995; represented by Walter de Santos), Joseph, and Teresa.
- Joaquin’s second marriage (to Caridad Garcia) produced Eduardo, Sebastian (d. 2010), and Mercedes (d. 1984; survived by husband Abelardo Dagoro and daughter Cecile).
- Since April 1994 grandson Joseph had been leasing improvements and collecting P26,000/month; Eduardo petitioned for judicial settlement and appointment as special (later regular) administrator.
Procedural History
- RTC, Branch 114, Pasay City, docketed Special Proceedings No. 94-4055; appointed Eduardo as administrator (Feb 16, 1995).
- Parties submitted partition projects; RTC issued Order of Partition (Oct 23, 2000) distributing net estate (P14,177,500.00) among compulsory heirs.
- RTC Resolution (Aug 27, 2001) granted Joseph’s motion for reconsideration, declared the lots conjugal property of Joaquin and Lucia, and ordered modification of partition.
- Eduardo and Sebastian appealed to the Court of Appeals (CA-G.R. CV No. 73916); CA Decision (Nov 21, 2006) dismissed appeals, affirmed RTC Resolution and repartitioned the two lots and estate.
- Motions for reconsideration denied by CA (Mar 27, 2007); consolidated petitions for review on certiorari filed with the Supreme Court (G.R. Nos. 177099 and 177192).
Issues
- Whether the RTC and CA had jurisdiction to determine ownership and conjugal statu