Case Summary (A.C. No. 4958)
Petitioner
Virgilio B. Aguilar – co-owner seeking judicial partition by sale, division of proceeds, possession rights, and rental compensation.
Respondent
Senen B. Aguilar – co-owner in possession of the property, resisting partition on petitioner’s claimed terms and refusing to pay rent.
Key Dates
• 28 October 1969 – Purchase of house and lot by both brothers.
• 23 February 1970 – Memorandum equalizing their shares in exchange for mortgage assumption by Senen.
• 1974 – Death of their father.
• 12 January 1979 – Virgilio files action for compulsory sale and partition.
• 26 April 1979 – Scheduled pre-trial; Senen and counsel absent; default declared.
• 26 July 1979 – Default judgment ordering sale, equal division of proceeds, ejectment, and rent award.
• 22 October 1979 – Trial court denies new-trial motion.
• 16 October 1986 – Court of Appeals annuls default orders and judgment.
• 29 October 1993 – Supreme Court decision reinstating trial court judgment with modifications.
Applicable Law
• 1987 Philippine Constitution (effective basis for decisions post-1990).
• Civil Code (Arts. 486, 494, 498) on co-ownership and partition.
• Rules of Court (Sec. 2, Rule 20 on pre-trial defaults).
Factual Background
The brothers purchased the property to provide a home for their father. Originally holding two-thirds (Virgilio) and one-third (Senen), they agreed in writing to equal shares, with Senen assuming the mortgage and caring for their father.
Procedural History
After their father’s death, Virgilio demanded partition by sale, division of proceeds (2/3–1/3), and rent for Senen’s occupation. Senen counterclaimed for equal division and rental exemption. At pre-trial, Senen’s counsel moved to postpone due to a social engagement; the trial court denied it. Neither Senen nor his counsel appeared at pre-trial; default and ex parte evidence presentation followed. The trial court rendered default judgment ordering sale, equal division, ejectment, and P1,200 monthly rent. The Court of Appeals later set aside these orders as unjustified.
Issue I: Default for Failure to Appear at Pre-Trial
Whether the trial court properly denied the postponement motion and validly declared Senen in default for non-appearance at the mandatory pre-trial conference.
Analysis on Pre-Trial Default
Under Rule 20, Sec. 2, parties must attend pre-trial. Failure to appear may lead to default. The postponement motion, based on a social commitment of counsel, fell within the trial court’s discretion—and the court reasonably found the excuse insufficient. Neither Senen nor another representative appeared; thus, the default declaration and authorization for ex parte evidence were proper exercises of discretion.
Issue II: Default Judgment on Merits
Whether the default judgment correctly established equal co-ownership, compelled sale, ordered ejectment, and awarded rent.
Ownership and Partition Rights Under Civil Code
Civil Code Article 494 grants each co‐owner the right to demand partition at any time. When indivisibility prevents physical partition and co-owners cannot agree, Article 498 mandates sale and distribution of proceeds. The written agreement confirmed equal shares. Virgilio’s petition for sale was legally sound; Senen could not prevent it.
Entitlement to Possession and Rent
Before judicial termination of co-ownership, each co-owner may use the entire property without rent, provided no harm to others (Art. 486). Once the trial court ordered partit
Case Syllabus (A.C. No. 4958)
Facts of the Case
- Petitioner Virgilio B. Aguilar and respondent Senen B. Aguilar are brothers and co-owners of a house and lot in Parañaque purchased on October 28, 1969 for their father’s enjoyment.
- Initial agreement granted Virgilio two-thirds interest and Senen one-third; by a written memorandum dated February 23, 1970, they equalized their interests in exchange for Senen assuming the remaining SSS mortgage and holding title temporarily in his name due to Virgilio’s loan disqualification.
- Senen agreed to care for their father while Virgilio and his family resided in Cebu; upon the father’s death in 1974, Virgilio demanded Senen vacate, sell the property, and divide proceeds.
- Senen refused, prompting Virgilio to file on January 12, 1979 an action to compel sale and partition, praying for two-thirds of proceeds, rents from Senen’s occupancy, and one-third to Senen.
Trial Court Proceedings
- Senen answered with counterclaims: no objection to sale at the best price, equal division of proceeds, and right to use the property as co-owner.
- Pre-trial was set for April 26, 1979; both parties’ lawyers were notified; Senen executed a special power of attorney in favor of his counsel.
- On April 20, 1979, Senen’s counsel moved to cancel the pre-trial due to personal travel commitments; on April 23, 1979, the trial court denied the motion as without merit and ordered the pre-trial to proceed.
- At the April 26 pre-trial, plaintiff and counsel appeared; Senen and/or his counsel did not appear; on motion of plaintiff, the court declared Senen in default and allowed petitioner to present evidence ex parte.
- Senen, through counsel, filed on May 7, 1979 an omnibus motion to reconsider the default and defer reception of evidence; the trial court denied the