Case Summary (G.R. No. L-2362)

Background of the Case

• Filomena Manaois sold a parcel of land to Sotero Esguerra on November 19, 1928, with a right of repurchase within five years.
• Filomena Manaois passed away in 1929, and the land was not repurchased.
• A cadastral proceeding adjudicated a three-fifths portion of the land to Filomena Manaois's heirs, with the remaining two-fifths awarded to Teodora Manaois.
• To compensate for the loss of a portion of lot 2758, the heirs of Filomena Manaois executed an agreement on November 12, 1940, conveying a portion of lot 2761 to Sotero Esguerra.

Legal Proceedings Initiated by Respondents

• Sotero Esguerra and his wife, Rufina Tandoc, filed a complaint against Anisia Aquino and others to recover possession of the conveyed portion and lost rentals.
• The Court of First Instance of Pangasinan dismissed the complaint.
• Upon appeal, the Court of Appeals affirmed the dismissal against some defendants but reversed it concerning Anisia Aquino and the minor heirs, declaring them liable for damages and possession of a portion of lot 2761.

Petitioners' Arguments

• Petitioners contended that the November 12, 1940, agreement was invalid, asserting they were not legally bound to compensate Esguerra for the lost portion of lot 2758.
• They argued that the obligation to warrant the title rested with Filomena Manaois's estate, not her heirs.

Court of Appeals' Ruling on Validity of the Agreement

• The Court of Appeals upheld the validity of the agreement, noting that Anisia and Arnulfo Aquino were of age when they executed it.
• The agreement was deemed beneficial as it prevented potential litigation and relieved the estate from encumbrances.
• The conveyance was recognized as valid and for valuable consideration, consistent with legal principles.

Nature of the Agreement as a Compromise

• The agreement included a clause where Sotero Esguerra waived any claims against the heirs of Filomena Manaois, indicating it functioned as a contract of compromise.
• The Court of Appeals based the petitioners' liability on this agreement, which was aligned with the claims made in the respondents' complaint.

Discrepancies in Area Awarded

• The Court of Appeals awarded the respondents an undivided 3/10 portion of lot 2761, amounting to 21,796.8 square meters.
• This award conflicted with the terms of the November 12, 1940, agreement, which specified a portion equivalent to the two-fifths of lot 2758 lost by Esguerra, calculated to be 10,317.6 square meters.
• The petitioners argued that the respondents should only ...continue reading

Case Syllabus (G.R. No. L-2362)

Case Background

• On November 19, 1928, Filomena Manaois sold a parcel of land to Sotero Esguerra with a right of repurchase exercisable within five years.
• Filomena Manaois died in 1929 without repurchasing the land.
• The land became part of a cadastral proceeding, leading to a Court of Appeals decision on August 5, 1938, which adjudicated three-fifths of the land to the heirs of Filomena Manaois and two-fifths to Teodora Manaois.
• To compensate Sotero Esguerra for the loss of part of lot 2758, Anisia Aquino, Arnulfo Aquino, Romulo Aquino, and Benigno Aquino, heirs of Filomena Manaois, executed an agreement on November 12, 1940, conveying a portion of three-fifths of lot 2761 to Esguerra.

The Agreement of November 12, 1940

• The agreement, Exhibit C, stipulated that the heirs of Filomena Manaois would cede a portion of lot 2761 equivalent to the two-fifths of lot 2758 lost by Esguerra.
• Sotero Esguerra claimed failure to gain possession of this portion, leading to a complaint against Anisia Aquino and her siblings for recovery of possession and damages.

Trial Court Proceedings

• The Court of First Instance of Pangasinan dismissed Esguerra's complaint after trial.
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