Title
Artates vs. Urbi
Case
G.R. No. L-29421
Decision Date
Jan 30, 1971
Homestead granted to plaintiffs was sold to satisfy a civil judgment for damages from a crime. SC ruled sale void under Public Land Law, protecting homestead from debts within 5 years. Fraudulent resale annulled; plaintiffs regained land but owed reimbursement.

Case Summary (G.R. No. L-29421)

Case Background

The couple’s original land patent was issued on September 23, 1952, and registered as Original Certificate of Title No. P-572. Following a judgment in 1962 against Lino Artates, the Provincial Sheriff of Cagayan conducted an execution sale of the homestead to satisfy the awarded judgment debt of P1,476.35. The plaintiffs contested this sale, asserting that the homestead, under the Public Land Law, was exempt from execution for debts incurred within five years from the issuance of the patent.

Claims of the Plaintiffs

The plaintiffs argued that the execution sale violated Section 118 of the Public Land Law, which precludes the alienation or encumbrance of homesteads for a period of five years. They further claimed the sale to Urbi amounted to a fraudulent design as Urbi had also sold the same parcel to Crisanto Soliven before the execution. Consequently, they sought to annul both the execution sale and the deed of sale involving Soliven, recover possession of the property, and seek compensatory damages.

Lower Court's Judgement

The trial court upheld the validity of the sheriff's execution sale. However, it declared the subsequent deed of sale from Urbi to Soliven as simulated, thus nullifying that transaction. The court mandated that Urbi reconvey the property to Artates and Pojas, conditional on their payment of the debt owed to Urbi and related expenses.

Legal Provisions Considered

Section 118 of the Public Land Law prohibits any encumbrance or alienation of homesteads for five years following issuance of the patent, establishing protective measures for homesteaders against losing their lands due to liabilities incurred during that time. The law aims to ensure stability and support for families settling on public lands.

Appeal and Legal Analysis

The appellants appealed against the lower court's judgement regarding the execution sale, centering their arguments on the legal protections afforded by Section 118. The law distinctly states that homesteads cannot be subjected to satisfy debts contracted within the specified timeframe, irrespective of whether the sale was voluntary or executed under judicial proceedings.

The ruling affirms that any debt contracted during the exempt period renders any alienation or execution sale null and void. This is intended to sustain the homesteader's rights and ensure the protection of families who have been granted land by the State. The provision also extends to extra-contractual obligations incurred during the same period, supporting the argument that even debts arising from torts or crimes should not affect the homestead’s immunity.

Final Ruling

The Supreme Court ultimately reversed the lower court's decision, ruling that the execution sale of the homestead was null and void. The appellants were granted the return of possession of their property while s

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