Title
Banaag vs. Bartolome
Case
G.R. No. 76245
Decision Date
Dec 20, 1991
A 1949 property sale for P1.00 was annulled as simulated; conjugal assets were divided among heirs, including extramarital children.

Case Summary (G.R. No. 188708)

Antecedent Facts

Ildefonso Bartolome and Adelaida Jaro, a married couple and the original owners of the disputed property, sold the property to their daughter, Rosaura Bartolome, for a nominal fee in a deed dated December 31, 1949. This sale was later declared null and void by the Regional Trial Court on the grounds of being simulated. The case stemmed from events where Rosaura subsequently sold portions of the property while acting as guardian for her mother, Adelaida, who was declared incompetent.

Lower Court Rulings

On August 30, 1979, the Regional Trial Court ruled that the deed of sale was simulated and nullified it, thereby redistributing the property among Ildefonso Bartolome's children, including the plaintiffs born of his extramarital relationship. This decision was affirmed by the Intermediate Appellate Court which highlighted the fictitious nature of the sale price and the absence of real consideration, thus justifying the lower court's findings.

Grounds for Appeal

Petitioners raised several issues in their appeal to the Intermediate Appellate Court, including the argument that the trial court erred in nullifying the deed of sale and that prior rulings related to property rights had been disrupted. They also contended that the trial court had confirmed the plaintiffs as children of Ildefonso Bartolome without appropriate procedural requests from them.

Intermediate Appellate Court Findings

The Intermediate Appellate Court upheld the trial court's determination, emphasizing that the validity of the deed of sale had not been previously litigated, thus allowing the current court to review its legitimacy. It ruled that the sale's terms were grossly inadequate, and consequently, declared the deed of sale null and void. Additionally, it found that the house constructed on the property was indeed conjugal property, reaffirming the trial court's findings concerning marital property rights.

Supreme Court Decision

In the resulting appeal to the Supreme Court, the Court dismissed the petition, confirming the findings of the Appellate Court. It reasoned that issues regarding the deed of sale had not been addressed in previous litigation as the private respondents were not parties in that case, thereby maintaining that the current decision held no adverse effects on them. The Supreme Court also clarified that the ackno

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