Case Summary (G.R. No. L-15499)
Petitioner and Respondent
Petitioner (Butte) seeks to exercise the legal right of redemption over the one-sixth share sold by co-owner Marie Gamier Vda. de Ramirez to the Respondent (Uy & Sons). Respondent resists on grounds that no such right existed or was timely exercised.
Key Dates
• October 20, 1951: Death of co-owner Jose V. Ramirez.
• December 9, 1958: Sale of Gamier’s 1/6 share to Uy & Sons for ₱500,000; letters of sale and formal notices executed.
• December 15–19, 1958: Vendor’s written notice received and forwarded to Butte.
• January 15, 1959: Butte tenders ₱500,000 and consigns the amount in court; action for legal redemption filed.
• May 13, 1959: Trial court dismisses Butte’s complaint; both parties appeal.
• February 28 and April 23, 1962: Supreme Court decision and subsequent resolution.
Applicable Law under the 1935 Constitution Framework
Civil Code (1950):
• Art. 776–777, 947, 948: Transmission of succession and heirs’ rights at the moment of decedent’s death.
• Art. 1620: Co-owners’ right to redeem another co-owner’s share sold to a third party; price adjustment if grossly excessive.
• Art. 1623: Thirty-day peremptory period to exercise legal redemption from vendor’s written notice, and affidavit requirement for registry.
Succession and Vesting of Co-ownership Rights
By virtue of Articles 776, 777, 947 and 948, heirs of Jose V. Ramirez acquired his undivided one-sixth share immediately upon his death. As co-owners of the entire property, these heirs—including Butte—held the distinct, personal right to redeem any co-owner’s share sold to a stranger. That redemption right did not form part of the decedent’s estate and thus was not affected by the appointment of a judicial administrator.
Right of Legal Redemption and Administrator’s Role
The administrator’s authority to manage decedent’s assets for debt payment does not encompass the co-owners’ independent right of redemption, which arose only upon Gamier’s sale in 1958. Since a dead person cannot acquire new rights posthumously (Art. 42, Civil Code), the redemption privilege vested exclusively in the living heirs, not in the estate under administration.
Timeliness of Redemption Notice and Tender
Under Article 1623, the thirty-day period runs from written notice by the vendor, not the buyer. Mrs. Chambers, as attorney-in-fact for Gamier, sent such notice on December 11, 1958; the administrator received it December 15, and forwarded it to Butte’s counsel on December 16. Excluding December 16 and including January 15, Butte’s tender on January 15, 1959 fell within the statutory thirty days, making her redemption timely.
Allegation of Grossly Excessive Price
Butte contended the ₱500,000 price was grossly excessive. The Court held that mere individual estimates by a single realtor do not establish gross excess under Article 1620. Absent convincing proof, the purchase price stands.
Supreme Court’s Decree
The Supreme Court reversed the trial court, holding:
- Butte properly tendered ₱500,000 within
Case Syllabus (G.R. No. L-15499)
Facts
- Jose V. Ramirez was co-owner of a house and lot in Sta. Cruz, Manila (TCT No. 52789) with five other co-owners, each holding an undivided one-sixth share.
- On October 20, 1951, Jose V. Ramirez died. His estate, including his one-sixth share, was the subject of Special Proceeding No. 15026, with the Bank of the Philippine Islands appointed as judicial administrator due to creditor claims exceeding assets.
- His last will bequeathed the estate to his children and grandchildren, and one-third of the free portion to Angela M. Butte (plaintiff-appellant). The will was admitted to probate, but final distribution remained pending.
- On December 9, 1958, Marie Gamier Vda. de Ramirez sold her undivided one-sixth share to Manuel Uy & Sons, Inc. (defendant-appellee) for ₱500,000.00. An affidavit by her attorney-in-fact, Mrs. Elsa R. Chambers, certified that formal notices of sale had been sent to all possible redemptioners, and the sale was registered with a new title issued.
- That same day, the purchaser sent notice of the sale to the judicial administrator, who forwarded it to Mrs. Butte’s counsel, Delgado, Flores & Macapagal. Mrs. Butte personally received notice on December 11 or 12, 1958.
- Additionally, Mrs. Chambers sent a separate notice on December 11, 1958; this reached the bank on December 15 and Mrs. Butte’s counsel on December 16, and Mrs. Butte on December 19, 1958.
- On January 15, 1959, Mrs. Butte, through counsel, forwarded a letter and a Philippine National Bank cashier’s check for ₱500,000.00 to Manuel Uy & Sons, Inc., tendering payment in redemption of the one-sixth share. Upon refusal, she consigned the amount in court and filed an action for legal redemption and for actual, moral, and exemplary damages.
Procedural History
- Trial was held before the Court of First Instance of Manila.
- On May 13, 1959, the trial court dismissed Mrs. Butte’s complaint, ruling she had no right to redeem or, if she did, that her tender was beyond the 30-day statutory period. The court also dismissed the defendant’s counterclaim for damages.
- Both parties appealed directly to the Supreme Court of the Philippines.
Issues
- Whether Angela M. Butte, as a testamentary heir bequeathed one-third of the free portion of Jose V. Ramirez’s estate, had the right to exercise legal redemption (retracto de comuneros) over the one-sixth share sold by Marie Gamier, notwithstanding the appointment of a judicial administrator and the pending final distribution.
- Whether Mrs.