Title
Calma vs. Lachica, Jr.
Case
G.R. No. 222031
Decision Date
Nov 22, 2017
Petitioner, a good faith buyer, prevails over respondent's unregistered claim due to reliance on clean title under the Torrens system.

Case Summary (G.R. No. 222031)

Factual Antecedents

The conflict began when respondent Atty. Lachica filed a complaint against Ricardo Tolentino and the petitioner, Calma, for the annulment of certain deeds of sale and titles concerning the property in question. Lachica claimed ownership through a sale in 1974 from Ceferino Tolentino, father of Ricardo. Nevertheless, the original deed of sale was reported lost, leading to the execution of a subsequent deed in 1979. This situation was complicated by agreements and actions in which the Tolentinos allegedly exploited Lachica's trust.

Legal Proceedings - Trial Court Rulings

The Regional Trial Court (RTC) found in favor of the respondent, asserting Lachica's rights over the property and recognizing the fraudulent nature of transactions that transpired between Ceferino and Ricardo, and subsequently between Ricardo and Calma. The RTC awarded damages to Lachica due to Ricardo's bad faith. However, it held that Calma was a buyer in good faith and dismissed the complaint against him.

Appellate Court Rulings

On appeal, the Court of Appeals (CA) reversed the RTC decision, arguing both Ricardo and Calma acted in bad faith, which voided their titles. It observed that the adverse claim annotated on the property title should have triggered further investigative actions from Calma before his purchase.

Main Legal Issues

The core issue emerged from conflicting claims of ownership based on sales transactions. Central to this dispute was the determination of who possessed superior rights over the property, given the prior knowledge of adverse claims and the validity of respective titles.

Supreme Court's Ruling

Upon review, the Supreme Court sided with the petitioner, clarifying that Calma was an innocent purchaser for value. The Court reaffirmed the principle that titles registered in the Torrens system are generally deemed secure unless flaws such as actual fraud or defects in the previous title are proven.

The Supreme Court emphasized, referencing Article 1544 of the Civil Code, that Calma’s acquisition, being well-documented and registered, should take precedence, overturning the CA's determinations of bad faith. The Court ruled that Lugo’s status as an innocent purchaser remained un

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