Title
Caragay-Layno vs. Court of Appeals
Case
G.R. No. 52064
Decision Date
Dec 26, 1984
A 3,732 sqm land dispute arose when Juliana Caragay-Layno claimed ownership, alleging fraudulent inclusion in Mariano De Vera’s title. The Supreme Court ruled in her favor, citing 45 years of undisturbed possession, laches, and erroneous title inclusion, ordering reconveyance.
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Case Summary (G.R. No. 52064)

Case Background

  • Parties Involved: Juliana Caragay-Layno and Benito Layno (Petitioners) vs. Salvador Estrada (Administrator of the Estate of Mariano de Vera) (Respondents).
  • Judicial History: The Court of Appeals affirmed the decision of the Court of First Instance of Pangasinan, granting possession of a disputed land parcel to the respondent, prompting the petitioners to appeal.

Disputed Property Description

  • Property Details:
    • Area: 3,732 square meters within a larger parcel of 8,752 square meters.
    • Location: Calasiao, Pangasinan.
    • Title: Covered by Original Certificate of Title No. 63 issued to Mariano de Vera in 1947.

Claim and Defense

  • Petitioners' Claim:

    • Juliana Caragay-Layno asserts ownership based on prior possession by her deceased father, Juan Caragay.
    • Claims an implied or constructive trust due to alleged fraudulent inclusion of the disputed portion in the title.
  • Respondent's Position:

    • Salvador Estrada contends that the land is registered in the name of the deceased and demands its recovery.

Judicial Findings

  • Possession Evidence:

    • Juliana and her father possessed the land openly for over 45 years, declaring it under tax records since 1921.
    • Estrada's claim arose in 1966, indicating a lack of prior adverse possession by the estate of Mariano de Vera.
  • Legal Principle of Laches:

    • The court noted that the estate had not asserted rights over the disputed land during the deceased's lifetime, constituting laches.

Court's Ruling

  • Reversal of Previous Judgment:

    • The Supreme Court reversed the lower court's decision, ordering the segregation and reconveyance of the disputed portion to Juliana.
  • Key Findings:

    • The inclusion of the disputed area in the title was deemed erroneous.
    • The equitable doctrine allows for reconveyance when property is wrongfully registered.

Prescription and Right to Action

  • Imprescriptibility of Actions:
    • Juliana's right to seek reconveyance is imprescriptible due to her continuous possession.
    • The statutory period for prescription commenced in 1966 when she was informed of the adverse claim.

Consequences and Orders

  • Court Orders:
    • Salvador Estrada must segregate the disputed portion and reconvey it to Juliana.
    • The Register of Deeds is directed to issue new titles reflecting the adjustments.

Key Takeaways

  • The case underscores the significance of possession and the rights of individuals against claims of titled property.
  • The Supreme Court emphasized that mere possession of a title does not equate to rightful ownership if fraud or error exists.
  • Timeframes for prescription are crucial, with the action for reconveyance being imprescriptible for lawfu
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