Title
De Cabauatan vs. Hoo
Case
G.R. No. L-2207
Decision Date
Jan 23, 1951
Plaintiffs sold land to aliens during Japanese occupation; sought annulment post-*Krivenko* ruling. SC dismissed, citing non-retroactivity of Constitution and *in pari delicto* doctrine.
A

Case Summary (G.R. No. L-47806)

Relevant Facts

On March 18, 1943, the plaintiffs sold two parcels of residential land in Manila to Uy Hoo (married to By Siat) and Siy Hong (a widow) for a consideration of P3,000 in Japanese war notes. Subsequently, Transfer Certificate of Title No. 63967 was canceled, and Transfer Certificate of Title No. 69938 was issued in the purchasers’ names. Following a significant legal ruling in 1947, based on Krivenko v. Register of Deeds, which established that a conveyance of residential land to aliens contravenes Section 5, Article XIII of the 1935 Constitution, the plaintiffs sought to annul the sale, invoking the nullity of their earlier transaction.

Procedural History

On December 15, 1947, after the Krivenko ruling, the plaintiffs demanded the restoration of the properties from the defendants, claiming that the sale was null and void. The defendants filed a motion to dismiss the case on January 27, 1948, asserting that the complaint lacked sufficient cause of action. The lower court dismissed the case on February 10, 1948, asserting that recovery of the lands should align with corresponding legislative measures due to constitutional provisions regarding alien ownership of land.

Legal Issues and Arguments

The core issue hinges upon whether the sale executed in 1943 can be declared null and void based on the findings in the Krivenko case. The defendants argued that the occupation period, during which the transaction occurred, did not allow the contemporary Constitution to apply due to its political nature, therefore exempting the transaction from immediate legal scrutiny under the then-existing constitutional provisions. The plaintiffs countered this by insisting that the sale violated constitutional prohibitions on alien ownership, which should enable them to annul the sale post facto.

Court's Analysis

The court upheld the dismissal, concluding that the Constitution was not in force at the time of the transaction due to the Japanese occupation, preventing the plaintiffs from invoking it to void the sale. It referred to the principle of post liminium, establishing that constitutional protections operate prospectively, and absent explicit retrospection, cannot be applied to past actions. Additionally, the court referenced the proclamation by the Commander in Chief of the Imperial Japanese Forces, which reinstated pre-war laws, thereby affirming that the 1889 Spanish Civil Code remained applicable.

Conclusion on Contractual Validity

The court further clarified that even if the plaintiffs could rely on the Krivenko ruling, the sale’s validity was subject to the principles governing contracts during its execution. The articles of the Civil Code assert that if both parties ar

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