Case Summary (G.R. No. 179010)
Background of the Case
Elenita and Eduardo Dewara were married prior to the enactment of the Family Code, making the Civil Code applicable to their marital property relations. The couple experienced separation when Elenita relocated to California for work while Eduardo remained in Bacolod City. Eduardo was involved in an accident on January 20, 1985, leading to a criminal case for serious physical injuries filed by Ronnie Lamela, who was struck by a jeep registered under Elenita's name. The Municipal Trial Court found Eduardo guilty, ordering him to pay civil damages.
Execution and Sale of Property
After the sentencing, a writ of execution was issued to collect damages, but it was returned unsatisfied as Eduardo had no property. The City Sheriff, Stenile Alvero, enacted a levy on Lot No. 234-C, owned by Elenita, to satisfy Eduardo's civil liabilities. The lot was sold through a public auction, with only Ronnie expressing interest. Following the auction, a certificate of sale was issued in favor of the Lamela spouses, leading to a court-ordered cancellation of Elenita's title.
Petitioner’s Claim
Elenita, through her legal representative, sought annulment of the sale and damages based on the grounds that Lot No. 234-C was her exclusive property, arguing that it could not be levied for Eduardo's personal debts. She further contended that she was not notified of the execution sale, thus denying her due process.
Respondents’ Argument
The respondents argued that the property in question was part of the conjugal partnership, contending it was acquired during the marriage with funds attributed to Eduardo. They claimed that Elenita did not contest the levy or sale, which implied acceptance of its status as conjugal property.
Regional Trial Court Ruling
The RTC ruled in favor of Elenita, declaring the property as paraphernal and not subject to the execution for Eduardo's personal liabilities. The court established that the property had been inherited and purchased by Elenita before her marriage, rendering it exclusive to her.
Court of Appeals Decision
On appeal, the CA reversed the RTC's decision, contending the property was acquired during the marriage and thus became conjugal. It stated that the presumption of conjugal property prevails unless conclusively rebutted. The CA held that the inadequacies of the sale price did not affect the enforceability of the contract, failing to find convincing evidence of a donation.
Legal Issue for Resolution
The legal question at hand was whether Lot No. 234-C was Elenita's exclusive/paraphernal property or part of the conjugal partnership between Elenita and Eduardo, affecting potential liability for Eduardo’s civil obligations.
Supreme Court Ruling
The Supreme Court reasserted the presumption that all property acquired during marriage is conjugal unless strong evidence of exclusive ownership is provided. The Court emphasized that the separation-in-fact did not negate conjugal property status. As the couple did not enter into a prenuptial agreement and the property was acquired during their marriage, it
...continue readingCase Syllabus (G.R. No. 179010)
Introduction
- This case concerns a petition for review on certiorari under Rule 45 of the Rules of Court.
- The petitioner, Elenita M. Dewara, challenges the Decision dated November 6, 2006, and the Resolution dated July 10, 2007, from the Court of Appeals (CA) in CA-G.R. CV No. 64936.
- The CA's decision reversed the Regional Trial Court (RTC) of Bacolod City’s decision dated September 2, 1999, in Civil Case No. 93-7942.
Facts of the Case
- Elenita and Eduardo Dewara were married before the enactment of the Family Code, thus governed by the Civil Code.
- The couple was separated-in-fact, with Elenita working in California and Eduardo residing in Bacolod City.
- On January 20, 1985, Eduardo, while driving a jeep registered in Elenita's name, was involved in an accident with Ronnie Lamela, leading to a criminal case for serious physical injuries.
- The Municipal Trial Court in Cities (MTCC) convicted Eduardo, sentencing him to imprisonment and ordering him to pay damages.
- The civil liability could not be satisfied from Eduardo’s properties, prompting Ronnie to levy on Lot No. 234-C, registered in Elenita's name.
- The City Sheriff executed a public auction where Ronnie was the only interested buyer, resulting in the sale of the property to him and his wife, Gina.
- The title to the property was subsequently consolidated in the names of Ronnie and Gina Lamela.
Petitioner’s Claims
- Elenita, through her attorney-in-fact Ferdinand Magallanes, filed a case for annulment of the sale and damages, asser