Title
Formaran vs. Ong
Case
G.R. No. 186264
Decision Date
Jul 8, 2013
Dispute over land donation led to simulated sale claim; Supreme Court ruled sale void, upheld petitioner's ownership, and ordered respondents to vacate.

Case Summary (G.R. No. 186264)

Summary of the Proceedings

The petitioner filed an action for annulment of a Deed of Sale, claiming that the sale of a portion of land to Respondent Glenda was simulated and without consideration. The Municipal Circuit Trial Court initially ruled in favor of the petitioner, declaring the Deed null and void and reaffirming her ownership. However, Respondents appealed this decision to the Court of Appeals (CA), which eventually reversed the trial court’s ruling, prompting the petitioner to seek redress before the Supreme Court.

Factual Background

The petitioner received the parcel of land from her relatives as a donation and maintained possession and responsibility for tax payments since 1967. She was persuaded by Respondent Glenda to execute a Deed of Absolute Sale in order for the latter to secure a loan. The petitioner contended that this sale lacked any actual consideration and was a mere formality, asserting that the transaction, purportedly executed on August 12, 1967, was never intended to transfer ownership.

Issues Raised in The Case

The primary issue was whether the Deed of Absolute Sale was indeed a simulated contract devoid of legal effect due to lack of consideration. The petitioner argued that there was no true intention to transfer ownership, supported by evidence that she continued to maintain possession and declared the land for taxation purposes under her name until the grievance of the unlawful detainer case arose.

Trial Court's Findings

The Regional Trial Court (RTC) ruled in favor of the petitioner, finding that essential elements indicative of a valid sale were absent, thus categorizing the Deed of Sale as an absolutely simulated contract under Article 1346 of the New Civil Code. The RTC pointed to the absence of consideration, lack of possession by Glenda, and the long duration before the deed was registered as key findings.

Court of Appeals’ Analysis

On appeal, the CA reversed the RTC's decision, asserting that Glenda’s claims regarding the sale’s legitimacy were credible, especially since she had declared the land for taxation and paid realty taxes. The CA emphasized that the notarization of the Deed implied legal regularity, thus supporting the validity of Respondents' claims.

Supreme Court's Ruling

Upon review, the Supreme Court found the CA decision to be based on a misapprehension of facts. The Court reaffirmed the RTC’s position that the sale was indeed simulated, c

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