Title
Heirs of De la Cruz y Gutierrez vs. Court of Appeals
Case
G.R. No. 76590
Decision Date
Feb 26, 1990
Heirs of Maria de la Cruz y Gutierrez sought reconveyance of a 1,980 sqm lot in Porac, Pampanga, claiming an express trust. SC ruled in their favor, reinstating trial court's decision, finding no prescription or fraud.

Case Summary (G.R. No. 132922)

Background and Procedural History

Maria de la Cruz y Gutierrez resided on the disputed lot from 1921 until her death in 1951, declaring the property in her name for tax purposes. After her passing, the administration of the lot was entrusted to her niece, Maria de la Cruz y Guevarra. The controversy escalated when a cadastral proceeding was conducted, leading to Lot 1488 being registered under the names of Maria de la Cruz y Guevarra and her brother, Fermin dela Cruz, despite the claim that it should have rightfully belonged to the heirs of Maria de la Cruz y Gutierrez.

The petitioners filed a complaint for reconveyance with the Court of First Instance of Pampanga in 1974, alleging that the land should have been registered in the name of their predecessor. The trial court ruled in favor of the petitioners, ordering reconveyance. This decision was appealed by the respondents, leading to a reversal by the Intermediate Appellate Court.

Legal Issues Raised

The main legal issues presented for consideration include:

  1. The validity of the handwriting on the answer filed by Maria de la Cruz y Gutierrez during the cadastral proceedings.
  2. The proper payment of land taxes by the heirs of Maria de la Cruz y Gutierrez.
  3. The claim of actual possession of the lot by Maria de la Cruz y Gutierrez until her death.
  4. Whether any fraud was committed in securing Original Certificate of Title No. 16684.

Trial Court Decision

The trial court found in favor of the petitioners, ordering the defendants to reconvey the disputed lot, acknowledging that the registration was faulty and that the rightful ownership remained with the heirs of Maria de la Cruz y Gutierrez. The trial court also detailed the procedures for the division of the property and addressed the payment of estate and inheritance taxes.

Intermediate Appellate Court Ruling

On appeal, the Intermediate Appellate Court dismissed the petitioners' complaint, labeling their action as based on an implied trust and ruling that the action had prescribed. The court also found that the petitioners were guilty of laches, which refers to an unreasonable delay in pursuing a legal right.

Supreme Court’s Analysis

Upon review, the Supreme Court highlighted that the petitioners' claim should be evaluated based on the definition of express trust rather than implied trust, as argued by the respondents. The Court emphasized that express trusts can arise without a formal writing, as evidenced by the circumstances surrounding the actions of Maria de la Cruz y Gutierrez and her instruction to her niece.

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