Title
Heirs of Gozo vs. Philippine Union Mission Corp. of the 7th Day Adventist Church
Case
G.R. No. 195990
Decision Date
Aug 5, 2015
Heirs of Gozo contested a 1937 donation of land, claiming it was void as the property was public domain. SC ruled donation invalid, affirming heirs' ownership, citing imprescriptibility and inapplicability of laches.
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Case Summary (G.R. No. 195990)

Background of the Case

The case arises from a petition for review filed by the heirs of Rafael Gozo to challenge the decision of the Court of Appeals which reversed an earlier ruling by the Regional Trial Court (RTC) favoring the petitioners. The RTC had declared that the property in question was owned by the heirs of Rafael Gozo and invalidated a purported Deed of Donation executed in 1937, on the grounds that an essential requisite for validity, acceptance, was lacking.

Facts of the Case

The root of the dispute lies in a Deed of Donation made in 1937, wherein the original owners, the Spouses Gozo, purportedly donated a 5,000 square meter portion of the property to PUMCO. However, when the Spouses Gozo executed the deed, they were not registered owners, and the property at that time was considered part of the inalienable public domain. It was only in 1953 that the land was granted to the Spouses Gozo through a homestead patent, allowing them to obtain an Original Certificate of Title. Concepcion Gozo, a surviving heir, took steps towards a survey and subdivision of the property in 1992, but upon consulting the register of deeds, she discovered that the donation was not annotated on the title, leading to ongoing claims and eventual legal action initiated by the petitioners.

Legal Proceedings

The petitioners filed an action for the declaration of nullity of the donation and for recovery of possession in 2000, claiming that the possession of the respondents was tolerated and that signatures on the donation were forged. In defense, the respondents asserted the validity of the donation and claimed rights over the property due to continuous possession and improvements made on the land.

RTC Decision

In June 2004, the RTC ruled in favor of the petitioners, holding that the Deed of Donation was void due to lack of acceptance, which is essential for the validity of a donation. The RTC determined that the doctrine of laches did not apply since the action to recover possession was based on a registered title which is not susceptible to laches as a basis for adverse claims.

Court of Appeals Ruling

The Court of Appeals, in November 2010, reversed the RTC's decision, applying the doctrine of laches. The appellate court asserted that the petitioners’ inaction over a span of 60 years to claim their rights barred them from recovering possession, despite their registered ownership of the land.

Supreme Court's Ruling

Upon review, the Supreme Court focused on the legal status of the land at the time of the 1937 donation. The Court referenced the Regalian doctrine, highlighting that, at the time the donation was executed, the property was still part of the public domain and could not be voluntarily disposed of by the Spouses Gozo. The Court emphasized that the Deed of Donation, executed when the Spouses Gozo had no proprietary rights over the property, was null and void ab initio.

Implications of the Decision

The Supreme Court ruled t

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