Case Summary (G.R. No. 196733)
Factual Background and Initial Disposition
After Laureano's death in 1946, Roger asserted that he inherited Lot No. 2560 as part of his estate share and exercised ownership and possession. An oral partition among Laureano and Servanda's children purportedly ceded the property to Roger. Roger mortgaged the land in 1960, redeemed it, and subsequently mortgaged it again. However, his brother Lupo allegedly redeemed the property from Roger's mortgagee and maintained possession with Roger's consent. After Lupo's death and the subsequent deaths of Lupo's wife Asuncion and their child Dominga, possession passed successively to the respondents, who eventually asserted ownership. Roger and his heirs sought recovery through annulment of deeds, possession, and damages.
Petitioners’ and Respondents' Claims
Petitioners maintain that the lot belongs rightfully to them by inheritance from Laureano, supported by an alleged oral partition among Laureano's children and Roger's continuous exercise of ownership. They challenge the respondents’ claim that Servanda, as the surviving spouse, had authority to sell Lot No. 2560 to Benito Coranes with the right of repurchase and that Dominga Jarque acquired ownership by redeeming the property. Petitioners further argue that redemption is not a mode of acquisition of ownership and that respondents’ possession was based on mere tolerance, negating claims of adverse possession.
Respondents contend that Servanda managed Laureano’s properties after his death and validly sold Lot No. 2560 to Benito with a right to repurchase. Dominga redeemed the land within the stipulated time and possessed it as owner, later transferring rights to Lelia Jarque. They also claim ownership by prescription based on continuous possession since 1974.
Applicable Law and Governing Principles
Since Laureano died in 1946, the Old Civil Code of 1889 governs property relations and succession involving the conjugal partnership between Laureano and Servanda. Under this law:
- The default property regime is the conjugal partnership of gains, which includes property acquired during marriage.
- Upon dissolution by death, the surviving spouse is entitled to one-half of the property while the remaining half forms the hereditary estate for forced heirs.
- Servanda is presumed to have the right to one-half as surviving spouse, while Laureano’s children inherit the other half. Servanda is also entitled to usufruct over the share of the legitimate children.
The New Civil Code, effective in 1950, governs subsequent transactions and partitions but does not alter property relations existing prior to its effectivity.
On Ownership and Partition
The Court affirmed the presumption of legal marriage between Laureano and Servanda and recognized the conjugal nature of the property. Importantly, the absence of evidence of any formal partition after Laureano’s death meant that co-ownership between Servanda and the heirs persisted. Servanda thus had no authority to sell Lot No. 2560 in its entirety absent a partition.
However, Roger’s exclusive possession and exercise of ownership over the property after Laureano’s death, including mortgaging and redeeming it, constituted a de facto oral partition. Under jurisprudence, oral partitions can be enforced where there is actual possession and acts of ownership by the respective parties over their portions. Roger’s exclusive acts effectively ended the co-ownership for Lot No. 2560 in his favor, preceding the alleged sale by Servanda.
Therefore, at the time Servanda purportedly executed a sale with right of repurchase in 1972, Roger’s exclusive ownership was already established, rendering Servanda’s unilateral sale void as to the whole property.
On Co-ownership and Alienation
In cases where co-ownership subsists, a co-owner may only alienate or mortgage their undivided share, which is an abstract or ideal portion of the property. The co-owner has no right to dispose of the whole property to the exclusion of others without partition. Servanda’s purported sale could only cover her undivided share, not the entire Lot No. 2560. No evidence showed a transfer of even her undivided share to Benito.
On Redemption and Acquisition of Ownership
The sale to Benito included a right of repurchase within two years (pacto de retro). Redemption, or repurchase, is governed by Articles 1601 and 1616 of the New Civil Code and is distinct from legal redemption under Article 1620 applicable to co-owners.
The right of repurchase vests in the original vendor or their successors, not in third parties. While the original owner may transfer this right, evidence failed to establish that Servanda transferred her right of repurchase to Dominga. The sole proof offered was Dominga’s 1991 Ratification of Ownership, executed many years after the deaths of Servanda and Dominga, which failed to substantiate the transfer of ownership.
If Dominga redeemed the property, she only restored ownership to Servanda's share, possibly acting as Servanda’s agent or as a third party paying on Servanda's behalf. Redemption by a third party grants only a lien, not ownership.
On Prescription and Possession
Respondents claim ownership by prescription, alleging continuous possession since 1974. Acquisitive prescription under Philippine law requires possession to be public, peaceful, continuous, and in the concept of owner (in good faith with just title for ordinary prescription of 10 years or adverse possession for extraordinary prescription of 30 years).
The trial courts found respondents' possession to be tolerated and in bad faith, not adverse or in the concept of owner. Roger and his heirs repeatedly asserted ownership and offered to redeem the property, negating uninterrupted adverse possession. Thus, both ordinar
Case Syllabus (G.R. No. 196733)
Case Background and Procedural History
- This case involves a petition for review on certiorari under Rule 45 of the Revised Rules of Court filed by the heirs of Roger Jarque (petitioners).
- Petitioners seek to nullify the Court of Appeals (CA) September 7, 2010 Decision and April 12, 2011 Resolution in CA-G.R. SP No. 110989.
- The CA had reversed prior favorable rulings from the Regional Trial Court (RTC), Branch 52, Sorsogon City, and the 1st Municipal Circuit Trial Court (MCTC), Casiguran, Sorsogon.
- The primary issue involves the ownership of an unregistered parcel of land known as Lot No. 2560 situated at Boton, Casiguran, Sorsogon.
- The land was declared under the name of the deceased Laureano Jarque, whose heirs include litigants from both sides.
Parties and Their Claims
- Petitioners are the heirs of Roger Jarque, claiming ownership and possession as legitimate successors of Laureano’s estate.
- Respondents are living children of Lupo, Roger’s brother, and contest petitioners’ claims.
- Petitioners maintain that Roger inherited Lot No. 2560 and exercised ownership since Laureano’s death in 1946.
- Respondents claim that Servanda Hagos, Laureano’s widow, sold Lot No. 2560 to Benito Coranes with a right to repurchase, which was later exercised by Dominga, Servanda’s granddaughter.
- The case features multiple transfers, mortgages, and redemption transactions involving the property.
Facts Relating to Ownership and Possession
- Laureano and Servanda were married and had four children including Roger and Lupo.
- No formal partition of Laureano’s estate was documented; an oral partition allegedly ceded Lot No. 2560 to Roger.
- Roger mortgaged the property twice, with redemption by family members before the expiration of redemption periods.
- Despite multiple requests by Roger and his heirs to reclaim possession, respondents and predecessors held possession continuously.
- Respondents evidenced possession via tax declarations and ratification documents executed decades after Servanda’s death.
- Petitioners filed a complaint for annulment of deeds, recovery of ownership and possession, accounting, and damages.
Trial Court Findings and Decisions
- The MCTC declared petitioners as rightful owners and possessors of Lot No. 2560.
- The court found redemption is not a mode of acquiring ownership; no valid instrument conveyed title to Dominga.
- Respondents’ possession was by mere tolerance and therefore could not ripen into ownership by prescription.
- Ratification of ownership and waivers in favor of respondents were annulled.
- The court awarded moral damages, exemplary damages, attorney’s fees, and stipulated payment of P950 plus interest.
- The RTC affirmed the MCTC’s findings and rulings.
Court of Appeals Decision
- The CA reversed the RTC and MCTC, holding that under the Spanish Civil Code of 1889 (Old Civil Code), Servanda, as Laureano’s widow, owned one-half of the conjugal partnership estate.
- It ruled Servanda validly sold the property with a right to repurchase to Benito.
- Dominga was found to have rightfully redeemed the property and acquired ownership.
- The CA rejected petitioners' claim of oral partition and found no evidence supporting it.
- The CA did not rule on prescription but emphasized title passed through redemption under pacto de retro.
Issues on Appeal and Arguments by Petitioners
- Petitioner’s main con