Title
Maquilan vs. Maquilan
Case
G.R. No. 155409
Decision Date
Jun 8, 2007
Married couple’s post-adultery dispute over property division via Compromise Agreement upheld; spouse’s conviction does not forfeit conjugal share.

Case Summary (G.R. No. 155409)

Factual Background

The spouses formerly enjoyed a marital relationship and had one common child, Neil Maquilan. The marital relationship deteriorated when the petitioner discovered that the respondent was having an illicit sexual affair with a third person. The petitioner instituted criminal charges for adultery against the respondent and her paramour.

Criminal Proceedings and Conviction

Both the respondent and her paramour were convicted of adultery. The convictions imposed imprisonment ranging from one year, eight months, minimum of prision correccional, to three years, six months and twenty-one days, medium of prision correccional, as the maximum penalty.

Petition for Declaration of Nullity and Pre-Trial Compromise

While the nullity petition for psychological incapacity under Article 36 of the Family Code was pending, the parties during pre-trial executed a voluntary Compromise Agreement that partially divided conjugal partnership properties. The Compromise Agreement was submitted to the RTC and received judicial approval in the form of a Judgment on Compromise Agreement.

Terms of the Compromise Agreement

The Compromise Agreement provided, inter alia, that PHP 500,000.00 from a joint bank deposit be placed in trust for the common child; the balance of the deposit then standing at PHP 1,318,043.36 be divided equally; the store occupied by the plaintiff be allotted to her while the bodega be allotted to the defendant; the defendant be paid PHP 50,000.00 as his share in store stocks; the motorcycles be divided with the Kawasaki to the plaintiff and the Honda Dream to the defendant; the passenger jeep be allotted to the plaintiff subject to payment of PHP 75,000.00 to the defendant; and that the house and lot be to the common child, with the settlement expressly declared partial and without prejudice to other conjugal properties not mentioned.

Trial Court Proceedings and Omnibus Motion

After judicial approval, the petitioner filed an Omnibus Motion dated January 15, 2002 seeking repudiation of the Compromise Agreement and reconsideration of the Judgment on Compromise Agreement on the ground that his prior counsel did not intelligently and judiciously apprise him of the legal consequences of the settlement. The RTC denied the Omnibus Motion in its Order dated January 21, 2002 and denied the subsequent motion for reconsideration in its Order dated February 7, 2002.

Court of Appeals Proceedings and Ruling

The petitioner sought relief from the Court of Appeals via a petition under Rule 65. The CA dismissed the petition on August 30, 2002. The CA held that conviction for adultery did not automatically disqualify the respondent from sharing conjugal property because the penalty imposed did not carry civil interdiction, that Articles 43 and 63 of the Family Code were inapplicable while the nullity petition remained undecided, that the Compromise Agreement constituted a voluntary separation of property valid under Article 143 of the Family Code and judicially approved, and that the exceptions to the rule that negligence of counsel binds the client were not shown.

Issues Presented to the Supreme Court

The petitioner raised pure questions of law framed as whether a spouse convicted of adultery may share in conjugal partnership property; whether a Compromise Agreement granting such a share is valid; whether a judgment for annulment or legal separation is prerequisite to disqualification; and whether disqualification of a convicted spouse constitutes civil interdiction.

Petitioner's Contentions

The petitioner argued that the Compromise Agreement contravened law and public policy because it purported to allow a spouse convicted of adultery to retain a share of conjugal property in violation of Articles 43(2) and 63 of the Family Code, and that the Compromise Agreement was void under Article 2035 of the Civil Code. The petitioner also argued that the absence of the Solicitor General or Provincial Prosecutor rendered the proceedings null and that the settlement was timely repudiated due to inadequate advice from counsel.

Respondent's Position and Lower Courts' Findings

The respondent and the lower courts maintained that the Compromise Agreement merely effected a voluntary, partial separation of conjugal properties under Article 143 of the Family Code and that such an agreement was subject to judicial approval and the rights of creditors under Article 136. The lower courts found no collusion or fabrication of evidence that would have required the mandatory intervention of the Solicitor General or Provincial Prosecutor and concluded that the negligence of counsel did not rise to gross negligence or deprivation of due process.

Legal Analysis by the Supreme Court

The Supreme Court affirmed the Court of Appeals with modification. The Court held that the provisions relied upon by the petitioner, including Articles 43 and 63 of the Family Code and Article 2035 of the Civil Code, were inapplicable because the Compromise Agreement did not seek to alter civil status, declare a marriage void, or effect legal separation, but rather partially liquidated and divided conjugal partnership property. The Court reiterated that voluntary separation of property is permitted under Article 143 and that judicial approval validated the parties' agreement subject to the rights of creditors and persons with pecuniary interest.

On Solicitor General and Prosecutor Participation

The Court explained that the presence of the Solicitor General or the prosecuting attorney in annulment or nullity proceedings is intended to prevent collusion and fabrication or suppression of evidence, citing Article 48 of the Family Code and Section 3(e) of Rule 9 of the 1997 Rules of Court. The Court found no exigency for such intervention in this instance because the Compromise Agreement did not

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