Title
Mirando vs. Wellington Ty and Bros., Inc.
Case
G.R. No. L-44062
Decision Date
Feb 16, 1978
Squatters relocated to Quezon City lots claimed preferential rights after barter sale; Supreme Court ruled no legal interest, upheld Board of Liquidators' authority.

Case Summary (G.R. No. L-44062)

Factual Background

The petitioners occupied premises at Arellano University in Manila from 1945 to 1950. Following their relocation by municipal authorities to certain parcels of land in Quezon City, nominal rents were paid to the Philippine Board of Liquidators, during which time the petitioners filed applications seeking to purchase the lots they had occupied. In 1964, these lots were sold to Wellington Ty & Bros., Inc. after being bartered for another property. When the new owner demanded that the petitioners vacate, they refused, asserting their rights to the land and subsequently filing a petition for declaratory relief.

Legal Proceedings and Claims

The petitioners subsequently filed a petition for declaratory relief and cancellation of title in the Court of First Instance. They claimed that they were bona fide occupants entitled to a preferential right to purchase the lots based on allegations of fraud and misrepresentation by Wellington Ty & Bros., Inc. The respondent filed motions to dismiss, asserting defenses such as lack of jurisdiction and the indefeasibility of their title under the Land Registration Act.

Decision of the Court

The trial court's findings included affirming the legitimacy of the barter agreement and stating that the petitioners were considered squatters, without any legitimate claim or preferential right over the disputed lots. The appellate court supported the lower court's decision, emphasizing that the argument of preferential right based on R.A. 3348 was without merit, as it came into effect only after the lots had already been sold to Carmen Planas.

Legal Principles and Authority

The ruling referenced various legal provisions, including the Philippine Property Act of 1946, Executive Orders, and R.A. 477, clarifying that the Philippine Board of Liquidators properly conducted the transfer of the property. The court determined that the petitioners had no rights to the properties occupied s

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