Case Summary (G.R. No. 137287)
Background and Facts
Virginia P. Viado died intestate in 1982, and her share in the conjugal property, including the Isarog property, was inherited by her surviving spouse Julian Viado and their children: Nilo Viado, Leah Viado Jacobs, Rebecca Viado, and Delia Viado. Julian Viado died in 1985. Petitioners and respondents resided together on the property since 1977. Tensions arose when petitioners requested the property to be partitioned between the two families due to growing children, leading respondents to claim absolute ownership and demand that petitioners vacate. Subsequently, petitioners filed a case for partition in 1988.
Claims of Respondents and Petitioners
Respondents based their claim on two primary documents: (1) a deed of donation executed by Julian Viado donating his half conjugal share to Nilo Viado, and (2) a deed of extrajudicial settlement where Julian Viado, Leah Viado Jacobs (through a power of attorney), and Rebecca Viado waived their rights over Virginia Viado’s inherited share in favor of Nilo Viado. Both documents were executed on August 26, 1983, but registered only on January 7, 1988. The registration resulted in the cancellation of the original Transfer Certificate of Title No. 42682 and issuance of a new TCT No. 373646 in favor of Nilo Viado’s heirs.
Petitioners challenged the validity of these instruments, alleging forgery, undue influence, and fraud, particularly accusing Nilo Viado of coercion. Rebecca Viado specifically claimed she was deceived into signing the extrajudicial settlement and raised the issue that Delia Viado, an alleged retardate, was excluded from the settlement, constituting preterition and warranting annulment. They also questioned the delay in registration of the documents, noting the deaths of parties to the documents prior to registration.
Ruling of Trial and Appellate Courts
The Regional Trial Court of Quezon City upheld the respondents’ ownership and denied the petitioners’ claims. The Court of Appeals affirmed the trial court's ruling but ordered the remand of the case to establish the value of the property and determine the amount due to Delia Viado for her preterition in the extrajudicial settlement.
Supreme Court Analysis: Application of the 1987 Philippine Constitution and Civil Code
The Supreme Court cited the applicable laws governing succession, co-ownership, and property rights under the 1987 Philippine Constitution and Civil Code:
- Upon Virginia Viado’s death, her conjugal property share vested immediately to her heirs under co-ownership among Julian Viado and their children (Articles 484 and relevant Civil Code provisions).
- The property remained co-owned until partition, regardless of the labels of documents purporting sale, donation, or extrajudicial settlement, as per jurisprudence on partitions.
- The deeds relied upon by respondents consolidated the ownership under Nilo Viado but their validity was contested by petitioners on grounds of fraud, forgery, undue influence, and preterition.
The Court emphasized that these claims boiled down to factual determinations, which were resolved by the trial and appellate courts after evaluating the evidence. The petitioners’ accusations were largely self-serving and lacked substantial proof or detailed explanation on how the alleged vices were committed. The Court held that Julian Viado was competent to execute the deeds, and Rebecca Viado, a teacher by profession, could not have reasonably misunderstood the settlement instrument’s nature.
Effect of Late Registration of Documents
The five-year delay in registration did not affect the validity of the instruments between the parties. Registration is a ministerial act which only serves to provide constructive notice to third parties; thus, the deeds retained binding effect among the involved parties despite late registration.
Preterition of Delia Viado and Its Legal Consequences
The exclusion of Delia Viado, alleged to be a retardate, from the extrajudicial settlement resulted in preterition — the omission of an heir in the testamentary or intestate disposition of an estate. However, in the absence of fraud or bad faith, such preterition does not justify annulment or rescission of the partition agreement or Transfer Certificate of Title No. 373646. Instead, under Article 1104 of the Civil Code, the proper remedy is monetary compensation equivalent to the share to which De
Case Syllabus (G.R. No. 137287)
Case Background and Facts
- The case arises from a property dispute involving a house and lot located at 147 Isarog Street, La Loma, Quezon City, covered by Transfer Certificate of Title No. 42682.
- The original owners of the property were spouses Julian C. Viado and Virginia P. Viado.
- Virginia P. Viado died on October 20, 1982, and Julian C. Viado died on November 15, 1985.
- Their surviving children were Nilo Viado, Leah Viado Jacobs, Rebecca Viado (married to Jose Non), and Delia Viado.
- Both Nilo Viado and Leah Viado Jacobs died on April 22, 1987.
- Nilo Viado’s sole heirs are respondents Alicia Viado (wife), and their children Cherri Viado and Fe Fides Viado.
- Petitioners and respondents shared a common residence at the Isarog property since 1977.
- Tensions arose after petitioner Rebecca Viado requested an equal division of the property for their growing families.
- Respondents claimed absolute ownership and demanded the petitioners vacate.
- On February 1, 1988, petitioners filed a partition case with the Quezon City RTC, Branch 93, asserting co-ownership.
- Respondents relied on two key documents: a deed of donation executed by Julian Viado donating his half conjugal share to Nilo Viado, and a deed of extrajudicial settlement where Leah Viado Jacobs, Julian Viado, and Rebecca Viado waived their rights to Nilo Viado’s favor.
- Both instruments were executed on August 26, 1983, but registered only on January 7, 1988.
- The registration led to cancellation of the original Transfer Certificate of Title No. 42682 and issuance of new Title No. 373646 in favor of Nilo Viado’s heirs.
- Petitioners challenged the validity of the documents alleging forgery, undue influence, and fraud, and highlighted the delayed registration after the deaths of signatories.
- Petitioner Rebecca Viado also claimed fraud in procuring her signature and argued that her sister Delia Viado’s exclusion from the extrajudicial settlement was a case of preterition warranting annulment.
Trial and Appellate Court Decisions
- The Regional Trial Court ruled in favor of respondents, declaring Alicia Viado and her children as the true owners.
- The Court of Appeals affirmed the trial court decision with modification.
- The appellate court ordered remand of the case to determine the property’s value and to assess the amount respondents should pay petitioner Delia Viado due to her preterition.
- The Court of Appeals found petitioners’ evidence largely self-serving and insufficient to prove forgery, undue influence, or fraud.
- The Court noted lack of clear demonstration on how undue influence or fraud was employed by Nilo Viado.
- Considering Rebecca Viado’s profession as a teacher, the Court found her claim of misunderstanding the extrajudicial settlement document unlikely.
- The delayed registration of the deeds was held as a mi