Title
Ong vs. Jariol
Case
G.R. No. L-5922
Decision Date
Oct 18, 1910
Ong claimed conditional sale of mortgaged land; defendants proved unconditional sale via notarized document. SC upheld validity, denied recovery, citing good faith purchasers.

Case Summary (G.R. No. 44970)

Essential Facts of the Case

Ong asserted ownership of the land and claimed that Carloto Jariol y Agana, the initial mortgagee, failed to return it despite his demand for the property's return after he offered to repay the mortgage and improvement costs. Subsequent to the mortgage, Ong discovered that the land was sold by Carloto's son, Alejandro Jariol, to Gregorio Nanaman and then to M.W. Frield. Ong sought damages for the loss of the property and requested the appointment of a receiver to manage the property to prevent further damage during litigation.

Defendants’ Response

The defendants, through amended answers, contended that Ong had unconditionally sold the land to Carloto Jariol in 1906, evidenced by a notarized instrument. They further claimed the land was subsequently sold to Nanaman who, in turn, sold it to Frield. The defense also included a counterclaim for damages resulting from the appointment of a receiver, asserting that it caused loss of possession and use of the property.

Court Proceedings and Initial Judgment

The trial court ruled in favor of the defendants, dismissing Ong’s complaint and absolving him from damages while assigning costs to him. Ong filed for a motion for a new trial, which was granted, but the court reaffirmed its prior ruling with minor revisions regarding language in the judgment.

Legal Issues Raised

The central issue revolved around whether the original transaction between Ong and Jariol was a mortgage or a sale with a right of repurchase (pacto de retro). The court found that the original transaction was an absolute sale and that the documents presented by Ong did not support his claim of a reversionary right to the property.

Critical Legal Analysis

Despite Ong's assertion based on the extra-documented private instrument, the court held that the notarial document (Exhibit 1) established a valid transfer of ownership to Jariol. The subsequent transactions by Jariol's heirs were seen as legitimate since they were unaware of Ong's claim based on the private instrument. According to Article 1230 of the Civil Code, a private instrument cannot challenge the rights of third parties regarding public instrume

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