A.M. No. P-13-3171 - IN RE: Sales

Case Summary (A.M. No. P-13-3171)

Factual Background

Dr. Emilio Pascual died intestate on November 18, 1972, survived by his sister Ursula D. Pascual and the descendants of his deceased sisters, including Ruperto Reyes, Pedro Dalusong, and others who, on December 3, 1973, commenced Special Proceedings No. 73-30-M in the Court of First Instance of Pampanga for administration of the estate. Atty. Marcela Macapagal was initially appointed special administratrix and later replaced by Reynaldo C. San Juan as special administrator. On February 12, 1976, Ursula D. Pascual moved to exclude certain properties from the estate inventory, alleging that Dr. Pascual had executed a deed of donation dated November 2, 1966 described as mortis causa in her favor.

Order of August 1, 1976 and Temporary Restraining Order

On August 1, 1976, the probate court ordered the exclusion from the estate inventory of the properties claimed by Ursula D. Pascual, directing the special administrator to return the corresponding certificates of title to the court and expressly stating that the exclusion was “without prejudice to its final determination in a separate action.” The Supreme Court issued a temporary restraining order on January 5, 1977 enjoining enforcement of the August 1, 1976 order.

Transactions Concerning the Tondo Property

Among the properties claimed by Ursula D. Pascual was Lot 24, Block 15, PSD-3231, at 1109–1111 R. Papa St., Tondo, Manila, evidenced by Transfer Certificate of Title No. 17854. On May 15, 1969, Dr. Pascual executed a deed of donation in favor of Ofelia D. Parungao, then a minor, which the records characterize as inter vivos. When Ofelia D. Parungao sought registration upon reaching majority, she discovered the title missing and filed a petition for reconstitution in the Court of First Instance of Manila, which was granted in October 1977; the Register of Deeds thereafter cancelled TCT No. 17854 and issued TCT No. 129092 in the name of Ofelia D. Parungao.

Competing Transfers, Civil Suits, and Trial Court Ruling

While registration and probate disputes proceeded, Ursula D. Pascual executed an absolute sale of the Tondo property on September 23, 1976 in favor of several persons surnamed Reyes. On May 2, 1978 Benjamin P. Reyes filed Civil Case No. 115164 in the Court of First Instance of Manila to declare TCT No. 129092 null and for reconveyance, and Ofelia D. Parungao filed Civil Case No. 119359 on November 6, 1978 for recovery of possession against Benjamin P. Reyes and Oscar Reyes; the cases were consolidated. On June 3, 1982 the trial court rendered a joint decision declaring TCT No. 129092 null and void, ordering restoration of TCT No. 17854 in the name of Dr. Emilio Pascual, awarding attorney’s fees of Two Thousand (P2,000.00) Pesos to Benjamin P. Reyes, and otherwise dismissing and disposing of the counterclaims as specified in the decision.

Intermediate Appellate Court and Supreme Court Proceedings

The Intermediate Appellate Court affirmed the trial court decision with costs against the appellant Ofelia D. Parungao and Rosario Duncil, prompting petitions to the Supreme Court filed as G.R. Nos. 73241-42 and G.R. Nos. L-45262 and L-45394. The Supreme Court issued a minute resolution denying one petition on January 29, 1986, which became final and executory upon entry on March 10, 1986; that resolution was later set aside on January 19, 1987 to permit filing of a motion for reconsideration on the ground of nonreceipt by counsel, and the motion for reconsideration was then before the Court.

Issues Presented

The petitions raised two principal issues: (1) whether the probate court had jurisdiction to exclude from the estate inventory properties that a claimant asserted to have received by mortis causa donation, and (2) whether the instrument titled “DONATION MORTIS CAUSA” executed by Dr. Pascual in favor of Ursula D. Pascual was in fact a donation inter vivos or a disposition mortis causa.

Court’s Analysis on Probate Jurisdiction

The Court held that the probate court acted within its jurisdiction in issuing the August 1, 1976 order to exclude the contested properties provisionally from the estate inventory because the order expressly reserved their final adjudication to a separate action; the probate court’s power to determine, for inventory purposes, whether a property should be administered by the estate is settled and such provisional determinations are permissible and nonconclusive. The Court relied on Cuizon v. Ramolete, Morales v. Court First Instance of Cavite, and other authorities to restate the principle that a probate court may not conclusively adjudicate title against outside claimants but may decide only inclusion in the estate inventory subject to full determination in an ordinary action.

Court’s Analysis on the Character of the Donation

Addressing the nature of the instrument titled “DONATION MORTIS CAUSA,” the Court reaffirmed the settled doctrine that the denomination given to a deed does not control;

Case Syllabus (A.M. No. P-13-3171)

Parties and Posture

Ruperto Reyes and Reynaldo C. San Juan, in his capacity as Special Administrator, were petitioners in one consolidated matter challenging a probate-court order.
Pedro Dalusong was petitioner in a separate consolidated petition raising a jurisdictional question concerning the probate court.
Ofelia D. Parungao and Rosario Duncil were petitioners in the related appeals contesting the Intermediate Appellate Court's ruling on title to a parcel in Tondo.
Hon. Lorenzo R. Mosqueda, Judge, Branch VII, Court of First Instance of Pampanga, and Ursula D. Pascual were respondents in the probate-related petitions.
Private respondents included members of the Reyes family who claimed ownership of the Tondo lot and filed the main actions in the Court of First Instance of Manila.
The petitions were consolidated by the Court because they arose from the same facts and raised similar legal issues.

Key Facts

Dr. Emilio D. Pascual died intestate and without issue on November 18, 1972, leaving his sister Ursula D. Pascual and various nephews and nieces as heirs.
The heirs filed Special Proceedings No. 73-30-M in CFI Pampanga for administration of the estate on December 3, 1973.
Atty. Marcela Macapagal was originally appointed Special Administratrix and was later replaced by Reynaldo San Juan.
On February 12, 1976, Ursula D. Pascual moved to exclude certain properties from the inventory on the ground of a purported Donation Mortis Causa executed November 2, 1966.
The probate court issued an order on August 1, 1976 excluding the contested properties from the inventory pending final determination in a separate action.
A temporary restraining order was issued by the Supreme Court on January 5, 1977 enjoining enforcement of the August 1, 1976 order.
Lot 24, Block No. 15, PSD-3231, at R. Papa St., Tondo, Manila, covered by Transfer Certificate of Title No. 17854, was among the properties contested.
On May 15, 1969, Dr. Emilio D. Pascual executed a deed of donation inter vivos of the Tondo lot in favor of Ofelia D. Parungao, then a minor, with Rosario Duncil accepting for her.
Ursula D. Pascual executed a deed of absolute sale of the Tondo property on September 23, 1976 in favor of several Reyes family members.
Benjamin P. Reyes filed Civil Case No. 115164 on May 2, 1978 in CFI Manila for declaration of nullity of TCT No. 129092 and reconveyance, and Ofelia Parungao filed Civil Case No. 119359 on November 6, 1978 for recovery of possession; the two cases were consolidated.
The CFI, Branch 8, on June 3, 1982 declared TCT No. 129092 in the name of Ofelia Parungao null and void, ordered restoration of TCT No. 17854 in the name of Emilio D. Pascual, and awarded attorney's fees.
The Intermediate Appellate Court affirmed the CFI decision and costs were imposed against the appellant, and a motion for reconsideration to the Supreme Court was later denied and subsequently set for reconsideration before final denial.

Procedural History

Special Proceedings No. 73-30-M was commenced in the Court of First Instance of Pampanga to administer the estate of Dr. Emilio D. Pascual.
The probate court issued its August 1, 1976 order excluding certain properties from the inventory subject to final determination in a separate action.
Civil