Title
Spouses Ybiosa vs. Drilon
Case
G.R. No. 212866
Decision Date
Apr 23, 2018
Dispute over Lot 3667 ownership; RTC and CA rulings voided as DAR holds exclusive jurisdiction over CLOA-covered agrarian reform land.
A

Case Summary (G.R. No. 212866)

Factual Antecedents

In 1997, respondent filed a complaint seeking the annulment of a Deed of Absolute Sale executed in favor of the petitioners, claiming ownership of the property based on a prior purchase from Gabriel Drilon. He alleged that the sale to the petitioners was fraudulent, asserting that Gabriel Drilon lacked the capacity to sign the deed due to his advanced age and deteriorating health. The complaint was filed after unsuccessful attempts to resolve the dispute amicably within their familial context. The petitioners defended their position by claiming the sale was valid and the respondent's action was procedurally flawed.

Ruling of the Regional Trial Court

The Dumaguete City Regional Trial Court (RTC) ruled that it lacked jurisdiction to annul the Certificate of Land Ownership Award (CLOA) as such matters fall under the exclusive purview of the Department of Agrarian Reform Adjudication Board (DARAB). The RTC found signs of fraud regarding the signatures on the Deed of Absolute Sale and declared it void. However, it also stated that even if the sale to the respondent had occurred, it would still be rendered void due to the lack of consent from Gabriel Drilon's wife.

Ruling of the Court of Appeals

Upon appeal, the Court of Appeals (CA) partially granted the petitioners' appeal by declaring the Deed of Absolute Sale in their favor as void due to forgery while acknowledging the validity of the sale between Gabriel Drilon and the respondent. The appellate court emphasized that the bureaucratic responsibility for issuing and cancelling CLOAs falls within the jurisdiction of the DAR rather than the RTC, as delineated by agrarian reform laws and administrative rules.

Issues Presented

Petitioners contested the CA's decision by raising issues related to jurisdiction, the prescription of the respondent’s action, and the validation of the sale in favor of the petitioners. The central question related to whether the RTC and, by extension, the CA had the authority under agrarian reform laws to adjudicate issues regarding the CLOA.

Petitioners' Arguments

The petitioners argued that the RTC lacked jurisdiction due to the nature of the respondent's claim, which they asserted should have been taken to the DAR. They maintained that the respondent failed to establish the assessed value of the property in his complaint and that his action had already prescribed. Furthermore, they contended that the deed of sale executed in their favor was valid, contending that the CA's findings of forgery were unfounded.

Respondent's Arguments

The respondent countered that the petitioners were inconsistent in their legal positions and contended that the CA had rightfully acknowledged the invalidity of the deed of sale. Respondent maintained that he was able to substantiate the validity of his claim over the property and sought the denial of the petitioners' plea.

Our Ruling

The Supreme Court granted the petition, emphasizing that the subject property w

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