Title
Ten Forty Realty and Development Corp. vs. Cruz
Case
G.R. No. 151212
Decision Date
Sep 10, 2003
A corporation's claim to a property was denied as it failed to prove possession by tolerance; respondent's prior possession and the corporation's disqualification from owning public land were upheld.

Case Summary (G.R. No. 151212)

Applicable Law

This case is governed by the 1987 Philippine Constitution, as the decision date is after 1990. The relevant provisions include the classification of lands of the public domain and the ownership laws under the Civil Code, particularly Articles regarding possession and sale.

Case Background

The case centers around an ejectment suit filed by the petitioner against the respondent, concerning a parcel of land and a residential house located at #71 18th Street, E.B.B. Olongapo City. The petitioner claimed ownership based on a Deed of Absolute Sale from Barbara Galino dated December 5, 1996, stating that they are the rightful owners of the property. In contrast, the respondent contended that the property was public land and argued that she had acquired it through a subsequent sale from Galino in 1998.

Municipal Trial Court Decision

The Municipal Trial Court in Cities (MTCC) ruled in favor of the petitioner, ordering the respondent to vacate the property and pay damages for unlawful possession. The respondent sought relief through appeal, contesting the basis of the initial decision.

Regional Trial Court Appeal

On appeal, the Regional Trial Court (RTC) reversed the MTCC ruling, citing that the respondent's occupancy was not merely tolerated but based on a valid Waiver and Transfer of Possessory Rights and Deed of Sale. The RTC noted that ownership had not been transferred to the petitioner due to a lack of physical possession.

Court of Appeals Ruling

The Court of Appeals upheld the RTC decision, highlighting that the petitioner failed to establish a claim for unlawful detainer. The appellate court stated that the essence of the action should have been forcible entry, wherein the critical factor is prior physical possession, which the petitioner was unable to prove.

Issues Raised by Petitioner

The petitioner submitted three key issues for review:

  1. Claiming the Court of Appeals erred in not recognizing the respondent's occupation as merely tolerated.
  2. Arguing that the case was incorrectly characterized as one of forcible entry instead of unlawful detainer.
  3. Questioning the appellate court's ruling that the respondent's possession indicated ownership.

Court's Ruling

The Supreme Court found no merit in the petition.

First Issue: Alleged Occupation by Tolerance

The Court affirmed that the appellate court did not err in ruling that the petitioner could not demonstrate that the respondent’s possession was initially lawful or tolerated. The Supreme Court reiterated that any allegation of tolerance must be evident from the start of possession. This element was not substantiated in the petitioner’s claim, indicating that the possession was illegal from the outset.

Second Issue: Nature of Case

The Supreme Court clarified the definitions distinguishing forcible entry from unlawful detainer. It reiterated that the case at hand had been characterized incorrectly by the petitioner as unlawful detainer, while the facts pointed to circumstances aligning with forcible entry. The RTC and CA ruled correctly that the case had prescribed.

Third Issue: Alleged Ownership

The appellate court’s decision to assess ownership rights to determine possession was upheld. It was found that both parties asserted ownership, which necessitated examination of this

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