Title
Ting Ho, Jr. vs. Teng Gui
Case
G.R. No. 130115
Decision Date
Jul 16, 2008
Siblings dispute ownership of properties due to father's Chinese citizenship; SC rules lot validly owned by respondent, buildings part of estate.

Case Summary (G.R. No. 130115)

Background of the Dispute

The controversy involves a 774-square meter commercial lot located at Nos. 16 and 18 Afable St., East Bajac-Bajac, Olongapo City, claimed by the petitioners to belong to their deceased father, Felix Ting Ho, who died intestate on June 26, 1970. The estate includes commercial and residential buildings, a hotel operated by Vicente Teng Gui, and a former bakery. The petitioners contend that these properties are in trust for their deceased father's benefit, as he, a Chinese citizen, was disqualified from owning public lands in the Philippines.

Respondent's Claims

Vicente Teng Gui contested the petitioners' claims, asserting that Felix Ting Ho had sold the properties to various individuals in 1958 and 1961 before acquiring them himself. He maintains that he has been the rightful owner since receiving the Original Certificate of Title No. P-1064 issued on January 24, 1978, under a miscellaneous sales patent.

Trial Court Findings

The Regional Trial Court (RTC) found that Felix Ting Ho, to circumvent prohibitions on land ownership due to his citizenship status, engaged in simulated transactions to shield the property within the family. These transactions included sales to family members that were executed without consideration and were deemed to be in trust for the family’s benefit. The RTC awarded a 6/10 share to Vicente Teng Gui and divided the remaining shares among the petitioners.

Appellate Court Ruling

The Court of Appeals (CA) reversed the RTC's decision, concluding that Felix Ting Ho could not claim ownership of the land due to his status as a Chinese citizen. It reinforced that Vicente Teng Gui was the rightful owner based on his legitimate acquisition of the land through the sales patent granted by the government after Felix Ting Ho's death.

Legal Provisions

The CA relied on Article XIII, Section 1 of the 1935 Philippine Constitution, which prohibits non-Filipino citizens from owning lands of the public domain. The court affirmed that the properties should not form part of Felix Ting Ho’s estate, given the constitutional restrictions, thus confirming Vicente Teng Gui’s title.

Discussion of Implied Trust and Equity

The petitioners argued for an implied trust based on equity principles; however, the appellate court found this inapplicable, emphasizing that the constitutional prohibition on land ownership by aliens is absolute. Consequently, any claims or implied trusts arising from transactions designed to evade this prohibition are not valid.

Final Determination on Improvements

While the

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