Title
Vda. de Rigo vs. Derecho
Case
G.R. No. 159571
Decision Date
Jul 15, 2005
A 1921 pacto de retro sale transferred land ownership; co-ownership ended in 1926. Dolores Rigonan repurchased in 1928, and petitioners’ 65-year adverse possession barred respondents’ 1993 claim due to prescription and laches.

Case Summary (G.R. No. 159571)

Applicable Law

The pertinent legal framework includes principles described in the Spanish Civil Code regarding co-ownership, pacto de retro sales, and the rules of prescription. These legal doctrines dictate the rights and responsibilities of co-owners and the conditions under which ownership rights may be gained or lost through acts such as sale, non-exercise of rights, and delays in asserting claims.

Historical Background of Property Ownership

The pivotal historical events include a pacto de retro sale where five heirs sold the co-owned property to Francisco Lacambra, with a five-year redemption clause. After failing to exercise that right within the specified time frame, these sellers lost their ownership rights. Subsequently, in 1928, Dolores Derecho and her husband, Leandro Rigonan, purchased the land from Lacambra, occupying it continuously for over five decades without opposition.

Trial Court and Court of Appeals Decisions

The Regional Trial Court ruled in favor of the respondents, declaring certain documents (an Affidavit of Adjudication and a Deed of Sale) null and void, and ordered the petitioners to relinquish the property. The Court of Appeals upheld this ruling with modifications, emphasizing that the deed of sale was invalid due to the vendor's lack of legal authority to sell a co-owned property wholly. Furthermore, the appellate court declared that no prescriptive rights applied to the respondents, as they had not formally renounced their shares.

Arguments and Legal Theories

The petitioners contended that the co-ownership had effectively ended when the heirs failed to redeem the property and argued that they rightfully purchased the land as bona fide purchasers and that the defense of laches and the principle of acquisitive prescription barred the respondents from claiming ownership after such a prolonged inaction. They maintained the position that over 72 years without any assertion of their rights indicated that respondents had effectively abandoned their claim.

Co-Ownership and Pacto de Retro Sale

The Court examined whether co-ownership remained at the time of sale in 1928. It concluded that the prior sale to Lacambra resulted in an unequivocal transfer of ownership following the expiration of the redemption period, thus terminating the co-ownership among the sellers. When Dolorés bought the property two years later, she acquired it as an individual owner, not as a co-owner.

Implied Trust

The court analyzed claims of an implied trust stemming from the initial unauthorised sale. It highlighted that an implied trust arises when property is obtained through fraud or mistake, advocating that Lacambra retained the status of trustee for the benefit of the remaining heirs, whose claims had gone unasserted for decades.

Prescription and Laches

In regard to prescription, the court emphasized that the inaction of respondents for over sixty years constituted not only neglect but also an inequitable delay that prejudiced the petitioners, who had exercised peacef

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