Law School Case Digests

1.Arcaba vs. Tabancura Vda De Batocael, GR No.146683, 22 November
21, 3! "#RA 414
2.A$ala %nvestment vs. #A, GR No.11833&, 12 'ebruar$ 1((8
3.)on* vs. %A#, GR No.!82, 1( Au*ust 1((1
4.#arlos vs. Abelardo, GR No.146&4, ( A+r,l 22
&."+s. Roberto and Venus Buado vs. #A, G.R. No.14&222, 24 A+r,l 2(.
6.Go vs. -amane, G.R.No.16!62, 3 .a$ 26.
!."abalones vs. #A, 23 "#RA !(
8. G,uan* vs. #A, GR No.12&1!2, 26 /une 1((8
(. /ader0.analo vs. #ama,sa, GR No.14!(!8, 28 /anuar$ 22
1."+s. 1,ta De 1eon 2 'el,c R,o Tarrosa vs. An,ta de 1eon, et al., G.R.
No.18&63, 23 /ul$ 2(
"3#4ND D%V%"%4N
[G.R. No. 146683. November 22, 2001]
CIRILA ARCABA, petitioner, vs. ERLINDA TABANCURA VDA. DE BATCAEL, !EIG"RED C.
TABANCURA, DRI! C. TABANCURA, LU#ELLI C. TABANCURA, BELEN C. TABANCURA,
RAUL A. C$ILLE, BERNADETTE A. C$ILLE, %&' ABNER A. C$ILLE, respondents.
D E C I ! I N
$END#A, J.(
5et,t,oner #,r,la Arcaba see6s rev,e7 on cert,orar, o8 t9e dec,s,on
:1;
o8 t9e #ourt o8 A++eals, 79,c9
a88,rmed 7,t9 mod,8,cat,on t9e dec,s,on
:2;
o8 t9e Re*,onal Tr,al #ourt, Branc9 1, D,+olo* #,t$, <amboan*a
del Norte ,n #,v,l #ase No. 4&(3, declar,n* as vo,d a deed o8 donat,on inter vivos e=ecuted b$ t9e late
'ranc,sco T. #om,lle ,n 9er 8avor and ,ts subse>uent resolut,on
:3;
den$,n* recons,derat,on.
T9e 8acts are as 8ollo7s?
4n /anuar$ 16, 1(&6, 'ranc,sco #om,lle and 9,s 7,8e <os,ma .ontallana became t9e re*,stered
o7ners o8 1ot No. 43!0A located at t9e corner o8 #alle "anta Rosa @no7 Bal,nta7a6 "treetA and #alle
Rosar,o @no7 R,Bal AvenueA ,n D,+olo* #,t$, <amboan*a del Norte. T9e total area o8 t9e lot 7as 418
s>uare meters.
:4;
A8ter t9e deat9 o8 <os,ma on 4ctober 3, 1(8, 'ranc,sco and 9,s mot9er0,n0la7, /ul,ana
Bustal,no .ontallana, e=ecuted a deed o8 e=traCud,c,al +art,t,on 7,t9 7a,ver o8 r,*9ts, ,n 79,c9 t9e latter
7a,ved 9er s9are cons,st,n* o8 one08ourt9 @
1
D4A o8 t9e +ro+ert$ to 'ranc,sco.
:&;
4n /une 2!, 1(16, 'ranc,sco
re*,stered t9e lot ,n 9,s name 7,t9 t9e Re*,str$ o8 Deeds.
:6;
Eav,n* no c9,ldren to ta6e care o8 9,m a8ter 9,s ret,rement, 'ranc,sco as6ed 9,s n,ece 1et,c,a
Bellos,llo,
:!;
t9e latterFs cous,n, 1uBv,m,nda 5a*9ac,an,
:8;
and +et,t,oner #,r,la Arcaba, t9en a 7,do7, to ta6e
care o8 9,s 9ouse, as 7ell as t9e store ,ns,de.
:(;
#on8l,ct,n* test,mon,es 7ere o88ered as to t9e nature o8 t9e relat,ons9,+ bet7een #,r,la and
'ranc,sco. 1et,c,a Bellos,llo sa,d 'ranc,sco and #,r,la 7ere lovers s,nce t9e$ sle+t ,n t9e same room,
:1;
79,le 3rl,nda Tabancura,
:11;
anot9er n,ece o8 'ranc,sco, cla,med t9at t9e latter 9ad told 9er t9at #,r,la
7as 9,s m,stress.
:12;
4n t9e ot9er 9and, #,r,la sa,d s9e 7as a mere 9el+er 79o could enter t9e masterFs
bedroom onl$ 79en t9e old man as6ed 9er to and t9at 'ranc,sco ,n an$ case 7as too old 8or 9er. "9e
den,ed t9e$ ever 9ad se=ual ,ntercourse.
:13;
%t a++ears t9at 79en 1et,c,a and 1uBv,m,nda 7ere marr,ed, onl$ #,r,la 7as le8t to ta6e care o8
'ranc,sco.
:14;
#,r,la test,8,ed t9at s9e 7as a 340$ear old 7,do7 79,le 'ranc,sco 7as a !&0$ear old 7,do7er
79en s9e be*an 7or6,n* 8or t9e latterG t9at 9e could st,ll 7al6 7,t9 9er ass,stance at t9at t,meG
:1&;
and t9at
9,s 9ealt9 eventuall$ deter,orated and 9e became bedr,dden.
:16;
3rl,nda Tabancura test,8,ed t9at
'ranc,scoFs sole source o8 ,ncome cons,sted o8 rentals 8rom 9,s lot near t9e +ubl,c streets.
:1!;
Ee d,d not
+a$ #,r,la a re*ular cas9 7a*e as a 9ouse9el+er, t9ou*9 9e +rov,ded 9er 8am,l$ 7,t9 8ood and lod*,n*.
:18;
4n /anuar$ 24, 1((1, a 8e7 mont9s be8ore 9,s deat9, 'ranc,sco e=ecuted an ,nstrument
denom,nated HDeed o8 Donat,on Inter Vivos,I ,n 79,c9 9e ceded a +ort,on o8 1ot 43!0A, cons,st,n* o8 1&
s>uare meters, to*et9er 7,t9 9,s 9ouse, to #,r,la, 79o acce+ted t9e donat,on ,n t9e same
,nstrument. 'ranc,sco le8t t9e lar*er +ort,on o8 268 s>uare meters ,n 9,s name. T9e deed stated t9at t9e
donat,on 7as be,n* made ,n cons,derat,on o8 Ht9e 8a,t98ul serv,ces :#,r,la Arcaba; 9ad rendered over t9e
+ast ten @1A $ears.I T9e deed 7as notar,Bed b$ Att$. V,c T. 1aca$a, "r.
:1(;
and later re*,stered b$ #,r,la as
,ts absolute o7ner.
:2;
4n 4ctober 4, 1((1, 'ranc,sco d,ed 7,t9out an$ c9,ldren. %n 1((3, t9e lot 79,c9 #,r,la rece,ved 8rom
'ranc,sco 9ad a mar6et value o8 5&!,1&. and an assessed value o8 528,&&..
:21;
4n 'ebruar$ 18, 1((3, res+ondents 8,led a com+la,nt a*a,nst +et,t,oner 8or declarat,on o8 null,t$ o8 a
deed o8 donat,on inter vivos, recover$ o8 +ossess,on, and dama*es. Res+ondents, 79o are t9e
decedentFs ne+9e7s and n,eces and 9,s 9e,rs b$ ,ntestate success,on, alle*ed t9at #,r,la 7as t9e
common0la7 7,8e o8 'ranc,sco and t9e donat,on inter vivos made b$ 'ranc,sco ,n 9er 8avor ,s vo,d under
Art,cle 8! o8 t9e 'am,l$ #ode, 79,c9 +rov,des?
3ver$ donat,on or *rant o8 *ratu,tous advanta*e, d,rect or ,nd,rect, bet7een t9e s+ouses dur,n* t9e
marr,a*e s9all be vo,d, e=ce+t moderate *,8ts 79,c9 t9e s+ouses ma$ *,ve eac9 ot9er on t9e occas,on o8
an$ 8am,l$ reCo,c,n*. T9e +ro9,b,t,on s9all also a++l$ to +ersons l,v,n* to*et9er as 9usband and 7,8e
7,t9out a val,d marr,a*e.
4n 'ebruar$ 2&, 1(((, t9e tr,al court rendered Cud*ment ,n 8avor o8 res+ondents, 9old,n* t9e
donat,on vo,d under t9,s +rov,s,on o8 t9e 'am,l$ #ode. T9e tr,al court reac9ed t9,s conclus,on based on
t9e test,mon$ o8 3rl,nda Tabancura and certa,n documents bear,n* t9e s,*nature o8 one H#,r,la #om,lle.I
T9e documents 7ere @1A an a++l,cat,on 8or a bus,ness +erm,t to o+erate as real estate lessor, dated
/anuar$ 8, 1((1, 7,t9 a carbon co+$ o8 t9e s,*nature H#,r,la #om,lleIG
:22;
@2A a san,tar$ +erm,t to o+erate as
real estate lessor 7,t9 a 9ealt9 cert,8,cate s9o7,n* t9e s,*nature H#,r,la #om,lleI ,n blac6 ,n6G
:23;
and @3A t9e
deat9 cert,8,cate o8 t9e decedent 7,t9 t9e s,*nature H#,r,la A. #om,lleI 7r,tten ,n blac6 ,n6.
:24;
T9e
d,s+os,t,ve +ort,on o8 t9e tr,al courtFs dec,s,on states?
)E3R3'4R3, ,n v,e7 o8 t9e 8ore*o,n*, Cud*ment ,s rendered?
1. Declar,n* t9e Deed o8 Donat,on %nter V,vos e=ecuted b$ t9e late 'ranc,sco #om,lle recorded as Doc.
No. !G 5a*e No. 3G Boo6 No. VG "er,es o8 1((1 ,n t9e Notar,al Re*,ster o8 Notar$ 5ubl,c V,c T. 1aca$a
@Anne= HAI to t9e #om+la,ntA null and vo,dG
2. 4rder,n* t9e de8endant to del,ver +ossess,on o8 t9e 9ouse and lot subCect o8 t9e deed unto t9e +la,nt,88s
7,t9,n t9,rt$ @3A da$s a8ter 8,nal,t$ o8 t9,s dec,s,onG and 8,nall$
3. 4rder,n* t9e de8endant to +a$ attorne$Fs 8ees ,n t9e sum o8 51,..
"4 4RD3R3D.
:2&;
5et,t,oner a++ealed to t9e #ourt o8 A++eals, 79,c9 rendered on /une 1(, 2 t9e dec,s,on subCect o8
t9,s a++eal. As alread$ stated, t9e a++eals court den,ed recons,derat,on. %ts conclus,on 7as based on
@1A t9e test,mon,es o8 1et,c,a, 3rl,nda, and #,r,laG @2A t9e co+,es o8 documents +ur+ortedl$ s9o7,n* #,r,laFs
use o8 'ranc,scoFs surnameG @3A a +lead,n* ,n anot9er c,v,l case ment,on,n* +a$ment o8 rentals to #,r,la as
'ranc,scoFs common0la7 7,8eG and @4A t9e 8act t9at #,r,la d,d not rece,ve a re*ular cas9 7a*e.
5et,t,oner ass,*ns t9e 8ollo7,n* errors as 9av,n* been comm,tted b$ t9e #ourt o8 A++eals?
@aA T9e Cud*ment o8 t9e #ourt o8 A++eals t9at +et,t,oner 7as t9e common0la7 7,8e o8 t9e late 'ranc,sco
#om,lle ,s not correct and ,s a revers,ble error because ,t ,s based on a m,sa++re9ens,on o8 8acts, and
undul$ brea6s t9e c9a,n o8 c,rcumstances deta,led b$ t9e total,t$ o8 t9e ev,dence, ,ts 8,nd,n*s be,n*
+red,cated on totall$ ,ncom+etent or 9earsa$ ev,dence, and *rounded on mere s+eculat,on, conCecture or
+oss,b,l,t$. @"alaBar v. Gut,erreB, 33 "#RA 243 and ot9er casesG c,ted ,n Ju,ason, 59,l,++,ne #ourts and
t9e,r /ur,sd,ct,ons, 1((3 ed., +. 64A
@bA T9e #ourt o8 A++eals erred ,n s9,8t,n* t9e burden o8 ev,dence 8rom t9e +la,nt,88 to de8endant. @Bun$, v.
Re$es, 3( "#RA &4G Ju,ason, ,d.A
@cA T9e #ourt o8 A++eals dec,ded t9e case ,n a 7a$ +robabl$ not ,n accord 7,t9 la7 or 7,t9 t9e a++l,cable
Cur,s+rudence ,n Rodr,*ueB v. Rodr,*ueB, 2 "#RA (8, and 1,*ueB v. #A, 12 59,l. &!!, &84.
:26;
T9e ,ssue ,n t9,s case ,s 79et9er t9e #ourt o8 A++eals correctl$ a++l,ed Art. 8! o8 t9e 'am,l$ #ode to
t9e c,rcumstances o8 t9,s case. A8ter a rev,e7 o8 t9e records, 7e rule ,n t9e a88,rmat,ve.
T9e *eneral rule ,s t9at onl$ >uest,ons o8 la7 ma$ be ra,sed ,n a +et,t,on 8or rev,e7 under Rule 4& o8
t9e Rules o8 #ourt, subCect onl$ to certa,n e=ce+t,ons? @aA 79en t9e conclus,on ,s a 8,nd,n* *rounded
ent,rel$ on s+eculat,ons, surm,ses, or conCecturesG @bA 79en t9e ,n8erence made ,s man,8estl$ m,sta6en,
absurd, or ,m+oss,bleG @cA 79ere t9ere ,s *rave abuse o8 d,scret,onG @dA 79en t9e Cud*ment ,s based on a
m,sa++re9ens,on o8 8actsG @eA 79en t9e 8,nd,n*s o8 8act are con8l,ct,n*G @8A 79en t9e #ourt o8 A++eals, ,n
ma6,n* ,ts 8,nd,n*s, 7ent be$ond t9e ,ssues o8 t9e case and t9e same are contrar$ to t9e adm,ss,ons o8
bot9 a++ellant and a++elleeG @*A 79en t9e 8,nd,n*s o8 t9e #ourt o8 A++eals are contrar$ to t9ose o8 t9e tr,al
courtG @9A 79en t9e 8,nd,n*s o8 8act are conclus,ons 7,t9out c,tat,on o8 s+ec,8,c ev,dence on 79,c9 t9e$ are
basedG @,A 79en t9e 8,nd,n* o8 8act o8 t9e #ourt o8 A++eals ,s +rem,sed on t9e su++osed absence o8
ev,dence but ,s contrad,cted b$ t9e ev,dence on recordG and @CA 79en t9e #ourt o8 A++eals man,8estl$
overloo6ed certa,n relevant 8acts not d,s+uted b$ t9e +art,es and 79,c9, ,8 +ro+erl$ cons,dered, 7ould
Cust,8$ a d,88erent conclus,on.
:2!;
%t a++ear,n* t9at t9e #ourt o8 A++eals based ,ts 8,nd,n*s on ev,dence
+resented b$ bot9 +art,es, t9e *eneral rule s9ould a++l$.
%n Bitangcor v. Tan,
:28;
7e 9eld t9at t9e term Hco9ab,tat,onI or Hl,v,n* to*et9er as 9usband and 7,8eI
means not onl$ res,d,n* under one roo8, but also 9av,n* re+eated se=ual ,ntercourse. #o9ab,tat,on, o8
course, means more t9an se=ual ,ntercourse, es+ec,all$ 79en one o8 t9e +art,es ,s alread$ old and ma$
no lon*er be ,nterested ,n se=. At t9e ver$ least, co9ab,tat,on ,s t9e public assum+t,on b$ a man and a
7oman o8 t9e mar,tal relat,on, and d7ell,n* to*et9er as man and 7,8e, t9ereb$ 9old,n* t9emselves out to
t9e +ubl,c as suc9. "ecret meet,n*s or n,*9ts clandest,nel$ s+ent to*et9er, even ,8 o8ten re+eated, do not
const,tute suc9 6,nd o8 co9ab,tat,onG t9e$ are merel$ meretr,c,ous.
:2(;
%n t9,s Cur,sd,ct,on, t9,s #ourt 9as
cons,dered as su88,c,ent +roo8 o8 common0la7 relat,ons9,+ t9e st,+ulat,ons bet7een t9e +art,es,
:3;
a
conv,ct,on o8 concub,na*e,
:31;
or t9e e=,stence o8 ,lle*,t,mate c9,ldren.
:32;
)as #,r,la 'ranc,scoFs em+lo$ee or 9,s common0la7 7,8eK #,r,la adm,tted t9at s9e and 'ranc,sco
res,ded under one roo8 8or a lon* t,me. %t ,s ver$ +oss,ble t9at t9e t7o consummated t9e,r relat,ons9,+,
s,nce #,r,la *ave 'ranc,sco t9era+eut,c massa*e and 1et,c,a sa,d t9e$ sle+t ,n t9e same bedroom. At t9e
ver$ least, t9e,r +ubl,c conduct ,nd,cated t9at t9e,rs 7as not Cust a relat,ons9,+ o8 care*,ver and +at,ent,
but t9at o8 e=clus,ve +artners a6,n to 9usband and 7,8e.
As,de 8rom 3rl,nda TabancuraFs test,mon$ t9at 9er uncle told 9er t9at #,r,la 7as 9,s m,stress, t9ere
are ot9er ,nd,cat,ons t9at #,r,la and 'ranc,sco 7ere common0la7 s+ouses. "e,*8redo Tabancura
+resented documents a++arentl$ s,*ned b$ #,r,la us,n* t9e surname H#om,lle.I As +rev,ousl$ stated,
t9ese are an a++l,cat,on 8or a bus,ness +erm,t to o+erate as a real estate lessor,
:33;
a san,tar$ +erm,t to
o+erate as real estate lessor 7,t9 a 9ealt9 cert,8,cate,
:34;
and t9e deat9 cert,8,cate o8 'ranc,sco.
:3&;
T9ese
documents s9o7 t9at #,r,la sa7 9ersel8 as 'ranc,scoFs common0la7 7,8e, ot9er7,se, s9e 7ould not 9ave
used 9,s last name. ",m,larl$, ,n t9e ans7er 8,led b$ 'ranc,scoFs lessees ,n H3rl,nda Tabancura, et al. vs.
Grac,a Adr,at,co "$ and Anton,o "$,I RT# #,v,l #ase No. 4!1( @8or collect,on o8 rentalsA, t9ese lessees
re8erred to #,r,la as Ht9e common0la7 s+ouse o8 'ranc,sco.I ',nall$, t9e 8act t9at #,r,la d,d not demand
8rom 'ranc,sco a re*ular cas9 7a*e ,s an ,nd,cat,on t9at s9e 7as not s,m+l$ a care*,ver0em+lo$ee, but
'ranc,scoFs common la7 s+ouse. "9e 7as, a8ter all, ent,tled to a re*ular cas9 7a*e under t9e la7.
:36;
%t ,s
d,88,cult to bel,eve t9at s9e sta$ed 7,t9 'ranc,sco and served 9,m out o8 +ure bene8,cence. Euman reason
7ould t9us lead to t9e conclus,on t9at s9e 7as 'ranc,scoFs common0la7 s+ouse.
Res+ondents 9av,n* +roven b$ a +re+onderance o8 ev,dence t9at #,r,la and 'ranc,sco l,ved to*et9er
as 9usband and 7,8e 7,t9out a val,d marr,a*e, t9e ,nesca+able conclus,on ,s t9at t9e donat,on made b$
'ranc,sco ,n 8avor o8 #,r,la ,s vo,d under Art. 8! o8 t9e 'am,l$ #ode.
)*ERE"RE, t9e dec,s,on o8 t9e #ourt o8 A++eals a88,rm,n* t9e dec,s,on o8 t9e tr,al court ,s 9ereb$
A''%R.3D.
! RDERED.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
"3#4ND D%V%"%4N

G.R. No. 11830, "ebr-%r. 12, 1//8
A0ALA INVE!T$ENT 1 DEVEL+$ENT CR+. %&' ABELARD $AG!A2, +et,t,oners,
vs.
CURT " A++EAL! %&' !+U!E! AL"RED 1 ENCARNACIN C*ING, res+ondents.

$ARTINE#, J.:
Lnder Art,cle 161 o8 t9e #,v,l #ode, 79at debts and obl,*at,ons contracted b$ t9e 9usband alone are
cons,dered M8or t9e bene8,t o8 t9e conCu*al +artners9,+M 79,c9 are c9ar*eable a*a,nst t9e conCu*al
+artners9,+K %s a suret$ a*reement or an accommodat,on contract entered ,nto b$ t9e 9usband ,n 8avor o8
9,s em+lo$er 7,t9,n t9e contem+lat,on o8 t9e sa,d +rov,s,onK
T9ese are t9e ,ssues 79,c9 7e 7,ll resolve ,n t9,s +et,t,on 8or rev,e7.
T9e +et,t,oner assa,ls t9e dec,s,on dated A+r,l 14, 1((4 o8 t9e res+ondent #ourt o8 A++eals ,n M"+ouses
Al8redo and 3ncarnac,on Ching vs. Ayala %nvestment and Develo+ment #or+orat,on, et. al.,M doc6eted as
#A0G.R. #V No. 2(632,
1
u+9old,n* t9e dec,s,on o8 t9e Re*,onal Tr,al #ourt o8 5as,*, Branc9 168, 79,c9
ruled t9at t9e conCu*al +artners9,+ o8 *a,ns o8 res+ondents0s+ouses Al8redo and 3ncarnac,on #9,n* ,s not
l,able 8or t9e +a$ment o8 t9e debts secured b$ res+ondent09usband Al8redo #9,n*.
A c9ronolo*$ o8 t9e essent,al antecedent 8acts ,s necessar$ 8or a clear understand,n* o8 t9e case at bar.
59,l,++,ne Bloom,n* .,lls @9ere,na8ter re8erred to as 5B.A obta,ned a 5&,3,. loan 8rom +et,t,oner
A$ala %nvestment and Develo+ment #or+orat,on @9ere,na8ter re8erred to as A%D#A. As added secur,t$ 8or
t9e cred,t l,ne e=tended to 5B., res+ondent Al8redo #9,n*, 3=ecut,ve V,ce 5res,dent o8 5B., e=ecuted
secur,t$ a*reements on December 1, 1(8 and on .arc9 2, 1(81 ma6,n* 9,msel8 Co,ntl$ and severall$
ans7erable 7,t9 5B.Ns ,ndebtedness to A%D#.
5B. 8a,led to +a$ t9e loan. T9us, on /ul$ 3, 1(81, A%D# 8,led a case 8or sum o8 mone$ a*a,nst 5B. and
res+ondent09usband Al8redo #9,n* 7,t9 t9e t9en #ourt o8 ',rst %nstance o8 R,Bal @5as,*A, Branc9 V%%%,
ent,tled MA$ala %nvestment and Develo+ment #or+orat,on vs. 59,l,++,ne Bloom,n* .,lls and Al8redo
#9,n*,M doc6eted as #,v,l #ase No. 42228.
A8ter tr,al, t9e court rendered Cud*ment order,n* 5B. and res+ondent09usband Al8redo #9,n* to Co,ntl$
and severall$ +a$ A%D# t9e +r,nc,+al amount o8 5&,3,. 7,t9 ,nterests.
5end,n* a++eal o8 t9e Cud*ment ,n #,v,l #ase No. 42228, u+on mot,on o8 A%D#, t9e lo7er court ,ssued a
7r,t o8 e=ecut,on +end,n* a++eal. L+on A%D#Ns +utt,n* u+ o8 an 58,,. bond, a 7r,t o8 e=ecut,on
dated .a$ 12, 1(82 7as ,ssued. T9erea8ter, +et,t,oner Abelardo .a*saCo, "r., De+ut$ "9er,88 o8 R,Bal and
a++o,nted s9er,88 ,n #,v,l #ase No. 42228, caused t9e ,ssuance and serv,ce u+on res+ondents0s+ouses o8
a not,ce o8 s9er,88 sale dated .a$ 2, 1(82 on t9ree @3A o8 t9e,r conCu*al +ro+ert,es. 5et,t,oner .a*saCo
t9en sc9eduled t9e auct,on sale o8 t9e +ro+ert,es lev,ed.
4n /une (, 1(82, +r,vate res+ondents 8,led a case o8 ,nCunct,on a*a,nst +et,t,oners 7,t9 t9e t9en #ourt o8
',rst %nstance o8 R,Bal @5as,*A, Branc9 O%%%, to enCo,n t9e auct,on sale alle*,n* t9at +et,t,oners cannot
en8orce t9e Cud*ment a*a,nst t9e conCu*al +artners9,+ lev,ed on t9e *round t9at, amon* ot9ers, t9e
subCect loan d,d not redound to t9e bene8,t o8 t9e sa,d conCu*al +artners9,+.
2
L+on a++l,cat,on o8 +r,vate
res+ondents, t9e lo7er court ,ssued a tem+orar$ restra,n,n* order to +revent +et,t,oner .a*saCo 8rom
+roceed,n* 7,t9 t9e en8orcement o8 t9e 7r,t o8 e=ecut,on and 7,t9 t9e sale o8 t9e sa,d +ro+ert,es at +ubl,c
auct,on.
A%D# 8,led a +et,t,on 8or certiorari be8ore t9e #ourt o8 A++eals,
3
>uest,on,n* t9e order o8 t9e lo7er court
enCo,n,n* t9e sale. Res+ondent #ourt o8 A++eals ,ssued a Tem+orar$ Restra,n,n* 4rder on /une 2&,
1(82, enCo,n,n* t9e lo7er court
4
8rom en8orc,n* ,ts 4rder o8 /une 14, 1(82, t9us +av,n* t9e 7a$ 8or t9e
sc9eduled auct,on sale o8 res+ondents0s+ouses conCu*al +ro+ert,es.
4n /une 2&, 1(82, t9e auct,on sale too6 +lace. A%D# be,n* t9e onl$ b,dder, 7as ,ssued a #ert,8,cate o8
"ale b$ +et,t,oner .a*saCo, 79,c9 7as re*,stered on /ul$ 2, 1(82. L+on e=+,rat,on o8 t9e redem+t,on
+er,od, +et,t,oner s9er,88 ,ssued t9e 8,nal deed o8 sale on Au*ust 4, 1(82 79,c9 7as re*,stered on Au*ust
(, 1(83.
%n t9e meant,me, t9e res+ondent court, on Au*ust 4, 1(82, dec,ded #A0G.R. "5 No. 1444, ,n t9,s
manner?
)E3R3'4R3, t9e +et,t,on 8or certiorari ,n t9,s case ,s *ranted and t9e c9allen*ed order
o8 t9e res+ondent /ud*e dated /une 14, 1(82 ,n #,v,l #ase No. 463( ,s 9ereb$ set as,de
and null,8,ed. T9e same +et,t,on ,nso8ar as ,t see6s to enCo,n t9e res+ondent /ud*e 8rom
+roceed,n* 7,t9 #,v,l #ase No. 463( ,s, 9o7ever, den,ed. No +ronouncement ,s 9ere
made as to costs. . . .
,
4n "e+tember 3, 1(83, A%D# 8,led a mot,on to d,sm,ss t9e +et,t,on 8or ,nCunct,on 8,led be8ore Branc9 O%%% o8
t9e #'% o8 R,Bal @5as,*A on t9e *round t9at t9e same 9ad become moot and academ,c 7,t9 t9e
consummat,on o8 t9e sale. Res+ondents 8,led t9e,r o++os,t,on to t9e mot,on ar*u,n*, amon* ot9ers, t9at
79ere a t9,rd +art$ 79o cla,m ,s o7ners9,+ o8 t9e +ro+ert$ attac9ed or lev,ed u+on, a d,88erent le*al
s,tuat,on ,s +resentedG and t9at ,n t9,s case, t7o @2A o8 t9e real +ro+ert,es are actuall$ ,n t9e name o8
3ncarnac,on #9,n*, a non0+art$ to #,v,l #ase No. 42228.
T9e lo7er court den,ed t9e mot,on to d,sm,ss. Eence, tr,al on t9e mer,ts +roceeded. 5r,vate res+ondents
+resented several 7,tnesses. 4n t9e ot9er 9and, +et,t,oners d,d not +resent an$ ev,dence.
4n "e+tember 18, 1((1, t9e tr,al court +romul*ated ,ts dec,s,on declar,n* t9e sale on e=ecut,on null and
vo,d. 5et,t,oners a++ealed to t9e res+ondent court, 79,c9 7as doc6eted as #A0G.R. #V No. 2(632.
4n A+r,l 14, 1((4, t9e res+ondent court +romul*ated t9e assa,led dec,s,on, a88,rm,n* t9e dec,s,on o8 t9e
re*,onal tr,al court. %t 9eld t9at?
T9e loan +rocured 8rom res+ondent0a++ellant A%D# 7as 8or t9e advancement and bene8,t
o8 59,l,++,ne Bloom,n* .,lls and not 8or t9e bene8,t o8 t9e conCu*al +artners9,+ o8
+et,t,oners0a++ellees.
=== === ===
As to t9e a++l,cable la7, 79et9er ,t ,s Art,cle 161 o8 t9e Ne7 #,v,l #ode or Art,cle 1211 o8
t9e 'am,l$ #ode0su88,ce ,t to sa$ t9at t9e t7o +rov,s,ons are substant,all$ t9e same.
Nevert9eless, )e a*ree 7,t9 t9e tr,al court t9at t9e 'am,l$ #ode ,s t9e a++l,cable la7 on
t9e matter . . . . . . .
Art,cle 121 o8 t9e 'am,l$ #ode +rov,des t9at MT9e conCu*al +artners9,+ s9all be l,able
8or? . . . @2A All debts and obl,*at,ons contracted dur,n* t9e marr,a*e b$ t9e des,*nated
Adm,n,strator0"+ouse 8or t9e bene8,t o8 t9e conCu*al +artners9,+ o8 *a,ns . . . .M T9e
burden o8 +roo8 t9at t9e debt 7as contracted 8or t9e bene8,t o8 t9e conCu*al +artners9,+ o8
*a,ns, l,es 7,t9 t9e cred,tor0+art$ l,t,*ant cla,m,n* as suc9. %n t9e case at bar, res+ondent0
a++ellant A%D# 8a,led to +rove t9at t9e debt 7as contracted b$ a++ellee09usband, 8or t9e
bene8,t o8 t9e conCu*al +artners9,+ o8 *a,ns.
T9e d,s+os,t,ve +ort,on o8 t9e dec,s,on reads?
)E3R3'4R3, ,n v,e7 o8 all t9e 8ore*o,n*, Cud*ment ,s 9ereb$ rendered D%".%""%NG
t9e a++eal. T9e dec,s,on o8 t9e Re*,onal Tr,al #ourt ,s A''%R.3D in toto.
6
5et,t,oner 8,led a .ot,on 8or Recons,derat,on 79,c9 7as den,ed b$ t9e res+ondent court ,n a Resolut,on
dated November 28, 1((4.
3
Eence, t9,s +et,t,on 8or rev,e7. 5et,t,oner contends t9at t9e Mres+ondent court erred ,n rul,n* t9at t9e
conCu*al +artners9,+ o8 +r,vate res+ondents ,s not l,able 8or t9e obl,*at,on b$ t9e res+ondent09usband.M
"+ec,8,call$, t9e errors alle*edl$ comm,tted b$ t9e res+ondent court are as 8ollo7s?
%. R3"54ND3NT #4LRT 3RR3D %N RL1%NG TEAT TE3 4B1%GAT%4N
%N#LRR3D R3"54ND3NT EL"BAND D%D N4T R3D4LND T4 TE3
B3N3'%T 4' TE3 #4N/LGA1 5ARTN3R"E%5 4' TE3 5R%VAT3
R3"54ND3NT.
%%. R3"54ND3NT #4LRT 3RR3D %N RL1%NG TEAT TE3 A#T 4'
R3"54ND3NT EL"BAND %N "3#LR%NG TE3 "LB/3#T 14AN %"
N4T 5ART 4' E%" %NDL"TR-, BL"%N3"" 4R #AR33R 'R4.
)E%#E E3 "L554RT" E%" 'A.%1-.
5et,t,oners ,n t9e,r a++eal +o,nt out t9at t9ere ,s no need to +rove t9at actual bene8,t redounded to t9e
bene8,t o8 t9e +artners9,+G all t9at ,s necessar$, t9e$ sa$, ,s t9at t9e transact,on 7as entered ,nto 8or t9e
bene8,t o8 t9e conCu*al +artners9,+. T9us, +et,t,oners aver t9at?
T9e 7ord,n*s o8 Art,cle 161 o8 t9e #,v,l #ode ,s ver$ clear? 8or t9e +artners9,+ to be 9eld
l,able, t9e 9usband must 9ave contracted t9e debt M8or t9e bene8,t o8 t9e +artners9,+,
t9us?
Art. 161. T9e conCu*al +artners9,+ s9all be l,able 8or?
1A all debts and obl,*at,ons contracted b$ t9e 9usband
8or t9e bene8,t o8 t9e conCu*al +artners9,+ . . . .
T9ere ,s a d,88erence bet7een t9e +9rases? Mredounded to t9e bene8,t o8M or Mbene8,ted
8romM @on t9e one 9andA and M8or t9e bene8,t o8 @on t9e ot9erA. T9e 8ormer re>u,re t9at
actual bene8,t must 9ave been real,BedG t9e latter re>u,res onl$ t9at t9e transact,on s9ould
be one 79,c9 normall$ 7ould +roduce bene8,t to t9e +artners9,+, re*ardless o8 79et9er or
not actual bene8,t accrued.
8
)e do not a*ree 7,t9 +et,t,oners t9at t9ere ,s a d,88erence bet7een t9e terms Mredounded to t9e bene8,t o8M
or Mbene8,ted 8romM on t9e one 9andG and M8or t9e bene8,t o8M on t9e ot9er. T9e$ mean one and t9e same
t9,n*. Art,cle 161 @1A o8 t9e #,v,l #ode and Art,cle 121 @2A o8 t9e 'am,l$ #ode are s,m,larl$ 7orded, i.e.,
bot9 use t9e term M8or t9e bene8,t o8.M 4n t9e ot9er 9and, Art,cle 122 o8 t9e 'am,l$ #ode +rov,des t9at
MT9e +a$ment o8 +ersonal debts b$ t9e 9usband or t9e 7,8e be8ore or dur,n* t9e marr,a*e s9all not be
c9ar*ed to t9e conCu*al +artners9,+ e=ce+t ,nso8ar as they redounded to the benefit of the family.M As can
be seen, t9e terms are used ,nterc9an*eabl$.
5et,t,oners 8urt9er contend t9at t9e rul,n* o8 t9e res+ondent court runs counter to t9e +ronouncement o8
t9,s #ourt ,n t9e case o8 Cobb-Perez vs. antin,
/
t9at t9e 9usband as 9ead o8 t9e 8am,l$ and as
adm,n,strator o8 t9e conCu*al +artners9,+ ,s +resumed to 9ave contracted obl,*at,ons 8or t9e bene8,t o8 t9e
8am,l$ or t9e conCu*al +artners9,+.
#ontrar$ to t9e content,on o8 t9e +et,t,oners, t9e case o8 #obb05ereB ,s not a++l,cable ,n t9e case at bar.
T9,s #ourt 9as, on several ,nstances, ,nter+reted t9e term M8or t9e bene8,t o8 t9e conCu*al +artners9,+.M
%n t9e cases o8 !avier vs. "sme#a,
10
Abella de $iaz vs. %rlanger & 'alinger( Inc.,
11
Cobb-Perez
vs. antin
12
and '-Tractors( Inc. vs. Court of Appeals,
13
c,ted b$ t9e +et,t,oners, 7e 9eld t9at?
T9e debts contracted b$ t9e 9usband dur,n* t9e marr,a*e relat,on, 8or and ,n t9e e=erc,se
o8 t9e ,ndustr$ or +ro8ess,on b$ 79,c9 9e contr,butes to7ard t9e su++ort o8 9,s 8am,l$, are
not 9,s +ersonal and +r,vate debts, and t9e +roducts or ,ncome 8rom t9e 7,8eNs o7n
+ro+ert$, 79,c9, l,6e t9ose o8 9er 9usbandNs, are l,able 8or t9e +a$ment o8 t9e marr,a*e
e=+enses, cannot be e=ce+ted 8rom t9e +a$ment o8 suc9 debts. @/av,erA
T9e 9usband, as t9e mana*er o8 t9e +artners9,+ @Art,cle 1412, #,v,l #odeA, 9as a r,*9t to
embar6 t9e +artners9,+ ,n an ord,nar$ commerc,al enter+r,se 8or *a,n, and t9e 8act t9at
t9e 7,8e ma$ not a++rove o8 a venture does not ma6e ,t a +r,vate and +ersonal one o8 t9e
9usband. @Abella de D,aBA
Debts contracted b$ t9e 9usband 8or and ,n t9e e=erc,se o8 t9e ,ndustr$ or +ro8ess,on b$
79,c9 9e contr,butes to t9e su++ort o8 t9e 8am,l$, cannot be deemed to be 9,s e=clus,ve
and +r,vate debts. @#obb05ereBA.
. . . ,8 9e ,ncurs an ,ndebtedness ,n t9e le*,t,mate +ursu,t o8 9,s career or +ro8ess,on or
su88ers losses ,n a le*,t,mate bus,ness, t9e conCu*al +artners9,+ must e>uall$ bear t9e
,ndebtedness and t9e losses, unless 9e del,beratel$ acted to t9e +reCud,ce o8 9,s 8am,l$.
@G0TractorsA
Eo7ever, ,n t9e cases o8 Ansaldo vs. )heriff of *anila( +idelity Insurance & uzon Insurance
Co.,
14
iberty Insurance Corporation vs. Banuelos,
1,
and uzon )urety Inc. vs. $e 'arcia,
16
c,ted b$ t9e
res+ondents, 7e ruled t9at?
T9e 8ru,ts o8 t9e +ara+9ernal +ro+ert$ 79,c9 8orm +art o8 t9e assets o8 t9e conCu*al
+artners9,+, are subCect to t9e +a$ment o8 t9e debts and e=+enses o8 t9e s+ouses, but
not to t9e +a$ment o8 t9e +ersonal obl,*at,ons @*uarant$ a*reementsA o8 t9e 9usband,
unless ,t be +roved t9at suc9 obl,*at,ons 7ere +roduct,ve o8 some bene8,t to t9e 8am,l$.M
@AnsaldoG +arent9et,cal +9rase ours.A
)9en t9ere ,s no s9o7,n* t9at t9e e=ecut,on o8 an ,ndemn,t$ a*reement b$ t9e 9usband
redounded to t9e bene8,t o8 9,s 8am,l$, t9e underta6,n* ,s not a conCu*al debt but an
obl,*at,on +ersonal to 9,m. @1,bert$ %nsuranceA
%n t9e most cate*or,cal lan*ua*e, a conCu*al +artners9,+ under Art,cle 161 o8 t9e ne7
#,v,l #ode ,s l,able onl$ 8or suc9 Mdebts and obl,*at,ons contracted b$ t9e 9usband 8or t9e
bene8,t o8 t9e conCu*al +artners9,+.M T9ere must be t9e re>u,s,te s9o7,n* t9en o8 some
advanta*e 79,c9 clearl$ accrued to t9e 7el8are o8 t9e s+ouses. #erta,nl$, to ma6e a
conCu*al +artners9,+ res+ond 8or a l,ab,l,t$ t9at s9ould a++erta,n to t9e 9usband alone ,s
to de8eat and 8rustrate t9e avo7ed obCect,ve o8 t9e ne7 #,v,l #ode to s9o7 t9e utmost
concern 8or t9e sol,dar,t$ and 7ell0be,n* o8 t9e 8am,l$ as a un,t. T9e 9usband, t9ere8ore, ,s
den,ed t9e +o7er to assume unnecessar$ and un7arranted r,s6s to t9e 8,nanc,al stab,l,t$
o8 t9e conCu*al +artners9,+. @1uBon "uret$, %nc.A
'rom t9e 8ore*o,n* Cur,s+rudent,al rul,n*s o8 t9,s #ourt, 7e can der,ve t9e 8ollo7,n* conclus,ons?
@AA %8 t9e 9usband 9,msel8 ,s t9e +r,nc,+al obl,*or ,n t9e contract, i.e., 9e d,rectl$ rece,ved t9e mone$ and
serv,ces to be used ,n or 8or 9,s o7n bus,ness or 9,s o7n +ro8ess,on, t9at contract 8alls 7,t9,n t9e
term . . . . obl,*at,ons 8or t9e bene8,t o8 t9e conCu*al +artners9,+.M Eere, no actual bene8,t ma$ be +roved. %t
,s enou*9 t9at t9e bene8,t to t9e 8am,l$ ,s a++arent at t9e t,me o8 t9e s,*n,n* o8 t9e contract. 'rom t9e ver$
nature o8 t9e contract o8 loan or serv,ces, t9e 8am,l$ stands to bene8,t 8rom t9e loan 8ac,l,t$ or serv,ces to
be rendered to t9e bus,ness or +ro8ess,on o8 t9e 9usband. %t ,s ,mmater,al, ,8 ,n t9e end, 9,s bus,ness or
+ro8ess,on 8a,ls or does not succeed. ",m+l$ stated, 79ere t9e 9usband contracts obl,*at,ons on be9al8 o8
t9e 8am,l$ bus,ness, t9e la7 +resumes, and r,*9tl$ so, t9at suc9 obl,*at,on 7,ll redound to t9e bene8,t o8
t9e conCu*al +artners9,+.
@BA 4n t9e ot9er 9and, ,8 t9e mone$ or serv,ces are *,ven to anot9er +erson or ent,t$, and t9e 9usband
acted onl$ as a surety or guarantor, t9at contract cannot, b$ ,tsel8, alone be cate*or,Bed as 8all,n* 7,t9,n
t9e conte=t o8 Mobl,*at,ons 8or t9e bene8,t o8 t9e conCu*al +artners9,+.M T9e contract o8 loan or serv,ces ,s
clearl$ 8or t9e bene8,t o8 t9e +r,nc,+al debtor and not 8or t9e suret$ or 9,s 8am,l$. No +resum+t,on can be
,n8erred t9at, 79en a 9usband enters ,nto a contract o8 suret$ or accommodat,on a*reement, ,t ,s M8or t9e
bene8,t o8 t9e conCu*al +artners9,+.M 5roo8 must be +resented to establ,s9 bene8,t redound,n* to t9e
conCu*al +artners9,+.
T9us, t9e d,st,nct,on bet7een t9e #obb05ereB case, and 7e add, t9at o8 t9e t9ree ot9er com+an,on cases,
on t9e one 9and, and t9at o8 Ansaldo, 1,bert$ %nsurance and 1uBon "uret$, ,s t9at ,n t9e 8ormer, t9e
9usband contracted t9e obl,*at,on 8or 9,s o7n bus,nessG 79,le ,n t9e latter, t9e 9usband merel$ acted as a
suret$ 8or t9e loan contracted b$ anot9er 8or t9e latterNs bus,ness.
T9e ev,dence o8 +et,t,oner ,ndub,tabl$ s9o7 t9at co0res+ondent Al8redo #9,n* s,*ned as suret$ 8or t9e
5&. loan contracted on be9al8 o8 5B.. +et,t,oner s9ould 9ave adduced ev,dence to +rove t9at Al8redo
#9,n*Ns act,n* as suret$ redounded to t9e bene8,t o8 t9e conCu*al +artners9,+. T9e reason 8or t9,s ,s as
luc,dl$ e=+la,ned b$ t9e res+ondent court?
T9e loan +rocured 8rom res+ondent0a++ellant A%D# 7as 8or t9e advancement and bene8,t
o8 59,l,++,ne Bloom,n* .,lls and not 8or t9e bene8,t o8 t9e conCu*al +artners9,+ o8
+et,t,oners0a++ellees. 59,l,++,ne Bloom,n* .,lls 9as a +ersonal,t$ d,st,nct and se+arate
8rom t9e 8am,l$ o8 +et,t,oners0a++ellees P t9,s des+,te t9e 8act t9at t9e members o8 t9e
sa,d 8am,l$ 9a++ened to be stoc69olders o8 sa,d cor+orate ent,t$.
=== === ===
. . . . T9e burden o8 +roo8 t9at t9e debt 7as contracted 8or t9e bene8,t o8 t9e conCu*al
+artners9,+ o8 *a,ns, l,es 7,t9 t9e cred,tor0+art$ l,t,*ant cla,m,n* as suc9. %n t9e case at
bar, res+ondent0a++ellant A%D# 8a,led to +rove t9at t9e debt 7as contracted b$ a++ellee0
9usband, 8or t9e bene8,t o8 t9e conCu*al +artners9,+ o8 *a,ns. )9at ,s a++arent 8rom t9e
8acts o8 t9e case ,s t9at t9e Cud*ment debt 7as contracted b$ or ,n t9e name o8 t9e
#or+orat,on 59,l,++,ne Bloom,n* .,lls and a++ellee09usband onl$ s,*ned as suret$
t9ereo8. T9e debt ,s clearl$ a cor+orate debt and res+ondent0a++ellantNs r,*9t o8 recourse
a*a,nst a++ellee09usband as suret$ ,s onl$ to t9e e=tent o8 9,s cor+orate stoc69old,n*s. %t
does not e=tend to t9e conCu*al +artners9,+ o8 *a,ns o8 t9e 8am,l$ o8 +et,t,oners0a++ellees.
. . . . . .
13
5et,t,oners contend t9at no actual bene8,t need accrue to t9e conCu*al +artners9,+. To su++ort t9,s
content,on, t9e$ c,te /ust,ce /.B.1. Re$esN aut9or,tat,ve o+,n,on ,n t9e 1uBon "uret$ #om+an$ case?
% concur ,n t9e result, but 7ould l,6e to ma6e o8 record t9at, ,n m$ o+,n,on, t9e 7ords Mall
debts and obl,*at,ons contracted b$ t9e 9usband 8or t9e bene8,t o8 t9e conCu*al
+artners9,+M used ,n Art,cle 161 o8 t9e #,v,l #ode o8 t9e 59,l,++,nes ,n descr,b,n* t9e
c9ar*es and obl,*at,ons 8or 79,c9 t9e conCu*al +artners9,+ ,s l,able do not re>u,re t9at
actual +ro8,t or bene8,t must accrue to t9e conCu*al +artners9,+ 8rom t9e 9usbandNs
transact,onG but ,t su88,ces t9at t9e transact,on s9ould be one t9at normall$ 7ould +roduce
suc9 bene8,t 8or t9e +artners9,+. T9,s ,s t9e rat,o be9,nd our rul,n* ,n !avier vs. "sme#a,
34 59,l. 336, t9at obl,*at,ons ,ncurred b$ t9e 9usband ,n t9e +ract,ce o8 9,s +ro8ess,on are
collect,ble 8rom t9e conCu*al +artners9,+.
T9e a8ore>uoted concurr,n* o+,n,on a*reed 7,t9 t9e maCor,t$ dec,s,on t9at t9e conCu*al +artners9,+ s9ould
not be made l,able 8or t9e suret$ a*reement 79,c9 7as clearl$ 8or t9e bene8,t o8 a t9,rd +art$. "uc9 o+,n,on
merel$ re*,stered an e=ce+t,on to 79at ma$ be construed as a s7ee+,n* statement t9at ,n all cases
actual +ro8,t or bene8,t must accrue to t9e conCu*al +artners9,+. T9e o+,n,on merel$ made ,t clear t9at no
actual bene8,ts to t9e 8am,l$ need be +roved ,n some cases suc9 as ,n t9e /av,er case. T9ere, t9e
9usband 7as t9e +r,nc,+al obl,*or 9,msel8. T9us, sa,d transact,on 7as 8ound to be Mone t9at 7ould
normall$ +roduce . . . bene8,t 8or t9e +artners9,+.M %n t9e later case o8 G0Tractors, %nc., t9e 9usband 7as
also t9e +r,nc,+al obl,*or P not merel$ t9e suret$. T9,s latter case, t9ere8ore, d,d not create an$
+recedent. %t d,d not also su+ersede t9e 1uBon "uret$ #om+an$ case, nor an$ o8 t9e +rev,ous
accommodat,on contract cases, 79ere t9,s #ourt ruled t9at t9e$ 7ere 8or t9e bene8,t o8 t9,rd +art,es.
But ,t could be ar*ued, as t9e +et,t,oner su**ests, t9at even ,n suc9 6,nd o8 contract o8 accommodat,on, a
bene8,t 8or t9e 8am,l$ ma$ also result, ,hen the guarantee is in favor of the husband-s employer.
%n t9e case at bar, +et,t,oner cla,ms t9at t9e bene8,ts t9e res+ondent 8am,l$ 7ould reasonabl$ ant,c,+ate
7ere t9e 8ollo7,n*?
@aA T9e em+lo$ment o8 co0res+ondent Al8redo #9,n* 7ould be +rolon*ed
and 9e 7ould be ent,tled to 9,s mont9l$ salar$ o8 52,. 8or an
e=tended len*t9 o8 t,me because o8 t9e loan 9e *uaranteedG
@bA T9e s9ares o8 stoc6 o8 t9e members o8 9,s 8am,l$ 7ould a++rec,ate ,8
t9e 5B. could be re9ab,l,tated t9rou*9 t9e loan obta,nedG
@cA E,s +rest,*e ,n t9e cor+orat,on 7ould be en9anced and 9,s career
7ould be boosted s9ould 5B. surv,ve because o8 t9e loan.
Eo7ever, t9ese are not t9e bene8,ts contem+lated b$ Art,cle 161 o8 t9e #,v,l #ode. T9e bene8,ts must be
one d,rectl$ result,n* 8rom t9e loan. %t cannot merel$ be a b$0+roduct or a s+,n0o88 o8 t9e loan ,tsel8.
%n all our dec,s,ons ,nvolv,n* accommodat,on contracts o8 t9e 9usband,
18
7e underscored t9e
re>u,rement t9at? Mt9ere must be t9e re>u,s,te s9o7,n* . . . o8 some advanta*e 79,c9 clearl$ accrued to
t9e 7el8are o8 t9e s+ousesM or Mbene8,ts to 9,s 8am,l$M or Mt9at suc9 obl,*at,ons are +roduct,ve o8 some
bene8,t to t9e 8am,l$.M Ln8ortunatel$, t9e +et,t,on d,d not +resent an$ +roo8 to s9o7? @aA )9et9er or not t9e
cor+orate e=,stence o8 5B. 7as +rolon*ed and 8or 9o7 man$ mont9s or $earsG andDor @bA )9et9er or not
t9e 5B. 7as saved b$ t9e loan and ,ts s9ares o8 stoc6 a++rec,ated, ,8 so, 9o7 muc9 and 9o7 substant,al
7as t9e 9old,n*s o8 t9e #9,n* 8am,l$.
"uc9 bene8,ts @+ros+ects o8 lon*er em+lo$ment and +robable ,ncrease ,n t9e value o8 stoc6sA m,*9t 9ave
been alread$ a++arent or could be ant,c,+ated at t9e t,me t9e accommodat,on a*reement 7as entered
,nto. But 7ould t9ose Mbene8,tsM >ual,8$ t9e transact,on as one o8 t9e Mobl,*at,ons . . . 8or t9e bene8,t o8 t9e
conCu*al +artners9,+MK Are ,nd,rect and remote +robable bene8,ts, t9e ones re8erred to ,n Art,cle 161 o8 t9e
#,v,l #odeK T9e #ourt o8 A++eals ,n den$,n* t9e mot,on 8or recons,derat,on, d,s+osed o8 t9ese >uest,ons
,n t9e 8ollo7,n* manner?
No matter 9o7 one loo6s at ,t, t9e debtDcred,t res+ondents0a++ellants ,s +urel$ a
cor+orate debt *ranted to 5B., 7,t9 +et,t,oner0a++ellee09usband merel$ s,*n,n* as
suret$. )9,le suc9 +et,t,oner0a++ellee09usband, as suc9 suret$, ,s sol,dar,l$ l,able 7,t9 t9e
+r,nc,+al debtor A%D#, suc9 l,ab,l,t$ under t9e #,v,l #ode +rov,s,ons ,s s+ec,8,call$
restr,cted b$ Art,cle 122 @+ar. 1A o8 t9e 'am,l$ #ode, so t9at debts 8or 79,c9 t9e 9usband
,s l,able ma$ not be c9ar*ed a*a,nst conCu*al +artners9,+ +ro+ert,es. Art,cle 122 o8 t9e
'am,l$ #ode ,s e=+l,c,t P MT9e +a$ment o8 +ersonal debts contracted b$ t9e 9usband or
t9e 7,8e be8ore or dur,n* t9e marr,a*e s9all not be c9ar*ed to t9e conCu*al +artners9,+
e=ce+t ,nso8ar as t9e$ redounded to t9e bene8,t o8 t9e 8am,l$.
Res+ondents0a++ellants ,ns,st t9at t9e cor+orate debt ,n >uest,on 8alls under t9e
e=ce+t,on la,d do7n ,n sa,d Art,cle 122 @+ar. oneA. )e do not a*ree. T9e loan +rocured
8rom res+ondent0a++ellant A%D# 7as 8or t9e sole advancement and bene8,t o8 59,l,++,ne
Bloom,n* .,lls and not 8or t9e bene8,t o8 t9e conCu*al +artners9,+ o8 +et,t,oners0a++ellees.
. . . a++ellee09usband der,ves salar,es, d,v,dends bene8,ts 8rom 59,l,++,ne Bloom,n* .,lls
@t9e debtor cor+orat,onA, onl$ because sa,d 9usband ,s an em+lo$ee o8 sa,d 5B.. T9ese
salar,es and bene8,ts, are not t9e Mbene8,tsM contem+lated b$ Art,cles 121 and 122 o8 t9e
'am,l$ #ode. T9e Mbene8,tsM contem+lated b$ t9e e=ce+t,on ,n Art,cle 122 @'am,l$ #odeA
,s t9at bene8,t der,ved d,rectl$ 8rom t9e use o8 t9e loan. %n t9e case at bar, t9e loan ,s a
cor+orate loan e=tended to 5B. and used b$ 5B. ,tsel8, not b$ +et,t,oner0a++ellee0
9usband or 9,s 8am,l$. T9e alle*ed bene8,t, ,8 an$, cont,nuousl$ 9ar+ed b$ res+ondents0
a++ellants, are not onl$ ,nc,dental but also s+eculat,ve.
1/
)e a*ree 7,t9 t9e res+ondent court. %ndeed, cons,der,n* t9e odds ,nvolved ,n *uarantee,n* a lar*e
amount @5&,,.A o8 loan, t9e +robable +rolon*at,on o8 em+lo$ment ,n 5B. and ,ncrease ,n value
o8 ,ts stoc6s, 7ould be too small to >ual,8$ t9e transact,on as one M8or t9e bene8,tM o8 t9e suret$Ns 8am,l$.
Ver,l$, no one could sa$, 7,t9 a de*ree o8 certa,nt$, t9at t9e sa,d contract ,s even M+roduct,ve o8 some
bene8,tsM to t9e conCu*al +artners9,+.
)e l,6e7,se a*ree 7,t9 t9e res+ondent court @and t9,s v,e7 ,s not contested b$ t9e +et,t,onersA t9at t9e
+rov,s,ons o8 t9e 'am,l$ #ode ,s a++l,cable ,n t9,s case. T9ese +rov,s,ons 9,*9l,*9t t9e underl$,n* concern
o8 t9e la7 8or t9e conservat,on o8 t9e conCu*al +artners9,+G 8or t9e 9usbandNs dut$ to +rotect and
sa8e*uard, ,8 not au*ment, not to d,ss,+ate ,t.
T9,s ,s t9e underl$,n* reason 79$ t9e 'am,l$ #ode clar,8,es t9at t9e obl,*at,ons entered ,nto b$ one o8 t9e
s+ouses must be t9ose t9at redounded to t9e bene8,t o8 t9e 8am,l$ and t9at t9e measure o8 t9e
+artners9,+Ns l,ab,l,t$ ,s to Mt9e e=tent t9at t9e 8am,l$ ,s bene8,ted.M
20
T9ese are all ,n 6ee+,n* 7,t9 t9e s+,r,t and ,ntent o8 t9e ot9er +rov,s,ons o8 t9e #,v,l #ode 79,c9 +ro9,b,ts
an$ o8 t9e s+ouses to donate or conve$ *ratu,tousl$ an$ +art o8 t9e conCu*al +ro+ert$.
21
T9us, 79en co0
res+ondent Al8redo #9,n* entered ,nto a suret$ a*reement 9e, 8rom t9en on, de8,n,tel$ +ut ,n +er,l t9e
conCu*al +ro+ert$ @,n t9,s case, ,nclud,n* t9e 8am,l$ 9omeA and +laced ,t ,n dan*er o8 be,n* ta6en
*ratu,tousl$ as ,n cases o8 donat,on.
%n t9e second ass,*nment o8 error, t9e +et,t,oner advances t9e v,e7 t9at act,n* as suret$ ,s +art o8 t9e
bus,ness or +ro8ess,on o8 t9e res+ondent09usband.
T9,s t9eor$ ,s ne7 as ,t ,s novel.
T9e res+ondent court correctl$ observed t9at?
",*n,n* as a suret$ ,s certa,nl$ not an e=erc,se o8 an ,ndustr$ or +ro8ess,on, 9ence t9e
c,ted cases o8 Cobb-Perez vs. antinG Abella de $iaz vs. %rlanger & 'alingerG '-Tractors(
Inc. vs. CA do not a++l$ ,n t9e ,nstant case. ",*n,n* as a suret$ ,s not embar6,n* ,n a
bus,ness.
22
)e are l,6e7,se o8 t9e v,e7 t9at no matter 9o7 o8ten an e=ecut,ve acted or 7as +ersuaded to act, as a
suret$ 8or 9,s o7n em+lo$er, t9,s s9ould not be ta6en to mean t9at 9e 9ad t9ereb$ embar6ed ,n t9e
bus,ness o8 suret$s9,+ or *uarant$.
T9,s ,s not to sa$, 9o7ever, t9at 7e are una7are t9at e=ecut,ves are o8ten as6ed to stand as suret$ 8or
t9e,r com+an$Ns loan obl,*at,ons. T9,s ,s es+ec,all$ true ,8 t9e cor+orate o88,c,als 9ave su88,c,ent +ro+ert$ o8
t9e,r o7nG ot9er7,se, t9e,r s+ousesN s,*natures are re>u,red ,n order to b,nd t9e conCu*al +artners9,+s.
T9e 8act t9at on several occas,ons t9e lend,n* ,nst,tut,ons d,d not re>u,re t9e s,*nature o8 t9e 7,8e and t9e
9usband s,*ned alone does not mean t9at be,n* a suret$ became +art o8 9,s +ro8ess,on. Ne,t9er could 9e
be +resumed to 9ave acted 8or t9e conCu*al +artners9,+.
Art,cle 121, +ara*ra+9 3, o8 t9e 'am,l$ #ode ,s em+9at,c t9at t9e +a$ment o8 +ersonal debts contracted
b$ t9e 9usband or t9e 7,8e be8ore or dur,n* t9e marr,a*e s9all not be c9ar*ed to t9e conCu*al +artners9,+
e=ce+t to t9e e=tent t9at t9e$ redounded to t9e bene8,t o8 t9e 8am,l$.
Eere, t9e +ro+ert$ ,n d,s+ute also ,nvolves t9e 8am,l$ 9ome. T9e loan ,s a cor+orate loan not a +ersonal
one. ",*n,n* as a suret$ ,s certa,nl$ not an e=erc,se o8 an ,ndustr$ or +ro8ess,on nor an act o8
adm,n,strat,on 8or t9e bene8,t o8 t9e 8am,l$.
4n t9e bas,s o8 t9e 8acts, t9e rules, t9e la7 and e>u,t$, t9e assa,led dec,s,on s9ould be u+9eld as 7e no7
u+9old ,t. T9,s ,s, o8 course, 7,t9out +reCud,ce to +et,t,onerNs r,*9t to en8orce t9e obl,*at,on ,n ,ts 8avor
a*a,nst t9e 5B. rece,ver ,n accordance 7,t9 t9e re9ab,l,tat,on +ro*ram and +a$ment sc9edule a++roved
or to be a++roved b$ t9e "ecur,t,es 2 3=c9an*e #omm,ss,on.
)E3R3'4R3, t9e +et,t,on 8or rev,e7 s9ould be, as ,t ,s 9ereb$, D3N%3D 8or lac6 o8 mer,t.
"4 4RD3R3D.
.egalado( *elo( Puno and *endoza( !!.( concur.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
TE%RD D%V%"%4N

G.R. No. 30082 A-4-56 1/, 1//1
!+U!E! RIC70 )NG %&' ANITA C*AN, LENARD 2!N, 2UANIT !ANT!, E$ERIT
!ICAT %&' CNRAD LAG$AN, +et,t,oners,
vs.
*N. INTER$EDIATE A++ELLATE CURT %&' R$ARIC *EN!N, res+ondents.
+eliciano C. Tumale for petitioners.
Ben/amin $adios and Bausa( Ampil( )uarez( Paredes & Bausa for private respondent.

"ERNAN, C.J.:p
"ubm,tted 8or adCud,cat,on ,n t9e ,nstant +et,t,on 8or rev,e7 on cert,orar, ,s t9e ,ssue o8 79et9er or not t9e
e=ecut,on o8 a dec,s,on ,n an act,on 8or collect,on o8 a sum o8 mone$ ma$ be null,8,ed on t9e *round t9at
t9e real +ro+ert,es lev,ed u+on and sold at +ubl,c auct,on are t9e alle*ed e=clus,ve +ro+ert,es o8 a
9usband 79o d,d not +art,c,+ate ,n 9,s 7,8eNs bus,ness transact,on 8rom 79,c9 sa,d act,on stemmed.
5r,vate res+ondent Romar,co Eenson marr,ed Qatr,na 5,neda on /anuar$ 6, 1(64.
1
T9e$ 9ave t9ree
c9,ldren but even dur,n* t9e earl$ $ears o8 t9e,r marr,a*e, Romar,co and Qatr,na 9ad been most o8 t9e
t,me l,v,n* se+aratel$. T9e 8ormer sta$ed ,n An*eles #,t$ 79,le t9e latter l,ved ,n .an,la. Dur,n* t9e
marr,a*e or on /anuar$ 6, 1(!1, Romar,co bou*9t a 1,!8! s>uare0meter +arcel o8 land ,n An*eles #,t$ 8or
511,4(2 8rom 9,s 8at9er, Dr. #elest,no 1. Eenson
2
7,t9 mone$ borro7ed 8rom an o88,cemate. E,s 8at9er
need t9e amount 8or ,nvestments ,n An*eles #,t$ and 5ala7an.
3
.ean79,le, ,n Eon*6on* somet,me ,n /une 1(!2, Qatr,na entered ,nto an a*reement 7,t9 An,ta #9an
79ereb$ t9e latter cons,*ned to Qatr,na +,eces o8 Ce7elr$ 8or sale valued at 1((,8(& Eon*6on* dollars or
5321,83.(&.
4
)9en Qatr,na 8a,led to return t9e +,eces o8 Ce7elr$ 7,t9,n t9e 20da$ +er,od a*reed u+on,
An,ta #9an demanded +a$ment o8 t9e,r value.
4n "e+tember 18, 1(!2, Qatr,na ,ssued ,n 8avor o8 An,ta #9an a c9ec6 8or 5&&, 79,c9, 9o7ever, 7as
d,s9onored 8or lac6 o8 8unds. Eence, Qatr,na 7as c9ar*ed 7,t9 esta8a be8ore t9e t9en #ourt o8 ',rst
%nstance o8 5am+an*a and An*eles #,t$, Branc9 %V.
,
A8ter tr,al, t9e lo7er court rendered a dec,s,on
d,sm,ss,n* t9e case on t9e *round t9at Qatr,naNs l,ab,l,t$ 7as not cr,m,nal but c,v,l ,n nature as no esta8a
7as comm,tted b$ t9e ,ssuance o8 t9e c9ec6 ,n +a$ment o8 a +re0e=,st,n* obl,*at,on.
6
%n v,e7 o8 sa,d dec,s,on, An,ta #9an and 9er 9usband R,c6$ )on* 8,led a*a,nst Qatr,na and 9er 9usband
Romar,co Eenson, an act,on 8or collect,on o8 a sum o8 mone$ also ,n t9e same branc9 o8 t9e a8oresa,d
court.
3
T9e records o8 t9e case s9o7 t9at Att$. Gre*or,o Alb,no, /r. 8,led an ans7er 7,t9 countercla,m but
onl$ ,n be9al8 o8 Qatr,na. )9en t9e case 7as called 8or +re0tr,al, Att$. Alb,no once a*a,n a++eared as
counsel 8or Qatr,na onl$. )9,le ,t ,s true t9at dur,n* subse>uent 9ear,n*s, Att$. 3=+ed,te -umul, 79o
collaborated 7,t9 Att$. Alb,no, a++eared 8or t9e de8endants, ,t ,s not s9o7n on record t9at sa,d counsel
also re+resented Romar,co. %n 8act, a +o7er o8 attorne$ 79,c9 Att$. Alb,no +roduced dur,n* t9e tr,al,
s9o7ed t9at t9e same 7as e=ecuted solel$ b$ Qatr,na.
8
A8ter tr,al, t9e court +romul*ated a dec,s,ons
/
,n 8avor o8 t9e )on*s. %t ordered Qatr,na and Romar,co
Eenson to +a$ t9e )on*s EQR1((,8(&. or 5321,83.(& 7,t9 le*al ,nterest 8rom .a$ 2!, 1(!&, t9e date
o8 8,l,n* o8 t9e com+la,nt, unt,l 8ull$ +a,dG 52, as e=+enses 8or l,t,*at,onG 51&, as attorne$Ns 8ees,
and t9e costs o8 t9e su,t.
A 7r,t o8 e=ecut,on 7as t9erea8ter ,ssued. 1ev,ed u+on 7ere 8our lots ,n An*eles #,t$ covered b$ Trans8er
#ert,8,cates o8 T,tle Nos. 3(&, 3(&1, 3(&2 and 3(&3 all ,n t9e name o8 Romar,co Eenson ... marr,ed
to Qatr,na Eenson.
10
T9e +ubl,c auct,on sale 7as 8,rst set 8or 4ctober 3, 1(!! but s,nce sa,d date 7as declared a +ubl,c
9ol,da$, De+ut$ "9er,88 3mer,to ",cat reset t9e sale to November 11, 1(!!. 4n sa,d date, t9e 8ollo7,n*
+ro+ert,es re*,stered ,n t9e name o8 Romar,co Eenson Mmarr,ed to Qatr,na EensonM 7ere sold at +ubl,c
auct,on? @aA t7o +arcels o8 land covered b$ Trans8er #ert,8,cates o8 T,tle Nos. 3(& and 3(&1 7,t9
res+ect,ve areas o8 2(3 and 28( s>uare meters at 514&, eac9 to /uan,to 1. "antos,
11
and @bA t7o
+arcels o8 land covered b$ Trans8er #ert,8,cates o8 T,tle Nos. 3(&2 and 3(&3 7,t9 res+ect,ve areas o8
28( and (16 s>uare meters ,n t9e amount o8 511(,. to 1eonardo B. /oson.
12
A8ter t9e ,nscr,+t,on on Trans8er #ert,8,cate o8 T,tle No. 3(&1 o8 t9e lev$ on e=ecut,on o8 t9e Cud*ment ,n
#,v,l #ase No. 2224, t9e +ro+ert$ covered b$ sa,d t,tle 7as e=traCud,c,all$ 8oreclosed b$ t9e Rural Ban6 o8
5orac, 5am+an*a on account o8 t9e mort*a*e loan o8 58, 79,c9 Romar,co and Qatr,na 9ad obta,ned
8rom sa,d ban6. T9e +ro+ert$ 7as sold b$ t9e s9er,88 to t9e 9,*9est b,dder 8or 5&!, on "e+tember (,
1(!!. 4n "e+tember 14, 1(!8, /uan,to "antos, 79o 9ad earl,er bou*9t t9e same +ro+ert$ at +ubl,c
auct,on on November 11, 1(!!, redeemed ,t b$ +a$,n* t9e sum o8 5&!, +lus t9e le*al ,nterest o8
56,84. or a total amount o8 563,84..
13
About a mont9 be8ore suc9 redem+t,on or on Au*ust 8, 1 (!8, Romar,co 8,led an act,on 8or t9e annulment
o8 t9e dec,s,on ,n #,v,l #ase No. 2224 as 7ell as t9e 7r,t o8 e=ecut,on, lev$ on e=ecut,on and t9e auct,on
sale t9ere,n ,n t9e same #ourt o8 ',rst %nstance.
14
Romar,co alle*ed t9at 9e 7as Mnot *,ven 9,s da$ ,n
courtM because 9e 7as not re+resented b$ counsel as Att$s. Alb,no and -umul a++eared solel$ 8or
Qatr,naG t9at alt9ou*9 9e d,d not 8,le an ans7er to t9e com+la,nt, 9e 7as not declared ,n de8ault ,n t9e
caseG t9at 79,le Att$. Alb,no rece,ved a co+$ o8 t9e dec,s,on, 9e and 9,s 7,8e 7ere never +ersonall$ served
a co+$ t9ereo8G t9at 9e 9ad not9,n* to do 7,t9 t9e bus,ness transact,ons o8 Qatr,na as 9e d,d not aut9or,Be
9er to enter ,nto suc9 transact,onsG and t9at t9e +ro+ert,es lev,ed on e=ecut,on and sold at +ubl,c auct,on
b$ t9e s9er,88 7ere 9,s ca+,tal +ro+ert,es and t9ere8ore, as to 9,m, all t9e +roceed,n*s 9ad ,n t9e case
7ere null and vo,d.
4n November 1, 1(!8, t9e lo7er court ,ssued an order restra,n,n* t9e Re*,ster o8 Deeds o8 An*eles #,t$
8rom ,ssu,n* t9e 8,nal b,ll o8 sale o8 Trans8er #ert,8,cates o8 T,tle Nos. 3(& and 3(&1 ,n 8avor o8 /uan,to
"antos and Trans8er #ert,8,cates o8 T,tle Nos. 3(&2 and 3(&3 ,n 8avor o8 1eonardo /oson unt,l 8urt9er
orders o8 t9e court.
1,
4n /anuar$ 22, 1(!(, u+on mot,on o8 Romar,co, t9e court ,ssued a 7r,t o8
+rel,m,nar$ ,nCunct,on enCo,n,n* t9e s9er,88 8rom a++rov,n* t9e 8,nal b,ll o8 sale o8 t9e land covered b$ t9e
a8orement,oned cert,8,cates o8 t,tle and t9e Re*,ster o8 Deeds o8 An*eles #,t$ 8rom re*,ster,n* sa,d
cert,8,cates o8 t,tle ,n t9e names o8 "antos and /oson unt,l t9e 8,nal outcome o8 t9e case subCect to
Romar,coNs +ost,n* o8 a bond ,n t9e amount o8 5321,831..
16
A8ter tr,al on t9e mer,ts, t9e lo7er court
13
rendered a dec,s,on 9old,n* t9at Romar,co 7as ,ndeed not
*,ven 9,s da$ ,n court as 9e 7as not re+resented b$ counsel nor 7as 9e not,8,ed o8 t9e 9ear,n*s t9ere,n
alt9ou*9 9e 7as never declared ,n de8ault. Not,n* t9at t9e com+la,nt ,n #,v,l #ase No. 2224 as 7ell as t9e
test,mon,al and documentar$ ev,dence adduced at t9e tr,al ,n sa,d case do not s9o7 t9at Romar,co 9ad
an$t9,n* to do 7,t9 t9e transact,ons bet7een Qatr,na and An,ta #9an, t9e court ruled t9at t9e Cud*ment ,n
#,v,l #ase No. 2224 M,s devo,d o8 le*al or 8actual bas,s 79,c9 ,s not even su++orted b$ a 8,nd,n* o8 8act
or ratio decidendi ,n t9e bod$ o8 t9e dec,s,on, and ma$ be declared null and vo,d ... +ursuant to a doctr,ne
la,d do7n b$ t9e "u+reme #ourt to t9e e88ect t9at t9e #ourt o8 ',rst %nstance or a branc9 t9ereo8, 9as
aut9or,t$ and Cur,sd,ct,on to tr$ and dec,de an act,on 8or annulment o8 a 8,nal and e=ecutor$ Cud*ment or
order rendered b$ anot9er court o8 8,rst ,nstance or o8 a branc9 t9ereo8 @G,anan vs. %m+er,al, && "#RA
!&&A.M
18
4n 79et9er or not t9e +ro+ert,es len,ed u+on and sold at +ubl,c auct,on ma$ be reconve$ed to Romar,co,
t9e court, 8,nd,n* t9at t9ere 7as no bas,s 8or 9old,n* t9e conCu*al +artners9,+ l,able 8or t9e +ersonal
,ndebtedness o8 Qatr,na, ruled ,n 8avor o8 reconve$ance ,n v,e7 o8 t9e Cur,s+rudence t9at t9e ,nterest o8 t9e
7,8e ,n t9e conCu*al +artners9,+ +ro+ert$ be,n* ,nc9oate and t9ere8ore merel$ an e=+ectanc$, t9e same
ma$ not be sold or d,s+osed o8 8or value unt,l a8ter t9e l,>u,dat,on and settlement o8 t9e commun,t$ assets.
T9e d,s+os,t,ve +ort,on o8 t9e dec,s,on reads?
)E3R3'4R3, and ,n v,e7 o8 t9e 8ore*o,n*, Cud*ment ,s 9ereb$ rendered ,n 8avor o8 t9e
+la,nt,88 and a*a,nst all t9e de8endants, as 8ollo7s?
@aA T9e Dec,s,on o8 t9e #ourt o8 ',rst %nstance o8 5am+an*a and An*eles #,t$, Branc9 %V,
rendered ,n #,v,l #ase No. 2224, ent,tled MR%#Q- )4NG, 3T A1. vs. QATR%NA 5%N3DA
E3N"4N and R4.AR%#4 E3N"4NM, ,s 9ereb$ declared null and vo,d, onl$ as 8ar as ,t
a88ects +la,nt,88 9ere,n Romar,co EensonG
@bA T9e )r,t o8 3=ecut,on, lev$ ,n e=ecut,on and auct,on sale o8 t9e conCu*al +ro+ert$ o8
t9e s+ouses Romar,co Eenson and Qatr,na 5,neda Eenson 79,c9 7ere sold at +ubl,c
auct,on on November 11, 1(!!, 7,t9out not,ce to +la,nt,88 9ere,n, b$ De+ut$ "9er,88
3mer,to ",cat, are l,6e7,se declared null and vo,d and o8 no 8orce and e88ectG
@cA De8endants 3mer,to ",cat and #onrado 1a*man, ,n t9e,r o88,c,al ca+ac,t$ as "9er,88
and Re*,ster o8 Deeds, res+ect,vel$, are enCo,ned +ermanentl$ 8rom ,ssu,n* andDor
re*,ster,n* t9e corres+ond,n* deeds o8 sale a88ect,n* t9e +ro+ert$G
@dA T9e a8orement,oned bu$ers are d,rected to reconve$ t9e +ro+ert$ t9e$ 9ave t9us
+urc9ased at +ubl,c auct,on to +la,nt,88 Romar,co EensonG
@eA As 8ar as t9e cla,m 8or re,mbursement 8,led b$ /uan,to "antos concern,n* t9e
redem+t,on o8 t9e +ro+ert$ covered b$ Trans8er #ert,8,cate o8 T,tle No. 3(&1 8rom t9e
Rural Ban6 o8 5orac, 79,c9 8oreclosed t9e same e=traCud,c,all$, ,s concerned, +la,nt,88
Romar,co Eenson ma$ redeem t9e same 7,t9,n t9e +er,od and ,n t9e manner +rescr,bed
b$ la7, a8ter t9e corres+ond,n* deed o8 redem+t,on s9all 9ave been re*,stered ,n t9e
488,ce o8 t9e Re*,str$ o8 Deeds 8or An*eles #,t$G
@8A De8endants "+ouses R,c6$ )on* and An,ta #9an are, 7,t9 t9e e=ce+t,on o8 t9e
de8endants /uan,to "antos, 1eonardo /oson, "9er,88 and Re*,ster o8 Deeds, are ordered
Co,ntl$ and severall$, to +a$ t9e +la,nt,88 Romar,co Eenson t9e sum o8 51,.,
corres+ond,n* to t9e e=+enses o8 l,t,*at,on, 7,t9 le*al ,nterest t9ereon 8rom t9e t,me t9,s
su,t 7as 8,led u+ to t9e t,me t9e same s9all 9ave been +a,d, +lus 5&,. 8or and as
attorne$Ns 8ees, and t9e costs o8 su,tG and
@*A T9e countercla,ms res+ect,vel$ 8,led on be9al8 o8 all t9e de8endants ,n t9e above0
ent,tled case are 9ereb$ D%".%""3D.
"4 4RD3R3D.
T9e de8endants a++ealed to t9e t9en %ntermed,ate A++ellate #ourt. %n ,ts dec,s,on o8 /anuar$ 22,
1(8&
1/
t9e sa,d court a88,rmed ,n toto t9e dec,s,on o8 t9e lo7er court. %t added t9at as to Romar,co, t9e
Cud*ment ,n #,v,l #ase No. 2224 9ad not atta,ned 8,nal,t$ as t9e dec,s,on t9ere,n 7as not served on 9,m
and t9at 9e 7as not re+resented b$ counsel. T9ere8ore, esto++el ma$ not be a++l,ed a*a,nst 9,m as, not
9av,n* been served 7,t9 t9e dec,s,on, Romar,co d,d not 6no7 an$t9,n* about ,t. #orollar,l$, t9ere can be
no val,d 7r,t o8 e=ecut,on ,nasmuc9 as t9e dec,s,on 9ad not become 8,nal as 8ar as Romar,co ,s
concerned.
4n 79et9er t9e +ro+ert,es ma$ be lev,ed u+on as conCu*al +ro+ert,es, t9e a++ellate court ruled ,n t9e
ne*at,ve. %t noted t9at t9e +ro+ert,es are Romar,coN s e=clus,ve ca+,tal 9av,n* been bou*9t b$ 9,m 7,t9 9,s
o7n 8unds. But *rant,n* t9at t9e +ro+ert,es are conCu*al, t9e$ cannot ans7er 8or Qatr,naNs obl,*at,ons as
t9e latter 7ere e=clus,vel$ 9ers because t9e$ 7ere ,ncurred 7,t9out t9e consent o8 9er 9usband, t9e$
7ere not 8or t9e da,l$ e=+enses o8 t9e 8am,l$ and t9e$ d,d not redound to t9e bene8,t o8 t9e 8am,l$. T9e
court underscored t9e 8act t9at no ev,dence 9as been subm,tted t9at t9e adm,n,strat,on o8 t9e conCu*al
+artners9,+ 9ad been trans8erred to Qatr,na e,t9er b$ Romar,co or b$ t9e court be8ore sa,d obl,*at,ons
7ere ,ncurred.
T9e a++ellants 8,led a mot,on 8or recons,derat,on o8 t9e dec,s,on o8 t9e a++ellate court but t9e same 7as
den,ed 8or lac6 o8 mer,t on 'ebruar$ 6, 1(8&.
20
Eence, t9e ,nstant +et,t,on 8or rev,e7 on cert,orar,. 5et,t,oners contend t9at, ,nasmuc9 as t9e Eenson
s+ouses 7ere dul$ re+resented b$ Att$. Alb,no as s9o7n b$ t9e,r a88,dav,t o8 Au*ust 2&, 1(!! 79ere,n t9e$
adm,tted t9at t9e$ 7ere re+resented b$ sa,d counsel unt,l Att$. -umul too6 over t9e actual mana*ement
and conduct o8 t9e case and t9at Att$. Alb,no 9ad not 7,t9dra7n as t9e,r counsel, t9e lo7er court Md,d not
comm,t an errorM ,n serv,n* a co+$ o8 t9e dec,s,on ,n #,v,l #ase No. 2224 onl$ on Att$. Alb,no. .oreover,
dur,n* t9e 20$ear +er,od bet7een t9e 8,l,n* o8 t9e com+la,nt ,n #,v,l #ase No. 2224 and t9e +ubl,c auct,on
sale on November 11, 1(!!, Romar,co rema,ned s,lent t9ereb$ ma6,n* 9,m ,n esto++el and *u,lt$ o8
lac9es.
5et,t,oners 8urt9er aver t9at t9ere be,n* su88,c,ent ev,dence t9at t9e auct,on sale 7as conducted ,n
accordance 7,t9 la7, t9e acts o8 t9e s9er,88s concerned are +resumed to be re*ular and val,d. But *rant,n*
t9at an ,rre*ular,t$ cons,st,n* o8 t9e non0not,8,cat,on o8 Romar,co attended t9e conduct o8 t9e auct,on sale,
t9e r,*9ts o8 "antos and /oson 79o 7ere Mmere stran*ers 79o +art,c,+ated as t9e 9,*9est b,ddersM
t9ere,n, ma$ not be +reCud,ced. "antos and /oson bou*9t t9e +ro+ert,es s,ncerel$ bel,ev,n* t9at t9e s9er,88
7as re*ularl$ +er8orm,n* 9,s dut,es and no ev,dence 7as +resented to t9e e88ect t9at t9e$ acted 7,t9 8raud
or t9at t9e$ conn,ved 7,t9 t9e s9er,88. Eo7ever, s9ould t9e auct,on sale be null,8,ed, +et,t,oners assert t9at
Romar,co s9ould not be undul$ enr,c9ed at t9e e=+ense o8 "antos and /oson.
T9e +et,t,onersN t9eor$ ,s t9at Romar,co Eenson 7as *u,lt$ o8 lac9es and ma$ not no7 belatedl$ assert 9,s
r,*9ts over t9e +ro+ert,es because 9e and Qatr,na 7ere re+resented b$ counsel ,n #,v,l #ase No. 2224.
"a,d t9eor$ ,s alle*edl$ 8ounded on t9e +erce+t,on t9at t9e Eensons 7ere l,6e an$ ot9er ord,nar$ cou+le
79ere,n a s+ouse 6no7s or s9ould 6no7 t9e transact,ons o8 t9e ot9er s+ouse 79,c9 necessar,l$ must be
,n ,nterest o8 t9e 8am,l$. T9e 8actual bac6*round o8 t9,s case, 9o7ever, ta6es ,t out o8 sa,d ,deal s,tuat,on.
Romar,co and Qatr,na 9ad ,n 8act been se+arated 79en Qatr,na entered ,nto a bus,ness deal 7,t9 An,ta
)on*. T9us, 79en t9at bus,ness transact,on eventuall$ resulted ,n t9e 8,l,n* o8 #,v,l #ase No. 2224,
Romar,co acted, or, as c9ar*ed b$ +et,t,oners, 8a,led to act, ,n t9e bel,e8 t9at 9e 7as not ,nvolved ,n t9e
+ersonal deal,n*s o8 9,s estran*ed 7,8e. T9at bel,e8 7as buttressed b$ t9e 8act t9at t9e com+la,nt ,tsel8 d,d
not ment,on or ,m+l,cate 9,m ot9er t9an as t9e 9usband o8 Qatr,na. 4n 79et9er Romar,co 7as also
re+resented b$ Att$. Alb,no, Qatr,naNs counsel, t9e courts belo7 8ound t9at?
... Att$. Alb,no 8,led an Ans7er 7,t9 #ountercla,ms dated /ul$ 2&, 1(!& solel$ on be9al8 o8
de8endant Qatr,na Eenson. T9e salutar$ statement ,n t9at Ans7er cate*or,call$ reads? ...
#4.3" N4) TE3 D3'3NDANT QATR%NA E3N"4N b$ and t9rou*9 unders,*ned
counsel, ,n ans7er to +la,nt,88sN com+la,nt res+ect8ull$ alle*es? ... .
T9at Ans7er 7as s,*ned b$ GR3G4R%4 A1B%N4, /R., over t9e +9rase #4LN"31 '4R
D3'3NDANT QATR%NA E3N"4N.
A*a,n, 79en #,v,l #ase No. 2224 7as called 8or +re0tr,al on November 2!, 1(!&, be8ore
t9en 5res,d,n* /ud*e B,enven,do 3Cerc,to, ,t ,s clearl$ stated on +a*e 2 o8 t9e da$Ns
steno*ra+9,c notes, under MA553ARAN#3" t9at Att$. Alb,no, /r. a++eared as #4LN"31
'4R D3'3NDANT QATR%NA E3N"4NM. And 79en t9e case 7as called, Att$. /ose
BaltaBar, "r. a++eared 8or t9e +la,nt,88s 79,le Att$. Alb,no cate*or,call$ a++eared M'4R
D3'3NDANT QATR%NA E3N"4NM.
%t m,*9t be true t9at ,n subse>uent 9ear,n*s, Att$. 3=+ed,to -umul Na++eared as counsel
8or t9e de8endants,N but t9e 79ole trouble ,s t9at 9e never e=+ressl$ man,8ested to t9e
#ourt t9at 9e 7as l,6e7,se actuall$ re+resent,n* de8endant MR4.AR%#4 E3N"4NM, 8or ,t
cannot be d,s+uted t9at Att$. -umul onl$ entered 9,s a++earance ,n collaborat,on 7,t9
Att$. Alb,no @see +. 2 tsn, /anuar$ 26, 1(!6, 3s+,nosaA, 79o ,n turn entered 9,s ,n,t,al
a++earance dur,n* t9e +re0 tr,al, and t9rou*9 t9e 8,l,n* o8 an Ans7er, 8or de8endant
QATR%NA E3N"4N. As a matter o8 8act, t9e 5o7er o8 Attorne$ 79,c9 Att$. Alb,no
+roduced dur,n* t9e +re0tr,al 7as e=ecuted solel$ b$ de8endant QATR%NA E3N"4N.
Accord,n*l$, as collaborat,n* counsel, Att$. -umul cannot, b$ an$ stretc9 o8 t9e
,ma*,nat,on, be cons,dered as dul$ aut9or,Bed to 8ormall$ a++ear l,6e7,se on be9al8 o8
de8endant R4.AR%#4 E3N"4N 8or 79om +r,nc,+al counsel o8 record Att$. Gre*or,o
Alb,no, /r. never made an$ 8ormal a++earance. 4n t9,s score, ,t ,s not am,ss to state t9at
MA s+r,n* cannot r,se 9,*9er t9an ,ts source?.
No7, 79at about t9at statement ,n t9e a8orement,oned Co,nt a88,dav,t o8 t9e s+ouses
QATR%NA E3N"4N and R4.AR%#4 E3N"4N, to t9e e88ect t9at our 8,rst la7$er ,n sa,d
case 7as Att$. Gre*or,o Alb,no, /r., and somet,me later Att$. 3=+ed,to B. -umul too6
over ...
T9at statement 79,c9 +la,nt,88 R4.AR%#4 E3N"4N 7as made to s,*n b$ Att$. -umul on
Au*ust 2&,1(!!, a8ter t9e 8,l,n* o8 t9,s case, alle*edl$ 8or t9e +ur+ose o8 d,ssolv,n* t9e
7r,t o8 e=ecut,on, as cla,med ,n +ara*ra+9 O%V o8 t9e com+la,nt 9ere,n, and ,s
sat,s8actor,l$ e=+la,ned b$ bot9 +la,nt,88 9ere,n and 9,s 7,8e, 79,le on cross0e=am,nat,on b$
Att$. BaltaBar, "r., and )e >uote?
J "o, t9e summons d,rected $our 8,l,n* o8 $our Ans7er 8or bot9 o8 $ou,
$our 7,8e and $our *ood sel8K
A -es, s,r but ma$ % add, % rece,ved t9e summons but % d,d not 8,le an
ans7er because m$ 7,8e too6 a la7$er and t9at la7$er % t9,n6 7,ll +rotect
9er ,nterest and m$ ,nterest be,n* so % d,d not 9ave not9,n* to do ,n t9e
transact,on 79,c9 ,s attac9ed to t9e com+la,nt.N @T"N, /an. 14, 1(8, ++.
&20&3A.
T9at +la,nt,88 never a++eared ,n #,v,l #ase No. 2224, nor 7as 9e t9ere,n
re+resented b$ counsel 7as ,m+l,edl$ adm,tted b$ de8endantsN counsel o8
records t9ru a >uest,on 9e +ro+ounded on cross, and t9e ans7er *,ven
b$ Qatr,na 5,neda, to 7,t?
J Eo7 about $our 9usband, do $ou remember ,8 9e +9$s,call$ a++eared
,n t9at #,v,l #ase No. 2224, 7,ll $ou tell us ,8 9e 7as re+resented b$
counsel as a +art$ de8endantK
A No, s,r, 9e d,d not a++ear.
J -ou are 9usband and 7,8e, +lease tell us t9e reason 79$ $ou 9ave
$our o7n counsel ,n t9at case 79ereas Romar,co Eenson d,d not a++ear
nor a counsel d,d not a++ear ,n t9at +roceed,n*s @T"N, 'eb. 2&,1(8, ++.
60!A.
=== === ===
A Because t9at case ,s m$ e=clus,ve and +ersonal case, 9e 9as not9,n*
to do 7,t9 t9at, s,r. @T"N, 'eb. 2&, 1(8, +. (A. @Rollo, ++. 1!02A
Eence, lac9es ma$ not be c9ar*ed a*a,nst Romar,co because, as,de 8rom t9e 8act t9at 9e 9ad no
6no7led*e o8 t9e transact,ons o8 9,s estran*ed 7,8e, 9e 7as also not a88orded an o++ortun,t$ to de8end
9,msel8 ,n #,v,l #ase No. 2224.
21
T9ere ,s no lac9es or even 8,nal,t$ o8 dec,s,on to s+ea6 o8 7,t9 res+ect to
Romar,co s,nce t9e dec,s,on ,n #,v,l #ase No. 2224 ,s null and vo,d 8or 9av,n* been rendered 7,t9out
Cur,sd,ct,on 8or 8a,lure to observe t9e not,ce re>u,rements +rescr,bed b$ la7.
22
'a,lure to not,8$ Romar,co
ma$ not be attr,buted to t9e 8act t9at t9e +la,nt,88s ,n #,v,l #ase No. 2224 acted on t9e +resum+t,on t9at
t9e Eensons 7ere st,ll 9a++,l$ marr,ed because t9e com+la,nt ,tsel8 s9o7s t9at t9e$ d,d not cons,der
Romar,co as a +art$ to t9e transact,on 79,c9 Qatr,na undertoo6 7,t9 An,ta )on*. %n all l,6el,9ood, t9e
+la,nt,88s merel$ ,m+leaded Romar,co as a nom,nal +art$ ,n t9e case +ursuant to t9e +rov,s,ons o8 Rule 3,
"ect,on 4 o8 t9e Rules o8 #ourt.
#onse>uentl$, t9e 7r,t o8 e=ecut,on cannot be ,ssued a*a,nst Romar,co as 9e 9as not $et 9ad 9,s da$ ,n
court
23
and, necessar,l$, t9e +ubl,c auct,on sale ,s null and vo,d.
24
.oreover, t9e +o7er o8 t9e court ,n t9e
e=ecut,on o8 Cud*ments e=tends onl$ over +ro+ert,es un>uest,onabl$ belon*,n* to t9e Cud*ment debtor.
2,
4n t9e matter o8 o7ners9,+ o8 t9e +ro+ert,es ,nvolved, 9o7ever, t9e #ourt d,sa*rees 7,t9 t9e a++ellate
court t9at t9e sa,d +ro+ert,es are e=clus,vel$ o7ned b$ Romar,co. Eav,n* been ac>u,red dur,n* t9e
marr,a*e, t9e$ are st,ll +resumed to belon* to t9e conCu*al +artners9,+
26
even t9ou*9 Romar,co and
Qatr,na 9ad been l,v,n*
se+aratel$.
23
T9e +resum+t,on o8 t9e conCu*al nature o8 t9e +ro+ert,es subs,sts ,n t9e absence o8 clear, sat,s8actor$ and
conv,nc,n* ev,dence to overcome sa,d +resum+t,on or to +rove t9at t9e +ro+ert,es are e=clus,vel$ o7ned
b$ Romar,co.
28
)9,le t9ere ,s +roo8 t9at Romar,co ac>u,red t9e +ro+ert,es 7,t9 mone$ 9e 9ad borro7ed
8rom an o88,cemate, ,t ,s unclear 79ere 9e obta,ned t9e mone$ to re+a$ t9e loan. %8 9e +a,d ,t out o8 9,s
salar,es, t9en t9e mone$ ,s +art o8 t9e conCu*al assets
2/
and not e=clus,vel$ 9,s. 5roo8 on t9,s matter ,s o8
+aramount ,m+ortance cons,der,n* t9at ,n t9e determ,nat,on o8 t9e nature o8 a +ro+ert$ ac>u,red b$ a
+erson dur,n* covertrue, t9e controll,n* 8actor ,s t9e source o8 t9e mone$ ut,l,Bed ,n t9e +urc9ase.
T9e conCu*al nature o8 t9e +ro+ert,es not7,t9stand,n*, Qatr,naNs ,ndebtedness ma$ not be +a,d 8or 7,t9
t9em 9er obl,*at,on not 9av,n* been s9o7n b$ t9e +et,t,oners to be one o8 t9e c9ar*es a*a,nst t9e
conCu*al +artners9,+.
30
%n add,t,on to t9e 8act t9at 9er r,*9ts over t9e +ro+ert,es are merel$ ,nc9oate +r,or
to t9e l,>u,dat,on o8 t9e conCu*al +artners9,+, t9e consent o8 9er 9usband and 9er aut9or,t$ to ,ncur suc9
,ndebtedness 9ad not been alle*ed ,n t9e com+la,nt and +roven at t9e tr,al.
31
'urt9ermore, under t9e #,v,l #ode @be8ore t9e e88ect,v,t$ o8 t9e 'am,l$ #ode on Au*ust 3, 1(88A, a 7,8e
ma$ b,nd t9e conCu*al +artners9,+ onl$ 79en s9e +urc9ases t9,n*s necessar$ 8or t9e su++ort o8 t9e 8am,l$
or 79en s9e borro7s mone$ 8or t9e +ur+ose o8 +urc9as,n* t9,n*s necessar$ 8or t9e su++ort o8 t9e 8am,l$ ,8
t9e 9usband 8a,ls to del,ver t9e +ro+er sumG
32
79en t9e adm,n,strat,on o8 t9e conCu*al +artners9,+ ,s
trans8erred to t9e 7,8e b$ t9e courts
33
or b$ t9e 9usband
34
and 79en t9e 7,8e *,ves moderate donat,ons
8or c9ar,t$.
3,
Eav,n* 8a,led to establ,s9 t9at an$ o8 t9ese c,rcumstances occurred, t9e )on*s ma$ not b,nd
t9e conCu*al assets to ans7er 8or Qatr,naNs +ersonal obl,*at,on to t9em.
5et,t,onersN content,on t9at t9e r,*9ts o8 "antos and /oson as ,nnocent bu$ers at t9e +ubl,c auct,on sale
ma$ not be +reCud,ced, ,s, to a certa,n e=tent, val,d. A8ter all, ,n t9e absence o8 +roo8 t9at ,rre*ular,t,es
attended t9e sale, t9e same must be +resumed to 9ave been conducted ,n accordance 7,t9 la7. T9ere ,s,
9o7ever, a +ecul,ar 8actual c,rcumstance t9at *oes a*a,nst t9e *ra,n o8 t9at *eneral +resum+t,on t9e
+ro+ert,es lev,ed u+on and sold at t9e +ubl,c auct,on do not e=clus,vel$ belon* to t9e Cud*ment debtor.
T9us, t9e *u,d,n* Cur,s+rudence ,s as 8ollo7s?
T9e rule ,n e=ecut,on sales ,s t9at an e=ecut,on cred,tor ac>u,res no 9,*9er or better r,*9t
t9an 79at t9e e=ecut,on debtor 9as ,n t9e +ro+ert$ lev,ed u+on. T9e +urc9aser o8
+ro+ert$ on sale under e=ecut,on and lev$ ta6es as ass,*nee, onl$ as t9e Cud,c,al seller
+ossesses no t,tle ot9er t9an t9at 79,c9 7ould +ass b$ an ass,*nment b$ t9e o7ner. MAn
e=ecut,on +urc9aser *enerall$ ac>u,res suc9 estate or ,nterest as 7as vested ,n t9e
e=ecut,on debtor at t9e t,me o8 t9e se,Bure on e=ecut,on, and onl$ suc9 ,nterest, ta6,n*
merel$ a >u,t0cla,m o8 t9e e=ecut,on debtorNs t,tle, 7,t9out 7arrant$ on t9e +art o8 e,t9er
t9e e=ecut,on o88,cer or o8 t9e +art,es, 79et9er t9e +ro+ert$ ,s realt$ or +ersonalt$. T9,s
rule +reva,ls even ,8 a lar*er ,nterest ,n t9e +ro+ert$ 7as ,ntended to be sold. Accord,n*l$,
,8 t9e Cud*ment debtor 9ad no ,nterest ,n t9e +ro+ert$, t9e e=ecut,on +urc9aser ac>u,res
no ,nterest t9ere,n.M @5ac9eco vs. #ourt o8 A++eals, 104868(, Au*ust 31, 1(8!, 1&3
"#RA 382, 388038( >uot,n* 1aureano vs. "tevenson, 4& 59,l. 2&2G #abu9at vs. Anser$,
42 59,l. 1!G 'ore v. .anove, 18 #al. 436 and 21 Am. /ur., 140141. 3m+9as,s su++l,ed.A
A++l$,n* t9,s Cur,s+rudence, e=ecut,on +urc9asers "antos and /oson +ossess no r,*9ts 79,c9 ma$ r,se
above Cud*ment debtor Qatr,naNs ,nc9oate +ro+r,etar$ r,*9ts over t9e +ro+ert,es sold at +ubl,c auct,on.
A8ter all, a +erson can sell onl$ 79at 9e o7ns or ,s aut9or,Bed to sell and t9e bu$er can, as a
conse>uence, ac>u,re no more t9at 79at t9e seller can le*all$ trans8er.
36
But, ,nasmuc9 as t9e dec,s,on
,n #,v,l #ase No. 2224 ,s vo,d onl$ as 8ar as Romar,co and t9e conCu*al +ro+ert,es are concerned, t9e
same ma$ st,ll be e=ecuted b$ t9e "+ouses )on* a*a,nst Qatr,na Eenson +ersonall$ and e=clus,vel$.
T9e "+ouses )on* must return to /uan,to "antos and 1eonardo /oson t9e +urc9ase +r,ces o8 514&,
and 511(, res+ect,vel$, rece,ved b$ sa,d s+ouse 8rom t9e +ubl,c auct,on sale.
T9e redem+t,on made b$ "antos ,n t9e 8oreclosure +roceed,n* a*a,nst Romar,co and Qatr,na Eenson
8,led b$ t9e Rural Ban6 o8 5orac, s9ould, 9o7ever, be res+ected unless Romar,co e=erc,ses 9,s r,*9t o8
redem+t,on over t9e +ro+ert$ covered b$ Trans8er #ert,8,cate o8 T,tle No. 3(&1 ,n accordance 7,t9 la7.
)E3R3'4R3, t9e dec,s,ons o8 t9e a++ellate court and t9e lo7er court ,n #,v,l #ase No. 280( are
9ereb$ A''%R.3D subCect to t9e mod,8,cat,ons above stated. No costs.
"4 4RD3R3D.
'utierrez( !r.( +eliciano( Bidin and $avide( !r.( !!.( concur.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
'%R"T D%V%"%4N
G.R. No. 146,04 A8r9: /, 2002
*NRI L. CARL!, +et,t,oner,
vs.
$ANUEL T. ABELARD, res+ondent.
7A+UNAN, J.:
Assa,led ,n t9,s +et,t,on 8or rev,e7 on certiorari under Rule 4& o8 t9e Rules o8 #ourt ,s t9e dec,s,on o8 t9e
#ourt o8 A++eals dated November 1, 2 ,n #A0G.R. #V No. &4464 79,c9 reversed and set as,de t9e
dec,s,on o8 t9e Re*,onal Tr,al #ourt o8 ValenBuela, Branc9 1!2, and d,sm,ssed 8or ,nsu88,c,enc$ o8
ev,dence t9e com+la,nt 8or a sum o8 mone$ and dama*es 8,led b$ 9ere,n +et,t,oner Eonor,o #arlos a*a,nst
res+ondent .anuel Abelardo, 9,s son0,n0la7, and t9e latterFs 7,8e, .ar,a T9eresa #arlos0Abelardo.
5et,t,oner averred ,n 9,s com+la,nt 8,led on 4ctober 13, 1((4 t9at ,n 4ctober 1(8(, res+ondent and 9,s
7,8e .ar,a T9eresa #arlos0Abelardo a++roac9ed 9,m and re>uested 9,m to advance t9e amount o8
L"R2&,. 8or t9e +urc9ase o8 a 9ouse and lot located at S1((&2 #9estnut "treet, 3=ecut,ve Ee,*9ts
V,lla*e, 5arana>ue, .etro .an,la. To enable and ass,st t9e s+ouses conduct t9e,r marr,ed l,8e
,nde+endentl$ and on t9e,r o7n, +et,t,oner, ,n 4ctober 31, 1(8(, ,ssued a c9ec6 ,n t9e name o8 a certa,n
5ura ValleCo, seller o8 t9e +ro+ert$, 79o ac6no7led*ed rece,+t t9ereo8.
1
T9e amount 7as ,n 8ull +a$ment o8
t9e +ro+ert$.
)9en +et,t,oner ,n>u,red 8rom t9e s+ouses ,n /ul$ 1((1 as to t9e status o8 t9e amount 9e loaned to t9em,
t9e latter ac6no7led*ed t9e,r obl,*at,on but +leaded t9at t9e$ 7ere not $et ,n a +os,t,on to ma6e a de8,n,te
settlement o8 t9e same.
2
T9erea8ter, res+ondent e=+ressed v,olent res,stance to +et,t,onerFs ,n>u,r,es on
t9e amount to t9e e=tent o8 ma6,n* var,ous deat9 t9reats a*a,nst +et,t,oner.
3
4n Au*ust 24, 1((4, +et,t,oner made a 8ormal demand 8or t9e +a$ment o8 t9e amount o8 L"R2&,.
but t9e s+ouses 8a,led to com+l$ 7,t9 t9e,r obl,*at,on.
4
T9us, on 4ctober 13, 1((4, +et,t,oner 8,led a
com+la,nt 8or collect,on o8 a sum o8 mone$ and dama*es a*a,nst res+ondent and 9,s 7,8e be8ore t9e
Re*,onal Tr,al #ourt o8 ValenBuela, Branc9 1!2, doc6eted as #,v,l #ase No. 44(0V0(4. %n t9e com+la,nt,
+et,t,oner as6ed 8or t9e +a$ment o8 t9e L"R2&,. or 562&,., ,ts e>u,valent ,n 59,l,++,ne
currenc$ +lus le*al ,nterest 8rom date o8 e=tra0Cud,c,al demand.
&
5et,t,oner l,6e7,se cla,med moral and
e=em+lar$ dama*es, attorne$Fs 8ees and costs o8 su,t 8rom res+ondent.
6
As t9e$ 7ere se+arated ,n 8act 8or more t9an a $ear +r,or to t9e 8,l,n* o8 t9e com+la,nt, res+ondent and 9,s
7,8e 8,led se+arate ans7ers. .ar,a T9eresa #arlos0Abelardo adm,tted secur,n* a loan to*et9er 7,t9 9er
9usband, 8rom +et,t,oner.
!
"9e cla,med, 9o7ever, t9at sa,d loan 7as +a$able on a sta**ered bas,s so s9e
7as sur+r,sed 79en +et,t,oner demanded ,mmed,ate +a$ment o8 t9e 8ull amount.
8
%n 9,s se+arate Ans7er, res+ondent adm,tted rece,v,n* t9e amount o8 L"R2&,. but cla,med t9at?
===
a. De8endant @res+ondentA === rev,ved t9at ot9er7,se dormant construct,on 8,rm E.1. #AR14"
#4N"TRL#T%4N o8 9ere,n +la,nt,88 79,c9 su88ered tremendous setbac6 a8ter t9e assass,nat,on o8
"enator Ben,*no A>u,noG
b. )or6,n* da$ and n,*9t and almost be$ond 9uman endurance, de8endant devoted all 9,s e88orts
and s6,ll, used all 9,s bus,ness and +ersonal connect,on to be able to rev,ve t9e construct,on
bus,ness o8 +la,nt,88G
c. 1,ttle0b$0l,ttle, start,n* 7,t9 small construct,on bus,ness, de8endant 7as able to obta,n var,ous
construct,on Cobs us,n* t9e name E.1. #AR14" #4N"TRL#T%4N and t9e ,ncome der,ved
t9ere8rom 7ere de+os,ted ,n t9e name o8 suc9 8,rm o8 +la,nt,88,
d. De8endant === 7as made to bel,eve t9at t9e earn,n*s der,ved 8rom suc9 construct,on 7,ll be 8or
9,m and 9,s 8am,l$ s,nce 9e 7as t9e one 7or6,n* to secure t9e contract and ,ts com+let,on, 9e
7as allo7ed to use t9e 8ac,l,t,es o8 t9e +la,nt,88G
e. T9e +la,nt,88 see,n* t9e +ro*ress brou*9t about b$ de8endant === to 9,s com+an$ +ro+osed a
+ro8,t s9ar,n* sc9eme to t9e e88ect t9at all +roCects amount,n* to more t9an 51 m,ll,on s9all be
8or t9e account o8 +la,nt,88G lo7er amount s9all be 8or de8endantFs account but st,ll us,n* E.1.
#AR14" #4N"TRL#T%4N.
8. But, to clear account on +rev,ous construct,on contracts t9at brou*9t ,ncome to E.1.#AR14"
#4N"TRL#T%4N, out o8 79,c9 de8endant der,ved 9,s ,ncome, +la,nt,88 *ave t9e amount o8
L"R2&,. to de8endant to s>uare o88 account and to start t9e arran*ement ,n +ara*ra+9 @eA
su+raG
*. T9at, t9e sa,d L"R2&,. 7as never ,ntended as loan o8 de8endant. %t 7as 9,s s9are o8
,ncome on contracts obta,ned b$ de8endantG
===
(
Res+ondent den,ed 9av,n* made deat9 t9reats to +et,t,oner and b$ 7a$ o8 com+ulsor$ countercla,m, 9e
as6ed 8or moral dama*es 8rom +et,t,oner 8or caus,n* t9e al,enat,on o8 9,s 7,8eFs love and a88ect,on,
attorne$Fs 8ees and costs o8 su,t.
1
4n /une 26, 1((6, t9e Re*,onal Tr,al #ourt rendered a dec,s,on ,n 8avor o8 +et,t,oner, t9e d,s+os,t,ve
+ort,on o8 79,c9 reads?
01%.%+".%( Cud*ment ,s 9ereb$ rendered as 8ollo7s?
1. 4rder,n* t9e de8endants to +a$ +la,nt,88 t9e amount o8 L"R2&,. or ,ts e>u,valent ,n
59,l,++,ne #urrenc$ at t9e t,me o8 ,ts +a$ment, +lus le*al ,nterest t9ereon 8rom Au*ust 24, 1((4
unt,l 8ull$ +a,dG
2. 4rder,n* t9e de8endant .anuel T. Abelardo to +a$ t9e +la,nt,88 t9e amount o8 5&,.
re+resent,n* moral dama*es and t9e 8urt9er amount o8 5&,. as e=em+lar$ dama*esG and
3. 4rder,n* t9e de8endants to +a$ t9e +la,nt,88 t9e amount o8 51,. as attorne$Fs 8ees, +lus
t9e costs o8 su,t.
)" ".$%.%$.
11
Res+ondent a++ealed t9e dec,s,on o8 t9e tr,al court to t9e #ourt o8 A++eals. 4n November 1, 2, t9e
#ourt o8 A++eals reversed and set as,de t9e tr,al courtFs dec,s,on and d,sm,ssed t9e com+la,nt 8or
,nsu88,c,enc$ o8 ev,dence to s9o7 t9at t9e subCect amount 7as ,ndeed loaned b$ +et,t,oner to res+ondent
and 9,s 7,8e. T9e #ourt o8 A++eals 8ound t9at t9e amount o8 L"R2&,. 7as res+ondentFs s9are ,n t9e
+ro8,ts o8 E.1. #arlos #onstruct,on. T9e d,s+os,t,ve +ort,on o8 t9e #ourt o8 A++ealsF dec,s,on states?
01%.%+".%( +rem,ses cons,dered, t9e Dec,s,on o8 t9e Re*,onal Tr,al #ourt o8 ValenBuela,
Branc9 1!2 ,n #,v,l #ase No. 44(0V0(4 ,s 9ereb$ R3V3R"3D and "3T A"%D3 and a ne7 one
entered D%".%""%NG t9e #om+la,nt 8or ,nsu88,c,enc$ o8 ev,dence.
T9e cla,m 8or dama*es b$ de8endant0a++ellant ,s l,6e7,se D%".%""3D, also 8or ,nsu88,c,enc$ o8
ev,dence, because o8 9,s 8a,lure to +resent substant,al ev,dence to +rove t9at +la,nt,880a++ellee
caused t9e de8endant0s+ousesF se+arat,on.
#osts a*a,nst t9e +la,nt,880a++ellee.
)" ".$%.%$.
12
A mot,on 8or recons,derat,on o8 t9e above dec,s,on 9av,n* been den,ed on, +et,t,oner brou*9t t9,s a++eal
ass,*n,n* t9e 8ollo7,n* errors?
TE3 #4LRT 4' A553A1" 3RR3D %N '%ND%NG %N"L''%#%3NT 3V%D3N#3 T4 5R4V3 TEAT
TE3 A.4LNT 4' L"R2&,. )A" A 14AN 4BTA%N3D B- 5R%VAT3 R3"54ND3NT AND
E%" )%'3 'R4. 53T%T%4N3R.
TE3 #4LRT 4' A553A1" 3RR3D %N E41D%NG TEAT TE3 L"R2&,. )A" G%V3N A"
5R%VAT3 R3"54ND3NTF" "EAR3 %N TE3 5R4'%T" 4' E.1. #AR14" #4N"TRL#T%4N, %N#.
AND TEAT TE3 '%1%NG 4' TE3 #4.51A%NT %" A E4AO.
TE3 #4LRT 4' A553A1" 3RR3D %N NL11%'-%NG TE3 A)ARD 4' DA.AG3" '4R 1A#Q
4' 5R44' TE3R34'.
)e 8,nd mer,t ,n t9e +et,t,on.
As *leaned 8rom t9e records, t9e 8ollo7,n* 8acts are und,s+uted? @1A t9ere 7as a c9ec6 ,n t9e amount o8
L"R2&,. ,ssued b$ +et,t,onerG @2A t9,s amount 7as rece,ved b$ res+ondent and 9,s 7,8e and *,ven to
a certa,n 5ura ValleCo 8or t9e 8ull +a$ment o8 a 9ouse and lot located at S1((&2 #9estnut "treet, 3=ecut,ve
Ee,*9ts V,lla*e, 5arana>ue, .etro .an,laG @3A t9,s 9ouse and lot became t9e conCu*al d7ell,n* o8
res+ondent and 9,s 7,8eG and @4A res+ondentFs 7,8e e=ecuted an ,nstrument ac6no7led*,n* t9e loan but
79,c9 res+ondent d,d not s,*n.
To +rove 9,s cla,m t9at t9e amount 7as ,n t9e nature o8 a loan or an advance 9e e=tended to res+ondent
and 9,s 7,8e, +et,t,oner +resented Ban6erFs Trust #9ec6 No. 33! ,n t9e amount o8 L"R2&,. 9e
,ssued on 4ctober 31, 1(8( to 5ura ValleCo.
13
Ee also ,ntroduced ,n ev,dence an ,nstrument e=ecuted b$
res+ondentFs 7,8e on /ul$ 31, 1((1 ac6no7led*,n* 9er and 9er 9usbandFs accountab,l,t$ to +et,t,oner 8or
t9e sa,d amount 79,c9 7as advanced ,n +a$ment o8 a 9ouse and lot located at S1((&2 #9estnut "treet,
3=ecut,ve Ee,*9ts "ubd,v,s,on, 5arana>ue.
14
A 8ormal demand letter b$ counsel 8or +et,t,oner dated
Au*ust 24, 1((4 sent to and rece,ved b$ res+ondent 7as also on record.
1&
All t9ese +,eces o8 ev,dence, ta6en to*et9er 7,t9 res+ondentFs adm,ss,on t9at 9e and 9,s 7,8e rece,ved t9e
subCect amount and used t9e same to +urc9ase t9e,r 9ouse and lot, su88,c,entl$ +rove b$ a +re+onderance
o8 ev,dence +et,t,onerFs cla,m t9at t9e amount o8 L"R2&,. 7as reall$ ,n t9e nature o8 a loan.
Res+ondent tr,ed to rebut +et,t,onerFs ev,dence b$ cla,m,n* t9at t9e L"R2&,. 7as not a loan but 9,s
s9are ,n t9e +ro8,ts o8 E.1. #arlos #onstruct,on. Ee alle*ed t9at 9e rece,ved mone$ 8rom +et,t,oner
amount,n* to almost 53 m,ll,on as 9,s s9are ,n t9e +ro8,ts o8 t9e cor+orat,on. To +rove t9,s, 9e +resented
ten @1A Ban6 o8 t9e 59,l,++,ne %slands @B5%A c9ec6s alle*edl$ *,ven to 9,m b$ +et,t,oner.
16
Ee ar*ued t9at ,8
,ndeed, 9e and 9,s 7,8e 7ere ,ndebted to +et,t,oner, t9e latter could 9ave eas,l$ deducted t9e amount o8
t9e sa,d loan 8rom 9,s s9are o8 t9e +ro8,ts.
Res+ondent 8a,ls to conv,nce t9,s #ourt.
All t9e c9ec6s +resented b$ res+ondent, 79,c9 9e cla,ms to be 9,s s9are ,n t9e +ro8,ts o8 +et,t,onerFs
com+an$, 7ere all ,n t9e account o8 E.1. #arlos #onstruct,on.
1!
4n t9e ot9er 9and, t9e Ban6erFs Trust
#9ec6 ,n t9e amount o8 L"R2&,. 7as dra7n 8rom t9e +ersonal account o8 +et,t,oner.
18
Assum,n* to
be true t9at t9e c9ec6s +resented b$ res+ondent 7ere 9,s +ro8,ts 8rom t9e cor+orat,on, t9en all t9e more
does t9,s +rove t9at t9e amount o8 L"R2&,. 7as not +art o8 suc9 +ro8,ts because ,t 7as ,ssued b$
+et,t,oner 8rom 9,s o7n account. %ndeed, ,8 suc9 amount 7as res+ondentFs s9are o8 t9e +ro8,ts, t9en t9e
same s9ould 9ave been ,ssued under t9e account o8 E.1. #arlos #onstruct,on.
.oreover, res+ondent 8a,led to substant,ate 9,s cla,m t9at 9e ,s ent,tled to t9e +ro8,ts and ,ncome o8 t9e
cor+orat,on. T9ere 7as no s9o7,n* t9at res+ondent 7as a stoc69older o8 E.1. #arlos #onstruct,on. E,s
name does not a++ear ,n t9e Art,cles o8 %ncor+orat,on as 7ell as t9e 4r*an,Bat,onal 5ro8,le o8 sa,d
com+an$ e,t9er as stoc69older or o88,cer.
1(
Not be,n* a stoc69older, 9e cannot be ent,tled to t9e +ro8,ts or
,ncome o8 sa,d cor+orat,on. Ne,t9er d,d res+ondent +rove t9at 9e 7as an em+lo$ee or an a*ent so as to
be ent,tled to salar,es or comm,ss,ons 8rom t9e cor+orat,on.
)e >uote 7,t9 8avor t9e d,s>u,s,t,on o8 t9e tr,al court on t9,s +o,nt?
3arl$ ,n t,me, ,t must be noted t9at +a$ment o8 +ersonal debts contracted b$ t9e 9usband or t9e
7,8e be8ore or dur,n* t9e marr,a*e s9all not be c9ar*ed to t9e conCu*al +artners9,+ e=ce+t ,nso8ar
as t9e$ redounded to t9e bene8,t o8 t9e 8am,l$. T9e de8endants never den,ed t9at t9e c9ec6 o8
L"R2&,. 7as used to +urc9ase t9e subCect 9ouse and lot. T9e$ do not den$ t9at t9e same
served as t9e,r conCu*al 9ome, t9us bene8,t,n* t9e 8am,l$. 4n t9e same +r,nc,+le,
ac6no7led*ment o8 t9e loan made b$ t9e de8endant07,8e b,nds t9e conCu*al +artners9,+ s,nce ,ts
+roceeds redounded to t9e bene8,t o8 t9e 8am,l$. Eence, de8endant09usband and de8endant07,8e
are Co,ntl$ and severall$ l,able ,n t9e +a$ment o8 t9e loan.
De8endant09usband cannot alle*e as a de8ense t9at t9e amount o8 L" R2&,. 7as rece,ved
as 9,s s9are ,n t9e ,ncome or +ro8,ts o8 t9e cor+orat,on and not as a loan. ',rstl$, de8endant0
9usband does not a++ear to be a stoc69older nor an em+lo$ee nor an a*ent o8 t9e cor+orat,on,
E. 1. #arlos #onstruct,on, %nc. ",nce 9e ,s not a stoc69older, 9e 9as no r,*9t to +art,c,+ate ,n t9e
,ncome or +ro8,ts t9ereo8. %n t9e same manner t9at as 9e ,s not an em+lo$ee nor an a*ent o8 E. 1.
#arlos #onstruct,on, %nc., 9e 9as no r,*9t to rece,ve an$ salar$ or comm,ss,on t9ere8rom.
"econdl$, t9e amount advanced 8or t9e +urc9ase o8 t9e 9ouse and lot came 8rom t9e +ersonal
account o8 t9e +la,nt,88. %8, ,ndeed, ,t 7as to be construed as de8endant09usbandFs s9are ,n t9e
+ro8,ts o8 t9e cor+orat,on, t9e c9ec6s s9ould come 8rom t9e cor+orat,onFs account and not 8rom
t9e +la,nt,88Fs +ersonal account, cons,der,n* t9at t9e cor+orat,on 9as a +ersonal,t$ se+arate and
d,st,nct 8rom t9at o8 ,ts stoc69olders and o88,cers.23,phi2.n4t
3ven *rant,n* t9at t9e c9ec6s amount to L" R3,.. *,ven b$ t9e +la,nt,88 to t9e de8endant0
s+ouses 7as t9e,r s9are ,n t9e +ro8,ts o8 t9e cor+orat,on, st,ll t9ere ,s no su88,c,ent ev,dence to
establ,s9 t9at t9e L" R2&,. ,s to be treated s,m,larl$. De8endant09usband ,n ,nvo6,n* t9e
de8ense o8 com+ensat,on ar*ued t9at ,8 ,ndeed t9e$ 7ere ,ndebted to t9e +la,nt,88, t9e latter could
9ave a++l,ed t9e,r s9are ,n t9e +roceeds or ,ncome o8 t9e cor+orat,on to t9e concurrent amount o8
t9e alle*ed loan, ,nstead o8 *,v,n* t9e amount o8 53,,. to t9em. T9,s ar*ument ,s
untenable. Art,cle 12!8 o8 t9e #,v,l #ode +rov,des t9at com+ensat,on s9all ta6e +lace 79en t7o
+ersons, ,n t9e,r o7n r,*9t, are debtors and cred,tors o8 eac9 ot9er. As ,ts ,nd,cates, com+ensat,on
,s a sort o8 balanc,n* bet7een t7o obl,*at,ons. %n t9e ,nstant case, t9e +la,nt,88 and t9e de8endant0
9usband are not debtors and cred,tors o8 eac9 ot9er. 3ven *rant,n* t9at t9e de8endant09usbandFs
cla,m to t9e +ro8,ts o8 t9e cor+orat,on ,s Cust,8,ed, st,ll com+ensat,on cannot e=t,n*u,s9 9,s loan
obl,*at,on to t9e +la,nt,88 because under suc9 assum+t,on, t9e de8endant ,s deal,n* 7,t9 t9e
cor+orat,on and not 7,t9 t9e +la,nt,88 ,n 9,s +ersonal ca+ac,t$. Eence, com+ensat,on cannot ta6e
+lace.
T9e #ourt o8 A++eals, t9us, erred ,n 8,nd,n* t9at res+ondentFs l,ab,l,t$ 7as not +roved b$ +re+onderance o8
ev,dence. 4n t9e contrar$, t9e ev,dence adduced b$ +et,t,oner su88,c,entl$ establ,s9ed 9,s cla,m t9at t9e
L"R2&,. 9e advanced to res+ondent and 9,s 7,8e 7as a loan.
T9e loan ,s t9e l,ab,l,t$ o8 t9e conCu*al +artners9,+ +ursuant to Art,cle 121 o8 t9e 'am,l$ #ode?
Art,cle 121. T9e conCu*al +artners9,+ s9all be l,able 8or?
===
@2A All debts and obl,*at,ons contracted dur,n* t9e marr,a*e b$ t9e des,*nated adm,n,strator0
s+ouse 8or t9e bene8,t o8 t9e conCu*al +artners9,+ o8 *a,ns, or b$ bot9 s+ouses or b$ one o8 t9em
7,t9 t9e consent o8 t9e ot9erG
@3A Debts and obl,*at,ons contracted b$ e,t9er s+ouse 7,t9out t9e consent o8 t9e ot9er to t9e
e=tent t9at t9e 8am,l$ ma$ 9ave been bene8,tedG
%8 t9e conCu*al +artners9,+ ,s ,nsu88,c,ent to cover t9e 8ore*o,n* l,ab,l,t,es, t9e s+ouses s9all be
sol,dar,l$ l,able 8or t9e un+a,d balance 7,t9 t9e,r se+arate +ro+ert,es.
===
)9,le res+ondent d,d not and re8used to s,*n t9e ac6no7led*ment e=ecuted and s,*ned b$ 9,s 7,8e,
undoubtedl$, t9e loan redounded to t9e bene8,t o8 t9e 8am,l$ because ,t 7as used to +urc9ase t9e 9ouse
and lot 79,c9 became t9e conCu*al 9ome o8 res+ondent and 9,s 8am,l$. Eence, not7,t9stand,n* t9e
alle*ed lac6 o8 consent o8 res+ondent, under Art. 21 o8 t9e 'am,l$ #ode, 9e s9all be sol,dar,l$ l,able 8or
suc9 loan to*et9er 7,t9 9,s 7,8e.
)e also 8,nd su88,c,ent bas,s 8or t9e a7ard o8 dama*es to +et,t,oner, contrar$ to t9e 8,nd,n*s o8 t9e #ourt o8
A++eals t9at +et,t,oner ,s not ent,tled t9ereto.
5et,t,onerFs alle*at,ons o8 verbal and 7r,tten t9reats d,rected a*a,nst 9,m b$ res+ondent ,s dul$ su++orted
b$ ev,dence on record. Ee +resented t7o 7,tnesses, %r,neo 5aCar,n and Rand$ Rosal, 79o test,8,ed on
se+arate ,nc,dents 79ere t9reats 7ere made b$ res+ondent a*a,nst +et,t,oner.
Rand$ Rosal, dr,ver o8 +et,t,oner, declared t9at around t9ree oF cloc6 ,n t9e a8ternoon o8 "e+tember 1&,
1((1, 9e 7as sent b$ res+ondentFs 7,8e on an errand to del,ver t9e ac6no7led*ment letter to res+ondent
8or 9,m to s,*n. Res+ondent d,d not s,*n t9e ac6no7led*ment and ,nstead, 7rote a letter addressed to
+et,t,oner t9reaten,n* 9,m. Ee narrated 79at too6 +lace t9erea8ter?
===
J )9en $ou 7ere re>uested b$ .a. T9eresa #. Abelardo to br,n* a letter to 9ere,n de8endant
.anuel Abelardo 8or 9,m to s,*n t9e same, do $ou 6no7 79et9er t9at letter 7as actuall$ s,*ned b$
.anuel AbelardoK
A No, s,r.
===
J And 79at 9a++ened 79en .anuel Abelardo re8used to s,*n t9at letter com,n* 8rom t9e
ot9er de8endantK
A Ee made me 7a,t and 9e +re+ared a letter to .r. Eonor,o #arlos, s,r.
===
J )9ere 7ere $ou at t9e t,me 79en t9,s de8endant .anuel Abelardo +re+ared t9,s letterK
A %n 9,s 9ouse, s,r.
J And 79ere d,d 9e actuall$ +re+are t9at letterK
A At t9e d,n,n* table, s,r.
J Eo7 8ar 7ere $ou 8rom .anuel Abelardo 8rom t9e d,n,n* table at t9e t,me 79en 9e 7as
+re+ar,n* a letter.
A Around 1 meter, s,r.
J And do $ou 6no7 79ere ,n, 79at +art,cular +a+er d,d .r. Abelardo +re+are or 7r,te t9,s
letterK
A Ee 7rote ,t ,n a .an,la envelo+e, s,r.
===
J )9at 9a++ened a8ter .anuel Abelardo +re+ared t9,s letter ,n a .an,la envelo+eK
A Ee *ot a small envelo+e and +laced t9ere t9e name o8 .r. #arlos as t9e addressee, s,r.
===
J A8ter +re+ar,n* t9,s letter on a .an,la envelo+e and t9en *ett,n* anot9er envelo+e and
7r,t,n* on ,t t9e address o8 9ere,n +la,nt,88, 79at d,d t9e de8endant .anuel Abelardo do, ,8 an$K
A Ee ,nstructed me to ma,l t9e letter 79,c9 9e +re+ared, s,r.
===
J And d,d $ou actuall$ accede to t9e re>uest o8 9ere,n de8endant .anuel Abelardo 8or $ou to
ma,l t9at letter to 3n*r. #arlosK
A % *ot t9e envelo+e but % d,d not ma,l ,t, s,r.
===
J .a$ 7e 6no7 8rom $ou t9e reason 79$ $ou d,d not ma,l sa,d letterK
A Because 3n*r. #arlos m,*9t become 8r,*9tened, s,r.
J )9at d,d $ou do 7,t9 t9at letter, alt9ou*9 $ou d,d not ma,l ,tK
A % 6e+t ,t, s,r.
===
J And 79at d,d $ou do ne=t a8ter 6ee+,n* t9e letter 8or several da$sK
A % *ave t9e letter +ersonall$ to 3n*r. #arlos, s,r.
J )9at +rom+ted $ou to *,ve t9at letter to 3n*r. #arlos ,nstead o8 ma,l,n* ,tK
A "o t9at 3n*r. #arlos can +re+are, s,r.
= = =
2
T9,s ,nc,dent 7as dul$ entered and recorded ,n t9e 5ol,ce Blotter on 4ctober !, 1((1 b$ a certa,n "*t.
#as,le o8 t9e ValenBuela 5ol,ce "tat,on.
21
A +9otoco+$ o8 t9,s 7r,tten t9reat 7as also attac9ed to t9e
5ol,ce Re+ort and +resented ,n ev,dence.
22
Anot9er 7,tness, %r,neo 5aCar,n, recounted an ,nc,dent 79,c9 occurred ,n t9e a8ternoon o8 .a$ 2&, 1((4, to
7,t?
===
J No7 .r. ),tness, on .a$ 2&( 1((4 at around 2?3 ,n t9e a8ternoon do $ou recall 79ere $ou
7ere on t9at +art,cular date and t,meK
A % 7as at B.'. Eomes, 5arana>ue, s,r.
J )9at 7ere $ou do,n* at t9at t,meK
A % 7as 7a,t,n* 8or "ar*,e #orn,sta, s,r.
===
J ),ll $ou +lease narrate to t9,s Eonorable #ourt t9at unusual ,nc,dentK
A .anuel Abelardo +assed b$ and 79en 9e sa7 me 9e called me. % a++roac9ed 9,m 79,le 9e
7as t9en on board 9,s car and as6ed me 79o 7as m$ com+an,on, s,r.
J And 79at 7as $our ans7er to 9,mK
A % told 9,m ,t 7as "ar*,e, s,r.
J And 79at 7as 9,s re+l$ ,8 an$K
A Ee a*a,n as6ed me ,8 % 9ave ,n m$ com+an$ one o8 9,s c9,ldren, s,r.
J )9at 7as $our re+l$K
A % ans7ered none, s,r.
J %nc,dentall$ .r. ),tness, 79ere or ,n 79at +art,cular +lace d,d t9,s conversat,on bet7een
$ou and .anuel T. Abelardo ta6e +laceK
A 5ar6,n* Area o8 Academ$ %, Gov. "antos corner A*u,rre "t., s,r.
J No7, 79at else 9a++ened a8ter $ou tal6:ed; 7,t9 t9,s .anuel T. AbelardoK
A Ee sa,d % ma$ be 8ool,n* 9,m because 9e sa,d % once 8ooled 9,m 79en % ran a7a$ 7,t9 9,s
c9,ldren 79,c9 9e ,s *o,n* to ta6e bac6, s,r.
J And 79at 7as $our re+l$ to t9atK
A % ans7ered % d,d not do t9at and 9e sa,d t9at once 9e d,scovered t9at % d,d ,t 9e 7ould bo=
me, s,r.
J )9at else ,8 an$ d,d 9e tell $ou at t9at t,meK
A Ee as6ed me 79o ,nstructed me, s,r.
J %nstructed $ou about 79atK
A To run a7a$ 7,t9 t9e c9,ldren, s,r.
J And 79at 7as $our re+l$K
A None, 9e 7as t9e one 79o sa,d M7as ,t $our Ate 5u++etKM But % d,d not ans7er, s,r.
J )9at 9a++ened ne=t 79en $ou 8a,led to ans7erK
A M4r m$ 8at9er ,n la7KM
J And 79en 9e sa,d 9,s 8at9er ,n la7 to 79om 7as 9e re8err,n* at t9at t,meK
A .r. Eonor,o #arlos, s,r.
J A8ter ment,on,n* t9e name o8 9,s 8at9er0,n0la7 .r. Eonor,o #arlos 79at 9a++ened ne=tK
A Ee told me M"ab,9,n mo sa b,$enan 6o babar,l,n 6o s,$a +a* na6,ta 6o s,$a.M
J )9ere 7as .anuel Abelardo at t9at +art,cular t,me 79en 9e told t9,s t9reaten,n* remar6
a*a,nst Eonor,o #arlosK
A Ee 7as ,ns,de 9,s car ,n A*u,rre "t., s,r.
J Eo7 about $ou 79ere 7ere $ou a++ro=,matel$ at t9at +art,cular t,me 79en 9e narrated t9at
messa*e to $ou t9reaten,n* t9e 9ere,n +la,nt,88K
A % 7as outs,de loo6,n* ,n 9,s ve9,cle at A*u,rre "t., s,r.
===
J And 79at 7as $our re+l$ or react,on 79en 9e made t9,s t9reaten,n* remar6sK
A None, because 9e le8t. % 7as le8t be9,nd, s,r.
23
T9,s test,mon$ 7as ,n +art corroborated b$ an entr$ dated .a$ 28, 1((4 ,n t9e 5ol,ce Blotter o8 t9e
5arana>ue 5ol,ce "tat,on narrat,n* t9e a8orement,oned ,nc,dent.
24
T9e test,mon,es o8 t9ese 7,tnesses on t9e t7o se+arate ,nc,dents o8 t9reat are +os,t,ve, d,rect and
stra,*9t8or7ard. 5et,t,oner also declared on t9e 7,tness stand t9at on several occas,ons, 9e rece,ved
tele+9one calls 8rom res+ondent curs,n* and t9reaten,n* 9,m.
2&
T9ese ,nc,dents o8 t9reat 7ere also
ev,denced b$ a letter 7r,tten b$ res+ondentFs 7,8e and addressed to 9er 8at9er0,n0la7 @8at9er o8
res+ondentA.
26
T9e letter recounted t9e ,nstances 79en t9reats 7ere made b$ 9er 9usband a*a,nst
+et,t,oner, +art,cularl$, t9e ,nc,dent re+orted b$ 5aCar,n and t9e t9reats made b$ res+ondent t9rou*9 t9e
tele+9one.
2!
All t9ese c,rcumstances su88,c,entl$ establ,s9 t9at t9reats 7ere d,rected b$ res+ondent a*a,nst +et,t,oner
Cust,8$,n* t9e a7ard o8 moral dama*es ,n 8avor o8 +et,t,oner. Eo7ever, t9e #ourt 8,nds t9e amount
o8 5&,. as moral dama*es too e=orb,tant under t9e c,rcumstances and t9e same ,s reduced
to 5&,.. T9e e=em+lar$ dama*es and attorne$Fs 8ees are l,6e7,se reduced to 52,.
and 5&,., res+ect,vel$.
)*ERE"RE, t9e +et,t,on ,s 9ereb$ GRANTED and t9e dec,s,on o8 t9e #ourt o8 A++eals ,n #A GR0#V
No. &4464 ,s $DI"IED ,n t9at res+ondent ,s ordered to +a$ +et,t,oner t9e amounts o8 @1A L"R2&, or
,ts e>u,valent ,n 59,l,++,ne currenc$ at t9e t,me o8 +a$ment, +lus le*al ,nterest 8rom Au*ust 4, 1((4, unt,l
8ull$ +a,dG @2A 5&,. as moral dama*esG @3A 52,. as e=em+lar$ dama*esG and @4A 5&,.
as attorne$Fs 8ees.23,phi2.n4t
! RDERED.
$avide( !r.( Puno( and 5nares-)antiago( !!.( concur.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
"3#4ND D%V%"%4N
G.R. No. 14,222 A8r9: 24, 200/
!+U!E! RBERT BUAD %&' VENU! BUAD, 5et,t,oners,
vs.
T*E *NRABLE CURT " A++EAL!, "ormer D9v959o&, %&' R$UL NICL, Res+ondents.
D 3 # % " % 4 N
Be8ore t9,s #ourt ,s a +et,t,on 8or cert,orar, assa,l,n* t9e Dec,s,on
1
o8 t9e #ourt o8 A++eals ,n #A0G.R. #V
No. 4!2( and ,ts Resolut,on den$,n* t9e mot,on 8or recons,derat,on t9ereo8.
T9e case stemmed 8rom t9e 8ollo7,n* 8actual bac6dro+?
4n 3 A+r,l 1(84, "+ouses Roberto and Venus Buado @+et,t,onersA 8,led a com+la,nt 8or dama*es a*a,nst
3rl,nda N,col @3rl,ndaA 7,t9 Br%&;< 1/ o8 t9e Re*,onal Tr,al #ourt @RT#A o8 Bacoor, #av,te, doc6eted as
#,v,l #ase No. 84033. "a,d act,on or,*,nated 8rom 3rl,nda N,colFs c,v,l l,ab,l,t$ ar,s,n* 8rom t9e cr,m,nal
o88ense o8 slander 8,led a*a,nst 9er b$ +et,t,oners.
4n 6 A+r,l 1(8!, t9e tr,al court rendered a dec,s,on order,n* 3rl,nda to +a$ dama*es. T9e d,s+os,t,ve
+ort,on reads?
)9ere8ore, Cud*ment ,s 9ereb$ rendered ,n 8avor o8 t9e +la,nt,88:s; and a*a,nst de8endant order,n* t9e
latter to +a$ t9e 8ormer t9e amount o8 t9,rt$ t9ousand @53,.A +esos as moral dama*es, 8,ve
t9ousand @5&,.A +esos as attorne$Fs 8ees and l,t,*at,on e=+enses, anot9er 8,ve t9ousand @5&,.A
+esos as e=em+lar$ dama*es and t9e cost o8 su,t.
2
"a,d dec,s,on 7as a88,rmed, success,vel$, b$ t9e #ourt o8 A++eals and t9,s #ourt. %t became 8,nal and
e=ecutor$ on & .arc9 1((2.
4n 14 4ctober 1((2, t9e tr,al court ,ssued a 7r,t o8 e=ecut,on, a +ort,on o8 79,c9 +rov,des?
No7, t9ere8ore, $ou are commanded t9at o8 t9e *oods and c9attels o8 t9e de8endant 3rl,nda N,col, or 8rom
9er estates or le*al 9e,rs, $ou cause t9e sum ,n t9e amount o8 8ort$ t9ousand +esos @54,.A,
59,l,++,ne #urrenc$, re+resent,n* t9e moral dama*es, attorne$Fs 8ees and l,t,*at,on e=+enses and
e=em+lar$ dama*es and t9e cost o8 su,t o8 t9e +la,nt,88 as,de 8rom $our la78ul 8ees on t9,s e=ecut,on and
do l,6e7,se return t9,s 7r,t ,nto court 7,t9,n s,=t$ @6A da$s 8rom date, 7,t9 $our +roceed,n*s endorsed
9ereon.
But ,8 su88,c,ent +ersonal +ro+ert$ cannot be 8ound 79ereo8 to sat,s8$ t9,s e=ecut,on and la78ul 8ees
t9ereon, t9en $ou are commanded t9at o8 t9e lands and bu,ld,n*s o8 sa,d de8endant $ou ma6e t9e sa,d
sum o8 mone$ ,n t9e manner re>u,red b$ t9e Rules o8 #ourt, and ma6e return o8 $our +roceed,n*s 7,t9
t9,s 7r,t 7,t9,n s,=t$ @6A da$s 8rom date.
3
',nd,n* 3rl,nda N,colFs +ersonal +ro+ert,es ,nsu88,c,ent to sat,s8$ t9e Cud*ment, t9e De+ut$ "9er,88 ,ssued a
not,ce o8 lev$ on real +ro+ert$ on e=ecut,on addressed to t9e Re*,ster o8 Deeds o8 #av,te. T9e not,ce o8
lev$ 7as annotated on t9e Trans8er #ert,8,cate o8 T,tle No. T012&322.
4n 2 November 1((2, a not,ce o8 s9er,88Fs sale 7as ,ssued.
T7o @2A da$s be8ore t9e +ubl,c auct,on sale on 28 /anuar$ 1((3, an a88,dav,t o8 t9,rd0+art$ cla,m 8rom one
Arnul8o '. 'ulo 7as rece,ved b$ t9e de+ut$ s9er,88 +rom+t,n* +et,t,oners to +ut u+ a s9er,88Fs ,ndemn,t$
bond. T9e auct,on sale +roceeded 7,t9 +et,t,oners as t9e 9,*9est b,dder.
4n 4 'ebruar$ 1((3, a cert,8,cate o8 sale 7as ,ssued ,n 8avor o8 +et,t,oners.
Almost a $ear later on 2 'ebruar$ 1((4, Romulo N,col @res+ondentA, t9e 9usband o8 3rl,nda N,col, 8,led a
com+la,nt 8or annulment o8 cert,8,cate o8 sale and dama*es 7,t9 +rel,m,nar$ ,nCunct,on a*a,nst +et,t,oners
and t9e de+ut$ s9er,88. Res+ondent, as +la,nt,88 t9ere,n, alle*ed t9at t9e de8endants, no7 +et,t,oners,
conn,ved and d,rectl$ lev,ed u+on and e=ecute 9,s real +ro+ert$ 7,t9out e=9aust,n* t9e +ersonal
+ro+ert,es o8 3rl,nda N,col. Res+ondent averred t9at t9ere 7as no +ro+er +ubl,cat,on and +ost,n* o8 t9e
not,ce o8 sale. 'urt9ermore, res+ondent cla,med t9at 9,s +ro+ert$ 79,c9 7as valued at 5&,. 7as
onl$ sold at a Mver$ lo7 +r,ceM o8 5&1,68&., 79ereas t9e Cud*ment obl,*at,on o8 3rl,nda N,col 7as
onl$ 54,.. T9e case 7as ass,*ned to Br%&;< 21 o8 t9e RT# o8 %mus, #av,te.
%n res+onse, +et,t,oners 8,led a mot,on to d,sm,ss on t9e *rounds o8 lac6 o8 Cur,sd,ct,on and t9at t9e$ 9ad
acted on t9e bas,s o8 a val,d 7r,t o8 e=ecut,on. #,t,n* De 1eon v. "alvador,
4
+et,t,oners cla,med t9at
res+ondent s9ould 9ave 8,led t9e case 7,t9 Br%&;< 1/ 79ere t9e Cud*ment or,*,nated and 79,c9 ,ssued
t9e order o8 e=ecut,on, 7r,t o8 e=ecut,on, not,ce o8 lev$ and not,ce o8 s9er,88Fs sale.
%n an 4rder
&
dated 18 A+r,l 1((4, t9e RT# d,sm,ssed res+ondentFs com+la,nt and ruled t9at Br%&;<
1/ 9as Cur,sd,ct,on over t9e case, t9us?
As correctl$ +o,nted out b$ t9e de8endants, an$ 8la7 ,n t9e ,m+lementat,on o8 t9e 7r,t o8 e=ecut,on b$ t9e
,m+lement,n* s9er,88 must be brou*9t be8ore t9e court ,ssu,n* t9e 7r,t o8 e=ecut,on. Bes,des, t9ere are t7o
@2A remed,es o+en to t9e +la,nt,88, ,8 9e 8eels t9at t9e +ro+ert$ be,n* lev,ed on belon*s to 9,m and not to
t9e Cud*ment debtor. T9e 8,rst remed$ ,s to 8,le a t9,rd0+art$ cla,m. %8 9e 8a,ls to do t9,s, a r,*9t ,s reserved
to 9,m to v,nd,cate 9,s cla,m over t9e +ro+ert$ b$ an$ +ro+er act,on. But certa,nl$, t9,s ,s not t9e +ro+er
act,on reserved to t9e +la,nt,88 to v,nd,cate 9,s cla,m over t9e +ro+ert$ ,n >uest,on to be vent,lated be8ore
t9,s court. As earl,er stated, t9,s case s9ould 9ave been addressed to Branc9 1(, RT# Bacoor as ,t 7as
t9at court 79,c9 ,ssued t9e 7r,t o8 e=ecut,on.
6
Res+ondent moved 8or recons,derat,on but ,t 7as den,ed on 26 /ul$ 1((4.
4n a++eal, t9e #ourt o8 A++eals reversed t9e tr,al court and 9eld t9at Br%&;< 21 9as Cur,sd,ct,on to act on
t9e com+la,nt 8,led b$ a++ellant. T9e d,s+os,t,ve +ort,on reads?
)E3R3'4R3, t9e 4rders a++ealed 8rom are 9ereb$ R3V3R"3D and "3T A"%D3. T9,s case ,s
R3.AND3D to t9e Re*,onal Tr,al #ourt o8 %mus, #av,te, Branc9 21 8or 8urt9er +roceed,n*s.
"4 4RD3R3D.
!
5et,t,onersF mot,on 8or recons,derat,on 7as den,ed on 23 Au*ust 2. Eence, t9e ,nstant +et,t,on
attr,but,n* *rave abuse o8 d,scret,on on t9e +art o8 t9e #ourt o8 A++eals.
A +et,t,on 8or cert,orar, ,s an e=traord,nar$ remed$ t9at ,s ado+ted to correct errors o8 Cur,sd,ct,on
comm,tted b$ t9e lo7er court or >uas,0Cud,c,al a*enc$, or 79en t9ere ,s *rave abuse o8 d,scret,on on t9e
+art o8 suc9 court or a*enc$ amount,n* to lac6 or e=cess o8 Cur,sd,ct,on. )9ere t9e error ,s not one o8
Cur,sd,ct,on, but o8 la7 or 8act 79,c9 ,s a m,sta6e o8 Cud*ment, t9e +ro+er remed$ s9ould be a++eal. %n
add,t,on, an ,nde+endent act,on 8or cert,orar, ma$ be ava,led o8 onl$ 79en t9ere ,s no a++eal or an$ +la,n,
s+eed$ and ade>uate remed$ ,n t9e ord,nar$ course o8 la7.
8
No79ere ,n t9e +et,t,on 7as ,t s9o7n t9at t9e Cur,sd,ct,on o8 t9e #ourt o8 A++eals 7as >uest,oned. T9e
,ssue devolves on 79et9er t9e 9usband o8 t9e Cud*ment debtor ma$ 8,le an ,nde+endent act,on to +rotect
t9e conCu*al +ro+ert$ subCect to e=ecut,on. T9e alle*ed error t9ere8ore ,s an error o8 Cud*ment 79,c9 ,s a
+ro+er subCect o8 an a++eal.
Nevert9eless, even ,8 7e 7ere to treat t9,s +et,t,on as one 8or rev,e7, t9e case s9ould st,ll be d,sm,ssed on
substant,ve *rounds.
5et,t,oners ma,nta,n t9at Br%&;< 1/ reta,ned Cur,sd,ct,on over ,ts Cud*ment to t9e e=clus,on o8 all ot9er co0
ord,nate courts 8or ,ts e=ecut,on and all ,nc,dents t9ereo8, ,n l,ne 7,t9 De 1eon v. "alvador. 5et,t,oners
,ns,st t9at res+ondent, 79o ,s t9e 9usband o8 t9e Cud*ment debtor, ,s not t9e Mt9,rd +art$M contem+lated ,n
"ect,on 1! @no7 "ect,on 16A, Rule 3( o8 t9e Rules o8 #ourt, 9ence a se+arate act,on need not be 8,led.
'urt9ermore, +et,t,oners assert t9at t9e obl,*at,on o8 t9e 7,8e redounded to t9e bene8,t o8 t9e conCu*al
+artners9,+ and c,ted aut9or,t,es to t9e e88ect t9at t9e 9usband ,s l,able 8or t9e tort comm,tted b$ 9,s 7,8e.
Res+ondent on t9e ot9er 9and merel$ avers t9at t9e dec,s,on o8 t9e #ourt o8 A++eals ,s su++orted b$
substant,al ev,dence and ,n accord 7,t9 la7 and Cur,s+rudence.
(
Ver,l$, t9e >uest,on o8 Cur,sd,ct,on could be resolved t9rou*9 a +ro+er ,nter+retat,on o8 "ect,on 16, Rule 3(
o8 t9e Rules o8 #ourt, 79,c9 reads?
"ec. 16. 5roceed,n*s 79ere +ro+ert$ cla,med b$ t9,rd +erson.
%8 t9e +ro+ert$ lev,ed on ,s cla,med b$ an$ +erson ot9er t9an t9e Cud*ment obl,*or or 9,s a*ent, and suc9
+erson ma6es an a88,dav,t o8 9,s t,tle t9ereto or r,*9t to t9e +ossess,on t9ereo8, stat,n* t9e *rounds o8 suc9
r,*9t or t,tle, and serves t9e same u+on t9e o88,cer ma6,n* t9e lev$ and a co+$ t9ereo8 u+on t9e Cud*ment
obl,*ee, t9e o88,cer s9all not be bound to 6ee+ t9e +ro+ert$, unless suc9 Cud*ment obl,*ee, on demand o8
t9e o88,cer, 8,les a bond a++roved b$ t9e court to ,ndemn,8$ t9e t9,rd0+art$ cla,mant ,n a sum not less t9an
t9e value o8 t9e +ro+ert$ lev,ed on. %n case o8 d,sa*reement as to suc9 value, t9e same s9all be
determ,ned b$ t9e court ,ssu,n* t9e 7r,t o8 e=ecut,on. No cla,m 8or dama*es 8or t9e ta6,n* or 6ee+,n* o8
t9e +ro+ert$ ma$ be en8orced a*a,nst t9e bond unless t9e act,on t9ere8or ,s 8,led 7,t9,n one 9undred
t7ent$ @12A da$s 8rom t9e date o8 t9e 8,l,n* o8 t9e bond.
T9e o88,cer s9all not be l,able 8or dama*es 8or t9e ta6,n* or 6ee+,n* o8 t9e +ro+ert$, to an$ t9,rd0+art$
cla,mant ,8 suc9 bond ,s 8,led. Not9,n* 9ere,n conta,ned s9all +revent suc9 cla,mant or an$ t9,rd +erson
8rom v,nd,cat,n* 9,s cla,m to t9e +ro+ert$ ,n a se+arate act,on, or +revent t9e Cud*ment obl,*ee 8rom
cla,m,n* dama*es ,n t9e same or a se+arate act,on a*a,nst a t9,rd0+art$ cla,mant 79o 8,led a 8r,volous or
+la,nl$ s+ur,ous cla,m.
)9en t9e 7r,t o8 e=ecut,on ,s ,ssued ,n 8avor o8 t9e Re+ubl,c o8 t9e 59,l,++,nes, or an$ o88,cer dul$
re+resent,n* ,t, t9e 8,l,n* o8 suc9 bond s9all not be re>u,red, and ,n case t9e s9er,88 or lev$,n* o88,cer ,s
sued 8or dama*es as a result o8 t9e lev$, 9e s9all be re+resented b$ t9e "ol,c,tor General and ,8 9eld
l,able t9ere8or, t9e actual dama*es adCud*ed b$ t9e court s9all be +a,d b$ t9e Nat,onal Treasurer out o8
suc9 8unds as ma$ be a++ro+r,ated 8or t9e +ur+ose. @3m+9as,s "u++l,edA
A+art 8rom t9e remed$ o8 tercer,a ava,lable to a t9,rd0+art$ cla,mant or to a stran*er to t9e 8oreclosure su,t
a*a,nst t9e s9er,88 or o88,cer e88ect,n* t9e 7r,t b$ serv,n* on 9,m an a88,dav,t o8 9,s t,tle and a co+$ t9ereo8
u+on t9e Cud*ment cred,tor, a t9,rd0+art$ cla,mant ma$ also resort to an ,nde+endent se+arate act,on, t9e
obCect o8 79,c9 ,s t9e recover$ o8 o7ners9,+ or +ossess,on o8 t9e +ro+ert$ se,Bed b$ t9e s9er,88, as 7ell as
dama*es ar,s,n* 8rom 7ron*8ul se,Bure and detent,on o8 t9e +ro+ert$. %8 a se+arate act,on ,s t9e recourse,
t9e t9,rd0+art$ cla,mant must ,nst,tute ,n a 8orum o8 com+etent Cur,sd,ct,on an act,on, d,st,nct and se+arate
8rom t9e act,on ,n 79,c9 t9e Cud*ment ,s be,n* en8orced, even be8ore or 7,t9out need o8 8,l,n* a cla,m ,n
t9e court t9at ,ssued t9e 7r,t.
1
2a,phi2.z,6
A t9,rd0+art$ cla,m must be 8,led a +erson ot9er t9an t9e Cud*ment debtor or 9,s a*ent. %n ot9er 7ords,
onl$ a stran*er to t9e case ma$ 8,le a t9,rd0+art$ cla,m.
T9,s leads us to t9e >uest,on? %s t9e 9usband, 79o 7as not a +art$ to t9e su,t but 79ose conCu*al +ro+ert$
,s be,n* e=ecuted on account o8 t9e ot9er s+ouse be,n* t9e Cud*ment obl,*or, cons,dered a Mstran*erKM
%n determ,n,n* 79et9er t9e 9usband ,s a stran*er to t9e su,t, t9e c9aracter o8 t9e +ro+ert$ must be ta6en
,nto account. %n .ar,ano v. #ourt o8 A++eals,
11
79,c9 7as later ado+ted ,n "+ouses #9,n* v. #ourt o8
A++eals,
12
t9,s #ourt 9eld t9at t9e 9usband o8 t9e Cud*ment debtor cannot be deemed a Mstran*erM to t9e
case +rosecuted and adCud*ed a*a,nst 9,s 7,8e 8or an obl,*at,on t9at 9as redounded to t9e bene8,t o8 t9e
conCu*al +artners9,+.
13
4n t9e ot9er 9and, ,n Na*u,t v. #ourt o8 A++eals
14
and "$ v. D,sca$a,
1&
t9e #ourt
stated t9at a s+ouse ,s deemed a stran*er to t9e act,on 79ere,n t9e 7r,t o8 e=ecut,on 7as ,ssued and ,s
t9ere8ore Cust,8,ed ,n br,n*,n* an ,nde+endent act,on to v,nd,cate 9er r,*9t o8 o7ners9,+ over 9,s e=clus,ve
or +ara+9ernal +ro+ert$.la,phil.net
5ursuant to *ariano 9o7ever, ,t must 8urt9er be settled 79et9er t9e obl,*at,on o8 t9e Cud*ment debtor
redounded to t9e bene8,t o8 t9e conCu*al +artners9,+ or not.
5et,t,oners ar*ue t9at t9e obl,*at,on o8 t9e 7,8e ar,s,n* 8rom 9er cr,m,nal l,ab,l,t$ ,s c9ar*eable to t9e
conCu*al +artners9,+. )e do not a*ree.
T9ere ,s no d,s+ute t9at contested +ro+ert$ ,s conCu*al ,n nature. Art,cle 122 o8 t9e 'am,l$ #ode
16
e=+l,c,tl$
+rov,des t9at +a$ment o8 +ersonal debts contracted b$ t9e 9usband or t9e 7,8e be8ore or dur,n* t9e
marr,a*e s9all not be c9ar*ed to t9e conCu*al +artners9,+ e=ce+t ,nso8ar as t9e$ redounded to t9e bene8,t
o8 t9e 8am,l$.
Lnl,6e ,n t9e s$stem o8 absolute commun,t$ 79ere l,ab,l,t,es ,ncurred b$ e,t9er s+ouse b$ reason o8 a
cr,me or7uasi-delict ,s c9ar*eable to t9e absolute commun,t$ o8 +ro+ert$, ,n t9e absence or ,nsu88,c,enc$
o8 t9e e=clus,ve +ro+ert$ o8 t9e debtor0s+ouse, t9e same advanta*e ,s not accorded ,n t9e s$stem o8
conCu*al +artners9,+ o8 *a,ns. T9e conCu*al +artners9,+ o8 *a,ns 9as no dut$ to ma6e advance +a$ments
8or t9e l,ab,l,t$ o8 t9e debtor0s+ouse.
5arent9et,call$, b$ no stretc9 o8 ,ma*,nat,on can ,t be concluded t9at t9e c,v,l obl,*at,on ar,s,n* 8rom t9e
cr,me o8 slander comm,tted b$ 3rl,nda redounded to t9e bene8,t o8 t9e conCu*al +artners9,+.
To re,terate, conCu*al +ro+ert$ cannot be 9eld l,able 8or t9e +ersonal obl,*at,on contracted b$ one s+ouse,
unless some advanta*e or bene8,t ,s s9o7n to 9ave accrued to t9e conCu*al +artners9,+.
1!
%n Guadalu+e v. Tronco,
18
t9,s #ourt 9eld t9at t9e car 79,c9 7as cla,med b$ t9e t9,rd +art$ com+la,nant to
be conCu*al +ro+ert$ 7as be,n* lev,ed u+on to en8orce Ma Cud*ment 8or su++ortM 8,led b$ a t9,rd +erson, t9e
t9,rd0+art$ cla,m o8 t9e 7,8e ,s +ro+er s,nce t9e obl,*at,on 79,c9 ,s +ersonal to t9e 9usband ,s c9ar*eable
not on t9e conCu*al +ro+ert$ but on 9,s se+arate +ro+ert$.
Eence, t9e 8,l,n* o8 a se+arate act,on b$ res+ondent ,s +ro+er and Cur,sd,ct,on ,s t9us vested on Br%&;<
21. 5et,t,oners 8a,led to s9o7 t9at t9e #ourt o8 A++eals comm,tted *rave abuse o8 d,scret,on ,n remand,n*
t9e case toBr%&;< 21 8or 8urt9er +roceed,n*s.
)*ERE"RE, t9e +et,t,on ,s DI!$I!!ED. T9e Dec,s,on o8 t9e #ourt o8 A++eals ,s A""IR$ED. #osts
a*a,nst +et,t,oners.
"4 4RD3R3D.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
'%R"T D%V%"%4N
G.R. No. 160362 $%. 3, 2006
!8o-5e5 2!E+*INE $END#A G 1 *ENR0 G, 5et,t,oners,
vs.
LENARD 0A$ANE, Res+ondent.
D 3 # % " % 4 N
+ANGANIBAN, CJ:
5ro+ert$ +urc9ased b$ s+ouses dur,n* t9e e=,stence o8 t9e,r marr,a*e ,s +resumed to be conCu*al ,n
nature. T9,s +resum+t,on stands, absent an$ clear, cate*or,cal, and conv,nc,n* ev,dence t9at t9e +ro+ert$
,s +ara+9ernal. #onCu*al +ro+ert$ cannot be 9eld l,able 8or t9e +ersonal obl,*at,on contracted b$ one
s+ouse, unless some advanta*e or bene8,t ,s s9o7n to 9ave accrued to t9e conCu*al +artners9,+.
T9e #ase
Be8ore t9e #ourt ,s a 5et,t,on 8or Rev,e7
1
under Rule 4& o8 t9e Rules o8 #ourt, c9allen*,n* t9e November
22, 22 Dec,s,on
2
and t9e "e+tember 1!, 23 Resolut,on
3
o8 t9e #ourt o8 A++eals @#AA ,n #A0GR #V
No. 6(3(. T9e assa,led Dec,s,on d,s+osed as 8ollo7s?
M)E3R3'4R3, +rem,ses cons,dered, t9e Dec,s,on a++ealed 8rom ,s 9ereb$ R3V3R"3D and "3T
A"%D3. T9e "9er,88Ns #ert,8,cate o8 "ale dated Au*ust 12, 1(81 and t9e ',nal "9er,88Ns #ert,8,cate o8 "ale
dated Au*ust 26, 1(82 are declared NL11 and V4%D.M
4
T9e #A den,ed recons,derat,on ,n ,ts "e+tember 1!, 23 Resolut,on.
T9e 'acts
T9e und,s+uted 8actual 8,nd,n*s o8 t9e #A are as 8ollo7s?
M%nvolved ,n t9e su,t ,s a !& s>uare meters @s,cA +arcel o8 lot located at Res. "ec. NQN, Ba*u,o #,t$,
re*,stered ,n t9e name o8 .ur,el 5uca$ -amane, 7,8e o8 1eonardo -amane, :res+ondent; 9ere,n, under
Trans8er #ert,8,cate o8 T,tle No. 124(1.
MAs a result o8 a mot,on 8or e=ecut,on o8 a c9ar*,n* l,en 8,led b$ Att$. Gu,llermo '. De GuBman ,n #,v,l
#ase No. 1841, ent,tled N'lorence 5uca$ De GomeB, 3ls,e 5uca$ Q,7as and .ur,el 5uca$ -amane v.
#$+ress #or+orat,on,N 79,c9 sa,d counsel 9andled 8or t9e +la,nt,88s t9ere,n, 9ere,na8ter collect,vel$ re8erred
to as t9e 5uca$ s,sters, t9e subCect +ro+ert$ 7as lev,ed to sat,s8$ t9e l,en 8or attorne$Ns 8ees ,n t9e amount
o8 51,. T9e sa,d +ro+ert$ 7as sc9eduled to be sold at +ubl,c auct,on on Au*ust 11, 1(81.
M'our da$s +r,or to t9e auct,on sale, :res+ondent; 8,led a T9,rd05art$ #la,m 7,t9 t9e 488,ce o8 t9e 5rov,nc,al
"9er,88 to sto+ t9e +ubl,c auct,on on t9e *round t9at t9e subCect +ro+ert$ ,s conCu*al +ro+ert$ and,
t9ere8ore, s9ould not be 9eld ans7erable 8or t9e +ersonal obl,*at,on o8 t9e 5uca$ s,sters. Eo7ever, t9e
"9er,88 +roceeded 7,t9 t9e auct,on sale des+,te :res+ondentNs; +rotest. T9e subCect +ro+ert$ 7as sold to
s+ouses /ose+9,ne :and; Eenr$ Go @or :+et,t,oners;A as 9,*9est b,dder. No redem+t,on 9av,n* been made
dur,n* t9e one0$ear +er,od, a ',nal "9er,88Ns #ert,8,cate o8 "ale 7as eventuall$ ,ssued on Au*ust 26, 1(82
conve$,n* and trans8err,n* t9e sa,d +ro+ert$ to :+et,t,oners;.
M4n "e+tember 4, 1(84, :res+ondent; 8,led a #om+la,nt 7,t9 t9e Re*,onal Tr,al #ourt o8 Ba*u,o #,t$,
doc6eted as #,v,l #ase No. 41!0R, a*a,nst :+et,t,oners; and "9er,88 .el*ar 8or annulment and cancellat,on
o8 auct,on sale u+on t9e same *round stated ,n t9e abovement,oned t9,rd0+art$ cla,m. #,t,n* t9e 4rder o8
t9e Re*,onal Tr,al #ourt o8 Ba*u,o #,t$, Branc9 V ,n 1R# #ase No. 2288, 79,c9 ordered t9e cancellat,on
o8 T#T No. 124(1 and d,rected t9e Re*,ster o8 Deeds to ,ssue ne7 t,tle ,n t9e name o8 /ose+9,ne Go = =
=, :+et,t,oners; moved to d,sm,ss t9e com+la,nt on t9e *round o8 res Cud,cata. %n t9e 4rder dated
November 28, 1(84, t9e mot,on 7as den,ed b$ t9e tr,al court.
M%n t9e,r Ans7er 8,led on December 1, 1(84, :+et,t,oners; den,ed t9e mater,al alle*at,ons o8 t9e com+la,nt
and ,nter+osed t9e 8ollo7,n* s+ec,al a88,rmat,ve de8enses? t9at t9e cause o8 act,on 7as barred b$ +r,or
Cud*mentG t9at :res+ondent; 9as not +ursued an$ la78ul remed$ to annul t9e e=ecut,on +roceed,n*G t9at
t9ere ,s no 8la7 or ,rre*ular,t$ ,n t9e auct,on saleG and t9at s,nce t9e e=ecut,on sale 7as made ,n
accordance 7,t9 "ect,on 21, Rule 3( o8 t9e Rev,sed Rules o8 #ourt, ,t ,s deemed 8,nal and an$ ,rre*ular,t$
comm,tted ,n t9e course t9ereo8 7,ll not v,t,ate ,ts val,d,t$.
M4n December 28, 1(84, .ur,el l,6e7,se lod*ed a #om+la,nt 8or Dama*es, doc6eted as #,v,l #ase No.
&&0R, a*a,nst :+et,t,oners; and Att$. Gu,llermo De GuBman alle*,n*, ,n *,st, 8raud, m,sre+resentat,on,
man,+ulat,on and unla78ul acts o8 t9e de8endants ,n caus,n* t9e lev$ o8 t9e subCect +ro+ert$ 7,t9 an
est,mated commerc,al value o852, as a*a,nst a c9ar*,n* l,en ,n t9e amount o8 51,.
M%n ,ts .a$ 2!, 1(8& 4rder, t9e tr,al court ordered t9e Co,nt 9ear,n* o8 #,v,l #ases Nos. 41!0R and &&0R.
4n Au*ust 3, 1(8&, .ur,el 7as declared non0su,ted 8or 8a,lure to a++ear ,n t9e 9ear,n* des+,te due
not,ce. As a conse>uence, #,v,l #ase No. &&0R 7as d,sm,ssed on 4ctober 1&, 1(8&.M
&
%n ,ts Dec,s,on
6
dated .arc9 2&, 1((8, t9e Re*,onal Tr,al #ourt @RT#A o8 Ba*u,o #,t$, Branc9 4, 9eld t9at
t9e subCect +arcel o8 land 7as t9e +ara+9ernal +ro+ert$ o8 t9e late .ur,el 5uca$ -amane 00 s+ouse o8
res+ondent 00 and 7as not t9e,r conCu*al +ro+ert$. T9e a++earance o8 9,s name on t9e Trans8er #ert,8,cate
o8 T,tle @T#TA 7as deemed to be merel$ descr,+t,ve o8 t9e c,v,l status o8 t9e re*,stered o7ner, 9,s late 7,8e.
Eence, 8,nd,n* t9at 9e 9ad no le*al stand,n* to >uest,on t9e auct,on sale or to +ra$ 8or ,ts annulment or
cancellat,on, t9e RT# d,sm,ssed t9e case 8or lac6 o8 mer,t.
L+on rece,+t o8 t9e RT# Dec,s,on on A+r,l 8, 1((8, res+ondent 8,led a .ot,on,
!
,n 79,c9 9e +ra$ed t9at 9e
be allo7ed to 8,le 9,s .ot,on 8or Recons,derat,on o8 t9e Dec,s,on, on or be8ore .a$ 3, 1((8. T9e tr,al
court *ranted
8
9,s .ot,onG rece,ved t9e .ot,on 8or Recons,derat,on,
(
79,c9 7as 8,led on .a$ 28, 1((8G and
eventuall$ den,ed ,t ,n ,ts 4rder dated /une &, 1((8.
1
Ee t9en elevated t9e matter to t9e #A on /une 1&,
1((8.
Rul,n* o8 t9e #ourt o8 A++eals
T9e #A reversed t9e RT#Ns Dec,s,on. T9e "9er,88Ns #ert,8,cate o8 "ale dated Au*ust 12, 1(81, and t9e
',nal "9er,88Ns #ert,8,cate o8 "ale dated Au*ust 26, 1(82, 7ere declared null and vo,d.
Accord,n* to t9e a++ellate court, +ro+ert$ ac>u,red dur,n* marr,a*e ,s +resumed to be conCu*al, unless
t9e e=clus,ve 8unds o8 one s+ouse are s9o7n to 9ave been used 8or t9e +ur+ose. T9at t9e land 7as
ac>u,red dur,n* t9e s+ousesN coverture 7as su88,c,entl$ establ,s9ed b$ t9e T#T and t9e Deed o8 Absolute
"ale, bot9 ,nd,cat,n* t9at .ur,el 5uca$ -amane 7as Mmarr,ed to 1eonardo -amaneMG and b$ t9e
und,s+uted test,mon$ o8 t9e +rev,ous o7ner, 3u*ene 5uca$. Because o8 +et,t,onersN 8a,lure to establ,s9
t9at t9e land ,n >uest,on 9ad been ac>u,red b$ .ur,el us,n* 9er e=clus,ve 8unds, t9e #A concluded t9at
t9e contested land 7as conCu*al +ro+ert$.
T9e a++ellate court 8urt9er 9eld t9us?
M= = = :T;9e d,s+uted +ro+ert$ be,n* a conCu*al +ro+ert$ o8 :res+ondent; and 9,s 7,8e, and absent an$
s9o7,n* o8 some advanta*e or bene8,t t9at accrued to t9e,r conCu*al +artners9,+ 8rom t9e transact,on
bet7een t9e 5uca$ s,sters and Att$. De GuBman, t9e +ubl,c auct,on sale o8 t9e subCect +ro+ert$ ,n 8avor o8
:+et,t,oners; ,s null and vo,d.M
11
Eence, t9,s 5et,t,on.
12
%ssues
5et,t,oners subm,t t9e 8ollo7,n* ,ssues 8or our cons,derat,on?
M%. T9e #ourt o8 A++eals *ravel$ erred ,n ta6,n* co*n,Bance o8 t9e a++eal and ,n not d,sm,ss,n*
t9e same, des+,te t9e 8act t9at t9e res+ondent 8a,led to +er8ect 9,s a++eal 7,t9,n t9e 1&0da$
re*lementar$ +er,od set b$ t9e Rules o8 #ourt.
M%%. T9e #ourt o8 A++eals *ravel$ erred ,n declar,n* t9e subCect +ro+ert$ as conCu*al +ro+ert$,
des+,te t9e e=,stence o8 clear ev,dence s9o7,n* t9at t9e subCect +ro+ert$ ,s t9e e=clus,ve
+ara+9ernal +ro+ert$ o8 .ur,el 79o, even dur,n* 9er l,8et,me, al7a$s cla,med t9e sa,d +ro+ert$ as
9er o7n e=clus,ve +ara+9ernal +ro+ert$ and not as +ro+ert$ co0o7ned 7,t9 9er 9usband, t9e
res+ondent 9ere,n.2avvphil.net
M%%%. T9e #ourt o8 A++eals, assum,n*, e= *rat, ar*ument,, t9at t9e subCect +ro+ert$ ,s conCu*al
+ro+ert$ bet7een res+ondent and .ur,el, *ravel$ erred ,n rul,n* t9at t9e same cannot ans7er 8or
t9e c9ar*,n* l,en o8 Att$. Gu,llermo de GuBman ,n #,v,l #ase No. 1841.M
13
%n t9e ma,n, t9e$ +os,t t7o ,ssues. T9e$ ra,se, first, t9e +rocedural >uest,on o8 79et9er t9e #A erred ,n
*,v,n* due course to res+ondentNs la+sed a++ealG and, second, t9e substant,ve ,ssue o8 79et9er t9e
subCect +ro+ert$ ,s conCu*al or +ara+9ernal.
T9e #ourtNs Rul,n*
T9e 5et,t,on 9as no mer,t.
5rocedural %ssue?
)9et9er Res+ondentNs A++eal "9ould Be G,ven Due #ourse
5et,t,oners contend t9at t9e #A erred ,n *,v,n* due course to t9e a++eal 8,led b$ res+ondent be$ond t9e
1&0da$ re*lementar$ +er,od.
#oncededl$, 9e rece,ved a co+$ o8 t9e RT# Dec,s,on on A+r,l 8, 1((8. Ee 9ad, t9ere8ore, unt,l A+r,l 23,
1((8, 7,t9,n 79,c9 to 8,le an a++eal. 5r,or to t9e latter date, 9o7ever, 9e moved t9at 9,s ne7 counsel be
allo7ed to 8,le a mot,on 8or recons,derat,on on .a$ 3, 1((8. %t 7as eventuall$ 8,led on .a$ 28, 1((8, but
7as den,ed. Res+ondent subse>uentl$ 8,led a Not,ce o8 A++eal on /une 1&, 1((8. B$ t9,s t,me, t9e
or,*,nal +er,od to a++eal 9ad e=+,red. %t s9ould be clear t9at t9e Rules +ro9,b,t an e=tens,on to 8,le a
mot,on 8or recons,derat,on.
14
T9e +er8ect,on o8 an a++eal ,n t9e manner and 7,t9,n t9e +er,od +rescr,bed b$ t9e Rules o8 #,v,l
5rocedure ,s not onl$ mandator$, but also Cur,sd,ct,onalG and t9e la+se o8 t9e a++eal +er,od o8 8,8teen da$s
de+r,ves a court o8 t9e Cur,sd,ct,on to alter a 8,nal Cud*ment.
1&
T9ere 9ave been e=ce+t,ons, 9o7ever, ,n 79,c9 t9e #ourt d,s+ensed 7,t9 tec9n,cal ,n8,rm,t,es and *ave
due course to tard$ a++eals. %n some o8 t9ose ,nstances, t9e +resence o8 an$ Cust,8$,n* c,rcumstance
reco*n,Bed b$ la7 00 suc9 as 8raud, acc,dent, m,sta6e or e=cusable ne*l,*ence 00 +ro+erl$ vested t9e
Cud*e 7,t9 d,scret,on to a++rove or adm,t an a++eal 8,led out o8 t,me.
16
%n ot9er ,nstances, la+sed a++eals
7ere allo7ed ,n order to serve substant,al Cust,ce, u+on cons,derat,on o8 aA matters o8 l,8e, l,bert$, 9onor or
+ro+ert$G bA t9e e=,stence o8 s+ec,al or com+ell,n* c,rcumstancesG cA t9e mer,ts o8 t9e caseG dA causes not
ent,rel$ attr,butable to t9e 8ault or ne*l,*ence o8 t9e +art$ t9at 7ould be 8avored b$ t9e sus+ens,on o8 t9e
rulesG eA t9e 8a,lure to s9o7 t9at t9e rev,e7 be,n* sou*9t 7as merel$ 8r,volous and d,lator$G and 8A t9e 8act
t9at t9e ot9er +art$ 7ould not be unCustl$ +reCud,ced.
1!
%ndeed, ,n some e=ce+t,onal cases, t9e #ourt 9as allo7ed t9e rela=at,on o8 t9e rules re*ulat,n* t9e
re*lementar$ +er,ods o8 a++eal. T9ese e=ce+t,ons 7ere c,ted ,n .an,la .emor,al 5ar6 #emeter$ v.
#A,
18
8rom 79,c9 7e >uote?
M%n Ramos vs. Ba*asao, t9e #ourt e=cused t9e dela$ o8 8our da$s ,n t9e 8,l,n* o8 t9e not,ce o8 a++eal
because t9e >uest,oned dec,s,on o8 t9e tr,al court 9ad been served u+on a++ellant Ramos at a t,me 79en
9er counsel o8 record 7as alread$ dead. T9e ne7 counsel could onl$ 8,le t9e a++eal 8our da$s a8ter t9e
+rescr,bed re*lementar$ +er,od 7as over. %n Re+ubl,c vs. #ourt o8 A++eals, t9e #ourt allo7ed t9e
+er8ect,on o8 an a++eal b$ t9e Re+ubl,c des+,te t9e dela$ o8 s,= da$s to +revent a *ross m,scarr,a*e o8
Cust,ce s,nce t9e Re+ubl,c stood to lose 9undreds o8 9ectares o8 land alread$ t,tled ,n ,ts name and 9ad
s,nce t9en been devoted 8or +ubl,c +ur+oses. %n 4lacao vs. Nat,onal 1abor Relat,ons #omm,ss,on, a tard$
a++eal 7as acce+ted cons,der,n* t9at t9e subCect matter ,n ,ssue 9ad t9ereto8ore been Cud,c,all$ settled
7,t9 8,nal,t$ ,n anot9er case, and a d,sm,ssal o8 t9e a++eal 7ould 9ave 9ad t9e e88ect o8 t9e a++ellant
be,n* ordered t7,ce to ma6e t9e same re+arat,on to t9e a++ellee.M
1(
)e bel,eve t9at a sus+ens,on o8 t9e Rules ,s s,m,larl$ 7arranted ,n t9e +resent controvers$. )e 9ave
care8ull$ stud,ed t9e mer,ts o8 t9e case and noted t9at t9e rev,e7 be,n* sou*9t 9as not been s9o7n to be
merel$ 8r,volous and d,lator$. T9e #ourt 9as come to t9e conclus,on t9at t9e Dec,s,on o8 t9e RT#, Branc9
4 @,n #,v,l #ase No. 41!0RA, must be set as,de. %t 7ould be 8ar better and more +rudent to atta,n t9e ends
o8 Cust,ce, rat9er t9an to d,s+ose o8 t9e case on tec9n,cal,t$ and cause *rave ,nCust,ce ,n t9e +rocess.
T9us, 7e 7ould rat9er e=cuse a tec9n,cal la+se and a88ord res+ondent a rev,e7 o8 t9e case on a++eal.
"ubstant,ve %ssue?
5ara+9ernal or #onCu*alK
T9e +urc9ase o8 t9e +ro+ert$ 9ad been concluded ,n 1(6!, be8ore t9e 'am,l$ #ode too6 e88ect on Au*ust
3, 1(88.
2
Accord,n*l$, t9e transact,on 7as a+tl$ covered b$ t9e t9en *overn,n* +rov,s,ons o8 t9e Ne7
#,v,l #ode. 4n t9e latter bas,s, t9ere8ore, 7e s9all resolve t9e ,ssue o8 t9e nature o8 t9e contested
+ro+ert$.
Art,cle 16 o8 t9e Ne7 #,v,l #ode +rov,des t9at Mall +ro+ert$ o8 t9e marr,a*e ,s +resumed to belon* to t9e
conCu*al +artners9,+, unless ,t be +roved t9at ,t +erta,ns e=clus,vel$ to t9e 9usband or to t9e 7,8e.M
21
As
a conditio sine 7ua non 8or t9e o+erat,on o8 t9,s art,cle ,n 8avor o8 t9e conCu*al +artners9,+,
22
t9e +art$ 79o
,nvo6es t9e +resum+t,on must 8,rst +rove t9at t9e +ro+ert$ 7as ac>u,red dur,n* t9e marr,a*e.
23
%n ot9er 7ords, t9e +resum+t,on ,n 8avor o8 conCu*al,t$ does not o+erate ,8 t9ere ,s no s9o7,n* o8 ,hen t9e
+ro+ert$ alle*ed to be conCu*al 7as ac>u,red.
24
.oreover, t9e +resum+t,on ma$ be rebutted onl$ 7,t9
stron*, clear, cate*or,cal and conv,nc,n* ev,dence.
2&
T9ere must be str,ct +roo8 o8 t9e e=clus,ve o7ners9,+
o8 one o8 t9e s+ouses,
26
and t9e burden o8 +roo8 rests u+on t9e +art$ assert,n* ,t.
2!
T9e #A comm,tted no error ,n declar,n* t9at t9e +arcel o8 land belon*ed to t9e conCu*al +artners9,+ o8
"+ouses .ur,el and 1eonardo -amane. T9e$ ac>u,red ,t 8rom 3u*ene 5uca$ on 'ebruar$ 2!, 1(6!,
28
or
s+ec,8,call$ dur,n* t9e marr,a*e.
2(
)e t9en 8ollo7 t9e rule t9at +roo8 o8 t9e ac>u,s,t,on o8 t9e subCect
+ro+ert$ dur,n* a marr,a*e su88,ces to render t9e statutor$ +resum+t,on o+erat,ve. %t ,s clear enou*9 t9at
t9e +resentl$ d,s+uted +,ece o8 land +erta,ns to t9e conCu*al +artners9,+.
5et,t,oners concede t9at t9e +ro+ert$ 7as ac>u,red dur,n* t9e subs,stence o8 t9e marr,a*e o8 .ur,el to
res+ondent.
3
Nonet9eless, t9e$ ,ns,st t9at ,t belon*ed e=clus,vel$ to 9er 8or t9e 8ollo7,n* reasons?
+irst. Res+ondent never den,ed nor o++osed 9er cla,m ,n #,v,l #ase No. &&0R, 79,c9 s9e 9ad
8,led dur,n* 9er l,8et,meG or ,n AG0GR "+. No. 1616 @ent,tled 8*uriel Pucay 5amane v. !osephine
'o8A, t9at t9e d,s+uted +arcel o8 land 7as 9er e=clus,ve +ara+9ernal +ro+ert$. T9e$ alle*e t9at 9,s
8a,lure to 8,le a den,al or o++os,t,on ,n t9ose cases ,s tantamount to a Cud,c,al adm,ss,on t9at
m,l,tates a*a,nst 9,s belated cla,m.
)econd. T9e Deed o8 Absolute "ale o8 t9e +ro+ert$ ,s ,n t9e sole name o8 .ur,el. 5et,t,oners +os,t
t9at, 9ad t9e s+ouses Co,ntl$ +urc9ased t9,s +,ece o8 land, t9e document s9ould 9ave ,nd,cated
t9,s 8act or carr,ed t9e name o8 res+ondent as bu$er.
Third. T9e 8a,lure o8 res+ondent to redeem t9e +arcel o8 land 7,t9,n t9e redem+t,on +er,od a8ter
t9e auct,on sale ,nd,cated t9at 9e 7as not ,ts co0o7ner.
)e 7,ll d,scuss t9e t9ree ar*uments ser,at,m.
Unilateral Declaration
Res+ondentNs ,nterest cannot be +reCud,ced b$ t9e cla,m o8 .ur,el ,n 9er #om+la,nt ,n #,v,l #ase No. &&0
R t9at t9e subCect +arcel o8 land 7as 9er +ara+9ernal +ro+ert$. ",*n,8,cantl$, t9e nature o8 a +ro+ert$ 00
79et9er conCu*al or +ara+9ernal 00 ,s determ,ned b$ la7 and not b$ t9e 7,ll o8 one o8 t9e s+ouses.
31
T9us,
no un,lateral declarat,on b$ one s+ouse can c9an*e t9e c9aracter o8 a conCu*al +ro+ert$.
32
Bes,des, t9e ,ssue +resented ,n #,v,l #ase No. &&0R 7as not t9e nature o8 t9e subCect +,ece o8 land
be,n* lev,ed u+on, but 79et9er Att$. Gu,llermo de GuBman 7as ent,tled to a c9ar*,n* l,en. %n t9at case,
.ur,el cla,med t9at s9e 9ad not o88,c,all$ reta,ned 9,m as counsel, and t9at no la7$er0cl,ent relat,ons9,+
9ad been establ,s9ed bet7een t9em.
33
Deed and Title in the Name of One Spouse
'urt9er, t9e mere re*,strat,on o8 a +ro+ert$ ,n t9e name o8 one s+ouse does not destro$ ,ts conCu*al
nature.
34
Eence, ,t cannot be contended ,n t9e +resent case t9at, s,m+l$ because t9e t,tle and t9e Deed o8
"ale cover,n* t9e +arcel o8 land 7ere ,n t9e name o8 .ur,el alone, ,t 7as t9ere8ore 9er +ersonal and
e=clus,ve +ro+ert$. %n conclud,n* t9at ,t 7as +ara+9ernal, t9e tr,al courtNs rel,ance on "tuart v. -atco
3&
7as
clearl$ erroneous.
As stated earl,er, to rebut t9e +resum+t,on o8 t9e conCu*al nature o8 t9e +ro+ert$, +et,t,oners must +resent
clear and conv,nc,n* ev,dence. )e a88,rm and >uote belo7, 8or eas$ re8erence, t9e relevant d,s+os,t,ons o8
t9e #A?
M= = =. )e are unable to *o alon* 7,t9 :+et,t,onersN; content,on t9at t9e subCect +ro+ert$ 7as ac>u,red b$
.ur,el 7,t9 9er e=clus,ve 8unds. .ere re*,strat,on o8 t9e contested +ro+ert$ ,n t9e name o8 t9e 7,8e ,s not
su88,c,ent to establ,s9 t9e +ara+9ernal nature o8 t9e +ro+ert$. T9,s rem,nds Ls o8 t9e teac9,n* ,n t9e recent
case o8 $iancin v. Court of Appeals, t9at all t9e +ro+ert$ ac>u,red b$ t9e s+ouses, re*ardless o8 ,n 79ose
name t9e same ,s re*,stered, dur,n* t9e marr,a*e ,s +resumed to belon* to t9e conCu*al +artners9,+ o8
*a,ns, unless ,t ,s +roved t9at ,t +erta,ns e=clus,vel$ to t9e 9usband or to t9e 7,8e. To >uote?
MAs a *eneral rule, all +ro+ert$ ac>u,red b$ t9e s+ouses, re*ardless o8 ,n 79ose name t9e same ,s
re*,stered, dur,n* t9e marr,a*e ,s +resumed to belon* to t9e conCu*al +artners9,+ o8 *a,ns, unless ,t ,s
+roved t9at ,t +erta,ns e=clus,vel$ to t9e 9usband or to t9e 7,8e. %n t9e case at bar, t9e 8,s9+ond lease r,*9t
,s not +ara+9ernal 9av,n* been ac>u,red dur,n* t9e coverture o8 t9e marr,a*e bet7een .at,lde and
T,burc,o, 79,c9 7as on A+r,l (, 1(4. T9e 8act t9at t9e *rant 7as solel$ ,n t9e name o8 .at,lde d,d not
ma6e t9e +ro+ert$ +ara+9ernal +ro+ert$. )9at 7as mater,al 7as t9e t,me t9e 8,s9+ond lease r,*9t 7as
ac>u,red b$ t9e *rantee, and t9at 7as dur,n* t9e la78ul e=,stence o8 .at,ldeNs marr,a*e to T,burc,o.
M= = = :T;9,s +resum+t,on ,s rebuttable, but onl$ 7,t9 stron*, clear and conv,nc,n* ev,dence. T9e burden o8
+rov,n* t9at t9e +ro+ert$ belon*s e=clus,vel$ to t9e 7,8e rests u+on t9e +art$ assert,n* ,t. .ere assert,on
o8 t9e +ro+ert$Ns +ara+9ernal nature ,s not su88,c,ent.M
MT9e record as 7ell as t9e 8ore*o,n* establ,s9ed Cur,s+rudence lead us to conclude t9at t9e contested
+ro+ert$ 7as ,ndeed ac>u,red dur,n* t9e marr,a*e o8 9ere,n :res+ondent; and .ur,el. To +rove t9at ,t ,s
nonet9eless +ara+9ernal +ro+ert$, ,t ,s ,ncumbent u+on :+et,t,oners; to adduce stron*, clear and
conv,nc,n* ev,dence t9at .ur,el bou*9t t9e same 7,t9 9er e=clus,ve 8unds. :5et,t,oners; 8a,led to d,sc9ar*e
t9e burden. No79ere ,n t9e ev,dence +resented b$ t9em do )e 8,nd an$ ,nd,cat,on t9at t9e land ,n
>uest,on 7as ac>u,red b$ .ur,el 7,t9 9er e=clus,ve 8unds. T9e +resum+t,on not 9av,n* been overt9ro7n,
t9e conclus,on ,s t9at t9e contested land ,s conCu*al +ro+ert$.M
36
Non-Redemption fter the uction Sale
T9e non0redem+t,on o8 t9e +ro+ert$ b$ res+ondent 7,t9,n t9e +er,od +rescr,bed b$ la7 d,d not, ,n an$ 7a$,
,nd,cate t9e absence o8 9,s r,*9t or t,tle to ,t. #ontrar$ to +et,t,onersN alle*at,on, t9e 8act ,s t9at 9e 8,led a
T9,rd05art$ #la,m
3!
7,t9 t9e s9er,88, u+on learn,n* o8 t9e lev$ and ,m+end,n* auct,on sale. T9,s 8act 7as
s+ec,8,call$ adm,tted b$ +et,t,oners.
38
Res+ondent cla,med t9at t9e +arcel o8 land 7as conCu*al, and t9at
9e could not ans7er 8or t9e se+arate obl,*at,on o8 9,s 7,8e and 9er s,sters.
3(
Not7,t9stand,n* 9,s cla,m, t9e
d,s+uted +,ece o8 land 7as sold at a +ubl,c auct,on on Au*ust 11, 1(81. #onse>uentl$ ,ssued 7ere a
"9er,88Ns #ert,8,cate o8 "ale dated Au*ust 12, 1(81, and a ',nal "9er,88Ns #ert,8,cate o8 "ale dated Au*ust
26, 1(82.
4
1,6e7,se, ,n 9,s 4++os,t,on @Ans7erA to t9e 5et,t,on ,n 1R# ',le Adm. #ase No. 2288,
41
res+ondent ra,sed
t9e ,ssue o8 t9e conCu*al nature o8 t9e +ro+ert$ and reserved 9,s r,*9t to 8,le an ,nde+endent act,on to
annul t9e auct,on sale. %n ,ts .arc9 3, 1(83 4rder,
42
9o7ever, Branc9 & o8 t9e RT# o8 Ba*u,o #,t$ d,d not
rule on e,t9er t9e actual o7ners9,+ or t9e nature o8 t9e +arcel o8 land. Rat9er, ,t *ranted t9e 5et,t,on to
,ssue a ne7 cert,8,cate o8 t,tle ,n 8avor o8 5et,t,oner /ose+9,ne .endoBa Go. %t 8ound t9at, under "ect,on !&
o8 5res,dent,al Decree 1&2(, res+ondent 9ad no le*al stand,n* to >uest,on t9e auct,on sale, because 9e
7as not t9e re*,stered o7ner o8 t9e +ro+ert$. %nstead, 9,s r,*9t to +rove 9,s cla,m ,n a se+arate and
,nde+endent act,on 7as u+9eld.
43
T9us, 9e ,nst,tuted t9e +resent case 8or annulment and cancellat,on o8
t9e auct,on sale.
T9e 8ore*o,n* +o,nts clearl$ e=+la,n t9e 8a,lure o8 res+ondent to redeem t9e +ro+ert$. .,s+laced ,s
+et,t,onersN em+9as,s on 9,s 8a,lure to do so 7,t9,n t9e +er,od re>u,red b$ la7, because redem+t,on ,n t9,s
case 7ould 9ave been ,ncons,stent 7,t9 9,s cla,m t9at t9e sale 7as ,nval,d.
44
Redem+t,on 7ould 9ave
served as an ,m+l,ed adm,ss,on o8 t9e re*ular,t$ o8 t9e sale and esto++ed 9,m 8rom later ,m+u*n,n* ,ts
val,d,t$ on t9at *round.
4&
",nce +et,t,oners 9ave 8a,led to +resent conv,nc,n* ev,dence t9at t9e +ro+ert$ ,s +ara+9ernal, t9e
+resum+t,on t9at ,t ,s conCu*al t9ere8ore stands. T9e ne=t >uest,on be8ore us ,s, 79et9er t9e c9ar*,n* l,en
o8 Att$. de GuBman ma$ be +ro+erl$ en8orced a*a,nst t9e +,ece o8 land ,n >uest,on.
C<%r49&4 L9e& No6 C<%r4e%b:e A4%9&56 Co&=-4%: +ro8er6.
%t ,s ,nd,s+utable t9at t9e serv,ces o8 Att$. de GuBman 7ere ac>u,red dur,n* t9e marr,a*e o8 res+ondent
and .ur,el. T9e la7$erNs le*al serv,ces 7ere en*a*ed to recover 8rom #$+ress #or+orat,on @,n #,v,l #ase
No. 1841A t9e balance o8 t9e +urc9ase +r,ce o8 t9e sale o8 t9e e=clus,ve +ro+ert$ o8 .ur,el and 9er
s,sters.
46
T9e recover$ 7as done dur,n* t9e marr,a*e.
4!
T9e #A eluc,dated on t9,s matter as 8ollo7s?
M= = =. T9e contract or transact,on bet7een Att$. De GuBman and t9e 5uca$ s,sters a++ears to 9ave been
,ncurred 8or t9e e=clus,ve ,nterest o8 t9e latter. .ur,el 7as act,n* +r,vatel$ 8or 9er e=clus,ve ,nterest 79en
s9e Co,ned 9er t7o s,sters ,n 9,r,n* t9e serv,ces o8 Att$. De GuBman to 9andle a case 8or t9em.
Accord,n*l$, 79atever e=+enses 7ere ,ncurred b$ .ur,el ,n t9e l,t,*at,on 8or 9er and 9er s,stersN +r,vate
and e=clus,ve ,nterests, are 9er e=clus,ve res+ons,b,l,t$ and certa,nl$ cannot be c9ar*ed a*a,nst t9e
contested conCu*al +ro+ert$.
M3ven on t9e remote assum+t,on t9at t9e conCu*al +ro+ert$ could be 9eld l,able, lev$ on e=ecut,on o8 t9e
same +ro+ert$ s9ould st,ll be den,ed ,n accordance 7,t9 t9e rul,n* ,n 1uBon "uret$ #o., %nc. v. De Garc,a
t9at be8ore a conCu*al +ro+ert$ could be 9eld l,able 8or t9e obl,*at,on contracted b$ a s+ouse, t9ere must
be a s9o7,n* o8 some advanta*e or bene8,t t9at accrued to t9e conCu*al +artners9,+. #oncededl$, t9e
burden ,s on t9e :+et,t,oners; to +rove t9at t9e serv,ces rendered b$ Att$. De GuBman ,n 9andl,n* #,v,l
#ase No. 1841 8or t9e 5uca$ s,sters 9ad, some9o7, redounded to t9e bene8,t o8 t9e conCu*al +artners9,+
o8 9ere,n :res+ondent; and .ur,el. T9,s onus, :+et,t,oners;, 9o7ever, 8a,led to d,sc9ar*e.M
48
)e 8,nd no reason to dev,ate 8rom t9e #ANs 8,nd,n*s, 79,c9 are am+l$ su++orted b$ ev,dence. T9e
e=+enses ,ncurred b$ .ur,el 8or t9e recover$ o8 t9e balance o8 t9e +urc9ase +r,ce o8 9er +ara+9ernal
+ro+ert$ are 9er e=clus,ve res+ons,b,l,t$.
4(
T9,s +,ece o8 land ma$ not be used to +a$ 8or 9er
,ndebtedness, because 9er obl,*at,on 9as not been s9o7n to be one o8 t9e c9ar*es a*a,nst t9e conCu*al
+artners9,+.
&
.oreover, 9er r,*9ts to t9e +ro+ert$ are merel$ ,nc9oate +r,or to t9e l,>u,dat,on o8 t9e
conCu*al +artners9,+.
Lnder t9e Ne7 #,v,l #ode, a 7,8e ma$ b,nd t9e conCu*al +artners9,+ onl$ 79en s9e +urc9ases t9,n*s
necessar$ 8or t9e su++ort o8 t9e 8am,l$, or 79en s9e borro7s mone$ 8or t9at +ur+ose u+on 9er 9usbandNs
8a,lure to del,ver t9e needed sumG
&1
79en adm,n,strat,on o8 t9e conCu*al +artners9,+ ,s trans8erred to t9e
7,8e b$ t9e courts
&2
or b$ t9e 9usbandG
&3
or 79en t9e 7,8e *,ves moderate donat,ons 8or c9ar,t$.
&4
'a,lure
to establ,s9 an$ o8 t9ese c,rcumstances ,n t9e +resent case means t9at t9e conCu*al asset ma$ not be
bound to ans7er 8or .ur,elNs +ersonal obl,*at,on.
T9e +o7er o8 t9e court ,n e=ecut,n* Cud*ments e=tends onl$ to +ro+ert,es un>uest,onabl$ belon*,n* to t9e
Cud*ment debtor alone.
&&
%n t9,s case, t9ere8ore, t9e +ro+ert$ 00 be,n* conCu*al ,n nature 00 cannot be
lev,ed u+on.
&6
)E3R3'4R3, t9e 5et,t,on ,s D!N"!D( and t9e assa,led Dec,s,on and Resolut,on A''%R.3D. #osts
a*a,nst +et,t,oners.
"4 4RD3R3D.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
'%R"T D%V%"%4N

G.R. No. 10616/ "ebr-%r. 14, 1//4
!A$!N T. !ABALNE!, +et,t,oner,
vs.
T*E CURT " A++EAL! %&' RE$EDI! GAVILA>!ABALNE!, res+ondents.
even ). Puno for petitioner.
Benigno *. Puno for private respondent.

CRU#, J.:
T9e subCect o8 t9,s +et,t,on ,s t9e +rel,m,nar$ ,nCunct,on ,ssued b$ t9e res+ondent court +end,n* resolut,on
o8 a case on a++eal. )e deal onl$ 7,t9 t9,s matter and not t9e mer,ts o8 t9e case.
As a member o8 our d,+lomat,c serv,ce ass,*ned to d,88erent countr,es dur,n* 9,s success,ve tours o8
dut,es, +et,t,oner "amson T. "abalones le8t to 9,s 7,8e, 9ere,n res+ondent Remed,os Gav,ola0"abalones,
t9e adm,n,strat,on o8 some o8 t9e,r conCu*al, +ro+ert,es 8or 8,8teen $ears.
"abalones ret,red as ambassador ,n 1(8& and came bac6 to t9e 59,l,++,nes but not to 9,s 7,8e and t9e,r
c9,ldren. 'our $ears later, 9e 8,led an act,on 8or Cud,c,al aut9or,Bat,on to sell a bu,ld,n* and lot located at
S1! 3,sen9o7er "t., Green9,lls, "an /uan, .etro .an,la, belon*,n* to t9e conCu*al +artners9,+. Ee
cla,med t9at 9e 7as s,=t$0e,*9t $ears old, ver$ s,c6 and l,v,n* alone 7,t9out an$ ,ncome, and t9at 9,s
s9are o8 t9e +roceeds o8 t9e sale to de8ra$ t9e +ro9,b,t,ve cost o8 9,s 9os+,tal,Bat,on and med,cal
treatment.
%n 9er ans7er, t9e +r,vate res+ondent o++osed t9e aut9or,Bat,on and 8,led a countercla,m 8or le*al
se+arat,on. "9e alle*ed t9at t9e 9ouse ,n Green9,lls 7as be,n* occu+,ed b$ 9er and t9e,r s,= c9,ldren and
t9at t9e$ 7ere de+end,n* 8or t9e,r su++ort on t9e rentals 8rom anot9er conCu*al +ro+ert$, a bu,ld,n* and lot
,n 'orbes 5ar6 79,c9 7as on lease to Nobum,c9, %Bum,. "9e also ,n8ormed t9e court t9at des+,te 9er
9usbandNs ret,rement, 9e 9ad not returned to 9,s le*,t,mate 8am,l$ and 7as ,nstead ma,nta,n,n* a se+arate
res,dence ,n Don Anton,o Ee,*9ts, 'a,rv,e7, JueBon #,t$, 7,t9 T9elma #umaren* and t9e,r t9ree c9,ldren.
%n 9er +ra$er, s9e as6ed t9e court to *rant t9e decree o8 le*al se+arat,on and order t9e l,>u,dat,on o8 t9e,r
conCu*al +ro+ert,es, 7,t9 8or8e,ture o8 9er 9usbandNs s9are t9ere,n because o8 9,s adulter$. "9e also
+ra$ed t9at ,t enCo,n t9e +et,t,oner and 9,s a*ents 8rom aA d,sturb,n* t9e occu+ants o8 t9e 'orbes 5ar6
+ro+ert$ and bA d,s+os,n* o8 or encumber,n* an$ o8 t9e conCu*al +ro+ert,es.
A8ter tr,al, /ud*e .ar,ano .. Lmal,, 8ound t9at t9e +et,t,oner 9ad ,ndeed contracted a b,*amous marr,a*e
on 4ctober &, 1(81, 7,t9 T9elma #umaren*, to 79om 9e 9ad returned u+on 9,s ret,rement ,n 1(8& at a
se+arate res,dence. T9e court t9us decreed t9e le*al se+arat,on o8 t9e s+ouses and t9e 8or8e,ture o8 t9e
+et,t,onerNs s9are ,n t9e conCu*al +ro+ert,es, declar,n* as 7ell t9at 9e 7as not ent,tled to su++ort 8rom 9,s
res+ondent 7,8e.
1
T9,s dec,s,on 7as a++ealed to t9e res+ondent court. Pendente lite, t9e res+ondent 7,8e 8,led a mot,on 8or
t9e ,ssuance o8 a 7r,t o8 +rel,m,nar$ ,nCunct,on to enCo,n t9e +et,t,oner 8rom ,nter8er,n* 7,t9 t9e
adm,n,strat,on o8 t9e,r +ro+ert,es ,n Green9,lls and 'orbes 5ar6. "9e alle*ed inter alia t9at 9e 9ad
9arassed t9e tenant o8 t9e 'orbes 5ar6 +ro+ert$ b$ ,n8orm,n* 9,m t9at 9,s lease 7ould not be rene7ed.
"9e also com+la,ned t9at t9e +et,t,oner 9ad d,s+osed o8 one o8 t9e,r valuable conCu*al +ro+ert,es ,n t9e
Ln,ted "tates ,n 8avor o8 9,s +aramour, to t9e +reCud,ce o8 9,s le*,t,mate 7,8e and c9,ldren.
T9e +et,t,oner o++osed t9,s mot,on and 8,led 9,s o7n mot,on to +revent 9,s 7,8e 8rom enter,n* ,nto a ne7
contract o8 lease over t9e 'orbes 5ar6 +ro+ert$ 7,t9 ,ts +resent tenant, or 7,t9 8uture tenants, 7,t9out 9,s
consent.
A8ter 9ear,n*, t9e #ourt o8 A++eals, ,n an order dated A+r,l !, 1((2, *ranted t9e +rel,m,nar$ ,nCunct,on
+ra$ed 8or b$ 9,s 7,8e.
2
T9e +et,t,oner no7 assa,ls t9,s order, ar*u,n* t9at s,nce t9e la7 +rov,des 8or a Co,nt adm,n,strat,on o8 t9e
conCu*al +ro+ert,es b$ t9e 9usband and 7,8e, no ,nCunct,ve rel,e8 can be ,ssued a*a,nst one or t9e ot9er
because no r,*9t 7,ll be v,olated. %n su++ort o8 t9,s content,on, 9e c,tes Art. 124 o8 t9e 'am,l$ #ode,
read,n* as 8ollo7s?
Art. 124. T9e adm,n,strat,on and enCo$ment o8 t9e conCu*al +artners9,+ +ro+ert$ s9all
belon* to bot9 s+ouses Co,ntl$. %n case o8 d,sa*reement, t9e 9usbandNs dec,s,on s9all
+reva,l, subCect to recourse to t9e court b$ t9e 7,8e 8or +ro+er remed$, 79,c9 must be
ava,led o8 7,t9,n 8,ve $ears 8rom t9e date o8 t9e contract ,m+lement,n* suc9 dec,s,on.
%n t9e event t9at one s+ouse ,s ,nca+ac,tated or ot9er7,se unable to +art,c,+ate ,n t9e
adm,n,strat,on o8 t9e conCu*al +ro+ert,es, t9e ot9er s+ouse ma$ assume sole +o7ers o8
t9e adm,n,strat,on. T9ese +o7ers do not ,nclude d,s+os,t,on or encumbrance 7,t9out
aut9or,t$ o8 t9e court or t9e 7r,tten consent o8 t9e ot9er s+ouse. %n t9e absence o8 suc9
aut9or,t$ or consent, t9e d,s+os,t,on or encumbrance s9all be vo,d. Eo7ever, t9e
transact,on s9all be construed and t9e t9,rd +erson, and ma$ be +er8ected as a b,nd,n*
contract u+on t9e acce+tance b$ t9e ot9er s+ouse or t9e aut9or,Bat,on b$ t9e court
be8ore t9e o88er ,s 7,t9dra7n b$ e,t9er or bot9 o88erors.
Ee 8urt9er notes t9at t9e res+ondent court 8a,led to a++o,nt an adm,n,strator o8 t9e conCu*al assets as
mandated b$ Art. 61 o8 t9e #ode, t9us?
Art. 61 A8ter t9e 8,l,n* o8 t9e +et,t,on 8or le*al se+arat,on, t9e s+ouses s9all be ent,tled to
l,ve se+aratel$ 8rom eac9 ot9er.
T9e court, ,n t9e absence o8 a 7r,tten a*reement bet7een t9e s+ouses, s9all des,*nate
e,t9er o8 t9em or a t9,rd +erson to adm,n,ster t9e absolute commun,t$ or conCu*al
+artners9,+ +ro+ert$. T9e adm,n,strator a++o,nted b$ t9e court s9all 9ave t9e same
+o7ers and dut,es as t9ose o8 a *uard,an under t9e Rules o8 #ourt.
T9e #ourt 9as care8ull$ cons,dered t9e ,ssues and t9e ar*uments o8 t9e +art,es and 8,nds t9at t9e +et,t,on
9as no mer,t.
)e a*ree 7,t9 t9e res+ondent court t9at +end,n* t9e a++o,ntment o8 an adm,n,strator over t9e 79ole
mass o8 conCu*al assets, t9e res+ondent court 7as Cust,8,ed ,n allo7,n* t9e 7,8e to cont,nue 7,t9 9er
adm,n,strat,on. %t 7as also correct, ta6,n* ,nto account t9e ev,dence adduced at t9e 9ear,n*, ,n enCo,n,n*
t9e +et,t,oner 8rom ,nter8er,n* 7,t9 9,s 7,8eNs adm,n,strat,on +end,n* resolut,on o8 t9e a++eal.
T9e la7 does ,ndeed *rant to t9e s+ouses Co,nt adm,n,strat,on over t9e conCu*al +ro+ert,es as clearl$
+rov,ded ,n t9e above0c,ted Art,cle 124 o8 t9e 'am,l$ #ode. Eo7ever, Art,cle 61, also above >uoted, states
t9at a8ter a +et,t,on 8or le*al se+arat,on 9as been 8,led, t9e tr,al court s9all, ,n t9e absence o8 a 7r,tten
a*reement bet7een t9e cou+le, a++o,nt e,t9er one o8 t9e s+ouses or a t9,rd +erson to act as t9e
adm,n,strator.
)9,le ,t ,s true t9at no formal des,*nat,on o8 t9e adm,n,strator 9as been made, suc9 des,*nat,on 7as
,m+l,c,t ,n t9e dec,s,on o8 t9e tr,al court den$,n* t9e +et,t,oner an$ s9are ,n t9e conCu*al +ro+ert,es @and
t9us also d,s>ual,8$,n* 9,m as adm,n,strator t9ereo8A. T9at des,*nat,on 7as ,n e88ect a++roved b$ t9e #ourt
o8 A++eals 79en ,t ,ssued ,n 8avor o8 t9e res+ondent 7,8e t9e +rel,m,nar$ ,nCunct,on no7 under c9allen*e.
T9e +r,mar$ +ur+ose o8 t9e +rov,s,onal remed$ o8 ,nCunct,on ,s to +reserve t9e status 7uo o8 t9e t9,n*s
subCect o8 t9e act,on or t9e relat,ons bet7een t9e +art,es and t9us +rotect t9e r,*9ts o8 t9e +la,nt,88
res+ect,n* t9ese matters dur,n* t9e +endenc$ o8 t9e su,t. 4t9er7,se, t9e de8endant ma$, be8ore 8,nal
Cud*ment, do or cont,nue do,n* t9e act 79,c9 t9e +la,nt,88 as6s t9e court to restra,n and t9us ma6e
,ne88ectual t9e 8,nal Cud*ment t9at ma$ be rendered a8ter7ards ,n 8avor o8 t9e +la,nt,88.
3
As observed b$ 'ranc,sco, M%nCunct,on ,s +r,mar,l$ a +revent,ve remed$. %ts +rov,nce ,s to a88ord rel,e8
a*a,nst 8uture acts 79,c9 are a*a,nst e>u,t$ and *ood consc,ence and to 6ee+ and +reserve t9e t9,n* ,n
t9e status 7uo, rat9er t9an to remed$ 79at ,s +ast or to +un,s9 8or 7ron*8ul acts alread$ comm,tted. %t ma$
,ssue to +revent 8uture 7ron*s alt9ou*9 no r,*9t 9as $et been v,olated.M
4
T9e #ourt notes t9at t9e 7,8e 9as been adm,n,ster,n* t9e subCect +ro+ert,es 8or almost n,neteen $ears
no7, a++arentl$ 7,t9out com+la,nt on t9e +art o8 t9e +et,t,oner. Ee 9as not alle*ed, muc9 less s9o7n, t9at
9er adm,n,strat,on 9as caused +reCud,ce to t9e conCu*al +artners9,+. )9at 9e merel$ su**ests ,s t9at t9e
lease o8 t9e 'orbes 5ar6 +ro+ert$ could be rene7ed on better terms, or 9e s9ould at least be *,ven 9,s
s9are o8 t9e rentals.
%n 9er mot,on 8or t9e ,ssuance o8 a +rel,m,nar$ ,nCunct,on, t9e res+ondent 7,8e alle*ed t9at t9e +et,t,onerNs
9arassment o8 t9e,r tenant at 'orbes 5ar6
7ould Ceo+ard,Be t9e lease and de+r,ve 9er and 9er c9,ldren o8 t9e ,ncome t9ere8rom on 79,c9 t9e$
de+end 8or t9e,r subs,stence. "9e also test,8,ed t9e numerous . . . ,nclud,n* var,ous dollar accounts, t7o
9ouses ,n JueBon #,t$ and #ebu #,t$, and a .ercedes BenB. T9e +r,vate res+ondent also com+la,ned
t9at on /une 1, 1((1, t9e +et,t,oner e=ecuted a >u,tcla,m over t9e,r conCu*al +ro+ert$ ,n A++le Valle$,
"an Bernard,no, #al,8orn,a, L.".A., ,n 8avor o8 T9elma #umaren*, to ,m+rove 9,s +aramourNs lu=ur,ous
l,8est$le to t9e +reCud,ce o8 9,s le*,t,mate 8am,l$.
T9ese alle*at,ons, none o8 79,c9 7as re8uted b$ t9e 9usband, s9o7 t9at t9e ,nCunct,on ,s necessar$ to
+rotect t9e ,nterests o8 t9e +r,vate res+ondent and 9er c9,ldren and +revent t9e d,ss,+at,on o8 t9e conCu*al
assets.
T9e t7,n re>u,rements o8 a val,d ,nCunct,on are t9e e=,stence o8 a r,*9t and ,ts actual or t9reatened
v,olat,on.
,
Re*ardless o8 t9e outcome o8 t9e a++eal, ,t cannot be den,ed t9at as t9e +et,t,onerNs le*,t,mate
7,8e @and t9e com+la,nant and ,nCured s+ouse ,n t9e act,on 8or le*al se+arat,onA, t9e +r,vate res+ondent
9as a r,*9t to a s9are @,8 not t9e 79oleA o8 t9e conCu*al estate. T9ere ,s also, ,n our v,e7, enou*9 ev,dence
to ra,se t9e a++re9ens,on t9at entrust,n* sa,d estate to t9e +et,t,oner ma$ result ,n ,ts ,m+rov,dent
d,s+os,t,on to t9e detr,ment o8 9,s 7,8e and c9,ldren. )e a*ree t9at ,nasmuc9 as t9e tr,al court 9ad earl,er
declared t9e 8or8e,ture o8 t9e +et,t,onerNs s9are ,n t9e conCu*al +ro+ert,es, ,t 7ould be +rudent not to allo7
9,m ,n t9e meant,me to +art,c,+ate ,n ,ts mana*ement.
1et ,t be stressed t9at t9e ,nCunct,on 9as not +ermanentl$ ,nstalled t9e res+ondent 7,8e as t9e
adm,n,strator o8 t9e 79ole mass o8 conCu*al assets. %t 9as merel$ allo7ed 9er to cont,nue adm,n,ster,n*
t9e +ro+ert,es ,n t9e meant,me 7,t9out ,nter8erence 8rom t9e +et,t,oner, +end,n* t9e e=+ress des,*nat,on
o8 t9e adm,n,strator ,n accordance 7,t9 Art,cle 61 o8 t9e 'am,l$ #ode.
)E3R3'4R3, t9e +et,t,on ,s D3N%3D 8or lac6 o8 mer,t. %t ,s so ordered.
$avide( !r.( Bellosillo( 9uiason and :apunan( !!( concur.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
'%R"T D%V%"%4N

G.R. No. 12,132 2-&e 26, 1//8
!8o-5e5 ANTNI %&' LU#VI$INDA GUIANG, +et,t,oners,
vs.
CURT " A++EAL! %&' GILDA C+U#, res+ondents.

+ANGANIBAN, J.:
T9e sale o8 a conCu*al +ro+ert$ re>u,res t9e consent o8 bot9 t9e 9usband and t9e 7,8e. T9e absence o8
t9e consent o8 one renders t9e sale null and vo,d, 79,le t9e v,t,at,on t9ereo8 ma6es ,t merel$ vo,dable.
4nl$ ,n t9e latter case can rat,8,cat,on cure t9e de8ect.
The Case
T9ese 7ere t9e +r,nc,+les t9at *u,ded t9e #ourt ,n dec,d,n* t9,s +et,t,on 8or rev,e7 o8 t9e Dec,s,on
1
dated
/anuar$ 3, 1((6 and t9e Resolut,on
2
dated .a$ 28, 1((6, +romul*ated b$ t9e #ourt o8 A++eals ,n #A0
GR #V No. 41!&8, a88,rm,n* t9e Dec,s,on o8 t9e lo7er court and den$,n* recons,derat,on, res+ect,vel$.
4n .a$ 28, 1((, 5r,vate Res+ondent G,lda #or+uB 8,led an Amended #om+la,nant
3
a*a,nst 9er
9usband /ud,e #or+uB and 5et,t,oner0"+ouses Anton,o and 1uBv,m,nda Gu,an*. T9e sa,d #om+la,nt
sou*9t t9e declarat,on o8 a certa,n deed o8 sale, 79,c9 ,nvolved t9e conCu*al +ro+ert$ o8 +r,vate
res+ondent and 9er 9usband, null and vo,d. T9e case 7as ra88led to t9e Re*,onal Tr,al #ourt o8
Qoronadal, "out9 #otabato, Branc9 2&. %n due course, t9e tr,al court rendered a Dec,s,on
4
dated
"e+tember (, 1((2, d,s+os,n* as 8ollo7?
,
A##4RD%NG1-, Cud*ment ,s rendered 8or t9e +la,nt,88 and a*a,nst t9e de8endants,
1. Declar,n* bot9 t9e Deed o8 Trans8er o8 R,*9ts dated .arc9 1, 1(( @3=9. MAMA and t9e
Mam,cable settlementM dated .arc9 16, 1(( @3=9. MBMA as null vo,d and o8 no e88ectG
2. Reco*n,B,n* as la78ul and val,d t9e o7ners9,+ and +ossess,on o8 +la,nt,88 G,lda #or+uB
over t9e rema,n,n* one09al8 +ort,on o8 1ot (, Bloc6 8, @1R#A 5sd016&4( 79,c9 9as been
t9e subCect o8 t9e Deed o8 Trans8er o8 R,*9ts @3=9. MAMAG
3. 4rder,n* +la,nt,88 G,lda #or+uB to re,mburse de8endants 1uBv,m,nda Gu,an* t9e
amount o8 N%N3 TE4L"AND @5(,.A 53"4" corres+ond,n* to t9e +a$ment made
b$ de8endants Gu,an*s to .anuel #alleCo 8or t9e un+a,d balance o8 t9e account o8 +la,nt,88
,n 8avor o8 .anuel #alleCo, and anot9er sum o8 53!(.62 re+resent,n* one09al8 o8 t9e
amount o8 realt$ ta=es +a,d b$ de8endants Gu,an*s on 1ot (, Bloc6 8, @1R#A 5sd016&4(,
bot9 7,t9 le*al ,nterests t9ereon com+uted 8rom t9e 8,nal,t$ o8 t9e dec,s,on.
No +ronouncement as to costs ,n v,e7 o8 t9e 8actual c,rcumstances o8 t9e case.
D,ssat,s8,ed, +et,t,oners0s+ouses 8,led an a++eal 7,t9 t9e #ourt o8 A++eals. Res+ondent #ourt, ,n ,ts
c9allen*ed Dec,s,on, ruled as 8ollo7?
6
)E3R3'4R3, t9e a++ealed o8 t9e lo7er court ,n #,v,l #ase No. 24 ,s 9ereb$
A''%R.3D b$ t9,s #ourt. No costs cons,der,n* +la,nt,880a++elleeNs 8a,lure to 8,le 9er br,e8
des+,te not,ce.
Recons,derat,on 7as s,m,larl$ den,ed b$ t9e same court ,n ,ts assa,led Resolut,on?
3
',nd,n* t9at t9e ,ssues ra,sed ,n de8endants0a++ellants mot,on 8or recons,derat,on o8 4ur
dec,s,on ,n t9,s case o8 /anuar$ 3, 1((6, to be a mere re9as9 o8 t9e same ,ssues 79,c9
7e 9ave alread$ +assed u+on ,n t9e sa,d dec,s,on, and t9ere :be,n*; no co*ent reason to
d,sturb t9e same, t9,s #ourt R3"41V3D to D3N- t9e ,nstant mot,on 8or recons,derat,on
8or lac6 o8 mer,t.
The +acts
T9e 8acts o8 t9,s case are s,m+le. 4ver t9e obCect,on o8 +r,vate res+ondent and 79,le s9e 7as ,n .an,la
see6,n* em+lo$ment, 9er 9usband sold to t9e +et,t,oners0s+ouses one 9al8 o8 t9e,r conCu*al +eo+ert$,
cons,st,n* o8 t9e,r res,dence and t9e lot on 79,c9 ,t stood. T9e c,rcumstances o8 t9,s sale are set 8ort9 ,n
t9e Dec,s,on o8 Res+ondent #ourt, 79,c9 >uoted 8rom t9e Dec,s,on o8 t9e tr,al court as 8ollo7s?
8
1. 5la,nt,88 G,lda #or+uB and de8endant /ud,e #or+uB are le*all$ marr,ed s+ouses. T9e$
7ere marr,ed on December 24, 1(68 ,n Bacolod #,t$, be8ore a Cud*e. T9,s ,s adm,tted b$
de8endants0s+ouses Anton,o and 1uBv,m,nda Gu,an* ,n t9e,r ans7er, and also adm,tted
b$ de8endant /ud,e #or+uB 79en 9e test,8,ed ,n court @tsn. +. 3, /une (, 1((2A, alt9ou*9
t9e latter sa$s t9at t9e$ 7ere marr,ed ,n 1(6!. T9e cou+le 9ave t9ree c9,ldren, namel$?
/un,e P 18 $ears old, Earr,et P 1! $ears o8 a*e, and /od,e or /oC,, t9e $oun*est, 79o
7as 1& $ears o8 a*e ,n Au*ust, 1(( 79en 9er mot9er test,8,ed ,n court.
"omet,me on 'ebruar$ 14, 1(83, t9e cou+le G,lda and /ud,e #or+uB, 7,t9 +la,nt,8807,8e
G,lda #or+uB as vendee, bou*9t a 421 s>. meter lot located ,n Baran*a$ Gen. 5aul,no
"antos @Bo. 1A, Qoronadal, "out9 #otabato, and +art,cularl$ 6no7n as 1ot (, Bloc6 8,
@1R#A 5sd016&4( 8rom .anuel #alleCo 79o s,*ned as vendor t9rou*9 a cond,t,onal deed
o8 sale 8or a total cons,derat,on o8 514,!3&.. T9e cons,derat,on 7as +a$able ,n
,nstallment, 7,t9 r,*9t o8 cancellat,on ,n 8avor o8 vendor s9ould vendee 8a,l to +a$ t9ree
success,ve ,nstallments @3=9. M2M, tsn +. 6, 'ebruar$ 14, 1((A.
2. "omet,me on A+r,l 22, 1(88, t9e cou+le G,lda and /ud,e #or+uB sold one09al8 +ort,on
o8 t9e,r 1ot No. (, Bloc6 8, @1R#A 5sd016&4( to t9e de8endants0s+ouses Anton,o and
1uBv,m,nda Gu,an*. T9e latter 9ave s,nce t9en occu+,ed t9e one09al8 +ort,on :and; bu,lt
t9e,r 9ouse t9ereon @tsn. +. 4, .a$ 22, 1((2A. T9e$ are t9us adCo,n,n* ne,*9bors o8 t9e
#or+uBes.
3. 5la,nt,88 G,lda #or+uB le8t 8or .an,la somet,me ,n /une 1(8(. "9e 7as tr$,n* to loo6 8or
7or6 abroad, ,n :t9e; .,ddle 3ast. Ln8ortunatel$, s9e became a v,ct,m o8 an unscru+ulous
,lle*al recru,ter. "9e 7as not able to *o abroad. "9e sta$ed 8or somet,me ,n .an,la
9o7ever, com,n* bac6 to Qoronadal, "out9 #otabato, . . . on .arc9 11, 1((. 5la,nt,88Ns
de+arture 8or .an,la to loo6 8or 7or6 ,n t9e .,ddle 3ast 7as 7,t9 t9e consent o8 9er
9usband /ud,e #or+uB @tsn. +. 16, Au*. 12, 1((G +. 1 "e+t. 6, 1((1A.
A8ter 9,s 7,8eNs de+arture 8or .an,la, de8endant /ud,e #or+uB seldom 7ent 9ome to t9e
conCu*al d7ell,n*. Ee sta$ed most o8 t9e t,me at 9,s +lace o8 7or6 at "ama9an* Na$on
Bu,ld,n*, a 9otel, restaurant, and a coo+erat,ve. Dau*9ter Eerr,et #or+uB 7ent to sc9ool
at Q,n*Ns #olle*e, Bo. 1, Qoronadal, "out9 #otabato, but s9e 7as at t9e same t,me
7or6,n* as 9ouse9old 9el+ o8, and sta$,n* at, t9e 9ouse o8 .r. 5anes. Eer brot9er /un,e
7as not 7or6,n*. Eer $oun*er s,ster /od,e @/oC,eA 7as *o,n* to sc9ool. Eer mot9er
somet,mes sent t9em mone$ @tsn. +. 14, "e+t. 6, 1((1.A
"omet,me ,n /anuar$ 1((, Earr,et #or+uB learned t9at 9er 8at9er ,ntended to sell t9e
rema,n,n* one09al8 +ort,on ,nclud,n* t9e,r 9ouse, o8 t9e,r 9omelot to de8endants Gu,an*s.
"9e 7rote a letter to 9er mot9er ,n8orm,n* 9er. "9e :G,lda #or+uB; re+l,ed t9at s9e 7as
obCect,n* to t9e sale. Earr,et, 9o7ever, d,d not ,n8orm 9er 8at9er about t9,sG but ,nstead
*ave t9e letter to .rs. 1uBv,m,nda Gu,an* so t9at s9e :Gu,an*; 7ould adv,se 9er 8at9er
@tsn. ++. 1601!, "e+t. 6, 1((1A.
4. Eo7ever, ,n t9e absence o8 9,s 7,8e G,lda #or+uB, de8endant /ud,e #or+uB +us9ed
t9rou*9 t9e sale o8 t9e rema,n,n* one09al8 +ort,on o8 1ot (, Bloc6 8, @1R#A 5sd016&4(.
4n .arc9 1, 1((, 9e sold to de8endant 1uBv,m,nda Gu,an* t9ru a document 6no7n as
MDeed o8 Trans8er o8 R,*9tsM @3=9. MAMA t9e rema,n,n* one09al8 +ort,on o8 t9e,r lot and t9e
9ouse stand,n* t9ereon 8or a total cons,derat,on o8 53,. o8 79,c9 5&,. 7as to
be +a,d ,n /une, 1((. Trans8eror /ud,e #or+uBNs c9,ldren /un,e and Earr,et s,*ned t9e
document as 7,tness.
'our @4A da$s a8ter .arc9 1, 1(( or on .arc9 &, 1((, obv,ousl$ to cure 79atever de8ect
,n de8endant /ud,e #or+uBNs t,tle over t9e lot trans8erred, de8endant 1uBv,m,nda Gu,an*
as vendee e=ecuted anot9er a*reement over 1ot (, Bloc6 8, @1R#A 5sd016&48 @3=9.
M3MA, t9,s t,me 7,t9 .anuela /,meneB #alleCo, a 7,do7 o8 t9e or,*,nal re*,stered o7ner
8rom 79om t9e cou+le /ud,e and G,lda #or+uB or,*,nall$ bou*9t t9e lot @3=9. M2MA, 79o
s,*ned as vendor 8or a cons,derat,on o8 5(,.. De8endant /ud,e #or+uB s,*ned as a
7,tness to t9e sale @3=9. M30AMA. T9e ne7 sale @3=9. M3MA descr,bes t9e lot sold as 1ot 8,
Bloc6 (, @1R#A 5sd016&48 but ,t ,s obv,ous 8rom t9e mass o8 ev,dence t9at t9e correct
lot ,s 1ot 8, Bloc6 (, @1R#A 5sd016&4(, t9e ver$ lot earl,er sold to t9e cou+le G,lda and
/ud,e #or+uB.
&. "omet,mes on .arc9 11, 1((, +la,nt,88 returned 9ome. "9e 8ound 9er c9,ldren sta$,n*
7,t9 ot9er 9ouse9olds. 4nl$ /un,e 7as sta$,n* ,n t9e,r 9ouse. Earr,et and /oC, 7ere 7,t9
.r. 5anes. G,lda *at9ered 9er c9,ldren to*et9er and sta$ed at t9e,r 9ouse. Eer 9usband
7as no79ere to be 8ound. "9e 7as ,n8ormed b$ 9er c9,ldren t9at t9e,r 8at9er 9ad a 7,8e
alread$.
6. 'or sta$,n* ,n t9e,r 9ouse sold b$ 9er 9usband, +la,nt,88 7as com+la,ned a*a,nst b$
de8endant 1uBv,m,nda Gu,an* and 9er 9usband Anton,o Gu,an* be8ore t9e Baran*a$
aut9or,t,es o8 Baran*a$ General 5aul,no "antos @Bo. 1A, Qoronadal, "out9 #otabato, 8or
tres+ass,n* @tsn. +. 34, Au*. 1!, 1((A. T9e case 7as doc6eted b$ t9e baran*a$
aut9or,t,es as Baran*a$ #ase No. 38 8or Mtres+ass,n*M. 4n .arc9 16, 1((, t9e +art,es
t9ereat s,*ned a document 6no7n as Mam,cable settlementM. %n 8ull, t9e settlement
+rov,des 8or, to 7,t?
T9at res+ondent, .rs. G,lda #or+uB and 9er t9ree c9,ldren, namel$?
/un,e, Ear,et and /ud,e to leave voluntar,l$ t9e 9ouse o8 .r. and .rs.
Anton,o Gu,an*, 79ere t9e$ are +resentl$ board,n* 7,t9out an$ c9ar*e,
on or be8ore A+r,l !, 1((.
'A%1 N4T LND3R TE3 53NA1T- 4' TE3 1A).
Bel,ev,n* t9at s9e 9ad rece,ved t9e s9orter end o8 t9e bar*a,n, +la,nt,88 to t9e Baran*a$
#a+ta,n o8 Baran*a$ 5aul,no "antos to >uest,on 9er s,*nature on t9e am,cable
settlement. "9e 7as re8erred 9o7ever to t9e 488,ce0%n0#9ar*e at t9e t,me, a certa,n .r.
de la #ruB. T9e latter ,n turn told 9er t9at 9e could not do an$t9,n* on t9e matter @tsn. +.
31, Au*. 1!, 1((A.
T9,s +art,cular +o,nt not rebutted. T9e Baran*a$ #a+ta,n 79o test,8,ed d,d not den$ t9at
.rs. G,lda #or+uB a++roac9ed 9,m 8or t9e annulment o8 t9e settlement. Ee merel$ sa,d
9e 8or*ot 79et9er .rs. #or+uB 9ad a++roac9ed 9,m @tsn. +. 13, "e+t. 26, 1((A. )e t9us
conclude t9at .rs. #or+uB reall$ a++roac9ed t9e Baran*a$ #a+ta,n 8or t9e annulment o8
t9e settlement. Annulment not 9av,n* been made, +la,nt,88 sta$ed +ut ,n 9er 9ouse and
lot.
!. De8endant0s+ouses Gu,an* 8ollo7ed t9ru t9e am,cable settlement 7,t9 a mot,on 8or t9e
e=ecut,on o8 t9e am,cable settlement, 8,l,n* t9e same 7,t9 t9e .un,c,+al Tr,al #ourt o8
Qoronadal, "out9 #otabato. T9e +roceed,n*s :are; st,ll +end,n* be8ore t9e sa,d court, 7,t9
t9e 8,l,n* o8 t9e ,nstant su,t.
8. As a conse>uence o8 t9e sale, t9e s+ouses Gu,an* s+ent 56. 8or t9e +re+arat,on
o8 t9e Deed o8 Trans8er o8 R,*9ts, 3=9. MAM, 5(,. as t9e amount t9e$ +a,d to .rs.
.anuela #alleCo, 9av,n* assumed t9e rema,n,n* obl,*at,on o8 t9e #or+uBes to .rs.
#alleCo @3=9. M3MAG 51. 8or t9e +re+arat,on o8 3=9,b,t M3MG a total o8 5!&(.62 bas,c ta=
and s+ec,al educat,on 8und on t9e lotG 512!.& as t9e total documentar$ stam+ ta= on t9e
var,ous documentsG 5&3&.!2 8or t9e ca+,tal *a,ns ta=G 522.& as trans8er ta=G a standard
8ee o8 51!.G cert,8,cat,on 8ee o8 5&.. T9ese e=+enses +art,cularl$ t9e ta=es and ot9er
e=+enses to7ards t9e trans8er o8 t9e t,tle to t9e s+ouses Gu,an*s 7ere ,ncurred 8or t9e
79ole 1ot (, Bloc6 8, @1R#A 5sd016&4(.
.uling of .espondent Court
Res+ondent #ourt 8ound no revers,ble error ,n t9e tr,al courtNs rul,n* t9at an$ al,enat,on or encumbrance
b$ t9e 9usband o8 t9e conCu*al +ro+et$ 7,t9out t9e consent o8 9,s 7,8e ,s null and vo,d as +rov,ded under
Art,cle 124 o8 t9e 'am,l$ #ode. %t also reCected +et,t,onersN content,on t9at t9e Mam,cable sttlementM rat,8,ed
sa,d sale, citing Art,cle 14( o8 t9e #ode 79,c9 e=+ressl$ bars rat,8,cat,on o8 t9e contracts s+ec,8,ed
t9ere,n, +art,cularl$ t9ose M+ro9,b,ted or declared vo,d b$ la7.M
Eence, t9,s +et,t,on.
/
The Issues
%n t9e,r .emorandum, +et,t,oners ass,*n to +ubl,c res+ondent t9e 8ollo7,n* errors?
10
%
)9et9er or not t9e assa,led Deed o8 Trans8er o8 R,*9ts 7as val,dl$ e=ecuted.
%%
)9et9er or not t9e #our o8 A++eals erred ,n not decla,r,n* as vo,dable contract under Art.
13( o8 t9e #,v,l #ode t9e ,m+u*ned Deed o8 Trans8er o8 R,*9ts 79,c9 7as val,dl$ rat,8,ed
t9ru t9e e=ecut,on o8 t9e Mam,cable settlementM b$ t9e contend,n* +art,es.
%%%
)9et9er or not t9e #ourt o8 A++eals erred ,n not sett,n* as,de t9e 8,nd,n*s o8 t9e #ourt a
7uo 79,c9 reco*n,Bed as la78ul and val,d t9e o7ners9,+ and +ossess,on o8 +r,vate
res+ondent over t9e rema,n,n* one 9al8 @1D2A +ort,on o8 t9e +ro+erl$.
%n a nuts9ell, +et,t,oners0s+ouses contend t9at @1A t9e contract o8 sale @Deed o8 Trans8er o8 R,*9tsA 7as
merel$ vo,dable, and @2A suc9 contract 7as rat,8,ed b$ +r,vate res+ondent 79en s9e entered ,nto an
am,cable sttlement 7,t9 t9em.
This Court-s .uling
T9e +et,t,on ,s bere8t o8 mer,t.
+irst Issue? Void or Voidable Contract;
5et,t,oners ,ns,st t9at t9e >uest,oned Deed o8 Trans8er o8 R,*9ts 7as val,dl$ e=ecuted b$ t9e +art,es0
l,t,*ants ,n *ood 8a,t9 and 8or valuable cons,derat,on. T9e absence o8 +r,vate res+ondentNs consent merel$
rendered t9e Deed vo,dable under Art,cle 13( o8 t9e #,v,l #ode, 79,c9 +rov,des?
Art. 13(. T9e 8ollo7,n* contracts are vo,dable or annullable, even t9ou*9 t9ere ma$
9ave been no dama*e to t9e contract,n* +art,es?
=== === ===
@2A T9ose 79ere t9e consent ,s v,t,ated b$ m,sta6e, v,olence, ,nt,m,dat,on, undue
,n8luence or 8raud.
T9ese contracts are b,nd,n*, unless t9e$ are annulled b$ a +ro+er act,on ,n court. T9e$
are susce+t,ble o8 rat,8,cat,on.@nA
T9e error ,n +et,t,onersN content,on ,s ev,dent. Art,cle 13(, +ar. 2, re8ers to contracts v,s,ted b$ v,ces o8
consent,i.e., contracts 79,c9 7ere entered ,nto b$ a +erson 79ose consent 7as obta,ned and v,t,ated
t9rou*9 m,sta6e, v,olence, ,nt,m,dat,on, undue ,n8luence or 8raud. %n t9,s ,nstance, +r,vate res+ondentNs
consent to t9e contract o8 sale o8 t9e,r conCu*al +ro+ert$ 7as totall$ ,ne=,stent or absent. G,lda #or+uB, on
d,rect e=am,nat,on, test,8,ed t9us?
11
J No7, on .arc9 1, 1((, could $ou st,ll recall 79ere $ou 7ereK
A % 7as st,ll ,n .an,la dur,n* t9at t,me.
=== === ===
ATT-. 'L3NT3"?
J )9en d,d $ou come bac6 to Qoronadal, "out9 #otabatoK
A T9at 7as on .arc9 11, 1((, .aNam.
J No7, 79en $ou arr,ved at Qoronadal, 7as t9ere an$ +roblem 79,c9
arose concern,n* t9e o7ners9,+ o8 $our res,dent,al 9ouse at #alleCo
"ubd,v,s,onK
A )9en % arr,ved 9ere ,n Qoronadal, t9ere 7as a +roblem 79,c9 arose
re*ard,n* m$ res,dent,al 9ouse and lot because ,t 7as sold b$ m$
9usband 7,t9out m$ 6no7led*e.
T9,s be,n* t9e case, sa,d contract +ro+erl$ 8alls 7,t9,n t9e amb,t o8 Art,cle 124 o8 t9e 'am,l$ #ode, 79,c9
7as correctl$ a++l,ed b$ t9e teo lo7er court?
Art. 124. T9e adm,n,strat,on and enCo$ment o8 t9e conCu*al +artner9,+ +ro+erl$ s9all
belon* to bot9 s+ouses Co,ntl$. %n case o8 d,s*reement, t9e 9usbandNs dec,s,on s9all
+reva,l, subCect recourse to t9e court b$ t9e 7,8e 8or +ro+er remed$, 79,c9 must be
ava,led o8 7,t9,n 8,ve $ears 8rom t9e date o8 t9e contract ,m+lement,n* suc9 dec,s,on.
%n t9e event t9at one s+ouse ,s ,nca+ac,tated or ot9er7,se unable to +art,c,+ate ,n t9e
adm,n,strat,on o8 t9e conCu*al +ro+ert,es, t9e ot9er s+ouse ma$ assume sole +o7ers o8
adm,n,strat,on. T9ese +o7ers do not ,nclude t9e +o7ers o8 d,s+os,t,on or encumbrance
79,c9 must 9ave t9e aut9or,t$ o8 t9e court or t9e 7r,tten consent o8 t9e ot9er s+ouse. In
the absence of such authority or consent( the disposition or encumbrance shall be void.
Eo7ever, t9e transact,on s9all be construed as a cont,nu,n* o88er on t9e +art o8 t9e
consent,n* s+ouse and t9e t9,rd +erson, and ma$ be +er8ected as a b,nd,n* contract
u+on t9e acce+tance b$ t9e ot9er s+ouse or aut9or,Bat,on b$ t9e court be8ore t9e o88er ,s
7,t9dra7n b$ e,t9er or bot9 o88erors. @16&aA @3m+9as,s su++l,edA
#om+ar,n* sa,d la7 7,t9 ,ts e>u,valent +rov,s,on ,n t9e #,v,l #ode, t9e tr,al court adro,tl$ e=+la,ned t9e
amendator$ e88ect o8 t9e above +rov,s,on ,n t9,s 7,se?
12
T9e le*al +rov,s,on ,s clear. T9e d,s+os,t,on or encumbrance ,s vo,d. %t becomes st,ll
clearer ,8 7e com+are t9e same 7,t9 t9e e>u,valent +rov,s,on o8 t9e #,v,l #ode o8 t9e
59,l,++,nes. Lnder Art,cle 166 o8 t9e #,v,l #ode, t9e 9usband cannot *enerall$ al,enate or
encumber an$ real +ro+ert$ o8 t9e conCu*al +artners9,t 7,t9out t9e 7,8eNs consent. T9e
al,enat,on or encumbrance ,8 so made 9o7ever ,s not null and vo,d. %t ,s merel$ vo,dable.
T9e o88ended 7,8e ma$ br,n* an act,on to annul t9e sa,d al,enat,on or encumbrance. T9us
t9e +rov,s,on o8 Art,cle 1!3 o8 t9e #,v,l #ode o8 t9e 59,l,++,nes, to 7,t?
Art. 1!3. T9e 7,8e ma$, dur,n* t9e marr,a*e and 7,t9,n ten $ears 8rom t9e
transact,on >uest,oned, as6 t9e courts 8or t9e annulment o8 an$ contract
o8 t9e 9usband entered ,nto 7,t9out 9er consent, 79en suc9 consent ,s
re>u,red, or an$ act or contract o8 t9e 9usband 79,c9 tends to de8raud
9er or ,m+a,r 9er ,nterest ,n t9e conCu*al +artners9,+ +ro+ert$. "9ould t9e
7,8e 8a,l to e=erc,se t9,s r,*9t, s9e or 9er 9e,rs a8ter t9e d,ssolut,on o8 t9e
marr,a*e, ma$ demand t9e value o8 +ro+ert$ 8raudulentl$ al,enated b$
t9e 9usband.@nA
T9,s +art,cular +rov,s,on *,v,n* t9e 7,8e ten @1A $ears . . . dur,n* :t9e; marr,a*e to annul
t9e al,enat,on or encumbrance 7as not carr,ed over to t9e 'am,l$ #ode. %t ,s t9us clear
t9at an$ al,enat,on or encumbrance made a8ter Au*ust 3, 1(88 79en t9e 'am,l$ #ode
too6 e88ect b$ t9e 9usband o8 t9e conCu*al +artners9,+ +ro+ert$ 7,t9out t9e consent o8 t9e
7,8e ,s null and vo,d.
'urt9ermore, ,t must be noted t9at t9e 8raud and t9e ,nt,m,dat,on re8erred to b$ +et,t,oners 7ere
+er+etrated ,n t9e e=ecut,on o8 t9e document embod$,n* t9e am,cable settlement. G,lda #or+uB alle*ed
dur,n* tr,al t9at baran*a$ aut9or,t,es made 9er s,*n sa,d document t9rou*9 m,sre+resentat,on and
coerc,on.
13
%n an$ event, ,ts e=ecut,on does not alter t9e vo,d c9aracter o8 t9e deed o8 sale bet7een t9e
9usband and t9e +et,t,oners0s+ouses, as 7,ll be d,scussed later. T9e 8act rema,ns t9at suc9 contract 7as
entered ,nto 7,t9out t9e 7,8eNs consent.
%n sum, t9e null,t$ o8 t9e contract o8 sale ,s +rem,sed on t9e absence o8 +r,vate res+ondentNs consent. To
const,tute a val,d contract, t9e #,v,l #ode re>u,res t9e concurrence o8 t9e 8ollo7,n* elements? @1A cause,
@2A obCect, and @3A consent,
14
t9e last element be,n* ,ndub,tabl$ absent ,n t9e case at bar.
)econd Issue? Amicable )ettlement
%ns,st,n* t9at t9e contract o8 sale 7as merel$ vo,dable, +et,t,oners aver t9at ,t 7as dul$ rat,8,ed b$ t9e
contend,n* +art,es t9rou*9 t9e Mam,cable settlementM t9e$ e=ecuted on .arc9 16, 1(( ,n Baran*a$ #ase
No. 38.
T9e +os,t,on ,s not 7ell ta6en. T9e tr,al and t9e a++ellate courts 9ave resolved t9,s ,ssue ,n 8avor o8 t9e
+r,vate res+ondent. T9e tr,al court correctl$ 9eld?
1,
B$ t9e s+ec,8,c +rov,s,on o8 t9e la7 :Art. 13(, #,v,l #ode; t9ere8ore, t9e Deed to Trans8er
o8 R,*9ts @3=9. MAMA cannot be rat,8,ed, even b$ an Mam,cable settlementM. T9e
+art,c,+at,on b$ some baran*a$ aut9or,t,es ,n t9e Mam,cable settlementM cannot ot9er7,se
val,date an ,nval,d act. .oreover, ,t cannot be den,ed t9at t9e Mam,cable settlement @3=9.
MBMA entered ,nto b$ +la,nt,88 G,lda #or+uB and de8endent s+ouses Gu,an* ,s a contract. %t
,s a d,rect o88s9oot o8 t9e Deed o8 Trans8er o8 R,*9ts @3=9. MAMA. B$ e=+ress +rov,s,on o8
la7, suc9 a contract ,s also vo,d. T9us, t9e le*al +rov,s,on, to 7,t?
Art. 1422. Acontract 79,c9 ,s t9e d,rect result o8 a +rev,ous ,lle*al
contract, ,s also vo,d and ,ne=,stent. @#,v,l #ode o8 t9e 59,l,++,nesA.
%n summat,on t9ere8ore, bot9 t9e Deed o8 trans8er o8 R,*9ts @3=9. MAMA and t9e Mam,cable
settlementM @3=9. M3MA are null and vo,d.
Doctr,nall$ and clearl$, a vo,d contract cannot be rat,8,ed.
16
Ne,t9er can t9e Mam,cable settlementM be cons,dered a cont,nu,n* o88er t9at 7as acce+ted and +er8ected
b$ t9e +art,es, 8ollo7,n* t9e last sentence o8 Art,cle 124. T9e order o8 t9e +ert,nent events ,s clear? a8ter
t9e sale, +et,t,oners 8,led a com+la,nt 8or tres+ass,n* a*a,nst +r,vate res+ondent, a8ter 79,c9 t9e baran*a$
aut9or,t,es secured an Mam,cable settlementM and +et,t,oners 8,led be8ore t9e .T# a mot,on 8or ,ts
e=ecut,on. T9e settlement, 9o7ever, does not ment,on a cont,nu,n* o88er to sell t9e +ro+ert$ or an
acce+tance o8 suc9 a cont,nu,n* o88er. %ts tenor 7as to t9e e88ect t9at +r,vate res+ondent 7ould vacate t9e
+ro+ert$. B$ no stretc9 o8 t9e ,ma*,nat,on, can t9e #ourt ,nter+ret t9,s document as t9e acce+tance
ment,oned ,n Art,cle 124.
)E3R3'4R3, t9e #ourt 9ereb$ D3N%3" t9e +et,t,on and A''%R." t9e c9allen*ed Dec,s,on and
Resolut,on. #osts a*a,nst +et,t,oners.
"4 4RD3R3D.
$avide( !r.( Bellosillo( Vitug and 9uisumbing( !!.( concur.
'%R"T D%V%"%4N
[G.R. No. 143/38. 2%&-%r. 23, 2002]
T*EL$A A. 2ADER>$ANAL, petitioner, vs. NR$A "ERNANDE# C. CA$AI!A %&' EDILBERT
CA$AI!A, respondents.
D E C I ! I N
7A+UNAN, J.:
T9e ,ssue ra,sed ,n t9,s case ,s 79et9er or not t9e 9usband ma$ val,dl$ d,s+ose o8 a conCu*al
+ro+ert$ 7,t9out t9e 7,8eFs 7r,tten consent.
T9e +resent controvers$ 9ad ,ts be*,nn,n* 79en +et,t,oner T9elma A. /ader0.analo alle*edl$ came
across an advert,sement +laced b$ res+ondents, t9e "+ouses Norma 'ernandeB
#.#ama,sa and 3d,lberto #ama,sa, ,n t9e #lass,8,ed Ads "ect,on o8 t9e ne7s+a+er BL113T%N T4DA- ,n
,ts A+r,l, 1((2 ,ssue, 8or t9e sale o8 t9e,r ten0door a+artment ,n .a6at,, as 7ell as t9at ,nTa$ta$, R,Bal.
As narrated b$ +et,t,oner ,n 9er com+la,nt 8,led 7,t9 t9e Re*,onal Tr,al #ourt o8 .a6at,, .etro .an,la,
s9e 7as ,nterested ,n bu$,n* t9e t7o +ro+ert,es so s9e ne*ot,ated 8or t9e +urc9ase t9rou*9 a real estate
bro6er, .r. 5roceso 3reno, aut9or,Bed b$ res+ondent s+ouses.
:1;
5et,t,oner made a v,sual ,ns+ect,on o8
t9e sa,d lots 7,t9 t9e real estate bro6er and 7as s9o7n t9e ta= declarat,ons, real +ro+ert$ ta= +a$ment
rece,+ts, locat,on +lans, and v,c,n,t$ ma+s relat,n* to t9e +ro+ert,es.
:2;
T9erea8ter, +et,t,oner met 7,t9 t9e
vendors 79o turned out to be res+ondent s+ouses. "9e made a de8,n,te o88er to bu$ t9e +ro+ert,es to
res+ondent 3d,lberto #ama,sa 7,t9 t9e 6no7led*e and con8orm,t$ o8 9,s 7,8e, res+ondent
Norma #ama,sa ,n t9e +resence o8 t9e real estate bro6er.
:3;
A8ter some bar*a,n,n*, +et,t,oner
and 3d,lberto a*reed u+on t9e +urc9ase +r,ce o8 51,&,. 8or t9e Ta$ta$ +ro+ert$
and 52,1,. 8or t9e .a6at, +ro+ert$
:4;
to be +a,d on ,nstallment bas,s
7,t9 do7n+a$ments o8 51,. and 52,., res+ect,vel$, on A+r,l 1&, 1((2. T9e balance
t9ereo8 7as to be +a,d as 8ollo7s
:&;
?
Ta$ta$ 5ro+ert$ .a6at, 5ro+ert$
6t9 mont9 52,. 53,.
12t9 mont9 !,. 1,6,.
18t9 mont9 &,.
T9,s a*reement 7as 9and7r,tten b$ +et,t,oner and s,*ned b$ 3d,lberto.
:6;
)9en +et,t,oner +o,nted out
t9e conCu*al nature o8 t9e +ro+ert,es, 3d,lberto assured 9er o8 9,s 7,8eFs con8orm,t$ and consent to t9e
sale.
:!;
T9e 8ormal t$+e7r,tten #ontracts to "ell 7ere t9erea8ter +re+ared b$ +et,t,oner. T9e 8ollo7,n* da$,
+et,t,oner, t9e real estate bro6er and 3d,lberto met ,n t9e latterFs o88,ce 8or t9e 8ormal s,*n,n* o8 t9e
t$+e7r,tten #ontracts to "ell.
:8;
A8ter 3d,lberto s,*ned t9e contracts, +et,t,oner del,vered to 9,m t7o
c9ec6s, namel$, L#5B #9ec6 No. 628! dated A+r,l 1&, 1((2 8or52,. and L#5B #9ec6 No.
6288 also dated A+r,l 1&, 1((2 8or 51,. ,n t9e +resence o8 t9e real estate bro6er and an
em+lo$ee ,n 3d,lbertoFs o88,ce.
:(;
T9e contracts 7ere *,ven to 3d,lberto 8or t9e 8ormal a88,=,n* o8 9,s 7,8eFs
s,*nature.
T9e 8ollo7,n* da$, +et,t,oner rece,ved a call 8rom res+ondent Norma, re>uest,n* a meet,n* to clar,8$
some +rov,s,ons o8 t9e contracts.
:1;
To accommodate 9er >uer,es, +et,t,oner, accom+an,ed b$ 9er la7$er,
met 7,t9 3d,lberto and Norma and t9e real estate bro6er at #a8e R,Bal ,n .a6at,.
:11;
Dur,n* t9e meet,n*,
9and7r,tten notat,ons 7ere made on t9e contracts to sell, so t9e$ arran*ed to ,ncor+orate t9e notat,ons
and to meet a*a,n 8or t9e 8ormal s,*n,n* o8 t9e contracts.
:12;
)9en +et,t,oner met a*a,n 7,t9 res+ondent s+ouses and t9e real estate bro6er at 3d,lbertoFs o88,ce
8or t9e 8ormal a88,=,n* o8 NormaFs s,*nature, s9e 7as sur+r,sed 79en res+ondent s+ouses ,n8ormed 9er
t9at t9e$ 7ere bac6,n* out o8 t9e a*reement because t9e$ needed Hs+ot cas9I 8or t9e 8ull amount o8 t9e
cons,derat,on.
:13;
5et,t,oner rem,nded res+ondent s+ouses t9at t9e contracts to sell 9ad alread$ been dul$
+er8ected and NormaFs re8usal to s,*n t9e same 7ould undul$ +reCud,ce +et,t,oner. "t,ll, Norma re8used to
s,*n t9e contracts +rom+t,n* +et,t,oner to 8,le a com+la,nt 8or s+ec,8,c +er8ormance and dama*es a*a,nst
res+ondent s+ouses be8ore t9e Re*,onal Tr,al #ourt o8 .a6at,, Branc9 136 on A+r,l 2(, 1((2, to com+el
res+ondent Norma #ama,sa to s,*n t9e contracts to sell.
A .ot,on to D,sm,ss
:14;
7as 8,led b$ res+ondents 79,c9 7as den,ed b$ t9e tr,al court ,n ,ts Resolut,on
o8 /ul$ 21, 1((2.
:1&;
Res+ondents t9en 8,led t9e,r Ans7er 7,t9 #om+ulsor$ #ounter0cla,m, alle*,n* t9at ,t 7as an
a*reement bet7een 9ere,n +et,t,oner and res+ondent 3d,lberto #ama,sa t9at t9e sale o8 t9e subCect
+ro+ert,es 7as st,ll subCect to t9e a++roval and con8orm,t$ o8 9,s 7,8e Norma #ama,sa.
:16;
T9erea8ter,
79en Norma re8used to *,ve 9er consent to t9e sale, 9er re8usal 7as dul$ commun,cated b$ 3d,lberto to
+et,t,oner.
:1!;
T9e c9ec6s ,ssued b$ +et,t,oner 7ere returned to 9er b$ 3d,lberto and s9e acce+ted t9e
same 7,t9out an$ obCect,on.
:18;
Res+ondent 8urt9er cla,med t9at t9e acce+tance o8 t9e c9ec6s returned to
+et,t,oner s,*n,8,ed 9er assent to t9e cancellat,on o8 t9e sale o8 t9e subCect +ro+ert,es.
:1(;
Res+ondent
Norma den,ed t9at s9e ever +art,c,+ated ,n t9e ne*ot,at,ons 8or t9e sale o8 t9e subCect +ro+ert,es and t9at
s9e *ave 9er consent and con8orm,t$ to t9e same.
:2;
4n 4ctober 2, 1((2, res+ondent Norma '. #ama,sa 8,led a .ot,on 8or "ummar$
/ud*ment
:21;
assert,n* t9at t9ere ,s no *enu,ne ,ssue as to an$ mater,al 8act on t9e bas,s o8 t9e +lead,n*s
and adm,ss,on o8 t9e +art,es cons,der,n* t9at t9e 7,8eFs 7r,tten consent 7as not obta,ned ,n t9e contract to
sell, t9e subCect conCu*al +ro+ert,es belon*,n* to res+ondentsG 9ence, t9e contract 7as null and vo,d.
4n A+r,l 14, 1((3, t9e tr,al court rendered a summar$ Cud*ment d,sm,ss,n* t9e com+la,nt on t9e
*round t9at under Art. 124 o8 t9e 'am,l$ #ode, t9e court cannot ,ntervene to aut9or,Be t9e transact,on ,n
t9e absence o8 t9e consent o8 t9e 7,8e s,nce sa,d 7,8e 79o re8used to *,ve consent 9ad not been s9o7n to
be ,nca+ac,tated. T9e d,s+os,t,ve +ort,on o8 t9e tr,al courtFs dec,s,on reads?
)E3R3'4R3, cons,der,n* t9ese +rem,ses, Cud*ment ,s 9ereb$ rendered?
1. D,sm,ss,n* t9e com+la,nt and order,n* t9e cancellat,on o8 t9e Not,ce o8 1,s 5endens b$ reason o8 ,ts
8,l,n* on T#T Nos. @46486A "08!24 and @464861A "08!2& o8 t9e Re*,str$ o8 Deeds at .a6at, and on T#T
Nos. 2(&(!6 and 2(&(!1 o8 t9e Re*,str$ o8 R,Bal.
2. 4rder,n* +la,nt,88 T9elma A. /ader to +a$ de8endant s+ouses Norma and 3d,lberto #ama,sa, '%'T-
TE4L"AND @5&,.A as .oral Dama*es and '%'T- TE4L"AND @5&,.A as Attorne$Fs 'ees.
#osts a*a,nst +la,nt,88.
:22;
5et,t,oner, t9us, elevated t9e case to t9e #ourt o8 A++eals. 4n November 2(, 2, t9e #ourt o8
A++eals a88,rmed t9e d,sm,ssal b$ t9e tr,al court but deleted t9e a7ard o8 5&,. as dama*es
and 5&,. as attorne$Fs 8ees.
T9e #ourt o8 A++eals e=+la,ned t9at t9e +ro+ert,es subCect o8 t9e contracts 7ere conCu*al +ro+ert,es
and as suc9, t9e consent o8 bot9 s+ouses ,s necessar$ to *,ve e88ect to t9e sale. ",nce +r,vate
res+ondent Norma #ama,sa re8used to s,*n t9e contracts, t9e sale 7as never +er8ected. %n 8act,
t9e do7n+a$ment 7as returned b$ res+ondent s+ouses and 7as acce+ted b$ +et,t,oner. T9e #ourt o8
A++eals also stressed t9at t9e aut9or,t$ o8 t9e court to allo7 sale or encumbrance o8 a conCu*al +ro+ert$
7,t9out t9e consent o8 t9e ot9er s+ouse ,s a++l,cable onl$ ,n cases 79ere t9e sa,d s+ouse ,s ,nca+ac,tated
or ot9er7,se unable to +art,c,+ate ,n t9e adm,n,strat,on o8 t9e conCu*al +ro+ert$.
Eence, t9e +resent recourse ass,*n,n* t9e 8ollo7,n* errors?
TE3 E4N4RAB13 #4LRT 4' A553A1" GR%3V%4L"1- 3RR3D %N R3ND3R%NG "L..AR-
/LDG.3NT %N D%".%""%NG TE3 #4.51A%NT 3NT%R31- AND 4RD3R%NG TE3 #AN#311AT%4N
4' N4T%#3 4' 1%" 53ND3N" 4N TE3 T%T13" 4' TE3 "LB/3#T R3A1 5R453RT%3"G
TE3 E4N4RAB13 #4LRT 4' A553A1" GR%3V%4L"1- 3RR3D %N 'A%1%NG T4 #4N"%D3R
TEAT TE3 "A13 4' R3A1 5R453RT%3" B- R3"54ND3NT" T4 53T%T%4N3R EAV3 A1R3AD-
B33N 53R'3#T3D, '4R A'T3R TE3 1ATT3R 5A%D 53,. D4)N5A-.3NT,
R3"54ND3NT .R". #A.A%"A N3V3R 4B/3#T3D T4 "T%5L1AT%4N" )%TE R3"53#T T4
5R%#3, 4B/3#T AND T3R." 4' 5A-.3NT %N TE3 #4NTRA#T T4 "311 A1R3AD- "%GN3D B-
TE3 53T%T%4N3R, R3"54ND3NT .R. #A.A%"A AND )%TN3""3" .ARQ3D A" ANN3O HGI %N
TE3 #4.51A%NT 3O#35T, '4R .%N4R 5R4V%"%4N" A1R3AD- %.51%3D B- 1A), 1%Q3
3/3#T.3NT 4' T3NANT", "LBD%V%"%4N 4' T%T13 AND R3"#%""%4N %N #A"3 4'
N4N5A-.3NT, )E%#E 53T%T%4N3R R3AD%1- AGR33D AND A##3D3D T4 TE3%R
%N#1L"%4NG
TE3 E4N4RAB13 #4LRT 4' A553A1" GR%3V%4L"1- 3RR3D )E3N %T 'A%13D T4
#4N"%D3R TEAT #4NTRA#T 4' "A13 %" #4N"3N"LA1 AND %T %" 53R'3#T3D B- TE3
.3R3 #4N"3NT 4' TE3 5ART%3" AND TE3 A551%#AB13 5R4V%"%4N" AR3 ART%#13" 11&!,
13&6, 13&!, 13&8, 143, 14& AND 14!& 4' TE3 #%V%1 #4D3 4' TE3 5E%1%55%N3" AND
G4V3RN3D B- TE3 "TATLT3 4' 'RALD.
:23;
T9e #ourt does not 8,nd error ,n t9e dec,s,ons o8 bot9 t9e tr,al court and t9e #ourt o8 A++eals.
5et,t,oner alle*es t9at t9e tr,al court erred 79en ,t entered a summar$ Cud*ment ,n 8avor o8
res+ondent s+ouses t9ere be,n* a *enu,ne ,ssue o8 8act. 5et,t,oner ma,nta,ns t9at t9e ,ssue o8 79et9er
t9e contracts to sell bet7een +et,t,oner and res+ondent s+ouses 7as +er8ected ,s a >uest,on o8 8act
necess,tat,n* a tr,al on t9e mer,ts.
T9e #ourt does not a*ree. A summar$ Cud*ment ,s one *ranted b$ t9e court u+on mot,on b$ a +art$
8or an e=+ed,t,ous settlement o8 a case, t9ere a++ear,n* 8rom t9e +lead,n*s, de+os,t,ons, adm,ss,ons and
a88,dav,ts t9at t9ere are no ,m+ortant >uest,ons or ,ssues o8 8act ,nvolved, and t9at t9ere8ore t9e mov,n*
+art$ ,s ent,tled to Cud*ment as a matter o8 la7.
:24;
A +erusal o8 t9e +lead,n*s subm,tted b$ bot9 +art,es
s9o7 t9at t9ere ,s no *enu,ne controvers$ as to t9e 8acts ,nvolved t9ere,n.
Bot9 +art,es adm,t t9at t9ere 7ere ne*ot,at,ons 8or t9e sale o8 8our +arcels o8 land bet7een +et,t,oner
and res+ondent s+ousesG t9at +et,t,oner and res+ondent 3d,lberto #ama,sa came to an a*reement as to
t9e +r,ce and t9e terms o8 +a$ment, and a do7n+a$ment 7as +a,d b$ +et,t,oner to t9e latterG and t9at
res+ondent Norma re8used to s,*n t9e contracts to sell. T9e ,ssue t9us +osed 8or resolut,on ,n t9e tr,al
court 7as 79et9er or not t9e contracts to sell bet7een +et,t,oner and res+ondent s+ouses 7ere alread$
+er8ected suc9 t9at t9e latter could no lon*er bac6 out o8 t9e a*reement.
T9e la7 re>u,res t9at t9e d,s+os,t,on o8 a conCu*al +ro+ert$ b$ t9e 9usband as adm,n,strator ,n
a++ro+r,ate cases re>u,res t9e 7r,tten consent o8 t9e 7,8e, ot9er7,se, t9e d,s+os,t,on ,s vo,d. T9us, Art,cle
124 o8 t9e 'am,l$ #ode +rov,des?
Art. 124. T9e adm,n,strat,on and enCo$ment o8 t9e conCu*al +artners9,+ +ro+ert$ s9all belon* to bot9
s+ouses Co,ntl$. %n case o8 d,sa*reement, t9e 9usbandFs dec,s,on s9all +reva,l, subCect to recourse to t9e
court b$ t9e 7,8e 8or a +ro+er remed$, 79,c9 must be ava,led o8 7,t9,n 8,ve $ears 8rom t9e date o8 t9e
contract ,m+lement,n* suc9 dec,s,on.
%n t9e event t9at one s+ouse ,s ,nca+ac,tated or ot9er7,se unable to +art,c,+ate ,n t9e adm,n,strat,on o8 t9e
conCu*al +ro+ert,es, t9e ot9er s+ouse ma$ assume sole +o7ers o8 adm,n,strat,on. T9ese +o7ers do not
,nclude t9e +o7ers o8 d,s+os,t,on or encumbrance 79,c9 must 9ave t9e aut9or,t$ o8 t9e court or t9e 7r,tten
consent o8 t9e ot9er s+ouse. %n t9e absence o8 suc9 aut9or,t$ or consent t9e d,s+os,t,on or
encumbrance s9all be vo,d.Eo7ever, t9e transact,on s9all be construed as a cont,nu,n* o88er on t9e +art
o8 t9e consent,n* s+ouse and t9e t9,rd +erson, and ma$ be +er8ected as a b,nd,n* contract u+on t9e
acce+tance b$ t9e ot9er s+ouse or aut9or,Bat,on b$ t9e court be8ore t9e o88er ,s 7,t9dra7n b$ e,t9er or
bot9 o88erors. @Lnderscor,n* ours.A
T9e +ro+ert,es subCect o8 t9e contracts ,n t9,s case 7ere conCu*alG 9ence, 8or t9e contracts to sell to
be e88ect,ve, t9e consent o8 bot9 9usband and 7,8e must concur.
Res+ondent Norma #ama,sa adm,ttedl$ d,d not *,ve 9er 7r,tten consent to t9e sale. 3ven *rant,n*
t9at res+ondent Norma act,vel$ +art,c,+ated ,n ne*ot,at,n* 8or t9e sale o8 t9e subCect +ro+ert,es, 79,c9 s9e
den,ed, 9er 7r,tten consent to t9e sale ,s re>u,red b$ la7 8or ,ts val,d,t$. ",*n,8,cantl$, +et,t,oner 9ersel8
adm,ts t9at Norma re8used to s,*n t9e contracts to sell. Res+ondent Norma ma$ 9ave been a7are o8 t9e
ne*ot,at,ons 8or t9e sale o8 t9e,r conCu*al +ro+ert,es. Eo7ever, be,n* merel$ a7are o8 a transact,on ,s not
consent.
:2&;
',nall$, +et,t,oner ar*ues t9at s,nce res+ondent Norma unCustl$ re8uses to a88,= 9er s,*natures to t9e
contracts to sell, court aut9or,Bat,on under Art,cle 124 o8 t9e 'am,l$ #ode ,s 7arranted.
T9e ar*ument ,s bere8t o8 mer,t. 5et,t,oner ,s correct ,nso8ar as s9e alle*es t9at ,8 t9e 7r,tten consent
o8 t9e ot9er s+ouse cannot be obta,ned or ,s be,n* 7,t99eld, t9e matter ma$ be brou*9t to court 79,c9
7,ll *,ve suc9 aut9or,t$ ,8 t9e same ,s 7arranted b$ t9e c,rcumstances. Eo7ever, ,t s9ould be stressed t9at
court aut9or,Bat,on under Art. 124 ,s onl$ resorted to ,n cases 79ere t9e s+ouse 79o does not *,ve
consent ,s ,nca+ac,tated.
:26;
%n t9,s case, +et,t,oner 8a,led to alle*e and +rove t9at res+ondent Norma 7as
,nca+ac,tated to *,ve 9er consent to t9e contracts. %n t9e absence o8 suc9 s9o7,n* o8 t9e 7,8eFs ,nca+ac,t$,
court aut9or,Bat,on cannot be sou*9t.
Lnder t9e 8ore*o,n* 8acts, t9e mot,on 8or summar$ Cud*ment 7as +ro+er cons,der,n* t9at t9ere 7as
no *enu,ne ,ssue as to an$ mater,al 8act. T9e onl$ ,ssue to be resolved b$ t9e tr,al court 7as 79et9er t9e
contract to sell ,nvolv,n* conCu*al +ro+ert,es 7as val,d 7,t9out t9e 7r,tten consent o8 t9e 7,8e.
)*ERE"RE, t9e +et,t,on ,s 9ereb$ D3N%3D and t9e dec,s,on o8 t9e #ourt o8 A++eals
dated November 2(, 2 ,n #A0G.R. #V No. 43421 A''%R.3D.
! RDERED.
$avide( !r.( C.!.( <Chairman=( Puno( Pardo( and 5nares-)antiago( !!.( concur.
Re+ubl,c o8 t9e 59,l,++,nes
!U+RE$E CURT
.an,la
TE%RD D%V%"%4N
G.R. No. 18,063 2-:. 23, 200/
!+!. LITA DE LEN %&' "ELI? RI TARR!A, 5et,t,oners,
vs.
ANITA B. DE LEN, DANIL B. DE LEN, %&' VIL$A B. DE LEN, Res+ondents.
D 3 # % " % 4 N
VELA!C, 2R., J.:
T9e #ase
Be8ore us ,s a 5et,t,on 8or Rev,e7 on #ert,orar, under Rule 4& assa,l,n* and see6,n* to set as,de t9e
Dec,s,on
1
and Resolut,on
2
dated Au*ust 2!, 28 and 4ctober 2, 28, res+ect,vel$, o8 t9e #ourt o8
A++eals @#AA ,n #A0G.R. #V No. 88&!1. T9e #A a88,rmed 7,t9 mod,8,cat,on t9e 4ctober 4, 26
Dec,s,on
3
,n #,v,l #ase No. J40&1&(& o8 t9e Re*,onal Tr,al #ourt @RT#A, Branc9 22 ,n JueBon #,t$.
T9e 'acts
4n /ul$ 2, 1(6&, Bon,8ac,o 4. De 1eon, t9en s,n*le, and t9e 5eo+leFs Eomes,te and Eous,n*
#or+orat,on @5EE#A entered ,nto a #ond,t,onal #ontract to "ell 8or t9e +urc9ase on ,nstallment o8 a
1(1.3 s>uare0meter lot s,tuated ,n 'a,rv,e7, JueBon #,t$. "ubse>uentl$, on A+r,l 24, 1(68, Bon,8ac,o
marr,ed An,ta de 1eon ,n a c,v,l r,te o88,c,ated b$ t9e .un,c,+al .a$or o8 <ara*osa, Nueva 3c,Ca. To t9,s
un,on 7ere born Dan,lo and V,lma.
'ollo7,n* t9e 8ull +a$ment o8 t9e cost +r,ce 8or t9e lot t9us +urc9ased, 5EE# e=ecuted, on /une 22, 1(!,
a ',nal Deed o8 "ale ,n 8avor o8 Bon,8ac,o. Accord,n*l$, Trans8er #ert,8,cate o8 T,tle @T#TA No. 1!36!! 7as
,ssued on 'ebruar$ 24, 1(!2 ,n t9e name o8 Bon,8ac,o, Ms,n*le.M
"ubse>uentl$, Bon,8ac,o, 8or 595 1(,, sold t9e subCect lot to 9er s,ster, 1,ta, and 9usband 'el,= R,o
Tarrosa @TarrosasA, +et,t,oners 9ere,n. T9e conve$,n* Deed o8 "ale dated /anuar$ 12, 1(!4 @Deed o8
"aleA d,d not bear t9e 7r,tten consent and s,*nature o8 An,ta.
T9erea8ter, or on .a$ 23, 1(!!, Bon,8ac,o and An,ta rene7ed t9e,r vo7s ,n a c9urc9 7edd,n* at "t. /o9n
t9e Ba+t,st 5ar,s9 ,n "an /uan, .an,la.
4n 'ebruar$ 2(, 1((6, Bon,8ac,o d,ed.
T9ree mont9s later, t9e Tarrosas re*,stered t9e Deed o8 "ale and 9ad T#T No. 1!36!! canceled. T9e$
secured t9e ,ssuance ,n t9e,r names o8 T#T No. N01!3(11 8rom t9e JueBon #,t$ Re*,ster o8 Deeds.
Gett,n* 7,nd o8 t9e cancellat,on o8 t9e,r 8at9erFs t,tle and t9e ,ssuance o8 T#T No. N01!3(11, Dan,lo and
V,lma 8,led on .a$ 1(, 23 a Not,ce o8 Adverse #la,m be8ore t9e Re*,ster o8 Deeds o8 JueBon #,t$ to
+rotect t9e,r r,*9ts over t9e subCect +ro+ert$. Ver$ muc9 later, An,ta, Dan,lo, and V,lma 8,led a
reconve$ance su,t be8ore t9e RT# ,n JueBon #,t$. %n t9e,r com+la,nt, An,ta and 9er c9,ldren alle*ed,
amon* ot9er t9,n*s, t9at 8raud attended t9e e=ecut,on o8 t9e Deed o8 "ale and t9at subse>uent acts o8
Bon,8ac,o 7ould s9o7 t9at 9e 7as st,ll t9e o7ner o8 t9e +arcel o8 land. %n su++ort o8 t9e,r case, t9e$
+resented, ,nter al,a, t9e 8ollo7,n* documents?
a. A Real 3state .ort*a*e e=ecut,on b$ Bon,8ac,o ,n 8avor o8 s+ouses #esar D,an6,na$ and
',lomena Almero on /ul$ 22, 1(!!.
b. A #,v,l #om+la,nt 8,led b$ Bon,8ac,o a*a,nst s+ouses #esar D,an6,na$ and ',lomena Almero on
November 2!, 1(!( 8or null,8,cat,on o8 t9e Real 3state .ort*a*e.
c. T9e Dec,s,on ,ssued b$ t9e #ourt o8 ',rst %nstance o8 R,Bal, JueBon #,t$, +romul*ated on /ul$
3, 1(82, null,8$,n* t9e Real 3state .ort*a*e.
4
T9e Tarrosas, ,n t9e,r Ans7er 7,t9 #om+ulsor$ #ountercla,m, averred t9at t9e lot Bon,8ac,o sold to t9em
7as 9,s e=clus,ve +ro+ert$ ,nasmuc9 as 9e 7as st,ll s,n*le 79en 9e ac>u,red ,t 8rom 5EE#. As 8urt9er
alle*ed, t9e$ 7ere not a7are o8 t9e su++osed marr,a*e bet7een Bon,8ac,o and An,ta at t9e t,me o8 t9e
e=ecut,on o8 t9e Deed o8 "ale.
A8ter several sc9eduled 9ear,n*s, bot9 +art,es, ass,sted b$ t9e,r res+ect,ve counsels, subm,tted a /o,nt
"t,+ulat,on o8 'acts 7,t9 .ot,on, to 7,t?
1. T9e +art,es 9ave a*reed to adm,t t9e 8ollo7,n* 8acts?
a. Bon,8ac,o 4. De 1eon, 79,le st,ll s,n*le = = =, +urc9ased 8rom t9e :5EE#; t9rou*9 a #ond,t,onal
#ontract to "ell on /ul$ 2, 1(6& a +arcel o8 land 7,t9 an area o8 1(1.3 s>uare meters s,tuated
,n 'a,rv,e7, JueBon #,t$ 8or 5841.!2G
b. 4n A+r,l 24, 1(68, Bon,8ac,o 4. De 1eon marr,ed +la,nt,88 An,ta B. De 1eon be8ore t9e .un,c,+al
.a$or o8 <ara*osa, Nueva 3c,Ca. Bot9 +art,es st,+ulate t9at sa,d marr,a*e ,s val,d and b,nd,n*
under t9e la7s o8 t9e 59,l,++,nesG
c. 4n /une 22, 1(!, Bon,8ac,o 4. De 1eon +a,d :5EE#; t9e total amount o8 51,23.!4 = = =. T9e
r,*9t o8 o7ners9,+ over t9e subCect +arcel o8 land 7as trans8erred to t9e late Bon,8ac,o 4. De 1eon
on /une 22, 1(!, u+on t9e 8ull +a$ment o8 t9e total :+r,ce; o8 51,23.!4 and u+on e=ecut,on o8
t9e ',nal Deed o8 "aleG
d. A8ter 8ull +a$ment, Bon,8ac,o 4. De 1eon 7as ,ssued :T#T; No. 1!36!! on 'ebruar$ 24, 1(!2G
e. 4n /anuar$ 12, 1(!4, Bon,8ac,o 4. De 1eon e=ecuted a Deed o8 "ale ,n 8avor o8 de8endants0
s+ouses 'el,= R,o Tarrosa and 1,ta 4. De 1eon d,s+os,n* t9e +arcel o8 land under T#T No.
1!36!! 8or valuable cons,derat,on amount o8 51(,. and subscr,bed be8ore Att$. "alvador R.
A*u,naldo 79o 7as comm,ss,oned to :notar,Be; documents on sa,d date. T9e +art,es st,+ulate t9at
t9e Deed o8 "ale ,s val,d and *enu,ne. Eo7ever, +la,nt,88 An,ta De 1eon 7as not a s,*nator$ to t9e
Deed o8 "ale e=ecuted on /anuar$ 12, 1(!4G
8. T9at +la,nt,88 An,ta B. De 1eon and t9e late Bon,8ac,o 4. De 1eon 7ere marr,ed ,n c9urc9 r,tes
on .a$ 23, 1(!! = = =G
*. T9e late Bon,8ac,o 4. De 1eon d,ed on 'ebruar$ 2(, 1((6 at t9e L"T Eos+,tal, 3s+aTa, .an,laG
9. T9e sa,d MDeed o8 "aleM e=ecuted on /anuar$ 12, 1(!4 7as re*,stered on .a$ 8, 1((6 be8ore
t9e 488,ce o8 t9e Re*,ster o8 Deeds o8 JueBon #,t$ and :T#T; No. N01!3(11 7as ,ssued to 1,ta 4.
De 1eon and 'el,= R,o Tarrosa.
&
T9e Rul,n* o8 t9e Tr,al #ourt
4n 4ctober 4, 26, t9e RT#, on t9e 8,nd,n* t9at t9e lot ,n >uest,on 7as t9e conCu*al +ro+ert$ o8
Bon,8ac,o and An,ta, rendered Cud*ment ,n 8avor o8 An,ta and 9er c9,ldren. T9e d,s+os,t,ve +ort,on o8 t9e
dec,s,on reads?
)E3R3'4R3, +rem,ses cons,dered, Cud*ment ,s 9ereb$ rendered ,n 8avor o8 +la,nt,88s and a*a,nst
de8endants ,n t9e 8ollo7,n* manner?
@1A Declar,n* t9e Deed o8 "ale dated /anuar$ 12, 1(!4 e=ecuted b$ t9e late Bon,8ac,o 4. De
1eon ,n 8avor o8 de8endants0s+ouses 1,ta De 1eon and 'el,= R,o Tarrosa vo,d ab ,n,t,oG
@2A D,rect,n* t9e Re*,ster o8 Deed o8 JueBon #,t$ to cancel Trans8er #ert,8,cate o8 T,tle No. N0
1!3(11 ,n t9e name o8 M1,ta 4. De 1eon, marr,ed to 'el,= R,o TarrosaM and restore Trans8er
#ert,8,cate o8 T,tle No. 1!366! ,n t9e name o8 MBon,8ac,o 4. De 1eonMG
@3A 4rder,n* t9e de8endants0s+ouses to +a$ +la,nt,88s t9e 8ollo7,n* sums?
@aA 52&,. as moral dama*esG
@bA 52,. as e=em+lar$ dama*esG
@cA 5&,. as attorne$Fs 8ees +lus a++earance 8ee o8 52,&. +er court
a++earanceG
@dA #osts o8 t9,s su,t.
"4 4RD3R3D.
A**r,eved, t9e Tarrosas a++ealed to t9e #A. As t9e$ 7ould subm,t, t9e RT# erred?
@1A ,n 8,nd,n* 8or t9e +la,nt,88s0a++ellees b$ declar,n* t9at t9e land subCect matter o8 t9e case ,s
conCu*al +ro+ert$G
@2A ,n not declar,n* t9e land as t9e e=clus,ve +ro+ert$ o8 Bon,8ac,o 4. De 1eon 79en sold to
de8endant0a++ellantsG
@3A ,n rul,n* t9at de8endant0a++ellants d,d not adduce an$ +roo8 t9at t9e +ro+ert$ 7as ac>u,red
solel$ b$ t9e e88orts o8 Bon,8ac,o 4. De 1eonG
@4A ,n declar,n* t9at one09al8 o8 t9e conCu*al assets does not vest to Bon,8ac,o 4. De 1eon
because o8 t9e absence o8 l,>u,dat,onG
@&A ,n cancell,n* T#T No. N01!3(11 and restored T#T No. :1!36!!; ,n t9e name o8 Bon,8ac,o 4.
De 1eonG
@6A ,n a7ard,n* moral and e=em+lar$ dama*es and attorne$Fs 8ees to t9e +la,nt,88s0a++ellees.
6
T9e Rul,n* o8 t9e A++ellate #ourt
4n Au*ust 2!, 28, t9e #A rendered a dec,s,on a88,rmator$ o8 t9at o8 t9e RT#, save 8or t9e a7ard o8
dama*es, attorne$Fs 8ees, and costs o8 su,t 79,c9 t9e a++ellate court ordered deleted. T9e 8allo o8 t9e #A
dec,s,on reads?
)E3R3'4R3, ,n v,e7 o8 t9e 8ore*o,n*, t9e assa,led dec,s,on dated 4ctober 4, 26, o8 t9e Re*,onal
Tr,al #ourt, Branc9 22, JueBon #,t$ ,n #,v,l #ase No. J040&1&(& ,s 9ereb$ A''%R.3D 7,t9
.4D%'%#AT%4N, ,n t9at t9e a7ard o8 moral and e=em+lar$ dama*es as 7ell as attorne$Fs 8ees,
a++earance 8ee and costs o8 su,t are 9ereb$ D313T3D.
"4 4RD3R3D.
/ust l,6e t9e RT#, t9e #A 9eld t9at t9e Tarrosas 8a,led to overt9ro7 t9e le*al +resum+t,on t9at t9e +arcel
o8 land ,n d,s+ute 7as conCu*al. T9e a++ellate court 9eld 8urt9er t9at t9e cases t9e$ c,ted 7ere
,na++l,cable.
As to t9e delet,on o8 t9e *rant o8 moral and e=em+lar$ dama*es, t9e #A, ,n *,st, 9eld t9at no ev,dence
7as adduced to Cust,8$ t9e a7ard. Based on t9e same reason, ,t also deleted t9e a7ard o8 attorne$Fs 8ees
and costs o8 su,t.
T9e Tarrosas moved but 7as den,ed recons,derat,on b$ t9e #A ,n ,ts e>uall$ assa,led resolut,on o8
4ctober 2, 28.
Eence, t9e$ 8,led t9,s +et,t,on.
T9e %ssues
%
)9et9er t9e :#A; *ravel$ erred ,n conclud,n* t9at t9e land +urc9ased on ,nstallment b$ Bon,8ac,o 4. De
1eon be8ore marr,a*e alt9ou*9 some ,nstallments 7ere +a,d dur,n* t9e marr,a*e ,s conCu*al and not 9,s
e=clus,ve +ro+ert$.
%%
)9et9er t9e :#A; *ravel$ erred ,n rul,n* t9at t9e 1orenBo, et al. vs. N,colas, et al., and AlvareB vs. 3s+,r,tu
cases do not a++l$ ,n t9e case at bar because ,n t9e latter t9e land ,nvolved ,s not a 8r,ar land unl,6e ,n t9e
8ormer.
%%%
)9et9er t9e :#A; *ravel$ erred ,n a88,rm,n* t9e dec,s,on o8 t9e tr,al court a >uo 79,c9 ruled t9at +et,t,oners
d,d not adduce an$ +roo8 t9at t9e land 7as ac>u,red solel$ b$ t9e e88orts o8 Bon,8ac,o 4. De 1eon.
%V
)9et9er t9e court o8 a++eals *ravel$ erred ,n a88,rm,n* t9e dec,s,on o8 t9e tr,al court 79,c9 ruled t9at one0
9al8 @1D2A o8 t9e conCu*al assets do not vest to Bon,8ac,o 4. De 1eon because o8 t9e absence o8
l,>u,dat,on.
4ur Rul,n*
T9e +et,t,on lac6s mer,t.
T9e "ubCect 5ro+ert$ ,s t9e
#onCu*al 5ro+ert$ o8 Bon,8ac,o and An,ta
T9e 8,rst t9ree ,ssues t9us ra,sed can be summed u+ to t9e >uest,on o8 79et9er or not t9e subCect
+ro+ert$ ,s conCu*al.
5et,t,oners assert t9at, s,nce Bon,8ac,o +urc9ased t9e lot 8rom 5EE# on ,nstallment be8ore 9e marr,ed
An,ta, t9e land 7as Bon,8ac,oFs e=clus,ve +ro+ert$ and not conCu*al, even t9ou*9 some ,nstallments 7ere
+a,d and t9e t,tle 7as ,ssued to Bon,8ac,o dur,n* t9e marr,a*e. %n su++ort o8 t9e,r +os,t,on, +et,t,oners c,te
1orenBo v. N,colas
!
and AlvareB v. 3s+,r,tu.
8
)e d,sa*ree.
Art,cle 16 o8 t9e 1(& #,v,l #ode, t9e *overn,n* +rov,s,on ,n e88ect at t9e t,me Bon,8ac,o and An,ta
contracted marr,a*e, +rov,des t9at all +ro+ert$ o8 t9e marr,a*e ,s +resumed to belon* to t9e conCu*al
+artners9,+ unless ,t ,s +roved t9at ,t +erta,ns e=clus,vel$ to t9e 9usband or t9e 7,8e. 'or t9e +resum+t,on
to ar,se, ,t ,s not, as Tan v. #ourt o8 A++eals
(
teac9es, even necessar$ to +rove t9at t9e +ro+ert$ 7as
ac>u,red 7,t9 8unds o8 t9e +artners9,+. 4nl$ +roo8 o8 ac>u,s,t,on dur,n* t9e marr,a*e ,s needed to ra,se t9e
+resum+t,on t9at t9e +ro+ert$ ,s conCu*al. %n 8act, even 79en t9e manner ,n 79,c9 t9e +ro+ert,es 7ere
ac>u,red does not a++ear, t9e +resum+t,on 7,ll st,ll a++l$, and t9e +ro+ert,es 7,ll st,ll be cons,dered
conCu*al.
1
%n t9e case at bar, o7ners9,+ over 79at 7as once a 5EE# lot and covered b$ t9e 5EE#0Bon,8ac,o
#ond,t,onal #ontract to "ell 7as onl$ trans8erred dur,n* t9e marr,a*e o8 Bon,8ac,o and An,ta. %t ,s 7ell
settled t9at a cond,t,onal sale ,s a6,n, ,8 not e>u,valent, to a contract to sell. %n bot9 t$+es o8 contract, t9e
e88,cac$ or obl,*ator$ 8orce o8 t9e vendorFs obl,*at,on to trans8er t,tle ,s subord,nated to t9e 9a++en,n* o8 a
8uture and uncerta,n event, usuall$ t9e 8ull +a$ment o8 t9e +urc9ase +r,ce, so t9at ,8 t9e sus+ens,ve
cond,t,on does not ta6e +lace, t9e +art,es 7ould stand as ,8 t9e cond,t,onal obl,*at,on 9ad never
e=,sted.
11
%n ot9er 7ords, ,n a contract to sell o7ners9,+ ,s reta,ned b$ t9e seller and ,s not +assed to t9e
bu$er unt,l 8ull +a$ment o8 t9e +r,ce, unl,6e ,n a contract o8 sale 79ere t,tle +asses u+on del,ver$ o8 t9e
t9,n* sold.
12
"uc9 ,s t9e s,tuat,on obta,n,n* ,n t9e ,nstant case. T9e cond,t,onal contract to sell e=ecuted b$ and
bet7een Bon,8ac,o and 5EE# on /ul$ 2, 1(6& +rov,ded t9at o7ners9,+ over and t,tle to t9e +ro+ert$ 7,ll
vest on Bon,8ac,o onl$ u+on e=ecut,on o8 t9e 8,nal deed o8 sale 79,c9, ,n turn, 7,ll be e88ected u+on
+a$ment o8 t9e 8ull +urc9ase +r,ce, to 7,t?
14. T,tles to t9e +ro+ert$ subCect o8 t9,s contract rema,ns 7,t9 t9e #4R54RAT%4N and s9all +ass to, and
be trans8erred ,n t9e name o8 t9e A551%#ANT onl$ u+on t9e e=ecut,on o8 t9e 8,nal Deed o8 "ale +rov,ded
8or ,n t9e ne=t succeed,n* +ara*ra+9.
1&. L+on t9e 8ull +a$ment b$ t9e A551%#ANT o8 t9e +r,ce o8 t9e lot above re8erred to to*et9er 7,t9 all t9e
,nterest due t9ereon, ta=es and ot9er c9ar*es, and u+on 9,s 8a,t98ul com+l,ance 7,t9 all t9e cond,t,ons o8
t9,s contract t9e #4R54RAT%4N a*rees to e=ecute ,n 8avor o8 t9e A551%#ANT a 8,nal deed o8 sale o8 t9e
a8oresa,d land, and t9e A551%#ANT a*rees to acce+t sa,d deed, as 8ull +er8ormance b$ t9e
#4R54RAT%4N o8 ,ts covenants and underta6,n*s 9ereunder.
13
= = =
3v,dentl$, t,tle to t9e +ro+ert$ ,n >uest,on onl$ +assed to Bon,8ac,o a8ter 9e 9ad 8ull$ +a,d t9e +urc9ase
+r,ce on /une 22, 1(!. T9,s 8ull +a$ment, to stress, 7as made more t9an t7o @2A $ears a8ter 9,s marr,a*e
to An,ta on A+r,l 24, 1(68. %n net e88ect, t9e +ro+ert$ 7as ac>u,red dur,n* t9e e=,stence o8 t9e marr,a*eG as
suc9, o7ners9,+ to t9e +ro+ert$ ,s, b$ la7, +resumed to belon* to t9e conCu*al +artners9,+.
"uc9 +resum+t,on ,s rebuttable onl$ 7,t9 stron*, clear, cate*or,cal, and conv,nc,n* ev,dence.
14
T9ere
must be clear ev,dence o8 t9e e=clus,ve o7ners9,+ o8 one o8 t9e s+ouses,
1&
and t9e burden o8 +roo8 rests
u+on t9e +art$ assert,n* ,t.
16
5et,t,onersF ar*ument t9at t9e d,s+uted lot 7as Bon,8ac,oFs e=clus,ve +ro+ert$, s,nce ,t 7as re*,stered
solel$ ,n 9,s name, ,s untenable. T9e mere re*,strat,on o8 a +ro+ert$ ,n t9e name o8 one s+ouse does not
destro$ ,ts conCu*al nature.
1!
)9at ,s mater,al ,s t9e t,me 79en t9e +ro+ert$ 7as ac>u,red.
T9us, t9e >uest,on o8 79et9er +et,t,oners 7ere able to adduce +roo8 to overt9ro7 t9e +resum+t,on ,s a
8actual ,ssue best addressed b$ t9e tr,al court. As a matter o8 lon* and sound +ract,ce, 8actual
determ,nat,ons o8 t9e tr,al courts,
18
es+ec,all$ 79en con8,rmed b$ t9e a++ellate court, are accorded *reat
7e,*9t b$ t9e #ourt and, as rule, 7,ll not be d,sturbed on a++eal, e=ce+t 8or t9e most com+ell,n*
reasons.
1(
5et,t,oners 9ave not, as t9e$ reall$ cannot, rebut t9e +resum+t,ve conCu*al nature o8 t9e lot ,n
>uest,on. %n t9,s re*ard, t9e #ourt notes and >uotes 7,t9 a++roval t9e 8ollo7,n* e=cer+ts 8rom t9e tr,al
courtFs d,s+os,t,on?
T9e de8endants, 9o7ever, d,d not adduce an$ +roo8 t9at t9e +ro+ert$ ,n >uest,on 7as ac>u,red solel$ b$
t9e e88orts o8 :Bon,8ac,o;. T9e establ,s9ed Cur,s+rudence on t9e matter leads t9,s #ourt to t9e conclus,on
t9at t9e +ro+ert$ ,nvolved ,n t9,s d,s+ute ,s ,ndeed t9e conCu*al +ro+ert$ o8 t9e deceased :Bon,8ac,o; De
1eon.
%n 8act, de8endant even adm,tted t9at :Bon,8ac,o; brou*9t ,nto 9,s marr,a*e 7,t9 +la,nt,88 An,ta t9e sa,d land,
albe,t ,n t9e conce+t o8 a +ossessor onl$ as ,t 7as not $et re*,stered ,n 9,s name. T9e +ro+ert$ 7as
re*,stered onl$ ,n 1(!2 dur,n* t9e e=,stence o8 t9e marr,a*e. Eo7ever, t9e absence o8 ev,dence on t9e
source o8 8und,n* 9as called 8or t9e a++l,cat,on o8 t9e +resum+t,on under Art,cle 16 ,n 8avor o8 t9e
+la,nt,88s.
2
T9e cases +et,t,oners c,ted are 7,t9out *overn,n* a++l,cab,l,t$ to t9,s case s,m+l$ because t9e$ ,nvolved a
la7 s+ec,8,call$ enacted to *overn t9e d,s+os,t,on o8 and o7ners9,+ o8 8r,ar lands. %n 1orenBo, t9e #ourt
9eld t9at t9e +ervad,n* le*,slat,ve ,ntent o8 Act No. 112 ,s Mto sell t9e 8r,ar lands ac>u,red b$ t9e
Government to actual settlers and occu+ants o8 t9e same.M
21
T9e #ourt 7ent on 8urt9er to sa$ ,n AlvareB
t9at Munder t9e 'r,ar 1ands Act o8 112, t9e e>u,table and bene8,c,al t,tle to t9e land +asses to t9e
+urc9aser t9e moment t9e 8,rst ,nstallment ,s +a,d and a cert,8,cate o8 sale ,s ,ssued.M
22
5la,nl$, t9e sa,d
cases are not a++l,cable 9ere cons,der,n* t9at t9e d,s+uted +ro+ert$ ,s not 8r,ar land.2a,ph>2
T9ere can be no >u,bbl,n* t9at An,taFs con8orm,t$ to t9e sale o8 t9e d,s+uted lot to +et,t,oners 7as never
obta,ned or at least not 8ormall$ e=+ressed ,n t9e conve$,n* deed. T9e +art,es adm,tted as muc9 ,n t9e,r
/o,nt "t,+ulat,on o8 'acts 7,t9 .ot,on earl,er re+roduced. Not lost on t9e #ourt o8 course ,s t9e 8act t9at
+et,t,oners 7ent to t9e +rocess o8 re*,ster,n* t9e deed a8ter Bon,8ac,oFs deat9 ,n 1((6, some 22 $ears
a8ter ,ts e=ecut,on. %n t9e ,nter,m, +et,t,oners could 9ave 9ad 7or6Pbut d,d notPto7ards secur,n* An,taFs
mar,tal consent to t9e sale.
%t cannot be over0em+9as,Bed t9at t9e 1(& #,v,l #ode ,s ver$ e=+l,c,t on t9e conse>uence o8 t9e 9usband
al,enat,n* or encumber,n* an$ real +ro+ert$ o8 t9e conCu*al +artners9,+ 7,t9out t9e 7,8eFs consent.
23
To a
s+ec,8,c +o,nt, t9e sale o8 a conCu*al +,ece o8 land b$ t9e 9usband, as adm,n,strator, must, as a rule, be
7,t9 t9e 7,8eFs consent. 3lse, t9e sale ,s not val,d. "o ,t ,s t9at ,n several cases 7e ruled t9at t9e sale b$
t9e 9usband o8 +ro+ert$ belon*,n* to t9e conCu*al +artners9,+ 7,t9out t9e consent o8 t9e 7,8e ,s vo,d ab
,n,t,o, absent an$ s9o7,n* t9at t9e latter ,s ,nca+ac,tated, under c,v,l ,nterd,ct,on, or l,6e causes. T9e
null,t$, as 7e 9ave e=+la,ned, +roceeds 8rom t9e 8act t9at sale ,s ,n contravent,on o8 t9e mandator$
re>u,rements o8 Art. 166 o8 t9e #ode.
24
",nce Art. 166 o8 t9e #ode re>u,res t9e consent o8 t9e 7,8e be8ore
t9e 9usband ma$ al,enate or encumber an$ real +ro+ert$ o8 t9e conCu*al +artners9,+, ,t 8ollo7s t9at t9e
acts or transact,ons e=ecuted a*a,nst t9,s mandator$ +rov,s,on are vo,d e=ce+t 79en t9e la7 ,tsel8
aut9or,Bed t9e,r val,d,t$.
2&
Accord,n*l$, t9e Deed o8 "ale e=ecuted on /anuar$ 12, 1(!4 bet7een Bon,8ac,o and t9e Tarrosas
cover,n* t9e 5EE# lot ,s vo,d.
%nterest ,n t9e #onCu*al 5artners9,+ %s
.erel$ %nc9oate unt,l 1,>u,dat,on
As a 8,nal cons,derat,on, t9e #ourt a*rees 7,t9 t9e #A t9at t9e sale o8 one09al8 o8 t9e conCu*al +ro+ert$
7,t9out l,>u,dat,on o8 t9e +artners9,+ ,s vo,d. 5r,or to t9e l,>u,dat,on o8 t9e conCu*al +artners9,+, t9e
,nterest o8 eac9 s+ouse ,n t9e conCu*al assets ,s ,nc9oate, a mere e=+ectanc$, 79,c9 const,tutes ne,t9er a
le*al nor an e>u,table estate, and does not r,+en ,nto a t,tle unt,l ,t a++ears t9at t9ere are assets ,n t9e
commun,t$ as a result o8 t9e l,>u,dat,on and settlement.
26
T9e ,nterest o8 eac9 s+ouse ,s l,m,ted to t9e net
rema,nder or Mremanente l,>u,doM @9aber *ananc,alA result,n* 8rom t9e l,>u,dat,on o8 t9e a88a,rs o8 t9e
+artners9,+ a8ter ,ts d,ssolut,on.
2!
T9us, t9e r,*9t o8 t9e 9usband or 7,8e to one09al8 o8 t9e conCu*al assets
does not vest unt,l t9e d,ssolut,on and l,>u,dat,on o8 t9e conCu*al +artners9,+, or a8ter d,ssolut,on o8 t9e
marr,a*e, 79en ,t ,s 8,nall$ determ,ned t9at, a8ter settlement o8 conCu*al obl,*at,ons, t9ere are net assets
le8t 79,c9 can be d,v,ded bet7een t9e s+ouses or t9e,r res+ect,ve 9e,rs.
28
T9ere8ore, even on t9e su++os,t,on t9at Bon,8ac,o onl$ sold 9,s +ort,on o8 t9e conCu*al +artners9,+, t9e
sale ,s st,ll t9eoret,call$ vo,d, 8or, as +rev,ousl$ stated, t9e r,*9t o8 t9e 9usband or t9e 7,8e to one09al8 o8
t9e conCu*al assets does not vest unt,l t9e l,>u,dat,on o8 t9e conCu*al +artners9,+.
Nevert9eless, t9,s #ourt ,s m,nd8ul o8 t9e 8act t9at t9e Tarrosas +a,d a valuable cons,derat,on ,n t9e
amount o8 595 1(, 8or t9e +ro+ert$ ,n >uest,on. T9us, as a matter o8 8a,rness and e>u,t$, t9e s9are o8
Bon,8ac,o a8ter t9e l,>u,dat,on o8 t9e +artners9,+ s9ould be l,able to re,mburse t9e amount +a,d b$ t9e
Tarrosas. %t ,s a 7ell0settled +r,nc,+le t9at no +erson s9ould unCustl$ enr,c9 9,msel8 at t9e e=+ense o8
anot9er.
2(
)E3R3'4R3, t9e +et,t,on ,s D3N%3D. T9e #A Dec,s,on ,n #A0G.R. #V No. 88&!1 ,s A''%R.3D. #osts
a*a,nst +et,t,oners.
"4 4RD3R3D.