G.R. No. L-60219 June 29, 1984 ...
... The basis of the motion to dismiss are the provisions of Presidential
BIENVENIDO AMISTOSO, petitioner,
vs.
SENECIO ONG, EPIFANIA NERI & HON. PRESIDING JUDGE, ESTEBAN M. LISING OF THE
COURT OF FIRST INSTANCE OF CAMARINES SUR, BRANCH VI, respondents.
Resales and Associates Law Office for petitioner.
Gil P. Pacamarra for respondents.
CUEVAS, J.:
This is a Petition for Review on certiorari of the Order of the defunct Court of First Instance of
Camarines Sur, Branch VI dated January 14, 1981, dismissing its Civil Case No. P-153, for lack
of jurisdiction.
The pertinent antecedents are as follows:
On July 27, 1981, petitioner as plaintiff, filed before the then Court of First Instance of Camarines
Sur, a conplaint for Recognition of Basement with Preliminary Injunction and Damages. The
complaint which was docketed in the a resaid Court as Civil Case No. P-153 among others
alleged, that plaintiff (now petitioner) and defendant Epifania Neri, (one of the herein private
respondents) are the owners of adjoining parcels of agricultural land situated in Cauayanan,
Tinambac, Camarines Sur; that an irrigation canal traverses the land of defendant Neri through
which irrigation water from the Silmod River passes and flows to the land of the petitioner for the
latter's beneficial use and that respondent Neri, owner of the land on which said irrigatrion canal
exists and Senecio Ong, the cultivator of the said property, despite repeated demands refused to
recognize the rights and title of the petitioner to the beneficial use of the water passing through
the aforesaid irrigation canal and to have petitioner's rights and/or claims annotated on the
Certificate of Title of respondent Neri . . . . Hence, the filing of the said complaint.
In their Answer, private respondents denied the existence of any right on the part of the
petitioner to the use of the canal mentioned in the complaint nor any contract, much less any
deed or encumbrance on their property and assert that they have not performed any act
prejudicial to the petitioner that will warrant the filing of the complaint against them. By way of
affirmative and special defenses, private respondents alleged that petitioner's complaint states
no cause of action and that the Court has no jurisdiction over the same.
Issues having been joined, trial was held. After petitioner has rested his case by a formal offer of
his testimonial and documentary evidences, private respondents instead of presenting their
evidence, filed a motion to dismiss. In the said motion, respondents contedn that the instant
case, involving as it does development, exploitation, conservation and utilization of water
resources falls within the exclusive jursidiction of the National Water Resources Council pursuant
to P.D. NO. 424, Section 2(b) and Section 88 thereof. Acting on private respondent's motion,
respondent Judge dismissed petitioner's complaint for lack of jurisdiction in an Order dated
January 14, 1981. The pertinent portion of that Order reads as follows:
Decree No. 424 and the Water Code known as Presidential Decree No. 1067.
In opposing the motion to dismiss, plaintiff contends that the present action
does not involve water dispute and that since the present action was filed
before the court prior to the effectivity of the Presidential Decree No. 424, it is
the old law on the matter that should be applied. These contentions of the
plaintiff are without merit. The complaint belies the plaintiff's contention.
Allegations in the complaint are explicit regarding the claim of the right of
plaintiff over the water passing through his land. The right over irrigation
water not having been shown as established or vested or that said vested
right, if any, has not been alleged to be registered in accordance with the
water code, the provisions of Presidential Decrees 424 and 1067 shall
govern. As stated by the Supreme Court in the case of Abe-Abe vs.
Manta, No. L-4827, May 31, 1979, 90 SCRA 523, to wit: 4
It is incontestable that the petitioner's immediate recourse
is to ventilate their grievance with the National Water
Resources Council which, as already noted, is the
administrative agency exclusively vested with original
jurisdiction to settle water rights disputes under the water
code under Presidential Decree No. 4 24.
The code assumes that it is more expeditious and
pragmatic to entrust to an administrative agency the
settlement of water rights disputes rather than require the
claimants to go directly to the court where the proceedings
are subject to unavoidable delays which are detrimental to
the parties ...
That jurisdiction of the Council under Section 2(b) of
Presidential Decree No. 424 is reaffirmed in Sec. 88 of the
Water Code and in Section 3rd thereof which provides that
'the utilization, exploitation, development, conservation
and protection of water resources shall be subject to the
control and regulation of the government through Council.
Failing to obtain a favorable reconsideration of the Order of dismissal, petitioner now comes
before Us through the instant petition contending:
(1) That the case at bar is not to settle any water dispute between the parties
but a complaint which calls purely for a determination of the right of the
plaintiff to have an established right amounting to an easement annotated on
the certificate of title of the defendant, hence the question is judicial which
may be taken cognizance of by the respondent court;
(2) That since the case was filed on July 26, 1972. Which was before the
effectivity of PD NO. 424, therefore, even if defendant's contention is correct
that the case involved water rights dispute the old law on water applies
and not the present water code otherwise the Court shall lose jurisdiction
contrary to the well-settled rule that once be lost;
 (3) That the herein defendant can no longer raise the question of plaintiff's
right to the beneficial use of irrigation water since the right to use had already
been determined, decided and laid to rest when the Department of Public
Works, Transportation and Communications awarded petitioner Water Rights
Grant after complying with all the legal requirements such as publication,
payment of fees, survey, investigation, etc.; and
(4) That the issue in the case at bar which was erroneously overlooked by the
respondent Judge does not involve a determination of the right of the parties
to the utilizatio conservation and protection of the parties' respective water
rights, hence it does not fan within the competence nor jurisdiction of the
National Water Resources Council.
In a Resolution promulgated on August 11, 1982, we required the respondents to comment on
the petition. Private respondents' COMMENT was filed on March 2, 1984. Petitioner's REPLY
thereto on the other hand was filed on May 10, 1984.
We considered the COMMENT as an Answer and gave due course to the petition.
Private respondents contend that the assailed order of dismissal was in order since a mere
cursory reading of the complaint shows that petitioner claims for the right to use water coming
from the Silmod River and prays that his right to the utilization thereof be respected and not be
disturbed and/or obstructed by the respondents. On its face then, the dispute is on the use,
conservation and protection of the right to water either by the petitioner or by the private
respondents. The annotation of the alleged encumbrance on the title of the private respondent is
merely the relief prayed for on the basis of the claim to the use and protection of water passing
through the land of the respondents. And since the controversy hinges on the right to use and
protect the water from the Silmod River that passes on the land of the private respondents to the
petitioner's property, the proper authority to determine such a controversy is the National Water
Resources Council which is vested with exclusive jurisdiction over such question pursuant to
P.D. NOS. 424 and 1067.
We find the petition impressed with merit.
Private respondents' insistence that what is involved in the instant case is the right to use, exploit
and convey water is controverted by the "STIPULATION OF FACTS" entered into between them
and the petitioner in the court below which was approved in an Order dated February 20, 1975,
the pertinent portion of which reads as follows:
1. That there exists an irrigation canal for the use of the defendants diverting
water coming from the Silmod River, Tinambac, Camarines Sur, passing on
the ricelands of the latter to the plaintiff's land irrigating the land of the latter,
although plaintiff claims it existed since 1952 up to the present, but disputed
by the defendants.
2. That the plaintiff has an approved water rights Grant issued by the
Department of Public Works, Transportation and Communications, which
plaintiff claims it for beneficial use to irrigate their land from the Silmod River
and defendants dispute said claim
3. That as of now, defendants have no approved Water Rights Grant issued
by the proper authorities for the use of the water for irrigation purposes from
the Silmod River. However, defendants have a pending application for Water
Rights, the water of which shall pass thru a different irrigation canal.
4. That one of the defendants' predecessors-in-interest, Abundio Barallas had
a written contract with the plaintiff, which defendants claim easement of
aqueduct Defendants are questioning the legality, enforceability and validity
of such contract.
xxx xxx xxx
6. That defendants refused to surrender their Transfer Certificate of Title of
her land for purposes of annotation of the contract, allegedly an easement of
aqueduct on the ground that she questions the validity, enforceability, legality
and therefore they are not bound by the same.
From the foregoing stipulations, private respondents admit that petitioner, then plaintiff, has an
approved Water Rights Grant issued by the Department of Public Works, Transportation and
Communications. Private respondents, however, contend that the said grant does not pertain to
the beneficial use of irrigation water from Silmod River. The records, however, do not show any
other irrigation water going to petitioner's property passing thru respondents' lot aside from that
coming from the Silmod River. Respondents' controversion of petitioner's right to irrigation water
specifically from Silmod River is undoubtedly a lame denial.
Aside from this admission, the record clearly discloses an approved Water Rights Grant in favor
of petitioner. Dr. Bienvenido V. Amistoso, which was approved on November 13, the Acting
Secretary of Public Works and Commission David M. Consunji. (Exh. 1) The grant was made
three (3) years before the promulgation of P.D. 1067 on December 31, 1976, known as the
Water Code of the Philippines, which revised and consolidated the laws governing ownership,
appropriation, option exploitation, development, conservation and protection of water resources
thereby repealing among others, the provisions of the Spanish Law of Water of August 3, 1866,
the Civil Code of Spain of 1889, and the Civil Code of the Philippines on ownership of water,
easement relating to water and of public water and acquisitive prescription on the use of water
which are inconsistent with the provisions of said Code (Art. 10, P.D. 1067).lwphl@it
The water rights grant partakes the nature of a document known as a water permit recognized
under Article 13 of P.D. 1067, which provides:
Article 13. Except as otherwise herein provided, no person, including
Government instrumentalities or government-owned or controlled
corporations, shall appropriate water without a water right, which shall be
evidenced by a document known as a water permit.
Water right is the 7 granted by the government to appropriate and use water.
As to the validity of the WATER RIGHTS GRANT of Amistoso upon the promulgation of P.D.
1067 on December 31, 1976, the governing provision of law is found in the Transitory and Final
Provisions of P.D. 1067. It fans under "acts and contracts under the regime of old laws". Article
97 provides, thus:
 Article 97. Acts and contracts under the regime of old laws, ff they are valid in
accordance therewith, shag be respected, subject to the stations established
in this Code. Any modification or extension of these acts and contracts after
the promulgation of this Code, shall be subject to the provisions hereof.
It may be observed that the WATER RIGHTS GRANT of Amistoso does not fall under "claims for
a right to use water existing on or before December 31, 1974" which under P.D. 1067 are
required to be registered with the National Water Resources Council within two (2) years from
promulgation of P.D. 1067, otherwise it is deemed waived and the use thereof deemed
abandoned. It is no longer a mere "claim" inasmuch as there was already a GRANT by the
Secretary of Public Works, Transportation and Communications (the official then authorized to
issue said grant) on November 13, 1973 after complying with all the requirements then
prescribed by law for such grant.
The grant contradicts the erroneous findings of the respondent Judge, and incontrovertibly
entitles petitioner to the beneficial use of water from Silmod River. That right is now a. vested
one and may no longer be litigated as to bring petitioner's case within the jurisdiction of the
National Water Resources Council. To resurrect that issue right to the use of invistigation
water from Silmod River will be violative of the rule on res judicata which also applies with
equal vigor and effect to quasi judicial tribunal (Brillantes vs. Castro, 99 Phils. 497, Ipekdjian
Merchandising, Inc. vs. Court of Tax Appeals, 9 SCRA 72, September 30,1963).
The said pronouncement, however, finds no application to the instant case for in there, both
petitioners and respondent have no established right emanating from any grant by any
governmental agency to the use, appropriation and exploitation of water. In the case at bar,
however, a grant indubitably exists in favor of the petitioner. It is the enjoyment of the right
emanating from that grant that is in litigation. Violation of the grantee's right, who in this case is
the petitioner, by the closure of the irrigation canal, does not bring the case anew within the
jurisdiction of the National Water Resources Council.
WHEREFORE, the Order of the Honorable respondent Judge of January 14, 1981, is hereby
SET ASIDE. Private respondents are hereby ordered to RECOGNIZE petitioner's BASEMENT of
water and to surrender to the Register of Deeds of Camarines Sur the owner's duplicate Transfer
Certificate of Title No. 14216 covering respondent Epifania Neri's property so that petitioner's
right to the beneficial use of said irrigation canal and water passing through the same may be
annotated thereon.
SO ORDERED.

As correctly postulated by the petitioner, the court a quo is not being asked to grant petitioner the
right to use but to compel private respondents to recognize that right and have the same
annotated on respondent Neri's Torrens Certificate of Title. Resort to judicial intervention
becomes necessary because of the closure made by the respondents of the irrigation canal thus
depriving the petitioner to continue enjoying irrigation water coming from Silmod River through
respondents' property. The interruption of the free flow of water caused by the refusal to re-open
the closed irrigation canal constituted petitioner's cause of action in the court below, which
decidedly do not fall within the domain of the authority of the National Water Resources Council

Respondents, however, rely very heavily on the dictum laid down in the Abe-Abe vs. Manta, No.
L-4827, May 31, 1979, 90 SCRA 524, wherein it was held that

It is incontestable that the petitioner's immediate recourse is to ventilate their

grievance with the National Water Resources Council which, as already
noted, is the administrative agency exclusively vested with original jurisdiction
to settle water rights disputes under the water code and under Presidential
Decree No. 424.

The Code assumes that it is more expeditious and pragmatic to entrust to an

administrative agency the settlement of water rights disputes rather than
require the claimants to go directly to the court where the proceedings are
subject to unavoidable delays which are detrimental to the parties ...

That jurisdiction of the Council under Section 2(b) of Presidential Decree No.
424 is reaffirmed in Section 88 of the Water Code and in Section 3rd thereof
which provides that 'the utlization exploitation, development, conservation
and protection of water resources shall be subject to the control and
regulation of the government through the Council
G.R. No. L-13298 November 19, 1918 received the same, and shall be entitled to a certificate of title to such land under the
provisions of this chapter.
CORNELIO RAMOS, petitioner-appellant,
vs. There are two parts to the above quoted subsection which must be discussed. The first relates to
THE DIRECTOR OF LANDS, objector-appellee. the open, continuous, exclusive, and notorious possession and occupation of what, for present
purposes, can be conceded to be agricultural public land, under a bona fide claim of ownership.
MALCOLM, J.:
Actual possession of land consists in the manifestation of acts of dominion over it of such a
This is an appeal by the applicant and appellant from a judgment of the Court of First Instance of nature as a party would naturally exercise over his own property. Relative to actuality of
possession, it is admitted that the petitioner has cultivated only about one fourth of the entire
Nueva Ecija, denying the registration of the larger portion of parcel No. 1 (Exhibit A of the
petitioner), marked by the letters A, B, and C on the plan, Exhibit 1, of the Government. tract. This is graphically portrayed by Exhibit 1 of the Government, following:

One Restituto Romero y Ponce apparently gained possession of a considerable tract of land
located in the municipality of San Jose, Province of Nueva Ecija, in the year 1882. He took
advantage of the Royal Decree of February 13, 1894, to obtain a possessory information title to
the land, registered as such on February 8, 1896. Parcel No. 1, included within the limits of the
possessory information title of Restituto Romero, was sold in February, 1907, to Cornelio
Ramos, the instant petitioner, and his wife Ambrosia Salamanca.

Ramos instituted appropriate proceedings to have his title registered. Opposition was entered by
the Director of Lands on the ground that Ramos had not acquired a good title from the Spanish
government and by the Director of Forestry on the ground that the first parcel was forest land.
The trial court agreed with the objectors and excluded parcel No. 1 from registration. So much
for the facts.

As to the law, the principal argument of the Solicitor-General is based on the provisions of the
Spanish Mortgage Law and of the Royal Decree of February 13, 1894, commonly known as the
Maura Law. The Solicitor-General would emphasize that for land to come under the protective
gis of the Maura Law, it must have been shown that the land was cultivated for six years
previously, and that it was not land which pertained to the "zonas forestales." As proof that the
land was, even as long ago as the years 1894 to 1896, forestal and not agricultural in nature is
the fact that there are yet found thereon trees from 50 to 80 years of age.

We do not stop to decide this contention, although it might be possible, following the doctrine laid
down by the United States Supreme Court with reference to Mexican and Spanish grantes within
the United States, where some recital is claimed to be false, to say that the possessory
information, apparently having taken cognizance of the requisites for title, should not now be
disturbed. (Hancock vs. McKinney [1851], 7 Tex., 192; Hornsby and Roland vs.United States
[1869], 10 Wall., 224.) It is sufficient, as will later appear, merely to notice that the predecessor in
interest to the petitioner at least held this tract of land under color of title.

Subsection 6 of section 54, of Act No. 926, entitled The Public Land Law, as amended by Act
No. 1908, reads as follows:
6. All persons who by themselves or their predecessors and interest have been in the
open, continuous, exclusive, and notorious possession and occupation of agricultural
public lands, as defined by said Act of Congress of July first, nineteen hundred and
two, under a bona fide claim of ownership except as against the Government, for a
period of ten years next preceding the twenty-sixth day of July, nineteen hundred and
four, except when prevented by war or force majeure, shall be conclusively presumed
to have performed all the conditions essential to a government grant and to have
The question at once arises: Is that actual occupancy of a part of the land described in the
instrument giving color of title sufficient to give title to the entire tract of land?lawphil.net
The doctrine of constructive possession indicates the answer. The general rule is that the
possession and cultivation of a portion of a tract under claim of ownership of all is a constructive
possession of all, if the remainder is not in the adverse possession of another. (Barr vs. Gratz's
Heirs [1819], 4 Wheat., 213; Ellicott vs. Pearl [1836], 10 Pet., 412; Smith vs. Gale [1892], 144 U.
S., 509.) Of course, there are a number of qualifications to the rule, one particularly relating to
the size of the tract in controversy with reference to the portion actually in possession of the
claimant. It is here only necessary to apply the general rule.
The claimant has color of title; he acted in good faith; and he has had open, peaceable, and
notorious possession of a portion of the property, sufficient to apprise the community and the
world that the land was for his enjoyment. (See arts. 446, 448, Civil Code.) Possession in the
eyes of the law does not mean that a man has to have his feet on every square meter of ground
before it can be said that he is in possession. Ramos and his predecessor in interest fulfilled the
requirements of the law on the supposition that he premises consisted of agricultural public land.
The second division of the law requires consideration of the term "agricultural public land." The
law affirms that the phrase is denied by the Act of Congress of July 1st, 1902, known as the
Philippine bill. Turning to the Philippine Bill, we find in sections 13 to 18 thereof that three
classes of land are mentioned. The first is variously denominated "public land" or "public
domain," the second "mineral land," and the third "timber land." Section 18 of the Act of
Congress comes nearest to a precise definition, when it makes the determination of whether the
land is more valuable for agricultural or for forest uses the test of its character.
Although these sections of the Philippine Bill have come before the courts on numerous
occasions, what was said in the case of Jones vs. Insular Government ([1906], 6 Phil., 122), is
still true, namely: "The meaning of these sections is not clear and it is difficult to give to them a
construction that will be entirely free from objection." In the case which gave most serious
consideration to the subject (Mapa vs. Insular Government [1908], 10 Phil., 175), it was found
that there does exist in the Act of Congress a definition of the phrase "agricultural public lands."
It was said that the phrase "agricultural public lands" as used in Act No. 926 means "those public
lands acquired from Spain which are not timber or mineral lands."
The idea would appear to be to determine, by exclusion, if the land is forestal or mineral in
nature and, if not so found, to consider it to be agricultural land. Here, again, Philippine law is not
very helpful. For instance, section 1820 of the Administrative Code of 1917 provides: "For the
purposes of this chapter, 'public forest' includes, except as otherwise specially indicated, all
unreserved public land, including nipa and mangrove swamps, and all forest reserves of
whatever character." This definition of "public forest," it will be noted, is merely "for the purposes
of this chapter." A little further on, section 1827 provides: "Lands in public forests, not including
forest reserves, upon the certification of the Director of Forestry that said lands are better
adapted and more valuable for agricultural than for forest purposes and not required by the
public interests to be kept under forest, shall be declared by the Department Head to be
agricultural lands." With reference to the last section, there is no certification of the Director of
Forestry in the record, as to whether this land is better adapted and more valuable for
agricultural than for forest purposes.
The lexicographers define "forest" as "a large tract of land covered with a natural growth of trees
and underbrush; a large wood." The authorities say that he word "forest" has a significant, not an
insignificant meaning, and that it does not embrace land only partly woodland. It is a tract of land
covered with trees, usually of considerable extent. (Higgins vs. Long Island R. Co. [1908], 114 N.
Y. Supp., 262; People vs. Long Island R. Co. [1908], 110 N. Y. Supp., 512.)
The foresters say that no legal definition of "forest" is practicable or useful. B. H. Baden-Powell,
in his work on Forest Law of India, states as follows:
Every definition of a forest that can be framed for legal purposes will be found either to
exclude some cases to which the law ought to apply, or on the other hand, to include
some with which the law ought not to interfere. It may be necessary, for example, to
take under the law a tract of perfectly barren land which at present has neither trees,
brushwood, nor grass on it, but which in the course f time it is hoped will be "reboise;"
but any definition wide enough to take in all such lands, would also take in much that
was not wanted. On the other hand, the definition, if framed with reference to tree-
growth, might (and indeed would be almost sure to) include a garden, shrubbery,
orchard, or vineyard, which it was not designed to deal with.
B. E. Fernow, in his work on the Economics of Forestry, states as follows:
A forest in the sense in which we use the term, as an economic factor, is by no means
a mere collection of trees, but an organic whole in which all parts, although apparently
heterogeneous, jumbled together by accident as it were and apparently unrelated, bear
a close relation to each other and are as interdependent as any other beings and
conditions in nature.
The Director of Forestry of the Philippine Islands has said:
During the time of the passage of the Act of Congress of July 1, 1902, this question of
forest and agricultural lands was beginning to receive some attention and it is clearly
shown in section 18 of the above mentioned Act; it leaves to the Bureau of Forestry the
certification as to what lands are for agricultural or forest uses. Although the Act states
timber lands, the Bureau has in its administration since the passage of this act
construed this term to mean forest lands in the sense of what was necessary to protect,
for the public good; waste lands without a tree have been declared more suitable for
forestry in many instances in the past. The term 'timber' as used in England and in the
United States in the past has been applied to wood suitable for construction purposes
but with the increase in civilization and the application of new methods every plant
producing wood has some useful purpose and the term timber lands is generally
though of as synonymous with forest lands or lands producing wood, or able to
produce wood, if agricultural crops on the same land will not bring the financial return
that timber will or if the same land is needed for protection purposes.
xxx xxx xxx
The laws in the United States recognize the necessity of technical advice of duly
appointed boards and leave it in the hands of these boards to decide what lands are
more valuable for forestry purposes or for agricultural purposes.
In the Philippine Islands this policy is follows to as great an extent as allowable under
the law. In many cases, in the opinion of the Bureau of Forestry, lands without a single
tree on them are considered as true forest land. For instance, mountain sides which
are too steep for cultivation under ordinary practice and which, if cultivated, under
ordinary practice would destroy the big natural resource of the soil, by washing, is
considered by this bureau as forest land and in time would be reforested. Of course,
examples exist in the Mountain Province where steep hillsides have been terraced and
intensive cultivation practiced but even then the mountain people are very careful not to
destroy forests or other vegetative cover which they from experience have found
protect their water supply. Certain chiefs have lodged protests with the Government
against other tribes on the opposite side of the mountain cultivated by them, in order to
prevent other tribes from cutting timber or destroy cover guarding their source of water
for irrigation.
Dr. M. S. Shaler, formerly Dean of the Lawrence Scientific School, remarked that if
mankind could not devise and enforce ways dealing with the earth, which will preserve
this source of like "we must look forward to the time, remote it may be, yet equally
discernible, when out kin having wasted its great inheritance will fade from the earth
because of the ruin it has accomplished."
The method employed by the bureau of Forestry in making inspection of lands, in order
to determine whether they are more adapted for agricultural or forest purposes by a
technical and duly trained personnel on the different phases of the conservation of
natural resources, is based upon a previously prepared set of questions in which the
different characters of the land under inspection are discussed, namely:
Slope of land: Level; moderate; steep; very steep.
Exposure: North; South; East; West.
Soil: Clay; sandy loam; sand; rocky; very rocky.
Character of soil cover: Cultivated, grass land, brush land, brush land and timber
mixed, dense forest.
If cultivated, state crops being grown and approximate number of hectares under
cultivation. (Indicate on sketch.)
For growth of what agricultural products is this land suitable?
State what portion of the tract is wooded, name of important timber species and
estimate of stand in cubic meters per hectare, diameter and percentage of each
species.
If the land is covered with timber, state whether there is public land suitable for
agriculture in vicinity, which is not covered with timber.
Is this land more valuable for agricultural than for forest purposes? (State reasons in
full.)
Is this land included or adjoining any proposed or established forest reserve or
communal forest? Description and ownership of improvements.
If the land is claimed under private ownership, give the name of the claimant, his place
of residence, and state briefly (if necessary on a separate sheet) the grounds upon
which he bases his claim.
When the inspection is made on a parcel of public land which has been applied for, the
corresponding certificate is forwarded to the Director of Lands; if it is made on a
privately claimed parcel for which the issuance of a title is requested from the Court of
Land Registration, and the inspection shows the land to be more adapted for forest
purposes, then the Director of Forestry requests the Attorney-General to file an
opposition, sending him all data collected during the inspection and offering him the
forest officer as a witness.
It should be kept in mind that the lack of personnel of this Bureau, the limited time
intervening between the notice for the trial on an expediente of land and the day of the
trial, and the difficulties in communications as well as the distance of the land in
question greatly hinder the handling of this work.
In the case of lands claimed as private property, the Director of Forestry, by means of
his delegate the examining officer, submits before the court all evidence referring to the
present forest condition of the land, so that the court may compare them with the
alleged right by the claimant. Undoubtedly, when the claimant presents a title issued by
the proper authority or evidence of his right to the land showing that he complied with
the requirements of the law, the forest certificate does not affect him in the least as
such land should not be considered as a part of the public domain; but when the
alleged right is merely that of possession, then the public or private character of the
parcel is open to discussion and this character should be established not simply on the
alleged right of the claimant but on the sylvical condition and soil characteristics of the
land, and by comparison between this area, or different previously occupied areas, and
those areas which still preserve their primitive character.
Either way we look at this question we encounter difficulty. Indubitably, there should be
conservation of the natural resources of the Philippines. The prodigality of the spendthrift who
squanders his substance for the pleasure of the fleeting moment must be restrained for the less
spectacular but surer policy which protects Nature's wealth for future generations. Such is the
wise stand of our Government as represented by the Director of Forestry who, with the Forester
for the Government of the United States, believes in "the control of nature's powers by man for
his own good." On the other hand, the presumption should be, in lieu of contrary proof, that land
is agricultural in nature. One very apparent reason is that it is for the good of the Philippine
Islands to have the large public domain come under private ownership. Such is the natural
attitude of the sagacious citizen.
If in this instance, we give judicial sanction to a private claim, let it be noted that the Government,
in the long run of cases, has its remedy. Forest reserves of public land can be established as
provided by law. When the claim of the citizen and the claim of the Government as to a particular
piece of property collide, if the Government desires to demonstrate that the land is in reality a
forest, the Director of Forestry should submit to the court convincing proof that the land is not
more valuable for agricultural than for forest purposes. Great consideration, it may be stated,
should, and undoubtedly will be, paid by the courts to the opinion of the technical expert who
speaks with authority on forestry matters. But a mere formal opposition on the part of the
Attorney-General for the Director of Forestry, unsupported by satisfactory evidence will not stop
the courts from giving title to the claimant.
We hold that the petitioner and appellant has proved a title to the entire tract of land for which he
asked registration, under the provisions of subsection 6, of section 54, of Act No. 926, as
amended by Act No. 1908, with reference to the Philippine Bill and the Royal Decree of February
13, 1894, and his possessory information.
Judgment is reversed and the lower court shall register in the name of the applicant the entire
tract in parcel No. 1, as described in plan Exhibit A, without special finding as to costs. So
ordered.
G.R. No. L-25723 June 29, 1984
THE DIRECTOR OF LANDS and HEIRS OF THE DECEASED HOMESTEADERS, namely,
IGNACIO BANGUG, PASCUAL BANGUG, EUSEBIO GUMIRAN, SANTIAGO AGGABAO and
ANTONIO DERAY, petitioners-appellants,
vs.
COURT OF APPEALS and HEIRS OF BRUNO CABAUATAN, respondents-appellees.
Primitivo P. Cammayo, Magbayad, Macutay & Cendea, Melanio T. Singson and Silvestre Br.
Bello and Alejandro Mina for petitioners-appellants.
The Solicitor General and Arnulfo Tamayo for respondents-appellees.
AQUINO, J.:
This is a land registration case involving 128 hectares of land located in Cabagan, Isabela. On
page 125 of the Gaceta de Manila dated January 30, 1884, it was published that the land applied
Or by Bruno Cabanatan (sic) "en la jurisdiction de Cabagan de la de Isabela de Luzon" was
declared "enagenables" (Exh. P).
On page 142 of the Gaceta de Manila dated August 2, 1885, this entry was published:
"Adjudicando a ... D. Bruno Cabanatan (sic) la extension de 138 hectareas, 91 areas y 50
centiareas de terreno situado en el pueblo de Cabagan, en Isabela de Luzon, en la cantidad de
pfs. 188'71 6/81" (Exh. Q. The name is "Cabauatan" in Exh. M).
"Bruno Cabanatan "of Cabagan, Isabela appears as No. 322 in a handwritten list of "Expedientes
Remitidos A Terrenos Publicos" (terminated cases) dated November 30, 1901 in the files the
Division of Archives (Exh. L and O).
However, the applicants have not produced in evidence any composition title, the basis of their
application. It was allegedly burned in the house of Pepe Buraga during the war (34 tsn June 26,
1956). So, we do not know the boundaries of the 138 hectares land allegedly adjudicated to
Bruno Cabanatan, granting that he was the same as Bruno Cabauatan, the ancestor of the
applicants; in what barrio or sitio of Cabagan it is located; why in 1932 the 138 hectares had
been increased to 154 hectares. and why in 1921 the same land was declared for tax purposes
in the name of Honofre Cabauatan, Bruno's nephew, and not in the names of Bruno s heirs.
As correctly contended by the Solicitor General, the land applied for must be Identified. The
claim of possession or having a composition title is inutile if the land is not Identified.
Bruno died during the Spanish regime. The year when he died is not known. He is survived by
seven children with the following descendants:
1. Candida, survived by Lucio Guingab and Jose Buraga.
2. Paulina, survived by Maria, Jose Gregorio and Epifania, surnamed Samus
(children of the first marriage) and by Eugenia and Vicente Uanan children of
her second marriage.
3. Francisco, survived by Manuel, Faustina, Juan and Remedios.
4. Bruno 2nd, survived by Purisima, Francisco, Cristeta, Benjamin and
Respicio.
5. Salvador, survived by Paz, Lucio, Lourdes and Pilar, who is dead and is in
turn survived by her children Celso Mesa and Ruben, Mesa.
6. Heculina, survived by Faustino, Maria, Alejandra, Genoveva, Amada and
Francisco, all surnamed Cauan. Genoveva Cauan is dead and is survived by
her child, Josefina Balmaceda.
7. Guillermo, survived by his son, Pedro Cabauatan.
Bruno had a brother named Leon, who had a son named Honofre (Onofre) who, curiously
enough, obtained in 1921 a tax declaration for the 138 hectares at P5,200. In that tax
declaration, it was stated that the land is located at Malasi, Cabagan, bounded on the north, east
and south by public land (P.D.) and on the west by a mountain. How Onofre came to have a tax
declaration for that land has not been adequately explained.
Emilio Cabauatan, a son of Onofre, in his opposition and testimony claimed that lawyer Miguel
Binag, in behalf of Bruno's heirs, in 1937 proposed to use the said declaration in the land
registration proceeding. He promised to give the heirs of Onofre Cabauatan one-third of the land.
However, lawyer Binag denied that he ever made such a proposition.
Emilio also claimed that the land of Bruno is in Sitio Malini, three kilometers from Sitio
Malasi. The trial court and Binag denied that there was a sitio in Cabagan called Malini. It was
not found in the list of sitios in the governor's office.
On March 5,1934 Judge Mariano Rosauro issued Decree No. 536561 for the registration of a
parcel of land, plan 95520, with an area of 25 hectares located at the "sitio of Malisi, Barrio of
Aggub," Cabagan. It was registered in the names of the following heirs of Bruno
as proindiviso co-owners without regard to the right of representation (Exh. J)
1. Candida Cabauatan 16. Rufina Cabauatan
2. Maria Samus 17. Paz Cabauatan
3. Jose Samus 18. Lucio Cabauatan
4. Gregorio Samus 19. Lourdes Cabauatan
5. Epifanio Samus 20. Cervex Mesa
6. Eugenia Uanan 21. Ruben Mesa
 The provincial fiscal, in representation of the Director of Lands, alleged in his opposition that the
7. Vicente Uanan 22. Faustino Cauan
land claimed by Bruno's heirs was covered by the approved and subsisting homestead
applications of (1) Santiago Aggabao, deceased, now heirs represented by Simplicio Aggabao;
8. Manuel Cabauatan 23. Maria Cauan (2) Ignacio Bangug, deceased, now his heirs represented by Anacleto Bangug; (3) Eusebio
Gumiran, deceased, now his heirs represented by Luis Gumiran; (4) Antonio Deray, deceased,
9. Faustino Cabauatan 24. Alejandra Cauan now his heirs represented by Pablo Deray; (5) Casiano Magbayad, transferor, now Rodolfo
Albano, transferee, and (6) Gaudencio Flores (p. 23, RA).
10. Juan Cabauatan 25. Genoveva Cauan

11. Remedios Cabauatan 26. Amada Cauan As already stated, the instant second registration case was filed in 1937 based on an expanded
survey. The applicants are the very same heirs of Bruno who were the applicants in the first
registration case.
12. Purisima Cabauatan 27. Francisco Cauan

13. Francisco Cabauatan 28. Josefina Balmaceda They claim the land without taking into account the rule on representation. The record does not
disclose why the case was not finished before liberation. The trial commenced in 1956 or almost
14. Cristeta Cabauatan and twenty years after the application was filed. That is an unusual feature of the case.

15. Benjamin Cabauatan 29. Pedro Cabauatan
The 25 hectares land already registered has as boundaries parts of the land under controversy.
Thus, the decree states that the 25 hectares are bounded on the northeast and south by public
lands; on the east by property of Tomas Vinarao vs. heirs of Bruno Cabauatan; on the west by
property of Lucas Pagulayan vs. heirs of Bruno Cabauatan and on the northwest by the Lagoon
Malasi Grande and public land.
It may be asked: why did not that 1934 registration case embrace the whole 138 hectares
allegedly covered by Bruno's composition title and why did Bruno's heirs have to resort to a
second or another registration case in 1937? The applicants have not offered any satisfactory
explanation.
Evidence for the applicants, Bruno's heirs. From the testimonies of Candida Cabauatan, Jose
Buraga, Gabriel Zipagan and Placido Angoluan, the trial court found that the land in question
(128.8 plus 25.4 or 154 hectares) was administered by Bruno's son, Salvador. There were
allegedly forty tenants during the Spanish regime working in the middle portion of the land.
Some of the tenants were still on the land during the American regime. They have been
cultivating the land under the overseers, Zipagan and Angoluan. During the Spanish regime,
Bruno's children received 1/3 of the products, such as corn and palay, as the owner's share. The
tenants also planted kapok, acacia trees and some oranges.
They allegedly constructed rice paddies and built dwelling houses. Bruno's heirs have
possessed the land openly, peacefully, continuously and in the concept of owner since the
Spanish regime up to the present time.

In 1934, the year the 25 hectares of land located at Malasi, Cabagan, was registered in the
names of Bruno's heirs, they produced a survey plan Psu-95458, for his land which had an area
of 154 hectares, much larger than the 138 hectares adjudicated to Bruno in 1885. Clearly, the
area was inflated by 16 hectares. The land consisted of seven contiguous lots located in Barrio
Aggub, Cabagan. It included the 25 hectares of plan Psu-95520 which was already registered
and which was designated as Lot No. 6.
The plan was based on a 1932 survey. The surveyor in 1934 indicated in the plan Psu-95458 the
following claimants of the seven lots (Exh. F)
Lot No. 1 Claimed by Pascual Bangug.
Lot No. 2 Claimed by Heirs of Antonio Deray.
Lot No. 3 Claimed by Heirs of Ignacio Bangug.
Lot No. 4 Claimed by Eusebio Gumiran.
Lot No. 5 Uncultivated.
Lot No. 6 Claimed by Ramon Guingab (already
registered,).
Lot No. 7 Claimed by Vicente Ramos and Casiano
Magbayad.
In 1916, about 50 hectares of the land were under cultivation, the greater portion of which is
included in Lot No. 6, which, as already mentioned, was registered in 1934 in the names of
Bruno's heirs, the same applicants in this 1937 case. The land taxes were paid since 1921 in the
name of Honofre, not an heir of Bruno.
Evidence for the Director of Lands and homesteaders. As oppositor, the Director of Lands
presented the following documentary evidence:
(1) The 1924 homestead application of Eusebio Gumiran and his intention to
make final proof dated July 22, 1930 for 24 hectares of land located at Sitio
Malasi, Barrio Aggub, Cabagan (Exh- 1-3).
(2) The order dated August 28, 1931 for the issuance of a patent to Pascual
Bangug for 24 hectares covered by his 1911 application (Exh. 5 and 6-DL).
(3) The approval dated November 23, 1931 of Ignacio Bangug's homestead
application for 10 hectares (Exh. 7 and 8-DL).

(4) The approval dated March 23, 1932 of Casiano Mabbayad's homestead
application for 24 hectares (Exh. 10 and 11-DL)
 (5) The approval dated August 12, 1950 of Gaudencio Flores' homestead
application for 24 hectares (Exh. 12 and 13-DL).
(6) The approval dated August 24, 1932 of Santiago Agabao's 1926
homestead application for 24 hectares (Exh. 14 and 16-DL).
The area claimed is in excess of that mentioned in the committed position title. The alleged lost
composition title cannot be given any probative value. Its contents were not proven by secondary
evidence. The precise location of the land and the possession thereof were not proven by the
applicants. The alleged possession of Bruno's heirs may refer to the 25 hectares already
registered in their names. Inexplicably, the registration of the 154 hectares was made in two
installments.

(7) The approval dated May 15, 1928 of Antonio Deray's homestead
WHEREFORE, the decisions of the Court of Appeals and the trial court are reversed and set
application for 24 hectares (Exh. 17-DL).
aside. The application for registration is dismissed. The Director of Lands should issue to
appellant heirs of the deceased homesteaders their patents in accordance with the Public Land
As noted by the Solicitor General, the Court of Appeals failed to mention in its decision the Law. Costs against the applicants.
evidence for the homesteaders. The following is a summary of that evidence by the Solicitor
General and the trial court.
SO ORDERED.

Ignacio Bangug in 1917 occupied about ten hectares of the land in Sitio Malasi. He planted it to
rice, corn, tobacco and beans. He applied in 1926 for a homestead over that parcel of land (Exh.
11). He paid the land taxes as early as 1922 (Exh. 1 to 10). His application was approved in
1931. After his death in 1931, his son Jose continued to occupy the homestead. Jose Bangug
did not know that the land was included in the survey made for Bruno's heirs.

Pascual Bangug, who died in 1950, had cultivated a portion of the disputed land since 1910 and
in 1911 he filed his homestead application (Exh. F). He declared it for tax purposes and paid the
land taxes since 1916 (Exh. 2 to 24). The homestead patent was issued in 1931 (Exh. 25). He
built his house on the land. His heirs continued his possession after his death. Pascual planted
the land to rice, corn, mongo, peanuts, oranges, lemon, acacia and bamboos.

Eusebio Gumiran occupied in 1924 a portion of Lots Nos. 4 and 5 (Exh. K). He filed his
homestead application in that same year. He planted the land to rice and other staple crops. He
made a final proof in 1930. After his death in 1942, his children and widow continued to possess
the homestead.

Santiago Aggabao started occupying the land in Sitio Malasi in 1927. It has an area of 24
hectares. His homestead application was approved in 1932 (Exh. 16). His children have
possessed the homestead after his death. They planted it to rice, corn and vegetables.

Antonio Deray filed in 1924 his homestead application for 24 hectares in what is now Lot No. 2 of
the survey plan. It was approved in 1928 (Exh. 17 and 18-DL). His heirs have been in
possession of the homestead.

Gaudencio Flores and the heirs of Honofre Cabauatan also presented evidence as oppositors
but they did not appeal to this Court.

Ruling. The trial court granted the application for registration of the six lots with an area of 128
hectares, in addition to the often mentioned 25 hectares already registered. It reasoned out that
if Bruno's heirs had possession of the said 25 hectares, they could be deemed to have
"constructive possession" of the remaining part of the land provided that the same is not in the
adverse possession of another person (Ramos vs. Director of Lands, 39 Phil. 175).lwphl@it

We hold that the rule on constructive possession does not apply to this case because the major
portion of the disputed 128 hectares has been in the adverse possession of homesteaders and
their heirs and is still part of the public domain until the patents are issued.
G.R. No. 57092 January 21, 1993
EDGARDO DE JESUS, REMEDIOS DE JESUS, JUANITO DE JESUS, JULIANA DE JESUS,
JOSE DE JESUS, FLORDELIZA DE JESUS, REYNALDO DE JESUS, ERNESTO DE JESUS,
PRISCILO DE JESUS, CORAZON DE JESUS, petitioners,
vs.
COURT OF APPEALS and PRIMITIVA FELIPE DE JESUS, respondents.
Jose B. Soriano for petitioners.
Jose A. Aguiling and Paquito C. Ochoa for private respondent.
MELO, J.:
This has reference to a petition for review on certiorari seeking the reversal of the decision of the
Court of Appeals in CA-G.R. No. 59613 (December 24, 1980, Sison, P.V., Cenzon. Asuncion [P],
JJ) which reversed the decision dated September 7, 1975 of the then Court of First Instance of
Bulacan. In consequence, the appellate court dismissed herein petitioners' complaint and
declared private respondent Primitive Felipe de Jesus to be the absolute owner entitled to the
possession of the land in question to the exclusion of petitioners.
The property in dispute is a parcel of residential land situated in Dampol 2nd, Pulilan, Bulacan,
bounded on the North by a Vereda: on the South, by the Provincial Road; on the East, by
Catalino Tayag (Tayao); on the West, by Macario de Leon, containing an area of 2565 square
meters (Brief for the Petitioners, p. 3), and covered by Tax Declaration No. 2383 of the Office of
the Provincial Assessor of Bulacan, in the name of Victoriano Felipe (Exh. "5-C").
Respondent appellate court found the above-described parcel of land to be the same parcel of
land which was
. . . the subject of the Kasulatang-Biling-Mabibiling-Muli (Exh. 1) executed on
November 25, 1932, by Emilia Camacho (surviving widow of Catalino
Esguerra), Jose C. Esguerra and Socorro Esguerra, conveying or selling this
land to the spouses, Victoriano Felipe and Guillerma de la Cruz, with right to
repurchase the same within a period of five years, but that the vendors-a-
retro failed to repurchase the land. The vendors-a-retro were the heirs of the
deceased Catalino Esguerra. Since the date of the sale the spouses
Victoriano Felipe and Guillerma de la Cruz, possessed and lived on this land.
The appellant [herein private respondent] was living with her parents on the
land, and upon their deaths, she continued to live on and possess the same.
(pp. 33-34, Rollo.)
On November 29, 1961 private respondent executed a sworn statement declaring herself the
only heir of the deceased Victoriano Felipe and adjudicating to herself the ownership of the land
in question (Exh. "4").
More than twelve years later or on April 27, 1973, petitioners herein filed in the Court of First
Instance of Bulacan, an action for recovery of ownership and possession and quieting of title to
the abovementioned piece of land covered by Tax Declaration No. 2383, alleging among others:
"that their grandfather, Santiago de Jesus during his lifetime owned the residential lot; that
Santiago de Jesus died before the outbreak of World War II, leaving three (3) sons, namely:
Mariano, Exequiel, and Jose, all surnamed de Jesus; that Mariano de Jesus died on September
3, 1956 leaving eight (8) surviving children, namely: Edgardo, Remedios, Juanita, Juliano, Jose,
Flordeliza, Reynaldo, and Ernesto, all surnamed de Jesus and all of them plaintiffs; that Exequiel
de Jesus died on April 3, 1948, survived by two (2) children Priscilo and Corazon, both
surnamed de Jesus, also plaintiffs in this case; while Jose de Jesus died before the outbreak of
World War II without any issue . . . "(p. 35, Record on Appeal).
The trial court found for the plaintiffs, petitioners herein. The dispositive portion of the decision
dated September 7, 1975 reads:
FOR ALL OF THE FOREGOING, judgment is hereby rendered:
(1) Declaring the plaintiffs as having the better right to ownership and
possession of the residential lot in question by virtue of hereditary
succession;
(2) Ordering the defendant to surrender the ownership and possession of the
said property to the herein plaintiffs;
(3) Ordering the defendant to pay to the plaintiffs the sum of P500.00 for and
as attorney's fees, and the costs of suit.
SO ORDERED. (pp. 56-57, Record, on Appeal.)
As earlier intimated, on appeal, the Court of Appeals set aside the judgment of the trial court in a
decision promulgated on December 24, 1980
(pp. 32-38, Rollo), the dispositive portion of which reads:
IN VIEW OF THE FOREGOING CONSIDERATION, finding serious errors to
have been committed by the trial court in its judgment, the same is hereby set
aside and another one entered, dismissing the complaint, and declaring the
appellant to be the absolute owner, and entitled to the possession of this land
in question, to the exclusion of plaintiffs-appellees. (p. 38, Rollo.)
Thus, the instant petition for review on certiorari which was filed with this Court on August 13,
1981 (p. 9, Rollo) with the following assigned errors:
I
THE COURT OF APPEALS ERRED IN SETTING ASIDE THE JUDGMENT
OF THE TRIAL COURT WHICH AWARDED THE RESIDENTIAL LOT IN
QUESTION TO THE PETITIONERS BY VIRTUE OF HEREDITARY
SUCCESSION AND ORDERED THE PRIVATE RESPONDENT TO
SURRENDER THE OWNERSHIP AND POSSESSION OF THE SAME TO
THEM.
II
 THE COURT OF APPEALS ERRED IN RULING THAT THE LAND
DESCRIBED IN THE PETITIONERS' COMPLAINT IS THE SAME LAND
WHICH IS THE SUBJECT OF THE SALE WITH RIGHT TO REPURCHASE
(Exh. 1) EXECUTED ON NOVEMBER 5, 1932 BY THE ESGUERRAS IN
FAVOR OF THE PARENTS OF THE PRIVATE RESPONDENT.
III
THE COURT OF APPEALS ERRED IN DECLARING THE PRIVATE
RESPONDENT TO BE THE ABSOLUTE OWNER AND ENTITLED TO THE
POSSESSION OF THE LAND IN QUESTION TO THE EXCLUSION OF THE
PETITIONERS.
IV
THE COURT OF APPEALS ERRED IN HOLDING THAT THIS LAND WAS
PURCHASED BY THE PARENTS OF THE PRIVATE RESPONDENT FROM
THE HEIRS OF THE LATE CATALINO ESGUERRA ON NOVEMBER 5,
1932 AND THE PRIVATE RESPONDENT AND HER PARENTS HAD BEEN
IN OPEN, CONTINUOUS, ADVERSE, PUBLIC AND NOTORIOUS
POSSESSION OF THE SAME SINCE 1932 UP TO THE PRESENT, IN THE
CONCEPT OF OWNER.
In effect, the sole issue in this petition boils down to this question: Who has the right to the
ownership and possession of the residential lot subject matter of the case, petitioners by virtue of
hereditary succession, or private respondent who claims ownership through purchase of the
property by her parents?
According to the trial court, petitioners have the better right but according to the appellate court,
the property rightly belongs to private respondent. In view of the fact that the findings of the trial
court and the appellate court are contrary to each other, this Court shall exercise its authority of
reviewing the evidence in order to arrive at the correct facts based on the record (Director of
Lands vs. Court of Appeals, 117 SCRA 346 [1982]; Quality Tobacco Corporation vs.
Intermediate Appellate Court, 187 SCRA 210 [1990]; Valenzuela vs. Court of Appeals, 191
SCRA 1 [1990]; Shauf vs. Court of Appeals, 191 SCRA 713 [1990] ; Bustamante vs. Court of
Appeals, 194 SCRA 645 [1991).
It is not disputed that petitioners are the heirs of their late grandfather, Santiago de Jesus; what
is in dispute is their claim that the residential lot in question belonged to their grandfather and
therefore theirs by hereditary succession (Brief for the Respondent, pp. 8-9). Neither is it
contradicted that Santiago de Jesus was married to Maria Reyes, a widow with three children by
a prior marriage, namely: Basilio, Violeta, and Guillerma, the last having been the mother of
herein private respondent (tsn, August 15, 1974, pp. 14-15; September 16, 1974, pp. 14-15, 39-
41).
The only documentary evidence of Santiago de Jesus' alleged ownership of the residential lot in
question is Tax Declaration No. 2384 (Exh. "A") in the name of Victoriano Felipe. Therein, Felipe
claimed ownership for tax purposes of a house of mixed materials and a nipa roof, valued at
P190.00 and constructed on the lot or "solar" belonging to Santiago de Jesus. The statement
therein regarding Santiago de Jesus' ownership of the lot is supported by the testimony of
petitioners Edgardo de Jesus and Corazon de Jesus-Masiglat, and three other witnesses. They
asserted personal knowledge of said fact which, they swore, was also common knowledge in
Dampol 2nd, Pulilan, Bulacan (tsn, August 15, 1974, p. 16; September 16, 1974, pp. 18, 39). As
a child, for instance, witness Antonio Roxas was frequently in the house of his aunt, Maria
Reyes, a sister of his mother. When his aunt was still alive, she told him and his mother, in the
presence of Victoriano Felipe, that she had no right at all over the property, including the old
house, as it really belonged to Santiago de Jesus (tsn, September 16, 1974, pp. 39, 46-49).
On the other hand, private respondent presented a contract of sale with right of repurchase,
"Kasulatang-Biling-Mabibiling-Muli" (Exh. "1"), entered into in 1932 between her parents,
Victoriano Felipe and Guillerma de la Cruz, and the vendors-a-retro Emilia Camacho, Socorro
Esguerra, and Jose Esguerra; a "Sinumpaang Salaysay"; or an affidavit of adjudication which
private respondent executed in 1961 (Exh. "4"); and tax declarations and official receipts.
On the evidentiary value of these documents, it should be recalled that the notarization of a
private document converts it into a public one and renders it admissible in court without further
proof of its authenticity (Joson vs. Baltazar, 194 SCRA 114 [1991]). This is so because a public
document duly executed and entered in the proper registry is presumed to be Valid and genuine
until the contrary is shown by clear and convincing proof (Asido vs. Guzman, 37 Phil. 652 [1918];
U.S. vs. Enriquez, 1 Phil. 241 [1902]; Favor vs. Court of Appeals, 194 SCRA 308 [1991]). As
such, the party challenging the recital of the document must prove his claim with clear and
convincing evidence (Diaz vs. Court of Appeals, 145 SCRA 346 [1986]).
There is no doubt that the pacto de retro deed of sale has assumed the character of a public
document, having been notarized by then Justice of the Peace Francisco Makapugay, Jr. in his
capacity as Notary Public Ex-Oficio. Hence, it is presumed valid and authentic until proven
otherwise. Petitioners, however, challenge this presumption of validity and authenticity. They
contend that private respondent's non-production of Tax Declaration No. 5096, specifically
mentioned in Exh. "1" as containing the description of the piece of land subject of the
"Kasulatang-Biling-Mabibiling-Muli" shattered such presumption and rendered suspect the latter
document (Brief for the Petitioners, pp. 9, 19-22).
While both Socorro Olarte, a signatory to the "Kasulatang-Biling-Mabibiling-Muli" as one of the
vendors-a-retro, and private respondent testified that the land subject of the sale was covered by
Tax Declaration No. 5096 in the name of the original owner Catalino Esguerra (tsn, October 21,
1974, p. 6 and December 18, 1974, pp. 3-5), they could not produce a copy of said tax
declaration. Capitalizing on said omission, petitioners presented a certified true copy of said Tax
Declaration No. 5096 (Exh. "G") covering the year 1948 and which, however, concerns a piece
of lot owned by a certain Teodoro Sinson. Further, petitioners also produced certified true copies
of Tax Declarations Nos. 2214 (Exh. "H"), 2215 (Exh "I") and 2216 (Exh. "J"), all in the name of
Catalino Esguerra as owner, and all for the year 1967.
Pablo H. Domingo, Senior Deputy Assessor, who was subpoenaed to present in court Tax
Declaration No. 5096 in the name of Catalino Esguerra identified the above-mentioned certified
true copies of tax declarations as having been issued by the Office of the Provincial Assessor of
Bulacan (tsn, March 12, 1975, pp. 13-14). However, he said he could not bring with him a copy
of Tax Declaration No. 5096 in the name of Catalino Esguerra as the records of the Office of the
Provincial Assessor only started with the year 1948 because the old Assessor's Office was
burned down during the early part of the liberation (Transcript, March 12, 1975, pp. 5-6, 12).
It is significant to note that the land covered by Tax Declaration No. 5096 (Exh. "G") described
therein as bamboo land, was previously covered by Tax Declaration No. 233 for the same
owner, while Tax Declaration No. 2383 (Exh. "5-C") beginning with the year 1948 and covering
the residential lot in question declared in the name of Victoriano Felipe, cancelled Tax
Declaration No. 5326 (Exh. "5-C-1"). An uncertified copy of said Tax Declaration No. 5326 for
Victoriano Felipe purporting to commence with the year 1939 allegedly superseded Tax
Declaration No. 252 in the name of Catalino Esguerra
(Exh. "3").
In other words, the piece of residential lot covered by Tax Declaration No. 2383 (Exh. "5"), or by
Tax Declaration No. 252 (Exh. "3") at around the time of the alleged sale, until superseded by
Tax Declaration No. 5326 (Exh. "5-C-1") beginning with the year 1939, is not the piece of land
covered by Tax Declaration No. 5096 specifically referred to in Exh. "1" as the subject of the
"Kasulatang-Biling-Mabibiling-Muli". Thus, the fact that Guillerma de la Cruz, mother of private
respondent, made real property tax payments purportedly on Tax Declaration No. 5096 for the
years 1935 (Exh. "2-d" and "2-e") and 1936 (Exh. "2-b") and probably for the years 1933, 1934,
1937 and 1938, in the name of Catalino Esguerra neither alters the fact that the piece of land
covered by Tax Declaration No. 2383 (Exh. "5") is not the subject of the "Kasulatang-Biling-
Mabibiling-Muli" (Exh. "1") nor demonstrates that the payments were made for the residential lot
under litigation.
It is, therefore, evident that Tax Declaration No. 5096 was inexistent at the time of the alleged
sale. By a simply analysis of the different tax declarations presented as evidence in this case, it
is likewise clear that when by virtue of the alleged sale, a new tax declaration numbered 5326,
was made in 1938 in the name of Victoriano Felipe (Exh. "5-C-1"), what was cancelled was Tax
Declaration No. 252 (Exh. "3"), not Tax Declaration No. 5096 which supposedly covered the
property subject of the "Kasulatang-Biling-Mabibiling-Muli". It should be noted that the property
under Tax Declaration No. 5326 bears an identical description to the property under litigation.
Thus, the inevitable conclusion is that, without any legal basis, Victoriano Felipe had declared
himself the owner of the disputed property for tax purposes. Tax Declaration No. 5326 thereafter
became the basis for Tax Declaration
No. 2383 in 1948 (Exh. "5-C") until it was cancelled and new tax declarations were made in the
name of private respondent, viz., Tax Declaration No. 9453 in 1962 (Exh. "5-b"), then Tax
Declaration No. 2657 in 1967 (Exh. "5") and finally Tax Declaration No. 2962 in 1974 (Exh. "5-
A").
As earlier stated, Guillerma de la Cruz had also been paying real property tax on the house
described as located in Dampol 2nd in the name of Victoriano Felipe under Tax Declaration No.
14984 since 1933 (Exh. "2-C"), and then under Tax Declaration No. 3975 since 1941 (Exh. "2-4")
until 1947, and under Tax Declaration No. 2384 in 1948. By a twist of fate, however, Tax
Declaration No. 2384 describes the house, among others, as located in the residential lot
belonging to Santiago de Jesus or "solar de Santiago de Jesus" (Exh. "A-1"). While real property
tax continued to be paid under the latter declaration until 1958 (Exh. "2-y"), by stating in said tax
declaration that his house was located in the land of Santiago de Jesus. Victoriano Felipe
recognized and admitted the ownership of Santiago de Jesus over the residential lot involved
herein. Such admission puts to naught the claim of private respondent for when one derives title
to property from another, the act, declaration or omission of the latter in relation to the property is
evidence against the former (Rolleza vs. Court of Appeals, 174 SCRA 354 (1989]).
The authenticity of the signature of Victoriano Felipe in the deed of sale with right to repurchase
is also in question. Both Moises de Jesus and Antonio Roxas testified that Victoriano Felipe
could not even vote as he did not know how to read and write (tsn, September 16, 1974, pp. 30,
42). Although Socorro Esguerra Olarte identified the signature of Victoriano Felipe on the
"Kasulatang-Biling-Mabibiling-Muli" as his (tsn, October 21, 1974, p. 13), she also testified that
Victoriano Felipe has a brother who looked exactly like Victoriano (tsn, October 21, 1974, p. 36).
On the issue, all that private respondent could say was that her father studied the cartilla (tsn,
January 24, 1975, p. 8).
Under the circumstances, there is strong, convincing, and conclusive proof of the nullity and
falsity of Exhibit "1". Its evidentiary nature cannot, therefore, be sustained (Legaspi vs. Court of
Appeals, 142 SCRA 82 [1986]). Even if the document were to be considered simply as a private
document, it would still need evidence of its due execution and authenticity even if it is already
more than 30 years old as it cannot be considered unblemished by any circumstance of
suspicion (Heirs of Demetria Lacsa vs. Court of Appeals, 197 SCRA 234 [1991]).
Consequently, the affidavit of adjudication executed by private respondent on May 21, 1961
(Exh. "4"), has no evidentiary value as it has become baseless. Furthermore, private respondent
falsely stated therein that she is the only heir of Victoriano Felipe for, at the time of its execution,
her mother, Guillerma de la Cruz, was still living. Guillerma de la Cruz died on April 23, 1964
(Exh. "B"), three years after the "Sinumpaang Salaysay" (Exh. "4") was executed. Moreover, the
tax receipts and declarations of ownership for tax purposes upon which private respondent
basically anchors her claim, are not incontrovertible evidence of ownership; they only become
evidence of ownership acquired by prescription when accompanied by proof of actual
possession of the property (Tabuena vs. Court of Appeals, 196 SCRA 650 [1991]; Rojas vs.
Court of Appeals, 192 SCRA 709 [1992]).
On the issue of ownership by acquisitive prescription, private respondent contends: "Granting
that it was formerly owned by their late grandfather, they (petitioners) have lost whatever right
they may have over the land by extinctive prescription" for the reason that she, private
respondent has acquired the same by acquisitive prescription (Brief for the Respondents, p. 9),
citing Section 41 of the old Code of Civil Procedure which states:
Sec. 41. Title to Land by Prescription. Ten years of actual adverse
possession by any person claiming to be the owner for that time of any land
or interest in land, uninterruptedly, continuously for ten years by occupancy,
descent, grants, or otherwise, in whatever way such occupancy may have
commenced or continued, shall vest in every actual possessor of such land, a
full and complete title . . . .
Corazon de Jesus Masiglat testified that from 1930 to 1952, the period of time she was living in
the house her grandfather erected on the contested property, her grandmother, Victoriano
Felipe, Guillerma de la Cruz, and private respondent also lived there (tsn, July 16, 1974, p. 23).
She was corroborated by petitioner Edgardo de Jesus who also testified that in 1932 up to the
time of his death in 1948, Exequiel de Jesus was taking charge of the property and that while the
parents of private respondent were the ones paying the real property taxes the money therefor
came from Exequiel (tsn, July 16, 1974, pp. 11-14). Witness Salvador Esguerra testified that
Victoriano Felipe began to reside in the house when he married Guillerma de la Cruz and that
Corazon and her father, Exequiel, also resided there after the death of Santiago de Jesus (tsn,
August 15, 1974, pp. 14, 21, 22). Moises de Jesus, for his part, testified that while Victoriano
Felipe started staying in the property only when the children of Santiago de Jesus had died,
Corazon de Jesus continued to reside there (tsn, September 16, 1974, p. 27).
In her own defense private respondent first testified that Corazon de Jesus never lived with them
and that Exequiel de Jesus never went to their place (tsn., October 11, 1974, pp. 35-36). She did
not contradict, however, the testimony of Edgardo de Jesus on rebuttal that he himself at the age
of 12 used to stay in the house and was witness to the occasion when Corazon fell in a ditch
going towards their place, that as a result of such accident, Corazon sustained a permanent
deformity on one hand; and that Corazon left the place only in 1952 when she got married (tsn,
April 23, 1975, pp. 23-24). Neither did private respondent or her witnesses traverse the
testimony of Corazon de
Jesus-Masiglat, also on rebuttal, that since childhood she had been residing in the house owned
by her grandfather Santiago de Jesus, together with private respondent and the latter's parents,
and actually left the place only in 1952: that her parents as well as her child died in that house;
and that private respondent was, in fact, the one who caused the registration of her child's death
(tsn, April 23, 1975, p. 25). Even Socorro Esguerra Olarte, witness for private respondent,
testified that she remembers Exequiel de Jesus as he was always around whenever she visited
the place and he was the one who got santol fruits for her sometimes (tsn, September 23, 1974,
p. 17).
It thus appears that Victoriano Felipe was residing in the house of Santiago de Jesus simply
because he was married to Guillerma de la Cruz, daughter of Maria Reyes by a first marriage,
who, obviously, was living with her mother who had taken Santiago de Jesus for her second
husband. In effect, their possession of the contested lot was neither exclusive nor in the concept
of owner. Possession, to constitute the foundation of a prescriptive right, must be possession
under a claim of title or it must be adverse or in the concept of owner or concepto de
dueo(Ordoez vs. Court of Appeals, 188 SCRA 109 [1990]; Coronado vs. Court of Appeals,
191 SCRA 814 [1990]; Manila Electric Company vs. Intermediate Appelate Court, 174 SCRA
313 [1989]).
In this case, Victoriano Felipe and his family were residing in the land by mere tolerance. There
is no way of knowing how the house on the lot was described in Tax Declaration Nos. 14984 and
3975, but, to repeat, in Tax Declaration No. 2384 which commenced with the year 1948 (Exh.
"A"), the house was described as constructed on the lot or solar of Santiago de Jesus up to the
year 1961 when private respondent was still paying property tax (Exh.
"2-x").
Significantly, the "Kasulatang-Biling-Mabibiling-Muli" was not even given to private respondent
by her parents; she admitted having found it in the house although they mentioned its existence
to her when they were still alive (tsn, December 18, 1974, pp. 18-19). Under the circumstances,
the prescriptive period cannot be considered to have accrued during the lifetime of Victoriano
Felipe.
It is interesting to note that when private respondent executed her "Sinumpaang Salaysay" (Exh.
"4") adjudicating the disputed lot to herself on the basis of the contract of sale as no repurchase
had been made by the vendors of retro, Exequiel de Jesus was already dead and Corazon de
Jesus-Masiglat was no longer residing in the property in question. As she was in possession of
the property, private respondent then had it declared in her name for real property tax purposes
under Tax Declaration No. 9453 (Exh. "5-b") thereby cancelling Tax Declaration No. 2383 (Exh.
"5-b-1") which was in the name of Victoriano Felipe.
As to Tax Declaration No. 2384, the last vestige of Santiago de Jesus' ownership of the property
in question, there is no evidence on record as to whether private respondent had it cancelled,
had a new declaration made on the property in her name, or whether she continued paying tax
after her payment for the year 1961. It was established, however, through the testimony of
Salvador Esguerra, that the old house was demolished and a new bungalow was constructed on
the lot (tsn, August 15, 1974, pp. 23-24).
To create a fundamental basis for her claim of ownership by acquisitive prescription, private
respondent mortgaged the questioned property to the Rural Bank of Pulilan (Exh. "5-b") not as a
mere possessor but as an owner thereof. She also registered both the mortgage and the
"Sinumpaang Salaysay" (tsn, December 18, 1974, p. 23). However, she never attempted to
obtain a certificate of title over the property. This omission indicates, to say the least, that private
respondent realizes her lack of any lawful claim of ownership over the property for while
registration is not a mode of acquiring ownership, it is evidence of such title over the particular
property (Avila v. Tapucar, 201 SCRA 148 [1991]).
Private respondent's pretensions to acquisitive prescription may not succeed even under Act No.
190, the Code of Civil Procedure. Under Section 41 thereof, good faith and just title are not
required for purposes of acquisitive prescription; adverse possession in either character ripens
into ownership after the lapse of ten years (Cruz vs. Court of Appeals, 93 SCRA 619 [1979];
Quilisado vs, Court of Appeals, 182 SCRA 401 [1990]; Ongsiaco vs. Dallo, 27 SCRA 161 [1969];
Miraflor vs. Court of Appeals, 142 SCRA 18 [1986]). The just title required for acquisitive
prescription to set in is not "titulo verdadero y valido" such title which by itself is sufficient to
transfer ownership without the necessity of letting the prescriptive period elapse, but only "titulo
colorado" or such title where, although there was a mode of transferring ownership, still
something is wrong because the grantor is not the owner (Doliendo vs. Biannesa, 7 Phil. 232
[1906] cited in Solis vs. Court of Appeals, 176 SCRA 678 [1989]), and incidentally, it may
perhaps be mentioned that prescription running even after the effectivity of the New Civil Code
on August 30, 1950, continued to be governed by Section 41 of the Old Civil Code (Solis vs.
Court of Appeals, supra).
Under the present Civil Code, the prescriptive period required for acquisition of immovable
property is ten years if the possession is in good faith, and thirty years if in bad faith (South City
Homes, Inc. vs. Republic, 185 SCRA 693 [1990]). Such open, continuous, exclusive and
notorious occupation of the disputed property for thirty years must be conclusively established
(San Miguel Corporation vs. Court of Appeals, 185 SCRA 722 [1990]).
Reckoned from the time she executed the affidavit of adjudication in 1961, eleven years after the
New Civil Code had taken effect, private respondent's possession of the contested lot is far too
short of the prescriptive period of thirty years considering that her possession is in bad faith. The
filing of the petition for recovery of ownership and possession and quieting of title by petitioners
on April 27, 1973 was well below the acquisitive prescriptive period for private respondent, which
is thirty years under Article 1141 of the present Civil Code. In this case, the statutory period of
prescription is deemed to have commenced when petitioners were made aware of a claim
adverse to them (Coronel vs. Intermediate Appellate Court, 155 SCRA 270 [1987]), that is, when
the affidavit of adjudication was duly registered with the Registry of Deeds which, at the earliest
may be considered to be in 1974, when private respondent was able to secure a tax declaration
in her name.
WHEREFORE, the decision of the Court of Appeals under review is hereby SET ASIDE and the
decision of the trial court, dated September 7, 1975, REINSTATED.
SO ORDERED.
 [G.R. No. 79688. February 1, 1996]
PLEASANTVILLE DEVELOPMENT CORPORATION, petitioner, vs. COURT OF APPEALS,
WILSON KEE, C.T. TORRES ENTERPRISES, INC. and ELDRED JARDINICO, respondents.
DECISION
PANGANIBAN, J.:
Is a lot buyer who constructs improvements on the wrong property erroneously delivered
by the owners agent, a builder in good faith?This is the main issue resolved in this petition for
review on certiorari to reverse the Decision[1] of the Court of Appeals[2] in CA-G.R. SP No. 11040,
promulgated on August 20, 1987.
By resolution dated November 13, 1995, the First Division of this Court resolved to transfer
this case (along with several others) to the Third Division. After due deliberation and
consultation, the Court assigned the writing of this Decision to the undersigned ponente.
The Facts
The facts, as found by respondent Court, are as follows:
Edith Robillo purchased from petitioner a parcel of land designated as Lot 9, Phase II and
located at Taculing Road, Pleasantville Subdivision, Bacolod City. In 1975, respondent Eldred
Jardinico bought the rights to the lot from Robillo. At that time, Lot 9 was vacant.
Upon completing all payments, Jardinico secured from the Register of Deeds of Bacolod
City on December 19, 1978 Transfer Certificate of Title No. 106367 in his name. It was then that
he discovered that improvements had been introduced on Lot 9 by respondent Wilson Kee, who
had taken possession thereof.
It appears that on March 26, 1974, Kee bought on installment Lot 8 of the same
subdivision from C.T. Torres Enterprises, Inc. (CTTEI), the exclusive real estate agent of
petitioner. Under the Contract to Sell on Installment, Kee could possess the lot even before the
completion of all installment payments. On January 20, 1975, Kee paid CTTEI the relocation fee
of P50.00 and another P50.00 on January 27, 1975, for the preparation of the lot plan. These
amounts were paid prior to Kees taking actual possession of Lot 8. After the preparation of the
lot plan and a copy thereof given to Kee, CTTEI through its employee, Zenaida Octaviano,
accompanied Kees wife, Donabelle Kee, to inspect Lot 8. Unfortunately, the parcel of land
pointed by Octaviano was Lot 9. Thereafter, Kee proceeded to construct his residence, a store,
an auto repair shop and other improvements on the lot.
After discovering that Lot 9 was occupied by Kee, Jardinico confronted him. The parties
tried to reach an amicable settlement, but failed.
On January 30, 1981, Jardinicos lawyer wrote Kee, demanding that the latter remove all
improvements and vacate Lot 9. When Kee refused to vacate Lot 9, Jardinico filed with the
Municipal Trial Court in Cities, Branch 3, Bacolod City (MTCC), a complaint for ejectment with
damages against Kee.
Kee, in turn, filed a third-party complaint against petitioner and CTTEI.
The MTCC held that the erroneous delivery of Lot 9 to Kee was attributable to CTTEI. It
further ruled that petitioner and CTTEI could not successfully invoke as a defense the failure of
Kee to give notice of his intention to begin construction required under paragraph 22 of the
Contract to Sell on Installment and his having built a sari-sari store without. the prior approval of
petitioner required under paragraph 26 of said contract, saying that the purpose of these
requirements was merely to regulate the type of improvements to be constructed on the lot [3].
However, the MTCC found that petitioner had already rescinded its contract with Kee
over Lot 8 for the latters failure to pay the installments due, and that Kee had not contested the
rescission. The rescission was effected in 1979, before the complaint was instituted.The MTCC
concluded that Kee no longer had any right over the lot subject of the contract between him and
petitioner. Consequently, Kee must pay reasonable rentals for the use of Lot 9, and, furthermore,
he cannot claim reimbursement for the improvements he introduced on said lot.
The MTCC thus disposed:
IN VIEW OF ALL THE FOREGOING, judgment is hereby rendered as follows:
1. Defendant Wilson Kee is ordered to vacate tithe premises of Lot 9, covered by TCT No. 106367 and to
remove all structures and improvements he introduced thereon;
2. Defendant Wilson Kee is ordered to pay to the plaintiff rentals at the rate of P 15.00 a day computed
from the time this suit was filed on March 12, 1981until he actually vacates the premises. This amount
shall bear interests (sic) at the rate of 12 per cent (sic) per annum.
3. Third-Party Defendant CT. Torres Enterprises, Inc. and Pleasantville Subdivision are ordered to pay the
plaintiff jointly and severally the sum of P3,000.00 as attorneys fees and P700.00 as cost and litigation
expenses.[4]
On appeal, the Regional Trial Court, Branch 48, Bacolod City (RTC) ruled that petitioner
and CTTEI were not at fault or were not negligent, there being no preponderant evidence to
show that they directly participated in the delivery of Lot 9 to Kee.[5] It found Kee a builder in bad
faith. It further ruled that even assuming arguendo that Kee was acting in good faith, he was,
nonetheless, guilty of unlawfully usurping the possessory right of Jardinico over Lot 9 from the
time he was served with notice to vacate said lot, and thus was liable for rental.
The RTC thus disposed:
WHEREFORE, the decision appealed from is affirmed with respect to the order against the defendant to
vacate the premises of Lot No. 9 covered by Transfer Certificate of Title No. T-106367 of the land records
of Bacolod City; the removal of all structures and improvements introduced thereon at his expense and the
payment to plaintiff (sic) the sum of Fifteen (P 15.00) Pesos a day as reasonable rental to be computed
from January 30, 1981, the date of the demand, and not from the date of the filing of the complaint, until
he had vacated (sic) the premises, with interest thereon at 12% per annum. This Court further renders
judgment against the defendant to pay the plaintiff the sum of Three Thousand (P3,000.00) Pesos as
attorneys fees, plus costs of litigation.
The third-party complaint against Third-Party Defendants Pleasantville Development Corporation and
C.T. Torres Enterprises, Inc. is dismissed. The order against Third-Party Defendants to pay attorneys fees
to plaintiff and costs of litigation is reversed.[6]
Following the denial of his motion for reconsideration on October 20, 1986, Kee appealed
directly to the Supreme Court, which referred the matter to the Court of Appeals.
The appellate court ruled that Kee was a builder in good faith, as he was unaware of the
mix-up when he began construction of the improvements on Lot 8. It further ruled that the
erroneous delivery was due to the negligence of CTTEI, and that such wrong delivery was
likewise imputable to its principal, petitioner herein. The appellate court also ruled that the award
of rentals was without basis.
Thus, the Court of Appeals disposed:
WHEREFORE, the petition is GRANTED, the appealed decision is REVERSED, and judgment is
rendered as follows:
1. Wilson Kee is declared a builder in good faith with respect to the improvements he
introduced on Lot 9, and is entitled to the rights granted him under Articles
448, 546 and 548 of the New Civil Code.
2. Third-party defendants C.T. Torres Enterprises, Inc. and Pleasantville
Development Corporation are solidarily liable under the following circumstances:
a. If Eldred Jardinico decides to appropriate the improvements and, thereafter, remove these
structures, the third-party defendants shall answer for all demolition expenses and the
value of the improvements thus destroyed or rendered useless;
b. If Jardinico prefers that Kee buy the land, the third-party defendants shall answer for the
amount representing the value of Lot 9 that Kee should pay to Jardinico.
3. Third-party defendants C.T. Torres Enterprises, Inc. and Pleasantville
Development Corporation are ordered to pay in solidum the amount of P3,000.00
to Jardinico as attorneys fees, as well as litigation expenses.
4. The award of rentals to Jardinico is dispensed with.
Furthermore, the case is REMANDED to the court of origin for the determination of the actual value of
the improvements and the property (Lot 9), as well as for further proceedings in conformity with Article
448 of the New Civil Code.[7]
Petitioner then filed the instant petition against Kee, Jardinico and CTTEI.
The Issues
The petition submitted the following grounds to justify a review of the respondent Courts
Decision, as follows:
1. The Court of Appeals has decided the case in a way probably not in accord with law or the the (sic)
applicable decisions of the Supreme Court on third-party complaints, by ordering third-party defendants to
pay the demolition expenses and/or price of the land;
2. The Court of Appeals has so far departed from the accepted course of judicial proceedings, by granting
to private respondent-Kee the rights of a builder in good faith in excess of what the law provides, thus
enriching private respondent Kee at the expense of the petitioner;
3. In the light of the subsequent events or circumstances which changed the rights of the parties, it
becomes imperative to set aside or at least modify the judgment of the Court of Appeals to harmonize with
justice and the facts;
4. Private respondent-Kee in accordance with the findings of facts of the lower court is clearly a builder in
bad faith, having violated several provisions of the contract to sell on installments;
5. The decision of the Court of Appeals, holding the principal, Pleasantville Development Corporation
(liable) for the acts made by the agent in excess of its authority is clearly in violation of the provision of
the law;
6. The award of attorneys fees is clearly without basis and is equivalent to putting a premium in (sic) court
litigation.
From these grounds, the issues could be re-stated as follows:
(1) Was Kee a builder in good faith?
(2) What is the liability, if any, of petitioner and its agent, C.T. Torres Enterprises, Inc.? and
(3) Is the award of attorneys fees proper?
The First Issue: Good Faith
Petitioner contends that the Court of Appeals erred in reversing the RTCs ruling that Kee
was a builder in bad faith.
Petitioner fails to persuade this Court to abandon the findings and conclusions of the Court
of Appeals that Kee was a builder in good faith. We agree with the following observation of the
Court of Appeals:
The roots of the controversy can be traced directly to the errors committed by CTTEI, when it pointed the
wrong property to Wilson Kee and his wife. It is highly improbable that a purchaser of a lot would
knowingly and willingly build his residence on a lot owned by another, deliberately exposing himself and
his family to the risk of being ejected from the land and losing all improvements thereon, not to mention
the social humiliation that would follow.
Under the circumstances, Kee had acted in the manner of a prudent man in ascertaining the identity of his
property. Lot 8 is covered by Transfer Certificate of Title No. T-69561, while Lot 9 is identified in
Transfer Certificate of Title No. T-106367. Hence, under the Torrens system of land registration, Kee is
presumed to have knowledge of the metes and bounds of the property with which he is dealing. x x x
xxx xxx xxx
But as Kee is a layman not versed in the technical description of his property, he had to find a way to
ascertain that what was described in TCT No. 69561 matched Lot 8. Thus, he went to the subdivision
developers agent and applied and paid for the relocation of the lot, as well as for the production of a lot
plan by CTTEIs geodetic engineer. Upon Kees receipt of the map, his wife went to the subdivision site
accompanied by CTTEIs employee, Octaviano, who authoritatively declared that the land she was pointing
to was indeed Lot 8. Having full faith and confidence in the reputation of CTTEI, and because of the
companys positive identification of the property, Kee saw no reason to suspect that there had been a
misdelivery. The steps Kee had taken to protect his interests were reasonable. There was no need for him
to have acted ex-abundantia cautela, such as being present during the geodetic engineers relocation survey
or hiring an independent geodetic engineer to countercheck for errors, for the final delivery of subdivision
lots to their owners is part of the regular course of everyday business of CTTEI. Because of CTTEIs
blunder, what Kee had hoped to forestall did in fact transpire. Kees efforts all went to naught.[8]
Good faith consists in the belief of the builder that the land he is building on is his and his
ignorance of any defect or flaw in his title.[9]And as good faith is presumed, petitioner has the
burden of proving bad faith on the part of Kee. [10]
At the time he built improvements on Lot 8, Kee believed that said lot was what he bought
from petitioner. He was not aware that the lot delivered to him was not Lot 8. Thus, Kees good
faith. Petitioner failed to prove otherwise.
To demonstrate Kees bad faith, petitioner points to Kees violation of paragraphs 22 and 26
of the Contract of Sale on Installment.
We disagree. Such violations have no bearing whatsoever on whether Kee was a builder in
good faith, that is, on his state of mind at the time he built the improvements on Lot 9. These
alleged violations may give rise to petitioners cause of action against Kee under the said contract
(contractual breach), but may not be bases to negate the presumption that Kee was a builder in
good faith.
Petitioner also points out that, as found by the trial court, the Contract of Sale on
Installment covering Lot 8 between it and Kee was rescinded long before the present action was
instituted. This has no relevance on the liability of petitioner, as such fact does not negate the
negligence of its agent in pointing out the wrong lot to Kee. Such circumstance is relevant only
as it gives Jardinico a cause of action for unlawful detainer against Kee.
Petitioner next contends that Kee cannot claim that another lot was erroneously pointed
out to him because the latter agreed to the following provision in the Contract of Sale on
Installment, to wit:
13. The Vendee hereby declares that prior to the execution of his contract he/she has personally examined
or inspected the property made subject-matter hereof, as to its location, contours, as well as the natural
condition of the lots and from the date hereof whatever consequential change therein made due to erosion,
the said Vendee shall bear the expenses of the necessary fillings, when the same is so desired by
him/her.[11]
The subject matter of this provision of the contract is the change of the location, contour
and condition of the lot due to erosion. It merely provides that the vendee, having examined the
property prior to the execution of the contract, agrees to shoulder the expenses resulting from
such change.
We do not agree with the interpretation of petitioner that Kee contracted away his right to
recover damages resulting from petitioners negligence. Such waiver would be contrary to public
policy and cannot be allowed. Rights may be waived, unless the waiver is contrary to law, public
order, public policy, morals, or good customs, or prejudicial to a third person with a right
recognized by law.[12]
The Second Issue: Petitioners Liability
Kee filed a third-party complaint against petitioner and CTTEI, which was dismissed by the
RTC after ruling that there was no evidence from which fault or negligence on the part of
petitioner and CTTEI can be inferred. The Court of Appeals disagreed and found CTTEI
negligent for the erroneous delivery of the lot by Octaviano, its employee.
Petitioner does not dispute the fact that CTTEI was its agent. But it contends that the
erroneous delivery of Lot 9 to Kee was an act which was clearly outside the scope of its
authority, and consequently, CTTEI alone should be liable. It asserts that while [CTTEI] was
authorized to sell the lot belonging to the herein petitioner, it was never authorized to deliver the
wrong lot to Kee.[13]
Petitioners contention is without merit.
The rule is that the principal is responsible for the acts of the agent, done within the scope
of his authority, and should bear the damage caused to third persons. [14] On the other hand, the
agent who exceeds his authority is personally liable for the damage.[15]
CTTEI was acting within its authority as the sole real estate representative of petitioner
when it made the delivery to Kee. In acting within its scope of authority, it was, however,
negligent. It is this negligence that is the basis of petitioners liability, as principal of CTTEI, per
Articles 1909 and 1910 of the Civil Code.
Pending resolution of the case before the Court of Appeals, Jardinico and Kee on July 24,
1987 entered into a deed of sale, wherein the former sold Lot 9 to Kee. Jardinico and Kee did not
inform the Court of Appeals of such deal.
The deed of sale contained the following provision:
1. That Civil Case No. 3815 entitled Jardinico vs. Kee which is now pending appeal with the Court of
Appeals, regardless of the outcome of the decision shall be mutually disregarded and shall not be pursued
by the parties herein and shall be considered dismissed and without effect whatsoever;[16]
Kee asserts though that the terms and conditions in said deed of sale are strictly for the
parties thereto and that (t)here is no waiver made by either of the parties in said deed of
whatever favorable judgment or award the honorable respondent Court of Appeals may make in
their favor against herein petitioner Pleasantville Development Corporation and/or private
respondent C.T. Torres Enterprises, Inc.[17]
Obviously, the deed of sale can have no effect on the liability of petitioner. As we have
earlier stated, petitioners liability is grounded on the negligence of its agent. On the other hand,
what the deed of sale regulates are the reciprocal rights of Kee and Jardinico; it stressed that
they had reached an agreement independent of the outcome of the case.
 Petitioner further assails the following holding of the Court of Appeals: value of the improvements and the property (Lot 9), as well as for further proceedings in
conformity with Article 448 of the New Civil Code.
2. Third-party defendants C.T. Torres Enterprises, Inc. and Pleasantville Development Corporation are WHEREFORE, the petition is partially GRANTED. The Decision of the Court of Appeals is
solidarily liable under the following circumstances: hereby MODIFIED as follows:

a. If Eldred Jardinico decides to appropriate the improvements and, thereafter, remove these
structures, the third-party defendants shall answer for all demolition expenses and the
value of the improvements thus destroyed or rendered useless;
b. If Jardinico prefers that Kee buy the land, the third-party defendants shall answer for the
amount representing the value of Lot 9 that Kee should pay to Jardinico.[18]
Petitioner contends that if the above holding would be carried out, Kee would be unjustly
enriched at its expense. In other words, Kee would be -able to own the lot, as buyer, without
having to pay anything on it, because the aforequoted portion of respondent Courts Decision
would require petitioner and CTTEI jointly and solidarily to answer or reimburse Kee there for.
We agree with petitioner.
(1) Wilson Kee is declared a builder in good faith;
(2) Petitioner Pleasantville Development Corporation and respondent C.T. Tones
Enterprises, Inc. are declared solidarily liable for damages due to negligence;
however, since the amount and/or extent of such damages was not proven
during the trial, the same cannot now be quantified and awarded;
(3) Petitioner Pleasantville Develpment Corporation and respondent C.T. Torres
Enterprises, Inc. are ordered to pay in solidum the amount of P3,000.00 to
Jardinico as attorneys fees, as well as litigation expenses; and
(4) The award of rentals to Jardinico is dispensed with.
SO ORDERED.

Petitioners liability lies in the negligence of its agent CTTEI. For such negligence, the
petitioner should be held liable for damages. Now, the extent and/or amount of damages to be
awarded is a factual issue which should be determined after evidence is adduced. However,
there is no showing that such evidence was actually presented in the trial court; hence no
damages could now be awarded.
The rights of Kee and Jardinico vis-a-vis each other, as builder in good faith and owner in
good faith, respectively, are regulated by law (i.e., Arts. 448, 546 and 548 of the Civil Code). It
was error for the Court of Appeals to make a slight modification in the application of such law, on
the ground of equity. At any rate, as it stands now, Kee and Jardinico have amicably settled
through their deed of sale their rights and obligations with regards to Lot 9. Thus, we delete
items 2 (a) and (b) of the dispositive portion of the Court of Appeals Decision [as reproduced
above] holding petitioner and CTTEI solidarily liable.

The Third Issue: Attorneys Fees

The MTCC awarded Jardinico attorneys fees and costs in the amount of P3,000.00 and
P700.00, respectively, as prayed for in his complaint. The RTC deleted the award, consistent
with its ruling that petitioner was without fault or negligence. The Court of Appeals, however,
reinstated the award of attorneys fees after ruling that petitioner was liable for its agents
negligence.
The award of attorneys fees lies within the discretion of the court and depends upon the
circumstances of each case.[19] We shall not interfere with the discretion of the Court of
Appeals. Jardinico was compelled to litigate for the protection of his interests and for the
recovery of damages sustained as a result of the negligence of petitioners agent. [20]
In sum, we rule that Kee is a builder in good faith. The disposition of the Court of Appeals
that Kee is entitled to the rights granted him under Articles 448, 546 and 548 of the New Civil
Code is deleted, in view of the deed of sale entered into by Kee and Jardinico, which deed now
governs the rights of Jardinico and Kee as to each other. There is also no further need, as ruled
by the appellate Court, to remand the case to the court of origin for determination of the actual
G.R. No. 3088 February 6, 1907
EL BANCO ESPAOL-FILIPINO, plaintiff-appellant,
vs.
JAMES PETERSON, sheriff of the city of Manila, ET AL., defendants-appellees.
Del-Pan, Ortigas & Fisher for appellant.
Hartigan, Marple, Rohde, & Gutierrez for appellees.
TORRES, J.:
On the 24th of October, 1905, the Spanish-Filipino Bank, a corporation, through its attorneys,
Del-Pan, Ortigas and Fisher, filed a complaint against the sheriff of the city of Manila and the
other defendant, Juan Garcia, praying that judgment be rendered against the said sheriff,
declaring that the execution levied upon the property referred to in the complaint, to wit, wines,
liquors, canned goods, and other similar merchandise, was illegal, and directing the defendants
to return the said goods to the plaintiff corporation, and in case that he had disposed of the
same, to pay the value thereof, amounting to P30,000, Philippine currency, and further that it be
declared that the said plaintiff corporation, under the contract of pledge referred to in the
complaint had the right to apply the proceeds of the sale of the said goods to the payment of the
debt of P40,000, Philippine currency, for the security of which the said merchandise was
pledged, with preference over the claim of the other defendant, Juan Garcia and that both
defendants be held jointly liable to the plaintiff for the sum of P500, Philippine currency, as
damages, and the said defendants to pay the costs of the proceedings, and for such other and
further relief as the plaintiff might be entitled to under the law. Plaintiff alleges in its complaint
that under the contract entered into on the 4th of March, 1905, by and between the Spanish-
Filipino Bank and Francisco Reyes, the former, loaned to the latter the sum of P141,702,
Philippine currency; that on the same date Francisco Reyes was already indebted to the bank in
the sum of P84,415.38, Philippine currency, which, added to the amount of the loan, made a
total of P226,117.38, Philippine currency, received by the said Reyes as a loan from the plaintiff
bank, the entire sum at an annual interest of 8 per cent; that to secure the payment of these two
sums and the interest thereon, the debtor, Francisco Reyes, by a public instrument executed
before a notary on the aforesaid date mortgaged in favor of the plaintiff bank several pieces of
property belonging to him, and pledged to the said bank part of his personal property, specifying
the proportion on which the said real and personal property thus mortgaged and pledged in favor
of the plaintiff corporation would be respectively liable for the payment of the debt; that the
property pledged by the debtor to the bank included a stock or merchandise, consisting of wines,
liquors, canned goods, and other similar articles valued at P90,591.75, Philippine currency, then
stored in the warehouses of the debtor, Reyes, No. 12 Plaza Moraga, in the city of Manila, which
said goods and merchandise were liable for the payment of the said sum of P90,591.75,
Philippine currency; that in the aforesaid deed of pledge it was agreed by and between the bank
and the debtor, Reyes, that the goods should be delivered to Ramon Garcia y Planas for safe-
keeping, the debtor having actually turned over to the said Garcia y Planas the goods in question
by delivering to him the keys of the warehouse in which they were kept; that in a subsequent
contract entered into by and between the debtor, Reyes, and the plaintiff bank on the 29th of
September, 1905, the said contract executed on the 4th of March was modified so as to provide
that the goods then (September 29) in possession the depositary should only be liable for the
sum of P40,000, Philippine currency, the said contract of the 4th of March remaining in all other
respects in full force and effect, Luis M.a Sierra having been subsequently appointed by
agreement between the bank and the debtor as depositary of the goods thus pledged in
substitution for the said Ramon Garcia y Planas.
On the 19th of October, 1905, in an action brought in the Court of First Instance of the city of
Manila by Juan Garcia y Planas against Francisco Reyes and Ramon Agtarat, judgment was
rendered against the last-mentioned two for the sum of P15,000, Philippine currency, to be paid
by them severally or jointly, upon which judgment execution was issued against the property of
the defendants, Reyes and Agtarap. On the aforesaid 19th day of October, for the purpose of
levying upon the property of the defendants, the sheriff at the request of Garcia, the plaintiff in
that case, entered the warehouse where the goods pledged to the plaintiff bank were stored
under the custody of the depositary, Sierra, and levied upon them as per list attached to the
complaint marked "Exhibit A." The sheriff seized the goods which had been pledged to the bank,
depriving the latter of the possession of the same, to which said contract executed on the 4th of
March, 1905. Without the authority of the bank, Reyes could not dispose of the said goods. The
value of the goods seized by the sheriff was P30,000, Philippine currency, the said sheriff,
having refused, and still refusing, to return to the same to the bank, notwithstanding repeated
demands made upon him to this effect, and it being alleged in the complaint that unless
prohibited by the court the sheriff would proceed to sell the said goods at public auction and
apply the proceeds to the satisfaction of the judgment rendered in favor of the Juan Garcia y
Planas, while the other debtor Reyes had not paid to the bank the P40,000, Philippine currency,
to secure the payment of which the goods mentioned in Exhibit A had been pledged to the bank,
that is, to secure the payment of a sum in excess of the actual value of the goods in the hands of
the sheriff.
The defendant sheriff, James J. Peterson, and Juan Garcia, his codefendant, through their
attorneys, Hartigan, Marple, Rohde and Gutierrez, answering the complaint, stated that they
admitted the allegations contained in paragraphs 1, 2, 3, 4, 5, 12, and 17 of the complaint, but
denied the allegations contained in paragraphs 6, 7, 8, 9, 10, 11, 14, 16, and 18. They further
denied the allegations contained in paragraph 12, with the exception that the defendant sheriff
levied upon the goods mentioned in Exhibit A attached to the complaint for the purpose of
satisfying the judgment referred to therein; and also the allegations contained in paragraph 13 of
the complaint, with the exception that the sheriff seized the property mentioned in Exhibit A
under the execution referred to therein; and finally defendants denied the allegation contained in
paragraph 15 of the complaint, with the exception of the allegation that the value of the property
seized is P30,000. They accordingly asked that the action be dismissed and that it be adjudged
that the plaintiff had no interest whatever in the property described in the complaint, and that the
plaintiff be taxed with the costs of these proceedings.
The testimony introduced by the parties having been received, and the exhibits having been
attached to the record, the court below entered judgment on the 4th of January, 1906, dismissing
plaintiff's action and directing that the defendant recover from the Spanish-Filipino Bank the
costs of this action, for which execution was duly issued. To this judgment counsel for plaintiff
excepted and announced his intention of prosecuting a bill of exceptions, and further made a
motion for a new trial on the ground that the judgment of the court below was contrary to law and
that the findings of fact were plainly and manifestly contrary to the weight of the evidence.
The decision of this case depends mainly upon the question as to whether the contract of pledge
entered into by and between the Spanish-Filipino Bank and Francisco Reyes to secure a loan
made by the former to the latter was valid, all the requisites prescribed by the Civil Code having
been complied with.
If so, the bank's claim had preference over the claim of a third person not secured, as was the
bank's, by a pledge, with reference to the property pledged to the extent of its value, and
therefore such property could not have been legally levied upon by the sheriff at the request of
the defendant, Juan Garcia. (Arts. 1921, 1922, Civil Code.)
The contract in question complies with all the requisites provided in article 1857 of the Civil
Code, such as that the property was pledged to secure a debt, the date of the execution, the
terms of the pledge, and the property pledged, all of which appears in a public document, and
the property pledged was placed in the hands of a third person by common consent of the debtor
and creditor, under the supervision of an agent of the bank. (Arts. 1863, 1865, 1866, 1869, 1871,
Civil Code.) The defect alleged to exist in the said contract is that the debtor, Reyes, continued in
possession of the property pledged; that he never parted with the said property, and that neither
the creditor nor the depositary appointed by common consent of the parties were ever in
possession of the property pledged, and for this reason, and upon the further ground that the
contract was fraudulent, the court below dismissed the complaint with the costs against the
plaintiff.
In the motion for a new trial it was alleged by the plaintiff that the judgment of the court below
was contrary to law, and that the findings of fact contained therein were plainly and manifestly
against the weight of the evidence. If plaintiffs contention is correct, then the judgment of the
court below should be reversed.
goods by means of the delivery of the keys to the warehouse where the goods were stored being
sufficient to show that the depositary appointed by the common consent of the parties was
legally placed in possession of the goods. (Articles 438, 1463, Civil Code.)
The fact that the debtor, Reyes, procured purchasers and made arrangements for the sale of the
goods pledged and that the bills for the goods thus sold were signed by him does not affect the
validity of the contract, for the pledgor, Reyes, continued to be the owner of the goods, (art.
1869, Civil Code), he being the one principally interested in the sale of the property on the best
possible terms.
As to the reservation stipulated in paragraph 13 of the contract executed on the 4th of March,
1905, it could not affect the contract in question for the reason that reservation referred to the
rent from the property mortgaged, to the bank and the dividends from the shares of stock also
pledged to the bank, and not the merchandise so pledged, and such reservation could not have
rendered the contract of pledge null.

From the evidence introduced at the trial, both oral and documentary, it appears that a third
person, appointed by the common consent of the debtor and creditor, was in possession of the
goods pledged in favor of the bank under the direct supervision of an agent of the bank
expressly appointed for this purpose, and it has not been shown that the said Reyes continued in
the possession of the goods after they had been pledged to the plaintiff bank.
If the case is to be decided in accordance with the facts alleged and established, the defendant
not having introduced any evidence to show that the said contract of pledge was fraudulent as to
other creditors, there was no legal ground upon which the court below could have held that the
contract evidenced by the instrument in question was entered into to defraud other creditors of
the pledgor.

Exhibit C and the testimony of Francisco Reyes, Luis M.a Sierra, and Mariano Rodriguez
corroborate the existence and authenticity of the contract of pledge recorded in a public
instrument and conclusively and satisfactorily show that the debtor, after the pledge of the
property, parted with the possession of the same, and that it was delivered to a third person
designated by common consent of the parties. For the purpose of giving this possession greater
effect, the pledgee appointed a person to examine daily the property in the warehouse where the
same was kept.
The witness Matias Garcia also testified as to the status of these goods, and informed Juan
Garcia of such status before the same were levied upon.
For the reason hereinbefore set out, and the judgment of the court below being contrary to the
evidence, the said judgment is hereby reversed, and it is hereby adjudged that the plaintiff
corporation, under and by virtue of the contract of pledge in question, had a preferential right
over that of the defendant, Juan Garcia, to the goods pledged or the value thereof, the value to
be applied to the payment of the debt of P40,000, Philippine currency, for the security of which
the said property was pledged, and the defendants are accordingly hereby ordered to return to
the plaintiff corporation the property improperly levied upon, or to pay its value, amounting to
P30,000, Philippine currency, without special provision as to costs. After the expiration of twenty
days let judgment be entered in accordance herewith, and ten days thereafter the case be
remanded to the court below for execution. So ordered.

The sheriff's testimony supports the allegation that the depositary, Sierra, was present at the
place where the goods were kept, as well as the representative of the bank, Rodriguez, when he,
the sheriff, went there for the purpose of levying upon the said property. He further testified that
Rodriguez, the representative of the bank, then protested and notified him that the property in
question was pledged to the Spanish-Filipino Bank.

The contract in question was, therefore, a perfect contract of pledge under articles 1857 and
1863 of the Civil Code, it having been conclusively shown that the pledgee took charge and
possession of the goods pledged through a depository and a special agent appointed by it, each
of whom had a duplicate key to the warehouse wherein the said goods were stored, and that the
pledgee, itself, received and collected the proceeds of the goods as they were sold.

The fact that the said goods continued in the warehouse which was formerly rented by the
pledgor, Reyes, does not affect the validity and legality of the pledge, it having been
demonstrated that after the pledge had been agreed upon, and after the depository appointed
with the common consent of the parties had taken possession of the said property, the owner,
the pledgor, could no longer dispose of the same, the pledgee being the only one authorized to
do so through the depositary and special agent who represented it, the symbolical transfer of the
G.R. No. L-9989 March 13, 1918
EDUARDO CUAYCONG, ET AL., plaintiffs-appellees,
vs.
RAMONA BENEDICTO, ET AL., defendants-appellants.
Ruperto Montinola and Aurelio Montinola for appellants.
No appearance for appellees.
FISHER, J.:
The issues in this case relate to the right of plaintiffs to make use of two roads existing on the
Hacienda Toreno, a tract of land in the municipality of Victorias, Negros Occidental, the property
of the defendants, Blasa Benedicto and Ramona Benedicto. One of these roads is referred to in
the proceedings as the Nanca-Victorias road and the other as the Dacuman Toreno road. The
Court of First Instance held that those of the plaintiffs who claimed to be entitled to make use of
the Dacuman Toreno road had failed to establish the asserted right, and dismissed the action
as to them. From this decision they appealed to this court but, their brief not having been filed
within the time prescribed by the rules, their appeal was dismissed, on motion of defendants, by
resolution dated February 14, 1916. Consequently, the issues presented on this appeal are
limited to those which relate to the rights of the parties with respect to the Nanca-Victorias road,
and the determination of the correctness of the decision of the court concerning that part of the
controversy submitted to its decision.
The allegations in the complaint with respect to the Nanca-Victorias road are that the appellees,
Eduardo Cuaycong, Lino Cuaycong, and Eulalio Dolor, are the owners of a group of haciendas
situated between the southern boundary of the Hacienda Toreno and the barrio of Nanca, of the
municipality of Seravia, and that the appellees Silverio Ginoo, Gervasio Ascalon, and Juan
Ledesma, are the lessees of part of said haciendas; that more than twenty years the appellees
and their predecessors in interest have made use of the Nanca-Victorias road, which crosses the
Hacienda Toreno, openly, publicly, and continiously, with the knowledge of the owners of the
said hacienda, for the purpose of conveying the products of their haciendas to the town of
Victorias and to the landing place there situated, and for the purpose of transporting supplies
from those points to their haciendas, making use of the said road by means of carts, carabaos,
and other usual means of transportation; that there is no outlet to a public road from the
hacienda occupied by these plaintiffs, the only road and way by which the products of the
plaintiffs' property can be taken to the town of Victorias and to the landing place there being
across the Hacienda Toreno by the road marked on the plan attached to the complaint; that on
the fifteenth day of November, 1912, the defendants closed the road in question at the point at
which it crosses the Hacienda Toreno, and refused to permit plaintiffs to continue using it; that
plaintiffs were about to commence to grind their crop of sugar cane, and that, if prevented from
transporting their sugar across the Hacienda Toreno to their point of embarkation, would suffer
damages difficult to estimate. Upon these averments of fact the plaintiffs prayed for a judgment
that they are entitled to use the road in question as they have been using it in the past, and that
a perpetual injunction be issued against plaintiffs restraining them from impending such use.
Upon the filing of the complaint, plaintiffs moved the court to issue a preliminary injunction
restraining defendants from interfering with the use of the road during the pendency of the suit,
which motion was granted by the court.
Defendants in their answer put in issue all the special averments of the complaint, as above set
forth, and by way of counterclaim and special defense, averred that the road crossing the
Hacienda Toreno, over which plaintiffs claim the right of passage, is the private property of
defendants; and, further, that they have not refused plaintiffs permission to pass over this road
but have required them to pay toll for the privilege of doing so. Defendants also claimed
damages for the use of the road by plaintiffs during the pendency of the suit, alleging that the
preliminary injunction had been improvidently issued upon false statements contained in the
verified complaint filed by plaintiffs.
The case was tried in July, 1913. The court on December 8, 1913, rendered judgment,
dismissing the complaint with respect to the plaintiffs Felix Suarez, Probo Jereza, Enrique
Azcona, and Melecio Pido, these being the plaintiffs who claimed the right to use the Dacuman
Toreno road. With respect to the Nanca-Victorias road, the court held that it was a public
highway over which the public had acquired a right of use by immemorial prescription, and
ordered the issuance of a perpetual injunction against plaintiffs, restraining them from interfering
in any manner with the use of the said road.
The conclusion of the court with respect to the facts affecting the Nanca-Victorias road are as
follows:
Turning to a consideration of the evidence relative to the Nanca-Victorias road we find
incontestable proof that it has been in existence for at least forty years. That the
hacenderos located in the southwestern section of Victorias and the public generally
passed over it freely and that it was used for all purposes of transportation of farm
produce, animals, etc. and by pedestrians as well as carromatas and other
conveyances without break or interruption until two or three years ago when the
defendants announced that the road was private and that those who wished to pass
over it with sugar carts would be obliged to pay a toll of ten centavos all other
vehicles, it appears, were permitted to pass free charge. This arrangement seems to
have existed during the years of 1911 and 1912 and part of 1913, the money being
collected apparently from some hacenderos and not from others. There is some reason
to believe from the evidence presented by defendants themselves that the practice of
making these payments to hacienda 'Toreno' originated in an attempt to raise a fund for
the repair of the road. There is no evidence that any other hacenderos between Nanca
and Victorias or any other person made any attempt to close the road or to collect toll.
On the contrary the road appears to have been repaired by the hacenderos when it
needed repairing and everyone used it on equal terms until the defendants in 1910 or
1911 interposed the objection that the road in dispute was private. This we think is a
fair deduction from the evidence and although it is asserted that toll was collected at an
earlier date by the late Leon Montinola, brother of the defendant Ruperto Montinola,
there is no tangible evidence that this was so and that toll has been paid only during
the years of 1911, 1912, and part of 1913.
The question presented by the assignment of error are in effect:
(a) Is the Nanca-Victorias road at the point at which it traverses the Hacienda Toreno a public
highway or not?
(b) If it be held that the road in question is not a public highway, have plaintiffs proven their
acquisition of an easement of way over the Hacienda Toreno at the point traversed by the road
in question?
The trial judge, in holding that the road in question is public, bases in conclusion upon the fact,
which he deems to have been proven, that the road has been in existence "from time
immemorial," and had been "continiously used as a public road . . . and open to public as such
for thirty or forty years . . . until . . . the defendants undertook to claim it as private and to collect
toll for the passage of carts." (Bill of Exceptions, p. 56.) There is no doubt that for the past thirty
or forty years a road has existed between the former site of the town of Victorias and the barrio
of Nanca, of the municipality of Seravia, and that this road crosses defendants' hacienda. It is
also true that during this period the plaintiffs and their predecessors in the ownership of the
hacienda now held by them have made use of this road for the purpose of going and coming
from their haciendas to the town of Victorias; but the question is whether this use was limited to
the plaintiffs, and their tenants and employees, or whether it was, as held by the lower court, a
use enjoyed by the public in general. Plaintiffs produced only two witnesses, Segundo de Leon
(stet. notes, pp. 21-22) and Eduardo Cuaycong, (stet. notes, pp. 27-33) to testify as regards the
use of the Nanca-Victorias road. Several other witnesses testified on behalf of plaintiffs, but their
testimony relates to the Dacuman Toreno road, which is not involved in this appeal. We have
carefully read the testimony of the witnesses Leon and Cuaycong, given upon their direct and
cross examination, but we have been unable to find that either of them has testified that the road
in question was ever used by the public in general. These witnesses testified with regard to the
use of the road by the present and former owners and occupants of the estates of Bacayan,
Esperanza, Alcaigan, Pusot, and Dolores for the transportation of the products of these estates
to the town of Victorias, and of supplies and agricultural implements from Victorias to the
haciendas, but neither of them testified expressly that any other use had been made of said
road. Nevertheless, it may be reasonably inferred from the testimony of these witnesses that all
persons having occasion to travel between Victorias and the haciendas of Bacayan, Esperanza,
Alacaigan, Pusot, and Dolores, whether or not they were owners, tenants, or employees of said
estates, made use of the road now in dispute, crossing the Hacienda Toreno, and to this limited
extent it may be said that the public made use of the road, but there is nothing in the evidence to
indicate that the so called public use extended beyond this.
Apart from the fact that there is no direct evidence to support the finding of the court concerning
the general public use of the road in dispute, the record contains data strongly tending to show
that when the complaint was filed plaintiffs did not contend that the road was a public highway,
but merely contended that they had acquired by prescription an easement of way across the
Hacienda Toreno. For example, the action is entitled an "action concerning a right of away." (Bill
of Exceptions, pp. 64 and 65.) It is not averred in the complaint that the road in question was
used by the public. On the contrary, it is averred that it was used by the plaintiffs and their
predecessors. The averment in paragraph 8 of the complaint that the plaintiffs have no other
"outlet to a public road" than that which they have been accustomed to used by going across the
defendants' hacienda for the purpose of going to the town of Victorias also shows that when they
commenced this action they had in mind the provisions of articles 564, et seq. of the Civil Code,
which relate to the method of establishing the compulsory easement of way. The owners of an
existing easement, as well as those whose properties are adjacent with a public road, have no
occasion to invoke these provisions of the Code, which relate to the creation of new rights, and
not the enforcement of rights already in existence.
It is true in the opening statement made to the court, counsel for plaintiffs, who was not the same
attorney by whom the complaint was signed, stated that plaintiffs contend that the road in
question is public, but as no evidence was introduced tending to establish this contention
concerning the Nanca Victorias road, counsel for defendants had no occasion to object upon
the ground that such testimony was not relevant to the averments of the complaint. No evidence
was taken to indicate that at any time since the road in question has been in existence any part
of the expense of its upkeep has been defrayed by the general government, the province, or the
municipality. The trial judge said upon this subject:
It is true that whatever repairs were made on the road were made irregularly. The
municipality of Victorias had no funds to devote to the construction and repair of roads,
and the upkeep of the road depending entirely therefore on the initiative of the persons
who used it, was attended to only at such times as repairs were absolutely necessary.
(Bill of Exceptions, p. 49.)
The court also held that it appears from the government grant issued in 1885 to the original
owner of the hacienda adjacent to the Hacienda Toreno on its western boundary, that the
Nanca-Victorias road at that time separated that estate from the Jalbuena Hacienda, and that
these facts constitute "circumstantial evidence that the road was in existence in 1885." We have
examined the document to which the court refers, and we agree that the road in question existed
in 1885; but we do not believe that the document in question proves that the road was public
highway.
Another circumstance established by the evidence, and which is some importance in the
determination of this issue, is that although the defendants closed the Nanca-Victorias road in
the month of February, 1911, and since that time have collected toll from persons passing over it
with carts loaded with sugar, including those belonging to several of the plaintiffs, nothing was
done by them to prevent the continuation of this restriction until December, 1912, when this
action was commenced. It is natural to assume that if plaintiffs had considered that the road in
question was public, they would have protested immediately against the action of the
defendants, and would have either commenced a civil action, as they subsequently did, or would
have brought about a prosecution under section 16 of Act No. 1511.
Upon the evidence taken and admissions contained in the pleadings and those made during the
course of the trial we consider that the following findings are warranted:
1. The town of Victorias has always been the shipping point of the products of the Hacienda
Toreno, and of the haciendas of appellees, as well as the place from which supplies were
brought to those properties.
2. For thirty or forty years before the commencement of the suit a wagon road, herein called the
Nanca-Victorias road, has been in existence, connecting the haciendas of appellees with the
town of Victorias, and this road traverses the property of defendants. Since the removal of the
town of Victorias to a new site the Nanca-Victorias road has been used by appellees in travelling
between their properties and the provincial road which crosses the Hacienda Toreno from east to
west.
3. No public funds have at any time been expended on the construction or upkeep of the Nanca-
Victorias road, but from time to time work has been done on it by the laborers employed by the
present and former owners of the Hacienda Toreno and the haciendas owned by the appellees
and their predecessors in title.
4. The Nanca-Victorias wagon road, including that part of it which crosses the Hacienda Toreno,
has for thirty-five or forty years been used by the appellees and their predecessors in title for the
transportation, by the usual means, of the products of their estates to their shipping points in or
near the town of Victorias, and the transportation to their estates of all supplies required by them,
and has been used by all persons having occasion to travel to and from all or any of the estates
now owned by the appellees.
5. The use of the Nanca-Victorias road in the manner and by the person above mentioned was
permitted without objection by the owners of the Hacienda Toreno until the year 1911, when they
closed it, and began charging a toll of 5 centavos for each cart which passed over the road,
including carts belonging to the appellants, until restrained from continuing to do so by the
preliminary injunction granted in this case.
6. The Nanca-Victorias road constitutes the only outlet from the estates of appellants to the
nearest public road which is the provincial road which crosses the Hacienda Toreno from east to
west.
Upon these facts the questions of law to be decided are:
(a) Is the Nanca-Victorias road a public highway?
(b) If the Nanca-Victoria road, or that part of it which crosses the Hacienda Toreno, is not a
public highway, is it subject to a private easement of way in favor of the appellees?
The defendants are the owners of the Hacienda Toreno under a Torrens title issued in
accordance with the Land Registration Act, conferring to them its absolute ownership, subject
only to the limitations of paragraph four of section 39 of said Act. It is admitted that there is no
annotation on the certificate of title regarding the road here in question, either as a "public road"
or as a "private way established by law," and, therefore, the questions presented by this appeal
are to be determined precisely as they would be had the Hacienda Toreno not been brought
under the operation of the Land Registration Act. The plaintiffs being the owners of the property
in question, the presumption of law is that it is free from any lien or encumbrance whatever, and
the burden therefore rests upon plaintiffs to establish the contrary. As this court said in case of
Fabie vs. Lichauco and the children of Francisco L. Roxas (11 Phil. Rep., 14):
It is settled of law that a property is assumed to be free from all encumbrance unless
the contrary is proved.
There is admittedly no evidence to show that the land occupied by the road here in question was
any time conveyed to the general government or any of its political subdivisions by the present or
any of the former owners of the Hacienda Toreno. There is no evidence, even remotely, tending
to show that the road existed prior to the time when the property now known as the Hacienda
Toreno passed from the State into private ownership. The record fails to disclose any evidence
whatever tending to show that the Government has at any time asserted any right or title in or to
the land occupied by the road, or that it has incurred any expense whatever in its upkeep or
construction. The Civil Code defines as public roads those which are constructed by the State
(art. 339), and as provincial and town roads those "the expense of which is borne by such towns
or provinces." (Civil Code, art. 344.) While it is not contended that this definition is exclusive, it
does show that during the Spanish regime, under normal conditions, roads which were public
were maintained at the public expense, and that the fact that at no time was any expense
incurred by the Government with respect to the road here in question tends strongly to support
the contention of the defendants that it is private way.
During the Spanish regime the law required each able to bodied citizen not within one of the
exempted classes to work a certain number of days in each year, his labor to be devoted to
"services of general utility" to the municipality of his residence. (Royal Decree of July 11, 1883,
art. 5.) Under this Decree and the Regulations for its enforcement (Berriz, vol. 11, 258) the
greater part of the work on the public road of the Islands was accomplished. Had the road here
in question been a public way, it is reasonable to assume that the polistas of the town of
Victorias would have been employed in maintaining it. It is most significant that no mention is
made in the testimony of the plaintiffs' witnesses of any work of this character having been done
on the road at any time, particularly in view of the fact that their attention was drawn to this point.
(Stet. note, pp. 8, 10, 11, 12, 13 and 14.)
The evidence shows that the repairs were made by the owners of the estates benefited by the
road, and by their laborers, as a pure voluntary act for their own convenience and interest. There
being no evidence of a direct grant to the government of the land occupied by the road in
question or that any Government funds or labor were expended upon it, the question presents
itself whether the use to which the road has been put was such as to justify the conclusion of the
lower court that it has become public property. There being no evidence that the original use of
the road by plaintiffs' predecessors was based upon any grant of the fee to the road or of an
easement of way, or that it began under the assertion of a right on their part, the presumption
must be that the origin of the use was the mere tolerance or license of the owners of the estates
affected.
This being so, has that merely permissive use been converted into a title vested in the public at
large, or in the plaintiffs by reason of their ownership of the land beneficially affected by the use?
Had it been shown that the road had been maintained at the public expense, with the
acquiescence of the owners of the estates crossed by it, this would indicate such adverse
possession by the government as in course of time would ripen into title or warrant the
presumption of a grant or of a dedication. But in this case there is no such evidence, and the
claims of plaintiffs, whether regarded as members of the public asserting a right to use the road
as such, or as persons claiming a private easement of way over the land of another must be
regarded as resting upon the mere fact of user.
If the owner of a tract of land, to accommodate his neighbors or the public in general, permits
them to cross his property, it is reasonable to suppose that it is not his intention, in so doing, to
divest himself of the ownership of the land so used, or to establish an easement upon it and that
the persons to whom such permission, tacit or express, is granted, do not regard their privilege
of use as being based upon an essentially revocable license. If the use continues for a long
period of time, no change being made in the relations of the parties by any express or implied
agreement, does the owner of the property affected lose his right of revocation? Or, putting the
same question in another form, does the mere permissive use ripen into title by prescription?
It is a fundamental principle of the law in this jurisdiction concerning the possession of real
property that such possession is not affected by acts of a possessory character which are
"merely tolerated" by the possessor, or which are due to his license (Civil Code, arts. 444 and
1942). This principle is applicable not only with respect to the prescription of the dominium as a
whole, but to the prescription of right in rem. In the case of Cortes vs. Palanca Yu Tibo (2 Phil.
Rep., 24, 38), the Court said:
The provision of article 1942 of the Civil Code to the effect that acts which are merely
tolerated produce no effect with respect to possession is applicable as much to the
prescription of real rights as to the prescription of the fee, it being a glaring and self-
evident error to affirm the contrary, as does the appellant in his motion papers.
Possession is the fundamental basis of the prescription. Without it no kind of
prescription is possible, not even the extraordinary. Consequently, if acts of mere
tolerance produce no effect with respect to possession, as that article provides, in
conformity with article 444 of the same Code, it is evident that they can produce no
effect with respect to prescription, whether ordinary or extraordinary. This is true
whether the prescriptive acquisition be of a fee or of real rights, for the same reason
holds in one and the other case; that is, that there has been no true possession in the
 legal sense of the word. (See also Ayala de Roxas vs. Maglonso, 8 Phil Rep., 745;
Municipality of Nueva Caceres vs. Director of Lands and Roman Catholic Bishop of
Nueva Caceres, 24 Phil. Rep., 485.)
Possession, under the Civil Code, to constitute the foundation of a prescriptive right, must be
possession under claim of title (en concepto de dueno), or use the common law equivalent of the
term, it must be adverse. Acts of a possessory character performed by one who holds by mere
tolerance of the owner are clearly not en concepto de dueo, and such possessory acts, no
matter how long so continued, do not start the running of the period of prescription.
A similar question was presented in the case of the Roman Catholic Archbishop of Manila vs.
Roxas (22 Phil. Rep., 450), in which case it appeared that Roxas, the owner of the Hacienda de
San Pedro Macati, claimed a right of way across the property of the church to Calle Tejeron, a
public street of the town of San Pedro Macati. The proof showed that the road in question had
been used by the tenants of the Hacienda de San Pedro Macati for the passage of carts in
coming and leaving the hacienda "from time immemorial," and further that the road had been
used for time out of mind, not only by the tenants of the hacienda but by many other people in
going and coming from a church half-way between the boundary line of the hacienda and Calle
Tejeron. The court held that the facts did not give rise to a prescriptive right of easement in favor
of the owner of the hacienda, upon the ground that such use "is to be regarded as permissive
and under an implied license, and not adverse. Such a use is not inconsistent with the only use
which the proprietor thought fit to make of the land, and until the appellee thinks proper to inclose
it, such use is not adverse and will not preclude it from enclosing the land when other views of its
interest render it proper to do so. And though an adjacent proprietor may make such use of the
open land more frequently than another, yet the same rule will apply unless there be some
decisive act indicating a separate and exclusive use under a claim of right. A different doctrine
would have a tendency to destroy all neighborhood accommodations in the way of travel; for if it
were once understood that a man, by allowing his neighbor to pass through his farm without
objection over the pass-way which he used himself, would thereby, after the lapse of time, confer
a right on such neighbor to require the pass-way to be kept open for his benefit and enjoyment, a
prohibition against all such travel would immediately ensue."
The decisions of the supreme court of Louisiana, a State whose jurisdiction is based, as is our
own, upon the Roman Law, and whose Civil Code is taken, as is our own,. very largely from the
Code of Napoleon, are particularly persuasive in matters of this character. In the case of Torres
vs. Fargoust (37 La. Ann., 497), cited by appellants in their brief, in which the issues were very
similar to those of the present case, the court held that
The mere fact that for thirty or forty years the public was permitted to pass over this
ground would not of itself constitute the place a locus publicus . . . dedication must be
shown by evidence so conclusive as to exclude all idea of private ownership; . . . such
dedication cannot be inferred from ere user alone; . . . no one is presumed to give
away his property. The burden is on him who avers a divestiture of ownership to prove
it clearly.
We are, therefore, of the opinion, and so hold, that upon the facts established by the evidence it
does not appear that the road in question is a public road or way. We are also of the opinion that
plaintiffs have failed to show that they have acquired by prescription a private right of passage
over the lands of defendants. The supreme court of Spain has decided that under the law in
force before the enactment of the Civil Code, the easement of way was discontinous, and that
while such an easement might be acquired by prescription, it must be used in good faith, in the
belief of the existence of the right, and such user must have been continuous from time
immemorial. (Judgment of December 15, 1882.) In the appealed decision the court below says
that the plaintiffs and their predecessors made use of the road in question "from time
immemorial," but there is no evidence whatever in the record to sup[port this finding, although it
is true that the evidence shows the existence of the road and its use by the plaintiffs and their
predecessors for thirty-five or forty years. Speaking of the evidence required under the present
Code of Civil Procedure to show immemorial use of an easement, this court said in the case of
Ayal de Roxas vs. Case (8 Phil. Rep., 197, 198):
Third Partida in title 31, law 15 . . . says that discontinues servitudes . . . must be
proved by usage or a term so long that men can not remember its commencement. . . .
In many judgments the supreme court of Spain has refused to accept proof of any
definite number of years as a satisfaction of this requirement of the law. . . . We are of
the opinion that in order to establish a right of prescription [title of prescription based
upon use from time immemorial] something more required than memory of living
witnesses. Whether this something should be the declaration of persons long dead,
repeated by those who testify, as exacted by the Spanish law, or should be the
common reputation of ownership recognized by the Code of Procedure, it is
unnecessary for us to decide. On either theory the appellant has failed in his proof . . . .
The same thing may be said in this case. Witnesses have testified that they have known the road
for a certain period of years, beginning at a time prior to the enactment of the Civil Code, but no
evidence has been made to prove immemorial use by either of the means of proof mentioned in
this decision cited, nor is immemorial user averred in the complaint as the basis of the right. It is
evident, therefore, that no vested right by user from time immemorial had been acquired by
plaintiffs at the time the Civil Code took effect. Under that Code (art 539) no discontinuous
easement could be acquired by prescription in any event. Assuming, without deciding, that this
rule has been changed by the provisions of the present Code of Civil Procedure relating to
prescription, and that since its enactment discontinuous easement may be required by
prescription, it is clear that this would not avail plaintiffs. The Code of Civil Procedure went into
effect on October 1, 1901. The term of prescription for the acquisition of rights in real estate is
fixed by the Code (sec. 41) at ten years. The evidence shows that in February, 1911, before the
expiration of the term of ten years since the time the Code of Civil Procedure took effect, the
defendants interrupted the use of the road by the plaintiffs by constructing and maintaining a toll
gate on it and collecting toll from persons making use of it with carts and continued to do so until
they were enjoined by the granting of the preliminary injunction by the trial court in December,
1912. Our conclusion is, therefore, that the plaintiffs have not acquired by prescription a right to
an easement of way over the defendant's property; that their use of the Nanca-Victorias road
across the Hacienda Toreno was due merely to the tacit license and tolerance of the defendants
and their predecessors in title; that license was essentially revokable; and that, therefore, the
defendants were within their rights when they closed the road in 1911.
While in the allegations from the plaintiffs' complaint it might be inferred that it was their purpose
to seek to impose upon the defendants the easement to which arts. 564 et seq. of the Civil Code
relate, that purpose was evidently abandoned, and the case was tried upon a wholly different
theory. Proof was offered to show that the right of passage across defendants' land is necessary
to enable plaintiffs to get their products to market, but there was no offer on their part to pay
defendants the indemnity required by section 564.
For the reasons stated the judgment of the court below is reversed, the injunction issued against
defendants is allowed on this appeal. So ordered.
PEREGRINA ASTUDILLO, petitioner-appellant,
vs.
THE BOARD OF DIRECTORS OF PEOPLE'S HOMESITE AND HOUSING CORPORATION,
RAMON P. MITRA, SALUD O. MITRA, and REGISTER OF DEEDS, QUEZON
CITY, respondents-appellees.
Jose Villa Agustin for petitioner-appellant.
San Juan, Africa, Gonzales & San Agustin for appellees Mitras.
Manuel L. Lazaro & Leonardo A. Reyes, Gov't. Corp. Counsel's Office for appellee Board of
Director of the PHHC.
AQUlNO, J.:t.hqw of the law, the award to Mitra did not prejudice her since she was bereft of any rights over the
Peregrina Astudillo appealed from the "resolution" dated April 18, 1967 of the Court of First
Instance of Rizal, Quezon City Branch V, granting the motion for summary judgment filed by
Ramon P. Mitra and dismissing her petition for certiorari and mandamus (Civil Case No. Q-
8741).
According to the pleadings of respondents Mitra and the People's Homesite and Housing
Corporation (PHHC) *, Mitra on December 28, 1957 applied, in behalf of his minor son, Ramon
Mitra Ocampo, for the purchase of Lot 16, Block E-155 of the East Avenue Subdivision of the
PHHC in Piahan, Quezon City.
His application was approved on January 3, 1958. He made a downpayment of P840, an amount
equivalent to ten percent of the price of the lot. On September 9, 1961 the PHHC and Mitra
executed a contract of conditional sale. After Mitra had paid in full the price, which totalled more
than nine thousand pesos, a final deed of sale was executed in his favor on February 18, 1965.
Transfer Certificate of Title No. 89875 was issued to him on March 1, 1965.
The lot in question is acqually in the possession of Peregrina Astudillo. She constructed thereon
a residential house (a shanty, according to Mitra). She admits that she has been squatting on the
said lot "uninterruptedly since 1957 up to the present" (p. 52, Record). She filed with the
administrative investigating committee of the PHHC a request dated February 24, 1963, praying
for the cancellation of the award of Lot 16 to Congressman Mitra and asking the committee to
recommend that it be re-awarded to her. No action was taken on that request.
On May 3, 1965 Peregrina filed in the lower court her aforementioned petition against the PHHC
board of directors, the register of deeds of Quezon City and the spouses Ramon P. Mitra and
Salud O. Mitra. She questioned the legality of the award of Lot 16 to Mitra. She asked that Lot 16
be sold to her.
After the respondents had filed their answers, the Mitra spouses filed a verified motion for
summary judgment. They assumed that there was no genuine issue as to any material fact.
Peregrina Astudillo opposed the motion. The parties submitted memoranda.
The lower court treated the motion for summary judgment as a motion to dismiss. It dismissed
Peregrina's petition on the grounds that she is a mala fide squatter and that the sale of Lot 16 to
Mitra cannot be assailed by means of certiorari and mandamus. Peregrina appealed to this
Court.
Her four assignments of error raise questions of law. She contends that the lower court erred in
holding that certiorari and mandamus do not lie in this case and that she has no right to question
the award to Mitra, and in not holding that the award of Lot 16 to him was in contravention of the
Anti-Graft and Corrupt Practice Law and of the constitutional provision that a Senator or
Representative should not directly or indirectly be financially interested in any contract with the
government of any subdivision or instrumentality thereof during his term of office.
In the ultimate analysis the issue is whether Peregrina Astudillo has a cause of action to annul
the sale of Lot 16 to Mitra and to compel the PHHC board to award that lot to her.
We hold that she has no cause of action to impugn the award to Mitra and to require that she be
allowed to purchase the lot. As a squatter, she has no possessory rights over Lot 16. In the eyes
said lot which could have been impaired by that award (Baez vs. Court of Appeals, L-30351,
September 11, 1974, 59 SCRA 15, 22).
The record does not show, and Peregrina does not claim, that she is a member of the Piahan
Homeowners Association some of whose members are "deserving squatters" (Kempis vs.
Gonzales, L-31701, October 31, 1974, 60 SCRA 439).
In the familiar language of procedure, she was not entitled to sue Mitra and the PHHC for the
enforcement or protection of a right, or the prevention of a wrong. Those respondents did not
commit any delict or wrong in violation of her rights because, in the first place, she has no right to
the lot. Not being principally or subsidiarily bound in the contract of sale between Mitra and the
PHHC, she is not entitled to ask for its annulment (Art. 1397, Civil Code).
Peregrina invokes the PHHC charter (erroneously referred to as section 11 of Commonwealth
Act No. 648) which provides that the PHHC should acquire buildings so as to provide "decent
housing for those who may be unable otherwise to provide themselves therewith" and that it
should acquire large estates for their resale to bona fide occupants.
Those provisions do not sustain her action in this case. They do not justify her act of squatting on
a government-owned lot and then demanding that the lot be sold her because she does not yet
own a residential lot and house. She is not a bona fide occupant of Lot 16.
The State is committed to promote social justice and to maintain adequate social services in the
field of housing (Secs. 6 and 7, Art. II, New Constitution). But the State's solicitude for the
destitute and the have-nots does not mean that it should tolerate usurpations of property, public
or private.
"In carrying out its social readjustment policies, the government could not simply lay aside moral
standards, and aim to favor usurpers, squatters, and intruders, unmindful of the lawful and
unlawful origin and character of their occupancy. Such a Policy would perpetuate conflicts
instead of attaining their just solution" (Bernardo vs. Bernards, 96 Phil. 202, 206).
Indeed, the government has enunciated a militant policy against squatters. Thus, Letter of
Instruction No. 19 dated October 2, 1972 orders city and district engineers "to remove all illegal
constructions, including buildings ... and those built without permits on public or private property"
and provides for the relocation of squatters (68 O.G. 7962. See Letter of Instruction No. 19-A).
As noted by Justice Sanchez, "since the last global war, squatting on another's property in this
country has become a widespread vice" (City of Manila vs. Garcia, L-26053, February 21, 1967,
19 SCRA 413, 418).
for certain lots in favor of the petitioner was denied. Generally, title to property cannot be litigated
in a mandamus proceeding (City of Manila vs. Posadas, 48 Phil. 309, 337).
It is not a ministerial duty of the PHHC board to award Lot 16 to Peregrina. Anyway, it has
already been shown that as a squatter she is not clothed with any right to Lot 16 that may be
enforced in a court of justice.

The PHHC board completely ignored the alleged demands of Peregrina for the purchase of Lot
The lower court did not err in holding that Peregrina Astudillo cannot use the special civil actions 16. It did not render any decision against her. Its inaction cannot be assailed by certiorari
of certiorari and mandamus to secure a judicial review of the award of Lot 16 to Mitra. Rule 65 of or mandamus.
the Rules of Court provides: +.wph!1

SECTION 1. Petition for certiorari. When any tribunal, board, or officer
exercising judicial functions, has acted without or in excess of its or his
jurisdiction, or with grave abuse of discretion and there is no appeal, nor any
plain, speedy, and adequate remedy in the ordinary course of law, a person
aggrieved thereby may file a verified petition in the proper court alleging the
facts with certainty and praying that judgment be rendered annulling or
modifying the proceedings, as the law requires, of such tribunal, board or
officer.
The petition shall be accompanied by a certified true copy of the judgment or
order subject thereof, together with copies of all pleadings and documents
relevant and pertinent thereto.
SEC. 3. Petition for mandamus. When any tribunal, corporation, board, or
person unlawfully neglects the performance of an act which the law
specifically enjoins as a duty resulting from an office, trust, or station, or
unlawfully excludes another from the use and enjoyment of a right or office to
which such other is entitled, and there is no other plain, speedy and adequate
remedy in the ordinary course of law, the person agrieved thereby may file a
verified petition in the proper court alleging the facts with certainty and
praying that judgment be rendered commanding the defendant, immediately
or at some other specified time, to do the act required to be done to protect
the rights of the petitioner, and to pay the damages sustained by the
petitioner by reason of the wrongful acts of the defendant.
Peregrina's other assignment of error is that the award of Lot 16 to Congressman Mitra was a
violation of section 3(h) of the Anti-Graft and Corrupt Practices Law and of section 17, Article VI
of the 1935 Constitution, now section 11, Article VIII of the new Constitution.
On the other hand, Mitra contends that the PHHC performs proprietary functions. He observed
that the following high-ranking officials were awarded PHHC lots: Felixberto Serrano, Dominador
Antonio, Manuel Lim, Fernando Lopez, Pacita M. Gonzales, Genaro Magsaysay, Daniel
Romualdez, Felipe A. Abrigo, Bartolome Cabangbang, Juan Duran, Manuel Enverga, Angel
Fernandez, Jose Nuguid, Antonio de Pio, Lorenzo Teves, Faustino Tobia, Pedro Trono,
Marcelino Veloso and Valeriano Yancha.
We are of the opinion that that assignment of error need not be resolved in this case. Having
shown that Peregrina has no cause of action to assail the award of Lot 16 to Mitra, it follows that
in this particular case she cannot assail that award by invoking the provisions of the Anti-Graft
and Corrupt Practices Law and the Constitution. This is not the proper forum for the ventilation of
that question. (See Commonwealth Act No. 626; Hernandez vs. Albano, 112 Phil. 506; Solidum
and Concepcion, Jr. vs. Hernandez, 117 Phil. 335).
WHEREFORE, the lower court's order of dismissal is affirmed. No costs.
SO ORDERED.

Respondent PHHC board is not the board contemplated in section 1 of Rule 65. It does not
exercise judicial functions. The award being questioned was a routinary corporate act that was
within the board's competence. No jurisdictional issue was involved in that award. certiorari lies
only for the correction of jurisdictional errors (Gov't. of the P.I. vs. Judge of 1st Instance of Iloilo
34 Phil 157, 159).

Nor is the relief sought by Peregrina Astudillo, which is to compel the PHHC board to cancel the
award of Lot 16 to Mitra and to resell it to her, a right that can be enforced by mandamus. What
she wants is to force the PHHC to execute a contract of sale in her favor. That is not within the
purview of the writ of mandamus.

Thus, it was held that "the writ of mandamus is not an appropriate or even admissible remedy to
enforce, the performance of a private contract which has not been fully performed by either
party" (Quiogue vs. Romualdez, 46 Phil. 337). In Jacinto vs. Director of Lands, 49 Phil. 853, a
petition for a writ of mandamus to compel the Director of Lands to execute a deed of conveyance
G.R. No. L-57259 October 13, 1983
ANGEL P. PERAN, petitioner,
vs.
THE HONORABLE PRESIDING JUDGE, BRANCH II, COURT OF FIRST INSTANCE OF
SORSOGON, 10th JUDICIAL DISTRICT, RAMON ESPERA and ENCARNACION
EVASCO, as private-respondents, respondents.
Irene P. Escandor for petitioner.
Esteban Escalante, Jr. for private respondents.
MELENCIO-HERRERA, J.:
The decision of the then Court of First Instance of Sorsogon, Branch II, Gubat, Sorsogon,
rendered in the exercise of its appellate jurisdiction, dismissing Civil Case No. 1277, entitled
"Angel P. Peran vs. Encarnacion Evasco, et al.", for Forcible Entry and Illegal Detainer, is being
assailed in this Petition for Review on certiorari on a question of law. Said Decision reversed the
judgment of the 2nd Municipal Circuit Court of Bulusan-Barcelona, Sorsogon, for Forcible Entry
& Illegal Detainer.
The antecedent facts follow:
The property in question, an unregistered residential land, with an area of 1,225 square meters
more or less, situated at Tagdon Barcelona, Sorsogon, was originally owned by Jose Evasco.
On December 29, 1950, Jose Evasco executed a "Reparticion Ex-trajudicial" whereby he
partitioned his properties among his five heirs. 1 Subject property was one of those alloted to his
son, Alejandro Evasco, who had it surveyed in 1956 (Exhibits "I" and "I-1") who had it declared in
his name under Tax Declaration No. 1900. The other heirs received their own shares, one of
them, the deceased Anacleto Evasco, one of whose children was listed as Encarnacion,
possibly, the principal private respondent herein.
Alejandro Evasco sold his property to Jose E. Torella on December 31, 1972, 2 who declared it
for taxation purposes under Tax Declaration No. 5157. 3 On July 10, 1977, Jose E. Torella, in
turn, sold the land to Jose Enriquez Sabater, 4 and the latter also declared the property in his
name under Tax Declaration No. 7127. 5 Petitioner Angel P. Peran acquired the land by
purchase from Jose Enriquez Sabater on December 27, 1978, 6 and subsequently declared it,
too, in his name under Tax Declaration No. 7310. 7 The sale was duly recorded in the Register of
Deeds' Office of the province of Sorsogon on January 3, 1979 in accordance with the provisions
of Sec. 194 of the Revised Administrative Code as amended by Act No. 3344.
Sometime in January 1979, petitioner personally asked private respondents, Encarnacion
Evasco and her common-law husband Ramon Espera, whose house is erected on a 440 square
meter portion (44 sq, ms. according to petitioner) of the lot in question, to remove the same and
vacate the premises. Respondents refused, and consequently, a confrontation between the
parties was had before the, Municipal Mayor of Barcelona and later before the Municipal Judge
of Bulusan-Barcelona to settle the dispute, but to no avail.
On February 8, 1979, petitioner filed a complaint for Forcible Entry and Illegal Detainer against
private respondents before the 2nd Municipal Circuit Court of Bulusan-Barcelona, seeking the
ejectment of the latter from the portion in question contending that respondents are mere
squatters thereon; that they had prevented plaintiff from entering the property and deprived him
of possession; and that they were tolerating persons in getting soil and bringing about a gradual
erosion of the land to his extreme prejudice.
Private respondents answered denying the material allegations of the Complaint, and alleging
that they are the lawful possessors for more than twenty (20) years of the said portion, which
formerly belonged to Jose Evasco, grandfather of Encarnacion Evasco and that petitioner has no
right to eject them therefrom.
On September 1, 1979, the 2nd Municipal Circuit Court of Bulusan-Barcelona rendered its
Decision ordering private respondents to vacate the lot in question, return its possession to
petitioner, reimburse him attorney's fees of P300.00 and litigation expenses, and to pay the
costs. Reconsideration of the said decision filed by private respondents was denied by said
Court on November 12, 1979. Private respondents appealed to respondent Court of First
Instance of Sorsogon, Branch II.
Respondent Court reversed the Municipal Circuit Court and dismissed the case on March 28,
1980, ruling that said Court had no jurisdiction over the case as the same was filed only on
February 4, (8), 1979, which was well beyond the one-year-period of limitation, the cause of
action having accrued from the sale of the property by Alejandro Evasco to Jose E. Torella on
December 31, 1972; and that since the only issue in an illegal detainer case is physical
possession, "whoever has prior possession, no matter in what character, is protected by law."
Reconsideration of the said Decision sought by petitioner was denied by respondent Court.
Petitioner appealed said judgment directly to this Tribunal on a question of law, raising as the
lone issue:
... whether the respondent court was in error when for purposes of
determining the jurisdiction of the 2nd Municipal Circuit Court of Bulusan-
Barcelona, to try Civil Case No. 1227, for Illegal Detainer:
(a) it reckoned the counting of one-year period within which to file the action
from the sale of the property in question by Alejandro Evasco to Jose Torella
on December 31, 1972 and not from the date of demand made by the
petitioner upon the respondents; and
(b) by assuming that "prior possession in whatever character is protected by
law.
We rule for petitioner.
Private respondents admit that the land in question was originally owned by Jose Evasco. The
tax declarations covering their house clearly state "house built on land owned by Jose Evasco
under Tax No. 1599". 8 Since the land had been partitioned to Alejandro Evasco by his father,
Jose Evasco, respondent Encarnacion can lay no claim to the property even as a grand-
daughter of Jose Evasco. Respondents may have been in possession of the portion they occupy
prior to petitioner but they have not proved their title thereto, nor their right to possess the same.
As the 2nd Municipal Circuit Court of Bulusan-Barcelona found, no concrete evidence was
introduced by respondents on this point. Moreover, it is noteworthy that the validity of the
"Reparticion Extrajudicial" whereby said lot was adjudicated to Alejandro Evasco by his father
Jose Evasco, predecessors-in-interest of petitioner, had never been challenged.

If at all, private respondents' possession of their portion of the property was by mere tolerance of
petitioner's predecessors-in-interest, which, however, does not vest in them a right which they
can assert against petitioner. Possession by tolerance is lawful but this becomes illegal when,
upon demand to vacate by the owner, the possessor refuses to comply with such demand. 9 A
possessor by tolerance is necessarily bound by an implied promise to vacate upon demand,
failing which a summary action for ejectment is the proper remedy against him. 10It is not
necessary that there be a formal agreement or contract of lease before an unlawful detainer suit
may be filed against a possessor by tolerance. 11 Neither is prior physical possession of the
property by petitioner an indispensable requisite. 12 The ruling of respondent Court, therefore,
that "since the only issue in forcible entry and illegal detainer action is the physical possession of
real propertypossession de facto and n t possession de jurewhoever has prior possession,
no matter in what character, is protected by law," is erroneous under the factual milieu herein,

A Forcible Entry and Unlawful Detainer action must be brought within one year from the unlawful
deprivation or withholding of possession. 13 The one-year-period of limitation commences from
the time of demand to vacate, and when several demands are made, the same is counted from
the last letter of demand. 14 Demand may either be personal or in writing. 15 The demand to
vacate having been made by petitioner in January 1979, and the ejectment suit having been
instituted on February 8, 1979, the 2nd Municipal Circuit Court of Bulusan-Barcelona acted well
within its jurisdiction in taking cognizance of the case.

WHEREFORE, the assailed Decision of respondent Court of First Instance of Sorsogon, Branch
II, in Civil Case No.1227, is SET ASIDE, and the Decision of the 2nd Municipal Circuit Court of
Bulusan-Barcelona is hereby reinstated,

Costs against private respondents.

SO ORDERED.
 [G.R. No. L-35833. June 29, 1984.]
SUSANA DE LA CERNA LAINGO, TEODORO DACUYAN, ELENA DACUYAN and
SAMSON DACUYAN, Petitioners, v. DAMIAN CAMILO and/or JUAN
MAGALLANES, Respondents.
Isidro M. Ampig, for Petitioners.
Gonzalo G. Latorilla, Kimpo & Kimpo for Respondents.
SYLLABUS
1. REMEDIAL LAW; JUDGMENTS; EXECUTION THEREOF; MUST CONFORM TO FINAL
JUDGMENT; CASE AT BAR. A reading of the decision and its background facts
shows that the controversy litigated and passed upon by the Court of Appeals was
confined to the ownership of seven (7) hectares of land which form part of the
twenty two (22) hectares parcel of land covered by a torrens title in the name of the
petitioners. The Court of Appeals ruled that the respondents are entitled to seven
(7) hectares of the property but not necessarily the seven (7) hectares possessed by
them. They are entitled to co-possession with appellees until the undivided seven
(7) hectares are definitely segregated through partition. We agree with the
petitioners that the execution ordered by the Court of First Instance allowing
respondents to enjoy possession over the entire twenty-two (22) hectares with the
petitioners, did not conform to the final judgment being executed. We, therefore,
rule that the co-possession mentioned in the Court of Appeals judgment refers to
the right of the respondents, already certain and vested but not yet specific, over
the seven (7) hectares of the property in effect ranging but not specific over the
entire property. However, in the meantime that the partition is not effected and the
boundaries of the seven (7) hectares not spelled out, the respondents shall continue
to possess the seven (7) hectares they have held since the litigated sale and enjoy
all its fruits. They will have no share of the fruits of the other fifteen (15) hectares
nor its enjoyment but neither shall the petitioners have any share in the fruits or
enjoyment of the seven (7) hectares held by the respondents. It would be in the
interests of all concerned if the partition of the property among the heirs is effected
immediately and the respondents are finally given their definite seven (7) hectares
as provided in the appellate judgment.
DECISION
GUTIERREZ, JR., J.:
The issue raised in this petition is whether or not the execution ordered by the
respondent court conforms to the final judgment embodied in the decision of the
Court of Appeals in CA-G.R. No. 43920-R.
The petitioners filed a complaint as plaintiffs in Civil Case No. 5438 of the Court of
First Instance of Davao to recover a seven hectare portion of a twenty-two hectare
parcel of land in Malita, Davao.
The disputed property is part of a homestead applied for by Gaudencio Dacuyan
married to Susana de la Cerna and awarded in 1934 to the "heirs of Gaudencio
Dacuyan" because the applicant had died in the meantime. The title was registered
in October, 1934. In 1942, the widow Susana de la Cerna describing herself as "half
owner of the conjugal property" sold seven (7) hectares of the land to Damian
Camilo, respondent in this case. Camilo, in turn, sold the land in 1966 to the other
respondent, Juan Magallanes.
The dispositive portion of the decision in the reivindicacion case
states:jgc:chanrobles.com.ph
"WHEREFORE, judgment is hereby rendered:jgc:chanrobles.com.ph
"1. Dismissing the Complaint;
"2. Divesting the plaintiffs of ownership over seven hectares of the southern side of
the land covered by Original Certificate of Title No. 1175 of the Register of Deeds of
Davao, more particularly, the portion described in the deed of sale executed by
Susana Cerna de Laingo on November 20, 1972, in the presence of Jorge Agonias
and Juan Magallanes and acknowledged before Atty. Ramon M. Kimpo, and the
accompanying sketch marked as Exhibits 1 and 1-A, respectively and vesting the
same in Juan A. Magallanes, Filipino, married to Fedilina Neri, Filipino, and residing
at Malita, Davao;
"3. Directing the plaintiffs to allow Juan Magallanes to have the aforesaid land
surveyed; and,
"4. Sentencing the plaintiffs jointly and severally to pay the defendants P3,000.00
as attorneys fees, with costs."cralaw virtua1aw library
Upon appeal by the petitioners, however, the Court of Appeals modified the lower
courts decision. The dispositive portion of the appellate decision
reads:jgc:chanrobles.com.ph
"IN VIEW WHEREOF, this Court is constrained to modify as it now modifies the
judgment appealed from: the sale to appellees is held to be valid only as to an
undivided seven (7) hectares not of the specific portion now litigated; appellants are
entitled to co-possession thereof with appellees until the undivided seven (7)
hectares to which appellees are entitled are definitely segregated thru partition; the
adjudication of attorneys fee is set aside; no more pronouncement as to
cost."cralaw virtua1aw library
After the judgment of the Court of Appeals had become final and executory, the
petitioners filed the necessary motion with the Court of First Instance of Davao to
issue a writ of execution placing them in co-possession with the private respondents
of the seven (7) hectares being litigated.
The private respondents filed a counter motion for the issuance of a writ of
execution praying that the petitioners be ordered to execute a project of partition
among the heirs and while doing so, segregate the seven (7) hectares purchased
and possessed by them from the date of the document of sale. The petitioners,
however, opposed the counter motion emphasizing that the execution of judgment
referred to an action for recovery of possession of a specific seven (7) hectares of
land and not to an action for partition of property.
The respondents countered with a rejoinder which admitted that the judgment,
while ambiguous, confirmed their rights over seven (7) hectares of land sold to
them. Since they have been in possession of a specific seven (7) hectares of land on
which they planted coconuts already bearing fruits, the most equitable execution
according to them was for those seven (7) hectares to be the seven hectares
adjudged in the decision.
The Court of First Instance decided the matter by issuing a writ of execution
allowing the respondents to enjoy possession over the entire twenty-two (22)
hectares with the petitioners. The questioned order, the second paragraph of which
is assailed in this petition reads:jgc:chanrobles.com.ph
"On motion of the plaintiffs, through Atty. Ampig, and without objection of Atty.
Latorilla, counsel for the defendant, let a writ of possession issue with respect to the
seven (7) hectares, subject matter of the suit, by allowing the plaintiffs to enjoy
with the defendants possession of the same.
"On oral motion of Atty. Latorilla, let a writ of possession issue with respect to the
remainder of the twenty-two (22) hectares by allowing the defendants to enjoy with
the plaintiffs possession of the rest of the twenty-two (22) hectares.
SO ORDERED."cralaw virtua1aw library
Two motions for reconsideration having been denied, the petitioners raised the case
to us directly on a pure legal issue which they state as follows:chanrob1es virtual
1aw library
THE COURT A QUO OR THE RESPONDENT JUDGE ERRED IN ORDERING THE
ISSUANCE OF A WRIT OF POSSESSION WITH RESPECT TO THE REMAINDER OF THE
TWENTY TWO (22) HECTARES BY ALLOWING THE DEFENDANTS TO ENJOY WITH
THE PLAINTIFFS POSSESSION OF THE REST OF THE TWENTY TWO (22) HECTARES
AND IN DENYING THE TWO ((2) MOTIONS FOR RECONSIDERATION OF THE SAID
ORDER.
The reasons given by the Court of Appeals for not granting undisputed ownership of
the seven (7) hectares already possessed by the respondents are:chanrob1es virtual
1aw library
x x x v. Alo, et al, 91 Phil. 750 [1952]; Robles v. Timario, Et Al., 107 Phil. 809 [1960];
"3. CONSIDERING: Now, as to this that while it is true that the Land Tax Declaration
in the name of the heirs of Gaudencio Dacuyan Exh. 3 was afterwards cancelled and
reduced from its area of 22 hectares to 15 hectares under Exh. 3-A the remaining
seven (7) hectares coming to be declared in the name of the buyer Camilo Damian
under Exh. 5-A, 5-B, 5-C and 5-D, yet a scrutiny of these documents would not
show any participation of the other children of Gaudencio and Susana namely
Teodoro, Elena and Samson the co-plaintiffs in this case not even any proof that
they were informed of the sale; neither is there any evidence present in the record
positive in character that they had ever consented to a physical segregation of the
seven (7) hectare portion sold by Susana unto Camilo so that the point of laches is
without any basis; it is true that Camilo and afterwards in 1966 his successor-in-
interest Juan Magallanes had been in possession apparently exclusive since the sale
to Camilo in 1942 under Exh. 1 but the trouble is that exclusive possession by a co-
owner cannot give rise to prescription; the law has always been to the effect that
between co-owners prescription cannot run, Cortez v. Oliva, 33 Phil. 480 and in
order for prescription to run between themselves the repudiation of co-ownership
must be clearly manifested which is not at all the case here bearing in mind the
undisputed fact that Camilo Damian did not even attempt to register Exh. 1 nor
notify said other children of Gaudencio Dacuyan and tell them he was claiming the
seven (7) hectare portion as solely his own; and neither should it be overlooked that
the title being a Torrens title it cannot be the subject matter of prescription; this will
mean that notwithstanding the possession apparently exclusive of Camilo Damian
for more than twenty (20) years over the seven (7) hectare portion, he cannot
under the law be permitted to claim absolute ownership therein; and as a corollary
neither can his successor-in-interest Juan Magallanes but since Susana was entitled
to at least 11 hectares; therefore her sale of seven (7) hectares if undivided would
have been valid, but a sale by her of this specific portion litigated could not bind her
co-plaintiffs; and this being the final result the adjudication of attorneys fees must
have to be discarded;
"x x x
The judgment of the Court of Appeals, with the foregoing reasons for a seemingly
ambiguous judgment calling for a future segregation of seven (7) hectares out of
the twenty-two (22) hectares, has long become final and executory.
We agree with the petitioners that the execution ordered by the court of first
instance did not conform to the final judgment being executed.
We stated in Phil-American Accident Insurance Co., Inc. (97 SCRA 811)
"The questioned Order cannot be sustained. The judgment which was sought to be
executed ordered the payment of simple `legal interest only. It said nothing about
the payment of compound interest. Accordingly, when the respondent judge ordered
the payment of compound interest he went beyond the confines of his own
judgment which had been affirmed by the Court of Appeals and which had become
final. Fundamental is the rule that execution must conform to that ordained or
decreed in the dispositive part of the decision. Likewise, a court can not, except for
clerical errors or omissions, amend & judgment that has become final. (Jaob, Et. Al.
Collector of Internal Revenue v. Gutierrez, Et Al., 108 Phil. 215 [1960]; Ablaza v.
Sycip, Et Al., 110 Phil. 4 [1960].) (Emphasis supplied).
At the same time, the mode of execution desired by the petitioners would be unfair
to the respondents and not in keeping with the disposition really ordained by the
Court of Appeals. As stated in Macabuhay v. Manuel (101 SCRA 835) where we cited
Padua v. Robles (66 SCRA 485):jgc:chanrobles.com.ph
". . . that the meaning, operation and consequences of a judgment must be
ascertained like any other written instrument and that a judgment rests on the
intention of the Court as gathered from every part thereof including the situation to
which it applies and the attendant circumstances."cralaw virtua1aw library

A reading of the decision and its background facts shows that the controversy
litigated and passed upon by the Court of Appeals was confined to the ownership of
seven (7) hectares of land which forms part of the twenty two (22) hectares parcel
of land covered by a torrens title in the name of the petitioners.

The Court of Appeals ruled that the respondents are entitled to seven (7) hectares
of the property but not necessarily the seven (7) hectares possessed by them. They
are entitled to co-possession with appellees until the undivided seven (7) hectares
are definitely segregated through partition.

For us to now rule that the respondents will enjoy co-possession with the petitioners
over seven (7) hectares which belongs to the former would be inequitous even as
actual co-possession over twenty two (22) hectares would not conform to the final
judgment. There is the other consideration that segregation of the definite seven (7)
hectares must await the partition among the heirs, a procedure outside the control
of the respondents.

We, therefore, rule that the co-possession mentioned in the Court of Appeals
judgment refers to the right of the respondents, already certain and vested but not
yet specific, over any seven (7) hectares of the property, in effect ranging but not
specific over the entire property. However, in the meantime that the partition is not
effected and the boundaries of the seven (7) hectares not spelled out, the
respondents shall continue to possess the seven (7) hectares they have held since
the litigated sale and enjoy all its fruits. They will have no share of the fruits of the
other fifteen (15) hectares nor its enjoyment but neither shall the petitioners have
any share in the fruits or enjoyment of the seven (7) hectares held by the
respondents. It would be in the interests of all concerned if the partition of the
property among the heirs is effected immediately and the respondents are finally
given their definite seven (7) hectares as provided in the appellate judgment.

WHEREFORE, the petition is hereby GRANTED. The second paragraph of the

questioned order is DELETED. The respondents shall continue to exclusively possess
and enjoy the seven (7) hectares actually held by them in accordance with the
terms of this decision until a partition is effected and their share is definitely
segregated.

SO ORDERED.
G.R. No. 77976 November 24, 1988
MAXIMO GABRITO, ROGER LIBUT, CARMELITA UY, LIZA DE VERA, thru her Attorney-in-
Fact, JESUS DE LOS SANTOS, petitioners,
vs.
THE HON. NINTH DIVISION, COURT OF APPEALS, THE HON. NICIAS O. MENDOZA,
Presiding Judge Branch 74, Regional Trial Court, Olongapo City, ET AL., respondents.
Cornelio C. Cardenas and Valeriano S. Peralta for petitioners.
Estanislao L. Cesa, Jr. for respondents.
BIDIN, J.:
This is a petition for review on certiorari with preliminary injunction and restraining order of the
decision of the Court of Appeals * dated March 4, 1987 in CA-G.R. No. SP No. 08710, "Maximo
Gabrito et al. vs. Hon. Nicias O. Mendoza and Roberto Tan et al.," affirming the April 2, 1986
decision of the Regional Trial Court of Olongapo City ** which also affirmed the decision of
MTCC, Branch V, Olongapo City, and the Resolution of respondent court dated March 30, 1987
denying herein petitioners' motion for reconsideration.
The appeal originated as an unlawful detainer complaint filed by herein private respondents with
the Municipal Trial Court, Branch V, Olongapo City.
The antecedent facts as summarized by the Court of Appeals are as follows:
The spouses Roberto Tan and Benita Ching-Tan filed a complaint in the
Municipal Trial Court against defendants Maximo Gabrito, et al., alleging that
they are the possessors and legal owners of the property situated at No. 107
Gordon Ave., New Kalalake, Olongapo City as evidenced by Tax Declaration
No. 4-2046. The defendants are leasing portions of this parcel of land, each
paying the corresponding monthly rentals due thereon.
On the leased portion, the defendants constructed buildings and have
allowed other persons to sublease the same for commercial purposes.
As the spouses Tan have no other property where they could construct their
residential house, the spouses Tan notified the defendants (in January 1984)
that they intend to personally use the land to build their house thereon and
gave defendants three (3) months to vacate the premises and remove the
structures and improvements which defendants had constructed thereon.
In April 1984, defendants requested for an extension of time within which to
vacate, which was granted by the spouses Tan. However, from that time on,
defendants also stopped paying monthly rentals due on the land they leased.
In view of this, in July 1984, defendants were told to leave the premises and
to pay rentals in arrears. As defendants refused to comply with both
demands, the matter was brought to the Barangay Council for settlement. As
no agreement was reached, a certification to file action was issued to the
spouses Tan. Hence, the Tans filed an action for unlawful detainer with
damages against Gabrito, et al.
In answer to the complaint, defendants Gabrito, et al. denied the material
allegations of the complaint and alleged that: they are builders in good faith
over the land as provided in Article 448 of the Civil Code; the land where the
houses of defendants were built is a public land, not yet awarded nor titled to
anybody; plaintiffs's alleged predecessor-in-interest not being the owner
thereof could not have passed nor transferred ownership thereof to them
(plaintiffs) considering that Gloria Carillo's Miscellaneous Sales Application
No. (X-4-4320) has not yet been acted upon by the Bureau of Lands; plaintiffs
and their predessors-in-interest are absentee applicants over the land, hence,
are disqualified to own the same; plaintiffs have never been in possession of
the land while the defendants are in actual physical possession thereof; the
sale of plaintiffs' alleged predecessor-in-interest in favor of plaintiffs is null
and void for being in violation of P.D. No. 1517 as defendants being lessees
of the land have the right of first refusal thereof.
Defendants brought a counterclaim for damages against the plaintiffs. (Rollo,
Annex "C", pp. 39-40).
Respondent Municipal Trial Judge applied the rule on summary procedure in this case, rendered
its decision dated November 22, 1985, the dispositive portion of which reads:
WHEREFORE, judgment is hereby rendered for all the defendants to vacate
the parcel of land described in par. 3 of the complaint, removing therefrom the
buildings and any other improvements respectively owned by them; and to
pay plaintiffs the following as reasonable compensation for the use of the
premises:
Maximo Gabritoat
P250.00 per month from April 1984 until he vacates the premises;
Roger Libutat
P150.00 per month from May 1984 until he vacates the premises;
Liza de Veraat:
P150.00 per month from April 1984, until she vacates the premises; Carmelita
Uyat
Pl 70.00 per month from April 1984, until she vacates the premises.
for all defendants to pay, in equal shares, damages by way of attorney's fees
in the amount of ONE THOUSAND PESOS ( P1,000.00 ) as well as costs.
SO ORDERED. (Rollo, p. 35).
On appeal to the Regional Trial Court (Civil Case No. 450-08-5), the decision of the Municipal
Trial Court was affirmed in its decision dated April 2, 1986, the dispositive portion of which reads:
 WHEREFORE, premised on all the foregoing consideration and finding no
prejudicial and reversible error was ever committed by the lower Court, the
Court affirms in toto the decision being appealed, with costs against the
defendants-appellants.
SO ORDERED. (Rollo, Annex 'B' p. 38).
On review, herein respondent Court of Appeals sustained the decision rendered by the Regional
Trial Court Branch LXXIV, and ruled;
WHEREFORE, the Petition for Review herein is DISMISSED for lack of merit.
(Rollo, Annex "C", p. 44).
On March 16, 1987, the petitioner filed their "Motion for Reconsideration and Opposition to the
Motion for Immediate Execution Pending Further Proceedings" which was denied by the Ninth
Division of respondent Court of Appeals in its Resolution dated March 30, 1987 and granted the
Motion for Immediate Issuance of a Writ of Execution filed by private respondents (Annex "F",
Rollo, pp. 57-58).
Hence, this petition for review on certiorari filed on April 13, 1987.
On April 21, 1987, Acting Chief Justice Andres Narvasa, authorized the grant of Temporary
Restraining Order in this case which was confirmed by the Second Division of this Court in its
Resolution dated April 27, 1987 (Rollo, pp. 86, 87, 88).
In a Resolution dated June 8, 1987, petitioners were required to comment on the motion dated
April 26, 1987 (Rollo, p. 94) of counsel for respondents, praying to set aside the temporary
restraining order issued on April 21, 1987 and to issue a writ of execution pending appeal or to
allow the Court of Appeals to proceed with the execution of the decision pending appeal (Rollo,
p. 115), which was complied with by petitioners on July 22, 1987 (Rollo, p. 143).
In the resolution of October 5, 1987 (Rollo, p. 187) the petition was given due course and the
parties were required to submit their respective memoranda within twenty (20) days from notice.
Petitioners' memorandum was submitted on December 3, 1987 (Rollo, p. 196). Respondents
submitted their memorandum on April 12, 1988 (Rollo, p. 235). Petitioners raised the following
issues:
1. That a Municipal Trial Court has no jurisdiction to take cognizance of a
case for Unlawful Detainer under Sec. 1 of Rule 70 of the Rules of Court,
where the plaintiffs are merely the legal possessors and recent transferees of
a public land, and the defendants are the absolute owners of the building
existing on the same land, for a number of years already.
2. That the respondent Regional Trial Court, Branch LXXIV, Olongapo City,
ought to have dismissed the action for Unlawful Detainer and as the same
was also heard on appeal by the said Court on this jurisdictional challenge.
3. The market value of the residential houses or buildings of the defendants
on the said land is approximately P170,000.00, and it was with plaintiffs'
predecessor-in-interest, one Gloria Carillo-Potente that defendants caused
said structures to be erected on said land plaintiffs having only acquired from
said predecessor, by means of a Deed of Sale of such rights sometime on
January 5, 1984.
4. Upon this frame of facts which are admitted in the Decision of both Courts,
only a Court of General Jurisdiction, a Regional Trial Court, can have the
competence to try and decide the same: the Court of Special Limited
Jurisdiction, cannot take cognizance of such facts as an action for Unlawful
Detainer.
5. Arguendo, that the Court of Origin has jurisdiction to take cognizance of the
cause of action for Unlawful Detainer, it should have not heard the case in
accordance with the Rules of Summary Proceedings, and based its Decision
on an Affidavit hearing, as the question of ownership was being contested
between plaintiffs and defendants, with respect to whom was the preferred
grantee to the same land, and which falls under the complete administration
and control of the Bureau of Lands.
6. In fact, the Court of Origin, Branch V, Municipal Trial Court in Cities,
Olongapo, should have suspended the proceedings, as there was an
Administrative Protest being heard by the District Land Office of Olongapo
City.
7. On the question of suspension of proceedings denied by the Court of
Origin, Municipal Trial Court in Cities, Branch V, Olongapo City, an action for
certiorari was filed before Branch LXXIII of Regional Trial Court, Olongapo
City, Civil Case No. 399-0-85, and although a Restraining Order against
Municipal Trial Court in Cities, Branch V, City of Olongapo, was issued, the
same was already academic as by that time said Municipal Trial Court,
Branch V, Olongapo City, has already rendered its Decision in favor of private
respondent hereat, plaintiff therein.
8. Branch LXXIV, Regional Trial Court, Olongapo, in its Decision rendered on
appeal, did not pass upon such matters, specified supra, so as to reverse the
Decision of the Court of Origin: the subject Decisions, have not considered
the due process rights of petitioners toward their residences and structures,
the same are facing the risk of condemnation and destruction without fair
hearing, and such improvements have an aggregate value of Pl70,000.00,
more or less.
9. Respondent Honorable Judge Mendoza of Branch LXXIV, Regional Trial
Court, Olongapo, may have been misled by the citation of authority, case
of Vda. de Bocaling vs. Laguna, et al., 54 SCRA, 243, relied upon by
appellees, said case being totally inapplicable to the facts of this case.
10. Respondent Deputy Sheriff Rogelio Lumanlan, without regard to the
fif'teen (15) days period finality of the Order and/or Writ of Demolition,
harrassed herein petitioners, notwithstanding the pendency of matters
involved to their extreme discomfort and anxiety.
 11. The Decision of the Honorable Court of Appeals, Annex "C", sustained
the Decision of the Regional Trial Court and ignored the vital issues posed for
resolution: A Motion For Reconsideration, copy is hereto attached as Annex
"D", was presented, precisely to stress the same but, a pointed or precise
ruling upon such issues was avoided in the Resolution dated 30th of March,
1987, true copy attached herein as Annex "E".
12. On the other (sic) upon Motion of private respondents, the Tans, despite
Opposition thereto, Writ of Execution pending appeal was issued and
respondent Deputy Sheriff Lumanlan enforced the same, copy of which is
hereto attached as Annex "F": true copy of Notice to Vacate served by said
respondent Deputy Sheriff to petitioners is attached as Annex "G" herein.
13. Per Annex "D" Motion For Reconsideration a constitutional point, was
reared forth, on first impression, per proviso of Sec. 10, Art. XIII-new, 1986
Constitution, relevant to demolition and resettlement, and, Resolution, dated
30th March, 1987, Annex "E", of the Honorable Appellate Authority, avoided
said constitutional question, without passing upon the same.
14. Of Jurisdictional matters: Decision dated March 4, 1987, of the Honorable
Court of Appeals was, received on March 6, 1987, Motion For
Reconsideration was filed on March 16, 1987, and Resolution dated 30th of
March, 1987, denying Motion for Reconsideration was received on April 1,
1987: thus, this Petition is filed within the 15 day period. (Rollo, pp. 4-8).
All of which boil down to the main issue of whether or not an action for unlawful detainer is the
proper action to oust petitioners from their occupation of the land in dispute.
There is no question as to the ownership of the land in litigation as both petitioners and private
respondents admit that the same is a public land and owned by the government. The bone of
contention is, who has a better right to possess the land which definitely falls under the
jurisdiction of the Municipal Trial Court and the rule of summary procedure may properly be
applied.
In a preliminary conference held pursuant to Section 6 of the Rule on Summary Procedure,
defendants admitted that they entered the premises as lessees and had been paying rentals for
the use of the land to Gloria Carillo, private respondents' predecessor-in-interest (Order dated
May 15, 1985 in Civil Case No. 2511, MTC, Olongapo City, Branch V; Rollo, pp. 72-
73).<re||an1w> When requested to vacate the premises, petitioners asked for an extension
of time which request was granted. However, petitioners failed to vacate the premises and also
stopped paying rentals. In view of said admissions, petitioners had unquestionably recognized
private respondents' prior right of possession over the questioned property.
Petitioners' allegation in their answer that they are builders in good faith over the land as
provided for in Article 448 of the Civil Code is untenable. As ruled by this Court, Article 448 of the
Civil Code, applies only where one builds on land in the belief that he is the owner of the land,
but does not apply where one's interest in the land is that of a lessee under a rental contract
(Balucanag v. Francisco, 122 SCRA 498 [1983]). More than that, it has been settled that the
mere fact that, in his answer, defendant claims to be the exclusive owner of the property from
which plaintiff seeks to eject him is not sufficient to divest the Municipal Trial Court of jurisdiction
(Vivar v. Vivar, 8 SCRA 847, 849 [1963]; De Santa vs. Court of Appeals, 140 SCRA 52 [1985]).
In addition, this Court held in Bocaling v. Laguna, et al (54 SCRA 243, 250 [1973]) that:
The rule is well-settled that lessees, like petitioner, are not possessors in
good faith because he knew that their occupancy of the premises continues
only during the life of the lease, and they cannot as a matter of right, recover
the value of their improvements from the lessor, much less retain the
premises until they are reimbursed. Their rights are governed by Article 1678
of the Civil Code which allows reimbursement of lessees up to one-half of the
value of their improvements if the lessor so elects.
Petitioners contend that the above cited case is "completely inapplicable to the case at bar,
because the genesis case of Ejectment therein was subjected to a compromise Agreement"
(Rollo, p. 18). Such contention is, however, untenable. One of the issues raised in the above-
cited case was whether or not lessees are builders and/or possessors in good faith entitled to
reimbursement for the value of their improvements. The Court categorically resolved the issue in
the negative without qualification nor even a reference to the compromise agreement alluded to
by the petitioner.
In a later development, petitioners filed a supplemental memorandum submitting the decision of
the Bureau of Lands dated June 7, 1987, the dispositive portion of which reads:
IN VIEW OF ALL THE FOREGOING, the Miscellaneous Sales Application
No. 4320 of Benita Ching Tan should be, as hereby as it is rejected forfeiting
to the government whatever amount had been paid on account thereof. The
miscellaneous sales application of Maximo Gabrito, Carmelita Uy, Roger
Libut and Liza de Vera shall continue to be given due course after a
subdivision survey of the portion occupied by them shall have been made at
their pro-rata expense.
SO ORDERED.
In view thereof, petitioners maintain that they are the lawful owners of the buildings and the legal
possessors of subject land and that the records of the court proceedings show the pendency of
the administrative protest before the Bureau of Lands between the same litigating parties (Rollo,
pp. 166-167).
Respondents countered that the decision of the Bureau of Lands granting preferential right to the
petitioners to apply for the subject parcel of land is still on appeal before the Department of
Natural Resources.1 Hence, said decision which is not yet final, cannot affect the outcome of this
case because the authority given to the land department over the disposition of public land does
not exclude the courts from their jurisdiction over possessory actions, the character of the land
notwithstanding (Rollo, pp. 246-247).
The contention of private respondents is well taken.
This issue has long been laid to rest by this Court. As early as the case of Pitarque v. Sorilla (92
Phil. 55 [1952]), this Court ruled that:
The vesting of the Lands Department with authority to administer, dispose of,
and alienate public lands must not be understood as depriving the other
 branches of the Government of the exercise of their respective functions of possession or occupation of the land in question (Rallos vs. Ruiz,
powers thereon, such as the authority to stop disorders and quell breaches of Jr., supra).<re||an1w>
peace by the police and the authority on the part of the courts to take
jurisdiction over possessory actions arising therefrom not involving, directly or
In fact, the Bureau of Lands in its decision of June 7, 1987, admitted the jurisdiction of the courts
indirectly, alienation and disposition. to decide the case on the question of physical possession, although not on the question of
ownership (Rollo, p. 179).
Said ruling was reiterated in Bahayang v. Maceren, 96 Phil 390 (1955); in Molina v. De Bacud,
19 SCRA 56 (1967) and in Rallon v. Ruiz, Jr., 28 SCRA 331 (1969). In the latter case, the Court
Under the circumstances, a careful study of the records failed to show any cogent reason to
specifically ruled on the jurisdictional question, as follows: disturb the findings of the Municipal Trial Court in Cities and of the Regional Trial Court, both of
Olongapo City, and finally of the Court of Appeals.
Courts have jurisdiction over possessory actions involving public lands to
determine the issue of physical possession (in forcible entry cases before the
WHEREFORE, the decision of respondent Court of Appeals is AFFIRMED and the temporary
inferior court) on the better right of possession (in accion publiciana cases restraining order is lifted. Costs against petitioners.
before court of first instance). And this is because the issue of physical
possession raised before the courts is independent of the question of
disposition and alienation of public lands which should be threshed out in the SO ORDERED.
Bureau of Lands.

The above ruling was further reiterated in Francisco v. Secretary of Agriculture and Natural
Resources (121 SCRA 380 [1983]) and in a recent case of National Development Co., et al. v.
Hervilla, G.R. No. 65718, June 30, 1987 (151 SCRA 520), where it was held that:

It is now well settled that the administration and disposition of public lands are
committed by law to the Director of Lands primarily, and ultimately to the
Secretary of Agriculture and Natural Resources. The jurisdiction of the
Bureau of Lands is confined to the determination of the respective rights of
rival claimants of public lands or to cases which involve disposition and
alienation of public lands. The jurisdiction of courts is limited to the
determination of who has the actual, physical possession or occupation of the
land in question (in forcible entry cases, before municipal courts) or, the
better right of possession (in accion publiciana, in cases before the Court of
First Instance, now Regional Trial Court).

And even more recently in the case of Guerrero v. Amores, et al., G.R. No.
L-34492 promulgated on March 28, 1988, the Court clearly stated that "pending final adjudication
of ownership by the Bureau of Lands, the Court has jurisdiction to determine in the meantime the
right of possession over the land." Corollary thereto, the power to order the sheriff to remove
improvements and turn over the possession of the land to the party adjudged entitled thereto,
belongs only to the courts of justice and not to the Bureau of Lands.

In the same case, the application of the principle of exhaustion of administrative remedies with
reference to public lands, was further clarified by this Court as follows:

On the other hand, the application of the principle of exhaustion of

administrative remedies as a condition precedent to the filing of a juridical
action is confined to controversies arising out of the disposition of public lands
(Geukoko vs. Araneta, 102 Phil. 706 (1957); Marukot vs. Jacinto, 98 Phil. 128
(1957), alienation of public lands (Rallos vs. Ruiz, Jr., supra) or to the
determination of the respective rights of rival claimants to public lands
(Pitarque vs. Sorilla, supra) and not to possessory actions involving public
lands which are limited to the determination of who has the actual, physical