Betty Lacbayan and Bayani Samoy met through common
friend in 1978. Despite Samoy’s being already married, their relationship developed until Lacbayan gave birth to Samoy’s son. During their illicit relationship, they (together with 3 incorporators) were able to establish a manpower services company. 5 parcels of land were also acquired during said period & were registered in Lacbayan and Samoy’s names as husband and wife. Lacbayan initially lived with her parents but in 1983, she left her parents & resided in the property located in Malvar. Then she and son transferred to property in Zobel, then finally transferred to property in Don Enrique Heights. Eventually, their relationship turned sour & decided to part ways in 1991. So they both agreed to divide their properties & terminate their business partnership by executing Partition Agreement. Initially, Samoy agreed to Lacbayan’s proposal that properties in Malvar and Don Enrique Heights will be assigned to her while the 3 other will go to Samoy. However when Lacbayan wanted additional demands to be included in partition agreement, Samoy refused. 31 May ’99: Lacbayan filed complaint for judicial partition, averring that she and Samoy lived as husband and wife without benefit of marriage & they worked together as business partners, acquiring real properties amounting to P15.5M. 10 Feb 2000: RTC rendered decision, dismissing complaint for lack of merit, giving weight to Lacbayan’s own admission that the properties were acquired not from her own personal funds but from the income of the manpower services company which she owns a measly 3.33% share. Lacbayan appealed to CA. CA likewise denied.
ISSUE:
Whether or not the Torrens title over disputed properties
was collaterally attacked in the action for partition.
RULING:
Petition is bereft of merit. The determination as to the
existence of co-ownership is necessary in the resolution of an action for partition. The first phase of a partition and/or accounting suit is taken up with the determination of whether or not a co-ownership in fact exists, and a partition is proper and may be made by voluntary agreement of all the parties interested in the property. The second phase commences when it appears that "the parties are unable to agree u pon the partition" directed by the court. Anent issue of collateral attack: no dispute that a Torrens certificate of title cannot be collaterally attack but this is not material to the case at bar. What cannot be collaterally attack is the certificate of title and not the title itself. The certificate referred to is that document issued by the Register of Deeds known as the TCT. In contrast, the title referred to by law means ownership, which is, more often than not, represented by that document. Ownership is different from a certificate of title, the latter only serving as the best proof of ownership over a piece of land. The certificate cannot always be considered as conclusive evidence of ownership. In fact, mere issuance of the certificate of title in the name of any person does not foreclose the possibility that the real property may be under co-ownership with persons not named in the certificate, or that the registrant may only be a trustee, or that other parties may have acquired interest over the property subsequent to the issuance of the certificate of title. Samoy is not allowed by law to waive whatever share his lawful spouse may have on the disputed properties. Basic is the rule that rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, good customs or prejudicial to a third person with a right recognized by law.
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