Comon, John Cedric M. Student No.

2015400004

4-C – Remedial Law Review Judge Wilhelmina Jorge-Wagan

Research Paper on Remedial Law Review

Rule 91- Escheats

Escheat

Rule 91 of the Revised Rules of Court of the Philippines covers escheat proceedings.
Escheat, as held in the case of Municipal Council of San Pedro, Laguna, et al v. Colegio de San Juan
Jose, is a proceeding whereby the real and personal property of a deceased person become the
property of the State upon his death without leaving a will or any legal heirs. 1 It is not an
ordinary action, but a special proceeding, and commenced by a petition and not by complaint.
In the absence of a lawful owner, a property is claimed by the State to forestall an open
“invitation to self-service by the first timers.”2

Nature of Escheat Proceedings

The nature of Escheat rests on the ultimate principle of ultimate ownership of the State
of all property within its jurisdiction.3 It is not an ordinary civil action but a special proceeding
commenced through a verified petition.

Requisites of Escheat Proceedings

Under Rule 91 of the Revised Rules of Court, the following are the requisites of escheat
proceedings: First, there must be a person who died intestate. A person dies intestate when he
has no will or even if he has a will, the same was not allowed by probate. Second, the deceased
must have left properties in the Philippines whether real or personal property. Third, the
deceased has left no heirs or persons which are entitled to the said properties. 4

Parties in an Escheat Proceeding

1
Festin, Gemy; Special Proceedings ( A Foresight to the Bar Exam and the Practice of Law ) [2015] 3rd Edition.
2
Republic v Court of Appeals, G.R. No. 143483, January 31, 2002.
3
Retrieved from https://www.projectjurisprudence.com/2017/06/rule-91-escheat.html. Last opened April 16,
2020.
4
Id.
 As provided under Rule 91, Section 1 the Revised Rules of Court, an escheat proceeding
is initiated by the government through the Solicitor General or any of his authorized
representative. All interested parties must be notified of the proceeding and given equal
opportunity to present their valid claims; otherwise the properties subject of the escheat
proceedings shall revert back to the State.5 Furthermore, any person who has a direct interest or
right to the property sought to be escheated may also oppose the petition 6.

A depositary bank may also be a party in an escheat proceeding under the Unclaimed
Balances Law which states that such bank should be joined as a respondent in an action for
escheat since a decree of escheat issued by the court would deprive it of the use of such
dormant deposits.7

Venue; Where to File

The proper venue for an escheat proceeding depends on whether the deceased is a
resident or a non-resident. If the deceased was a resident of the Philippines, the petition shall be
filed in the Regional Trial Court of the place where the deceased last resided. If the deceased
was a non-resident, the petition should be filed in the Regional Trial Court of the place where
his estate is located. 8

Notice and Publication

Rule 91, Sec 2 of the Revised Rules of Court provides for the provisions on the notice
and publication requirement for an escheat proceeding. If the petition is sufficient in form and
substance, the court shall make an order of hearing which hearing should not be more than 6
months after entry of such order. The court shall then direct the publication of a copy of such
order at least once a week for 6 consecutive weeks in some newspaper of general circulation
within the province. As held in the case of Divino v. Hilario, this publication requirement of the
notice of hearing is a jurisdictional requisite, non-compliance of which affects the validity of the
proceedings.9

Hearing and Judgment

5
Bermudo v Court of Appeals. G.R. No. L-38622, October 26, 1987
6
The Municipal Council of San Pedro, Laguna v Colegio de San Jose Inc.
7
Act No. 3936, Sec 3; Republic v CFI of Manila G.R. No. L-30381, August 30, 1988.
8
ROC, Rule 91, Section 1.
9
Divino v Hilario. G.R. No. L-44658. January 24, 1936.
 Before a judgment of escheat is issued, it must be established by the court that the
publication of the order of hearing was done properly, the deceased died intestate, that the
properties of the deceased is seized in the Philippines and that he has left no heir or person
entitled to such property. The burden of proof rests on the state to prove that the property in
question is in all respects liable to escheat. 10

After the judgment, the property escheated will be assigned depending on whether it is
personal or real property. If personal property, it will be assigned to the municipality or city
where the deceased last resided. If real property, it will be assigned to the municipality or city
where the property is situated. However, if the deceased never resided in the Philippines, the
properties will be assigned to the municipality or city where the property may be found. The
beneficiaries will be the public schools and public charitable institutions and centers in said
locations. 11

Filing a claim on the Escheated Property

Any devisee or legatee, heir or widower or any other person entitled to such estate can
file a claim thereto with the court within five (5) years from the date of such judgment. The
person shall have possession of and title over the property escheated and if the property was
sold, the municipality or the city shall be accountable to him for the proceeds after deducting
reasonable charges for the care of the estate.12 Failure to file a claim within the prescribed period
shall bar the claim forever. The procedure by which the escheated property may be recovered is
generally prescribe by statute and a time limit is prescribe by it to be properly observed 13

Other Actions

The rule on Escheat also applies to actions on reversion or escheat of any property
alienated in violation of the Constitution or of any statute. 14

Unclaimed balances which include credits or deposits of money, bullion, security or

other evidence of indebtedness of any kind, and interest thereon with banks in favor of any
10
ROC. Rule 91, Section 3.
11
Id.
12
ROC, Rule 91, Section 4.
13
Republic v Court of Appeals. G.R. No. 143483. January 31, 2002.
14
ROC. Rule 91, Section 5.
person unheard from for a period of ten (10) years of more, together with the interest and
proceeds thereof shall be deposited with the Insular Government of the Philippines as the
Philippine Legislature may direct (Act No. 3936, Unclaimed Balances Act, Sec. 1).

Action to recover unclaimed balances shall be commenced by the Solicitor General in an action
for escheat in the name of the People of the Philippines in the Regional Trial Court of the
province where the bank is located, in which shall be joined as parties the bank and such
creditors or depositors. All or any member of such creditors or depositors or banks, may be
included in one action. (Id., Sec. 3; Republic vs. Court of First Instance of Manila and Pres..
Roxas Rural Bank, Inc., G.R. No. L-30381, August 30, 1988)