Justice Teresita Leonardo-De Castro Cases (2008-2015) Civil Law

EFFECT AND APPLICATION OF LAWS

There is no irreconcilable conflict or repugnancy between Section 28 of R.A. No. 7279 and P.D. No.
1315 and No. 1472, rather, they can be read together and harmonized to give effect to their
provision. It should be stressed that Section 28 of R.A. No. 7279 does not totally and absolutely
prohibit eviction and demolition without a judicial order as in fact it provides for exceptions.
Pursuant to established doctrine, the three (3) statutes should be construed in the light of the
objective to be achieved and the evil or mischief to be suppressed by the said laws, and they should
be given such construction as will advance the object, suppress the mischief and secure the benefits
intended. It is worthy to note that the three laws (P.D. No. 1315, P.D. No. 1472 and R.A. No. 7279)
have a common objective to address the housing problems of the country by establishing a
comprehensive urban development and housing program for the homeless. For this reason, the
need to harmonize these laws all the more becomes imperative. - Caridad Magkalas vs. National
Housing Authority, G.R. No. 138823, September 17, 2008
CONFLICT OF LAWS
In an action for enforcement of foreign judgment, the Court has limited review over the decision
rendered by the foreign tribunal. The Philippine courts cannot pass upon the merits of the case
pursuant to the incorporation clause of the Constitution, unless there is proof of want of
jurisdiction, want of notice to the party, collusion, fraud, or clear mistake of law or fact. - Bank of
the Philippine Islands Securities Corporation vs. Edgardo V. Guevara, G.R. No. 167052, March
11, 2015
HUMAN RELATIONS
UNJUST ENRICHMENT
Expounding on this provision in a recent case, we have held that the principle of unjust enrichment
essentially contemplates payment when there is no duty to pay, and the person who receives the
payment has no right to receive it.
In light of the overpayment, it seems specious for petitioner to claim that it has suffered damages
from respondents refusal to pay its Progress Billing, which had been proven to be excessive and
inaccurate. Bearing in mind the law and jurisprudence on unjust enrichment, we hold that
petitioner is indeed liable to return what it had received beyond the actual value of the work it had
done for respondent. - R.V. Santos Company, Inc. vs. Belle Corporation, G.R. Nos. 159561-62,
October 3, 2012
PERSONS
PSYCHOLOGICAL INCAPACITY
There is no requirement that the defendant/respondent spouse should be personally examined by
a physician or psychologist as a condition sine qua non for the declaration of nullity of marriage

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based on psychological incapacity. - Marietta C. Azcueta vs. Republic of the Philippines and the
Court of Appeals, G.R. No. 180668, May 26, 2009
Article 36 of the Family Code is not to be confused with a divorce law that cuts the marital bond at
the time the causes therefore manifest themselves. It refers to a serious psychological illness
afflicting a party even before the celebration of the marriage. It is a malady so grave and so
permanent as to deprive one of awareness of the duties and responsibilities of the matrimonial
bond one is about to assume. Judicial precedents regarding the evidentiary requirements in
psychological incapacity cases that must be applied. Jose Reynaldo B. Ochosa vs. Bona J. Alano
and Republic of the Philippines, G.R. No. 167459, January 26, 2011
PROPERTY RELATIONS OF THE SPOUSES (FAMILY CODE)
When the sale is made before the effectivity of the Family Code, the applicable law is the Civil Code.
Article 173 of the Civil Code provides that the disposition of conjugal property without the wife's
consent is not void but merely voidable. - Heirs Of Domingo Hernandez, Sr., namely: Sergia V.
Hernandez (Surviving Spouse), Domingo V. Hernandez, Jr., and Maria Leonora Wilma
Hernandez vs. Plaridel Mingoa, Sr., Dolores Camisura, Melanie Mingoa, and Quezon City
Register of Deeds, G.R. No. 146548, December 18 2009
PROPERTY
OWNERSHIP
A Torrens title cannot be attacked collaterally, and the issue on its validity can be raised only in an
action expressly instituted for that purpose. A collateral attack is made when, in another action to
obtain a different relief, the certificate of title is assailed as an incident in said action. Spouses
Decaleng only sought the dismissal of the complaint of PEC-EDNP plus the grant of their
counterclaim for the payment of moral damages, exemplary damages, litigation expenses, and
attorneys fees. They conspicuously did not pray for the annulment or cancellation of Certificate of
Title No. 1. Evidently, the Spouses Decalengs attack on the validity, as well as the existence of
Certificate of Title No. 1 is only incidental to their defense against the accion publiciana and accion
reinvindicatoria instituted by PEC-EDNP, hence, merely collateral. - Sps. Ambrosio Decaleng
(substituted by his heirs) and Julia "Wanay" Decaleng vs. Bishop of the Missionary District of
the Philippine Islands of Protestant Episcopal Church in the United States of America,
otherwise known as the Philippine Episcopal Church, G.R. No. 171209, June 27, 2012
ACCESSION
The accessory follows the principal. The right of accession is recognized under Article 440 of the
Civil Code which states that the ownership of property gives the right by accession to everything
which is produced thereby, or which is incorporated or attached thereto, either naturally or
artificially. - Maria Torbela, represented by her heirs, Eulogio Tosino, et al. vs. Spouses
Andres T. Rosario, et al., G.R. No. 140528, December 7, 2011
QUIETING OF TITLE

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Vidal filed an action for quieting of title with regard to the land she inherited from
Francisco Cacho. However, Teofilo opposed contended that there is no title to be disturbed
in the first place. The court ruled that this action indisputably an action for quieting of title,
a special proceeding wherein the court is precisely tasked to determine the rights of the
parties as to a particular parcel of land, so that the complainant and those claiming under
him/her may be forever free from any danger of hostile claim. - Republic of the Philippines
vs. Hon. Mamindiara P. Mangotara, et al., G.R. No. 170375, July 7, 2010
The Syjucos' title, shows that it originated from OCT No. 994 registered on May 3, 1917 while
Bonficacio's title shows that that it likewise originated from OCT No. 994, but registered on April
19, 1917. This case affirmed the earlier finding that there is only one OCT No. 994, the registration
date of which had already been decisively settled as 3 May 1917 and not 19 April 1917 and
categorically concluded that OCT No. 994 which reflects the date of 19 April 1917 as its
registration date is null and void. - Imelda Syjuco, et al., vs. Felisa D. Bonifacio and VSD Realty
& Corporation, G.R. No. 148748, January 14, 2015
For an action to quiet title to prosper, two indispensable requisites must concur: (1) the plaintiff or
complainant has a legal or equitable title or interest in the real property subject of the action; and
(2) the deed, claim, encumbrance, or proceeding claimed to be casting a cloud on his title must be
shown to be in fact invalid or inoperative despite its prima facie appearance of validity or legal
efficacy. - Herminio M. De Guzman, for himself and as Attorney-In-Fact of Nilo M. De Guzman,
Angelino De Guzman, Josefino M. De Guzman, Estrella M. De Guzman, Teresita De Guzman,
Elsa Margarita M. De Guzman, Evelyn M. De Guzman, Ma. Nimia M. De Guzman, Antolin M. De
Guzman, and Ferdinand M. De Guzman vs. Tabangao Realty Incorporated, G.R. No. 154262,
February 11, 2015
POSESSION
It is a time-honored legal precept that after the consolidation of titles in the buyers name, for
failure of the mortgagor to redeem, entitlement to a writ of possession becomes a matter of right. Viola Cahilig et al., vs. Hon. Eustaquio G. Terencio et al., G.R. No. 164470, November 28, 2011
OBLIGATIONS
EXTINGUISHMENT OF OBLIGATIONS
Article 1391 of the Civil Code, which pertinently reads: The action for annulment shall be brought
within four years. In case of mistake or fraud, this period shall begin from the time of the discovery
of the same. - Spouses Renato and Florinda Dela Cruz vs. Spouses Gil and Leonila Segovia, G.R.
No. 149801, June 26, 2008
In general, a payment in order to be effective to discharge an obligation, must be made to the
proper person. Thus, payment must be made to the obligee himself or to an agent having authority,
express or implied, to receive the particular payment. Hence, absent any showing that the
respondent agreed to the payment of the contract price to another person, or that she authorized
Cruz to claim the check on her behalf, the payment, to be effective must be made to her. - Republic
of the Philippines, represented by the Chief of the Philippine National Police vs. Thi Thu
Thuy T. De Guzman, G.R. No. 175021, June 15, 2011
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It is important to note at this point that in the determination of the nullity of a contract based on the
lack of consideration, the debtor has the burden to prove the same. Article 1354 of the Civil Code
provides that "although the cause is not stated in the contract, it is presumed that it exists and is
lawful, unless the debtor proves the contrary." - Union Bank of the Philippines vs. Spouses
Rodolfo T. Tiu and Victoria N. Tiu, G.R. Nos. 173090-91, September 7, 2011

CONTRACTS
ESSENTIAL REQUISISTES
When there is as of yet no meeting of the minds as to the subject matter or the cause or
consideration of the contract being negotiated, the same cannot be considered to have been
perfected. - MCA-MBF Countdown Cards Philippines Inc., Amable R. Aguiluz V, Amable C.
Aguiluz IX, Cielo C. Aguiluz, Alberto L. Buenviaje, Vicente Acsay and MCA Holdings and
Management Corporation vs. MBf Card International Limited and MBf Discount Card Limited,
G.R. No. 173586, March 14, 2012
KINDS OF CONTRACTS
SALVADOR A. FERNANDEZ vs. CRISTINA D. AMAGNA
G.R. No. 152614, September 30, 2009, J. Leonardo-De Castro
When the contract of lease does not provide for a definite period for its duration, the lease
shall be considered month to month if the rentals are paid on a monthly basis and when the lessee
fails to pay the monthly rental, the contract of lease shall be considered terminated.
ROLANDO T. CATUNGAL, JOSE T. CATUNGAL, JR., CAROLYN T. CATUNGAL and ERLINDA
CATUNGAL-WESSEL vs. ANGEL S. RODRIGUEZ
G.R. No. 146839, March 23, 2011, J. LEONARDO-DE CASTRO
This Court has distinguished between a condition imposed on the perfection of a contract
and a condition imposed merely on the performance of an obligation. While failure to comply with
the first condition results in the failure of a contract, failure to comply with the second merely gives
the other party the option to either refuse to proceed with the sale or to waive the condition.
INTERPRETATION OF CONTRACTS
As mandated by Article 1370 of the Civil Code, if the terms of the contract are clear and leave no
doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall
control. The agreement is clear, plain and simple that it leaves no room for interpretation. It
explicitly provides that for the services of Zamora, as agent under the agreement, Multiwood agreed
to pay her in the amount equivalent to 10% of the face value of the invoice price, covering the letter
of credit or such other instrument representing the actual purchase price for the products sold or
shipped by Multiwood. - Heirs of Deceased Carmen Cruz-Zamora vs. Multiwood International
Inc., G.R. No. 146428, January 19, 2009
DEFECTIVE CONTRACTS

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The proper basis for the nullity of the forged pacto de retro sale is Article 1318 of the Civil Code,
which enumerates the essential requisites of a valid contract, and not Article 1409 which
enumerates examples of void contracts in relation to Article 1505 which refers to an unenforceable
contract and is applicable only to goods. - Vicente Manzano, Jr. vs. Marcelino Garcia, G.R. No.
179323, November 28, 2011
Article 1305 of the Civil Code allows contracting parties to establish such stipulation, clauses, terms,
and conditions as they may deem convenient, provided, however, that they are not contrary to law,
morals, good customs, public order, or public policy.
Pactum commissorium is among the contractual stipulations that are deemed contrary to law. It is
defined as "a stipulation empowering the creditor to appropriate the thing given as guaranty for the
fulfillment of the obligation in the event the obligor fails to live up to his undertakings, without
further formality, such as foreclosure proceedings, and a public sale." It is explicitly prohibited
under Article 2088 of the Civil Code. - Philnico Industrial Corporation vs. Privatization and
Management Office, G.R. No. 199420, August 27, 2014
RESCISSION OF CONTRACTS
The general rule is that he who alleges fraud or mistake in a transaction must substantiate his
allegation as the presumption is that a person takes ordinary care for his concerns and that private
dealings have been entered into fairly and regularly." One who alleges defect or lack of valid
consent to a contract by reason of fraud or undue influence must establish by full, clear and
convincing evidence such specific acts that vitiated a partys consent, otherwise, the latters
presumed consent to the contract prevails. - Fontana Resort and Country Club, Inc. and RN
Development Corp. vs. Spouses Roy S. Tan and Susan C. Tan, G.R. No. 154670, January 30,
2012
SALES
EXTINGUISHMENT OF SALE
The alleged nullity of the deed of conditional sale because the period of redemption had expired is
wrong. The right of legal redemption must be exercised within specified time limits. However, the
statutory period of redemption can be extended by agreement of the parties. Allowing a
redemption after the lapse of the statutory period, when the buyer at the foreclosure does not
object but even consents to the redemption, will uphold the policy of the law recognized in such
cases as Javellana v. Mirasol and Nuez, and in the more recent case of Tibajia, et al. v. Honorable
Court of Appeals, et al., which is to aid rather than defeat the right of redemption. - Republic of the
Philippines vs. Marawi-Marantao General Hospital Inc, and Atty. Macapanton K.
Mangodadatu, G.R. No. 158920, November 28, 2012

PARTNERSHIP
There is a co-ownership when an undivided thing or right belongs to different persons. It is a
partnership when two or more persons bind themselves to contribute money, property, or industry

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to a common fund, with the intention of dividing the profits among themselves. A partner is entitled
only to his share as agreed upon, or in the absence of any such stipulations, then to his share in
proportion to his contribution to the partnership. - Federico Jarantilla, Jr. vs. Antonieta
Jarantilla, Buenaventura Remotigue, substituted by Cynthia Remotigue, Doroteo
Jarantilla and Tomas Jarantilla, G.R. No. 154486, December 1, 2010
AGENCY
Our law mandates an agent to act within the scope of his authority. The scope of an agents
authority is what appears in the written terms of the power of attorney granted upon him. Under
Article 1878(11) of the Civil Code, a special power of attorney is necessary to obligate the principal
as a guarantor or surety. In the case at bar, the principal could be held liable even if the agent
exceeded the scope of his authority only if the agents act of issuing the Surety Bond is deemed to
have been performed within the written terms of the power of attorney he was granted. However,
the Special Power of Attorney accorded to the agent in this case clearly states the limits of his
authority and particularly provides that in case of surety bonds, it can only be issued in favor of the
Department of Public Works and Highways, the National Power Corporation, and other government
agencies. - Country Bankers Insurance Corporation vs. Keppel Cebu Shipyard, Unimarine
Shipping Lines, Inc., Paul Rodriguez, Peter Rodriguez, Albert Hontanosas, and Bethoven
Quinain, G.R. No. 166044, June 18, 2012

TRUST
A trust may have a constructive or implied nature in the beginning, but the registered owners
subsequent express acknowledgement in a public document of a previous sale of the property to
another party, had the effect of imparting to the aforementioned trust the nature of an express
trust. - Maria Torbela, represented by her heirs, Eulogio Tosino et al vs. Spouses Andres T.
Rosario et al, G.R. No. 140528, December 7, 2011
A constructive trust is substantially an appropriate remedy against unjust enrichment. It is raised
by equity in respect of property, which has been acquired by fraud, or where although acquired
originally without fraud, it is against equity that it should be retained by the person holding it. Thus,
the payees, who acquired the retirement benefits under the GSIS RFP, are considered as trustees of
the disallowed amounts, as although they committed no fraud in obtaining these benefits, it is
against equity and good conscience for them to continue holding on to them. Government
Service Insurance System (GSIS), et al. vs. Commission On Audit (COA), Amorsonia B.
Escarda, Ma. Cristina D. Dimagiba, and Reynaldo P. Ventura, G.R. No. 162372, September 11,
2012
CREDIT TRANSACTIONS
LOAN
There is no express trust made if there is no clear and manifest intention to create such. If after
careful scrutiny of the document, it is clear that what was intended was the establishment of a lien

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over the subject properties as a form of collateral, then the underlying agreement is a loan, not a
trust. - Philippine National Bank vs. Merelo B. Aznar, et al., G.R. No. 171805, May 30, 2011
REAL MORTGAGE
It has been settled that there is effective registration once the registrant has fulfilled all that is
needed of him for purposes of entry and annotation, so that what is left to be accomplished lies
solely on the register of deeds. As such, an entry of the certificate of sale was validly registered even
if the same was only annotated in the owners transfer certificates of titles. Particularly, the
purchaser in the auction sale cannot be faulted for the impossibility of annotation on the transfer
certificates of title which were supposed to be in the custody of the Registrar of Deeds, like in
instances when the same were previously razed in fire. Neither could such purchaser be blamed for
the fact that there were no reconstituted titles available during the time of inscription as it had
taken the necessary steps in having the same reconstituted but to no avail. Hence, the one-year
period of redemption commences to run from the said annotation and the failure of the mortgagors
to redeem during the said period entitles the purchaser to the writ of possession as a matter of
right. - National Housing Authority vs. Augusto Basa, Jr., Luz Basa and Eduardo S. Basa, G.R.
No. 149121, April 20, 2010
Foreclosure proceedings enjoy the presumption of regularity and that the mortgagor who alleges
absence of a requisite has the burden of proving such fact.
The publication of the notice of sale in the newspaper of general circulation alone is more than
sufficient compliance with the notice posting requirement of the law. By such publication, a
reasonably wide publicity had been effected such that those interested might attend the public sale,
and the purpose of the law had been thereby subserved. - Century Savings Bank vs. Spouses
Danilo T. Samonte and Rosalinda M. Samonte, G.R. No. 176212, October 20, 2010
If the proceeds of the sale are insufficient to cover the debt in an extrajudicial foreclosure of
mortgage, the mortgagee is entitled to claim the deficiency from the debtor. While Act No. 3135, as
amended, does not discuss the mortgagees right to recover the deficiency, neither does it contain
any provision expressly or impliedly prohibiting recovery. - BPI Family Savings Bank, Inc. vs. Ma.
Arlyn T. Avenido & Pacifico A. Avenido , G.R. No. 175816, December 7, 2011
Gross inadequacy of price does not nullify an execution sale. In an ordinary sale, for reason of
equity, a transaction may be invalidated on the ground of inadequacy of price, or when such
inadequacy shocks ones conscience as to justify the courts to interfere; such does not follow when
the law gives the owner the right to redeem as when a sale is made at public auction, upon the
theory that the lesser the price, the easier it is for the owner to effect redemption. When there is a
right to redeem, inadequacy of price should not be material because the judgment debtor may reacquire the property or else sell his right to redeem and thus recover any loss he claims to have
suffered by reason of the price obtained at the execution sale. Thus, respondent stood to gain rather
than be harmed by the low sale value of the auctioned properties because it possesses the right of
redemption. - Bank Of The Philippine Islands, as Successor-In-Interest of Far East Bank &
Trust Company vs. Cynthia L. Reyes, G.R. No. 182769, February 1, 2012
While it is true that the annotation of the first mortgage to Villar on Galass TCT contained a
restriction on further encumbrances without the mortgagees prior consent, this restriction was
nowhere to be found in the Deed of Real Estate Mortgage. As this Deed became the basis for the

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annotation on Galass title, its terms and conditions take precedence over the standard, stamped
annotation placed on her title. If it were the intention of the parties to impose such restriction, they
would have and should have stipulated such in the Deed of Real Estate Mortgage itself. Moreover,
Villars purchase of the mortgaged property did not violate the prohibition on pactum
commissorium. The power of attorney provision in favor of Villar did not provide that the
ownership over the subject property would automatically pass to Villar upon Galass failure to pay
the loan on time. What it granted was the mere appointment of Villar as attorney-in-fact, with
authority to sell or otherwise dispose of the subject property, and to apply the proceeds to the
payment of the loan. Finally, Villar did not obligate herself to replace the debtor in the principal
obligation upon his buying of the mortgaged property, and could not do so in law without the
creditors consent. Therefore, the obligation to pay the mortgage indebtedness remains with the
original debtors Galas and Pingol. - Pablo P. Garcia vs. Yolanda Valdez Villar, G.R. No. 158891,

June 27, 2012

DRAGNET CLAUSE
As a general rule, a mortgage liability is usually limited to the amount mentioned in the contract.
However, the amounts named as consideration in a contract of mortgage do not limit the amount
for which the mortgage may stand as security if, from the four corners of the instrument, the intent
to secure future and other indebtedness can be gathered. This stipulation is valid and binding
between the parties and is known as the "blanket mortgage clause" also known as the "dragnet
clause. - Ramona Ramos and the Estate of Luis T. Ramos vs. Philippine National Bank, Opal
Portfolio Investments (SPV-AMC), Inc. and Golden Dragon Star Equities, Inc., G.R. No. 178218,
December 14, 2011
JUST COMPENSATION
When the acquisition process under PD 27 remains incomplete and is overtaken by RA 6657, the
process should be completed under RA 6657, with PD 27 and EO 228 having suppletory effect only.
This means that PD 27 applies only insofar as there are gaps in RA 6657; where RA 6657 is
sufficient, PD 27 is superseded.
Moreover, the Court has allowed the grant of interest in expropriation cases where there is delay in
the payment of just compensation. In fact, the interest imposed in case of delay in payments in
agrarian cases is 12% per annum and not 6% as "the imposition x x x is in the nature of damages for
delay in payment which in effect makes the obligation on the part of the government one of
forbearance."
Finally, the constitutional limitation of "just compensation" is considered to be the sum equivalent
to the market value of the property, broadly described to be the price fixed by the seller in open
market in the usual and ordinary course of legal action and competition or the fair value of the
property as between one who receives, and one who desires to sell, if fixed at the time of the actual
taking by the government. Thus, if property is taken for public use before compensation is
deposited with the court having jurisdiction over the case , the final compensation must include
interest on its just value to be computed from the time the property is taken to the time when
compensation is actually paid or deposited with the court. In fine, between the taking of the
property and the actual payment, legal interests accrue in order to place the owner in a position as
good as (but not better than) the position he was in before the taking occurred. - Land Bank of the
Philippines vs. Emiliano R. Santiago, Jr., G.R. No. 182209, October 3, 2012

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LEASE
LEASE OF RURAL AND URBAN LANDS
The well-entrenched principle is that a lease from month-to-month is with a definite period and
expires at the end of each month upon the demand to vacate by the lessor.
The subsequent acceptance by the lessor of rental payments does not, absent any circumstance that
may dictate a contrary conclusion, legitimize the unlawful character of their possession. - Cebu
Bionic Builders Supply, Inc. and Lydia Sia vs. Development Bank of the Philippines, Jose To
Chip, Patricio Yap and Roger Balila, G.R. No. 154366, November 17, 2010
In case the lessee chooses to renew the lease but there are no specified terms and conditions for the
new contract of lease, the same terms and conditions as the original contract of lease shall continue
to govern. - Manila International Airport Authority vs. Ding Velayo Sports Center, Inc , G.R. No.
161718, December 14, 2011
LAND TITLES AND DEEDS
JURISDICTION
It is well-settled that the DAR, through its adjudication arm, i.e., the DARAB and its regional and
provincial adjudication boards, exercises quasi-judicial functions and jurisdiction on all matters
pertaining to an agrarian dispute or controversy and the implementation of agrarian reform laws.
Pertinently, it is provided in the DARAB Revised Rules of Procedure that the DARAB has primary
and exclusive jurisdiction, both original and appellate, to determine and adjudicate all agrarian
disputes involving the implementation of the CARP and related agrarian reform laws. Such
jurisdiction shall extend to cases involving the issuance, correction and cancellation of Certificates
of Land Ownership Award (CLOAs) and Emancipation Patents which are registered with the Land
Registration Authority. - Pedro Gabriel et. al. vs. Murmuray Jamias et. al., G.R. No. 156482,
September 17, 2008
It is a basic rule that jurisdiction is determined by the allegations in the complaint. The peitioners
complaints did not contain any allegation that would, even in the slightest, imply that the issue to be
resolved in this case involved an agrarian dispute which would transfer the jurisdiction to
Department of Agrarian Reform Adjudication Board (DARAB). In the action filed by the petitioner,
the issue to be resolved was who between the petitioner and the private respondents and their
purported predecessors-in-interest, have a valid title over the subject properties in light of the
relevant facts and applicable laws. The case thus involves a controversy relating to the ownership
of the subject properties, which is beyond the scope of the phrase "agrarian dispute." The
jurisdiction must then belong to the Regional Trial Court. - Bases Conversion Development
Authority vs. Provincial Agrarian Reform Officer of Pampanga, Register of Deeds of Angeles
City, Benjamin Poy Lorenzo, Lavernie Poy Lorenzo, Diosdado De Guzman, Rosemary Eng Tay
Tan, Leandro De Guzman, Benjamin G. Lorenzo, Antonio Manalo, and Socorro De Guzman,
G.R. Nos. 155322-29, June 27, 2012

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TORRENS SYSTEM
Banks, their business being impressed with public interest, are expected to exercise more care and
prudence than private individuals in their dealings, even those involving registered lands. The rule
that persons dealing with registered lands can rely solely on the certificate of title does not apply to
banks. - Philippine Trust Company (also known as Philtrust Bank) vs. Hon. Court of Appeals
and Forfom Development Corporation, G.R. No. 150318, November 22, 2010
Banco Filipino is not an ordinary mortgagee, but is a mortgagee-bank, whose business is impressed
with public interest. A banking institution is expected to exercise due diligence before entering into
a mortgage contract. The ascertainment of the status or condition of a property offered to it as
security for a loan must be a standard and indispensable part of its operations. - Maria Torbela,
represented by her heirs, Eulogio Tosino et al vs. Spouses Andres T. Rosario et al, G.R. No.
140528, December 7, 2011
Under the Regalian doctrine embodied in our Constitution, land that has not been acquired from the
government, either by purchase, grant, or any other mode recognized by law, belongs to the State as
part of the public domain. Thus, it is indispensable for a person claiming title to a public land to
show that his title was acquired through such means
It is not enough for the PENRO or CENRO to certify that a land is alienable and disposable. The
applicant for land registration must prove that the DENR Secretary had approved the land
classification and released the land of the public domain as alienable and disposable, and that the
land subject of the application for registration falls within the approved area per verification
through survey by the PENRO or CENRO. In addition, the applicant for land registration must
present a copy of the original classification approved by the DENR Secretary and certified as a true
copy by the legal custodian of the official records. These facts must be established to prove that the
land is alienable and disposable. - Republic of the Philippines vs. Gloria Jaralve substituted
Alan Jess Jaralve Documento, Jr., Edgardo Jaralve, Serafin Uy, Jr., Shella Uy, Lagnada, Say AAng, International Nimfa Pantaleon Starg Lad and Development Corporation, Annie Tan,
Teotimo Cabarrubias, Jessica Daclan, Ma. Emma Ramas, Danilo Deen, and Eric Anthony Deen,
G.R. No. 175177, October 24, 2012
The real purpose of the Torrens system is to quiet title to land and to stop forever any question as
to its legality A Torrens title is generally a conclusive evidence of the ownership of the land
referred to therein.
Section 48 of Presidential Decree No. 1529, otherwise known as the Property Registration Decree,
explicitly provides that [a] certificate of title shall not be subject to collateral attack. It cannot be
altered, modified, or cancelled except in a direct proceeding in accordance with law. - Deogenes O.
Rodriguez vs. Hon. Court of Appeals and Philippine Chinese Charitable Association, Inc., G.R.
No. 184589, June 13, 2013
REGISTRATION
Current doctrine thus seems to be that entry alone produces the effect of registration, whether the
transaction entered is a voluntary or an involuntary one, so long as the registrant has complied
with all that is required of him for purposes of entry and annotation, and nothing more remains to

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be done but a duty incumbent solely on the register of deeds. - Durawood Construction and
Lumber Supply, Inc. vs. Candice S. Bona, G.R. No. 179884, January 25, 2012

The Supreme Court had allowed substantial compliance with the requirement that an applicant for
land registration must prove that the DENR Secretary had approved the land classification and
released the land as alienable and disposable and was lenient with the application of the rule that a
CENRO Certification, by itself does not prove that the land is alienable and disposable. However,
such substantial compliance and leniency will not be allowed where the Land Registration
Authority (LRA) or the DENR oppose the application on the ground that the land subject thereof is
inalienable. - Republic of the Philippines vs. Lydia Capco De Tensuan, represented by Claudia
C. Aruelo, G.R. No. 171136, October 23, 2013
A party claiming ownership over a parcel of land cannot bank on the weakness and defects of the
title of the adverse party but rely on the strength of his claim. - CLT Realty Development
Corporation vs. Phil-Ville Development and Housing Corporation, Republic Of The
Philippines (through the OFFICE OF THE SOLICITOR GENERAL), and the Register of Deeds of
Metro Manila District III, Caloocan, G .R. No. 160728, March 11, 2015
1. The buyer of the property does not automatically becomes a party to the land registration case
after complying with the requirements of Sec. 22 of P.D 1529.
2. Section 108 of Presidential Decree No. 1529 authorizes a person having interest in a registered
property to ask for the amendment and alteration of a certificate of title or the entry of a new
certificate if "new interests not appearing upon the certificate have arisen or been created," "an
omission or error was made in entering a certificate or any memorandum thereon," or "upon any
other reasonable ground." - The Heirs of Eugenio Lopez, Sr. namely, Oscar M. Lopez, Manuel M.
Lopez and Presentacion L. Psinakis vs. The Honorable Francisco Querubin, In His Capacity As
Presiding Judge of the Regional Trial Court of Antipolo, Branch 74, The Heirs of Alfonso
Sandoval and his wife Rosa Ruiz, represented by their Attorney-In-Fact, Mrs. Imelda Rivera
G.R. No. 155405, March 18, 2015
The ministerial duty of the land registration court to issue a writ of possession ceases with respect
to actual possessors of the property under a claim of ownership. Heirs of Eugenio Lopez vs.
Alfonso Sandoval and Roman Ozaeta, Jr., G.R. No. 164092, March 18, 2015
Although the NCIP has the authority to issue temporary restraining orders and writs of injunction,
it was not convinced that private respondents were entitled to the relief granted by the
Commission. Proclamation No. 15 does not appear to be a definitive recognition of private
respondents ancestral land claim, as it merely identifies the Molintas and Gumangan families
as claimants of a portion of the Busol Forest Reservation, but does not acknowledge vested rights
over the same. Since it is required before the issuance of a writ of preliminary injunction that
claimants show the existence of a right to be protected, this Court, previously, ultimately granted
the petition of the City Government of Baguio and set aside the writ of preliminary injunction
issued therein applying stare decisis. - The Baguio Regreening Movement, Inc. vs. Atty. Brain
Masweng G.R. No. 180882, February 27, 2013
INNOCENT PURCHASER FOR VALUE

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The law does not require a person dealing with the owner of registered land to go beyond the
certificate of title as he may rely on the notices of the encumbrances on the property annotated on
the certificate of title or absence of any annotation. Here, petitioners adverse claim is annotated at
the back of the title coupled with the fact that they are in possession of the disputed property. To
[the Court], these circumstances should have put respondents on guard and required them to
ascertain the property being offered to them has already been sold to another to prevent injury to
prior innocent buyers. A person who deliberately ignores a significant fact which would create
suspicion in an otherwise reasonable man is not an innocent purchaser for value. It is a well-settled
rule that a purchaser cannot close his eyes to facts which should put a reasonable man upon his
guard, and then claim that he acted in good faith under the belief that there was no defect in the
title of the vendor. - Spouses Jesus Ching and Lee Poe Tin vs. Spouses Adolfo and Arsenia
Enrile, G.R. No. 156076, September 17, 2008
One can sell only what one owns or is authorized to sell, and the buyer can acquire no more right
than what the seller can transfer legally.
A person dealing with registered land has a right to rely on the Torrens certificate of title and to
dispense with the need of inquiring further except when the party has actual knowledge of facts
and circumstances that would impel a reasonably cautious man to make such inquiry or when the
purchaser has knowledge of a defect or the lack of title in his vendor or of sufficient facts to induce a
reasonably prudent man to inquire into the status of the title of the property in litigation. Adoracion Rosales Rufloe, Alfredo Rufloe and Rodrigo Rufloe vs. Leonarda Burgos, Anita
Burgos, Angelito Burgos, Amy Burgos, Elvira Delos Reyes and Julian C. Tubig, G.R. No.
143573, January 30, 2009
It is a well-settled doctrine that one who deals with property registered under the Torrens system
need not go beyond the same, but only has to rely on the certificates of title, he is charged with
notice only of such burdens and claims as are annotated on the certificates. But, a buyer of real
property in possession of persons other than the seller must be wary and should investigate the
rights of those in possession, for without such inquiry the buyer can hardly be regarded as a buyer
in good faith and cannot have any right over the property.
A purchaser in good faith is one who buys property without notice that some other person has a
right to or interest in such property and pays its fair price before he has notice of the adverse claims
and interest of another person in the same property.
Laches is defined as the failure to assert a right for an unreasonable and unexplained length of time,
warranting a presumption that the party entitled to assert it has either abandoned or declined to
assert it. - The Heirs of Romana Saves, et al. vs. The Heirs of Escolastico Saves, et al., G.R. No.
152866, October 6, 2010
REMEDIES
Since the indefeasibility of a title does not attach to titles secured by fraud and misrepresentation, it
was as if no title at all was ever issued in this case to the petitioner and therefore this is hardly the
occasion to talk of collateral attack against a title. - Gregorio Araneta University Foundation vs.
The Regional Trial Court of Kalookan City, G.R. No. 139672, March 4, 2009

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The general rule is that in the case of two certificates of title, purporting to include the same land,
the earlier in date prevails. Applying the principle Primus Tempore, Portior Jure (First in Time,
Stronger in Right), it was found that ALIs title was the valid one having been derived from the
earlier OCT. - Spouses Morris Carpo and Socorro Carpo vs. Ayala Land, Incorporated, G.R. No.
166577, February 3, 2010
An action for declaration of nullity of title and recovery of ownership of real property, or reconveyance, is a real action but it is an action in personam, for it binds a particular individual only
although it concerns the right to a tangible thing. Any judgment therein is binding only upon the
parties properly impleaded. The effect of the said judgment cannot be extended to BPI Family and
the spouses Chan by simply issuing an alias writ of execution against them. No man shall be affected
by any proceeding to which he is a stranger, and strangers to a case are not bound by any judgment
rendered by the court. In the same manner, a writ of execution can be issued only against a party
and not against one who did not have his day in court. - Emerita Muoz vs. Atty. Victoriano R.
Yabut, Jr. and Samuel Go Chan, G.R. No. 142676, June 6, 2011
The rights and claims vested by virtue of a decision of the Cadastral Court, adjudicating said lot to
different persons which was never implemented nor executed despite the lapse of more than thirty
years cannot prescribed for failure to fully execute the same. And an action for reconveyance of
registered land based on implied trust prescribes in ten years, the point of reference being the date
of registration of the deed or the date of the issuance of the certificate of title over the property,
however, the ten-year prescriptive period applies only when the person enforcing the trust is not in
possession of the property. - Jose Fernando, Jr., Zoilo Fernando, Norma Fernando Banares,
Rosario Fernando Tangkencgo, Heirs of Tomas Fernando, represented by Alfredo V.
Fernando, Heirs of Guillermo Fernando, represented by Ronnie H. Fernando, Heirs of
Iluminada Fernando, represented by Benjamin Estrella and Heirs of Germogena Fernando
vs. Leon Acuna, Hermogenes Fernando, Heirs Of Spouses Antonio Fernando and Felisa
Camacho, represented by Hermogenes Fernando, G.R. No. 161030, September 14, 2011
As correctly pointed out by petitioner, we had emphasized in Republic v. Holazo that the term any
other document in paragraph (f) refers to reliable documents of the kind described in the
preceding enumerations and that the documents referred to in Section 2(f) may be resorted to only
in the absence of the preceding documents in the list. Therefore, the party praying for the
reconstitution of a title must show that he had, in fact, sought to secure such documents and failed
to find them before presentation of other documents as evidence in substitution is allowed. Thus,
we stated in Holazo that When Rep. Act No. 26, Section 2(f), or 3(f) for that matter, speaks of any
other document, it must refer to similar documents previously enumerated therein or documents
ejusdem generis as the documents earlier referred to. The documents alluded to in Section 3(f)
must be resorted to in the absence of those preceding in order the petitioner for reconstitution fails
to show that he had, in fact, sought to secure such prior documents (except with respect to the
owners duplicate copy of the title which it claims had been, likewise, destroyed) and failed to find
them, the presentation of the succeeding documents as substitutionary evidence is proscribed.
Republic of the Philippines vs. Conception Lorenzo, et al., G.R. No. 172338, November 10,
2012
NOTE: Registration of patents is Excluded from the 2015 Bar Examinations
A certificate of title issued pursuant to a homestead patent becomes indefeasible after one year, is
subject to the proviso that the land covered by said certificate is a disposable public land within

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the contemplation of the Public Land Law. In this case, the subject property is part of the
Matchwood Forest Reserve and is inalienable and not subject to disposition. Being contrary to the
Public Land Law, the Homestead Patent and OCT issued in respondents name are void; and the
right of petitioner Republic to seek cancellation of such void patent/title and reversion of the
subject property to the State is imprescriptible. - Republic of the Philippines Bureau Of Forest
Development vs. Vicente Roxas and the Register of Deeds of Oriental Mindoro, G.R. No.
157988, December 11, 2013
PRESCRIPTION
When the plaintiff in such action is not in possession of the subject property, the action prescribes
in ten years from the date of registration of the deed or the date of the issuance of the certificate of
title over the property. When the plaintiff is in possession of the subject property, the action, being
in effect that of quieting of title to the property, does not prescribe. - Heirs Of Domingo Valientes
vs. Hon. Reinerio (Abraham) B. Ramas, Acting Presiding Judge, RTC, Branch 29, 9th Judicial
Region, San Miguel, Zamboanga del Sur and Vilma V. Minor, G.R. No. 157852, December 15,
2010
PUBLIC LAND ACT
The ultimate objective of the law is "to promote public policy, that is, to provide home and decent
living for destitutes, aimed at providing a class of independent small landholders which is the
bulwark of peace and order. - Barceliza P. Capistrano vs. Darryl Limcuando and Fe S. Sumiran,
G.R. No. 152413, February 13, 2009
Nowhere in Commonwealth Act No. 141 does it say that the right to repurchase under Section 119
thereof could not be extended by mutual agreement of the parties involved. Neither would
extending the period in Section 119 be against public policy as the evident purpose of the Public
Land Act, especially the provisions thereof in relation to homesteads, is to conserve ownership of
lands acquired as homesteads in the homesteader or his heirs. - Rodolfo Morla vs. Corazon
Nisperos Belmonte, et al., G.R. No. 171146, December 7, 2011
In the present case, it is settled that Homestead Patent was issued to Gerardo on January 12, 1951
and the Absolute Deed of Sale between Gerardo and Juan was executed on July 10, 1951, after a
lapse of only six months. Irrefragably, the alienation of the subject properties took place within the
five-year prohibitory period under Section 118 of the Public Land Act, as amended as such, the sale
by Gerardo to Juan is null and void right from the very start. As a void contract, the Absolute Deed
of Sale dated July 10, 1951 produces no legal effect whatsoever in accordance with the principle
quod nullum est nullum producit effectum, thus, it could not have transferred title to the subject
properties from Gerardo to Juan and there could be no basis for the issuance of TCT in Juans name.
A void contract is also not susceptible of ratification, and the action for the declaration of the
absolute nullity of such a contract is imprescriptible. To reiterate, Section 118 of the Public Land
Act, as amended, reads that, except in favor of the Government or any of its branches, units, or
institutions, or legally constituted banking corporations, lands acquired under free patent or
homestead provisions shall not be subject to encumbrance or alienation from the date of the
approval of the application and for a term of five years from and after the date of issuance of the
patent or grant. The provisions of law are clear and explicit. A contract which purports to alienate,
transfer, convey, or encumber an homestead within the prohibitory period of five years from the
date of the issuance of the patent is void from its execution. In a number of cases, this Court has

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held that such provision is mandatory. Alejandro Binayug and Ana Binayug vs. Eugenio
Ugaddan, et al., G.R. No. 181623, December 5, 2012
TENANCY
While a tenant is not required to be physically present in the land at all hours of the day and night,
such doctrine cannot be stretched to apply to a case wherein the supposed tenant has chosen to
reside in another place so far from the land to be cultivated that it would be physically impossible
to be present therein with some degree of constancy as to allow the tenant to cultivate the same. Leonardo Tarona, Eugenia Tarona, Nita Tarona, Luis Tarona, Rosalinda Tarona, Apolonia
Tarona, Carlos Tarona, Lourdes Tarona and Rogelio Tarona vs. Court of Appeals (Ninth
Division), Gay T. Leao, Lemuel T. Leao, Noel T. Leao, Jedd Anthony Leao Cuison and
Jason Anthony Leao Cuison, G.R. No. 170182, June 18, 2009
TORTS AND DAMAGES
TORTFEASOR
When the proximate cause of the accident is the lack of the due care and prudence of the deceased,
the doctrine of vicarious liability will not apply. Absent any showing that the employer failed to
exercise due care and diligence in the selection and supervision of its employees, liability will not
attach to it. - Vallacar Transit vs. Jocelyn Catubig, G.R. No. 175512, May 30, 2011
MORAL DAMAGES
Moral damages are awarded to rape victims without need of proof other than the fact of rape under
the assumption that the victim suffered moral injuries from the experience she underwent. On the
other hand, when a crime is committed with an aggravating circumstance either as qualifying or
generic, an award of exemplary damages is justified under Article 2230 of the New Civil Code. People of the Philippines vs. Roger Tejero, G.R. No. 187744, June 20, 2012
EXEMPLARY OR CORRECTIVE DAMAGES
The award of exemplary damages is justified if an aggravating circumstance, either qualifying or
generic, accompanies the crime. In the case at bar, the qualifying circumstance of evident
premeditation was duly alleged in the Information and proved during the trial. Therefore, the trial
court's award of the amount of P30,000.00 as exemplary damages to heirs of the victim, must be
reinstated. - People of the Philippines vs. Gary Alinao, G.R. No. 191256, September 18, 2013
ATTORNEYS FEES
The stipulation on attorneys fees contained in the said Promissory Note constitutes what is known
as a penal clause. A penalty clause, expressly recognized by law, is an accessory undertaking to
assume greater liability on the part of the obligor in case of breach of an obligation. The obligor
would then be bound to pay the stipulated indemnity without the necessity of proof on the
existence and on the measure of damages caused by the breach. It is well-settled that so long as
such stipulation does not contravene law, morals, or public order, it is strictly binding upon the
obligor. The attorneys fees so provided are awarded in favor of the litigant, not his counsel. It is

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improper for both the RTC and the CA to increase the award of attorneys fees despite the express
stipulation contained in the said Promissory Note since it is not intended to be compensation for
respondents counsel but was rather in the nature of a penalty or liquidated damages. Soledad Leonor Pea Suatengco and Antonio Esteban Suatengco vs. Carmencita O. Reyes, G.R.
No. 162729, December 17, 2008
While the body of the Decision quoted the agreement of the parties stating the compensation as
20% contingent fee computed on the value to be recovered by favorable judgment on the cases. It is
basic that when there is a conflict between the dispositive portion or fallo of a Decision and the
opinion of the court contained in the text or body of the judgment, the former prevails over the
latter. This rule rests on the theory that the fallo is the final order while the opinion in the body is
merely a statement ordering nothing. - The Law Firm of Raymundo A. Armovit vs. Court of
Appeals and Bengson Commercial Building, Inc., G.R. No. 154559, October 5, 2011
Both the RTC and the Court of Appeals held DBP liable for attorneys fees and costs of suit because
said courts believed that DBP should have been more aggressive in pursuing its claim against
Central. In the absence of stipulation, attorneys fees may be recovered as actual or compensatory
damages under any of the circumstances provided for in Article 2208 of the Civil Code. Even if it
were true that DBP had a hand in the transfer of Traverses insurance coverage to Central, such act
is not sufficient to hold it solidarily liable with Central for the payment of attorneys fees and cost of
litigation under the above provision of the Civil Code. - Development Bank of the Philippines vs.
Traverse Development Corporation and Central Surety and Insurance Company, G.R. No.
169293, October 5, 2011
GRADUATION OF DAMAGES
The increase in the award of damages is predicated on the qualifying circumstances present in the
case and not on the penalty imposed. In case of moral damages, it need not be alleged and proved
as the emotional suffering of the heirs from the vicious killing of the victim cannot be denied. As
to the loss of earning capacity, the same need not be proved, as an exception, when the victim is
self-employed and earning less than the minimum wage under current labor laws or when
employed as a daily wage worker earning less than the minimum wage under current labor laws.
- People of the Philippines vs. Arnold Garchitorena Y Camba A.K.A. Junior; Joey Pamplona
A.K.A. Nato and Jessie Garcia Y Adorino, G. R. No. 175605, August 28, 2009
In criminal cases, the basis of the increase in the award of damages is the heinousness of the offense
and does not depend on the penalty that the convict shall suffer, therefore, the existence of the
mitigating circumstance of minority shall not produce the effect of reduction of damages. - People
of the Philippines vs. Richard O. Sarcia, G.R. No. 169641, September 10, 2009

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