In the case G.R. No. L-7554, the Supreme Court of the Philippines ruled on a dispute regarding the estate of Amario Cortez, where Narciso Cortez claimed to be the rightful heir against the decree that recognized Guillerma Abarquez as the sole heir. The court found no fraud in the original proceedings and upheld the previous decisions, stating that Narciso's claim was filed too late and did not constitute grounds for annulment. The court ultimately reversed the lower court's decision and dismissed the complaint, affirming the legitimacy of the vesting order in favor of the United States due to Guillerma's marriage to a Japanese national.
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G.R. No. L-7554
In the case G.R. No. L-7554, the Supreme Court of the Philippines ruled on a dispute regarding the estate of Amario Cortez, where Narciso Cortez claimed to be the rightful heir against the decree that recognized Guillerma Abarquez as the sole heir. The court found no fraud in the original proceedings and upheld the previous decisions, stating that Narciso's claim was filed too late and did not constitute grounds for annulment. The court ultimately reversed the lower court's decision and dismissed the complaint, affirming the legitimacy of the vesting order in favor of the United States due to Guillerma's marriage to a Japanese national.
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14125, 430 AM GR. No. L-7554
The LAWPHIL Project
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Today is Monday, August 04, 2025
Republic of the Philippines
‘SUPREME COURT
Manila
EN BANC,
G.R. No, L-7554 ‘August 31, 1955
NARCISO CORTEZ, plaintiff-appelle,
vs,
HERBERT BROWNELL, JR,, in his capacity as Attorney General of the Uni
GUILLERMA ABARQUEZ, defendant-appollee;
REPUBLIC OF THE PHILIPPINES, intervenor-appeliant.
1d States, defendant-appeliant,
Assistant Attorney General Dallas S. Townsend of the United States, Assistant Attomey General Rowland F. Firks of
the United States Department of Justice, Special Assistant to the Attorney General Staneley Gilbert of the United
States, Special Assistants to the Attorney General of the United States Juan T. Santos and Lino M. Patajo for
appellant.
Chief Special Attorney Department of Justice Alfredo Catolico and Special Attorney Fernando Barrion for intervenor,
Republic of the Philippines.
‘Salvador Ibarreta for appellee.
Aportadera and Arceilla for the defendant and appellee
BENGZON, Acting, C. J.:
(On March 4, 1947, in Special Proceeding No. 56 for the summary settlement of the estate of the deceased Amario
Cortez, the Court of First Instance of Davao decreed that Guillerma Abarquez, his mother, was his only legitimate
heir, entitled to his properties including two parcels of land in the City of Davao, described in Transfer Certificate of
Title No, 718 of that province. It appearing that she was married to K, Matsuo, a Japanese, the court ordered that
copy of its decree shall be given to the Enemy Property Custodian of the U. S. in Davao,
(On May 18, 1948, the Philippine Alien Property Administration issued Vesting Order No. P-644, (under the authority
of the Trading with the Enemy Acts, as amended, the Philippine Property Act of 1946 and other legal provisions),
declaring that said landed property, being owned by a national of Japan, was thereby vested in the Philippine Alien
Property Administrator for the use and benefit of the United States etc,
(On January 29, 1951, Narciso Cortez, Filipino, filed a complaint in the Court of First Instance of Davao to annul the
above judicial decree and Vesting Order in so far as one-half of the property was concemed. He alleged in
substance that he was the lawful husband of Guillerma Abarquez and the father of Amario Cortez; that as such
father, he was entitled to one-half of Amario's estate; that the court decree was void because it had been obtained
thru false and fraudulent representations, inasmuch as the attorney who had filed the petition (Atty. Gonzales)
knowing he was alive, asserted that the only heir of Amario was his mother Guillerma Abarquez; and that,
consequently, the Vesting Order was also void, at least in so far as it affected his one-half share of the assets of his
dead son.
The Atforney-General of the United States, who was substituted as party defendant vice the Philippine Alien
Property Administrator presented an answer opposing plaintiffs demand, denying the alleged fraudulent
representations, and asserting that the court had no jurisdiction to entertain the suit, because under the Philippine
Property Act of 1946, a formal notice of claim had to be filed with the Alien Properly Administration before the
institution of a suit; and the plaintif failed to comply with such condition, with the result that the action was, in effect,
a suit against the United States government without its consent. Said defendant also averred that the false
representations supposedly made to secure the award in favor of Guillerma Abarquez were not sufficient cause of
annulment, because they did not constitute extrinsic or collateral fraud.
The Republic of the Philippines intervened, and made common cause with the Attoriey-General of the U. S,
Guillerma Abarquez was impleaded as defendant. In her answer, however, she prayed that judgment be rendered in
accordance with the complaint, acknowledging her to be the legal owner of the other half of the property in question,
ntps:awphil netjuajuaju1@55iaug956/or_+-7554_1955.html14125, 430 AM GR. No. L-7554
After hearing both sides, the court declared itself with jurisdiction and found no fraud in the procurement of the
judicial award, inasmuch as Atty. Gonzales came to know plaintiff was alive only after the said award had been duly
promulgated. Said the court on this point,
Itis pointed out by the counsel for the plaintiff that fraud was committed in the procurement of the question
Order of this Court in Special Proceedings No. 56, claiming that when Atty. Gonzales filed the petition he was
advised by Corcuera that the plaintiff was alive, and that was one month after Corcuera received the power of
attomey and the letter accompanying the same. Although Atty. Gonzales admitted that he was informed by
Corcuera to the effect that the plaintiff was alive, yet it was only after March, 1947, when the Order was
already issued.
Apparently Corcuera was not sure of the date, whereas Atty, Gonzales was certain that his knowledge of the
plaintiff being alive was only had after March, 1947, when the question order was already issued.
Considering that the testimony of Corcuera as pointed out is noticeably uncertain with respect to dates, it
cannot prevail over the testimony of Atty, Gonzales, who gave the exact date that it was in March 1947, when
he was advised by Mr. Corcuera.
Nevertheless, the Court granted the relief demanded by plaintiff and his wife Guillerma Abarquez, following its
opinion that Atty. Gonzales, as an employee of the Philippine Alien Property Administration “should have prevented
the vesting of the properties" by said office, when he got information that Narciso Cortez was sill alive.
The Attorney-General of the United States and the Republic of the Philippines appealed. In their joint brief they
contend, in their first two assignments of error, that the lower court had no jurisdiction over the Attorney-General nor
over the subject matter. By reason of such assignments the appeal is here, as involving a question of jurisdiction.
We do nat find it necessary, however, to discuss this phase of the controversy, because we are of the opinion that
even if the court had jurisdiction, the appealed decision must be reversed and the complaint dismissed
According to the Rules, the court order of March 4, 1947 adjudging the properties of Amario to his mother Guillerma
‘Abarquez, as his only heir, could be annulled or modified to give other heirs (Narciso, the father) thelr share within
two years after March 4, 1947. When on January 29, 1951 Narciso Cortez began this proceeding more than two
years had already elapsed. He knew that under the Rules he had no chance; therefore he elected another course of
action: a direct attack on the ground of fraud, which is made to consist in the alleged knowledge (before the
institution of the proceeding for the settlement of Amario's estate) of Atty. Gonzales that he was living, and despite
such knowledge, Atty. Gonzales falsely asserted that he (Narciso) was dead. But the lower court believed Gonzales’
testimony that he came to know Narciso was alive only affer the award had been promulgated. So, the court found
there was no fraud in obtaining the Court adjudication. Nevertheless, reasoning that after knowing Narciso was
alive, Gonzales should have impeded the issuance of the Vesting Order, the court annulled both the judicial order,
and the Vesting Order based thereon. Now, this is a prejudicial non sequitur. In the first place it is not shown how
Atty. Gonzales could have prevented the promulgation of the Vesting Order. He was just an attorney in the office of
the Philippine Alien Property Administrator. In the second place, no relation existed between Narciso Cortes and
Atty. Gonzales imposing on the latter the active duly to protect the former's interests. In the third place, granting that
Atty. Gonzales neglected his duty (if any) to prevent the forfeiture, how could such neglect nullify the judicial order
already issued, and which was final and irrevocable?
Now then, ifthe order of March 4, 1947 cannot be declared null and void by reason of a subsequent neglect of duty
of Gonzales, how again may the Vesting Order be annulled, being—as it is—based upon an outstanding judicial
declaration that the property belongs to Guillerma Abarquez married to a Japanese, i.e. a national of enemy country
(Japan)?
Detecting this flaw in the appealed decision, the appellees claim in their brief that the lower court erred in nat finding
that Atty. Gonzales acted fraudulently, because “in September 1946, he knew that plaintiff and his son Loreto were
alive and in Manila, and yet he concealed this fact from the Court and misrepresented them to be dead when he
filed on January 6, 1947, the petition for the summary settlement of the estate of Amario,”
This contention is premised on the testimony of Vedasto Corcuera who had allegedly told Gonzales in September
1946 that “according to Loreto Cortez his father is stil living.” Atty. Gonzales affirmed under oath that Corcuera gave
him the information after March 1947, And the court believed him; rightly, because Atty, Gonzales was presented as
witness by the plaintiff himself, Anyway even if it were true that Corcuera spoke to him in 1946, Atty. Gonzales could
riot be blamed in discounting such hearsay evidence, in the face of positive information given to him of Narciso's
death by Ciriaco Cavanes (who had engaged him to file the petition and also by Guillerma Abarquez, information
which he was justified to believe, since Guillerma's marriage to the Japanese could only be explained with her
previous husband's demise. In any event, the refusal of Atty. Gonzales to believe that Narciso was alive does not by
any means constitute fraud. Much less does it constitute extrinsic or collateral fraud, since his fault, at most was the
Unintentional presentation of false testimony that Narciso was dead; or in the concealment (also unintentional) of the
fact that Narciso was alive. And we have recently ruled that presentation of false testimony or the concealment of
evidentiary facts does not per se constitute extrinsic fraud, the only kind of fraud sufficient to annul a court decision,
ntps:iawphil netjuajuaju1@55iaug956/or_+-7554_1955.ntml14125, 430 AM GR. No. L-7554
‘Anyway the deception by the Floreses, if any, was intrinsic, being in the same category as presentation of
perjured testimony or false evidence. Such fraud does not prevent application of res judicata. According to
repeated decisions, only extrinsic fraud in procuring a judgment is ground to nullify it. (Arsenio Escudero et a.
vs. Gertrudo Flores et als.,” G. R. NO. L-7401, June 25, 1955.) (Citing many cases.)
There is therefore no ground to annul the court's adjudication of March 4, 1947. And so long as it stands, the Vesting
(Order must also stand.
‘And this plaintiff has only himself to blame. He was advised on time by Atty. Gonzales that amendment of the court
decree could be obtained by mation within two years, yet he did not take appropriate action, Furthermore he
separated from his wife for many years (since 1925), and took no legal steps when she was living with, or when she
married the Japanese, thereby allowing the impression to prevail in Davao that he was already dead. He has to bear
the consequences.
If it be argued that Guillerma's marriage to the Japanese was void, and therefore she was not an alien enemy
whose property is subject to forfeiture, the answer is that according to existing court order, she is married to the
Japanese K. Matsuo. It should be remembered that under the law then in force.
‘Any marriage subsequently contracted by any person during the lifetime of the first spouse of such person
with any person other than such first spouse shall be illegal and void from its performance, unless:
(2) The first marriage was annulled or dissolved:
(b) The first spouse had been absent for seven consecutive years at the time of the second marriage without
the spouse present having news of the absentee being alive, or the absentee being generally considered as
dead and believed to be so by the spouse present at the lime of contracting such subsequent marriage, the
marriage so contracted being valid in either case until declared null and void by a competent court. (Sec. 29
Art. 3613 Civil Code.) (Emphasis ours.)
The appealed decision is reversed, the complaint is dismissed and the questioned orders are sustained. Costs
against plaintif-appellee, So ordered,
‘Montemayor, Reyes, A., Jugo, Bautista Angelo, Labrador, Concepcion and Reyes, J. B. L., JJ., concur.
Footnotes
"Supra, p. 240.
dex Ae
ntps:awphil netjugjuaju1@55iaug956/or_F-7554_1955.ntml