G.R. No. 133895 October 2, 2001
ZENAIDA M. SANTOS, petitioner,
vs.
CALIXTO SANTOS, ALBERTO SANTOS, ROSA SANTOS-CARREON and ANTONIO SANTOS, respondents.
QUISUMBING, J.:
This petition for review1 seeks to annul
and set aside the decision date March 10, 1998 of the Court of Appeals
that affirmed the decision of the Regional Trial Court of Manila, Branch
48, dated March 17, 1993. Petitioner also seeks to annul the resolution
that denied her motion for reconsideration.
Petitioner Zenaida M. Santos is the widow of Salvador
Santos, a brother of private respondents Calixto, Alberto, Antonio, all
surnamed Santos and Rosa Santos-Carreon.
The spouses Jesus and Rosalia Santos owned a parcel
of land registered under TCT No. 27571 with an area of 154 square
meters, located at Sta. Cruz Manila. On it was a four-door apartment
administered by Rosalia who rented them out. The spouses had five
children, Salvador, Calixto, Alberto, Antonio and Rosa.
On January 19, 1959, Jesus and Rosalia executed a
deed of sale of the properties in favor of their children Salvador and
Rosa. TCT No. 27571 became TCT No. 60819. Rosa in turn sold her share
to Salvador on November 20, 1973 which resulted in the issuance of a new
TCT No. 113221. Despite the transfer of the property to Salvador,
Rosalia continued to lease receive rentals form the apartment units.1âwphi1.nêt
On November 1, 1979, Jesus died. Six years after or
on January 9, 1985, Salvador died, followed by Rosalia who died the
following month. Shortly after, petitioner Zenaida, claiming to be
Salvador's heir, demanded the rent from Antonio Hombrebueno,2
a tenant of Rosalia. When the latter refused to pay, Zenaida filed and
ejectment suit against him with the Metropolitan Trial Court of Manila,
Branch 24, which eventually decided in Zenaida's favor.
On January 5, 1989, private respondents instituted an
action for reconveyance of property with preliminary injunction against
petitioner in the Regional Trial Court of Manila, where they alleged
that the two deeds of sale executed on January 19, 1959 and November 20,
1973 were simulated for lack of consideration. They were executed to
accommodate Salvador in generation funds for his business and providing
him with greater business flexibility.
In her Answer, Zenaida denied the material
allegations in the complaint as special and affirmative defenses, argued
that Salvador was the registered owner of the property, which could
only be subjected to encumbrances or liens annotated on the title; that
the respondents' right to reconveyance was already barred by
prescription and laches; and that the complaint state no cause of
action.
On March 17, 1993, the trial court decided in private respondents' favor, thus:
WHEREFORE, viewed from all the foregoing
considerations, judgment is hereby made in favor of the plaintiffs and
against the defendants:
a) Declaring Exh. "B", the deed of sale executed by
Rosalia Santos and Jesus Santos on January 19, 1959, as entirely null
and void for being fictitious or stimulated and inexistent and without
any legal force and effect:
b) Declaring Exh. "D", the deed of sale executed by
Rosa Santos in favor of Salvador Santos on November 20, 1973, also as
entirely null and void for being likewise fictitious or stimulated and
inexistent and without any legal force and effect;
c) Directing the Register of Deeds of Manila to
cancel Transfer Certificate of Title No. T-113221 registered in the name
of Salvador Santos, as well as, Transfer Certificate of Title No. 60819
in the names of Salvador Santos, Rosa Santos, and consequently
thereafter, reinstating with the same legal force and effect as if the
same was not cancelled, and which shall in all respects be entitled to
like faith and credit; Transfer Certificate of Title No. T-27571
registered in the name of Rosalia A. Santos, married to Jesus Santos,
the same to be partitioned by the heirs of the said registered owners in
accordance with law; and
d) Making the injunction issued in this case permanent.
Without pronouncement as to costs.
SO OREDERED.3
The trial court reasoned that notwithstanding the
deeds of sale transferring the property to Salvador, the spouses Rosalia
and Jesus continued to possess the property and to exercise rights of
ownership not only by receiving the monthly rentals, but also by paying
the realty taxes. Also, Rosalia kept the owner's duplicate copy of the
title even after it was already in the name of Salvador. Further, the
spouses had no compelling reason in 1959 to sell the property and
Salvador was not financially capable to purchase it. The deeds of sale
were therefore fictitious. Hence, the action to assail the same does
not prescribe.4
Upon appeal, the Court of Appeals affirmed the trial
court's decision dated March 10, 1998. It held that in order for the
execution of a public instrument to effect tradition, as provided in
Article 1498 of the Civil Code,5 the vendor shall have had
control over the thing sold, at the moment of sale. It was not enough
to confer upon the purchaser the ownership and the right of possession.
The thing sold must be placed in his control. The subject deeds of
sale did not confer upon Salvador the ownership over the subject
property, because even after the sale, the original vendors remained in
dominion, control, and possession thereof. The appellate court further
said that if the reason for Salvador's failure to control and possess
the property was due to his acquiescence to his mother, in deference to
Filipino custom, petitioner, at least, should have shown evidence to
prove that her husband declared the property for tax purposes in his
name or paid the land taxes, acts which strongly indicate control and
possession. The appellate court disposed:
WHEREFORE, finding no reversible error in the
decision appealed from, the same is hereby AFFIRMED. No pronouncement
as to costs.
SO ORDERED.6
Hence, this petition where petitioner avers that the Court of Appeals erred in:
I.
… HOLDING THAT THE OWNERSHIP OVER THE LITIGATED
PROPERTY BY THE LATE HUSBAND OF DEFENDANT-APPELLANT WAS AFFECTED BY HIS
FAILURE TO EXERCISE CERTAIN ATTRIBUTES OF OWNERSHIP.
II.
…HOLDING THAT DUE EXECUTION OF A PUBLIC INSTRUMENT IS NOT EQUIVALENT TO DELIVERY OF THE LAND IN DISPUTE.
III.
…NOT FINDING THAT THE CAUSE OF ACTION OF ROSALIA SANTOS HAD PRESCRIBED AND/OR BARRED BY LACHES.
IV.
… IGNORING PETITIONER'S ALLEGATION TO THE EFFECT THAT
PLAINTIFF DR. ROSA [S.] CARREON IS NOT DISQUALIFIED TO TESTIFY AS TO
THE QUESTIONED DEEDS OF SALE CONSIDERING THAT SALVADOR SANTOS HAS LONG
BEEN DEAD.7
In this petition, we are asked to resolve the following:
1. Are payments of realty taxes and retention of possession indications of continued ownership by the original owners?
2. Is a sale through a public instrument tantamount to delivery of the thing sold?
3. Did the cause of action of Rosalia Santos and her heirs prescribe?
4. Can petitioner invoke the "Dead Man's Statute?"8
On the first issue, petitioner contends that the
Court of Appeals erred in holding that despite the deeds of sale in
Salvador's favor, Jesus and Rosalia still owned the property because the
spouses continued to pay the realty taxes and possess the property.
She argues that tax declarations are not conclusive evidence of
ownership when not supported by evidence. She avers that Salvador
allowed his mother to possess the property out of respect to her in
accordance with Filipino values.
It is true that neither tax receipts nor declarations
of ownership for taxation purposes constitute sufficient proof of
ownership. They must be supported by other effective proofs.9
These requisite proofs we find present in this case. As admitted by
petitioner, despite the sale, Jesus and Rosalia continued to possess and
administer the property and enjoy its fruits by leasing it to third
persons.10 Both Rosa and Salvador did not exercise any right of ownership over it.11 Before
the second deed of sale to transfer her ½ share over the property was
executed by Rosa, Salvador still sought she permission of his mother.12 Further, after Salvador registered the property in his name, he surrendered the title to his mother.13 These are clear indications that ownership still remained with the original owners. In Serrano vs. CA,
139 SCRA 179, 189 (1985), we held that the continued collection of
rentals from the tenants by the seller of realty after execution of
alleged deed of sale is contrary to the notion of ownership.
Petitioner argues that Salvador, in allowing her
mother to use the property even after the sale, did so out of respect
for her and out of generosity, a factual matter beyond the province of
this Court.14 Significantly, in Alcos vs. IAC 162
SCRA 823, 837 (1988), we noted that the buyer's immediate possession and
occupation of the property corroborated the truthfulness and
authenticity of the deed of sale. Conversely, the vendor's continued
possession of the property makes dubious the contract of sale between
the parties.
On the second issue, is a sale through a public
instrument tantamount to delivery of the thing sold? Petitioner in her
memorandum invokes Article 147715 of the Civil Code which
provides that ownership of the thing sold is transferred to the vendee
upon its actual or constructive delivery. Article 1498, in turn,
provides that when the sale is made through a public instrument, its
execution is equivalent to the delivery of the thing subject of the
contract. Petitioner avers that applying said provisions to the case,
Salvador became the owner of the subject property by virtue of the two
deeds of sale executed in his favor.
Nowhere in the Civil Code, however, does it provide
that execution of a deed of sale is a conclusive presumption of delivery
of possession. The Code merely said that the execution shall be
equivalent to delivery. The presumption can be rebutted by clear and
convincing evidence.16 Presumptive delivery can be negated by the failure of the vendee to take actual possession of the land sold.17
In Danguilan vs. IAC, 168 SCRA 22, 32 (1988),
we held that for the execution of a public instrument to effect
tradition, the purchaser must be placed in control of the thing sold.
When there is no impediment to prevent the thing sold from converting to
tenancy of the purchaser by the sole will of the vendor, symbolic
delivery through the execution of a public instrument is sufficient.
But if, notwithstanding the execution of the instrument, the purchaser
cannot have the enjoyment and material tenancy nor make use of it
himself or through another in his name, then delivery has not been
effected.
As found by both the trial and appellate courts and
amply supported by the evidence on record, Salvador was never placed in
control of the property. The original sellers retained their control
and possession. Therefore, there was no real transfer of ownership.
Moreover, in Norkis Distributors, Inc. vs. CA, 193 SCRA 694, 698-699 (1991), citing the land case of Abuan vs. Garcia,
14 SCRA 759 (1965), we held that the critical factor in the different
modes of effecting delivery, which gives legal effect to the act is the
actual intention of the vendor to deliver, and its acceptance by the
vendee. Without that intention, there is no tradition. In the instant
case, although the spouses Jesus and Rosalia executed a deed of sale,
they did not deliver the possession and ownership of the property to
Salvador and Rosa. They agreed to execute a deed of sale merely to
accommodate Salvador to enable him to generate funds for his business
venture.
On the third issue, petitioner argues that from the
date of the sale from Rosa to Salvador on November 20, 1973, up to his
death on January 9, 1985, more or less twelve years had lapsed, and from
his death up to the filing of the case for reconveyance in the court a quo
on January 5, 1989, four years had lapsed. In other words, it took
respondents about sixteen years to file the case below. Petitioner
argues that an action to annul a contract for lack of consideration
prescribes in ten years and even assuming that the cause of action has
not prescribed, respondents are guilty of laches for their inaction for a
long period of time.
Has respondents' cause of action prescribed? In Lacsamana vs. CA,
288 SCRA 287, 292 (1998), we held that the right to file an action for
reconveyance on the ground that the certificate of title was obtained by
means of a fictitious deed of sale is virtually an action for the
declaration of its nullity, which does not prescribe. This applies
squarely to the present case. The complaint filed by respondent in the
court a quo was for the reconveyance of the subject property to
the estate of Rosalia since the deeds of sale were simulated and
fictitious. The complaint amounts to a declaration of nullity of a void
contract, which is imprescriptible. Hence, respondents' cause of
action has not prescribed.
Neither is their action barred by laches. The
elements of laches are: 1) conduct on the part of the defendant, or of
one under whom he claims, giving rise to the situation of which the
complaint seeks a remedy; 2) delay in asserting the complainant's
rights, the complainant having had knowledge or notice of the
defendant's conduct as having been afforded an opportunity to institute a
suit; 3) lack of knowledge or notice on the part of the defendant that
the complainant would assert the right in which he bases his suit; and
4) injury or prejudice to the defendant in the event relief is accorded
to the complainant, or the suit is not held barred.18 These elements must all be proved positively. The conduct which caused the complaint in the court a quo
was petitioner's assertion of right of ownership as heir of Salvador.
This started in December 1985 when petitioner demanded payment of the
lease rentals from Antonio Hombrebueno, the tenant of the apartment
units. From December 1985 up to the filing of the complaint for
reconveyance on January 5, 1989, only less than four years had lapsed
which we do not think is unreasonable delay sufficient to bar
respondents' cause of action. We likewise find the fourth element
lacking. Neither petitioner nor her husband made considerable
investments on the property from the time it was allegedly transferred
to the latter. They also did not enter into transactions involving the
property since they did not claim ownership of it until December 1985.
Petitioner stood to lose nothing. As we held in the same case of Lacsamana vs. CA,
cited above, the concept of laches is not concerned with the lapse of
time but only with the effect of unreasonble lapse. In this case, the
alleged 16 years of respondents' inaction has no adverse effect on the
petitioner to make respondents guilty of laches.
Lastly, petitioner in her memorandum seeks to expunge
the testimony of Rosa Santos-Carreon before the trial court in view of
Sec. 23, Rule 130 of the Revised Rules of Court, otherwise known as the
"Dead Man's Statute."19 It is too late for petitioner,
however, to invoke said rule. The trial court in its order dated
February 5, 1990, denied petitioner's motion to disqualify respondent
Rosa as a witness. Petitioner did not appeal therefrom. Trial ensued
and Rosa testified as a witness for respondents and was cross-examined
by petitioner's counsel. By her failure to appeal from the order
allowing Rosa to testify, she waived her right to invoke the dean man's
statute. Further, her counsel cross-examined Rosa on matters that
occurred during Salvadors' lifetime. In Goñi vs. CA, 144 SCRA
222, 231 (1986) we held that protection under the dead man's statute is
effectively waived when a counsel for a petitioner cross-examines a
private respondent on matters occurring during the deceased's lifetime.
The Court of appeals cannot be faulted in ignoring petitioner on Rosa's
disqualification.1âwphi1.nêt
WHEREFORE, the instant petition is DENIED.
The assailed decision dated March 10, 1998 of the Court of Appeals,
which sustained the judgment of the Regional Trial Court dated March 17,
1993, in favor of herein private respondents, is AFFIRMED. Costs against petitioner.
SO ORDERED.
Bellosillo, Mendoza, Buena, De Leon, Jr., JJ., concur.
Footnote
1 Rollo, pp. 3-15.
2 Also spelled as Ombrebueno.
3 Records, p. 558.
4 Id. at 555-557.
5 ART. 1498. When the sale is made through
a public instrument, the execution thereof shall be equivalent to the
delivery of the thing which is the object of the contract, if from the
deed the contrary does not appear or cannot clearly be inferred.
6 Rollo, p. 26.
7 Id. at 5.
8 Rule 130, Sec. 23. Disqualification by reason of death or insanity of adverse party. –
Parties or assignors of parties to a case, or persons in whose behalf a
case is prosecuted, against an executor or administrator or other
representative of a deceased person, or against a person of unsound
mind, upon a claim or demand against the estate of such deceased person
or against such person of unsound mind, cannot testify as to any matter
of fact occurring before the death of such deceased person or before
such person became of unsound mind.
9 Rizal Cement Co., Inc. vs. Villareal, 135 SCRA 15, 23 (1985).
10 RTC Records, p. 217 and 252.
11 Ibid.
12 Id. at 240.
13 Id. at 251.
14 Villanueva vs. CA, 294 SCRA 90, 92-93 (1998)
15 ART. 1477. The ownership of the thing sold shall be transferred to the vendee upon the actual or constructive delivery thereof.
16 Montenegro vs. Roxas de Gomez, 58 Phil. 723, 727 (1933).
17 Pasagui vs. Villablanca, 68 SCRA 18, 21 (1975).
18 Maneclang vs. Buan, 208 SCRA 179, 193 (1992).
No comments:
Post a Comment