SECOND DIVISION
[G.R. No. 133345. March 9, 2000]
JOSEFA CH.
MAESTRADO, as substituted by her daughter LOURDES MAESTRADO-LAVIÑA and CARMEN
CH. ABAYA, petitioners, vs. THE HONORABLE COURT OF APPEALS, Ninth
Division and JESUS C. ROA, JR., RAMON P. CHAVES and NATIVIDAD S. SANTOS, respondents. xl-aw
[G.R. No. 133324. March 9, 2000]
JOSEFA CHAVEZ
MAESTRADO and CARMEN CHAVES ABAYA, petitioners, vs. JESUS C. ROA, JR.,
RAMON P. CHAVES and NATIVIDAD S. SANTOS, respondents. x-sc
D E C I S I O N
DE LEON, JR., J.:
Before us are two (2) consolidated petitions
for review on certiorari of the Decision[1] of the Court of Appeals[2] dated November 28, 1997 declaring Lot No. 5872,
located in Kauswagan, Cagayan de Oro City, as common property of the heirs of
the deceased spouses, Ramon and Rosario Chaves, and ordering its equal division
among all the co-owners. The Court of Appeals affirmed the Decision of the
Regional Trial Court, Branch 23 of Cagayan de Oro City, which dismissed
petitioners’ action against the private respondents for Quieting of Title over
the said lot.
The pertinent facts are the following: Sc
These consolidated cases involve the status
of Lot No. 5872 and the rights of the contending parties thereto. The said lot
which has an area of 57.601 square meters, however, is still registered in the
name of the deceased spouses Ramon and Rosario Chaves. The spouses Ramon and
Rosario died intestate in 1943 and 1944, respectively. They were survived by
the following heirs, namely: Carmen Chaves-Abaya, Josefa Chaves-Maestrado,
Angel Chaves, Amparo Chaves-Roa, Concepcion Chaves-Sanvictores and Salvador
Chaves.
To settle the estate of the said deceased
spouses, Angel Chaves initiated intestate proceedings[3] in the Court of First Instance of Manila and was
appointed administrator of said estates in the process. An inventory of the
estates was made and thereafter, the heirs agreed on a project of partition.
Thus, they filed an action for partition[4] before the Court of First Instance of Misamis
Oriental. The court appointed Hernando Roa, husband of Amparo Chaves-Roa, as
receiver. On June 6, 1956, the court rendered a decision approving the project
of partition. However, the records of said case are missing and although
respondents claimed otherwise, they failed to present a copy of said decision.
This notwithstanding, the estate was actually
divided in this wise: (1) Lot No. 3046 situated in Bulalong, Cagayan de Oro
City, consisting of 44 hectares of coconut land was distributed equally among
four (4) heirs, namely: (a) Concepcion Chaves-Sanvictores; (b) Angel Chaves;
(c) Amparo Chaves-Roa; and (d) Ramon Chaves, while (2) Lot Nos. 5925, 5934,
1327 and 5872, all located in Kauswagan, Cagayan de Oro City and consisting of
an aggregate area of 14 hectares was distributed equally between petitioners
(a) Josefa Chaves-Maestrado; and (b) Carmen Chaves-Abaya. Scmis
At the time of the actual partition,
Salvador Chaves had already died. His share was given to his only son, Ramon,
who is the namesake of Salvador’s father. In 1956, the year the partition case
was decided and effected, receiver Hernando Roa delivered the respective shares
of said heirs in accordance with the above scheme. Subsequently, Concepcion
sold her share to Angel, while Ramon sold his share to Amparo. Hence, one-half
(1/2) of Lot No. 3046 went to Angel and the other half to Amparo.
Significantly, Lot No. 5872 was not included
in any of the following documents: (1) the inventory of properties of the
estate submitted to the court in the proceedings for the settlement of said
estate; (2) the project of partition submitted to the court for approval; (3)
the properties receiver Hernando Roa had taken possession of, which he listed
in the "Constancia" submitted to the court; and (4) the court order
approving the partition. Decedent Ramon Chaves acquired Lot No. 5872 from
Felomino Bautista, Sr. but he subsequently delivered it to the spouses Hernando
Roa and Amparo Chaves-Roa[5]. It was thereafter delivered to petitioners during
the actual partition in 1956, and petitioners have been in possession of the
same since then. Missc
As to the omission of Lot No. 5872 in the
inventory and project of partition, the parties offer different explanations.
Respondents claim that due to the series of transactions involving the said
lot, the heirs were unsure if it belonged to the decedents’ estate at all. As a
result, they deferred its inclusion in the inventory of the properties of the
estate and its distribution pending the investigation of its status. In fact,
administrator Angel Chaves filed a motion in the proceedings for the settlement
of the estate to include the said lot in the inventory but the court did not
act on it. Petitioners, on the other hand, insist that the omission was
inadvertent and the inaction of the court on the motion was due to the
compromise agreement entered into by the heirs[6].
Petitioners’ thesis consists of the
existence of an oral partition agreement entered into by all heirs soon after
the death of their parents. The proposed project of partition was allegedly
based on it but the court’s order of partition failed to embody such oral
agreement due to the omission of Lot No. 5872. For some reason, however, the
actual partition of the estate conformed to the alleged oral agreement.
Petitioners claim that they failed to notice
the non-inclusion of Lot No. 5872 in the court’s order. They only realized such
fact after the death in 1976 of Silvino Maestrado, the husband of petitioner
Josefa. They discovered among Silvino’s belongings, the partition order and
found out that Lot No. 5872 was not included therein.[7]
In an effort to set things right,
petitioners prepared a quitclaim to confirm the alleged oral agreement. On
August 16, 1977, Angel, Concepcion and Ramon signed a notarized quitclaim in
favor of petitioners. Amparo was unable to sign because she had an accident and
had passed away on the following day. It was her heirs who signed a similarly
worded and notarized quitclaim on September 8, 1977.[8]Misspped
Respondents dispute the voluntariness of
their consent or the consent of their predecessors-in-interest to the
quitclaims. Ramon claims to have been betrayed by his lawyer, Francisco Velez,
who is the son-in-law of petitioner Josefa Maestrado. He allegedly signed the
quitclaim without reading it because his lawyer had already read it. He
believed that since his lawyer was protecting his interests, it was all right
to sign it after hearing no objections from said lawyer. On the other hand,
Angel signed the quitclaim "out of respect" for petitioners. On the other
hand, Concepcion signed because she was misled by alleged misrepresentations in
the "Whereas Clauses" of the quitclaim to the effect that the lot was
inadvertently omitted and not deliberately omitted due to doubts on its status.[9]Spped
Six (6) years after the execution of the
quitclaims, respondents discovered that Lot No. 5872 is still in the name of
the deceased spouses Ramon and Rosario Chaves. Thus, on October 14, 1983,
respondent Ramon Chaves, the sole heir of Salvador Chaves, and respondent Jesus
Roa, the son of Amparo Chaves-Roa, wrote a letter to their uncle Angel Chaves
to inform him that said property, which they claim to belong to the estate of
their deceased grandparents, has not yet been distributed to the concerned
heirs. Hence, they requested Angel Chaves to distribute and deliver it to the
heirs.[10] On October 24, 1983, respondent Natividad Santos,
daughter and attorney-in-fact of Concepcion Chaves-Sanvictores, also wrote a
similar letter to Angel Chaves. On December 1, 1983, Angel Chaves transmitted
the said letters to petitioner Carmen Abaya and requested her to respond.
In response, petitioners filed, on December
22, 1983, an action for Quieting of Title[11] against respondents in the Regional trial Court of
Cagayan de Oro. On April 10, 1995, the trial court rendered its Decision in
favor of respondents, the dispositive portion of which reads as follows:
"In view of
these facts, the court therefore considers the property, Lot 5872 still common
property. Consequently, the property must be divided in six (6) parts, there
being six heirs. But since the group of Jesus Roa already quitclaimed in favor
of plaintiffs and the same is true with Angel Chaves, the defendants Natividad
Santos and Ramon Chaves shall receive one-sixth (1/6) each out of Lot 5872 and
the balance will be divided equally by the plaintiffs Josefa Chaves-Maestrado
represented by her daughters and the other half to Carmen Chaves-Abaya.
With no other
pronouncements. Josp-ped
SO ORDERED."
The petitioners appealed to the Court of
Appeals which in a Decision, promulgated on November 28,1997, sustained the
said Decision of the trial court, in this wise:
"WHEREFORE,
in view of the foregoing premises, the Decision dated April 10, 1995 subject of
the appeal, is hereby AFFIRMED in toto.
Costs against the
plaintiffs-appellants. Spp-edjo
SO ORDERED."
On May 29, 1998, petitioner Lourdes
Maestrado-Lavina, in substitution of her deceased mother, Josefa
Chaves-Maestrado, filed a petition for review on certiorari with this
Court.[12] Petitioner Carmen Chaves-Abaya also filed her own
petition for review on certiorari on June 1, 1998.[13] Since the two petitions involve the same facts and
issues, we decided in a Resolution[14] to consolidate the said cases.
Petitioner Maestrado-Lavina assigns the
following errors:
I. THE COURT OF
APPEALS ERRED IN AFFIRMING THE TRIAL COURT’S DECISION DECLARING LOT 5872 AS
STILL COMMON PROPERTY, THEREBY EFFECTIVELY NULLIFYING THE VERBAL PARTITION
AGREEMENT REACHED AND IMPLEMENTED BY THE CHILDREN/HEIRS OF DECEDENTS RAMON AND
ROSARIO CHAVES WAY BACK IN 1956;
II. THE COURT OF
APPEALS ERRED IN AFFIRMING THE TRIAL COURT’S DECISION DECLARING LOT 5872 AS
STILL COMMON PROPERTY UPON ITS CONCLUSION THAT THE SIGNATURES OF RESPONDENTS ON
THE DULY NOTARIZED QUITCLAIMS WERE OBTAINED THROUGH FRAUD; Mi-so
III. THE COURT OF
APPEALS ERRED IN ITS LEGAL CONCLUSION THAT, ON THE BASIS ALONE OF THE CLAIMS
THAT (A) RAMON CHAVES SIGNED THE QUITCLAIM WITHOUT READING IT; AND THAT (B)
ANGEL CHAVES SIGNED THE QUITCLAIM OUT OF RESPECT, THERE WAS FRAUD AS WOULD
VITIATE RESPONDENTS CONSENT TO THE QUITCLAIMS;
IV. THE COURT OF
APPEALS ERRED IN AFFIRMING THE TRIAL COURT’S CONCLUSION THAT PETITIONERS HAVE
NO CAPACITY TO SUE FOR QUIETING OF TITLE OR REMOVAL OF CLOUD THEREON ON THE
BASIS ALONE THAT PETITIONERS ARE NOT THE REGISTERED OWNERS OF LOT 5872;
V. IT BEING
UNDISPUTED THAT THE FACTS GIVING RISE TO CLOUD ON JOSEFA’S AND CARMEN’S
OWNERSHIP OVER LOT 5872 SURFACED ONLY IN 1983 AND PETITIONERS FILED THE
CORRESPONDING ACTION TO QUIET TITLE OR REMOVE CLOUD THEREON ALSO IN 1983, THE
COURT OF APPEALS ERRED IN AFFIRMING THE TRIAL COURT’S CONCLUSION THAT
PETITIONERS ARE GUILTY OF LACHES."[15]Ne-xold
Petitioner Carmen Chaves-Abaya, on the other
hand, assigns the following errors:
I. THE HONORABLE
COURT OF APPEALS COMMITTED A CLEAR ERROR IN THE INTERPRETATION OF LAW IN
HOLDING THAT THERE WAS FRAUD IN OBTAINING THE CONSENT OF PRIVATE RESPONDENT
RAMON P. CHAVES AND CONCEPCION CHAVES SANVICTORES, THE MOTHER OF PRIVATE
RESPONDENT NATIVIDAD SANTOS, TO THE DEEDS OF QUITCLAIM;
II. THE HONORABLE
COURT OF APPEALS ERRED IN RULING THAT THE ACTION FOR QUIETING OF TITLE WAS NOT
BROUGHT BY THE PERSON IN WHOSE NAME THE TITLE IS ISSUED; Man-ikx
III. THE HONORABLE
COURT OF APPEALS ERRED IN RULING THAT PETITIONERS WERE GUILTY OF LACHES FOR
HAVING SLEPT ON THEIR RIGHTS FOR MORE THAN 25 YEARS."[16]
We grant the consolidated petitions, the
same being impressed with merit.
First. Petitioners are proper parties to bring an action for quieting of
title. Persons having legal as well as equitable title to or interest in a real
property may bring such action and "title" here does not necessarily
denote a certificate of title issued in favor of the person filing the suit.[17] Moreover, if the plaintiff in an action for quieting
of title is in possession of the property being litigated, such action is
imprescriptible.[18] One who is in actual possession of a land, claiming
to be the owner thereof may wait until his possession is disturbed or his title
is attacked before taking steps to vindicate his right because his undisturbed
possession gives him a continuing right to seek the aid of the courts to
ascertain the nature of the adverse claim and its effects on his title.[19]Manik-s
Although prescription and laches are
distinct concepts, we have held, nonetheless, that in some instances, the
doctrine of laches is inapplicable where the action was filed within the
prescriptive period provided by law.[20] Thus, laches does not apply in this case because
petitioners’ possession of the subject lot has rendered their right to bring an
action for quieting of title imprescriptible and, hence, not barred by laches.
Moreover, since laches is a creation of equity, acts or conduct alleged to
constitute the same must be intentional and unequivocal so as to avoid
injustice.[21] Laches operates not really to penalize neglect or
sleeping on one’s rights, but rather to avoid recognizing a right when to do so
would result in a clearly inequitable situation.[22]Man-ikan
In this case at bench, the cloud on petitioners’
title to the subject property came about only on December 1, 1983 when Angel
Chaves transmitted respondents’ letters to petitioners, while petitioners’
action was filed on December 22, 1983. Clearly, no laches could set in under
the circumstances since petitioners were prompt and vigilant in protecting
their rights.
Second. Lot No. 5872 is no longer common property of the
heirs of the deceased spouses Ramon and Rosario Chaves. Petitioners’ ownership
over said lot was acquired by reason of the oral partition agreed upon by the
deceased spouses’ heirs sometime before 1956. That oral agreement was confirmed
by the notarized quitclaims executed by the said heirs on August 16, 1977 and
September 8, 1977, supra.
It appeared that the decision in Civil Case
No. 867, which ordered the partition of the decedents’ estate, was not
presented by either party thereto. The existence of the oral partition together
with the said quitclaims is the bone of contention in this case. It appeared,
however, that the actual partition of the estate conformed to the alleged oral
partition despite a contrary court order. Despite claims of private respondents
that Lot No. 5872 was mistakenly delivered to the petitioners, nothing was done
to rectify it for a period of twenty-seven (27) years from 1983. Ol-dmiso
We are convinced, however, that there was
indeed an oral agreement of partition entered into by the heirs/parties. This
is the only way we can make sense out of the actual partition of the properties
of the estate despite claims that a court order provided otherwise. Prior to
the actual partition, petitioners were not in possession of Lot No. 5872 but
for some reason or another, it was delivered to them. From 1956, the year of
the actual partition of the estate of the deceased Chaves spouses, until 1983,
no one among the heirs questioned petitioners’ possession of or ownership over
said Lot No. 5872. Hence, we are convinced that there was indeed an oral
agreement of partition among the said heirs and the distribution of the properties
was consistent with such oral agreement. In any event, the parties had plenty
of time to rectify the situation but no such move was done until 1983.
A possessor of real estate property is
presumed to have title thereto unless the adverse claimant establishes a better
right.[23] In the instant case it is the petitioners, being the
possessors of Lot No. 5872, who have established a superior right thereto by
virtue of the oral partition which was also confirmed by the notarized
quitclaims of the heirs.
Partition is the separation, division and
assignment of a thing held in common among those to whom it may belong.[24] It may be effected extra-judicially by the heirs
themselves through a public instrument filed before the register of deeds.[25]Nc-m
However, as between the parties, a public
instrument is neither constitutive nor an inherent element of a contract of
partition.[26] Since registration serves as constructive notice to
third persons, an oral partition by the heirs is valid if no creditors are
affected.[27] Moreover, even the requirement of a written
memorandum under the statute of frauds does not apply to partitions effected by
the heirs where no creditors are involved considering that such transaction is
not a conveyance of property resulting in change of ownership but merely a
designation and segregation of that part which belongs to each heir.[28]Nc-mmis
Nevertheless, respondent court was convinced
that Lot No. 5872 is still common property of the heirs of the deceased spouses
Ramon and Rosario Chaves because the TCT covering the said property is still
registered in the name of the said deceased spouses. Unfortunately, respondent
court was oblivious to the doctrine that the act of registration of a voluntary
instrument is the operative act which conveys or affects registered land
insofar as third persons are concerned. Hence, even without registration, the
contract is still valid as between the parties.[29] In fact, it has been recently held and reiterated by
this Court that neither a Transfer Certificate of Title nor a subdivision plan
is essential to the validity of an oral partition.[30]
In sum, the most persuasive circumstance
pointing to the existence of the oral partition is the fact that the terms of
the actual partition and distribution of the estate are identical to the
sharing scheme in the oral partition. No one among the heirs disturbed this status
quo for a period of twenty-seven (27) years.
Finally. The said notarized quitclaims signed by the heirs in
favor of petitioners are not vitiated by fraud. Hence, they are valid.
Since the oral partition has been duly
established, the notarized quitclaims confirmed such prior oral agreement as
well as the petitioners’ title of ownership over the subject Lot No. 5872. More
importantly, independent of such oral partition, the quitclaims in the instant
case are valid contracts of waiver of property rights. Scnc-m
The freedom to enter into contracts, such as
the quitclaims in the instant case, is protected by law[31] and the courts are not quick to interfere with such
freedom unless the contract is contrary to law, morals, good customs, public
policy or public order.[32] Quitclaims, being contracts of waiver, involve the
relinquishment of rights, with knowledge of their existence and intent to
relinquish them.[33] The intent to waive rights must be clearly and
convincingly shown. Moreover, when the only proof of intent is the act of a
party, such act should be manifestly consistent and indicative of an intent to
voluntary relinquish a particular right such that no other reasonable explanation
of his conduct is possible.[34]Sd-aamiso
In the instant case, the terms of the
subject quitclaims dated August 16, 1977 and September 8, 1977 are clear; and
the heirs’ signatures thereon have no other significance but their conformity
thereto resulting in a valid waiver of property rights.[35] Herein respondents quite belatedly and vainly
attempted to invoke alleged fraud in the execution of the said quitclaims but
we are not convinced. In other words, the said quitclaims being duly notarized
and acknowledged before a notary public, deserve full credence and are valid
and enforceable in the absence of overwhelming evidence to the contrary.[36] In the case at bench, it is our view and we hold
that the execution of the said quitclaims was not fraudulent.
Fraud refers to all kinds of deception,
whether through insidious machination, manipulation, concealment or
misrepresentation to lead another party into error.[37] The deceit employed must be serious. It must be
sufficient to impress or lead an ordinarily prudent person into error, taking
into account the circumstances of each case.[38] Silence or concealment, by itself, does not
constitute fraud, unless there is a special duty to disclose certain facts.[39] Moreover, the bare existence of confidential
relation between the parties, standing alone, does not raise the presumption of
fraud.[40]S-daad
Dolo causante or fraud which attends the execution of a contract
is an essential cause that vitiates consent and hence, it is a ground for the
annulment of a contract.[41] Fraud is never presumed, otherwise, courts would be
indulging in speculations and surmises.[42] It must be established by clear and convincing
evidence but it was not so in the case at bench. A mere preponderance of
evidence is not even adequate to prove fraud.[43]
The instances of fraud allegedly committed
in the case at bench are not the kind of fraud contemplated by law. On the
contrary, they constitute mere carelessness in the conduct of the affairs of
the heirs concerned. We have consistently denied relief to a party who seeks to
avoid the performance of an obligation voluntarily assumed because they turned
out to be disastrous or unwise contracts, even if there was a mistake of law or
fact.[44] Moreover, we do not set aside contracts merely
because solicitation, importunity, argument, persuasion or appeal to affection
were used to obtain the consent of the other party.[45]
In a nutshell, the quitclaims dated August 16,
1977 and September 8, 1977 in the case at bench are valid, duly confirmed and
undeniably established the title of ownership of the petitioners over the
subject Lot No. 5872. Scs-daad
WHEREFORE, the instant consolidated petitions are GRANTED. The
Decision of the Court of Appeals, dated November 28, 1997, is hereby REVERSED
and SET ASIDE. The petitioners’ action praying for the quieting of their title
of ownership over Lot No. 5872, located in Kauswagan, Cagayan de Oro, is
granted. Cost against respondents.
SO ORDERED.
Bellosillo, (Chairman), Mendoza,
Quisumbing, and Buena, JJ., concur. Supr-ema
[1] Penned by Associate Justice Salome A. Montoya and concurred in by Associate Justices Delilah Vidallon-Magtolis and Rodrigo V. Cosico, Rollo, pp. 8-14.
[2] Ninth Division.
[3] Docketed as Special Proceedings No. 73066.
[4] Docketed as Civil Case No. 867.
[5] Comment, p. 4, Rollo, p. 96.
[6]
Abaya’s Petition, p. 6, Rollo, p. 24.
[7] Petition of Abaya, p.8, Rollo, p.26.
[8] Annex "D" Abaya’s Petition, Rollo, pp. 78-79.
[9] Comment, p. 28, Rollo, p. 120.
[10] Annex "C" Maestrado’s Petition, Rollo, p. 69.
[11] Docketed as Civil Case No. 9383.
[12] Docketed as G.R. No. 133345.
[13] Docketed as G.R. No. 133324.
[14] Minute Resolution, dated July 15, 1998.
[15] Maestrado’s Petition, pp. 14-17, Rollo, pp.34-37.
[16] Abaya’s Petition, p. 17, Rollo, p. 35.
[17] Art. 477, New Civil Code; Mamadsul v. Moson 190 SCRA 82, 89 (1990).
[18] David v. Malay, G.R. No. 132644, November 19, 1999, p. 10 ; Faja v. Court of Appeals 75 SCRA 441, 446 (1977).
[19] Faja v. Court of Appeals, supra, p. 446.
[20] Associated Bank v. Court of Appeals 291 SCRA 511, 526, (1998).
[21] Arcelona v. Court of Appeals 280 SCRA 20, 54 (1997).
[22] Catholic Bishop of Balanga v. Court of Appeals 264 SCRA 181, 193 (1997).
[23] Marcelo v. Maniquis 35 Phil. 134, 140 (1916).
[24] Art. 1079, New Civil Code.
[25] Sec. 1, Rule 74 Rules of Court.
[26] Hernandez v. Andal 78 Phil. 196, 205 (1947).
[27] Hernandez v. Andal, supra, p. 208-209; Barcelona v. Barcelona 100 Phil. 251, 255 (1956); Tan v. Lim 296 SCRA 455, 473 (1998).
[28] Ibid.
[29] Sec. 51, P.D. No. 1529.
[30] Tan v. Lim, supra, p. 475-476.
[31] People v. Pomar 46 Phil. 440, 449 (1924).
[32] Gabriel v. Monte de Piedad 71 Phil. 497, 500 (1941); Phil. Telegraph and Telephone Co. v. National Labor Relations Commission 272 SCRA 596, 614 (1997).
[33] Portland v. Spillman 23 Ore. 587, 32 Pac. 689, cited in Tolentino, Arturo M., Commentaries and Jurisprudence on the Civil Code of the Philippines, Vol. I, 1990 ed., p. 29.
[34] Thomson v. Court of Appeals 298 SCRA 280, (1998).
[35] Valenzuela Hardwood and Industrial Supply, Inc. v. Court of Appeals 274 SCRA 642, 656-657 (1997).
[36] Salame v. Court of Appeals, 239 SCRA 356, 359 (1994).
[37] Art. 1338, New Civil Code: Tolentino, Arturo, Commentaries and Jurisprudence on the Civil Code of the Philippines, Vol. IV, 1991 ed., p. 505.
[38] Borrel y Soler, Nulidad, p. 250, cited in Tolentino, Arturo, id., p. 514.
[39] Art. 1339, New Civil Code; Tolentino, Arturo, id., p. 509.
[40] Esquivas v. Court of Appeals 272 SCRA 803, 814 (1997).
[41] Caram v. Laureta 103 SCRA 7, 18 (1981).
[42] Westmont Bank v. Shugo Noda and Co., Ltd. G.R. No. 129866, May 19, 1999.
[43] Palmares v. Court of Appeals 288 SCRA 422, 434 (1998).
[44] Sanchez v. Court of Appeals 279 SCRA 647, 683 (1997); Huibonhoa v. Court of Appeals G.R. No. 102604, December 14, 1999, p. 34.
[45] Banez v. Court of Appeals 59 SCRA 15, 29 (1974).