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    CILR1 DIGESTS:PROPERTY RELATIONS TO FILIATION EL 1

    VOIDDONATIONSBYTHESPOUSES:DONATIONSINCOMMONLAWMARRIAGES

    MATABUENA VS.

    CERVANTES

    On 20 February 1956, Felix Matabuena executed a Deed of

    Donation inter vivos in favor of Petronila Cervantes during the

    time they were living as husband and wife in a common law

    relationship. They were later married on 28 March 1962. Felix

    died intestate on 13 September 1962. Cornelia Matabuena,

    being the sole sister and nearest and nearest relative to Felix,

    questioned the validity of the donation claiming that the ban

    on donation between spouses during a marriage applies to acommon-law relationship. She had the land declared on her

    name and paid the estate and inheritance taxes thereon on

    virtue of an affidavit of self-adjudication executed by her in

    1962. On 23 November 1965, the lower court upheld the

    validity of the donation as it was made before Cervantes

    marriage to the donor. Hence, the appeal.

    Whether the Article

    133 of the civil code

    applies to

    donations between

    live-in partners?

    While Article 133 of the Civil Code considers as void a

    donation between the spouses during the marriage,

    policy considerations of the most exigent character as well

    as the dictates of morality require that the same prohibition

    should apply to a common-law relationship, as it is contrary

    to public policy. The law prohibits donations in favor of the

    other consort and his descendants because of fear of undue

    and improper pressure and influence upon the donor, a

    prejudice deeply rooted in ancient law. Whatever omissionmay be apparent in an interpretation purely literal of the

    language used must be remedied by an adherence to its

    avowed objective. It is a principle of statutory construction

    that what is within the spirit of the law is as much a part of

    it as what is written. Otherwise the basic purpose

    discernible in such codal provision would not be attained.

    The Supreme Court (1) reversed the 23 November 1965

    decision of the lower court; (2) declared the questioned

    donation void and recognized the rights of plaintiff and

    defendant as pro indiviso heirs to the property; and (3)

    remanded the case to the lower court for its appropriate

    disposition in accordance with the current decision; without

    pronouncement as to costs.

    PROPERTY RELATIONS FOR MARRIAGES BEFORE THE FAMILY CODE

    DELIZO VS.DELIZO Nicolas Delizo contracted two marriages. The first was with

    Rosa Vilasfer, from 1891 until her death in 1909, a period of

    18 years. The second with Dorotea de Ocampo, from 1911

    until the death of Nicolas in 1957, or a period of 46 years.

    The action for partition was instituted in 1957 by the 3

    children and the heirs of the first marriage, all against their

    father, Nicolas Delizo, and his second wife, Dorotea de

    Ocampo, and their nine 9 children, the herein petitioners-

    appellants.

    Involved are the properties acquired by Nicolas Delizo, among

    which are 66 hectares of agricultural lands in Caanawan, San

    Jose City, Nueva Ecija; 58 hectares of riceland in Muoz of the

    same province; and a lot in Manila.

    It was found by both the TC and the CA that the Caanawan

    lands were acquired as homesteads during the existence of

    the first marriage of Nicolas Delizo to Rosa Villasfer and there

    being no affirmative showing that they belonged exclusively

    to said Nicolas Delizo, should therefore correspond to the first

    conjugal partnership of Nicolas Delizo and Rosa Villasfer.

    With regards to the other properties, the CA found that these

    were all acquired during the existence of the second marriage

    of Nicolas Delizo. However, since these properties were

    acquired from the produce of the Caanawan properties

    although such produce is the result of the labor and industry

    of the spouses Nicolas Delizo and Dorotea de Ocampo, only

    eighty per cent (80%) of said properties acquired during the

    second marriage should appertain to the second conjugalpartnership, while twenty per cent (20%) thereof adjudicated

    to the children of the first marriage.

    Whether the

    property acquired

    by homestead is

    conjugal property

    of the 1st

    or 2nd

    marriage?

    From the findings of the Appellate Court that 66 hectares ofthe Caanawan properties were acquired by Nicolas Delizo as

    homesteads during the period of the first marriage, it does

    not necessarily follow that they should be considered as

    properties of the first marriage, considering that being

    homesteads they were part of the public domain, and it was

    not shown that all the requirements of the Homestead Law

    to warrant the grant of a patent to the homesteader have

    been complied with prior to the death in 1909 of Delizo's

    first wife, Rosa Villasfer. Under Act 926, which was then the

    applicable law, the right of the homesteader to the patent

    does not become absolute until after he has complied with

    all the requirements of the law. The decisive factor,

    therefore, in the determination of whether a parcel of land

    acquired by way of homestead is conjugal property of the

    first or the second marriage, is not necessarily the time of

    the issuance of the homestead patent but the time of the

    fulfillment of the requirements of the public land law for

    the acquisition of such right to the patent. What was

    transferred to Nicolas Delizo were not rights of ownership,

    but inchoate rights as applicants for homesteads over

    portions of the public domain. Having received the

    homestead only in 1905, Nicolas Delizo could not have

    perfected his rights thereon by the completion of the five-

    year occupancy and cultivation requirement of the law, in

    1909. The CA erred in, holding that the entire Caanawan

    properties belong to the conjugal partnership of the first

    marriage of Nicolas Delizo and Rosa Villasfer. Considering,

    however, that about twenty (20) hectares were cultivated

    and rendered productive during the period from 1905 to

    1909, judgment and equity demand that the rights to said

    properties be apportioned to the parties in proportion tothe extent to which the requirements of the public land

    laws had been complied with during the existence of each

    conjugal partnership. In connection with the other

    properties, the CA held that "there is no controversy that

    these were all acquired during the existence of the second

    marriage of Nicolas Delizo." Since these properties were

    acquired from the produce of the Caanawan properties

    although such produce is the result of the labor and

    industry of the spouses Nicolas Delizo and Dorotea de

    Ocampo, only eighty per cent (80%) of said properties

    acquired during the second marriage should appertain to

    the second conjugal partnership, while twenty per cent

    (20%) thereof adjudicated to the children of the first

    marriage. It would have been facile to hold that those after-

    acquired properties belong to the second conjugal

    partnership in view of the statutory presumptionenunciated in Article 1407 of the old Civil Code (now Article

    160, New Civil Code). There are, however, important

    considerations which preclude Us from doing so. There is

    the established fact that the produce of the Caanawan lands

    contributed considerably to the acquisition.

    CONJUGAL PARTNERSHIP OF GAINS

    BALLADOS VS.

    COURT OFAPPEALS

    Exclusive. Article 60 of the CC proveides that All property of

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    CILR1 DIGESTS:PROPERTY RELATIONS TO FILIATION EL 2

    JOCSON VS.COURT

    OFAPPEALS

    Emilio Jocon and Alejandra Jocson were husband and wife.

    The wife died first intestate then the husband followed.

    Moises and Agustina are their children. Ernesto Vasquesz is

    the husband of Agustina.

    The present controversy concerns the validity of three (3)

    documents executed by Emilio Jocson during his lifetime.

    These documents purportedly conveyed, by sale, to Agustina

    Jocson-Vasquez what apparently covers almost all of his

    properties, including his one-third (1/3) share in the estate of

    his wife. Petitioner Moises Jocson assails these documentsand prays that they be declared null and void and the

    properties subject matter therein be partitioned between him

    and Agustina as the only heirs of their deceased parents.

    Petitioner claimed that the properties mentioned in Exhibits 3

    and 4 are the unliquidated conjugal properties of Emilio

    Jocson and Alejandra Poblete which the former, therefore,

    cannot validly sell. They say it is conjugal properties of Emilio

    Jocson and Alejandra Poblete, because they were registered

    in the name of Emilio Jocson, married to Alejandra Poblete.

    WON the property

    registered under

    the name of Emilio

    Jocson, married to

    Alejandra Poblete

    is conjugal property

    or exclusive

    property.

    the marriage is presumed to belong to the conjugal

    partnership, unless it be proved that it pertains exclusively

    to the husband or to the wife. The party who invokes this

    presumption must first prove that the property in

    controversy was acquired during the marriage. In other

    words, proof of acquisition during the coverture is a

    condition sine qua non for the operation of the

    presumption in favor of conjugal ownership.

    It is thus clear that before Moises Jocson may validly invoke

    the presumption under Article 160 he must first presentproof that the disputed properties were acquired during the

    marriage of Emilio Jocson and Alejandra Poblete. The

    certificates of title, however, upon which petitioner rests his

    claim is insufficient. The fact that the properties were

    registered in the name of Emilio Jocson, married to

    Alejandra Poblete is no proof that the properties were

    acquired during the spouses coverture. Acquisition of title

    and registration thereof are two different acts. It is well

    settled that registration does not confer title but merely

    confirms one already existing (See Torela vs. Torela, supra).

    It may be that the properties under dispute were acquired

    by Emilio Jocson when he was still a bachelor but were

    registered only after his marriage to Alejandra Poblete,

    which explains why he was described in the certificates of

    title as married to the latter.

    Contrary to petitioners position, the certificates of title

    show, on their face, that the properties were exclusively

    Emilio Jocsons, the registered owner. This is so because the

    words married to preceding Alejandra Poblete are

    merely descriptive of the civil status of Emilio Jocson. In

    other words, the import from the certificates of title is that

    Emilio Jocson is the owner of the properties, the same

    having been registered in his name alone, and that he is

    married to Alejandra Poblete.

    ANSALDO VS.

    SHERIFF

    Appellee Angel Ansaldo stood as guarantor for Romarico

    Agcaoili. He promised to indemnify the Surety Company for

    any damage that they may incur from Agcaoilis credits.

    Agcaoili defaulted and thus theSurety Company was forced to

    pay the Philippine Trust Bank the amount of 19,065.17 pesos.

    Thus, the Surety Company instituted an action to get the said

    amount from Angel Ansaldo. The Sheriff of City of Manila

    favored the Surety Company and levied on a property that

    belongs to the conjugal property of Angel and Margarita

    Ansaldo. The spouses brought an action to the Court of First

    Instance of Manila and the court ruled in their favor to the

    extent that the Sheriff should not have deducted from the

    same property and that the Surety Company should pay the

    spouses the amount of 636.80 pesos.

    Whether or not the

    Sheriff was right in

    deducting from the

    conjugal property

    of the Spouses

    NO. The decision of the lower court is affirmed by the

    Supreme Court

    Ratio: The Civil Code provision, in Article 1408, that the

    conjugal property of the spouses should be liable for all the

    debts and obligations contracted by either spouses during

    the marriage, should be construed in line and be reconciled

    with Articles 1385 and 1386 of the same code. Construing

    the 3articles together leads to the conclusion that the

    conjugal property should be held liable only when the said

    debt or obligation contracted by either party was proved to

    have produced some level of benefit for the family. It not

    being showed to be such, the Sheriff could not have levied

    from the said property. The issue of the spouses is not that

    the said property was part of their conjugal property but

    that whether it could be subject to the levy of the Sheriff or

    whether it falls under the purview of 1408.

    CASTRO VS.MIAT

    Father of two children, Moises, widower (wife died in 1978),

    originally intended his two properties, one in Paco and the

    other in Paranaque for his offspring but reverted to keeping

    the latter for himself while in Dubai, UAE. He modified theoriginal agreement upon return to the Philippines in 1984.

    Proof of this was given by Moises brother, Cerefino Miat,

    who said testified the original agreement that Paco would go

    to Moises sons. This was reiterated at the death bed of

    Moises wife and affirmed upon Moises return to the

    Philippines.

    The Paco property, being the land in dispute, was paid for on

    an installment basis from May 17, 1977 to December 14,

    1984. Full payment was made on the latter date and title was

    secured under Moises name as widower.

    Romeo and Alexander, sons of Moises, lived on the property

    with their wives and paid its realty taxes and fire insurance

    premiums. Alexander and his wife, however, left the propertyin August 1985 for personal reasons.

    February 1988, Romeo learns from godmother of his wedding

    that son of godmother, Virgilio Castro (VC, petitioner), who

    happens to be Romeos neighbor, that the Paco property was

    being sold to VC. A thirty thousand peso downpayment was

    made by godmother to Moises for her son.

    April 1988, Alexander agrees to sell his share of the Paco

    property for P42,750.00; a partial payment was made in the

    sum of P6,000 by Romeo but Alexander did not execute a

    deed of assignment in favor of his brother because he had

    lots of work to do and the title was already in Romeos

    possession.

    (1) WON Paco

    property is conjugal

    or capital

    (2) WON valid oralpartition between

    Moises and his sons

    involving the said

    property is valid

    (3) WON Castro

    spouses were

    buyers in good

    faith.

    (1) Although petitioners allege that property was paid for by

    Moises and at the time it was paid, his wife had long been

    dead, the SC disagrees on the grounds of the new Civil Code

    (which was applicable because marriage was celebratedbefore FC):

    Art 153 (1) -

    The following are conjugal partnership property:

    (1) Those acquired by onerous title during the marriage at

    the expense of the common fund, whether the acquisition

    be for the partnership, or for only one of the spouses; x x x.

    Records show that property was acquired by onerous title

    during the marriage out of the common fund. It is clearly

    conjugal property.

    Petitioners also overlook Article 160 of the New Civil Code.

    It provides that all property of the marriage is presumed to

    belong to the conjugal partnership, unless it be proved that

    it pertains exclusively to the husband or to the wife. Thisarticle does not require proof that the property was

    acquired with funds of the partnership. The presumption

    applies even when the manner in which the property was

    acquired does not appear.

    In the case at bar (as opposed to petitioners reliance on

    Lorenzo v. Nicolas), Moises and Concordia bought the Paco

    property during their marriage Moises did not bring it

    into their marriage, hence it has to be considered as

    conjugal.

    (2)Yes. The validity of the agreement is apparent in (a) latter

    of the father to his sons (the one which stated that he didnt

    favor any of his sons), (b) the testimony (see above) of

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    CILR1 DIGESTS:PROPERTY RELATIONS TO FILIATION EL 3

    Downpayment information corroborated by Virgilio Miat

    (brother of Moises) and Pedro Miranda (who worked with

    Moises in two hotels: Bayview Hotel and Hotel Filipinas) but

    Alexander later said that he did not consider the money to be

    a downpayment but a personal debt due to Romeo.

    Romeo had possession of the title because he borrowed it

    from his father when he mortgaged the land to his friend

    Lorenzo. But when Moises ran into financial difficulties, he

    mortgaged for P30,000.00 the Paco property to parents ofpetitioner VC.

    December 1, 1988, Romeo and VC met in MTC Manila to

    discuss status of Paco property. On the 16th, a letter from

    petitioners lawyer informed Romeo that the Paco property

    had been sold to VC by Moises by virtue of a deed of sale

    dated Dec. 5, 1988 for P95,000.00. Buyer, petitioner, VC

    admitted that the title of the property was with Romeo but

    bought it anyway on the assurance of Moises that hed be

    able to retrieve it from his son.

    Romeo files in the RTC action to nullify sale and compel

    Moises and Alexander to execute deed of

    conveyance/assignment. RTC ordered (1) Alexander to pay

    the remaining balance due his brother, (2) Romeo to

    recognize sale made by Moises, (3) dismissal of defendantscounterclaim and (4) defendants to pay the costs of suit. Both

    parties appealed to the CA which modified the decision by

    saying that: (1) the deed of sale was nullified, (2) Moises and

    Alexander had to execute a deed of conveyance, and (3) for

    defendants to pay cost of suit (as applied for by the

    petitioner). VC subsequently brings the action to the SC.

    Moises brother, Ceferino, and the oral agreement between

    the brothers to divide the property between themselves

    (attested to by extended Family members).

    We also hold that the oral partition between Romeo and

    Alexander is not covered by the Statute of Frauds. It is

    enforceable for two reasons. Firstly, Alexander accepted

    the six thousand (P6,000.00) pesos given by Romeo as

    downpayment for the purchase of his share in the Paco

    property. Secondly, Romeo and his witnesses, Ceferino

    Miat and Pedro Miranda, who testified regarding the sale ofAlexanders share to Romeo, were intensely questioned by

    petitioners counsel.

    (3)In the case at bench, the said spouses have actual

    knowledge of the adverse claim of plaintiff-appellant. The

    most protuberant index that they are not buyers in good

    faith is that before the sale, Virgilio Castro talked with

    Romeo Miat on the supposed sale. Virgilio testified that

    together with Romeo, Alexander and Moses Miat, they

    went to Judge Anunciacion of Manila in order to find out if

    Romeo has a right over the property. Romeo told Virgilio in

    that meeting that Romeo has a right over the Paco property

    by virtue of an oral partition and assignment. Virgilio even

    admitted that he knew Romeo was in possession of the title

    and Romeo then insisted that he is the owner of the

    property.

    x x x

    Virgilio Castro is further aware that plaintiff is in possession

    of the property, they being neighbors. A purchaser who

    was fully aware of another persons possession of the lot he

    purchased cannot successfully pretend to be an innocent

    purchaser for value.

    WHEN CPG COMMENCES AND APPLIES?

    PNB VS.QUINTOS

    EXCLUDED FROM CPG: EXCLUSIVE PROPERTY

    LAPERAL VS.

    KATIGBAK

    1. The Laperals instituted a complaint against

    Katigbak and Kalaw seeking the recovery of P14000 evidenced

    by various promissory notes and for the return of jewelry

    delivered to Katigbak for sale on commission.

    2. Upon confession of judgment by Katigbak, the

    court rendered judgment against him to pay the Laperals the

    said sum and return of jewelry.

    3. About a month after the decision was rendered,

    Kalaw filed a complaint against her husband Katigbak for

    judicial separation of property and separate administration

    4. Court granted the said complaint.

    5. Laperals filed another complaint against Kalaw and

    Katigbak seeking the annulment of the proceedings for the

    above complaint, to enforce judgment secured by the

    Laperals on the fruits of Kalaws paraphernal property and to

    secure a ruling declaring the real property as conjugal

    property of Katigbak and Kalaw.6. Court dismissed the complaint and rendered the

    property as paraphernal.

    a. Ramon and Evelina got married in 1938.

    b. The subject property was registered in the name of

    Evelina Katigbak married to Ramon Katigbak on December6,

    1939 only two years after the marriage.

    c. Evelina declares that her mother Pua was the one

    that had bought the property for her

    WON the property

    in question

    constitutes the

    paraphernal

    property of Evelina.

    Whether or not

    Evelina may be held

    liable for the debts

    of her husband

    against the spouses

    Laperal.

    NO

    Indeed, all properties acquired during the marriage are, by

    law, presumed conjugal. The presumption however is not

    conclusive but merely rebuttable. This is a case where the

    presumption has been sufficiently and convincingly proven.

    1. The land in question was purchased for the wife

    with her own separate funds. Other than invoking the

    presumption, the burden of denying the evidence so

    presented was shifted to the appellant.

    2. Deed to the disputed land is in the name of the

    wife.

    3. At the time of its purchase, the property was

    already of such substantial value as admittedly, the

    husband, by himself could not have afforded to buy,

    considering that singular source of income then was his

    P200.00 a month salary from a Manila Bank.

    BARCILLES VS.GSIS Judge Pascual Berciles died of cardiac arrest. His retirement

    benefits, unpaid salary, retirement premiums and terminal

    leave and representation and transportation allowances are

    being contested in this case by two families. Iluminada Ponce

    Berciles and her four children Ilona, Ellery, England and Ione

    (lawful heirs) allege that they are the lawful legal heirs of the

    deceased. Iluminada presents as proof, evidence of hermarriage with the deceased which entitled her and their

    legitimate children to a share in the said benefits. On the

    other hand, Flor Fuentebella and her four children Pascual

    Voltaire, Maria Luisa, Mercy and Rhoda (contending

    claimants) also claim a share in the benefits.

    The GSIS resolved to grant the benefits in the following

    proportion:

    77/134 for Iluminada as surviving spouse;

    10/134 each for the legitimate children Ilona,

    Ellery, England and Ione;

    5/134 for Pascual Voltaire as acknowledged natural

    child;

    Is the GSIS decision

    valid?

    NO

    The marriage between Iluminada and the deceased was

    sufficiently proved and ruled upon by this court, fully

    supported by appropriate evidence as certified by the civil

    registry therefore the four children begotten by said

    spouses during their marital union are all legitimate. They

    are entitled to their share in the benefits. The marriage

    between Flor and the deceased was not proved. She only

    presented a certification that their marriage records couldnot be found or located in the civil registry. As to Pascual

    Voltaire, his paternity cannot be sufficiently proved. His

    birth certificate was not signed by either the father or

    mother and under the law, if the alleged father did not

    intervene in the birth certificate, the putting of his name by

    the mother or doctor or registrar is null and void. Pascual

    Voltaire therefore cannot be considered as an

    acknowledged natural child. Under the law, illegitimate

    children are entitled to support and such successional rights

    so long as there is admission or recognition of paternity. As

    a result, the illegitimate children of Flor cannot share in the

    benefits as the marriage between Flor and the deceased

    was not sufficiently proved and paternity was not

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    CILR1 DIGESTS:PROPERTY RELATIONS TO FILIATION EL 4

    4/134 each for the illegitimate children Maria

    Luisa, Mercy and Rhoda.

    Both parties appealed. The lawful heirs contend that the GSIS

    ruling is erroneous, that they are the only legal heirs under

    the law. The contending claimants also appealed claiming that

    they should be the only ones entitled to the benefits.

    established. The retirement benefits and the terminal leave

    pay, unpaid salary and allowances accruing to the deceased

    shall be distributed equally to the 5 heirs: Iluminada, Ilona,

    Ellery, England and Ione. As to the retirement premiums,

    the same is presumed conjugal, there being no proof that

    the premiums were paid from the exclusive funds of the

    deceased. One half belongs to the wife as her property in

    the conjugal partnership and the other half shall go to the

    estate of the deceased to be distributed to his legal heirs.

    EXCLUDED FROM CPG: ACQUISITIONS BY GRATUITOUS TITLE DURING THE MARRIAGE

    VELOSO VS.

    MARTINEZ

    Lucia Martinez is the widow of Domingo Franco and

    administratrix of his estate. Before Domingo died, he

    borrowed Php 4,500 from Mariano Veloso secured by jewelry.

    Veloso claims the husband pawned the jewelry to him with

    full knowledge and consent of Martinez. Martinez claims that

    the jewelry in question was her own property, inherited from

    her mother.

    Who is entitled to

    the jewelry?

    MARTINEZ.

    The record shows that the jewels were the sole and

    separate property of the wife, acquired from her mother,

    and in the absence of further proof, we must presume that

    they constituted a part of her paraphernal property. As such

    paraphernal property she exercised dominion over the

    same. (Article 1382, Civil Code.) She had the exclusive

    control and management of the same, until and unless she

    had delivered it to her husband, before a notary public, with

    the intent that the husband might administer it properly.

    (Article 1384, Civil Code.) There is no proof in the record

    that she had ever delivered the same to her husband, in any

    manner, or for any purpose. That being true, she could not

    be deprived of the same by any act of her husband, without

    her consent, and without compliance with the provisions of

    the Civil Code above cited.

    EXCLUDED FROM CPG: ACQUISITION BY REDEMPTION

    PLATA VS.YATCO Amalia Plata while single, sold a parcel of land to Celso

    Saldaa. The latter again resold the property to Amalia Plata,

    married to Gaudencio Begosa. In consideration of a Php

    3,000 loan, "Amalia Plata of legal age, Filipino, married to

    Gaudencio Begosa" mortgaged the identical property to

    Cesarea Villanueva, signed by Gaudencio Begosa as co-

    mortgagor. The mortgage was foreclosed extrajudicially and

    Villanueva obtained said property by being the highest bidder.

    Villanueva sued Begosa for illegal detainer and obtained

    judgment that became final. A writ of execution was issued

    but Plata resisted all efforts to eject her from her property

    and filed a claim averring ownership of the property.

    Is Plata bound by

    the

    detainer/judgment

    against Begosa?

    NO

    She had acquired the property while still single. Evidence

    before us against the marriage of petitioner Amalia Plata to

    Gaudencio Begosa is weak. The subsequent conveyance

    thereof to Celso Saldaa, and the reconveyance of her

    several months afterward of the same property, did not

    transform it from paraphernal to conjugal property, there

    being no proof that the money paid to Saldaa came from

    common or conjugal funds. The deed of mortgage in favor

    of respondents Villanueva actually recites that the

    petitioner was the owner of the tenement in question and

    so does the conveyance of it by Saldaa to her. Since the

    property was paraphernal, and the creditors and purchasers

    were aware of it, the fact being clearly spread on the land

    records, it is plain that Plata's possession, therefore, was

    not derived from Gaudencio Begosa. The illegal detainer

    judgment against the husband alone cannot bind nor affect

    the wife's possession of her paraphernal, which by law she

    holds and administers independently, and which she may

    even encumber or alienate without his knowledge or

    consent.

    LIM VS.GARCIA Hilario Lim died intestate some time in the year 1903, leaving

    a widow (Isabela Garcia) and nine children and an interest in

    an estate valued at some 50,000 pesos EXCEPT:

    1. A house and lot on Calle Magallanes, Zamboanga,and the sum of 10,000 pesos which, it was

    admitted, had been brought to the marriage by the

    said Hilario Lim

    2. 700 pesos, the purchase price paid by said Lim fora certain lot which it was also admitted had beenbrought by him to his marriage, and which was

    sold in the course of the administration of his

    estate, together with improvements

    TC - the entire estate as shown in the inventory prepared by

    the administrator was conjugal property.

    Counsel for the administrator,surviving children - none of the

    said property should be treated as the property of the

    conjugal partnership, because, as they allege, the deceased

    Hilario Lim, brought to the marriage property worth more

    than double the amount of the intestate estate, and the

    defendant, his widow, brought nothing to the conjugal

    partnership, either at the time of the marriage or at any time

    thereafter.

    Should the property

    be considered

    conjugal?

    YES

    The TC was of opinion that the evidence offered in support

    of this contention was not sufficient to overcome the

    presumption established in article 1407 of the Civil Code,

    which provides that all the estate of the married couple

    will be considered as conjugal partnership property (bienes

    gananciales) unless and until it is proven that it is a part of

    the separate estate of the husband or the wife, and we

    think after a careful examination of the record that this

    finding must be sustained. The setting aside of 700 pesos(which appears to have been taken as the value of the lot

    sold during the administration) as the separate property of

    the husband who brought the lot to the marriage, and the

    treatment of the balance of the price received for this lot,

    together with the buildings thereon, as conjugal partnership

    property, it appearing from the record that these buildings

    were constructed out of the conjugal partnership funds,

    was in entire accordance with the provisions of article 1404,

    which provides that "the buildings erected during

    coverture on land belonging to one of the married couple

    will be considered as conjugal partnership property, after

    allowing the owner of the land the value thereof." The

    foregoing disposes of all the errors assigned by counsel for

    the appellant, except the alleged error of the trial court in

    refusing to order the inclusion in the inventory of the estate

    of the deceased of three parcels of land, held in the name ofthe appellee and claimed as her separate estate. It is

    contended by the appellant that these parcels of land were

    conveyed to the appellee during the coverture (thats

    marriage, incase youre wondering) by the said Hilario Lim

    either as a gift or for valuable consideration, and that in

    either event such conveyance was void under the provisions

    of articles 1334 and 1458 of the Civil Code. It appears from

    the evidence, however, that these parcels of land were not

    acquired by the appellee by conveyance from her husband,

    and that they were in fact conveyed to her by third parties

    by way of exchange for certain property inherited by her

    from her father's estate during the coverture, and they

    are, therefore, her separate property under the provisions

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    of paragraph 3 of article 1396, which provides that property

    acquired by exchange for other property belonging

    separately to one of the married couple is the separate

    property of the owner of the property for which it is

    exchanged. The trial court speaks of this property as dowry

    of the appellee, but there is nothing in the record which

    tends to prove that it was acquired as a part of her dowry,

    and indeed the evidence strongly supports the

    presumption that it was and continued to be a part of her

    separate estate (paraphernalia) which never acquired the

    "dotal" character.

    CPG: ADMINISTRATION OF EXCLUSIVE PROPERTY BY THE OTHER SPOUSE

    VELOSO VS.

    MARTINEZ

    Lucia Martinez is the widow of Domingo Franco and

    administratrix of his estate. Before Domingo died, he

    borrowed Php 4,500 from Mariano Veloso secured by jewelry.

    Veloso claims the husband pawned the jewelry to him with

    full knowledge and consent of Martinez. Martinez claims that

    the jewelry in question was her own property, inherited from

    her mother.

    Who is entitled to

    the jewelry?

    MARTINEZ.

    The record shows that the jewels were the sole and

    separate property of the wife, acquired from her mother,

    and in the absence of further proof, we must presume that

    they constituted a part of her paraphernal property. As such

    paraphernal property she exercised dominion over the

    same. (Article 1382, Civil Code.) She had the exclusive

    control and management of the same, until and unless she

    had delivered it to her husband, before a notary public, with

    the intent that the husband might administer it properly.

    (Article 1384, Civil Code.) There is no proof in the record

    that she had ever delivered the same to her husband, in any

    manner, or for any purpose. That being true, she could not

    be deprived of the same by any act of her husband, without

    her consent, and without compliance with the provisions ofthe Civil Code above cited.

    MANOTOKREALTY

    VS.COURT OF

    APPEALS

    Felipe Madlangawa claims that he has been occupying a

    parcel of land in the Clara de Tambunting de Legarda

    Subdivision since 1949 upon permission being obtained from

    Andres Ladores, then an overseer of the subdivision, with the

    understanding that the respondent would eventually buy the

    lot.

    Apr 2,50 - the owner of the lot, Clara Tambunting, died and

    her entire estate, including her paraphernal properties which

    covered the lot occupied by the private respondent were

    placed under custodia legis.

    Apr 28,50 - Don Vicente Legarda was appointed as a special

    administrator of the estate. Meanwhile the private

    respondent remained in possession of the lot in question.

    Mar 13,20,59 - Manotok Raealty became the successful

    bidder and vendee of the Tambunting de Legarda Subdivision

    pursuant to the deeds of sale executed in its favor by the

    Philippine Trust Company, as administrator of the Testate

    Estate of Clara Tambunting de Legarda. The lot in dispute was

    one of those covered by the sale. The Deed of Sale, among

    others, provided for the following terms and conditions:

    The VENDEE renounces the right to warranty incase of eviction with the knowledge of the risks of

    eviction and assumes its consequences with

    respect not only to the lots subject-of the above

    mentioned cases and claims but also with respect

    to any other lots subject of contracts of sale or

    promises to sell that may have been executed bythe deceased, Clara Tambunting de Legarda and/or

    Vicente L. Legarda, and it hereby relieves the

    estate of Clara Tambunting de Legarda and the

    Philippine Trust Company, in its capacity as

    Administrator thereof, of any and all liability with

    respect thereto in case of eviction.

    The VENDEE assumes the risk and expenses ofejecting the tenants or squatters on the said

    parcels of land if it decides to eject them

    In its effort to clear the Tambunting Subdivision of its

    squatters and occupants, the Manotok Realty caused the

    publication of several notices in the Manila Times and the

    Taliba advising the occupants to vacate their respective

    premises, otherwise, court action with damages would follow.

    Madlangawa was one of the many occupants who refused tovacate the lots they were occupying

    TC dismissed the petitioner's action. CA ruled that the only

    right remaining to the petitioner is to enforce the collection of

    the balance because accordingly, it stepped into the shoes of

    its predecessor (Don Vicente Legarda).

    Manotok Realty - Court of Appeals committed a reversible

    error in holding that the sale by Don Vicente Legarda in favor

    of the private respondent is valid, binding, and enforceable

    against the petitioner. Since there is no dispute that the

    property in question was the paraphernal property of Clara

    Tambunting, who died on April 2, 1950, Vicente Legarda had

    Whether Don

    Vicente Legarda

    could vlidly dispose

    of the paraphernal

    property?

    NO

    There is nothing in the records that will show that Don

    Vicente Legarda was the administrator of the paraphernal

    properties of Dona Clara Tambunting during the lifetime of

    the latter. Thus, it cannot be said that the sale which was

    entered into by the private respondent and Don Vicente

    Legarda had its inception before the death of Dona Clara

    Tambunting and was entered into by the former for and

    on behalf of the latter, but was only consummated after

    her death. Don Vicente Legarda, therefore, could not have

    validly disposed of the lot in dispute as a continuing

    administrator of the paraphernal properties of Dona Clara

    Tambunting.

    Art. 136 NCC. The wife retains the

    ownership of the paraphernal

    property.

    Art. 137 NCC. The wife shall have the

    administration of the paraphernal

    property, unless she delivers the

    same to the husband by means of a

    public instrument empowering him to

    administer it.

    In this case, the public instrument

    shall be recorded in the Registry of

    Property. As for the movables, the

    husband shall give adequate security.

    We are, therefore, led to the inevitable conclusion that the

    sale between Don Vicente Legarda and the private

    respondent is void ab initio, the former being neither anowner nor administrator of the subject property. Such

    being the case, the sale cannot be the subject of the

    ratification by the Philippine Trust Company or the

    probate court.

    Arsenal v. Intermediate Appellate Court(143 SCRA 40, 49) -

    Under the provisions of the Civil Code, a void contract is

    inexistent from the beginning. It cannot be ratified neither

    can the right to set up the defense of its illegality be

    waived. (Art. 1409, Civil Code).

    After the appointment of Don Vicente Legarda as

    administrator of the estate of Dona Clara Tambunting, he

    should have applied before the probate court for authority

    to sell the disputed property in favor of the private

    respondent. If the probate court approved the request,then Don Vicente Legarda would have been able to execute

    a valid deed of sale in favor of the respondent.

    Unfortunately, there was no effort on the part of the

    administrator to comply with the above-quoted rule of

    procedure nor on that of the respondent to protect his

    interests or to pay the balance of the installments to the

    court appointed administrator.

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    no authority whatsoever to sell the said property to the

    private respondent on May 12, 1950 since the former was

    appointed as administrator of the estate of Clara Tambunting

    only on August 28, 1950. Therefore, the questioned sale could

    not have bound Clara Tambunting's estate because the

    vendor Vicente Legarda neither acted as the owner nor the

    administrator of the subject property when the alleged sale

    took place.

    Madlangawa - the provisions of the deed of sale are a

    declaration or admission against the interest of the petitioner,and shows that the acts of Vicente Legarda had been ratified

    by the Philippine Trust Company and approved by the probate

    court. The petitioner, therefore, is allegedly estopped from

    questioning the authority of Vicente Legarda in selling the

    property in dispute.

    CPG: ENCUMBRANCE / DISPOSITION OF EXCLUSIVE PROPERTY

    PALANCA VS.SMITH

    BELL

    Smith, Bell , pending in the Court of First Instance of the city

    of Manila obtained a judgment against the said Emiliano

    Boncan for a sum of money. Later the said Smith, Bell & Co.

    obtained an execution out of said court which was levied

    upon the property in question in this case, which property

    was known as No. 16, situated in an alley without name

    running toward the old Santa Mesa race track, upon property

    belonging to the hacienda of Tuason & Co. After said

    execution was levied upon the property in question, theplaintiff and appellant herein commenced an action in the

    Court of First Instance of the city of Manila against the

    defendant herein, asking that said court dictate a sentence

    declaring her to be the only and exclusive owner of the

    property described in the complaint, with a right to the

    possession of the same, and that said attachment be

    dissolved. To this petition the defendants filed a general

    denial. After hearing the evidence adduced during the trial of

    the cause, the lower court denied the prayer of the petition of

    the plaintiff and appellant, absolving the defendants

    therefrom and charged the plaintiff with the costs. From this

    decision the plaintiff appealed to this court and made the

    following assignment of error - The court erred in not allowing

    as proven the transfer of property No. 16, above described,

    made on September 20, 1904, by Emiliano Boncan Yap in

    favor of his wife, Alejandra Palanca de Boncan, and in not

    finding that she is the sole and exclusive owner thereof,

    Emiliano Boncan Yap having no interest whatever in the

    property in question.

    Is the property

    conjugal property?

    YES

    An examination of the evidence brought to this court shows

    that the said Alejandra Palanca was the owner of certain

    property in the city of Manila, which was given by the said

    Emiliano Boncan, with the consent of the said Alejandra

    Palanca, as a guaranty for the payment of the sum of

    P14,000, which Emiliano Boncan borrowed from the

    International Banking Corporation. With the money so

    borrowed the said Emiliano Boncan constructed the house

    in question, and later, by a public document executed onthe 20th of September, 1904, conveyed the house in

    question to the plaintiff and appellant herein as a guaranty

    for the payment of the debt to the International Banking

    Corporation, for the guaranty of the payment of which the

    said plaintiff and appellant had given her private property.

    This P14,000, borrowed by the said Emiliano Boncan upon

    the credit of the property of his wife, became conjugal

    property (paragraph 3, art. 1401, Civil Code), and when the

    same was reinvested in the construction of a house, the

    house became conjugal property and was liable for the

    payment of the debts of the husband. (Art. 1408, Civil

    Code.) Believing that the foregoing conclusions in effect

    answer the assignments of error made by the appellant, and

    without discussing the same in detail, we are of the opinion,

    and so hold, that the judgment of the lower court should be

    affirmed, with costs. So ordered.

    LIM QUENCO VS.

    CARTAGENE

    SPANISH

    PRESUMPTION OF CPG

    TORELA VS.TORELA

    Decree 440157 was issued by the CFI of Negros Occidental in

    favor of Felimon Torela, married to Gallego, decreeing that he

    is the owner of a parcel of land (Lot 3770), and ordering that

    the same be registered. Consequently, OCT 29257 covering

    lot was issued in favor of Felimon. As the certificate of title

    was either lost or destroyed during the last world war, he fileda verified petition for reconstitution praying that after due

    publication in the Official Gazette, an order be issued setting

    the petition for hearing. Thereafter the court, orders the

    Register of Deeds to reconstitute the original as well as the

    owners duplicate of OCT 29257. Thus, OCT 6898 was in favor

    of Felimon, in lieu of the lost and/or destroyed one. Torela,

    filed a Motion Ex-Parte alleging that Lot. 3770 having been

    acquired by him by way of inheritance prior to his marriage to

    his first wife, Graciana Galeego, the Cadastral court ordered

    that land be registered in the name of Torela, married to

    Graciana Galeego, that his first wife died many years ago; and

    that he is married by second nuptial to Marciana Gepanago.

    He, therefore, prayed that the court order the Register of

    Deeds of Negros Occidental to change his (movants) civil

    status, appearing on the face of OCT, from Felimon, married

    to Graciana Gallego to Felimon Torella married to MarcianaGepango. The court, finding no opposition thereto and with

    the conformity of Clara Torela, daughter of Felimon by First

    marriage, granted the motion and ordered the Register of

    Deeds to change the civil status of the movant from Felimon

    Torela, married to Marciana Gepanto which is the actual civil

    status of the movant, upon payment of the required fees.

    Felimon executed a definite deed of sale, whereby, for and in

    consideration of P3,000.00, he sold said lot to Marcos and

    Maria Luna Mahilum, He also stated in the deed of sale that

    he was a widower by first marriage to Graciana Gallego, and

    now married to Marcina Gepango, that he is the registered

    owner of lot, having acquired it by inheritance from his

    parents before his marriage to Graciana Gallego, deceased.

    Whether or not the

    parcel of land

    herein involved is a

    conjugal property

    of the spousesFelimon Torela and

    Graciana Gallego

    (plaintiffs mother).

    The property question is one of those documented in Article

    1401 of the Old Civil Code. On the other hand, as it was

    inherited by Felimon from his parents and brought to the

    marriage with his first wife, the same is deemed his

    separate property (Art, 1396, Old Civil Code). For thesereasons, defendant Felimon had lawfully disposed of his

    property to the exclusion of his children by his first

    marriage. Accordingly, plaintiffs complaint was correctly

    dismissed by the court below. Petitioners claim that since

    the lot in questions was registered in the name of Felimon

    Torela, married to Graciana Gallego, it must be presumed to

    be the conjugal property of Felimon and Graciana so that

    one-half thereof should be adjudicated to them as their

    inheritance from their mother. While it is rule that all

    property of the marriage is presumed to be conjugal, as

    above stated, nonetheless the party who invoke the

    presumption must first prove that the property was

    acquired during the marriage. This proof is a condition sine

    qua not for the application of the presumption. In the

    instant case there in is nothing in the record to show that

    the lot in question was acquired during the marriage ofFelimon Torela and Graciana gallego. On the contrary, the

    factual finding of the CA is to the effect that Felimon

    acquired the land through inheritance and this conclusion is

    bolstered by that fact that no one of the petitioners herein,

    Clara Torela, gave her conformity to her fathers Ex-Parte

    Motion, wherein it was recited, inter alia, that Felimon had

    acquired the property by way of inheritance prior to his

    marriage to his first wife, Graciana Gallego. The

    circumstances that Decree 440157 of the CFI of Negros

    Occidental which confirmed the ownership of Felimon over

    the land in question described him as married to Graciana

    Gallego was merely descriptive of his civil status at that time

    and cannot be taken as proof that the land was acquired

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    The document was acknowledged before Notary Public. Upon

    its registration, Transfer Certificate was issued to spouses.

    According, however, to the plaintiffs while in their youth they

    had seen their father Felimon and their mother Graciana

    clean the lot in question, and when their mother died, their

    father married Marcina Gepango. In other words, the

    plaintiffs want us to believe that the parcel of land is a status

    and in conveying the land to another, they now assert their

    right to the estate appertaining to their mother. Alleging that

    they were deprived of their corresponding share from the

    property thus sold.

    during their coverture. The further circumstances that the

    land was registered during their marriage cannot in itself

    constitute proof that it was acquired during their marriage

    for land registration under Act. 496 does not confer title; it

    confirms a title already existing and which is registerable.

    PNB VS.COURT OF

    APPEALS

    Clodualdo Vitug died intestate so his estate was settled and

    distributed in special Proceeding 422 in the CFI of Pampanga

    wherein Donata Montemayor, his second wife, was the

    Administratrix.

    Meanwhile, Donata Montemayor executed a contract of lease

    of Lot 24, which is covered by TCT 2887-R in favor of her

    children Pragmacio and Maximo both surnamed Vitug. This

    lease was extended. By virtue of a general power od attorney

    executed by Donata Montemayor in favor of Pragmacio Vitug,

    the latter executed a contract of lease of the said lot in favor

    of Maximo Vitug.

    Pragmacio Vitug and Maximo Vitug filed an action for

    partition and reconveyance with damages in the CFI ofPampanga against Marcelo Mendiola, special administrator of

    the estate of Donata Montemayor who died earlier, Jesus

    Vitug, Sr., Salvador, Natalia, Prudencio all surnamed Vitug,

    Antonio, Francisco, Aurora, Pedro, Honorio, Corazon,

    Anselmo, Benigno, Eligio Jesusand Luz all surnamed Fajardo

    and the PNB.

    The subject of the action is 30 parcels of land which they

    claim to be conjugal property of the spouses Donata

    Motemayor and Clodualdo Vitug of which they claim a share

    of 2/11 of thereof. They assailed the mortgage to the PNB

    and the public auction of the properties as null and void. They

    invoked the case of Vitug vs. Motemayor, decided on Oct. 20,

    1953 which is an action for partition and liquidation of the

    said 30 parcels of land wherein the properties were found to

    be conjugal in nature.

    Does the

    presumption of

    conjugal life of

    properties acquired

    by the spouses

    during coverture

    provided for in

    Article 160 of the

    Civil Code apply to

    properties covered

    by a Torrens

    certificate of title in

    the name of the

    widow?

    When the properties were mortgaged to the PNB, they

    were registered in the name of Donata Montemayor,

    widow. Relying on the Torrens certificate of title covering

    properties, the mortgage loan applications of Donata were

    granted by the PNB and the mortgage were duly constituted

    and registered in the office of the Registered of Deeds. In

    processing the loan applications of Donata Montemaor, the

    PNB had the right to rely on what appears in the certificates

    of title and no more. On its face the properties owned by

    Donata Montemayor, a widow. The PNB had no reason to

    doubt nor question the status of said registered owner and

    her ownership thereof. Indeed, there are no liens and

    encumbrances covering the same. The well known rule in

    this jurisdiction is that a person dealing with a registered

    land gas a right to rely upon the face of the torrenscertificate of title and to dispose with the need if inquiring

    further, except when the party concerned has actual

    knowledge of facts and circumstances that would impel a

    reasonably cautions man make such inquiry. Article 160:

    All property of the marriage is presumed to belong to the

    conjugal partnership unless it be proved that it pertains

    exclusively to the husband or to the wife. The presumption

    applies to property acquired during the lifetime of the

    husband and wife. In this case, it appears on the face of the

    title that the properties were acquired by Donata

    Montemayor when she was already a widow. When the

    property is registered in the name of a spouse only and

    there is no showing as to when the property was acquired

    by said spouse, this is an indication that the property

    belongs exclusively to said spouse. And this presumption

    under Article 160 of the Civil Code cannot prevail when the

    title is in the name of only spouse and the rights of innocent

    third parties are involved. The PNB had no reason to rely on

    what appears on the certificates of the title of the

    properties mortgaged. For all legal purpose, the PNB is a

    mortgagee in good faith for at the time the mortgage

    covering said properties were constituted the PNB was not

    aware to any flow of the title of the mortgagor. At any rate,

    although actions for recovery of real property and partitions

    are real actions, however, they are actions in personal that

    bind only the particular individuals who are parties thereto.

    The PNB not being a party in said is not bound by the said

    decisions. Nor does it appear that the PNB was aware of the

    said decisions when it extended the above descriptive

    mortgage loans. Indeed, if the PNB knew of the conjugal

    nature of said properties it would not have approved themortgage applications covering said properties of Donata

    Montemayor without requiring the consent of all other

    heirs or co-owners thereof. Moreover, when said properties

    were sold at public auction, the PNB was a purchaser for

    value in good faith. So its right thereto is beyond question.

    MAGALLON VS.

    MONTEJO

    The petition seeks the annulment of a writ of execution issued

    by the respondent Judge. Case was instituted by the plaintiffs

    (private respondents herein) against Martin Lacerna to

    compel partition of parcel of land in Magsaysay, Davao del

    Sur, to which defendant had perfected a claim by homestead.

    The plaintiffs, claiming to be the common children of Martin

    and his wife, Eustaquia Pichan, asserted a right to one-half of

    the land as their mother's share in her conjugal partnership

    with Martin. While said defendant denied having contracted

    marriage with Eustaquia although he admitted living withher without benefit of marriage until she allegedly abandoned

    him as well as paternity of two of the plaintiffs who, he

    claimed, were fathered by other men, the Trial Court gave his

    denials no credence. The Trial Court further found that Martin

    had begun working the homestead, and his right to a patent

    to the land accrued, during his coverture with Eustaquia. The

    plaintiffs were declared entitled to the half of the land

    claimed by them. The IAC affirmed.

    It appears that at the time the case was brought, no

    certificate of title to the land had yet been issued to Martin

    Lacerna, although he had already complied with all the

    conditions necessary to a grant thereof. OCT P-11 568 was

    issued only while Lacerna's appeal was pending in the IAC.

    Is petitioner bound

    by final judgment

    rendered in an

    action to which she

    was not made a

    party? YES

    This ruling presumes that petitioner is the legal wife of

    Lacerna though no marriage contract was presented by

    Lacerna to prove his marriage to the petitioner either

    before or after the death of Eustaquia. Indeed, it is clear

    that the petitioner cannot assert any claim to the land other

    than by virtue of her supposed marriage to Lacerna. As a

    mere mistress, she cannot pretend to any right to it.

    The petitioner relies mainly, if not solely, on the fact thatthe certificate of title to the land carries her name as the

    "wife" of the owner Martin. Such entry on the certificate of

    title has been established by evidence no longer disputable

    as resulting from a mistake if, indeed, it was not procured

    through fraud. Moreover, the phrase "married to Epifania

    written after the name of Martin in said certificate of title is

    merely descriptive of the civil status of Martin and does not

    necessarily prove that the land is "conjugal" property.

    Neither can petitioner invoke the presumption established

    in Article 160 that property acquired during the marriage

    belongs to the conjugal partnership, there being no proof of

    her alleged marriage to Martin except that which arises by

    implication from the entry in the certificate of title and for

    the far more compelling reason that the homestead claim

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    While it is not disputed that said certificate of title refers to

    the same land homesteaded by Lacerna during his coverture

    with Eustaquia, for reasons to which the record before the

    Court offers no clear clue, it states on its face that it is issued

    in the name of " ... MARTIN LACERNA married to Epifania

    Magallon," the latter being the present petitioner.

    After the confirmative Decision of the IAC had become final

    and executory, the respondent Judge, on motion of the

    plaintiffs issued an alias writ of execution commanding the

    Provincial Sheriff to order the defendant Martin to divide andpartition the property, of which is the share of Eustaquia in

    the conjugal property, and plaintiffs being Pichan's children

    are also entitled thereto; and deliver portion of 5 hectares of

    the lot to the plaintiffs as their share to satisfy the said

    judgment and your fees thereon.

    Apparently, said writ was served on both Martin and

    petitioner, the latter filed with the Trial Court a "Motion for

    Intervention and to Stay Execution" alleging that the land

    subject of the writ was conjugal property of herself and

    Martin under a certificate of title issued way back 1978

    without legal impediments, and now incontestable," as well

    as valid, binding and legal unless declared otherwise in an

    independent proceedings, and praying that the property of

    herein intervenor be excluded from the enforcement of the

    writ of execution." Said motion was denied.

    The facts found by the lower courts which, in view of the

    finality of the latter's decisions, are binding upon this Court

    and can no longer be controverted, as when as the pertinent

    allegations of the petition, leave no doubt that the land,

    which rightfully pertained to the conjugal partnership of

    Martin and Eustaquia, the plaintiff's mother, and should have

    been titled in the names of said spouses, was, through fraud

    or mistaken, registered in the names of Martin and petitioner

    Epifania. In such a situation, the property should be regarded

    as impressed with an implied, or a constructive, trust for the

    party rightfully entitled thereto.

    If property is acquired through mistake or fraud, the person

    obtaining it is, by force of law, considered a trustee of an

    implied trust for the benefit of the person from whom the

    property comes. Clearly, the petitioner, as the trustee of a

    constructive trust, has an obligation to convey to the private

    respondents that part of the land to which she now claims an

    ostensible title, said portion rightfully pertaining to the

    respondents' deceased mother as her share in the conjugal

    partnership with Martin.

    on the land was shown to have been perfected during

    Martin's marriage to Eustaquia, mother of the private

    respondents.

    The writ of execution, however, must be set aside, though

    not for the reasons urged in the petition. The judgment of

    the respondent Trial Court merely declared the private

    respondents entitled to one-half of the land, without

    specifically ordering partition and delivery to them the

    same. A writ of execution cannot vary the terms of the

    judgment it is issued to satisfy, or afford relief differentfrom, or not clearly included in, what is awarded by

    judgment.

    Both the lower courts appear to have overlooked the fact

    that the surviving spouse is the legal and compulsory heir of

    the deceased husband or wife; otherwise, consistent with

    the finding that the half portion of the land sued for

    pertained to the late Eustaquia as her share in the conjugal

    partnership with Martin, they should have ruled that Martin

    concurred with the three private respondents in the

    succession to said portion, each of them taking an equal

    share. Unfortunately, said error is beyond review because

    Martin allowed the judgment to become final and executory

    without raising that point of law, even on appeal.

    The writ of execution is set aside. Instead of enforcing saidwrit, the respondent Trial Court is ordered to effect the

    partition of the land in accordance with the terms of its now

    final and executory decision and the provisions of Rule 69.

    CUENCA VS.

    CUENCA

    Private respondents Restituto and Meladora Cuenca filed a

    complaint for recovery of real property and damages against

    the petitioners before the then CFI of Davao del Norte. The

    lower court rendered a decision in favor of the petitioners.

    The lower court dismissed the complaint. The appellate court

    reversed the decision of the lower court. It rendered a

    decision in favor of the private respondents.

    This Case involves parcels of land which were claimed by two

    sets of families. Private respondents Restituto and Meladora

    Cuenca claimed ownership on the ground that they are the

    legitimate children of Agripino Cuenca and Maria Bangahon,

    both deceased. They alleged that some of the parcels are

    paraphernal property of Maria while all the others are

    conjugal properties of Maria and Agripino. They also alleged

    that Agripino and Engracia Basadre were not legally married

    because at the time they lived together Agripino was married

    to a certain Jesusa Pagar.

    The petitioners (defendants below) denied the legitimacy of

    the marriage between Agripino and Maria as well as the

    legitimacy of the plaintiffs as children. They claimed that

    Agripino and their mother Engracia were legally married and

    that they are the legitimate children of the couple. Theycontend that the subject parcels of lands are conjugal

    properties of Agripino and Engracia.

    The documents presented are proofs that the properties

    belong exclusively to Maria as her paraphernal property, a

    fact declared by the husband in a declaration against his

    interest. It was error for the trial court to brush aside the

    importance of the declaration in the extrajudicial settlement

    of the estate of Maria. These public documents carry

    sufficient evidentiary weight to prove the origin of the

    properties and the nature of their ownership as properties

    brought into the marriage by Maria to Agripino as against the

    bare testimony of the defendants and their witnesses.

    These, and other, pieces of evidence established that the

    The appellate court declared Engracia Basadre as surviving

    spouse. There was, therefore no need to prove the legality

    of marriage between petitioners Engracia and Agripino

    much less to prove the legitimacy of the other petitioners

    who are undoubtedly the children of Agripino and Engracia.

    The petitioners also alleged the finding of newly discovered

    evidence to prove that the lands were conjugal propertiesof Agripino and petitioner Engracia. The petitioners alleged

    that these parcels were surveyed for Agripino and approved

    when Agripino was already married to Engracia as indicated

    in the documents, hence, there is the presumption that

    these are conjugal properties and therefore petitioners

    have hereditary rights over these properties.

    Article 160: "All property of the marriage is presumed to

    belong to the conjugal partnership, unless it be proved that

    it pertains exclusively to the husband or to the wife," this

    Court ruled that the presumption refers only to the

    property acquired during marriage and does not operate

    when there is no showing as to when property alleged to be

    conjugal was acquired.

    The documents sought to be presented as newly discovered

    evidence do not show that the claims to the parcels wereperfected during the marriage of Agripino and petitioner

    Engracia. The perfection of the homestead claims is

    considered the time of acquisition of the properties. The

    fact that these parcels were surveyed for Agripino and

    approved during their marriage is not determinative of the

    issue as to whether or not the parcels were conjugal

    properties. Moreover, the documents show that 5 of the 8

    parcels are titled in the name of either respondent

    Meladora or Restituto. The presumption cannot prevail

    "when the title is in the name of only one spouse and the

    rights of innocent third parties are involved. The non-

    applicablility of the presumption should also be upheld. The

    petition DISMISSED. The resolutions of the appellate court

    are AFFIRMED.

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    plaintiffs are the forced heirs of Maria and Agripino, who by

    law should succeed to the possession and ownership. On the

    other hand, defendants' evidence consist only of the oral

    testimonies which proved nothing concrete as they merely

    are inferences conveniently tailored to support their claim.

    Agripino and Maria were legally married with Restituto and

    Meladora Cuenca as their issues; that Maria Bangahon

    brought properties into her marriage; that the couple

    acquired properties during the marriage; that by virtue of the

    extrajudicial settlement executed by Agripino Cuenca and hischildren, Restituto is the absolute owner of the land; that one

    half of the land belongs to Agripino and the other half to

    Maria the same having been acquired by them during their

    marriage-conjugal partnership property. Upon the dissolution

    of the conjugal relationship by the death of spouses, one half

    goes to Agripino which portion after the death of Agripino

    goes to his alleged third wife, Engracia Basadre-Cuenca

    together with the plaintiffs as forced heirs of Agripino.

    The petitioners attached to their motion an alleged newly

    discovered evidence consisting of a certified true copy of the

    Register of Birth of petitioner first child of Agripino and

    petitioner Engracia which discloses that he is a legitimate

    child of the couple and a notarized public document which

    discloses that Jesusa Pagar was married to someone

    disproving the respondents' evidence. The dispositive portionof the CA decision states that petitioner Engracia Basadre was

    entitled to inherit from Agripino Cuenca together with the

    latter's legitimate children by Maria, the private respondents

    herein.

    WHAT IS INCLUDED IN CPG?

    ZULUETA VS.PAN-

    AM

    In an action for damage against Pan-am, plaintiff, his wife and

    their daughter were awarded moral and exemplary damage

    as well as attorneys fee. Said action was based on a breach of

    contract of carriage coupled with quasi-delict. Pending appeal,

    Mrs. Zulueta separated from the case insofar into

    compromise agreement with Pan-am wherein she settled for

    P50,000.00. A motion to dismiss the case insofar as Mrs.

    Zulueta is concerned was filed, but was denied in the ground

    that a wife cannot bind conjugal partnership without the

    husband consent, except in cases provided by law. Hence this

    motion for reconsideration.

    Whether or not the

    damages involved

    in the present case

    are among those

    forming the part of

    the conjugal

    partnership.

    The damages in question arose from a breach of plaintiffs

    contract of carriage with defendant, for which plaintiff paid

    their fare with funds presumably belonging to the conjugal

    property. Said damages, therere fall under Article 153(1),

    the right thereto having been acquired by onerous title

    during the marriage. The damages in the case at bar do not

    come also under any of the provisions of Article 148 NCC or

    other provisions forming part of Chapter 3, Title IV of Book I

    NCC, which chapter is entitled Paraphernal Property.

    What is more if that which is acquired by right of

    redemption or by exchange with other property belonging

    to only one of the spouses and that which is purchased

    with the exclusive money of the wife or of the husband:

    belonging exclusively to such wife or husband, it follows

    necessarily that which is acquired with money of conjugal

    partnership belongs thereto or forms part thereof.

    Motion denied.

    MENDOZA VS.

    REYES

    This case originated with the filing of a complaint by Ponciano

    S. Reyes with the CFI of Rizal, for the annulment of a deed of

    sale of 2 parcels of land with their improvements, executed by

    his wife, Julia R. De Reyes as vendor and the spouses Efren V.

    Mendoza and Inocencia R. De Mendoza, as vendees. Ponciano

    S. Reyes averred that said properties were conjugal properties

    of himself and his wife and that she had sold them to

    petitioners "all by herself" and without his knowledge orconsent. Petitioners Efren V. Mendoza and Inocencia R. De

    Mendoza alleged in their answer that the properties were

    paraphernal properties of Julia R. de Reyes and that they had

    purchased the same in good faith and for adequate

    consideration. In a separate answer, petitioner Julia R. De

    Reyes, supported the spouses Mendozas' contentions. CFI

    dismissed the complaint and declared the properties in

    question exclusive and paraphernal properties of petitioner

    Julia R. De Reyes. It ruled that she could validly dispose of the

    same without the consent of her husband and that the

    Mendozas are innocent purchasers. CA reversed the decision.

    Hence, this petition.

    Whether the

    properties are the

    conjugal properties

    of the spouses?

    YES

    The applicable provision of law is Article 153 of the Civil

    Code which provides: The following are conjugal

    partnership property: That which is acquired by onerous

    title during the marriage at the expense of the common

    fund, whether the acquisition be for the partnership, or for

    only one of the spouses;

    The presumption found in Article 160 of the Civil Code must

    also be overcome by one who contends that the disputedproperty is paraphernal Article 160 provides: All property of

    the marriage is presumed to belong to the conjugal

    partnership, unless it be proved that it pertains exclusively

    to the husband or to the wife. There is no question that the

    disputed property was acquired by onerous title during the

    marriage. But were the funds used to buy the lot and build

    the improvements at the expense of the common fund? The

    records show that the funds came from loans obtained by

    the spouses from the Rehabilitation Finance Corporation.

    Under Article 161 of the Civil Code, all debts and obligations

    contracted by the husband and the wife for the benefit of

    the conjugal partnership are liabilities of the partnership. If

    the fact that property acquired during marriage was

    registered in the name of the husband alone does not affect

    its conjugal nature, neither does registration in the name of

    the wife. Any person who buys land registered in themarried name of the wife is put on notice about its conjugal

    nature. Furthermore, the consent of the Ponciano Reyes to

    the mere lease of the properties was demanded by the

    Mendozas allegedly for their own protection, yet when it

    came to the deed of sale which entailed a greater transfer

    of rights such consent was not required.

    CA ruling affirmed that properties are conjugal properties.

    IMPROVEMENTS ON CPG PROPERTY

    CALIMLIM VS.

    FORTUN

    Mercedes Calimlim-Canullas (petitioner) and Fernando

    Canullas were married Dec 19, 1962. They begot 5 kids. They

    lived in a house on the residential land in question, located at

    Bacabac, Bugallon, Pangasinan. After Fernandos dad died in

    1965, he inherited the land. In 1978, Fernando abandoned

    (1) WON the

    construction of a

    conjugal house on

    the exclusive

    (1)Yes. A correct interpretation of Art 158 yields that: Both

    the land and the building belong to the conjugal partnership

    but the conjugal partnership is indebted to the husband for

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    this family and lived with Corazon Daguines (private

    Respondent) During the pendency of this appeal, they were

    convicted of concubinage by the CFI, which judgment had

    become final. On april 15, 1980, Fernando sold the subject

    property with the house thereon to Corazon Daguines for the

    sum of P2000. In the deed of sale, Fernando described the

    house as also inherited by me from my deceased parents.

    Corazon however was unable to take possession of the house

    and lot because of Mercedes, so she initiated a complaint

    against Mercedes for the quieting of title and for damages.

    Mercedes claims that the house in dispute where she and herchildren were residing, including the coconut trees on the

    land, were built and planted with conjugal funds and through

    her industry; she also claims that the sale of land together

    with the house and improvements to Corazon was null and

    void because they are CONJUGAL PROPERTIES and she had

    NOT GIVEN CONSENT to the sale.

    The original judgment declared Corazon as the lawful owner

    of the land in question as well as the of the house erected

    on said lands. Upon reconsideration prayed for by Mercedes,

    respondent court amended the prior decision and resolved

    that the plaintiff (Corazon) is (still) the true owner of the land

    in question and the 10 coconut trees, (but) declared the sale

    of the conjugal house to plaintiff including 3 coconut trees

    and other crops planted during the conjugal relation between

    Fernando Canullas and his legitimate wife (Mercedes). Hencethis case:

    property of the

    husband ipso facto

    gave the land the

    character of

    conjugal property

    (2) WON the sale of

    the lot together

    with the house and

    improvementsthereon was valid

    under the

    circumstances

    surrounding the

    transaction

    the value of the land. The spouse owning the lot becomes a

    creditor of the conjugal partnership for the value of the lot,

    which value would be reimbursed at the liquidation of the

    conjugal partnership. Fernando could not have alienated

    the house lot to Corazon since Mercedes had not given her

    consent to said sale.

    (2)No, the contract of sale was null and void for being

    contrary to morals and public policy. The sale was made by

    a husband in favor of a concubine after he had abandonedhis family and left the conjugal home where his wife and

    children lived and from whence they derived their support.

    The sale was subversive of the stability of the family. As

    provided by Art 1409, contracts such as this shall be void

    and inexistent. Also, art 1352 states contracts with unlawful

    cause, produce no effect whatsoever. Additionally, the law

    emphatically prohibits the spouses from donating or selling

    property to each other subject to certain exceptions. This

    applies even to couples who are not married but are living

    as husbandand wife

    Wherefore, the decision of respondent judge and his

    resolution on petitioners motion for reconsideration are

    hereby set aside and the sale of the lot, house and

    improvements in question, is hereby declared null and void.

    MARAMBA VS.

    LOZANO

    CHARGES UPON & OBLIGATIONS OF CPG: WITH CONSENT

    JAVIER VS.OSMENA

    In 1890, Petrona Javier (Javier), daughter of FJ and MC,

    married Florentino Collantes.

    Before 1892, Florentino, husband, was employed by his

    father-in-law, FJ, in a commission business. One of their

    clients was Osmena who consigned tobacco to them from

    Cebu. Upon retirement of FJ, Florentino took over the

    commission business as an independent commission

    merchant (broker). He also assumed the debt owed by FJ to

    Osmena.

    In 1901, MC, mother of Petrona died. FJ subsequently married

    one PS. In 1908, however, FJ dies as well, allowing Javier to

    inherit two properties. For purpose of consolidating full

    ownership of the properties, Javier secured a loan and then

    purchased from FJs second wife, PS, the latters usufructory

    rights.

    In 1913, FC, husband of Javier, was ordered by the court to

    pay his debt to Osmena . The sheriff was thereby ordered to

    auction rights, title, interests, and shares of the property of FC

    (including the inherited properties of his wife and the

    usufructory rights purchased in 1911.) Notwithstanding

    protests from Javier, the two properties were sold to theestate of Osmena for P500 each. This included the usufructory

    rights.

    Javier filed a complaint against Osmena alleging that the

    inherited properties, as well as the usufructory rights were

    exclusive and not part of conjugal property and thus prayed

    for the sale to be annulled.

    Respondent estate of Osmena, admitting that the properties

    involved were indeed exclusive, still claimed that the

    usufructory rights, being purchased from the conjungal funds,

    should be deemed conjugal in nature. He also claimed that

    the payment due should come from the fruits of the said

    properties and thus, a receiver should be appointed to

    manage such revenues due to the respondent.

    CFI annulled the sale and cancelled the registration of

    property in the name of respondent Osmena.

    Osmena then appealed to the SC.

    (1) WON sum owed

    to Osmena estate

    can/should be paid

    from

    fruits/revenues of

    the exclusive

    properties of the

    wife, PJ.

    (2) WON a receiver

    should be assigned

    to collect fruits of

    exclusive properties

    as prayed for by

    Osmena estate.

    (1) Yes. The court delved into the nature of the debt. It

    stated that there was a presumption in fact that family

    expenses come from salaries for services rendered. Since

    debt was incurred by the husband during the marriage (by

    virtue of him assuming the debt from his father-in-law) and

    such a debt was for the support of the family fruits and

    revenues of separate properties, being conjugal in nature,

    should answer the obligation . These debts are not personal

    or private debts at all.

    (2)No. Art. 1984 of the CC says that the wife has the right to

    manage her paraphernal property and Art. 1412 says that

    the husband is the administrator of the conjugal property.

    Appointment of a receiver shall deprive both the husband

    and the wife of these rights. There is therefore no need for

    such an appointment.

    VDA.DESTA.

    ROMANA VS.PCIB

    DBPVS.ADIL Spouses Patricio Confesor and Jovita Villafuerte

    obtained a P2k agricultural loan from the

    Agricultural and Industrial Bank, now the

    Whether the

    execution of the

    2nd

    PN by the

    Prescription has set in as to the 1st

    PN as of February 10, 1940. However,

    when Confesor executed the 2nd

    PN on April 11, 1961 whereby he

    promised to pay the amount covered by the previous PN on or before June

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    Development Bank, as evidenced by a PN

    whereby they bound themselves solidarily to pay

    in 10 equal yearly amortizations. But the

    obligation remained unpaid and had prescribed.

    Confesor, then a member of Congress, executed

    a 2nd

    PN acknowledging the loan and promising

    to pay on or before June 15, 1961 otherwise he

    would agree to the foreclosure his mortgage and

    he would pay the amount if he can secure a

    certificate of indebtedness from the government

    of his back pay. Still, the amount remainedunpaid. DBP sued the spouses for the payment of

    the loan.

    MTC ORDERED the spouses to pay P5,760.96

    plus additional daily interest of P1.04 from

    September 17, 1970 (date of filing of complaint),

    P576 equivalent to 10% of the total claim by way

    of AF and incidental expenses plus interest at the

    legal rate as of September 17, 1970, until fully

    paid and the costs of the suit.

    CFI REVERSED and DISMISSED the complaint

    and counter-claim, holding that Confessor cannot

    bind the CPG without his wifes consent under

    Art. 166, NCC. DENIED DBPs MR.

    DBP: Judge Midpanto Adil refused to recognize

    that the right to prescription may be renounced

    or waived; and that in signing the 2nd

    PN, Patricio

    Confesor can bind the conjugal partnership or

    otherwise became liable in his personal capacity.

    husband alone,

    confirming the

    loan by the

    spouses, can bind

    the CPG?

    YES

    15, 1961, and upon failure to do so, agreed to the foreclosure of the

    mortgage, he thereby effectively and expressly renounced and waived his

    right to the prescription of the action covering the first promissory note.

    This is not a mere case of acknowledgment of a debt that has prescribed

    but a new promise to pay the debt. The consideration of the new PN is the

    pre-existing obligation under the 1st

    PN. The statutory limitation bars the

    remedy but does not discharge the debt.

    Under Art. 165, CC, the husband is the administrator of the CPG. As such

    administrator, all debts and obligations contracted by the husband for the

    benefit of the CPG are chargeable thereto. Confesor signed the 2

    nd

    PN forthe benefit of the CPG. Hence the conjugal partnership is liable for this

    obligation.

    CHARGES UPON & OBLIGATIONS OF CPG: WITHOUT CONSENT

    LUZON SURETY VS.

    DEGARCIA

    Ladislao Chavez, as principal, and Luzon Surety

    Co. executed a surety bond in favor of the PNB to

    guaranty a crop loan of P9k to Chavez. Vicente

    Garcia, together with Chavez and Ramon Lacson,

    as guarantors, signed an indemnity agreement

    binding themselves solidarily for any and all

    damages and other burdens Luzon Surety Co.

    may at any time sustain. The PNB sued Chavez

    and Luzon Surety Co. to recover the amount of

    P4,577.95. Luzon Surety Co. filed a third-party

    complaint against Chavez, Lacson and Garcia,

    based on the indemnity agreement.

    CFI ORDERED Chavez and Luzon Surety Co. to

    pay and likewise ordered Chavez, Garcia, and

    Lacson, to pay Luzon Surety Co. the total amount

    to be paid by it to PNB. Then, it issued a writ of

    execution against Garcia for the satisfaction of

    the claim of Luzon Surety Co. Thereafter, the

    sugar quedans of the Sps. Garcia were levied and

    garnished from their sugar plantation. The Sps.

    Garcia filed for preliminary injunction, which was

    made permanent

    CA AFFIRMED the permanent preliminary

    injunction.

    Whether the CPG,

    in the absence of

    any showing of

    benefits received,

    could be held

    liable on an

    indemnity

    agreement

    executed by the

    husband to

    accommodate a

    third party in

    favor of a surety

    company?

    NO

    The husband, as such administrator, the only obligations incurred by him

    that are chargeable against the CPG are those incurred in the legitimate

    pursuit of his career, profession or business with the honest belief that he

    is doing right for the benefit of the family. The husband in acting as

    guarantor or surety for another in an indemnity agreement did not act for

    the benefit of the CPG. There must be the requisite showing then of some

    advantage which clearly accrued to the welfare of the spouses. There is no

    proof that Vicente Garcia in acting as surety or guarantor received

    consideration therefor, which may redound to the benefit of the CPG.