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GR No. 109307 November 25, 1999



Petitioners filed an action against Lutero Romero and DBP Bank for the reconveyance of a parcel of land alleging that
the said property was conveyed to Romero by their father by virtue of a trust.
In 1939, Eugenio (father of petitioners), obtained the rights and interest to the then public land from the Jaug spouses
but since he had already applied for a homestead previously, he could no longer apply for this said land. As a result he
caused the application to be placed under the name of his eldest son, Eustaquio.
When Eugenio died, the said land was apportioned to the children who subsequently possessed their respective
Romero alleged that he was subsequently forced to sign 3 affidavits which purportedly sold the shares to his other
siblings. He repudiated the said affidavits, causing his sisters to file estafa charges against him.

Whether or not a trust was created between Eugenio and Romero for the benefit of the heirs of the former?

NO. There was no trust, express or implied.
Even if there was trust, it would be void for being contrary to law. Eugenio Romero was never the owner of the subject
land because all he obtained from the Jaug spouses were the rights and interests to the land. He could not have
owned it as his application for homestead patent was disapproved.
More importantly, there was no evidence of the supposed trust. A trust is a legal relationship between a person having
an equitable ownership in property and another owning a legal title to such property. The equitable ownership of the
former entitles him to perform certain duties and powers by the latter.
Trust relations can therefore be express or implied. Express being those created by direct and positive acts of the
parties, by a writing or a deed, or will or by words that evidence an intention to create a trust.
Implied trusts refer to those that are deducible from the nature of the transaction as matters of intent or which are
superinduced on the transaction by operation of law as a matter of equity, independently of the particular intention of
the parties. Implied trust can either be resulting or constructive trusts, both coming by operation of law.
Resulting trusts arise from the equitable doctrine that valuable consideration and not legal title determines the
equitable title or interest are presumed always to have been contemplated by the parties. While cosntructive trusts are
created by construction of equity to satisfy the demands of justice and prevent enrichment.