Intestate of San Pedro v CA (265 SCRA 733)

FACTS:
The case involves two petitions which were consolidated by the court in its decision.

1. GR 103727

Engracio San Pedro, as heir-judicial administrator of Plaintiff Intestate, filed a complaint
for recovery of real property/ reconveyance with damages and prayer for preliminary
injunction against private defendants Ocampo, Buhain and dela Cruz.
San Pedro alleged that defendants acquired portion of the subject estate by
employing fraud, bad faith and misrepresentation.
RTC of QC dismissed the complaint saying that the defendants are already the
registered owners covered by the Torrens Title - which cannot be defeated by the
alleged Spanish Title of San Pedro. The Spanish Title also stated that the estate shall be
excluded from the coverage of Titulo Propriedad No. 4136. The court ordered Plaintiff
Intestate to pay each defendant the amount of 5,000 and atty fees.
Motion for Recon was denied. Petitioner filed an appeal, CA dismissed.

2. GR 106496

Engracio San Pedro and Justino Benito filed a petition for letter of administration over
the intestate to be appointed as administrator and co-administrator. Judge Echeverri
appointed San Pedro as administrator and the court issued letter of administration in his
favor upon posting a bond of 10,000.
Republic of the Philippines filed a motion for intervention and opposition to the petition,
claiming that the Titulo de Propriedad is inadmissible and ineffective proof of ownership
in court and it is invalid.
Republic filed a motion to suspend the proceedings but the Republics opposition to
the petition for letter of administration was dismissed. Republic filed Motion for Recon.
The Judge declared Titulo de Propriedad as null and void and excluded all lands
covered from the inventory of the estate of the late Mariano San Pedro.
bPetitioner-heirs appealed to CA. CA dismissed.

ISSUES:
1.Whether or not the lower court committed grave abuse of discretion amounting to
lack of jurisdiction in settling the issue of ownership of the estate covered by Titulo de
Propriedad No. 4136?

2. Whether or not the lower court committed error in excluding from the inventory of the
estate all lands covered by Titulo de Propriedad No. 4136 on the ground that it is null
and void?

RATIO:

1.NO. It is within the jurisdiction of the lower court functioning as probate court. The
jurisdiction of the Probate Court is not limited to the determination of who the heirs are
and what shares are due them. Their main function is to settle and liquidate the estate
of the deceased so as to rule on whether the inventory of the estate properly included
them for distribution of the net assets estate to lawful heirs.

2.NO. The lower court did not commit any error when it declared Titulo de Propriedad
No. 4136 as null and void, consequently excluding all lands covered by the said title
from the inventory of the estate.

Under PD 892, the system of registration under Spanish Mortgage Law was abolished
and all holders of Spanish Titles should cause their lands to be registered under Land
Registration Act within 6 months from date of effectivity or until August 16, 1976.
In both cases, petitioner-heirs did not adduce evidence to show that Titulo de
Propriedad No. 4136 was brought under the operation of PD 892. There was no
certificate of title shown.

Also, Titulo de Propriedad No. 4136, under PD 892, is inadmissible and ineffective as
evidence of private ownership in special proceedings case. Since the Titulo was not
registered under Land Registration Act, said Titulo is inferior to the registered title of
defendants Ocampo, Buhain and dela Cruz. Torrens title of the latter enjoys the
conclusive presumption of validity.

Petitioner-heirs failed to present neither the original Titulo nor a genuine copy thereof
(only an alleged illegible copy was presented). Even the secondary evidence
presented was also not admissible.

RULING:
The Titulo de Propriedad is null and void and no rights can be derived therefrom. All lands
covered by said Titulo are excluded from inventory of the estate. The petition for letter of
administration closed and terminated. The heirs are disallowed to exercise any act of possession
or ownership and ordered to vacate.