Ramos vs CA

G.R. No. 108121

FACTS:
Herminio Ramos sold to Lydia Celestino, both Central Bank employees, his rights to buy
a parcel of land under the People’s Homesite & Housing Corporation. The corresponding
transfer certificate of title was then issued in the name of Ramos, and the duplicate copy
was then delivered to Lydia’s possession. Lydia continued to pay for the amount of the
parcel of land to Ramos. Since the title was still in the name of Ramos, a Special Power of
Attorney was then executed in favor of Lydia to do any act of disposition over the
property in controversy, and both recognized this as the existing implied trust between
the two parties. This was done to conceal Lydia’s disqualification to acquire another
parcel of land within PHHC. However, after the death of Herminio, in another civil case,
the Court awarded the duplicate copy of the TCT to the wife of Ramos, the latter declaring
the duplicate copy to have been lost. Hence, Celestino filed an action. The lower Court
ruled in favor of Lydia and recognized that there was an implied trust and that the action
for reconveyance had not yet prescribed. However, petitioners argued that the lower
Court erred in its decision.

ISSUE:
Whether or not there exists a resulting trust.

HELD:
No. A resulting trust is an "intent-enforcing" trust, based on a finding by the court that in
view of the relationship of the parties their acts express an intent to have a trust, even
though they did not use language to that effect. However, if the purpose of the payor of
the consideration in having title placed in the name of another was to evade some rule of
the common or statute law, the courts will not assist the payor in achieving his improper
purpose by enforcing a resulting trust for him in accordance with the "clean hands"
doctrine. Otherwise stated, as an exception to the law on trusts, "[a] trust or a provision
in the terms of a trust is invalid if the enforcement of the trust or provision would be
against public policy, even though its performance does not involve the commission of a
criminal or tortious act by the trustee."