Académique Documents
Professionnel Documents
Culture Documents
SECOND DIVISION The document was inscribed in the Register of Deeds of Iloilo
on February 24,1955, Inscription No. 20814, Page 270, Vol. 64
(Exhibits, p. 20).
G.R. No. L-26855 April 17, 1989
WHEREFORE, the judgment appealed from is hereby 5. That, plaintiffs' co-owners had never offered for sale
reversed and another entered, dismissing plaintiff's their interest and shares over the said land to the plaintiffs
complaint. No pronouncement as to costs. (p. 29 Rollo) prior to the sale in favor of the defendants, nor given
notice of such intention on their part; and that, no notice
The facts of the case are as follows: in writing has been given by said co-owners to the
plaintiffs of the said sale, such that, plaintiffs came to
learn of it only from other source;
On February 11, 1946, one Gelacio Garcia died intestate,
leaving a parcel of unregistered land about 372 sq. meters,
situated in the Municipality of Tubungan, Province of Iloilo 6. That, plaintiffs would have purchased the interest and
(Exhibits, p. 19). On his death the property was inherited by his shares of their co-owners had the latter offered the same
nephews, nieces, grandnephews who are the descendants of to them prior to the sale thereof to the defendants; and
his late brothers, Pedro, Simeon, Buenaventura and Marcos that, within 30 days after learning of the sale made to the
(TSN, Sept. 6,1956, p. 3). defendants under annexes 'A', 'B' and 'B-l', plaintiffs made
repeated offer to the defendants to allow them to
redeem said interest and shares acquired by the
On December 3, 1954, the heirs, Juanita Bertomo, Joaquin defendants in accordance with the right granted to the
Garcia, Porfirio Garcia, Dioscoro Garcia, Flora Garcia, plaintiffs by law in such a case, offering a reasonable
Consolacion Garcia, Remedios Garcia, Trinidad Garcia, price thereof of P300 taking into consideration the fact
Baltazar Garcia signed a document entitled, "Extra-judicial that the defendants had acquired only 3/4 of the land of
Partition and Deed of Sale" (Exhibits, p. 19). The parcel of land 372 square meters more or less, in area with assessed
subject of the document was described as follows: value of P110 and a fair market value of 372 at Pl per
square meter, the price actually obtaining in the locality
A parcel of residential land, about 372 square meters, lst at the time of the sale thereof under Annexes 'A', 'B' and
class, Identified as Assessor's Lot No. 107, Block No. 8, 'B-l'; however, the defendants refused and have until the
bounded on the north by Paz and Federal Streets; on the present refused to grant redemption thereof giving no
south by Tabaosares and Antonia Tacalinar; on the East reason why other than challenging the plaintiffs to bring
by Piedad Street; and on the West by Paz Street. This their case in court:
parcel of land has no concrete monuments to indicate its
boundaries but there are dikes, stones and temporary 7. That, the circumstances surrounding the transaction
fences used as landmarks and boundary signals. This between the defendants and plaintiffs' co-owners, the
parcel of land is covered by Tax Declaration No. 1149, S. vendors, were such that defendants could not have
of 1947, in the name of Gelacio Garcia, and its assessed actually paid nor the vendors actually received the total
value of P110.00. (p. 19, Exhibits) price of P800 as stipulated in the deeds Annexes 'A', 'B'
and 'B-l' while the said price fixed is grossly excessive and
1|Page
highly exaggerated and prohibitive for evidently ulterior execute the corresponding deed pursuant to the
motive: provisions of Section 10 of Rule 39 of the Rules of Court;
8. That, the land herein described is an ancestral property (c) Without pronouncement as to costs.
and plaintiffs have actually a house standing thereon and
having lived thereon ever since, such that, the
On October 14, 1957 plaintiffs filed their notice of Appeal
defendants' refusal to allow redemption thereof has
predicated on "(a) failure of the Court to adjudge the real or
caused the plaintiffs mental torture, worry and anxiety,
reasonable price of the sale or otherwise the redemption
forcing them to litigate and retain services of counsel,
value thereof; (b) failure of the Court to adjudge damages
therefore, plaintiffs demand against the defendants P500
including attorney's fees in favor of the plaintiffs and the costs."
for moral damage, P500 for exemplary damage, P300 for
(Record on Appeal, p. 18).
attorney's fees, aside from actual expenses incurred; and,
furthermore, P5 monthly as reasonable value of
defendants' occupation of a portion of the premises Defendants filed their own notice of appeal on October 15,
counting from the filing of this complaint. 1957 (Record on Appeal, p. 19).
They prayed that the trial court render judgment: On appeal the Court of Appeals in a decision promulgated on
August 31, 1966 reversed the decision of the trial court and
rendered another one dismissing plaintiff's complaint with no
1. Declaring the plaintiffs to be entitled to redeem from
pronouncement as to costs (Rollo, p. 22).
the defendants for the price of P300 or for such
reasonable price as may be determined by this
Honorable Court the interest and shares over the land The instant petition for review by certiorari was filed with the
described in this complaint of plaintiffs' co-owners, Court on December 12, 1966 (Rollo, p. 11). The Court at first
Joaquin, Porfirio, Flora, Dioscoro, Consolacion, Remedios, dismissed the petition in a resolution dated December 22,
Trinidad, Baltazar, Rosario, Margarita, Dolores, Fortunata 1966, for insufficient supporting papers (Rollo, p. 35) but
and Simon, all surnamed Garcia, and Resurreccion, reconsidered the said Resolution of Dismissal later in a
Serafin and Buenaventura, all surnamed Tagarao, sold by Resolution dated February 8, 1967 (Rollo, p. 97) as prayed for in
them to the defendants under the deeds of sale Annexes a motion for reconsideration filed by petitioners on February 1,
'A', 'B' and 'B-l' of this complaint; and ordering the 1967 (Rollo, p. 38). The same Resolution of February 8, 1967
defendants to execute the proper instrument of gave due course to the petition.
reconveyance or redemption thereof in favor of the
plaintiffs; and, ordering them to vacate the premises; The Brief for the Petitioners was filed on June 9,1967 (Rollo, p.
106); the Brief for the Respondents was received in the Court
2. Condemning the defendants to pay to the plaintiffs on August 31, 1967 (Rollo, p. 119).
P500 for moral damage; P500 for exemplary damage;
P300 for attorney's fees and actual expenses incurred; P5 Petitioners having manifested they would not file reply brief on
monthly from the filing of this complaint as reasonable September 14,1967 (Rollo, p. 122) the Court considered the
value of defendants' occupation of a portion of the land; case submitted for decision, in a Resolution dated September
the costs of this action; and, for such other relief and 21, 1967 (Rollo, p. 124).
remedy as may be legal, just and equitable."
WHEREFORE, judgment is hereby rendered: There is no question that the provision of law applicable in the
instant case is Art. 1088 of the New Civil Code (Art. 1067, Old
Civil Code) as the matter concerns heirs and inheritance not
(a) Sentencing the defendants to resell the property to yet distributed (Wenceslao v. Calimon, 46 Phil. 906 [1923]). Art.
the plaintiffs for P800.00 which is the total consideration of 1088 states:
the two deeds of sale Exhibits A and B;
2|Page
do so within the period of one month from the time they kind of notice, such as verbal or by registration. If the
were notified in writing of the sale by the vendor. intention of the law had been to include verbal notice or
any other means of information as sufficient to give the
effect of this notice, then there would have been no
The main issue is whether or not petitioners took all the
necessity or reasons to specify in Article 1088 of the New
necessary steps to effectuate their exercise of the right of legal
Civil Code that the said notice be made in writing for,
redemption within the period fixed by Art. 1088 of the Civil
under the old law, a verbal notice or information was
Code.
sufficient (106 Phil. 1023 [1960]).
4|Page
Regarding private respondent's right of redemption, Article
1088 of the New Civil Code explicitly states that, should any of
the heirs sell his hereditary rights to a stranger before the
partition, any or all of the co-heirs may be subrogated to the
rights of the purchaser by reimbursing him for the price of the
sale, provided they do so within the period of one month from
the time they were notified in writing by the vendor.
SO ORDERED.
SECOND DIVISION
DECISION
AZCUNA, J.:
5|Page
This is a petition for review under Rule 45 of the Rules of Court to legal redemption within a period of fifteen (15) days
seeking the reversal of the decision 1 dated March 26, 2002, from your receipt hereof.
and the resolution 2 dated December 17, 2002, of the Court of
Appeals in CA-G.R. SP No. 59869 entitled "Gloria A. Vargas,
Should you fail to convey to me your agreement within
Aurora Vargas, Ramon Vargas, Marites Vargas, Edelina Vargas
said 15-day-period, proper legal action shall be taken by
and Gemma Vargas v. Joseph Cua."
my client to redeem said shares.
I understand that a document "Extra Judicial Settlement On appeal, the Regional Trial Court (RTC), Branch 42, of Virac,
Among Heirs with Sale" was executed by some of my Catanduanes affirmed the MTC decision in a judgment dated
client's co-heirs and alleged representatives of other co- November 25, 1999. The matter was thereafter raised to the
heirs, by virtue of which document you acquired by Court of Appeals (CA).
purchase from the signatories to the said document, five
(5) shares with a total area of fifty-five square meters of
The CA reversed the ruling of both lower courts in the assailed
the above-described land.
decision dated March 26, 2002, declaring that the Extra
Judicial Settlement Among Heirs and the Extra Judicial
This is to serve you notice that my client shall exercise her Settlement Among Heirs with Sale, dated February 4, 1994 and
right of legal redemption of said five (5) shares as well as November 15, 1994, respectively, were void and without any
other shares which you may likewise have acquired by legal effect. The CA held that, pursuant to Section 1, Rule 74 of
purchase. And you are hereby given an option to agree the Rules of Court, 16 the extrajudicial settlement made by the
other co-heirs is not binding upon respondents considering the
6|Page
latter never participated in it nor did they ever signify their of execution. The requirement of publication is geared for the
consent to the same. protection of creditors and was never intended to deprive
heirs of their lawful participation in the decedent's estate. In
this connection, the records of the present case confirm that
His motion for reconsideration having been denied, petitioner
respondents never signed either of the settlement documents,
filed the present petition for review.
having discovered their existence only shortly before the filing
of the present complaint. Following Rule 74, these extrajudicial
The issues are: settlements do not bind respondents, and the partition made
without their knowledge and consent is invalid insofar as they
are concerned.
Whether heirs are deemed constructively notified and
bound, regardless of their failure to participate therein, by
an extrajudicial settlement and partition of estate when This is not to say, though, that respondents' co-heirs cannot
the extrajudicial settlement and partition has been duly validly sell their hereditary rights to third persons even before
published; and, the partition of the estate. The heirs who actually participated
in the execution of the extrajudicial settlements, which
Assuming a published extrajudicial settlement and partition included the sale to petitioner of their pro indiviso shares in the
does not bind persons who did not participate therein, subject property, are bound by the same. Nevertheless,
respondents are given the right to redeem these shares
whether the written notice required to be served by an heir
pursuant to Article 1088 of the Civil Code. The right to redeem
to his co-heirs in connection with the sale of hereditary
was never lost because respondents were never notified in
rights to a stranger before partition under Article 1088 of
writing of the actual sale by their co-heirs. Based on the
the Civil Code17 can be dispensed with when such co-heirs
have actual knowledge of the sale such that the 30-day provision, there is a need for written notice to start the period
period within which a co-heir can exercise the right to be of redemption, thus:
subrogated to the rights of a purchaser shall commence
from the date of actual knowledge of the sale. Should any of the heirs sell his hereditary rights to a stranger
before the partition, any or all of the co-heirs may be
subrogated to the rights of the purchaser by reimbursing
Petitioner argues, as follows:
him for the price of the sale, provided they do so within the
period of one month from the time they were notified in
Firstly, the acquisition by petitioner of the subject property writing of the sale by the vendor. (Emphasis supplied.)
subsequent to the extrajudicial partition was valid because the
partition was duly published. The publication of the same
constitutes due notice to respondents and signifies their It bears emphasis that the period of one month shall be
implied acquiescence thereon. Respondents are therefore reckoned from the time that a co-heir is notified in writing by
estopped from denying the validity of the partition and sale at the vendor of the actual sale. Written notice is indispensable
this late stage. Considering that the partition was valid, and mandatory,20 actual knowledge of the sale acquired in
respondents no longer have the right to redeem the property. some other manner by the redemptioner notwithstanding. It
cannot be counted from the time advance notice is given of
an impending or contemplated sale. The law gives the co-heir
Secondly, petitioner is a possessor and builder in good faith. thirty days from the time written notice of the actual sale within
which to make up his or her mind and decide to repurchase or
Thirdly, the MTC had no jurisdiction over the complaint effect the redemption.21
because its subject matter was incapable of pecuniary
estimation. The complaint should have been filed with the RTC. Though the Code does not prescribe any particular form of
written notice nor any distinctive method for written
Fourthly, there was a non-joinder of indispensable parties, the notification of redemption, the method of notification remains
co-heirs who sold their interest in the subject property not exclusive, there being no alternative provided by law. 22 This
having been impleaded by respondents. proceeds from the very purpose of Article 1088, which is to
keep strangers to the family out of a joint ownership, if, as is
often the case, the presence of outsiders be undesirable and
Fifthly, the appeal to the CA should have been dismissed as it the other heir or heirs be willing and in a position to repurchase
was not properly verified by respondents. Gloria Vargas failed the share sold.23
to indicate that she was authorized to represent the other
respondents (petitioners therein) to initiate the petition.
Moreover, the verification was inadequate because it did not It should be kept in mind that the obligation to serve written
state the basis of the alleged truth and/or correctness of the notice devolves upon the vendor co-heirs because the latter
material allegations in the petition. are in the best position to know the other co-owners who,
under the law, must be notified of the sale. 24 This will remove all
uncertainty as to the fact of the sale, its terms and its
The petition lacks merit. perfection and validity, and quiet any doubt that the
alienation is not definitive.25 As a result, the party notified need
The procedure outlined in Section 1 of Rule 74 is an ex parte not entertain doubt that the seller may still contest the
proceeding. The rule plainly states, however, that persons who alienation. 26
do not participate or had no notice of an extrajudicial
settlement will not be bound thereby.18 It contemplates a Considering, therefore, that respondents' co-heirs failed to
notice that has been sent out or issued before any deed of comply with this requirement, there is no legal impediment to
settlement and/or partition is agreed upon (i.e., a notice allowing respondents to redeem the shares sold to petitioner
calling all interested parties to participate in the said deed of given the former's obvious willingness and capacity to do so.
extrajudicial settlement and partition), and not after such an
agreement has already been executed 19 as what happened
in the instant case with the publication of the first deed of Likewise untenable is petitioner's contention that he is a builder
extrajudicial settlement among heirs. in good faith. Good faith consists in the belief of the builder
that the land the latter is building on is one's own without
knowledge of any defect or flaw in one's title. 27 Petitioner
The publication of the settlement does not constitute derived his title from the Extra Judicial Settlement Among Heirs
constructive notice to the heirs who had no knowledge or did With Sale dated November 15, 1994. He was very much aware
not take part in it because the same was notice after the fact that not all of the heirs participated therein as it was evident
7|Page
on the face of the document itself. Because the property had and facilitate the orderly administration of justice, should not
not yet been partitioned in accordance with the Rules of be interpreted with such absolute literalness as to subvert their
Court, no particular portion of the property could have been own ultimate and legitimate objective. Strict compliance with
identified as yet and delineated as the object of the sale. This the provisions regarding the certificate of non-forum shopping
is because the alienation made by respondents' co-heirs was merely underscores its mandatory nature in that the
limited to the portion which may be allotted to them in the certification cannot be altogether dispensed with or its
division upon the termination of the co-ownership. Despite this requirements completely disregarded.32 Under justifiable
glaring fact, and over the protests of respondents, petitioner circumstances, the Court has relaxed the rule requiring the
still constructed improvements on the property. For this reason, submission of such certification considering that although it is
his claim of good faith lacks credence. obligatory, it is not jurisdictional.33
As to the issue of lack of jurisdiction, petitioner is estopped from Thus, when all the petitioners share a common interest and
raising the same for the first time on appeal. Petitioner actively invoke a common cause of action or defense, the signature of
participated in the proceedings below and sought affirmative only one of them in the certification against forum shopping
ruling from the lower courts to uphold the validity of the sale to substantially complies with the rules. 34 The co-respondents of
him of a portion of the subject property embodied in the respondent Gloria Vargas in this case were her children. In
extrajudicial settlement among heirs. Having failed to order not to defeat the ends of justice, the Court deems it
seasonably raise this defense, he cannot, under the peculiar sufficient that she signed the petition on their behalf and as
circumstances of this case, be permitted to challenge the their representative.
jurisdiction of the lower court at this late stage. While it is a rule
that a jurisdictional question may be raised at any time, an
WHEREFORE, the petition is DENIED for lack of merit. Costs
exception arises where estoppel has already supervened.
against petitioner.
intertwined with the other parties that the former's legal Certification to File Action was issued by the Lupon Chairman of
Barangay San Juan, Virac, Catanduanes on November 14, 1995.
presence as a party to the proceeding is an absolute 10 Records (MTC), p.176.
necessity. Hence, an indispensable party is one whose interest 11 Id. at 34-57.
12 Records (RTC), pp. 86-87.
will be directly affected by the court's action in the litigation. In
13 Records (MTC), pp. 380-396.
the absence of such indispensable party, there cannot be a 14 CIVIL CODE, Article 1088:
resolution of the controversy before the court which is Should any of the heirs sell his hereditary rights to a stranger before the
effective, complete, or equitable. 30 partition, any or all of the co-heirs may be subrogated to the rights of
the purchaser by reimbursing him for the price of the sale, provided
they do so within the period of one month from the time they were
notified in writing of the sale by the vendor.
In relation to this, it must be kept in mind that the complaint 15 Records (MTC), pp. 391-395.
filed by respondents ultimately prayed that they be allowed to 16 RULES OF COURT, Section 1. Extra judicial settlement by agreement
redeem the shares in the property sold by their co-heirs. between heirs:
If the decedent left no will and no debts and the heirs are all of age, or
Significantly, the right of the other heirs to sell their undivided the minors are represented by their judicial or legal representatives duly
share in the property to petitioner is not in dispute. authorized for the purpose, the parties may, without securing letters of
Respondents concede that the other heirs acted within their administration, divide the estate among themselves as they see fit by
means of a public instrument filed in the office of the register of deeds,
hereditary rights in doing so to the effect that the latter and should they disagree, they may do so in an ordinary action of
completely and effectively relinquished their interests in the partition. x x x The parties to an extrajudicial settlement, whether by
property in favor of petitioner. Petitioner thus stepped into the public instrument or by stipulation in a pending action for partition, or
the sole heir who adjudicates the entire estate to himself by means of
shoes of the other heirs to become a co-owner of the property an affidavit shall file, simultaneously with and as a condition precedent
with respondents. As a result, only petitioner's presence is to the filing of the public instrument, or stipulation in the action for
absolutely required for a complete and final determination of partition, or of the affidavit in the office of the register of deeds, a bond
with the said register of deeds, in an amount equivalent to the value of
the controversy because what respondents seek is to be the personal property involved as certified to under oath by the parties
subrogated to his rights as a purchaser. concerned and conditioned upon the payment of any just claim that
may be filed under section 4 of this rule. x x x The fact of the
extrajudicial settlement or administration shall be published in a
Finally, petitioner contends that the petition filed by newspaper of general circulation in the manner provided in the next
succeeding section; but no extrajudicial settlement shall be binding
respondents with the CA should have been dismissed because upon any person who has not participated therein or had no notice
the verification and certificate of non-forum shopping thereof.
appended to it were defective, citing specifically the failure of 17 Supra note 14.
18 RULES OF COURT, Rule 74, Section 1-
respondent Gloria Vargas to: (1) indicate that she was xxx
authorized to represent her co-respondents in the petition, and The fact of the extrajudicial settlement or administration shall be
(2) state the basis of the alleged truth of the allegations. published in a newspaper of general circulation in the manner
provided in the next succeeding section; but no extrajudicial
settlement shall be binding upon any person who has not participated
therein or had no notice thereof .
The general rule is that the certificate of non-forum shopping 19 Pedrosa v. CA, G.R. No. 118680, March 5, 2001, 353 SCRA 620, 628.
must be signed by all the plaintiffs or petitioners in a case and 20 Verdad v. CA, G.R. No. 109972, April 29, 1996, 256 SCRA 593.
the signature of only one of them is insufficient. 31 Nevertheless, 21 Tolentino, Arturo M., "Commentaries and Jurisprudence on the Civil
Code," Vol. III, pp. 606-607 (2001).
the rules on forum shopping, which were designed to promote 22 Garcia v. Calaliman, G.R. No. 26855, April 17, 1989, 172 SCRA 201.
8|Page
23 Hermoso v. CA, G.R. No. 108580, December 29, 1998, 300 SCRA 516,
quoting De Jesus v. Manglapus, 41 Phil. 188 (1948).
24 De Ape v. CA, G.R. No. 133638, April 15, 2005, 456 SCRA 193.
25 Verdad v. CA, supra note 20, quoting Cabrera v. Villanueva, G.R. No.
L-75069, April 15, 1988, 160 SCRA 672.
26 De Ape v. CA, supra note 24.
27 Ongsitco v. CA, G.R. No. 121527, March 29, 1996, 255 SCRA 703,
quoting Pleasantville Development Corporation v. CA, G.R. No. 79688,
February 1, 1996, 253 SCRA 10, and Floreza v. Evangelista, G.R. No. L-
25462, February 21, 1980, 96 SCRA 130.
28 David v. Cordova, G.R. No. 152992. July 28, 2005, 464 SCRA 384.
29 RULES OF COURT, Rule 3, Section 7-
Parties in interest without whom no final determination can be had of
an action shall be joined either as plaintiffs or defendants.
30 PNB v. Milita, G.R. Nos. 164801 and 165165, August 18, 2005, 467 SCRA
377.
31 Gonzales v. Balikatan Kilusang Bayan sa Pananalapi, Inc., G.R. No.
150859, March 28, 2005, 454 SCRA 111; Andres v. Cuevas, G.R. No.
150869, June 9, 2005, 460 SCRA 38.
32 San Miguel v. Aballa, G.R. No. 149011, June 28, 2005, 461 SCRA 392.
33 Olarte v. Office of the President, G.R. No. 165821, June 21, 2005, 460
SCRA 561.
34 HLC Construction and Development Corporation v. Emily Homes
Subdivision Homeowners Association, G.R. No. 139360, September 23,
2003, 411 SCRA 504.
9|Page
FIRST DIVISION Whenever a piece of rural land not exceeding one
hectare is alienated, the law grants to the adjoining owners a
[G.R. No. 150060. August 19, 2003] right of redemption except when the grantee or buyer does
not own any other rural land.1 In order that the right may arise,
PRIMARY STRUCTURES CORP. represented herein by its President
the land sought to be redeemed and the adjacent property
ENGR. WILLIAM C. LIU, petitioner, vs. SPS. ANTHONY S. belonging to the person exercising the right of redemption
VALENCIA and SUSAN T. VALENCIA, respondents. must both be rural lands. If one or both are urban lands, the
right cannot be invoked.2
DECISION
The trial court found the lots involved to be rural lands.
VITUG, J.: Unlike the case of Fabia vs. Intermediate Appellate Court3
(which ruled, on the issue of whether a piece of land was rural
or not, that the use of the property for agricultural purpose
On appeal is the decision of the Court of Appeals in CA- would be essential in order that the land might be
G.R. CV No. 59960, promulgated on 13 February 2001, which characterized as rural land for purposes of legal redemption),
has affirmed in toto the decision of the Regional Trial Court of respondents in the instant case, however, did not dispute
Cebu City dismissing the complaint of petitioners for legal before the Court of Appeals the holding of the trial court that
redemption over certain rural lots sold to respondents. the lots in question are rural lands. In failing to assail this factual
finding on appeal, respondents would be hardput to now
Petitioner is a private corporation based in Cebu City
belatedly question such finding and to ask the Court to still
and the registered owner of Lot 4523 situated in Liloan, Cebu,
entertain that issue.
with an area of 22,214 square meters. Adjacent to the lot of
petitioner are parcels of land, identified to be Lot 4527, Lot Article 1621 of the Civil Code expresses that the right of
4528, and Lot 4529 with a total combined area of 3,751 square redemption it grants to an adjoining owner of the property
meters. The three lots, aforenumbered, have been sold by conveyed may be defeated if it can be shown that the buyer
Hermogenes Mendoza to respondent spouses sometime in or grantee does not own any other rural land. The appellate
December 1994. Petitioner learned of the sale of the lots only court, sustaining the trial court, has said that there has been no
in January, 1996, when Hermogenes Mendoza sold to evidence proffered to show that respondents are not
petitioner Lot No. 4820, a parcel also adjacent to Lot 4523 themselves owners of rural lands for the exclusionary clause of
belonging to the latter. Forthwith, it sent a letter to the law to apply.
respondents, on 30 January 1996, signifying its intention to
redeem the three lots. On 30 May 1996, petitioner sent another With respect to the second issue, Article 1623 of the Civil
letter to respondents tendering payment of the price paid to Code provides that the right of legal pre-emption or
Mendoza by respondents for the lots. Respondents, in redemption shall not be exercised except within thirty days
response, informed petitioner that they had no intention of from notice in writing by the prospective vendor, or by the
selling the parcels. Thereupon, invoking the provisions of vendor, as the case may be. In stressing the mandatory
Articles 1621 and 1623, petitioner filed an action against character of the requirement, the law states that the deed of
respondents to compel the latter to allow the legal sale shall not be recorded in the Registry of Property unless the
redemption. Petitioner claimed that neither Mendoza, the same is accompanied by an affidavit of the vendor that he
previous owner, nor respondents gave formal or even just a has given notice thereof to all possible redemptioners.
verbal notice of the sale of the lots as so required by Article
1623 of the Civil Code. The Court of Appeals has equated the statement in the
deed of sale to the effect that the vendors have complied
After trial, the Regional Trial Court of Cebu dismissed with the provisions of Article 1623 of the Civil Code, as being
petitioners complaint and respondents' counterclaim; both the written affirmation under oath, as well as the evidence,
parties appealed the decision of the trial court to the Court of that the required written notice to petitioner under Article 1623
Appeals. The appellate court affirmed the assailed decision. has been met. Respondents, like the appellate court, overlook
the fact that petitioner is not a party to the deed of sale
Basically, the issues posed for resolution by the Court in between respondents and Mendoza and has had no hand in
the instant petition focus on the application of Article 1621 the preparation and execution of the deed of sale. It could
and Article 1623 of the Civil Code, which read: not thus be considered a binding equivalent of the obligatory
written notice prescribed by the Code.
ART. 1621. The owners of adjoining lands
shall also have the right of redemption when a piece of In Verdad vs. Court of Appeals4 this court ruled:
rural land, the area of which does not exceed one
hectare, is alienated unless the grantee does not own We hold that the right of redemption was
any rural land. timely exercised by private respondents.
Concededly, no written notice of the sale was
This right is not applicable to adjacent lands given by the Burdeos heirs (vendors) to the co-
which are separated by brooks, drains, ravines, roads owners required under Article 1623 of the Civil
and other apparent servitudes for the benefit of other Code -
estates.
xxx
If two or more adjoining owners desire to exercise
the right of redemption at the same time, the owner of Hence, the thirty-day period of redemption had
the adjoining land of smaller area shall be preferred; yet to commence when private respondent
and should both lands have the same area, the one Rosales sought to exercise the right of redemption
who first requested the redemption. on 31 March 1987, a day after she discovered the
sale from the Office of the City Treasurer of Butuan
ART. 1623. The right of legal pre-emption City, or when the case was initiated, on 16 October
or redemption shall not be exercised except within 1987, before the trial court.
thirty days from the notice in writing by the prospective
vendor, or by the vendor, as the case may be. The
deed of sale shall not be recorded in the Registry of
Property, unless accompanied by an affidavit of the 1 Article 1621, Civil Code of the Philippines.
vendor that he has given written notice thereof to all 2 Halili vs. Court of Appeals, 287 SCRA 465 citing Cortes vs. Flores, 47 Phil. 992.
possible redemptioners.
3 133 SCRA 364.
The right of redemption of co-owners excludes
256 SCRA 593.
that of adjoining owners. 4
10 | P a g e
The written notice of sale is mandatory. This
Court has long established the rule that
notwithstanding actual knowledge of a co-owner,
the latter is still entitled to a written notice from the
selling co-owner in order to remove all uncertainties
about the sale, its terms and conditions, as well as
its efficacy and status.
SO ORDERED.
5 At pp. 598-599.
11 | P a g e
SECOND DIVISION the joint agreement signed by her and her brother Edmund
was not approved by the probate court, it was null and void;
[G.R. No. 149926. February 23, 2005] hence, she was not liable to the petitioner under the joint
agreement.
UNION BANK OF THE PHILIPPINES, petitioner, vs. EDMUND
SANTIBAEZ and FLORENCE SANTIBAEZ ARIOLA, On January 29, 1990, the case was unloaded and re-
respondents. raffled to the RTC of Makati City, Branch 63. [14] Consequently,
trial on the merits ensued and a decision was subsequently
DECISION rendered by the court dismissing the complaint for lack of
merit. The decretal portion of the RTC decision reads:
CALLEJO, SR., J.:
WHEREFORE, judgment is hereby rendered
DISMISSING the complaint for lack of merit. [15]
Before us is a petition for review on certiorari under Rule
45 of the Revised Rules of Court which seeks the reversal of the The trial court found that the claim of the petitioner
Decision[1] of the Court of Appeals dated May 30, 2001 in CA- should have been filed with the probate court before which
G.R. CV No. 48831 affirming the dismissal[2] of the petitioners the testate estate of the late Efraim Santibaez was pending, as
complaint in Civil Case No. 18909 by the Regional Trial Court the sum of money being claimed was an obligation incurred
(RTC) of Makati City, Branch 63. by the said decedent. The trial court also found that the Joint
Agreement apparently executed by his heirs, Edmund and
The antecedent facts are as follows: Florence, on July 22, 1981, was, in effect, a partition of the
estate of the decedent. However, the said agreement was
On May 31, 1980, the First Countryside Credit Corporation void, considering that it had not been approved by the
(FCCC) and Efraim M. Santibaez entered into a loan probate court, and that there can be no valid partition until
agreement[3] in the amount of P128,000.00. The amount was after the will has been probated. The trial court further
intended for the payment of the purchase price of one (1) unit declared that petitioner failed to prove that it was the now
Ford 6600 Agricultural All-Purpose Diesel Tractor. In view defunct Union Savings and Mortgage Bank to which the FCCC
thereof, Efraim and his son, Edmund, executed a promissory had assigned its assets and liabilities. The court also agreed to
note in favor of the FCCC, the principal sum payable in five the contention of respondent Florence S. Ariola that the list of
equal annual amortizations of P43,745.96 due on May 31, 1981 assets and liabilities of the FCCC assigned to Union Savings
and every May 31st thereafter up to May 31, 1985. and Mortgage Bank did not clearly refer to the decedents
account. Ruling that the joint agreement executed by the
On December 13, 1980, the FCCC and Efraim entered
heirs was null and void, the trial court held that the petitioners
into another loan agreement,[4] this time in the amount of
cause of action against respondent Florence S. Ariola must
P123,156.00. It was intended to pay the balance of the
necessarily fail.
purchase price of another unit of Ford 6600 Agricultural All-
Purpose Diesel Tractor, with accessories, and one (1) unit The petitioner appealed from the RTC decision and
Howard Rotamotor Model AR 60K. Again, Efraim and his son, elevated its case to the Court of Appeals (CA), assigning the
Edmund, executed a promissory note for the said amount in following as errors of the trial court:
favor of the FCCC. Aside from such promissory note, they also
signed a Continuing Guaranty Agreement [5] for the loan dated 1. THE COURT A QUO ERRED IN FINDING THAT THE
December 13, 1980. JOINT AGREEMENT (EXHIBIT A) SHOULD BE
APPROVED BY THE PROBATE COURT.
Sometime in February 1981, Efraim died, leaving a
holographic will.[6] Subsequently in March 1981, testate 2. THE COURT A QUO ERRED IN FINDING THAT THERE
proceedings commenced before the RTC of Iloilo City, Branch CAN BE NO VALID PARTITION AMONG THE HEIRS
7, docketed as Special Proceedings No. 2706. On April 9, 1981, UNTIL AFTER THE WILL HAS BEEN PROBATED.
Edmund, as one of the heirs, was appointed as the special
administrator of the estate of the decedent. [7] During the 3. THE COURT A QUO ERRED IN NOT FINDING THAT
pendency of the testate proceedings, the surviving heirs, THE DEFENDANT HAD WAIVED HER RIGHT TO
Edmund and his sister Florence Santibaez Ariola, executed a HAVE THE CLAIM RE-LITIGATED IN THE ESTATE
Joint Agreement[8] dated July 22, 1981, wherein they agreed PROCEEDING.[16]
to divide between themselves and take possession of the
The petitioner asserted before the CA that the obligation
three (3) tractors; that is, two (2) tractors for Edmund and one
of the deceased had passed to his legitimate children and
(1) tractor for Florence. Each of them was to assume the
heirs, in this case, Edmund and Florence; the unconditional
indebtedness of their late father to FCCC, corresponding to
signing of the joint agreement marked as Exhibit A estopped
the tractor respectively taken by them.
respondent Florence S. Ariola, and that she cannot deny her
On August 20, 1981, a Deed of Assignment with liability under the said document; as the agreement had been
Assumption of Liabilities[9] was executed by and between signed by both heirs in their personal capacity, it was no
FCCC and Union Savings and Mortgage Bank, wherein the longer necessary to present the same before the probate
FCCC as the assignor, among others, assigned all its assets and court for approval; the property partitioned in the agreement
liabilities to Union Savings and Mortgage Bank. was not one of those enumerated in the holographic will
made by the deceased; and the active participation of the
Demand letters[10] for the settlement of his account were heirs, particularly respondent Florence S. Ariola, in the present
sent by petitioner Union Bank of the Philippines (UBP) to ordinary civil action was tantamount to a waiver to re-litigate
Edmund, but the latter failed to heed the same and refused to the claim in the estate proceedings.
pay. Thus, on February 5, 1988, the petitioner filed a
Complaint[11] for sum of money against the heirs of Efraim On the other hand, respondent Florence S. Ariola
Santibaez, Edmund and Florence, before the RTC of Makati maintained that the money claim of the petitioner should
City, Branch 150, docketed as Civil Case No. 18909. have been presented before the probate court. [17]
Summonses were issued against both, but the one intended
The appellate court found that the appeal was not
for Edmund was not served since he was in the United States
meritorious and held that the petitioner should have filed its
and there was no information on his address or the date of his
claim with the probate court as provided under Sections 1 and
return to the Philippines.[12] Accordingly, the complaint was
5, Rule 86 of the Rules of Court. It further held that the partition
narrowed down to respondent Florence S. Ariola.
made in the agreement was null and void, since no valid
On December 7, 1988, respondent Florence S. Ariola filed partition may be had until after the will has been probated.
her Answer[13] and alleged that the loan documents did not According to the CA, page 2, paragraph (e) of the
bind her since she was not a party thereto. Considering that holographic will covered the subject properties (tractors) in
12 | P a g e
generic terms when the deceased referred to them as all Edmund and respondent Florence, made the obligation
other properties. Moreover, the active participation of solidary as far as the said heirs are concerned. The petitioner
respondent Florence S. Ariola in the case did not amount to a also proffers that, considering the express provisions of the
waiver. Thus, the CA affirmed the RTC decision, viz.: continuing guaranty agreement and the promissory notes
executed by the named respondents, the latter must be held
WHEREFORE, premises considered, the liable jointly and severally liable thereon. Thus, there was no
appealed Decision of the Regional Trial Court of need for the petitioner to file its money claim before the
Makati City, Branch 63, is hereby AFFIRMED in toto. probate court. Finally, the petitioner stresses that both surviving
heirs are being sued in their respective personal capacities,
SO ORDERED.[18]
not as heirs of the deceased.
In the present recourse, the petitioner ascribes the
In her comment to the petition, respondent Florence S.
following errors to the CA:
Ariola maintains that the petitioner is trying to recover a sum of
I. money from the deceased Efraim Santibaez; thus the claim
should have been filed with the probate court. She points out
THE HONORABLE COURT OF APPEALS ERRED IN that at the time of the execution of the joint agreement there
FINDING THAT THE JOINT AGREEMENT SHOULD BE was already an existing probate proceedings of which the
APPROVED BY THE PROBATE COURT. petitioner knew about. However, to avoid a claim in the
probate court which might delay payment of the obligation,
II. the petitioner opted to require them to execute the said
agreement.
THE COURT OF APPEALS ERRED IN FINDING THAT
THERE CAN BE NO VALID PARTITION AMONG THE According to the respondent, the trial court and the CA
HEIRS OF THE LATE EFRAIM SANTIBAEZ UNTIL AFTER did not err in declaring that the agreement was null and void.
THE WILL HAS BEEN PROBATED. She asserts that even if the agreement was voluntarily
executed by her and her brother Edmund, it should still have
III. been subjected to the approval of the court as it may
THE COURT OF APPEALS ERRED IN NOT FINDING prejudice the estate, the heirs or third parties. Furthermore, she
THAT THE RESPONDENT HAD WAIVED HER RIGHT TO had not waived any rights, as she even stated in her answer in
HAVE THE CLAIM RE-LITIGATED IN THE ESTATE the court a quo that the claim should be filed with the probate
PROCEEDING. court. Thus, the petitioner could not invoke or claim that she is
in estoppel.
IV.
Respondent Florence S. Ariola further asserts that she had
RESPONDENTS CAN, IN FACT, BE HELD JOINTLY AND not signed any continuing guaranty agreement, nor was there
SEVERALLY LIABLE WITH THE PRINCIPAL DEBTOR THE any document presented as evidence to show that she had
LATE EFRAIM SANTIBAEZ ON THE STRENGTH OF THE caused herself to be bound by the obligation of her late
CONTINUING GUARANTY AGREEMENT EXECUTED IN father.
FAVOR OF PETITIONER-APPELLANT UNION BANK.
The petition is bereft of merit.
V.
The Court is posed to resolve the following issues: a)
THE PROMISSORY NOTES DATED MAY 31, 1980 IN THE whether or not the partition in the Agreement executed by the
SUM OF P128,000.00 AND DECEMBER 13, 1980 IN THE heirs is valid; b) whether or not the heirs assumption of the
AMOUNT OF P123,000.00 CATEGORICALLY indebtedness of the deceased is valid; and c) whether the
ESTABLISHED THE FACT THAT THE RESPONDENTS petitioner can hold the heirs liable on the obligation of the
BOUND THEMSELVES JOINTLY AND SEVERALLY LIABLE deceased.
WITH THE LATE DEBTOR EFRAIM SANTIBAEZ IN FAVOR
OF PETITIONER UNION BANK.[19] At the outset, well-settled is the rule that a probate court
has the jurisdiction to determine all the properties of the
The petitioner claims that the obligations of the deceased, to determine whether they should or should not be
deceased were transmitted to the heirs as provided in Article included in the inventory or list of properties to be
774 of the Civil Code; there was thus no need for the probate administered.[20] The said court is primarily concerned with the
court to approve the joint agreement where the heirs administration, liquidation and distribution of the estate. [21]
partitioned the tractors owned by the deceased and assumed
the obligations related thereto. Since respondent Florence S. In our jurisdiction, the rule is that there can be no valid
Ariola signed the joint agreement without any condition, she is partition among the heirs until after the will has been
now estopped from asserting any position contrary thereto. probated:
The petitioner also points out that the holographic will of the In testate succession, there can be no valid
deceased did not include nor mention any of the tractors partition among the heirs until after the will has
subject of the complaint, and, as such was beyond the ambit been probated. The law enjoins the probate of a
of the said will. The active participation and resistance of will and the public requires it, because unless a will
respondent Florence S. Ariola in the ordinary civil action is probated and notice thereof given to the whole
against the petitioners claim amounts to a waiver of the right world, the right of a person to dispose of his
to have the claim presented in the probate proceedings, and property by will may be rendered nugatory. The
to allow any one of the heirs who executed the joint authentication of a will decides no other question
agreement to escape liability to pay the value of the tractors than such as touch upon the capacity of the
under consideration would be equivalent to allowing the said testator and the compliance with those
heirs to enrich themselves to the damage and prejudice of the requirements or solemnities which the law
petitioner. prescribes for the validity of a will. [22]
The petitioner, likewise, avers that the decisions of both This, of course, presupposes that the properties to be
the trial and appellate courts failed to consider the fact that partitioned are the same properties embraced in the will. [23] In
respondent Florence S. Ariola and her brother Edmund the present case, the deceased, Efraim Santibaez, left a
executed loan documents, all establishing the vinculum juris or holographic will[24] which contained, inter alia, the provision
the legal bond between the late Efraim Santibaez and his heirs which reads as follows:
to be in the nature of a solidary obligation. Furthermore, the
Promissory Notes dated May 31, 1980 and December 13, 1980 (e) All other properties, real or personal, which
executed by the late Efraim Santibaez, together with his heirs, I own and may be discovered later after my
13 | P a g e
demise, shall be distributed in the proportion an action already commenced by the deceased
indicated in the immediately preceding paragraph in his lifetime, the debtor may set forth by answer
in favor of Edmund and Florence, my children. the claims he has against the decedent, instead of
presenting them independently to the court as
We agree with the appellate court that the above- herein provided, and mutual claims may be set off
quoted is an all-encompassing provision embracing all the against each other in such action; and if final
properties left by the decedent which might have escaped his judgment is rendered in favor of the defendant, the
mind at that time he was making his will, and other properties amount so determined shall be considered the true
he may acquire thereafter. Included therein are the three (3) balance against the estate, as though the claim
subject tractors. This being so, any partition involving the said had been presented directly before the court in
tractors among the heirs is not valid. The joint agreement [25] the administration proceedings. Claims not yet
executed by Edmund and Florence, partitioning the tractors due, or contingent, may be approved at their
among themselves, is invalid, specially so since at the time of present value.
its execution, there was already a pending proceeding for the
probate of their late fathers holographic will covering the said The filing of a money claim against the decedents estate
tractors. in the probate court is mandatory. [30] As we held in the vintage
case of Py Eng Chong v. Herrera:[31]
It must be stressed that the probate proceeding had
already acquired jurisdiction over all the properties of the This requirement is for the purpose of
deceased, including the three (3) tractors. To dispose of them protecting the estate of the deceased by informing
in any way without the probate courts approval is tantamount the executor or administrator of the claims against
to divesting it with jurisdiction which the Court cannot allow. [26] it, thus enabling him to examine each claim and to
Every act intended to put an end to indivision among co-heirs determine whether it is a proper one which should
and legatees or devisees is deemed to be a partition, be allowed. The plain and obvious design of the
although it should purport to be a sale, an exchange, a rule is the speedy settlement of the affairs of the
compromise, or any other transaction. [27] Thus, in executing deceased and the early delivery of the property to
any joint agreement which appears to be in the nature of an the distributees, legatees, or heirs. `The law strictly
extra-judicial partition, as in the case at bar, court approval is requires the prompt presentation and disposition of
imperative, and the heirs cannot just divest the court of its the claims against the decedent's estate in order to
jurisdiction over that part of the estate. Moreover, it is within settle the affairs of the estate as soon as possible,
the jurisdiction of the probate court to determine the identity pay off its debts and distribute the residue. [32]
of the heirs of the decedent.[28] In the instant case, there is no
showing that the signatories in the joint agreement were the Perusing the records of the case, nothing therein could
only heirs of the decedent. When it was executed, the hold private respondent Florence S. Ariola accountable for
probate of the will was still pending before the court and the any liability incurred by her late father. The documentary
latter had yet to determine who the heirs of the decedent evidence presented, particularly the promissory notes and the
were. Thus, for Edmund and respondent Florence S. Ariola to continuing guaranty agreement, were executed and signed
adjudicate unto themselves the three (3) tractors was a only by the late Efraim Santibaez and his son Edmund. As the
premature act, and prejudicial to the other possible heirs and petitioner failed to file its money claim with the probate court,
creditors who may have a valid claim against the estate of the at most, it may only go after Edmund as co-maker of the
deceased. decedent under the said promissory notes and continuing
guaranty, of course, subject to any defenses Edmund may
The question that now comes to fore is whether the heirs have as against the petitioner. As the court had not acquired
assumption of the indebtedness of the decedent is binding. jurisdiction over the person of Edmund, we find it unnecessary
We rule in the negative. Perusing the joint agreement, it to delve into the matter further.
provides that the heirs as parties thereto have agreed to
divide between themselves and take possession and use the We agree with the finding of the trial court that the
above-described chattel and each of them to assume the petitioner had not sufficiently shown that it is the successor-in-
indebtedness corresponding to the chattel taken as herein interest of the Union Savings and Mortgage Bank to which the
after stated which is in favor of First Countryside Credit Corp. [29] FCCC assigned its assets and liabilities. [33] The petitioner in its
The assumption of liability was conditioned upon the complaint alleged that by virtue of the Deed of Assignment
happening of an event, that is, that each heir shall take dated August 20, 1981 executed by and between First
possession and use of their respective share under the Countryside Credit Corporation and Union Bank of the
agreement. It was made dependent on the validity of the Philippines[34] However, the documentary evidence [35] clearly
partition, and that they were to assume the indebtedness reflects that the parties in the deed of assignment with
corresponding to the chattel that they were each to receive. assumption of liabilities were the FCCC, and the Union Savings
The partition being invalid as earlier discussed, the heirs in and Mortgage Bank, with the conformity of Bancom Philippine
effect did not receive any such tractor. It follows then that the Holdings, Inc. Nowhere can the petitioners participation
assumption of liability cannot be given any force and effect. therein as a party be found. Furthermore, no documentary or
testimonial evidence was presented during trial to show that
The Court notes that the loan was contracted by the Union Savings and Mortgage Bank is now, in fact, petitioner
decedent. The petitioner, purportedly a creditor of the late Union Bank of the Philippines. As the trial court declared in its
Efraim Santibaez, should have thus filed its money claim with decision:
the probate court in accordance with Section 5, Rule 86 of the
Revised Rules of Court, which provides: [T]he court also finds merit to the contention
of defendant that plaintiff failed to prove or did not
Section 5. Claims which must be filed under present evidence to prove that Union Savings and
the notice. If not filed barred; exceptions. All claims Mortgage Bank is now the Union Bank of the
for money against the decedent, arising from Philippines. Judicial notice does not apply here. The
contract, express or implied, whether the same be power to take judicial notice is to [be] exercised by
due, not due, or contingent, all claims for funeral the courts with caution; care must be taken that
expenses for the last sickness of the decedent, and the requisite notoriety exists; and every reasonable
judgment for money against the decedent, must doubt upon the subject should be promptly
be filed within the time limited in the notice; resolved in the negative. (Republic vs. Court of
otherwise they are barred forever, except that they Appeals, 107 SCRA 504).[36]
may be set forth as counterclaims in any action
that the executor or administrator may bring This being the case, the petitioners personality to file the
against the claimants. Where an executor or complaint is wanting. Consequently, it failed to establish its
administrator commences an action, or prosecutes
14 | P a g e
cause of action. Thus, the trial court did not err in dismissing the
complaint, and the CA in affirming the same.
SO ORDERED.
[6] Exhibit 7.
[8] Exhibit A.
[9] Exhibit G.
[11] Records, p. 1.
[20] See Ortega v. Court of Appeals, 153 SCRA 96 (1987); See also Morales v. CFI of
Cavite, Br. V, 146 SCRA 373 (1986).
[24] Exhibit 7.
[25] Exhibit A.
[32] Ibid.
[35] Exhibit G.
G.R. No. 72873 May 28, 1987
15 | P a g e
Luis R. Reyes for private respondent. Art. 1088. Should any of the heirs sell his hereditary rights to
a stranger before the partition, any or all of the co-heirs
may be subrogated to the rights of the purchaser by
CRUZ, J.:
reimbursing him for the price of the sale, provided they do
so within the period of one month from the time they were
The question is sometimes asked, in serious inquiry or in curious notified in writing of the sale by the vendor.
conjecture, whether we are a court of law or a court of justice.
Do we apply the law even if it is unjust or do we administer
In reversing the trial court, the respondent court ** declared
justice even against the law? Thus queried, we do not
that the notice required by the said article was written notice
equivocate. The answer is that we do neither because we are
and that actual notice would not suffice as a substitute. Citing
a court both of law and of justice. We apply the law with
the same case of De Conejero v. Court of Appeals 11 applied
justice for that is our mission and purpose in the scheme of our
by the trial court, the respondent court held that that decision,
Republic. This case is an illustration.
interpreting a like rule in Article 1623, stressed the need for
written notice although no particular form was required.
Five brothers and sisters inherited in equal pro indiviso shares a
parcel of land registered in 'the name of their deceased
Thus, according to Justice J.B.L. Reyes, who was the ponente
parents under OCT No. 10977 of the Registry of Deeds of
of the Court, furnishing the co-heirs with a copy of the deed of
Tarlac. 1
sale of the property subject to redemption would satisfy the
requirement for written notice. "So long, therefore, as the latter
On March 15, 1963, one of them, Celestino Padua, transferred (i.e., the redemptioner) is informed in writing of the sale and
his undivided share of the herein petitioners for the sum of the particulars thereof," he declared, "the thirty days for
P550.00 by way of absolute sale. 2 One year later, on April 22, redemption start running. "
1964, Eustaquia Padua, his sister, sold her own share to the
same vendees, in an instrument denominated "Con Pacto de
In the earlier decision of Butte v. UY, 12 " the Court, speaking
Retro Sale," for the sum of P 440.00. 3
through the same learned jurist, emphasized that the written
notice should be given by the vendor and not the vendees,
By virtue of such agreements, the petitioners occupied, after conformably to a similar requirement under Article 1623,
the said sales, an area corresponding to two-fifths of the said reading as follows:
lot, representing the portions sold to them. The vendees
subsequently enclosed the same with a fence. In 1975, with
Art. 1623. The right of legal pre-emption or redemption
their consent, their son Eduardo Alonzo and his wife built a
shall not be exercised except within thirty days from the
semi-concrete house on a part of the enclosed area. 4
notice in writing by the prospective vendor, or by the
vendors, as the case may be. The deed of sale shall not
On February 25, 1976, Mariano Padua, one of the five coheirs, be recorded in the Registry of Property, unless
sought to redeem the area sold to the spouses Alonzo, but his accompanied by an affidavit of the vendor that he has
complaint was dismissed when it appeared that he was an given written notice thereof to all possible redemptioners.
American citizen .5 On May 27, 1977, however, Tecla Padua,
another co-heir, filed her own complaint invoking the same
The right of redemption of co-owners excludes that of the
right of redemption claimed by her brother. 6
adjoining owners.
The trial court * also dismiss this complaint, now on the ground
As "it is thus apparent that the Philippine legislature in Article
that the right had lapsed, not having been exercised within
1623 deliberately selected a particular method of giving
thirty days from notice of the sales in 1963 and 1964. Although
notice, and that notice must be deemed exclusive," the Court
there was no written notice, it was held that actual knowledge
held that notice given by the vendees and not the vendor
of the sales by the co-heirs satisfied the requirement of the law.
would not toll the running of the 30-day period.
7
16 | P a g e
balance between the word and the will, that justice may be none of the co-heirs made a move to redeem the properties
done even as the law is obeyed. sold. By 1977, in other words, when Tecla Padua filed her
complaint, the right of redemption had already been
extinguished because the period for its exercise had already
As judges, we are not automatons. We do not and must not
expired.
unfeelingly apply the law as it is worded, yielding like robots to
the literal command without regard to its cause and
consequence. "Courts are apt to err by sticking too closely to The following doctrine is also worth noting:
the words of a law," so we are warned, by Justice Holmes
again, "where these words import a policy that goes beyond
While the general rule is, that to charge a party with
them." 13 While we admittedly may not legislate, we
laches in the assertion of an alleged right it is essential that
nevertheless have the power to interpret the law in such a way
he should have knowledge of the facts upon which he
as to reflect the will of the legislature. While we may not read
bases his claim, yet if the circumstances were such as
into the law a purpose that is not there, we nevertheless have
should have induced inquiry, and the means of
the right to read out of it the reason for its enactment. In doing
ascertaining the truth were readily available upon inquiry,
so, we defer not to "the letter that killeth" but to "the spirit that
but the party neglects to make it, he will be chargeable
vivifieth," to give effect to the law maker's will.
with laches, the same as if he had known the facts. 15
3 Id, p. 64,
5 Id. p. 21
6 Id, p. 21.
7 Id, p. 65.
8 Id, p. 5.
9 Id, p. 64.
10 Id, p. 26.
11 16 SCRA 775.
12 4 SCRA 527.
16 Institutes 1, 1, pr. as cited in Handbook for Roman Law, Miravite, Lorenzo F.,
p. 39, 1981,
FIRST DIVISION
Present:
18 | P a g e
DECISION in trust by the VENDEE and to be paid and
delivered only to them upon reaching the
PUNO, C.J.: age of 21.
The first sale with pacto de retro to Dr. Corrompido by Sec. 7. Parents as guardians. When
the brothers and co-owners Bonifacio, Albino and Alberto was the property of the child under parental
valid but only as to their pro-indiviso shares to the land. When authority is worth two thousand pesos or
Alberto died prior to repurchasing his share, his rights and less, the father or the mother, without the
obligations were transferred to and assumed by his heirs, necessity of court appointment, shall be his
namely his wife and his son, petitioner Nelson. But the records legal guardian x x x x14
show that it was Saturnina, Albertos mother, and not his heirs,
who repurchased for him. As correctly ruled by the Court of
Appeals, Saturnina was not subrogated to Albertos or his heirs 10 Id.
rights to the property when she repurchased the share.
11 Law applicable to the case. Executive Order No. 209 otherwise known
as the Family Code of the Philippines, which expressly repealed these
provisions, took effect on August 4, 1988.
12 See Badillo v. Ferrer, No. L-51369, July 29, 1987, 152 SCRA 407.
13 Id.
In Paulmitan v. Court of Appeals,8 we held that a co- 14 The New Rules on Guardianship of Minors, adapted in the May 1, 2003
owner who redeemed the property in its entirety did not make Resolution of the Court in A.M. No. 03-02-05-SC, provide, inter alia:
her the owner of all of it. The property remained in a condition
Section 1. Applicability of the Rule. This Rule
of co-ownership as the redemption did not provide for a shall apply to petitions for guardianship over the person or
mode of terminating a co-ownership.9 But the one who property, or both, of a minor.
20 | P a g e
Consequently, petitioner Nelson and his mother retained
ownership over their undivided share of subject property.17
Saturnina was clearly petitioner Ritos legal guardian
without necessity of court appointment considering that the
amount of his property or one-seventh of subject property was
P1,143.00, which is less than two thousand pesos. However, But may petitioners redeem the subject land from
Rule 96, Sec. 115 provides that: respondents-spouses? Articles 1088 and 1623 of the New Civil
Code are pertinent:
Section 1. To what guardianship
shall extend. A guardian appointed shall Art. 1088. Should any of the heirs sell his
have the care and custody of the person of hereditary rights to a stranger before the partition,
his ward, and the management of his any or all of the co-heirs may be subrogated to the
estate, or the management of the estate rights of the purchaser by reimbursing him for the
only, as the case may be. The guardian of price of the sale, provided they do so within the
the estate of a nonresident shall have the period of one month from the time they were
management of all the estate of the ward notified in writing of the sale by the vendor.
within the Philippines, and no court other
than that in which such guardian was
appointed shall have jurisdiction over the
guardianship. Art. 1623. The right of legal pre-emption or
redemption shall not be exercised except within
thirty days from the notice in writing by the
prospective vendor, or by the vendor, as the case
Indeed, the legal guardian only has the plenary may be. The deed of sale shall not be recorded in
power of administration of the minors property. It does not the Registry of Property, unless accompanied by an
include the power of alienation which needs judicial affidavit of the vendor that he has given written
authority.16 Thus, when Saturnina, as legal guardian of notice thereof to all possible redemptioners.
petitioner Rito, sold the latters pro-indiviso share in subject
land, she did not have the legal authority to do so.
21 | P a g e
x x x x While we may not read into the law a respondents-spouses Jesus and Anunciacion Feliano for the
purpose that is not there, we nevertheless have the 6/7 portion, and petitioner Nelson Cabales and his mother for
right to read out of it the reason for its enactment. In the remaining 1/7 portion, pro indiviso.
doing so, we defer not to the letter that killeth but to
the spirit that vivifieth, to give effect to the lawmakers
will.
SO ORDERED.
22 | P a g e