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Republic of the Philippines
SUPREME COURT
Manila
EN BANC
G.R. No. L-13667 April 29, 1960
PRIMITIVO ANSA, ETC., ET AL., plaintiffs-appellants,
vs.
T!E "OAR# O$ #IRECTORS O$ T!E NATIONAL #EVELOPMENT COMPAN, ET
AL., defendants-appellees.
Celso A. Fernandez for appellants.
Juan C. Jimenez, for appellees.
PARAS,C. J
.%
On July !, "#!$, appellants filed a%ainst appellees in the Cou&t of 'i&st (nstance of Manila a
co)plaint p&ayin% fo& a *+ Ch&ist)as bonus fo& the yea&s "#! and "#!!. he cou&t a quo on
appellees )otion to dis)iss, issued the follo/in% o&de&0
Conside&in% the )otion to dis)iss filed on "! Au%ust, "#!$, set fo& this )o&nin%1 conside&in%
that at the hea&in% the&eof, only &espondents appea&ed th&u counsel and the&e /as no
appea&ance fo& the plaintiffs althou%h the cou&t /aited fo& so)eti)e fo& the)1 conside&in%,
ho/eve&, that petitione&s have sub)itted an opposition /hich the cou&t /ill conside& to%ethe&
/ith the a&%u)ents p&esented by &espondents and the E2hibits )a&3ed and p&esented,
na)ely, E2hibits " to !, at the hea&in% of the )otion to dis)iss1 conside&in% that the action inb&ief is one to co)pel &espondents to decla&e a Ch&ist)as bonus fo& petitione&s /o&3e&s in
the National 4evelop)ent Co)pany1 conside&in% that the Cou&t does not see ho/ petitione&s
)ay have a cause of action to secu&e such bonus because0
5a6 A bonus is an act of libe&ality and the cou&t ta3es it that it is not /ithin its 7udicial po/e&s to
co))and &espondents to be libe&al1
5b6 Petitione&s ad)it that &espondents a&e not unde& le%al duty to %ive such bonus but that
they had only as3 that such bonus be %iven to the) because it is a )o&al obli%ation of
&espondents to %ive that but as this Cou&t unde&stands, it has no po/e& to co)pel a pa&ty to
co)ply /ith a )o&al obli%ation 5A&t. ", Ne/ Civil Code.6.
(N 8(E9 9:EREO', dis)issed. No p&onounce)ent as to costs.
A )otion fo& &econside&ation of the afo&e-;uoted o&de& /as denied. :ence this appeal.
Appellants contend that the&e e2ists a cause of action in thei& co)plaint because thei& clai) &ests on
)o&al %&ounds o& /hat in b&ief is defined by la/ as a natu&al obli%ation.
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Republic of the Philippines
SUPREME COURT
Manila
'(R
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/as filed, until said a)ount is paid1 5b6 the su) of P!D$.** e;uivalent to ten 5"*+6 of
the total clai) by /ay of atto&neys fees and incidental e2penses plus inte&est at the
le%al &ate as of
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)e&ely ba&s the &e)edy and does not discha&%e the debt, the&e is so)ethin% )o&e than a
)e&e )o&al obli%ation to suppo&t a p&o)ise, to /it a F p&e-e2istin% debt /hich is a
sufficient conside&ation fo& the ne/ the ne/ p&o)ise1 upon this sufficient conside&ation
constitutes, in fact, a ne/ cause of action. 3
... (t is this ne/ p&o)ise, eithe& )ade in e2p&ess te&)s o& deduced f&o) an
ac3no/led%e)ent as a le%al i)plication, /hich is to be &e%a&ded as &eani)atin% the old
p&o)ise, o& as i)pa&tin% vitality to the &e)edy 5/hich by lapse of ti)e had beco)e
e2tinct6 and thus enablin% the c&edito& to &ecove& upon his o&i%inal cont&act. &
:o/eve&, the cou&t a quo held that in si%nin% the p&o)isso&y note alone, &espondent Confeso&
cannot the&eby bind his /ife, &espondent Jovita 8illafue&te, citin% A&ticle "$$ of the Ne/ Civil Code
/hich p&ovides0
A&t. "$$. @nless the /ife has been decla&ed a non compos mentis o& a spend th&ift,
o& is unde& civil inte&diction o& is confined in a lep&osa&iu), the husband cannot
alienate o& encu)be& any &eal p&ope&ty of the con7u%al pa&tne&ship /ithout, the /ifes
consent. (f she ay co)pel he& to &efuses un&easonably to %ive he& consent, the cou&t) %&ant the sa)e.
9e disa%&ee. @nde& A&ticle "$! of the Civil Code, the husband is the ad)inist&ato& of the con7u%al
pa&tne&ship. As such ad)inist&ato&, all debts and obli%ations cont&acted by the husband fo& the
benefit of the con7u%al pa&tne&ship, a&e cha&%eable to the con7u%al pa&tne&ship. 8 No doubt, in this
case, &espondent Confeso& si%ned the second p&o)isso&y note fo& the benefit of the con7u%al
pa&tne&ship. :ence the con7u%al pa&tne&ship is liable fo& this obli%ation.
9:ERE'ORE, the decision sub7ect of the petition is &eve&sed and set aside and anothe& decision is
he&eby &ende&ed &einstatin% the decision of the City Cou&t of (loilo City of 4ece)be& D, "#D$,
/ithout p&onounce)ent as to costs in this instance. his decision is i))ediately e2ecuto&y and no
)otion fo& e2tension of ti)e to file )otion fo& &econside&ation shall be %&anted.
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Republic of the Philippines
SUPREME COURT
Manila
/ithin ten yea&s f&o) and afte& date of si%nin% of the co)p&o)ise a%&ee)ent>,
as conside&ation fo& his se&vices.
9ithin the Pe&iod allo/ed by the &ules, the defendants filed sepa&ate )otions to dis)iss alle%in%
th&ee (dentical %&ounds0 5"6 As &e%a&ds that i)p&ove)ents )ade by plaintiff, that the co)plaint states
no cause of action, the a%&ee)ent &e%a&din% the sa)e havin% been )ade by plaintiff /ith the
4eudo&s and not /ith the defendants, hence the theo&y of plaintiff based on A&ticle " of the Code
on un7ust en&ich)ent is untenable1 and 56 anent the alle%ed a%&ee)ent about plaintiffs se&vices as
inte&)edia&y in conside&ation of /hich, defendants p&o)ised to convey to hi) =,*** s;ua&e )ete&s
of land, that the sa)e is unenfo&ceable unde& the
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about it, and, in any event, 5=6 that the action of plaintiff to co)pel such conveyance has al&eady
p&esc&ibed.
Plaintiff opposed the )otion, insistin% that A&ticle " of the applicable to his case1 that the
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;uinones. 'u&the&)o&e in o&de& that the alle%ed i)p&ove)ent )ay be conside&ed a
lien o& cha&%e on the p&ope&ty, the sa)e should have been )ade in %ood faith and
unde& the )ista3e as to the title. he Cou&t can ta3e 7udicial notice of the fact that the
t&act of land supposedly i)p&oved by the plaintiff had been &e%iste&ed /ay bac3 in
"#" in the na)e of the p&edecesso&s-in-inte&est of defendant J. M. uason H Co.,
(nc. his fact is confi&)ed in the decision &ende&ed by the
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((. :A REAR4(N PA(N(''< CA(M O8ER :E =,***
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that defendants a&e nonetheless liable since they a&e utili?in% and en7oyin% the
benefits of said i)p&ove)ents. hus unde& pa&a%&aph "$ of >he co)plaint, it is
alle%ed0
5"$6 hat the se&vices and pe&sonal e2penses of plaintiff )entioned in
pa&a%&aph D he&eof /e&e &ende&ed and in fact paid by hi) to i)p&ove,as they in fact &esulted in conside&able i)p&ove)ent of the !*
;uinones, and defendants bein% no' in possession of and utilizin%
said improvements should &ei)bu&se and pay plaintiff fo& such
se&vices and e2penses.
Plaintiffs cause of action is p&e)ised inter alia, on the theo&y of un7ust en&ich)ent
unde& A&ticle " of the civil Code0
AR. ". Ce&tain la/ful volunta&y and unilate&al acts %ive &ise to the
7u&idical &elation of ;uasi-cont&act to the end that no one shill be
un7ustly en&iched o& benefited at the e2pense of anothe&.
(n li3e vein, A&ticle "# of the sa)e Code en7oins that0
AR. "#. Eve&y pe&son )ust, in the e2e&cise of his &i%hts and in the pe&fo&)ance of
his duties, act /ith 7ustice, %ive eve&y-one his due and obse&ve honesty and %ood
faith.
9e &espectfully d&a/ the attention of this :ono&able Cou&t to the fact that AR(CE
" 5
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222 222 222
On the issue of statute of f&aud, the Cou&t believes that sa)e is
applicable to the instant Case, he alle%ation in pa&. " of the
co)plaint states that the defendants p&o)ised and a%&ee to cede,
t&ansfe& and convey unto the plaintiff, =,*** s;ua&e )ete&s of land inconside&ation of ce&tain se&vices to be &ende&ed then. (t is clea& that
the alle%ed a%&ee)ent involves an inte&est in &eal p&ope&ty. @nde& the
p&ovisions of
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"6. !(at in order to compl 'it( (is ot(er obli%ations under (is a%reement 'it(
defendant companies, plaintiff had to confe& /ith the occupants of the p&ope&ty,
e2posin% hi)self to physical ha&), convincin% said occupants to leave the p&e)ises
and to &ef&ain f&o) &eso&tin% to physical violence in &esistin% defendants de)ands to
vacate1
hat plaintiff fu&the& assisted defendants& emploees in t(e actual
demolition and transfer of all the houses /ithin the pe&i)ete& of the *
;uinones until the end of "#!!, /hen said a&ea /as totally clea&ed
and the houses t&ansfe&&ed to anothe& a&ea desi%nated by the
defendants as Capt. C&u? Bloc3 in Masa)bon%, Gue?on City. 5Pa&s.
", "= and ", Co)plaint1 E)phasis supplied6
'&o) the fo&e%oin%, it is clea& then the a%&ee)ent bet/een the pa&ties )entioned in
pa&a%&aph " 5supra6 of the co)plaint has al&eady been fully EEC@E4 ON ONE
PAR, na)ely by the plaintiff. Re%a&din% the applicability of the statute of f&auds 5A&t.
"*=, Civil Code6, it has been unifo&)ly held that the statute of f&auds (
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/&itin% the&e is no palpable evidence of the intention of the
cont&actin% pa&ties. he statute has been enacted to p&event f&aud.
On the othe& hand the co))ission of f&aud in e2ecuted cont&acts is
&educed to )ini)u) in e2ecuted cont&acts because 5"6 the intention
of the pa&ties is )ade appa&ent by the e2ecution and 56 e2ecution
concludes, in )ost cases, the &i%hts of the pa&ties. 5E)phasissupplied6
@nde& pa&a%&aphs "= and " of the co)plaint 5supra6 one can &eadily see that the
plaintiff has fulfilled A his obli%ation unde& the a%&ee)ent bet/een hi) defendants
conce&nin% the =,*** s;. )s. ove& /hich the latte& had a%&eed to e2ecute the p&ope&
docu)ents of t&ansfe&. his fact is fu&the& p&o7ected in pa&a%&aph "! of the co)plaint
/he&e plaintiff states1
"!6. hat in o& about the )iddle of "#$=, after all t(e conditions
stated in para%rap( 01 (ereof (ad been fulfilled and full complied
'it(, plaintiff de)anded of said defendants that they e2ecute the4eed of Conveyance in his favo& and delive& the title ce&tificate in his
na)e, ove& the =,*** s;. )s. but defendants failed and &efused and
continue to fail and &efuse to heed his de)ands. 5pa&. "!, co)plaint1
E)phasis supplied6.
(n vie/ of the fo&e%oin%, /e &espectfully sub)it that this :ono&able cou&t e&&ed in
holdin% that the statute of f&auds is applicable to plaintiffs clai) ove& the =,*** s;.
)s. he&e havin% been full pe&fo&)ance of the cont&act on plaintiffs pa&t, the sa)e
ta3es this case out of the conte2t of said statute.
2laintiff&s Cause of Action (ad N! 2rescribed3
9ith all due &espect to this :ono&able cou&t, /e also sub)it that the Cou&t co))itted
e&&o& in holdin% that this action has p&esc&ibed0
O R 4 E R
222 222 222
On the issue of the statute of li)itations, the Cou&t holds that the
plaintiffs action has p&esc&ibed. (t is alle%ed in pa&. ((( of the co)plaint
that, so)eti)e in "#!, the defendants app&oached the plaintiff top&evail upon the 4eudo&s to ente& into a co)p&o)ise a%&ee)ent in
Civil Case No. G-"=! and allied cases. 'u&the&)o&e, pa&s. "= and "
of the co)plaint alle%ed that plaintiff acted as e)issa&y of both
pa&ties in conveyin% thei& &espective p&oposals and counte&-p&oposals
until the final settle)ent /as affected on Ma&ch "$, "#!= and
app&oved by the Cou&t on Ap&il "", "#!=. (n the p&esent actin, /hich
/as instituted on Janua&y , "#$, the plaintiff is see3in% to enfo&ce
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the supposed a%&ee)ent ente&ed into bet/een hi) and the
defendants in "#!, /hich has al&eady p&osc&ibed. 5at p. =, O&de&6.
he p&esent action has not p&esc&ibed, especially /hen /e conside& ca&efully the
te&)s of the a%&ee)ent bet/een plaintiff and the defendants. 'i&st, /e )ust d&a/ the
attention of this :ono&able Cou&t to the fact that this is an action to co)peldefendants to e2ecute a 4eed of Conveyance ove& the =,*** s;. )s. sub7ect of thei&
a%&ee)ent. (n pa&a%&aph " of the co)plaint, the te&)s and conditions of the
cont&act bet/een the pa&ties a&e spelled out. Pa&a%&aph " 5b6 of the co)plaint
states0
5b6 hat as of date of si%nin% t(e compromise a%reement , plaintiff
shall be the o/ne& of the =,*** s;. )s. but the docu)ents evidencin%
his title ove& this p&ope&ty shall be e2ecuted and delive&ed by
defendants to plaintiff 'it(in ten 4056 ears from and after date of
si%nin% of t(e compromise a%reement . 5E)phasis supplied6.
he co)p&o)ise a%&ee)ent bet/een defendants and the 4eudo&s /hich /as
conclude th&ou%h the effo&ts of plaintiff, /as si%ned on "$ Ma&ch "#!=. he&efo&e, the
defendants had ten 5"*6 yea&s si%ned on "$ Ma&ch "#!=. he&efo&e, the defendants
had ten 5"*6 yea&s f&o) said date /ithin /hich to e2ecute the deed of conveyance in
favo& of plaintiff ove& the =,*** s;. )s. As lon% as t(e 05 ears period (as not
e/pired, plaintiff (ad no ri%(t to compel defendants to e/ecute t(e document and t(e
latter 'ere under no obli%ation to do so. No/, this "*-yea& pe&iod elapsed on Ma&ch
"$, "#$=. :EN and ONI :EN does plaintiffs cause of action plaintiff on Ma&ch
"D, "#$=. hus, unde& pa&a%&aph "!, of the co)plaint 5supra6 plaintiff )ade de)ands
upon defendants fo& the e2ecution of the deed in o& about the )iddle of "#$=.
:ono&able Cou&t &econside& its O&de&
dated Au%ust "=, "#$1 and issue anothe& o&de& denyin% the )otions to dis)iss ofdefendants . A&aneta, (nc. and J. M. uason Co. (nc. fo& lac3 of )e&it. 5Pp. D*-!,
Reco&d on Appeal.6
4efendants filed an opposition on the )ain %&ound that >the a&%u)ents adduced by the plaintiff a&e
)e&ely &eite&ations of his a&%u)ents contained in his Re7oinde& to Reply and Opposition, /hich have
not only been &efuted in he&ein defendants Motion to 4is)iss and Reply but al&eady passed upon by
this :ono&able Cou&t.>
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On
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5c6 An a%&ee)ent )ade in conside&ation of )a&&ia%e, othe& than a
)utual p&o)ise to )a&&y1
5d6 An a%&ee)ent fo& the sale of %oods, chattels o& thin%s in action, at
a p&ice not less than five hund&ed pesos, unless the buye& accept and
&eceive pa&t of such %oods and chattels, o& the evidences, o& so)e of the) of such thin%s in action, o& pay at the ti)e so)e pa&t of the
pu&chase )oney1 but /hen a sale is )ade by auction and ent&y is
)ade by the auctionee& in his sales boo3, at the ti)e of the sale, of
the a)ount and 3ind of p&ope&ty sold, te&)s of sale, p&ice, na)es of
the pu&chase&s and pe&son on /hose account the sale is )ade, it is a
sufficient )e)o&andu)0
5e6 An a%&ee)ent fo& the leasin% fo& a lon%e& pe&iod than one yea&, o&
fo& the sale of &eal p&ope&ty o& of an inte&est the&ein0
5f6 a &ep&esentation as to the c&edit of a thi&d pe&son.
5=6 hose /he&e both pa&ties a&e incapable of %ivin% consent to a cont&act. 5A&t.
"*=, civil Code.6
(n the instant case, /hat appellant is t&yin% to enfo&ce is the delive&y to hi) of =,*** s;ua&e )ete&s
of land /hich he clai)s defendants p&o)ised to do in conside&ation of his se&vices as )ediato& o&
inte&)edia&y in effectin% a co)p&o)ise of the civil action, Civil Case No. "=!, bet/een the
defendants and the 4eudo&s. (n no sense )ay such alle%ed cont&act be conside&ed as bein% a >sale
of &eal p&ope&ty o& of any inte&est the&ein.> (ndeed, not all dealin%s involvin% inte&est in &eal p&ope&ty
co)e unde& the
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9e &epeated this obse&vation in J.. !uason " Co., #nc. vs. !eodosio acalindon%, $ he act is volunta&y. because the acto& in ;uasi-cont&acts is not bound by any p&e-
e2istin% obli%ation to act. (t is unilate&al, because it a&ises f&o) the sole /ill of the acto& /ho is not
p&eviously bound by any &ecip&ocal o& bilate&al a%&ee)ent. he &eason /hy the la/ c&eates a 7u&idical &elations and i)poses ce&tain obli%ation is to p&event a situation /he&e a pe&son is able to
benefit o& ta3e advanta%e of such la/ful, volunta&y and unilate&al acts at the e2pense of said acto&.>
5A)b&osio Padilla, Civil a/, 8ol. 8(, p. D, "#$# ed.6 (n the case at ba&, since appellant has a
clea&e& and )o&e di&ect &ecou&se a%ainst the 4eudo&s /ith /ho) he had ente&ed into an a%&ee)ent
&e%a&din% the i)p&ove)ents and e2penditu&es )ade by hi) on the land of appellees. it Cannot be
said, in the sense conte)plated in A&ticle ", that appellees have been en&iched at the e2pense of
appellant.
(n the ulti)ate. the&efo&e, Ou& holdin% above that appellants fi&st t/o assi%n)ents of e&&o& a&e /ell
ta3en cannot save the day fo& hi). Aside f&o) his havin% no cause of action a%ainst appellees, the&e
is one plain e&&o& of o)ission. 9e have found in the o&de& of the t&ial cou&t /hich is as %ood a %&oundas any othe& fo& @s to te&)inate this case favo&ably to appellees. (n said o&de& 9hich 9e have
;uoted in full ea&lie& in this opinion, the t&ial cou&t &uled that >the %&ounds &elied upon in said )otion
a&e )e&e &epetitions of those al&eady &esolved and discussed by this Cou&t in the o&de& of Au%ust "=,
"#$>, an obse&vation /hich 9e fully sha&e. 8i&tually, the&efo&e. appellants )otion fo&
&econside&ation /as &uled to be p&o-fo&)a. (ndeed, a cu&so&y &eadin% of the &eco&d on appeal &eveals
that appellants )otion fo& &econside&ation above-;uoted contained e2actly the sa)e a&%u)ents and
)anne& of discussion as his 'eb&ua&y $, "#$ >Opposition to Motion to 4is)iss> of defendant
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&e%o&io A&aneta, (nc. 55pp. "D-!, Rec. on Appeal6 as /ell as his 'eb&ua&y "D, "#$ >Opposition to
Motion to 4is)iss of 4efendant J. M. uason H Co.> 5pp. ==-!, Rec. on Appeal and his 'eb&ua&y
#, "#$ >Re7oinde& to Reply Oil 4efendant J. M. uason H Co.> 5pp. !-$, Rec. on Appeal6 9e
cannot see anythin% in said )otion fo& &econside&ation that is substantially diffe&ent f&o) the above
oppositions and &e7oinde& he had p&eviously sub)itted and /hich the t&ial cou&t had al&eady
conside&ed /hen it &ende&ed its )ain o&de& of dis)issal. Conse;uently, appellants )otion fo&&econside&ation did not suspend his pe&iod fo& appeal. 5Est&ada vs. 5pp.
$#6, hence, /ithin the f&a)e of the issues belo/, it is /ithin the a)bit of Ou& autho&ity as the
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Republic of the Philippines
SUPREME COURT
Manila
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the conse;uence that he /as able to secu&e title in his na)e alone also, so that
OC. No. ""=D in the na)e of his )othe& /as t&ansfe&&ed to his na)e, that /as in
"#!!1 that /as /hy afte& so)e effo&ts of co)p&o)ise had failed, his half-b&othe&s
and siste&s, he&ein plaintiffs, filed p&esent case fo& pa&tition /ith accountin% on the
position that he /as only a t&ustee on an i)plied t&ust /hen he &edee)ed,-and this is
the evidence, but as it also tu&ned out that one of plaintiffs, E)ete&ia Ase7o /asoccupyin% a po&tion, defendant counte&clai)ed fo& he& to vacate that,
9ell then, afte& hea&in% the evidence, t&ial Jud%e sustained defendant in his position
that he /as and beca)e absolute o/ne&, he /as not a t&ustee, and the&efo&e,
dis)issed case and also conde)ned plaintiff occupant, E)ete&ia to vacate1 it is
because of this that plaintiffs have co)e he&e and contend that t&ial cou&t e&&ed in0
(. ... decla&in% the defendant absolute o/ne& of the p&ope&ty1
((. ... not o&de&in% the pa&tition of the p&ope&ty1 and
(((. ... o&de&in% one of the plaintiffs /ho is in possession of the po&tion of the p&ope&ty
to vacate the land, p. " Appellants b&ief.
/hich can be &educed to si)ple ;uestion of /hethe& o& not on the basis of evidence and la/,
7ud%)ent appealed f&o) should be )aintained. 3
222 222 222
he &espondent Cou&t of appeals &eve&sed the t&ial Cou&t, & and &uled fo& the plaintiffs-appellants, the
p&ivate &espondents he&ein. he petitione& no/ appeals, by /ay of ce&tio&a&i, f&o) the Cou&ts
decision.
9e &e;ui&ed the p&ivate &espondents to file a co))ent and the&eafte&, havin% %iven due cou&se to
the petition, di&ected the pa&ties to file thei& b&iefs. Only the petitione&, ho/eve&, filed a b&ief, and the
p&ivate &espondents havin% failed to file one, /e decla&ed the case sub)itted fo& decision.
he petition &aises a pu&ely le%al issue0 May a co-o/ne& ac;ui&e e2clusive o/ne&ship ove& the
p&ope&ty held in co))on
Essentially, it is the petitione&s contention that the p&ope&ty sub7ect of dispute devolved upon hi)
upon the failu&e of his co-hei&s to 7oin hi) in its &ede)ption /ithin the pe&iod &e;ui&ed by la/. :e
&elies on the p&ovisions of A&ticle "!"! of the old Civil A&ticle "$"= of the p&esent Code, %ivin% thevendee a retro the &i%ht to de)and &ede)ption of the enti&e p&ope&ty.
he&e is no )e&it in this petition.
he &i%ht of &epu&chase )ay be e2e&cised by a co-o/ne& /ith aspect to his sha&e alone. 8 9hile the
&eco&ds sho/ that the petitione& &edee)ed the p&ope&ty in its enti&ety, shoulde&in% the e2penses
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ove& the p&ope&ty and havin% acted in f&aud of his co-hei&s. :e cannot the&efo&e be said to have
assu)e the )e&e )ana%e)ent of the p&ope&ty abandoned by his co-hei&s, the situation A&ticle "
of the Code conte)plates. (n any case, as the &espondent Cou&t itself affi&)s, the &esult /ould be
the sa)e /hethe& it is one o& the othe&. he petitione& /ould &e)ain liable to the P&ivate
&espondents, his co-hei&s.
his Cou&t is not una/a&e of the /ell-established p&inciple that p&esc&iption ba&s any de)and on
p&ope&ty 5o/ned in co))on6 held by anothe& 5co-o/ne&6 follo/in% the &e;ui&ed nu)be& of yea&s. (n
that event, the pa&ty in possession ac;ui&es title to the p&ope&ty and the state of co-o/ne&ship is
ended . ' (n the case at ba&, the p&ope&ty /as &e%iste&ed in "#!! by the petitione&, solely in his na)e,
/hile the clai) of the p&ivate &espondents /as p&esented in "#D. :as p&esc&iption then, set in
9e hold in the ne%ative. P&esc&iption, as a )ode of te&)inatin% a &elation of co-o/ne&ship, )ust
have been p&eceded by &epudiation 5of the co-o/ne&ship6. he act of &epudiation, in tu&n is sub7ect to
ce&tain conditions0 5"6 a co-o/ne& &epudiates the co-o/ne&ship1 56 such an act of &epudiation is
clea&ly )ade 3no/n to the othe& co-o/ne&s1 5=6 the evidence the&eon is clea& and conclusive, and 56
he has been in possession th&ou%h open, continuous, e2clusive, and noto&ious possession of thep&ope&ty fo& the pe&iod &e;ui&ed by la/. 9
he instant case sho/s that the petitione& had not co)plied /ith these &e;uisites. 9e a&e not
convinced that he had &epudiated the co-o/ne&ship1 on the cont&a&y, he had delibe&ately 3ept the
p&ivate &espondents in the da&3 by fei%nin% sole hei&ship ove& the estate unde& dispute. :e cannot
the&efo&e be said to have >)ade 3no/n> his effo&ts to deny the co-o/ne&ship. Mo&eove&, one of the
p&ivate &espondents, E)ete&ia Ase7o, is occupyin% a po&tion of the land up to the p&esent, yet, the
petitione& has not ta3en pains to e7ect he& the&ef&o). As a )atte& of fact, he sou%ht to &ecove&
possession of that po&tion E)ete&ia is occupyin% only as a counte&clai), and only afte& the p&ivate
&espondents had fi&st sou%ht 7udicial &elief.
(t is t&ue that &e%ist&ation unde& the o&&ens syste) is const&uctive notice of title, 10 but it has li3e/ise
been ou& holdin% that the o&&ens title does not fu&nish a shield fo& f&aud. 11 (t is the&efo&e no
a&%u)ent to say that the act of &e%ist&ation is e;uivalent to notice of &epudiation, assu)in% the&e /as
one, not/ithstandin% the lon%-standin% &ule that &e%ist&ation ope&ates as a unive&sal notice of title.
'o& the sa)e &eason, /e cannot dis)iss the p&ivate &espondents clai)s co))enced in "#D ove&
the estate &e%iste&ed in "#!!. 9hile actions to enfo&ce a const&uctive t&ust p&esc&ibes in ten
yea&s, 12 &ec3oned f&o) the date of the &e%ist&ation of the p&ope&ty, 13 /e, as /e said, a&e not
p&epa&ed to count the pe&iod f&o) such a date in this case. 9e note the petitione&s sub rosa effo&ts
to %et hold of the p&ope&ty e2clusively fo& hi)self be%innin% /ith his f&audulent )is&ep&esentation in
his unilate&al affidavit of e2t&a7udicial settle)ent that he is >the only hei& and child of his )othe&'eli?a /ith the conse;uence that he /as able to secu&e title in his na)e also.> 1& Acco&din%ly, /e
hold that the &i%ht of the p&ivate &espondents co))enced f&o) the ti)e they actually discove&ed the
petitione&s act of def&audation. 18 Acco&din% to the &espondent Cou&t of Appeals, they >ca)e to 3no/
Kof itL appa&ently only du&in% the p&o%&ess of the liti%ation.> 16 :ence, p&esc&iption is not a ba&.
Mo&eove&, and as a &ule, p&esc&iption is an affi&)ative defense that )ust be pleaded eithe& in a
)otion to dis)iss o& in the ans/e& othe&/ise it is dee)ed /aived, 17 and he&e, the petitione& neve&
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&aised that defense. 1' he&e a&e &eco%ni?ed e2ceptions to this &ule, but the petitione& has not sho/n
/hy they apply.
9:ERE'ORE, the&e bein% no &eve&sible e&&o& co))itted by the &espondent Cou&t of Appeals, the
petition is 4EN(E4. he 4ecision sou%ht to be &evie/ed is he&eby A''(RME4 in toto. No
p&onounce)ent as to costs.
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Republic of the Philippines
SUPREME COURT
Manila
:(R4 4(8(
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Mean/hile, on Au%ust !, "#*, afte& lea&nin% about the delay in the &e)ittance of the )oney to
petitione&, 'ACE< info&)ed 'N
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A&t. "#!. (f a thin% is &eceived /hen the&e /as no &i%ht to clai) it and /hich, th&ou%h
an e&&o&, has been unduly delive&ed, an obli%ation to &esto&e it a&ises.
(n :elez v. 7alzarza, D= Phil. $=* 5"#6, the Cou&t, spea3in% th&ou%h M&. Justice Bocobo e2plained
the natu&e of this a&ticle thus0
A&ticle "#! Kno/ A&ticle "!L of the Civil Code above;uoted, is the&efo&e
applicable. his le%al p&ovision, /hich dete&)ines the ;uasi-cont&act of solution
indebiti, is one of the conc&ete )anifestations of the ancient p&inciple that no one
shall en&ich hi)self un7ustly at the e2pense of anothe&. (n the Ro)an a/ 4i%est the
)a2i) /as fo&)ulated thus0 ;Jure naturae acquum est, neminem cum alterius
detrimento et in
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no &i%ht to apply the second "*,***.** &e)ittance delive&ed by )ista3e by p&ivate &espondent to
the outstandin% account of 'ACEA-"- 4eposition of M&. and >A--4eposition of M&.
6.
Plaintiff-appellant )ade the second &e)ittance on the /&on% assu)ption that
defendant-appellee did not &eceive the fi&st &e)ittance of @< "*,***.**. KRollo, pp.
$-D.L
(t is evident that the clai) of petitione& is ancho&ed on the app&eciation of the attendant facts /hich
petitione& /ould have this Cou&t &evie/. he Cou&t holds that the findin% by the Cou&t of Appeals thatthe second "*,***.** &e)ittance /as )ade by )ista3e, bein% based on substantial evidence, is
final and conclusive. he &ule &e%a&din% ;uestions of fact bein% &aised /ith this Cou&t in a petition
fo& certiorari unde& Rule ! of the Revised Rules of Cou&t has been stated in Re)alante v. ibe, .R.
No. !#!", 'eb&ua&y !, "#, "!
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to constitute se&ious abuse of disc&etion, such findin%s )ust stand, fo& this Cou&t is
not e2pected o& &e;ui&ed to e2a)ine o& cont&ast the o&al and docu)enta&y evidence
sub)itted by the pa&ties> K
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Sagrada Orden Vs Nacoco –Kinuha ng Hapon
ang lupa.
Action to recover parcel of land owned by P and
then because of !apanese war was ac"uired by
other parties then possessed by the #S govt thru
its custodian then possessed by the defendant
without agree$ent with the #S or with the
plaintiff and def then leased a part of the land.
%ssue& 'ON defendant is liable to Sagrada and
$ust pay the rentals.
Held& No. %f liable at all $ust arise fro$ any of
the four sources of obligations. APA was a trustee
of the #S and if def liable not to plaintiff but to
#S govt. (ut defendant not liable for rentals bec
no e)press agree$ent bet the APA and Nacoco.
*)istence of i$plied agree$ent is contrary to
the circu$stances.
Source& +ontract. (ut there was none.
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Republic of the Philippines
SUPREME COURT
Manila
EN BANC
G.R. No. L-36'&0 M() 22, 1973
PEOPLE>S CAR INC., plaintiff-appellant,
vs.
COMMAN#O SECURIT SERVICE AGENC, defendant-appellee.
TEE!AN*EE,J.:
(n this appeal f&o) the adve&se 7ud%)ent of the 4avao cou&t of fi&st instance li)itin% plaintiff-
appellants &ecove&y unde& its co)plaint to the su) of P",***.** instead of the actual da)a%es of
P,#."* clai)ed and suffe&ed by it as a di&ect &esult of the /&on%ful acts of defendant secu&ity
a%encys %ua&d assi%ned at plaintiffs p&e)ises in pu&suance of thei& >ua&d , the
Cou&t finds )e&it in the appeal and acco&din%ly &eve&ses the t&ial cou&ts 7ud%)ent.
he appeal /as ce&tified to this Cou&t by a special division of the Cou&t of Appeals on a fou&-to-one
vote as pe& its &esolution of Ap&il ", "#D= that >
he Cou&t has accepted such ce&tification and doc3eted this appeal on the st&en%th of its o/n findin%
f&o) the &eco&ds that plaintiffs notice of appeal /as e2p&essly to this Cou&t 5not to the appellate
cou&t6> on pu&e ;uestions of la/> 1 and its &eco&d on appeal acco&din%ly p&ayed that> the
co&&espondin% &eco&ds be ce&tified and fo&/a&ded to the :ono&able 2 he t&ial cou&t
so app&oved the sa)e 3 on July =, "#D" instead of havin% &e;ui&ed the filin% of a petition fo& &evie/ of
the 7ud%)ent sou%ht to be appealed f&o) di&ectly /ith this Cou&t, in acco&dance /ith the p&ovisions
of Republic Act !*. By so)e une2plained and hithe&to undiscove&ed e&&o& of the cle&3 of cou&t,
fu&the&)o&e, the &eco&d on appeal /as e&&oneously fo&/a&ded to the appellate cou&t &athe& than to
this Cou&t.
he pa&ties sub)itted the case fo& 7ud%)ent on a stipulation of facts. he&e is thus no dispute as to
the factual bases of plaintiffs co)plaint fo& &ecove&y of actual da)a%es a%ainst defendant, to /it,
that unde& the subsistin% >ua&d bet/een the pa&ties, defendant-appellee as a
duly licensed secu&ity se&vice a%ency unde&too3 in conside&ation of the pay)ents )ade by plaintiff to
safe%ua&d and p&otect the business p&e)ises of 5plaintiff6 f&o) theft, pilfe&a%e, &obbe&y, vandalis)
and all othe& unla/ful acts of any pe&son o& pe&son p&e7udicial to the inte&est of 5plaintiff6.> &
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On Ap&il !, "#D* at a&ound "0** A.M., ho/eve&, defendants secu&ity %ua&d on duty at plaintiffs
p&e)ises, >/ithout any autho&ity, consent, app&oval, 3no/led%e o& o&de&s of the plaintiff ando&
defendant b&ou%ht out of the co)pound of the plaintiff a ca& belon%in% to its custo)e&, and d&ove
said ca& fo& a place o& places un3no/n, abandonin% his post as such secu&ity %ua&d on duty inside
the plaintiffs co)pound, and /hile so d&ivin% said ca& in one of the City st&eets lost cont&ol of said
ca&, causin% the sa)e to fall into a ditch alon% J.P. au&el 8
As a &esult of these /&on%ful acts of defendants secu&ity %ua&d, the ca& of plaintiffs custo)e&,
Joseph uy, /hich had been left /ith plaintiff fo& se&vicin% and )aintenance, >suffe&ed e2tensive
da)a%e in the total a)ount of PD,*D#.> 6 besides the ca& &ental value >cha&%eable to defendant> in
the su) of P","*.** fo& a ca& that plaintiff had to &ent and )a3e available to its said custo)e& to
enable hi) to pu&sue his business and occupation fo& the pe&iod of fo&ty-seven 5D6 days 5f&o) Ap&il
! to June "*, "#D*6 that it too3 plaintiff to &epai& the da)a%ed ca&, 7 o& total actual da)a%es incu&&ed
by plaintiff in the su) of P,#."*.
Plaintiff clai)ed that defendant /as liable fo& the enti&e a)ount unde& pa&a%&aph ! of thei& cont&act
/he&eunde& defendant assu)ed >sole &esponsibility fo& the acts done du&in% thei& /atch hou&s> by its
%ua&ds, /he&eas defendant contended, /ithout ;uestionin% the a)ount of the actual da)a%es
incu&&ed by plaintiff, that its liability >shall not e2ceed one thousand 5P",***.**6 pesos pe& %ua&d
post> unde& pa&a%&aph of thei& cont&act.
he pa&ties thus li3e/ise stipulated on this sole issue sub)itted by the) fo& ad7udication, as follo/s0
(nte&p&etation of the cont&act, as to the e2tent of the liability of the defendant to the
plaintiff by &eason of the acts of the e)ployees of the defendant is the only issue to
be &esolved.
he defendant &elies on Pa&. of the cont&act to suppo&t its contention /hile the
plaintiff &elies on Pa&. ! of the sa)e cont&act in suppo&t of its clai)s a%ainst the
defendant. 'o& &eady &efe&ence they a&e ;uoted he&eunde&0
Pa&. . Pa&ty of the
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Pa&. ! he pa&ty of the the liability of the
defendant in favo& of the plaintiff falls unde& pa&a%&aph of the ua&d and
&ende&ed 7ud%)ent >findin% the defendant liable to the plaintiff in the a)ount of P",***.** /ith
costs.>
:ence, this appeal, /hich, as al&eady indicated, is )e&ito&ious and )ust be %&anted.
Pa&a%&aph of the cont&act, /hich li)its defendants liability fo& the a)ount of loss o& da)a%e to any
p&ope&ty of plaintiff to >P",***.** pe& %ua&d post,> is by its o/n te&)s applicable only fo& loss o&
da)a%e th&ou%h thene%li%ence of its %ua&ds ... du&in% the /atch hou&s> p&ovided that the sa)e is
duly &epo&ted by plaintiff /ithin hou&s of the occu&&ence and the %ua&ds ne%li%ence is ve&ified
afte& p&ope& investi%ation /ith the attendance of both cont&actin% pa&ties. defendants o/n %ua&d on duty
unla/fully and /&on%fully d&ove out of plaintiffs p&e)ises a custo)e&s ca&, lost cont&ol of it on the
hi%h/ay causin% it to fall into a ditch, the&eby di&ectly causin% plaintiff to incu& actual da)a%es in the
total a)ount of P,#."*.
4efendant is the&efo&e undoubtedly liable to inde)nify plaintiff fo& the enti&e da)a%es thus incu&&ed,
since unde& pa&a%&aph ! of thei& cont&act it >assu)ed the &esponsibility fo& the p&ope& pe&fo&)ance
by the %ua&ds e)ployed of thei& duties and 5cont&acted to6 be solel responsible fo& the acts done
du&in% thei& /atch hou&s> and >specifically &eleased 5plaintiff6 f&o) any and all liabilities ... to the thi&d
pa&ties a&isin% f&o) the acts o& o)issions done by the %ua&ds du&in% thei& tou& of duty.> As plaintiff
had duly discha&%ed its liability to the thi&d pa&ty, its custo)e&, Joseph uy, fo& the undisputed
da)a%es of P,#."* caused said custo)e&, due to the /anton and unla/ful act of defendants
%ua&d, defendant in tu&n /as clea&ly liable unde& the te&)s of pa&a%&aph ! of thei& cont&act to
inde)nify plaintiff in the sa)e a)ount.
he t&ial cou&ts app&oach that >had plaintiff unde&stood the liability of the defendant to fall unde&
pa&a%&aph !, it should have told Joseph uy, o/ne& of the ca&, that unde& the ua&d
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and the defendant, the plaintiff should have filed a c&ossclai) a%ainst the latte&,> 9 /as unduly
technical and un&ealistic and untenable.
Plaintiff /as in la/ liable to its custo)e& fo& the da)a%es caused the custo)e&s ca&, /hich had been
ent&usted into its custody. Plaintiff the&efo&e /as in la/ 7ustified in )a3in% %ood such da)a%es and
&elyin% in tu&n on defendant to hono& its cont&act and inde)nify it fo& such undisputed da)a%es,/hich had been caused di&ectly by the unla/ful and /&on%ful acts of defendants secu&ity %ua&d in
b&each of thei& cont&act. As o&dained in A&ticle ""!#, Civil Code, >obli%ations a&isin% f&o) cont&acts
have the fo&ce of la/ bet/een the cont&actin% pa&ties and should be co)plied /ith in %ood faith.>
Plaintiff in la/ could not tell its custo)e&, as pe& the t&ial cou&ts vie/, that >unde& the ua&d since the custo)e& could not hold
defendant to account fo& the da)a%es as he had no p&ivity of cont&act /ith defendant.
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Cangco vs. Manila Railroad Co.
GR. No. 12131, October 14, 1918
Ma. Cristina Ramos (O!"
#acts$ %ose Cangco, &erein 'lainti, )as an em'lo*ee o t&e deendant in
t&is case, manila Railroad Com'an*. +'on t&e occasion in -estion, 'lainti
)as ret-rning &ome b* rail rom &is dail* labors. s t&e train dre) -' to t&e
station, 'lainti arose rom &is seat. s t&e train slo)ed do)n, 'lainti
ste''ed o, b-t one or bot& o &is eet came in contact )it& a sac o
)atermelons. s a res-lt, &is eet sli''ed rom -nder &im and &e ell
violentl* on t&e 'latorm.
/&e accident occ-rred bet)een 08 ocloc on a dar nig&t as t&e railroad
station )as lig&ted diml*, obects on t&e 'latorm )&ere t&e accident occ-rred
rom a lig&ted car.
lainti s-ed t&e deendant com'an* or damages. /&e latter inter'osed t&e
deense t&at t&e direct and 'ro5imate ca-se o t&e in-r* s-ered b* t&e
'lainti )as &is o)n contrib-tor* negligence in ailing to )ait -ntil t&e
train &ad come to a com'lete sto' beore alig&ting.
6ss-e$ 7&et&er or not t&e cond-ct o t&e 'lainti in -ndertaing to alig&t
)&ile t&e train )as slig&tl* -nder)a* )as c&aracteried b* im'r-dence so as to
&old &im g-ilt* o contrib-tor* negligence.
eld$ /&e act o t&e 'lainti in ste''ing o t&e train )&ile it as *et
slo)l* moving )as not c&aracteried b* im'r-dence so as to &old &im g-ilt* o
contrib-tor* negligence.
6n arriving to s-c& concl-sion, t&e co-rt -sed t&e best o negligence
en-nciated in t&e case o icart vs. !mit& (30 6: 8;9" )&ic& )as stated as
ollo)$ 7as t&ere an*t&ing in t&e circ-mstances s-rro-nding t&e 'lainti at
t&e time &e alig&ted rom t&e train )&ic& )o-ld &ave admitted a 'erson o
average 'r-dence t&at to get o t&e train -nder t&e conditions t&en e5isting
)as dangero-s< 6 so, t&e 'lainti s&o-ld &ave deserted rom alig&ting= and
&is ail-re so to desist )as contrib-tor* negligence.
6n t&e case at bar, t&e 'lainti )as ignorant o t&e act t&at t&e
obstr-ction )&ic& )as ca-sed b* t&e sacs o melds 'iled on t&e 'latorm
e5isted. Moreover, t&e 'lace )as dar or diml* lig&ted. /&-s, &e )as a
ail-re on t&e 'art o t&e deendant to aord to its 'assengers acilities
or sae egress rom its trains.
6t is not negligence 'er se or a traveler to alig&t rom a slo)l* moving
train.
/&e civil liabilit* -nder -asi delict is contracted )it&o-t agreement or
consent, t&-s c-l'a e5tra contract-al, on t&e 'rinci'le t&at )&ere &arm, loss
or damage &as been ca-sed to a 'erson t&r- a-lt or negligent act t&e aggrieve
'art* is entitled to be indemniied. (Cangco vs MRR, 38 &il 0>8"
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Republic of the Philippines
SUPREME COURT
Manila
he pa&ties in this case a%&eed to sub)it the
)atte& fo& &esolution on the basis of thei& pleadin%s and anne2es and thei& &espective )e)o&anda
sub)itted. Petitione& eo&%e Pay is a c&edito& of the ate Justo Palanca /ho died in Manila on July
=, "#$=. he clai) of the petitione& is based on a p&o)isso&y note dated Janua&y =*, "#!, /he&eby
the late Justo Palanca and Rosa on?ales 8da. de Ca&los Palanca p&o)ised to pay eo&%e Pay the
a)ount of P$,#**.**, /ith inte&est the&eon at the &ate of "+ pe& annu). eo&%e Pay is no/
befo&e this Cou&t, as3in% that
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Palanca to be appointed as ad)inist&at&i21 that the p&ope&ty sou%ht to be ad)iniste&ed no lon%e&
belon%ed to the debto&, the late Justo Palanca1 and that the &i%hts of petitione&-c&edito& had al&eady
p&esc&ibed. he p&o)isso&y note, dated Janua&y =*, "#$, is /o&ded thus0 > Q'o& value &eceived f&o)
ti)e to ti)e since "#D, /e K7ointly and seve&ally p&o)ise toL pay to M&. Keo&%e PayL at his office at
the China Ban3in% Co&po&ation the su) of K/enty than ten 5"*6 yea&s has al&eady t&anspi&ed f&o) that ti)e until to date.
he action, the&efo&e, of the c&edito& has definitely p&esc&ibed.> & he &esult, as above noted, /as the
dis)issal of the petition.
(n an e2haustive b&ief p&epa&ed by Atto&ney 'lo&entino B. del Rosa&io, petitione& did assail the
co&&ectness of the &ulin%s of the lo/e& cou&t as to the effect of the &efusal of the su&vivin% spouse of
the late Justo Palanca to be appointed as ad)inist&at&i2, as to the p&ope&ty sou%ht to be
ad)iniste&ed no lon%e& belon%in% to the debto&, the late Justo Palanca, and as to the &i%hts of
petitione&-c&edito& havin% al&eady p&esc&ibed. As noted at the outset, only the ;uestion of p&esc&iption
need detain us in the disposition of this appeal. i3e/ise, as inti)ated, the decision )ust be
affi&)ed, conside&in% the clea& teno& of the p&o)isso&y note.
'&o) the )anne& in /hich the p&o)isso&y note /as e2ecuted, it /ould appea& that petitione& /as
hopeful that the satisfaction of his c&edit could he &eali?ed eithe& th&ou%h the debto& sued &eceivin%
cash pay)ent f&o) the estate of the late Ca&los Palanca p&esu)ptively as one of the hei&s, o&, ase2p&essed the&ein, >upon de)and.> he&e is nothin% in the &eco&d that /ould indicate /hethe& o& not
the fi&st alte&native /as fulfilled. 9hat is undeniable is that on Au%ust $, "#$D, )o&e than fifteen
yea&s afte& the e2ecution of the p&o)isso&y note on Janua&y =*, "#!, this petition /as filed. he
defense inte&posed /as p&esc&iption. (ts )e&it is &athe& obvious. A&ticle ""D# of the Civil Code
p&ovides0 >Eve&y obli%ation /hose pe&fo&)ance does not depend upon a futu&e o& unce&tain event, o&
upon a past event un3no/n to the pa&ties, is de)andable at once.> his used to be A&ticle """= of
the 6
he obli%ation bein% due and de)andable, it /ould appea& that the filin% of the suit afte& fifteen
yea&s /as )uch too late. 'o& a%ain, acco&din% to the Civil Code, /hich is based on
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because the estate /as left /ith no othe& p&ope&ty. he decision of the lo/e& cou&t cannot be
ove&tu&ned.
9:ERE'ORE, the lo/e& cou&t decision of July , "#$ is affi&)ed. Costs a%ainst eo&%e Pay.
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Republic of the Philippines
SUPREME COURT
Manila
EN BANC
G.R. No. L-16870 M(r54 9, 1922
SMIT!, "ELL : CO., LT#., plaintiff-appellant,
vs.
VICENTE SOTELO MATTI, defendant-appellant.
oss and >a'rence and *'ald *. $elp( for plaintiff-appellant.
amon $otelo for defendant-appellant.
ROMUAL#E, J.:
(n Au%ust, "#", the plaintiff co&po&ation and the defendant, M&. 8icente
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that, as a conse;uence of the plaintiffs delay in )a3in% delive&y of the %oods, /hich the inte&veno&
intended to use in the )anufactu&e of cocoanut oil, the inte&veno& suffe&ed da)a%es in the su)s of
one hund&ed si2teen thousand seven hund&ed ei%hty-th&ee pesos and ninety-one centavos
5P""$,D=.#"6 fo& the nondelive&y of the tan3s, and t/enty-one thousand t/o hund&ed and fifty pesos
5P",!*6 on account of the e2pelle&s and the )oto&s not havin% a&&ived in due ti)e.
he case havin% been t&ied, the cou&t belo/ absolved the defendants f&o) the co)plaint insofa& as
the tan3s and the elect&ic )oto&s /e&e conce&ned, but &ende&ed 7ud%)ent a%ainst the), o&de&in%
the) to >&eceive the afo&esaid e2pelle&s and pay the plaintiff the su) of fifty thousand pesos
5P!*,**6, the p&ice of the said %oods, /ith le%al inte&est the&eon f&o) July $, "#"#, and costs.>
Both pa&ties appeal f&o) this 7ud%)ent, each assi%nin% seve&al e&&o&s in the findin%s of the lo/e&
cou&t.
he p&incipal point at issue in this case is /hethe& o& not, unde& the cont&acts ente&ed into and the
ci&cu)stances established in the &eco&d, the plaintiff has fulfilled, in due ti)e, its obli%ation to b&in%
the %oods in ;uestion to Manila. (f it has, then it is entitled to the &elief p&ayed fo&1 othe&/ise, it )ustbe held %uilty of delay and liable fo& the conse;uences the&eof.
o solve this ;uestion, it is necessa&y to dete&)ine /hat pe&iod /as fi2ed fo& the delive&y of the
%oods.
As &e%a&ds the tan3s, the cont&acts A and B 5pa%es $" and $ of the &eco&d6 a&e si)ila&, and in both
of the) /e find this clause0
o be delive&ed /ithin = o& )onths he p&o)ise o& indication of ship)ent ca&&ies /ith it
absolutely no obli%ation on ou& pa&t ove&n)ent &e%ulations, &ail&oad e)ba&%oes, lac3 of
vessel space, the e2i%encies of the &e;ui&e)ent of the @nited
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he selle&s a&e not &esponsible fo& delays caused by fi&es, &iots on land o& on the sea, st&i3es
o& othe& causes 3no/n as >'o&ce Ma7eu&e> enti&ely beyond the cont&ol of the selle&s o& thei&
&ep&esentatives.
@nde& these stipulations, it cannot be said that any definite date /as fi2ed fo& the delive&y of the
%oods. As to the tan3s, the a%&ee)ent /as that the delive&y /as to be )ade >/ithin = o& )onths,>but that pe&iod /as sub7ect to the contin%encies &efe&&ed to in a subse;uent clause. 9ith &e%a&d to
the e2pelle&s, the cont&act says >/ithin the )onth of but to this is added >o& as
soon as possible.> And /ith &efe&ence to the )oto&s, the cont&act contains this e2p&ession,
>App&o2i)ate delive&y /ithin ninety days,> but &i%ht afte& this, it is noted that >this is not %ua&anteed.>
he o&al evidence falls sho&t of fi2in% such pe&iod.
'&o) the &eco&d it appea&s that these cont&acts /e&e e2ecuted at the ti)e of the /o&ld /a& /hen
the&e e2isted &i%id &est&ictions on the e2po&t f&o) the @nited ove&n)ent &e%ulations, &ail&oade)ba&%oes, lac3 of vessel space, the e2i%encies of the &e;ui&e)ents of the @nited in connection /ith the tan3s and >P&io&ity Ce&tificate, sub7ect to the @nited /ith &espect to the )oto&s. At the ti)e of the e2ecution of the cont&acts,
the pa&ties /e&e not un)indful of the contin%ency of the @nited
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dee)ed to have sufficiently pe&fo&)ed his pa&t of the obli%ation, if he has done all that /as in his
po/e&, even if the condition has not been fulfilled in &eality.
(n such cases, the decisions p&io& to the Civil Code have held that the obli%ee havin% done
all that /as in his po/e&, /as entitled to enfo&ce pe&fo&)ance of the obli%ation. his
pe&fo&)ance, /hich is fictitious not &eal is not e2p&essly autho&i?ed by the Code, /hichli)its itself only to decla&e valid those conditions and the obli%ation the&eby affected1 but it is
neithe& disallo/ed, and the Code bein% thus silent, the old vie/ can be )aintained as a
doct&ine. 5Man&esas co))enta&ies on the Civil Code K"#*DL, vol. , pa%e "=.6
he decisions &efe&&ed to by M&. Man&esa a&e those &ende&ed by the sup&e)e cou&t of Novsi)a
RecopilaciSn,> o& a/ ", it. "", of Pa&tida !, /hen in the said findin% of the lo/e& cou&t, no
la/ o& p&ecedent is alle%ed to have been violated. 5Jurisprudencia Civil published by the
di&ecto&s of the evista General de >e%islacion Jurisprudencia K"$$L, vol. ", pa%e $!$.6
(n the second decision, the follo/in% doct&ine is laid do/n0
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and not title passes. his )ust no/ be &e%a&ded as the settled doct&ine in this 7u&isdiction /hateve&
the &ule )ay be else/he&e.
(t appea&s affi&)atively f&o) the evidence in the p&esent case that the&e is a ne/spape& published in
the p&ovince /he&e the sale in ;uestion too3 place and that the assessed valuation of the p&ope&ty
disposed of at each sale e2ceeded P**. Co)pa&in% the &e;ui&e)ents of section !, supra, /ith/hat /as actually done, it is self-evident that notices of the sales )entioned /e&e not %iven as
p&esc&ibed by the statute and ta3in% into conside&ation that in connection /ith these sales the
appellant Addison /as eithe& the 7ud%)ent c&edito& o& else occupied a position analo%ous to that of a
7ud%)ent c&edito&, the sales )ust be held invalid.
he conveyance o& &econveyance of the land f&o) the 4i&ecto& of ands is e;ually invalid. he
p&ovisions of Act No. "D#" pe&tinent to the pu&chase o& &epu&chase of land confiscated fo& non-
pay)ent of ta2es a&e found in section "# of the Act and &ead0
. . . (n case such &ede)ption be not )ade /ithin the ti)e above specified the ove&n)ent of
the Philippine (slands shall have an absolute, indefeasible title to said &eal p&ope&ty. @pon thee2pi&ation of the said ninety days, if &ede)ption be not )ade, the p&ovincial t&easu&e& shall
i))ediately notify the 4i&ecto& of ands of the fo&feitu&e and fu&nish hi) /ith a desc&iption of
the p&ope&ty, and said 4i&ecto& of ands shall have full cont&ol and custody the&eof to lease o&
sell the sa)e o& any po&tion the&eof in the sa)e )anne& as othe& public lands a&e leased o&
sold0 2rovided, hat the o&i%inal o/ne&, o& his le%al &ep&esentative, shall have the &i%ht to
&epu&chase the enti&e a)ount of his said &eal p&ope&ty, at any ti)e befo&e a sale o& cont&act
of sale has been )ade by the di&ecto& of ands to a thi&d pa&ty, by payin% the&efo&e the /hole
su) due the&eon at the ti)e of e7ect)ent to%ethe& /ith a penalty of ten pe& centu) . . . .
he appellant Addison &epu&chased unde& the final p&oviso of the section ;uoted and /as allo/ed to
do so as the successo& in inte&est of the o&i%inal o/ne& unde& the e2ecution sale above discussed. As /e have seen, he ac;ui&ed no &i%hts unde& these sales, /as the&efo&e not the successo& of the
o&i%inal o/ne& and could only have obtained a valid conveyance of such titles as the ove&n)ent
)i%ht have by follo/in% the p&ocedu&e p&esc&ibed by the Public and Act fo& the sale of public lands.
he is entitled to &ei)bu&se)ent fo& the )oney paid fo& the &ede)ption of the land, /ith inte&est, but
has ac;ui&ed no title th&ou%h the &ede)ption.
he ;uestion of the p&io&ity of the &eco&d of the she&iffs sales ove& that of the sale f&o) Belisa&io to
Bo&7a is e2tensively a&%ued in the b&iefs, but f&o) ou& point of vie/ is of no i)po&tance1 void she&iffs
o& e2ecution sales cannot be validated th&ou%h insc&iption in the Mo&t%a%e a/ &e%ist&y.
he opposition of Adelina 'e&&e& )ust also be ove&&uled.
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Araullo, C.J., Jo(nson, $treet, alcolm, Avanceña, :illamor, strand, and Jo(ns, JJ., concur.
x-------------------------------------------------------------------------------------x
D E C I S I O N
PUNO, C.J.:
A. Precis
EN "ANC
FRANCISCO CHAVEZ,
Petitioner,
- versus -
RAUL M. GONZALES,
in his caaci!" as !he
Secre!ar" #$ !heDear!%en! #$ &us!ice'
an( NA)IONAL
)ELECOMMUNICA)IONS
COMMISSION *N)C+,
Respondents.
G.R. N#. //
Present:
PUNO, C.J.,
QUISUMBING,
YNARES-SANTIAGO,
SANDOVAL-GUTIERREZ,CARPIO,
AUSTRIA-MARTINEZ,
CORONA,
CARPIO MORALES,
AZCUNA,
TINGA,
CHICO-NAZARIO,
VELASCO, R!,
NACHURA,
REYES, "n#
LEONARDO-DE CASTRO, JJ.
Pr$%&'("te#:
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C. The Petition
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E. RE"E#A$!!G THE LA% O FREEDO$ OF SPEECH&
OF E#PRESS!O AD OF THE PRESS
)o la* shall +e passed a+ridging the freedo# of speech, of
e"pression, or of the press, or the right of the people peacea+l! to
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E.(. ABSTRACT!O OF FREE SPEECH
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