Ownership; Co-Ownership; Prescription (2002) Remedies; Reconveyance vs.
Reopening of a
Decree; Prescriptive Period (2003)
Senen and Peter are brothers. Senen
migrated to Canada early while still a teenager. Louie, before leaving the country to train as a
Peter stayed in Bulacan to take care of their chef in a fivestar hotel in New York, U.S.A.,
widowed mother and continued to work on the entrusted to his first-degree cousin Dewey an
Family farm even after her death. Returning to application for registration, under the Land
the country some thirty years after he had left, Registration Act, of a parcel of land located in
Senen seeks a partition of the farm to get his Bacolod City. A year later, Louie returned to the
share as the only co-heir of Peter. Peter Philippines and discovered that Dewey
interposes his opposition, contending that registered the land and obtained an Original
acquisitive prescription has already set in and Certificate of Title over the property in his
that estoppel lies to bar the action for partition, Dewey’s name. Compounding the matter,
citing his continuous possession of the property Dewey sold the land to Huey, an innocent
for at least 10 years, for almost 30 years in fact. purchaser for value. Louie promptly filed an
It is undisputed that Peter has never openly action for reconveyance of the parcel of land
claimed sole ownership of the property. If he against Huey.
ever had the intention to do so, Senen was
completely ignorant of it. Will Senen’s action (a) Is the action pursued by Louie the proper
prosper? Explain. (5%). remedy?
(b) Assuming that reconveyance is the proper
SUGGESTED ANSWER:
remedy, will the action prosper if the case was
Senen’s action will prosper. Article 494 of the filed beyond one year, but within ten years,
New Civil Code provides that “no prescription from the entry of the decree of registration? 5%
shall run in favor of a co-owner or co-heir
against his co-owners or co-heirs so long as he SUGGESTED ANSWER:
expressly or impliedly recognizes the (a) An action for reconveyance against
coownership nor notified Senen of his having Huey is not the proper remedy, because
repudiated the same Huey is an innocent purchaser for value.
The proper recourse is for Louie to go
ALTERNATIVE ANSWER:
after Dewey for damages by reason of
Senen’s action will prosper. This is a case of the fraudulent registration and
implied trust. (Art 1441, NCC) For purposes of subsequent sale of the land. If Dewey is
prescription under the concept of an owner insolvent, Louie may file a claim against
(Art. 540, NCC). There is no such concept here. the Assurance Fund (Heirs of Pedro
Peter was a co-owner, he never claimed sole Lopez v. De Castro 324 SCRA 591 [2000]
ownership of the property. He is therefore citing Sps. Eduarte v. CA, 323 Phil. 462,
estopped under Art. 1431, NCC. 467 [1996]).
(b) (b) Yes, the remedy will prosper
because the action prescribes in ten
(10) years, not within one (1) year when
a petition for the reopening of the SUGGESTED ANSWER:
registration decree may be filed. The Yes, Rachelle's suit will prosper because
action for reconveyance is distinct from all elements for an action for
the petition to reopen the decree of reconveyance are present, namely:
registration (Grey Alba v. De la Cruz, 17 a) Rachelle is claiming dominical rights
Phil. 49 [1910}). There is no need to over the same land.
reopen the registration proceedings, b) Rommel procured his title to the land
but the property should just be by fraud.
reconveyed to the real owner. c) The action was brought within the
statutory period of four (4) years from
The action for reconveyance is based on discovery of the fraud and not later
implied or constructive trust, which than ten (10} years from the date of
prescribes in ten (10) years from the registration of Rommel's title.
date of issuance of the original d) Title to the land has not passed into
certificate of title. This rule assumes the hands of an innocent purchaser for
that the defendant is in possession of value.
the land. Where it is the plaintiff who is
in possession of the land, the action for Rommel can invoke the indefeasibility
reconveyance would be in the nature of of his title if Rachelle had filed a petition
a suit for quieting for the title which to reopen or review the decree of
action is imprescriptible (David v. registration. But Rachelle instead filed
Malay, 318 SCRA 711 [1999]). an ordinary action in personam for
reconveyance. In the latter action,
Remedies; Reconveyance; Elements indefeasibility is not a valid defense
(1995) because, in filing such action, Rachelle is
Rommel was issued a certificate of title not seeking to nullify nor to impugn the
over a parcel of land in Quezon City. indefeasibility of Rommel's title. She is
One year later Rachelle, the legitimate only asking the court to compel
owner of the land, discovered the Rommel to reconvey the title to her as
fraudulent registration obtained by the legitimate owner of the land.
Rommel. She filed a complaint against
Rommel for reconveyance and caused Yes. The property registered is deemed
the annotation of a notice of lis to be held in trust for the real owner by
pendens on the certificate of title issued the person in whose name it is
to Rommel. Rommel now invokes the registered. The Torrens system was not
indefeasibility of his title considering designed to shield one who had
that one year has already elapsed from committed fraud or misrepresentation
its issuance. He also seeks the and thus holds the title in bad faith.
cancellation of the notice of Lis (Walstrom v. Mapa Jr., (G .R 38387, 29
pendens. Jan. 1990) as cited in Martinez, D.,
Will Rachelle's suit for reconveyance Summary of SC Decisions, January to
prosper? Explain June, 1990, p. 359],
TRUST entirety without the knowledge and
Express Trust; Prescription (1997) consent of Juana, and wrongfully kept
for himself the entire price paid. 1.
On 01 January 1980, Redentor and What rights of action, if any, does Juana
Remedies entered into an agreement by have against and/or the buyer? |3%] 2.
virtue of which the former was to Since the two lots have the same area,
register a parcel of land in the name of suppose Juana flies a complaint to have
Remedies under the explicit covenant herself declared sole owner of the
to reconvey the land to Remigio, son of entire remaining second lot, contending
Redentor, upon the son's graduation that her brother had forfeited his share
from college. In 1981, the land was thereof by wrongfully disposing of her
registered in the name of Remedies. undivided share in the first lot. Will the
suit prosper? [2%]
Redentor died a year later or in 1982. In SUGGESTED ANSWER:
March 1983, Remigio graduated from 1. When, for convenience, the Torrens
college. In February 1992, Remigio title to the two parcels of land were
accidentally found a copy of the placed in Joan's name alone, there
document so constituting Remedies as was created an implied trust (a
the trustee of the land. In May 1994, resulting trust) for the benefit of
Remigio filed a case against Remedies Juana with Juan as trustee of one-
for the reconveyance of the land to him. half undivided or ideal portion of
Remedies, in her answer, averred that each of the two lots. Therefore,
the action already prescribed. How Juana can file an action for damages
should the matter be decided? against Joan for having fraudulently
sold one of the two parcels which
SUGGESTED ANSWER: he partly held in trust for Juana's
benefit. Juana may claim actual or
he matter should be decided in favor of compensatory damage for the loss
Remigio (trustee) because the action of her share in the land; moral
has not prescribed. The case at bar damages for the mental anguish,
involves an express trust which does anxiety, moral shock and wounded
not prescribe as long as they have not feelings she had suffered;
been repudiated by the trustee (Diaz vs. exemplary damage by way of
Gorricho. 103 Phil, 261). example for the common good, and
attorney's fees.
Juan and his sister Juana inherited from
their mother two parcels of farmland Juana has no cause of action against
with exactly the same areas. For the buyer who acquired the land for
convenience, the Torrens certificates of value and in good faith, relying on
title covering both lots were placed in the transfer certificate of title
Juan's name alone. In 1996, Juan sold to showing that Juan is the registered
an innocent purchaser one parcel in its owner of the land.
