SUPREME COURT REPORTS ANNOTATED VOLUME 253                                                                      18/10/2019, 12)07 PM
VOL. 253, FEBRUARY 9, 1996                                          391
                                            Eduarte vs. Court of Appeals
                                                                                            *
                                        G.R. No. 105944. February 9, 1996.
                      SPOUSES ROMULO AND SALLY EDUARTE, petitioners,
                      vs. THE HONORABLE COURT OF APPEALS and PEDRO
                      CA-LAPINE (substituted by ALEXANDER CALAPINE and
                      ARTEMIS CALAPINE), respondents.
                           Donations; Revocation of Donation; All crimes which offend the
                      donor show ingratitude and are causes for revocation.·As noted in
                      the aforecited opinion „all crimes which offend the donor show
                      ingratitude and are causes for revocation.‰ PetitionersÊ attempt to
                      categorize the offenses according to their classification under the
                      Revised Penal Code is therefore unwarranted considering that
                      illegal detention, threats and coercion are considered as crimes
                      against the person of the donor despite the fact that they are
                      classified as crimes against personal liberty and security under the
                      Revised Penal Code.
                           Same; Evidence; Witnesses; Expert Testimony; Handwriting
                      Experts; The value of the opinion of a handwriting expert depends
                      not upon his mere statements of whether a writing is genuine or
                      false, but upon the assistance he may afford in pointing out
                      distinguishing marks, characteristics and discrepancies in and
                      between genuine and false specimens of writing which would
                      ordinarily escape notice or detection from an unpracticed observer.·
                      In gauging the relative weight to be given to the opinion of
                      handwriting experts, we adhere to the following standards: „We
                      have held that the value of the opinion of a handwriting expert
                      depends not upon his mere state-
                      _______________
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                           *   THIRD DIVISION.
                                                                                                         392
                      392                SUPREME COURT REPORTS ANNOTATED
                                               Eduarte vs. Court of Appeals
                      ments of whether a writing is genuine or false, but upon the
                      assistance he may afford in pointing out distinguishing marks,
                      characteristics and discrepancies in and between genuine and false
                      specimens of writing which would ordinarily escape notice or
                      detection from an unpracticed observer. The test of genuineness
                      ought to be the resemblance, not the formation of letters in some
                      other specimens but to the general character of writing, which is
                      impressed on it as the involuntary and unconscious result of
                      constitution, habit or other permanent course, and is, therefore
                      itself permanent.‰
                           Land Titles; Ownership; Possession; The rule is well-settled that
                      mere possession cannot defeat the title of a holder of a registered
                      torrens title to real property.·We agree with petitioners. The rule is
                      well-settled that mere possession cannot defeat the title of a holder
                      of a registered torrens title to real property. Moreover, reliance on
                      the doctrine that a forged deed can legally be the root of a valid title
                      is squarely in point in this case: „Although generally a forged or
                      fraudulent deed is a nullity and conveys no title, however there are
                      instances when such a fraudulent document may become the root of
                      a valid title. One such instance is where the certificate of title was
                      already transferred from the name of the true owner to the forger,
                      and while it remained that way, the land was subsequently sold to
                      an innocent purchaser. For then, the vendee had the right to rely
                      upon what appeared in the certificate.
                           Same; Sales; The fact that the vendorÊs title was fraudulently
                      secured cannot prejudice the rights of the purchasers absent any
                      showing that they had knowledge or participation in such
                      irregularity.·When herein petitioners purchased the subject
                      property from Helen Doria, the same was already covered by TCT
                      No. T-23205 under the latterÊs name. And although Helen DoriaÊs
                      title was fraudulently secured, such fact cannot prejudice the rights
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                      of herein petitioners absent any showing that they had any
                      knowledge or participation in such irregularity. Thus, they cannot
                      be obliged to look beyond the certificate of title which appeared to
                      be valid on its face and sans any annotation or notice of private
                      respondentsÊ adverse claim. Contrary therefore to the conclusion of
                      respondent Court, petitioners are purchasers in good faith and for
                      value as they bought the disputed property without notice that
                      some other person has a right or interest in such property, and paid
                      a full price for the same at the time of the purchase or before they
                      had notice of the claim or interest of some other person in the
                      property.
                                                                                                         393
                                        VOL. 253, FEBRUARY 9, 1996                                       393
                                               Eduarte vs. Court of Appeals
                            Same; Same; The established rule is that the rights of an
                      innocent purchaser for value must be respected and protected
                      notwithstanding the fraud employed by the seller in securing his
                      title.·Respondent Court therefore committed a reversible error
                      when it affirmed the ruling of the trial court annulling and setting
                      aside the deed of absolute sale dated March 25, 1988 between
                      petitioners and Helen Doria, as well as the Transfer Certificate of
                      Title No. T-27434 issued under petitionerÊs name, the established
                      rule being that the rights of an innocent purchaser for value must
                      be respected and protected notwithstanding the fraud employed by
                      the seller in securing his title.
                          Same; Same; Assurance Fund; Remedies of the owner of a
                      parcel of land who was prejudiced and fraudulently dispossessed of
                      his property.·In this regard, it has been held that the proper
                      recourse of the true owner of the property who was prejudiced and
                      fraudulently dispossessed of the same is to bring an action for
                      damages against those who caused or employed the fraud, and if
                      the latter are insolvent, an action against the Treasurer of the
                      Philippines may be filed for recovery of damages against the
                      Assurance Fund.
                      PETITION for review of a decision of the Court of Appeals.
                      The facts are stated in the opinion of the Court.
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                                Makalintal, Barot, Torres & Ibarra for petitioners.
                                Roberto E. Gomez for private respondents.
                      FRANCISCO, J.:
                      A donation is an act of liberality whereby a person disposes
                      gratuitously
                                 1
                                   of a thing or right in favor of another, who
                      accepts it. On the part of the donor, it is an exercise of
                      oneÊs generosity. However, on several occasions, instead of
                      being accorded recognition and appreciation for this act of
                      beneficence, the donor ends up as a victim of greed and
                      ingratitude. This was the fate that befell Pedro Calapine
                      (herein original plaintiff) constraining him to cause the
                      revocation of the donation that he made to his niece in
                      1984. The instant petition
                      _______________
                          1   Article 725, New Civil Code.
                                                                                                         394
                      394             SUPREME COURT REPORTS ANNOTATED
                                            Eduarte vs. Court of Appeals
                      for certiorari is interposed by the spouses Romulo and Sally
                      Eduarte, assailing the decision of the Court of Appeals in
                      CA-G.R. CV No. 29175 which affirmed the revocation of the
                      donation made by Pedro Calapine to his niece, Helen Doria,
                      and at the same time declared petitioners as purchasers in
                      bad faith of the property donated.
                         As set out in the appealed decision, the undisputed facts
                      are as follows:
                      „Pedro Calapine was the registered owner of a parcel of land located
                      in San Cristobal, San Pablo City, with an area of 12,199 square
                      meters, as evidenced by Original Certificate of Title No. P-2129
                      (Exhibits A and 1). On April 26, 1984, he executed a deed entitled
                      ÂPagbibigay-Pala (Donacion Inter-Vivos)Ê ceding one-half portion
                      thereof to his niece Helen S. Doria (Exhibit B).
                         „On July 26, 1984, another deed identically entitled was
                      purportedly executed by Pedro Calapine ceding unto Helen S. Doria
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                      the whole of the parcel of land covered by OCT No. P-2129 (Exhibits
                      C and D), on the basis of which said original certificate was
                      cancelled and in lieu thereof Transfer Certificate of Title No. T-
                      23205 was issued in her name (Exhibits G and 2).
                         „On February 26, 1986, Helen S. Doria donated a portion of 157
                      square meters of the parcel of land covered by TCT No. T-23205 to
                      the Calauan Christian Reformed Church, Inc. (Exhibit H), on the
                      basis of which said transfer certificate of title was cancelled and
                      TCT No. T-24444 was issued in its name covering 157 square
                      meters (Exhibit 2-A) and TCT No. T-24445, in the name of Helen S.
                      Doria covering the remaining portion of 12,042 square meters
                      (Exhibit 3).
                         „On March 25, 1988, Helen S. Doria sold, transferred and
                      conveyed unto the spouses Romulo and Sally Eduarte the parcel of
                      land covered by TCT No. T-24445, save the portion of 700 square
                      meters on which the vendorÊs house had been erected (Exhibits 1
                      and 3-F), on the basis of which TCT No. 24445 was cancelled and in
                      lieu thereof TCT No. T-27434, issued in the name of the vendees
                      (Exhibit 4).
                         „Claiming that his signature to the deed of donation (Exhibits C
                      and D) was a forgery and that she was unworthy of his liberality,
                      Pedro Calapine brought suit against Helen S. Doria, the Calauan
                      Christian Reformed Church, Inc. and the spouses Romulo and Sally
                      Eduarte to revoke the donation made in favor of Helen S. Doria
                                                                                                         395
                                        VOL. 253, FEBRUARY 9, 1996                                       395
                                               Eduarte vs. Court of Appeals
                      (Exhibit B), to declare null and void the deeds of donation and sale
                      that she had executed in favor of the Calauan Christian Reformed
                      Church, Inc. and the spouses Romulo and Sally Eduarte (Exhibits
                      H, I and 3-F) and to cancel TCT Nos. T-24444, 24445 and T-27434.
                         „Answering the complaint, the defendants spouses denied
                      knowledge of the first deed of donation and alleged that after a part
                      of the property was donated to the defendant Calauan Christian
                      Reformed Church, Inc., the remaining portion thereof was sold to
                      them by the defendant Helen S. Doria; and that the plaintiff Ês
                      purported signature in the second deed of donation was his own,
                      hence genuine. They prayed that the complaint against them be
                      dismissed; that upon their counterclaim, the plaintiff be ordered to
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                      pay them moral and exemplary damages and attorneyÊs fees; and
                      that upon their cross-claim the defendant Helen S. Doria be ordered
                      to reimburse them the purchase price of P110,000 and to pay them
                      moral and exemplary damages and attorneyÊs fees (pp. 23-31, rec.).
                         „The defendant Calauan Christian Reformed Church, Inc.
                      manifested in its answer the willingness to reconvey to the plaintiff
                      that part of the property donated to it by Helen S. Doria (pp. 36-38,
                      rec.). And having executed the corresponding deed of reconveyance,
                      the case as against it was dismissed (pp. 81-83; 84, rec.).
                         „The defendants Helen S. Doria and the City Assessor and the
                      Registrar of Deeds of San Pablo City did not file answers to the
                      plaintiff Ês complaint.
                         „After the plaintiff Ês death on August 27, 1989, on motion, he
                      was substituted by his nephews Alexander and Artemis Calapine
                      upon order of the Court (pp. 147-152; 250, rec.).
                         „After trial, the Regional Trial Court, Fourth Judicial Region,
                      Branch 30, San Pablo City rendered judgment, the dispositive part
                      of which provides:
                      WHEREFORE, premises considered, judgment is hereby rendered by the
                      Court in the instant case in favor of plaintiff and against defendant
                      Eduartes to wit:
                            1. DECLARING as it is hereby declared, the revocation of the Deed
                               of Donation dated April 26, 1984;
                            2. ANNULLING, voiding, setting aside and declaring of no force and
                               effect the Deed of Donation dated July 26, 1984, the deed of
                               absolute sale executed on March 25, 1988 by and between
                               spouses Eduartes and Helen Doria, and the Transfer
                                                                                                         396
                      396                SUPREME COURT REPORTS ANNOTATED
                                               Eduarte vs. Court of Appeals
                      Certificate of Title No. T-27434 issued under the name of spouses Romulo
                      and Sally Eduarte;
                            3. ORDERING the office of the Register of Deeds, San Pablo City, to
                               cancel TCT No. T-27434 or any other adverse title emanating
                               from OCT No. P-2129 and in lieu thereof, to issue a new transfer
                               certificate of title covering the subject property under the names
                               of the substitute-plaintiffs Alexander and Artemis both surnamed
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                               Calapine, after payment of the corresponding fees and taxes
                               therefor; and
                            4. ORDERING defendant Helen Doria to pay substitute-plaintiffs
                               the sum of P200,000.00 as and for attorneyÊs fees.
                          Judgment on the cross-claim of defendant Eduartes against Helen
                      Doria is further rendered by ordering the latter to pay the former the
                      sum of P110,000.00 with legal interest thereon starting from March 25,
                      1988 until full payment, and the further sum of P20,000.00 as and for
                      attorneyÊs fees.
                          The counterclaim of defendant Eduartes against plaintiff is hereby
                      dismissed for lack of merit.
                          Costs against defendant Helen Doria in both the complaint and the
                      cross-claim (pp. 11-12, decision, pp. 264-265, rec.).
                         „Only the defendants Eduarte spouses took an appeal (p. 266,
                      rec.), claiming that the trial court erred·
                             1. In annulling, voiding, setting aside, and declaring of no
                                force and effect·
                           (a) the deed of donation (Exhibit C and 1-A), dated July 26,
                               1984;
                           (b) the deed of absolute sale (Exhibit 1 and 3-E) executed on
                               March 25, 1988 by and between Spouses Eduartes and
                               Helen Doria;
                            (c) TCT No. T-27434 (Exhibit 4) issued in the name of spouses
                                Romulo Eduarte and Sally Eduarte; and in revoking the
                                deed of donation (Exhibit B) dated April 26, 1984;
                             2. In declaring the appellants Eduartes buyers in bad faith;
                             3. In not finding the plaintiffs guilty of estoppel by silence
                                and/or guilty of suppression of evidence instead of find-
                                                                                                         397
                                        VOL. 253, FEBRUARY 9, 1996                                       397
                                               Eduarte vs. Court of Appeals
                                ing the appellants Eduartes guilty of suppression of
                                evidence; and
                             4. In finding that the signature of Pedro Calapine in the deed
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                                  of donation (Exhibits C and 1-A) dated July 26, 1984 a
                                  forgery based on the opposite findings of the hand writing
                                  experts presented by each party and in the absence of the
                                  testimony of Pedro Calapine who was then still alive (pp. 1-
                                                          2
                                  2, appellantsÊ brief.)‰
                                                                             3
                      In its decision dated April 22, 1992, respondent Court of
                      Appeals dismissed petitionersÊ appeal and affirmed the
                      decision of the trial court. Respondent court was in
                      complete accord with the trial court in giving more
                      credence to the testimony of private respondentsÊ expert
                      witness, NBI document examiner Bienvenido Albacea, who
                      found Pedro CalapineÊs signature in the second deed of
                      donation to be a forgery. It also ruled that by falsifying
                      Pedro CalapineÊs signature, Helen Doria committed an act
                      of ingratitude which is a valid ground for revocation of the
                      donation made in her favor in accordance with Article 765
                      of the Civil Code. Furthermore, respondent court upheld
                      the trial courtÊs finding that petitioners are not buyers in
                      good faith of the donated property as they failed to exercise
                      due diligence in verifying the true ownership of the
                      property despite the existence of circumstances that should
                      have aroused their suspicions.
                         Petitioners are now before us taking exception to the
                      foregoing findings of respondent Court of Appeals and
                      contending that the same are not in accord with the law
                      and evidence on record.
                         Anent the revocation of the first deed of donation,
                      petitioners submit that paragraph (1) of Article 765 of the
                      Civil Code does not apply in this case because the acts of
                      ingratitude referred to therein pertain to offenses
                      committed by the donee against the person or property of
                      the donor. Petitioners argue that as the offense imputed to
                      herein donee Helen Doria·falsification of a public
                      document·is neither a crime against
                      _______________
                          2   Decision, pp. 1-5, Rollo, pp. 32-36.
                          3   Rollo, p. 32.
                                                                                                         398
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                      398            SUPREME COURT REPORTS ANNOTATED
                                            Eduarte vs. Court of Appeals
                      the person nor property of the donor but is a crime against
                      public interest under the Revised Penal Code, the same is
                      not a ground for revocation.
                         In support of this contention, petitioners cite the
                      following portions found in TolentinoÊs Commentaries and
                      Jurisprudence on the Civil Code:
                      „Offense against Donor·x x x. The crimes against the person of the
                      donor would include not only homicide and physical injuries, but
                      also illegal detention, threats and coercion; and those against honor
                      include offenses against chastity and those against the property,
                      include robbery, theft, usurpation, swindling, arson, damages, etc.
                                              4
                      (5 Manresa 175-176).‰
                      This assertion, however, deserves scant consideration. The
                      full text of the very same commentary cited by petitioners
                      belies their claim that falsification of the deed of donation
                      is not an act of ingratitude, to wit:
                      „Offense Against Donor.·All crimes which offend the donor show
                      ingratitude and are causes for revocation. There is no doubt,
                      therefore, that the donee who commits adultery with the wife of the
                      donor, gives cause for revocation by reason of ingratitude. The
                      crimes against the person of the donor would include not only
                      homicide and physical injuries, but also illegal detention, threats,
                      and coercion; those against honor include offenses against chastity;
                      and those against the property, include robbery, theft, usurpation,
                                                                                5
                      swindling, arson, damages, etc. [Manresa 175-176]. (Italics
                      supplied).
                      Obviously, the first sentence was deleted by petitioners
                      because it totally controverts their contention. As noted in
                      the aforecited opinion „all crimes which offend the donor
                      show ingratitude and are causes for revocation.‰
                      PetitionersÊ attempt to categorize the offenses according to
                      their classification under the Revised Penal Code is
                      therefore unwarranted considering that illegal detention,
                      threats and coercion are considered as crimes against the
                      person of the donor despite
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                      _______________
                          4   Petition, p. 11; Rollo, p. 23, citing Vol. II, ed., p. 550.
                          5   Vol. II, 1983 Ed., p. 538.
                                                                                                         399
                                       VOL. 253, FEBRUARY 9, 1996                                        399
                                              Eduarte vs. Court of Appeals
                      the fact that they are classified as crimes against 6personal
                      liberty and security under the Revised Penal Code.
                         Petitioners also impute grave error to respondent Court
                      of Appeals in finding that the second deed of donation
                      dated July 26, 1984 was falsified. Petitioners deplore the
                      fact that more credence was given to the testimony of the
                      NBI handwriting expert who found Pedro CalapineÊs
                      signature in the second deed of donation to be a forgery
                      despite the existence of controverting testimony by PC-INP
                      Crime Laboratory (PCCL) Chief Document Examiner
                      which petitioners adduced as evidence on their part.
                         We are not persuaded. Respondent Court of Appeals and
                      the trial court cannot be faulted for giving more weight and
                      credence to the testimony of the NBI handwriting expert
                      considering that the examination of the said witness
                      proved to be complete, thorough and scientific.
                         In gauging the relative weight to be given to the opinion
                      of handwriting experts, we adhere to the following
                      standards:
                      „We have held that the value of the opinion of a handwriting expert
                      depends not upon his mere statements of whether a writing is
                      genuine or false, but upon the assistance he may afford in pointing
                      out distinguishing marks, characteristics and discrepancies in and
                      between genuine and false specimens of writing which would
                      ordinarily escape notice or detection from an unpracticed observer.
                      The test of genuineness ought to be the resemblance, not the
                      formation of letters in some other specimens but to the general
                      character of writing, which is impressed on it as the involuntary
                      and unconscious result of constitution, habit or other permanent
                                                                  7
                      course, and is, therefore itself permanent.‰
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                      _______________
                          6   See Revised Penal Code, Title Nine·Crimes Against Personal
                      Liberty and Security; Articles 267, 268, 282, 283, 286, 287, 289.
                          7   People vs. Domasian, 219 SCRA 245, 252 (1993) citing Alcos v. IAC,
                      162 SCRA 823, Moran, Comments on Rules of Court, 434, Nolasco ed.,
                      1980; People v. Bustos, 45 Phil. 9 (1983).
                                                                                                         400
                      400            SUPREME COURT REPORTS ANNOTATED
                                            Eduarte vs. Court of Appeals
                      Confronted with contradicting testimonies from two
                      handwriting experts, the trial court and respondent Court
                      of Appeals were convinced by the opinion of the NBI
                      handwriting expert as it was more exhaustive, in contrast
                      with the testimony of petitionersÊ witness from the PCCL
                      which was discarded on account of the following flaws:
                      „The Court is not convinced with CruzÊs explanations. Apart from
                      the visual inconsistencies, i.e., the strokes with which some letters
                      were made, the variety in the sizes of the letters, the depth, the
                      difference in the slant which the Court itself observed in its own
                      examination of both the questioned signatures and those standard
                      specimen signatures, there is evidence showing that Cruz did not
                      make a thorough examination of all the signatures involved in this
                      particular issue. Thus even in the report submitted by the PCCL it
                      was admitted that they omitted or overlooked the examination of at
                      least three (3) standard specimen signatures of Pedro Calapine
                      which were previously subject of the NBI examination marked as
                      Exhibits ÂS-9,Ê ÂS-10Ê and ÂS-11.Ê When questioned regarding this
                      oversight, Cruz testified that in his opinion, the inclusion or non-
                      inclusion of said exhibits in their examination will not affect the
                      same and they would have arrived at the same conclusion anyway.
                      Again, when asked why they did not bother to have the original
                      copies of the documents being questioned (Exhs. ÂQ-1Ê through ÂQ-3Ê)
                      for their examination, Cruz replied that they are using a special
                      film so it will not matter whether the documents being examined
                      are the original or a mere photocopy (TSN 8, 10, 12 and 26, Hearing
                      of Nov. 23, 1989).
                         „The Court will not attempt to make its own conclusion or
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SUPREME COURT REPORTS ANNOTATED VOLUME 253                                                                      18/10/2019, 12)07 PM
                      resolution on such a technical issue as the matter at hand in the
                      light of the cavalier attitude of Cruz. In fine, between the
                      examinations made by the two witnesses, that of AlbaceaÊs proved
                      to be complete, thorough and scientific and is worthy of credence
                                   8
                      and belief.‰
                      The afore-quoted findings confirm beyond doubt the failure
                      of petitionersÊ expert witness to satisfy the above-
                      mentioned criteria for evaluating the opinion of
                      handwriting experts. At the same time, petitionersÊ witness
                      failed to rebut the convincing testimony of the NBI
                      handwriting expert presented by
                      _______________
                          8   Decision, pp. 5-6, Rollo, pp. 36-37.
                                                                                                         401
                                      VOL. 253, FEBRUARY 9, 1996                                         401
                                             Eduarte vs. Court of Appeals
                      private respondents. We therefore find no reason to deviate
                      from the assailed conclusions as the same are amply
                      supported by the evidence on record.
                         Finally, proceeding to the crucial issue that directly
                      affects herein petitioners, it is reiterated that petitioners
                      are buyers in good faith of the donated property, and
                      therefore, it was grave error to annul and set aside the
                      deed of sale executed between petitioners and donee Helen
                      Doria.
                         In adjudging petitioners as buyers in bad faith,
                      respondent Court of Appeals affirmed the trial courtÊs
                      finding that the attendant circumstances, that is, the
                      presence of other occupants as well as houses built of
                      strong materials and fruit bearing trees in the subject land,
                      should have aroused the suspicion of petitioners and
                      impelled them to exercise due diligence in verifying the
                      true ownership of the property being sold. Petitioners
                      dispute the lower courtÊs conclusion and argue that
                      although there were other occupants in the subject
                      property, no adverse claim was made by the latter as they
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                      were mere tenants therein, thus, petitioners were not
                      obliged to make any further inquiry because the property
                      being sold was covered by a certificate of title under Helen
                      DoriaÊs name.
                         We agree with petitioners. The rule is well-settled that
                      mere possession cannot defeat the title     9
                                                                     of a holder of a
                      registered torrens title to real property. Moreover, reliance
                      on the doctrine that a forged deed can legally be the root of
                      a valid title is squarely in point in this case:
                      „Although generally a forged or fraudulent deed is a nullity and
                      conveys no title, however there are instances when such a
                      fraudulent document may become the root of a valid title. One such
                      instance is where the certificate of title was already transferred
                      from the name of the true owner to the forger, and while it
                      remained that way, the land was subsequently sold to an innocent
                      purchaser. For then, the vendee had the right to rely upon what
                      appeared in the certificate.
                      _______________
                          9   Abad vs. Court of Appeals, 179 SCRA 817, 826 (1989) citing J.M.
                      Tuason & Co., Inc. vs. Court of Appeals, 93 SCRA 146 (1979).
                                                                                                         402
                      402            SUPREME COURT REPORTS ANNOTATED
                                            Eduarte vs. Court of Appeals
                      „Where there was nothing in the certificate of title to indicate any
                      cloud or vice in the ownership of the property, or any encumbrance
                      thereon, the purchaser is not required to explore further than what
                      the Torrens Title upon its face indicates in quest for any hidden
                      defect or inchoate right that may subsequently defeat his right
                      thereto. If the rule were otherwise, the efficacy and conclusiveness
                      of the certificate of title which the Torrens System seeks to insure
                                                              10
                      would entirely be futile and nugatory.‰
                      When herein petitioners purchased the subject property
                      from Helen Doria, the same was already covered by TCT
                      No. T-23205 under the latterÊs name. And although Helen
                      DoriaÊs title was fraudulently secured, such fact cannot
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                      prejudice the rights of herein petitioners absent any
                      showing that they had any knowledge or participation in
                      such irregularity. Thus, they cannot be obliged to look
                      beyond the certificate of title which appeared to be valid on
                      its face and sans any annotation or notice of private
                      respondentsÊ adverse claim. Contrary therefore to the
                      conclusion of respondent Court, petitioners are purchasers
                      in good faith and for value as they bought the disputed
                      property without notice that some other person has a right
                      or interest in such property, and paid a full price for the
                      same at the time of the purchase or before they had notice
                      of the claim
                                11
                                      or interest of some other person in the
                      property.
                         Respondent Court therefore committed a reversible
                      error when it affirmed the ruling of the trial court
                      annulling and setting aside the deed of absolute sale dated
                      March 25, 1988 between petitioners and Helen Doria, as
                      well as the Transfer Certificate of Title No. T-27434 issued
                      under petitionerÊs name, the established rule being that the
                      rights of an innocent purchaser for value must be respected
                      and protected
                      _______________
                          10   Philippine National Bank vs. Court of Appeals, et al., 187 SCRA
                      735, 740 (1990) citing Fule vs. Legare, 7 SCRA 351.
                          11   Tenio-Obsequio vs. Court of Appeals, 230 SCRA 550, 556 (1994)
                      citing De Santos vs. Intermediate Appellate Court, et al., 157 SCRA 295;
                      Co, et al. vs. Court of Appeals, et al., 196 SCRA 705; Casupit, et al. vs.
                      Court of Appeals, 204 SCRA 684.
                                                                                                         403
                                     VOL. 253, FEBRUARY 9, 1996                                          403
                                            Eduarte vs. Court of Appeals
                      notwithstanding 12the fraud employed by the seller in
                      securing his title.
                         In this regard, it has been held that the proper recourse
                      of the true owner of the property who was prejudiced and
                      fraudulently dispossessed of the same is to bring an action
                      for damages against those who caused or employed the
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SUPREME COURT REPORTS ANNOTATED VOLUME 253                                                                      18/10/2019, 12)07 PM
                      fraud, and if the latter are insolvent, an action against the
                      Treasurer of the Philippines may be 13filed for recovery of
                      damages against the Assurance Fund.
                          Conformably with the foregoing, having established
                      beyond doubt that Helen Doria fraudulently secured her
                      title over the disputed property which she subsequently
                      sold to petitioners, Helen Doria should instead be adjudged
                      liable to private respondents, and not to petitioners as
                      declared by the trial court and respondent Court of
                      Appeals, for the resulting damages to the true owner and
                      original plaintiff, Pedro Calapine.
                          ACCORDINGLY, the petition is GRANTED and the
                      appealed decision is hereby MODIFIED. The portions of
                      the decision of the Regional Trial Court of San Pablo City,
                      Branch 30, as affirmed by the Court of Appeals in CA-G.R.
                      CV No. 29175 which ordered the following:
                      „x x x       xxx       x x x;
                              „2. ANNULLING, voiding, setting aside and declaring of no
                                  force and effect x x x, the deed of absolute sale executed on
                                  March 25, 1988 by and between spouses Eduartes and
                                  Helen Doria, and the Transfer Certificate of Title No. T-
                                  27434 issued under the name of spouses Romulo and Sally
                                  Eduarte;
                              „3. ORDERING the office of the Register of Deeds, San Pablo
                                  City, to cancel TCT No. T-27434 or any other adverse title
                                  emanating from OCT No. P-2129 and in lieu thereof, to
                                  issue a new transfer certificate of title covering the subject
                                  property under the names of the substitute-plaintiffs
                                  Alexander and Artemis both surnamed Ca-
                      _______________
                         12   Pino vs. Court of Appeals, 198 SCRA 434, 440 citing Director of Lands vs.
                      Abache, et al., 73 Phil. 606.
                         13   Philippine National Bank vs. Court of Appeals, et al., supra, citing Blanco,
                      et al. vs. Esquierdo, 110 Phil. 494; Tenio-Obsequio vs. Court of Appeals, supra.
                                                                                                         404
                      404                 SUPREME COURT REPORTS ANNOTATED
                                               Eduarte vs. Court of Appeals
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SUPREME COURT REPORTS ANNOTATED VOLUME 253                                                                      18/10/2019, 12)07 PM
                                lapine, after payment of the corresponding fees and taxes
                                therefor; and
                           „4. x x x     xxx         x x x. „Judgment on the cross-claim of
                               defendant Eduartes against Helen Doria is further rendered
                               by ordering the latter to pay the former the sum of
                               P110,000.00 with legal interest thereon starting from March
                               25, 1988 until full payment, x x x.‰
                      are hereby REVERSED and SET ASIDE.
                         Instead, Helen Doria is hereby ordered to pay herein
                      private respondents the sum of P110,000.00 with legal
                      interest counted from March 25, 1988 until full payment,
                      as damages for the resulting loss to original plaintiff Pedro
                      Calapine.
                         In all other respects, the appealed decision is hereby
                      affirmed.
                         SO ORDERED.
                              Narvasa (C.J., Chairman), Davide, Jr., Melo and
                      Panganiban, JJ., concur.
                          Petition granted, judgment modified.
                         Notes.·It would be manifestly unfair for the Republic,
                      as donee, alleged to have violated the conditions under
                      which it received gratuitously certain property, thereafter
                      to put as a barrier the concept of non-suability. That would
                      be a purely one-sided arrangement offensive to oneÊs sense
                      of justice. Such conduct, whether proceeding from an
                      individual or governmental agency, is to be condemned. As
                      a matter of fact, in case it is the latter that is culpable, the
                      affront to decency is even more manifest. (Santiago vs.
                      Republic, 87 SCRA 294 [1978])
                         Only the donor or his heirs have the personality to
                      question the violation of any restriction in the deed of
                      donation. (Gar-rido vs. Court of Appeals, 236 SCRA 450
                      [1994])
                                                         ··o0o··
                                                                                                         405
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SUPREME COURT REPORTS ANNOTATED VOLUME 253                                                                      18/10/2019, 12)07 PM
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