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GR No 168661

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G.R. No.

168661               October 26, 2007

ESTATE OF THE LATE JESUS S. YUJUICO, represented by ADMINISTRATORS BENEDICTO


V. YUJUICO and EDILBERTO V. YUJUICO; and AUGUSTO Y. CARPIO, Petitioners,
vs.
REPUBLIC OF THE PHILIPPINES and the COURT OF APPEALS, Respondents.

Facts:

A land originally owned by Fermina Castro (Decree No. N-150912) was sold to Jesus S. Yujuico who
subdivided the land into two lots- one registered under his name and the other under the name of
Augusto Y. Carpio.

By virtue of PD 1085, land reclaimed in the foreshore and offshore areas of Manila Bay became the
properties of the Public Estates Authority (PEA), a government corporation that undertook the
reclamation of lands or the acquisition of reclaimed lands. The PEA undertook the construction of
the Manila Coastal Road. As this was being planned, a verification survey showed that the road
directly overlapped the subject property, and that Yujuico and Carpio owned a portion of the land
sold by the PEA to the Manila Bay Development Corporation.

A Complaint for Annulment and Cancellation of Decree No. N-150912 and its Derivative Titles was
filed by the respondent against the petitioners alleging that (1) the land registered to Castro was still
a portion of Manila Bay since it was still underwater thus, it could not be registered in the name of
Fermina Castro; (2) the land registration court did not have jurisdiction to adjudicate inalienable
lands, thus the decision adjudicating the subject parcel of land to Fermina Castro as well as the
derivative titles of Yujuico and Carpio were void.

RTC dismissed the complaint. The CA observed that shores are properties of the public domain
intended for public use and, therefore, not registrable and their inclusion in a certificate of title does
not convert the same into properties of private ownership or confer title upon the registrant. Further,
res judicata does not apply to lands of public domain, nor does possession of the land automatically
divest the land of its public character.

Issue: Is a reversion suit proper in this case?

Ruling:

No, a reversion suit will no longer be allowed at this stage.

When the 1997 Rules of Civil Procedure became effective on July 1, 1997, it incorporated Rule 47
on annulment of judgments or final orders and resolutions of the RTCs. The two grounds for
annulment under Sec. 2, Rule 47 are extrinsic fraud and lack of jurisdiction. If based on extrinsic
fraud, the action must be filed within four (4) years from its discovery, and if based on lack of
jurisdiction, before it is barred by laches or estoppel as provided by Section 3, Rule 47. Thus,
effective July 1, 1997, any action for reversion of public land instituted by the Government was
already covered by Rule 47.

The instant Civil Case No. 01-0222 for annulment and cancellation of Decree No. N-150912 and its
derivative titles was filed with the Parañaque City RTC. It is clear therefore that the reversion suit
was erroneously instituted in the Parañaque RTC and should have been dismissed for lack of
jurisdiction. The proper court is the CA which is the body mandated by BP Blg. 129 and prescribed
by Rule 47 to handle annulment of judgments of RTCs.

Assuming that the Parañaque RTC has jurisdiction over the reversion case, still the lapse of almost
three decades in filing the instant case, the inexplicable lack of action of the Republic and the injury
this would cause constrain us to rule for petitioners. While the general rule is that an action to
recover lands of public domain is imprescriptible, said right can be barred by laches or estoppel.
Section 32 of PD 1592 recognized the rights of an innocent purchaser for value over and above the
interests of the government.

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