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  • 8/18/2019 Rule 74-75 Full Cases

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    Rule 74

    Sec. 1

    1. Villafria v. Plazo, G.R. No. 187524, August 5, 2015

    !"R# #"V"S"$N

    G.R. No. 187524, August 05, 2015

    SP$%S&S 'AR"A (%"$NG AN# )RAN*"S*$ V"++A)R"A, S%(S"% (#R. R%&+ (. V"++A)R"A, Petitio-ers, v. 'A. GRA*"A R"$/A P+A/$ AN# 'A.

    )& R"$/A A+ARAS,Reso-e-ts.

    # & * " S " $ N

    P&RA+A, .3

    (efore te*ourt is a etitio- for revie6 o- certiorari u-er Rule 45 of te Rules of *ourtseei-g to reverse a- set asie te #ecisio-1 a- Resolutio-,2 ate 'arc 1, 2009a- Aril 2, 2009, resectivel:, of te *ourt Aeals ;*A< i- *AG.R. SP No. 10747,6ic affir=e te ug=e-tate $cto>er 1, 2001 of te Regio-al rial *ourt ;R*<of Nasug>u, (ata-gas, (ra-c 14, i- *ivil *ase No. 217.

    e a-tecee-t facts are as follo6s3+a6li>rar:of*RAla6

    $- Nove=>er 1?, 1989, Pero +. Ri@oza ie i-testate, leavi-g several eirs, i-clui-g

    is cilre- 6it is first 6ife, reso-e-ts 'a. Gracia R. Plazo a- 'a. )e Alaras, as6ell as several roerties i-clui-g a resort covere >: ra-sfer *ertificates of itle;*< No. 5154 a- No. 5155, eac 6it a- area of 51 suare =eters, a- a fa=il:o=e, te la- o- 6ic it sta-s is covere >: * Nos. 40807 a- 40808, >ot locatei- Nasug>u, (ata-gas.4rearcla6

    "- teir A=e-e *o=lai-t for uicial Partitio- 6it A--ul=e-t of itle a- Recover:of Possessio-5ate Sete=>er 15, 199, reso-e-ts allege tat so=eti=e i- 'arc1991, te: iscovere tat teir coeirs, PeroBs seco- 6ife, (e-ita e-orio a- oter cilre-, a sol te su>Cect roerties to etitio-ers, souses )ra-cisco Villafria a-'aria (utio-g, 6o are -o6 ecease a- su>stitute >: teir so-, #r. Ruel (. Villafria,

    6itout teir -o6lege a- co-se-t. De- co-fro-te a>out te sale, (e-itaac-o6lege te sa=e, so6i-g reso-e-ts a ocu=e-t se >elieve evie-ce receitof er sare i- te sale, 6ic, o6ever, i -ot refer to a-: sort of sale >ut to a reviousloa- o>tai-e >: Pero a- (e-ita fro= a >a-.? e ocu=e-t actuall: evie-cereceit fro= (a-co Sila-ga- of te a=ou-t of P87,52.?2 releasi-g er a- er lateus>a-Bs i-e>te-ess terefro=.7 %o- i-uir:, te Register of #ees of Nasug>ui-for=e reso-e-ts tat e as -o recor of a-: tra-sactio- i-volvi-g te su>Cect

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     roerties, givi-g te= certifie true coies of te titles to te sa=e. De- reso-e-ts6e-t to te su>Cect roerties, te: iscovere tat 4 out of te 8 cottages i- te resorta >ee- e=olise. e: 6ere -ot, o6ever, a>le to e-ter as te re=ises 6ere aloce.

    Su>seue-tl:, reso-e-ts lear-e tat o- ul: 18, 1991, a -otice of a- eEtraCuicialsettle=e-t of estate of teir late fater 6as u>lise i- a ta>loi calle (alita. (ecauseof tis, te: cause te a--otatio- of teir averse clai=s over te su>Cect roerties >efore te Register of #ees of Nasug>u a- file teir co=lai-t ra:i-g, a=o-g oters,for te a--ul=e-t of all ocu=e-ts co-ve:i-g te su>Cect roerties to te etitio-ers a-certificates of title issue ursua-t tereto.8rearcla6

    "- teir A-s6er,9 etitio-ers e-ie te allegatio-s of te co=lai-t o- te grou- of lac of erso-al -o6lege a- goo fait i- acuiri-g te su>Cect roerties. "- te course of 

    is testi=o-: uri-g trial, etitio-er )ra-cisco furter co-te-e tat 6at te: urcase 6as o-l: te resort.10 !e also rese-te a- &Etrauicial Settle=e-t 6itRe-u-ciatio-, Reuiatio-s a- Daiver of Rigts a- Sale 6ic rovies, a=o-goters, tat reso-e-tsB coeirs sol te fa=il: o=e to te souses Rola-o a- 'a.*ecilia (o-oc for P1 =illio- as 6ell as a #ee of Sale 6ere>: (e-ita sol te resort to etitio-ers for P?50,000.00.11rearcla6

    $- $cto>er 1, 2001, te trial court -ullifie te tra-sfer of te su>Cect roerties to etitio-ers a- souses (o-oc ue to irregularities i- te ocu=e-ts of co-ve:a-ceoffere >: etitio-ers.as 6ell as te circu=sta-ces surrou-i-g te eEecutio- of te sa=e.Secificall:, te &Etrauicial Settle=e-t 6as -otarize >: a -otar: u>lic 6o 6as -ot

    ul: co==issio-e as suc o- te ate it 6as eEecute.12 e #ee of Sale 6as u-ate,te ate of te ac-o6leg=e-t terei- 6as left >la-, a- te t:e6ritte- -a=e FPeroRi@oza, !us>a-F o- te left sie of te ocu=e-t 6as -ot sig-e.1 e trial court alsoo>serve tat >ot ocu=e-ts 6ere -ever rese-te to te $ffice of te Register of #eesfor registratio- a- tat te titles to te su>Cect roerties 6ere still i- te -a=es of Peroa- is seco- 6ife (e-ita. "- aitio-, te suose -otaries a- >u:ers of te su>Cect roerties 6ere -ot eve- rese-te as 6it-esses 6o suosel: 6it-esse te sig-i-ga- eEecutio- of te ocu=e-ts of co-ve:a-ce.14 $- te >asis tereof, te trial courtrule i- favor of reso-e-ts, i- its ug=e-t, te erti-e-t ortio-s of its fallo rovie3+a6li>rar:of*RAla6

    D!&R&)$R&, foregoi-g re=ises co-siere, Cug=e-t is ere>: re-ere asfollo6s3+a6li>rar:of*RAla6

    E E E E

    4. a< #eclari-g as a -ullit: te &Etrauicial Settle=e-t 6it Re-u-ciatio-, Reuiatio-

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    a- Daiver of Rigts a- SaleF ;&E. F1F, Villafria< -otarize o- #ece=>er 2, 1991 >: Notar: Pu>lic A-to-io G. 'alo-zo of 'a-ila, #oc. No. 190, Page No. 20, (oo No.""", Series of 1991.

     >< #eclari-g as a -ullit: te #ee of A>solute Sale ;&E. F2F, Villafria: (e-ita . Ri@oza i- favor of souses )ra-cisco Villafria a- 'aria (utio-g, urortel: -otarize >: o-e Alfreo e Guz=a-, =are #oc. No. 11?, Page No. 141,(oo No. , Series of 1991.

    c< $reri-g te forfeiture of a-: a- all i=rove=e-ts i-trouce >: efe-a-ts)ra-cisco Villafria - 'aria (utio-g i- te roerties covere >: * No. 40807,40808, 5154 a- 5155 of te Register of #ees for Nasug>u, (ata-gas.

    5. $reri-g efe-a-t )ra-cisco Villafria a- all erso-s, 6ose occua-c: 6iti- te

     re=ises of te four ;4< arcels of la- escri>e i- ar. 4c a>ove is erive fro= terigts a- i-terest of efe-a-t Villafria, to vacate its re=ises a- to eliver ossessio-tereof, a- all i=rove=e-ts eEisti-g tereo- to lai-tiffs, for a- i- >ealf of te estateof ecee-t Pero +. Ri@oza.

    ?. #eclari-g te lai-tiffs a- te efe-a-tseirs i- te A=e-e *o=lai-t to >e telegiti=ate eirs of ecee-t Pero +. RifSoza, eac i- te caacit: a- egreeesta>lise, as 6ell as teir irect successorsi-i-terest, a- oreri-g te efe-a-tRegistrar of #ees to issue te correso-i-g titles i- teir -a=es i- te roortio-esta>lise >: la6, ro i-iviso, i- * Nos. 40807, 40808, 5154, 5155 a- 405;after restoratio-< 6iti- te- ;10< a:s fro= fi-alit: of tis #ecisio-, uo- a:=e-t of 

    la6ful fees, eEcet * No. 405, 6ic sall >e eEe=t fro= all eEe-ses for itsrestoratio-.

    Dit -o costs.

    S$ $R#&R.15

    $- aeal, te *A affir=e te trial courtBs ug=e-t i- its #ecisio-1? ate $cto>er 1,200? i- te follo6i-g 6ise3+a6li>rar:of*RAla6

    e erso- >efore 6o= te resort ee 6as ac-o6lege, Alfreo e Guz=a-, 6as -otco==issio-e as a -otar: u>lic fro= 1989 to ul: , 1991, te ate te certificatio- 6asissue. Suc >ei-g te case, te resort ee is -ot a u>lic ocu=e-t a- te resu=tio-of regularit: accore to u>lic ocu=e-ts 6ill -ot al: to te sa=e. As lai o6- i-ig-o, el al. v. Aui-o, et al.3+a6li>rar:of*RAla6

    e valiit: of a -otarial certificatio- -ecessaril: erives fro= te autorit: of te

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    -otarial officer. "f te -otar: u>lic oes -et ave te caacit: to -otarize a ocu=e-t, >utoes so a-:6a:, te- te ocu=e-t soul >e treate as u--otarize. e rule =a: strieas rater ars, a- eras =a: rove to >e reCuicial to arties i- goo fait rel:i-go- te roferre autorit: of te -otar: u>lic or te erso- rete-i-g to >e o-e. Still, to

    a=it oter6ise 6oul re-er =erel: officious te ela>orate rocess evise >: tis*ourt i- orer tat a la6:er =a: receive a -otarial co==issio-. Ditout suc a rule, te-otarizatio- of a ocu=e-t >: a ul:aoi-te -otar: u>lic 6ill ave te sa=e legaleffect as o-e acco=lise >: a -o-la6:er e-gage i- rete-se.

    e -otarizatio- of a ocu=e-t carries co-siera>le legal effect. Notarizatio- of a rivateocu=e-t co-verts suc ocu=e-t i-to a u>lic o-e, a- re-ers it a=issi>le i- court6itout furter roof of its aute-ticit:. us, -otarizatio- is -ot a- e=t: routi-eH to teco-trar:, it e-gages u>lic i-terest i- a su>sta-tial egree a- te rotectio- of tati-terest reuires reve-ti-g tose 6o are -ot ualifie or autorize to act as -otaries

     u>lic fro= i=osi-g uo- te u>lic a- te courts a- a=i-istrative officesge-erall:.Pare-teticall:, te settle=e-tIfa=il: o=e ee ca--ot >e co-siere a u>licocu=e-t. is is >ecause te follo6i-g cast ou>t o- te ocu=e-tBs aute-ticit:, to6it3+a6li>rar:of*RAla6

    1.< e ate of its eEecutio- 6as -ot i-icateH2.< e a=ou-t of co-sieratio- 6as sueri=oseH.< "t 6as -ot rese-te to te Registr: of #ees of Nasug>u, (ata-gas for a--otatio-Ha-4.< Not eve- te suose -otar: u>lic,F Alfreo e Guz=a-, or te urorte >u:er, teSouses Rola-o a- 'a. *ecilia (o-oc, 6ere rese-te as 6it-esses.

    *o-ceel:, te a>se-ce of -otarizatio- i- te resort ee a-Ior te laci-g etails i- tesettle=e-tIfa=il: o=e ee i -ot -ecessaril: i-valiate te tra-sactio-s evie-ce >:te sai ocu=e-ts. !o6ever, si-ce te sai ees are rivate ocu=e-ts, erforce, teir ue eEecutio- a- aute-ticit: >eco=es su>Cect to te reuire=e-t of roof u-er teRules o- &vie-ce, Sectio- 20, Rule 12 of 6ic rovies3+a6li>rar:of*RAla6Sec. 20. Proof of rivate ocu=e-t. (efore a-: rivate ocu=e-t offere as aute-tic isreceive i- evie-ce, its ue eEecutio- aiC .aute-ticit: =ust >e roveeiter3+a6li>rar:of*RAla6

    ;a< (: a-:o-e 6o sa6 te ocu=e-t eEecute or 6ritte-H or ;>< (: evie-ce of te ge-ui-e-ess of te sig-ature or a-6riti-g of te =aer.e*o=lai-i-g !eirs i-sist tat te settle=e-tIfa=il: o=e a- te resort ee are voi asteir sig-atures tereo- are forgeries as oose to te Villafrias 6o rofess te eesBe-forcea>ilit:. After te *o=lai-i-g !eirs rese-te roofs i- suort of teir clai= tatteir sig-atures 6ere forge, te >ure- te- fell uo- te Villafrias to isrove te sa=e,or co-versel:, to rove te aute-ticit: a- ue eEecutio- of te sai ees. e

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    Villafrias faile i- tis regar.

    As aforestate, te Villafrias i -ot rese-t as 6it-esses ;a< te -otar: u>lic 6o urortel: -otarize te uestio-e i-stru=e-t, ;>< te 6it-esses 6o aeareJ i- te

    i-stru=e-ts as e:e6it-esses to te sig-i-g, or ;c< a- eEert to rove te aute-ticit: a-ge-ui-e-ess of all te sig-atures aeari-g o,- te sai i-stru=e-ts. Veril:, te rule tat, roer fou-atio- =ust >e lai for te a=issio- of ocu=e-tar: evie-ceH tat is, teie-tit: a- aute-ticit: of te ocu=e-t =ust >e reaso-a>l: esta>lise as a rereuisiteto its a=issio-, 6as rue-tl: o>serve >: te lo6er court 6e- it refuse to a=it tesettle=e-tIfa=il: o=e a- te resort ees as teir veracit: are ou>tful.17Aggrieve, etitio-ers, su>stitute >: teir so- Ruel Villafria, file a 'otio- for Reco-sieratio- ate Nove=>er 24, 200? raisi-g te trial courtBs lac of Curisictio-. "t6as allege tat 6e- te *o=lai-t for uicial Partitio- 6it A--ul=e-t of itle a-Recover: of Possessio- 6as file, tere 6as :et -o settle=e-t of PeroBs estate,

    eter=i-atio- as to te -ature tereof, -or 6as tere a- ie-tificatio- of te -u=>er of legiti=ate eirs. As suc, te trial court rule o- te settle=e-t of te i-testate estate of Pero i- its ori-ar: Curisictio- 6e- te actio- file 6as for uicial Partitio-.*o-sieri-g tat te i-sta-t actio- is reall: o-e for settle=e-t of i-testate estate, te trialcourt, sitti-g =erel: i- its ro>ate Curisictio-, eEceee its Curisictio- 6e- it ruleuo- te issues of forger: a- o6-ersi. us, etitio-er argue tat sai ruli-g is voia- as -o effect for avi-g >ee- re-ere 6itout Curisictio-. e 'otio- for Reco-sieratio- 6as, o6ever, e-ie >: te aellate court o- )e>ruar: 2?, 2007.

    $- aeal, tis *ourt e-ie o- u-e 20, 2007, etitio-erBs Petitio- for Revie6 o-*ertiorari for su>=itti-g a verificatio- of te etitio-, a certificate of -o-foru= soi-g

    a- a- affiavit of service tat faile to co=l: 6it te 2004 Rules o- Notarial Practiceregari-g co=ete-t evie-ce of affia-tBs ie-tities.18 "- its Resolutio-19 ateSete=>er 2?, 2007, tis *ourt also e-ie etitio-erBs 'otio- for Reco-sieratio- i- tea>se-ce of a-: co=elli-g reaso- to 6arra-t a =oificatio- of te revious e-ial. us,te u-e 20, 2007 Resolutio- >eca=e fi-al a- eEecutor: o- $cto>er 1, 2007 ascertifie >: te &-tr: of ug=e-t issue >: te *ourt.20rearcla6

    $- a-uar: 1?, 2008, te *ourt furter e-ie etitio-erBs =otio- for leave to a=it aseco- =otio- for reco-sieratio- of its Sete=>er 2?, 2007 Resolutio-, co-sieri-g tatte sa=e is a roi>ite leai-g u-er Sectio- 2, Rule 52, i- relatio- to Sectio- 4, Rule

    5? of te 1997 Rules of *ivil Proceure, as a=e-e. )urter=ore, etitio-erBs letter ate #ece=>er 18, 2007 leai-g te *ourt to tae a seco-, loo at is etitio- for revie6 o- certiorari a- tat a ecisio- tereo- >e re-ere >ase urel: o- its =erits6as -ote 6itout actio-.21rearcla6

    %-satisfie, etitio-er 6rote a letter ate 'arc 24, 2008 aresse to te- *ief ustice Re:-ato S. Pu-o ra:i-g tat a ecisio- o- te case >e re-ere >ase o- te

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    .=erits a- -ot o- for=al reuire=e-ts Fas e sta-s to lose ever:ti-g is are-ts aleft i= Cust >ecause te verificatio- agai-st -o-foru= soi-g is for=all: efective.F!o6ever, i- vie6 of te &-tr: of ug=e-t avi-g >ee- =ae o- $cto>er 1, 2007, te*ourt lie6ise -ote sai letter 6itout actio-.22rearcla6

    $- Nove=>er 27, 2008, te R* issue a- $rer, issui-g a Partial Drit of &Eecutio- of its $cto>er 1, 2001 #ecisio- 6it resect to te ortio-s isosi-g of etitio-erBs clai=sas affir=e >: te *A.

    e foregoi-g -ot6itsta-i-g, etitio-er file, o- )e>ruar: 11, 2009, a Petitio- for A--ul=e-t of ug=e-t a- $rer >efore te *A assaili-g te $cto>er 1, 2001 #ecisio-as 6ell as te Nove=>er 27, 2008 $rer of te R* o- te grou-s of eEtri-sic frau a-lac of Curisictio-. "- its #ecisio- ate 'arc 1, 2009, o6ever, te *A is=isse te etitio- a- affir=e te ruli-gs of te trial court i- te follo6i-g

    6ise3+a6li>rar:of*RAla6

    Altoug te assaile #ecisio- of te *ourt a uo as alrea: >eco=e fi-al a-eEecutor: a- i- fact e-tr: of Cug=e-t 6as issue o- 1 $cto>er 2007, sura,-everteless, to ut te issues to rest, De ee= it aroos to tacle te sa=e.

    e Petitio-er argues tat te assaile #ecisio- a- $rer of te *ourt a uo, sura,soul >e a--ulle a- set asie o- te grou-s of eEtri-sic frau a- lac of Curisictio-.

    De are -ot ersuae,

    E E E E

    Sectio- 2 of te Rules as state a>ove rovies tat te a--ul=e-t of a Cug=e-t =a: F>e >ase o-l: o- grou-s of eEtri-sic frau a- lac of Curisictio-.F "- RP v. e !eirs of Sa-co 'agato, te !ig ri>u-al stresse tat3+a6li>rar:of*RAla6ere is eEtri-sic frau 6e- Fte u-successful art: a >ee- reve-te fro= eEi>iti-gfull: is case, >: frau or ecetio- ractice o- i= >: is oo-e-t, as >: eei-g i=a6a: fro= court, ... or 6ere te efe-a-t -ever a -o6lege of te suit, >ei-g eti- ig-ora-ce >: te acts of te lai-tiffH ...F$ter6ise ut, eEtri-sic or collateral frau ertai-s to suc frau 6ic reve-ts te aggrieve art: fro= avi-g a trial or 

     rese-ti-g is case to te court, or is use to rocure te Cug=e-t 6itout fair su>=issio- of te co-trovers:. is refers to acts i-te-e to ee te u-successful art:a6a: fro= te courts as 6e- tere is a false ro=ise of co=ro=ise or 6e- o-e is eti- ig-ora-ce of te suit.

    e ivotal issues >efore %s are3 ;1< 6eter tere 6as a ti=e uri-g te roceei-gs >elo6 tat te Petitio-ers ever reve-te fro= eEi>iti-g full: teir case, >: frau or 

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    ecetio-, ractice o- te= >: Reso-e-ts, a- ;2< 6eter te Petitio-ers 6ere eta6a: fro= te court or et i- ig-ora-ce >: te acts of te Reso-e-tK

    De fi- -oti-g of tat sort. "-stea, 6at De euce as De carefull: elve i-to te

    evie-tiar: facts surrou-i-g te i-sta-t case as 6ell as te roceei-gs >elo6 as so6-i- te ?age #ecisio- of te *ourt a uo, is tat te Petitio-ers 6ere give- a=le ti=eto re>ut te allegatio-s of te Reso-e-ts a- a i- fact aresse ever: etail of Reso-e-tBs cause of actio- agai-st te=. us, Petitio-ersB allegatio- of te *ourt auoBs lac of Curisictio- is =islace.

    $ur ro-ou-ce=e-t o- te =atter fi-s suort i- te eElicit ruli-g of te Sure=e*ourt i- Ss. Sa-tos, et al. v. Ss. +u=>ao, tus3+a6li>rar:of*RAla6"t is ele=e-tar: tat te active articiatio- of a art: i- a case e-i-g agai-st i= >efore a court is ta-ta=ou-t to recog-itio- of tat courtBs Curisictio- a- 6illi-g-ess to

    a>ie >: te resolutio- of te case 6ic 6ill >ar sai art: fro= later o- i=ug-i-g tecourtBs Curisictio-."- fi-e, u-er te circu=sta-ces o>tai-i-g i- tis case te Petitio-ersare stoe fro= assaili-g te *ourt a uoBs lac of Curisictio-.

    oo, De o -ot fi- =erit i- te Petitio-ersB seco- issue, sura.

    As =e-tio-e earlier, e-tr: of Cug=e-t a alrea: >ee- =ae o- te assaile #ecisio-a- $rer as earl: as 1 $cto>er 2007.

    E E E E

    "t =a:>e tat te octri-e of fi-alit: of Cug=e-ts er=its certai- euita>le re=eiessuc as a etitio- for a--ul=e-t. (ut te rules are clear. e a--ul=e-t >: te *ourt of Aeals of Cug=e-ts or fi-al orers a- resolutio-s i- civil actio-s of te Regio-al rial*ourts is resorte to o-l: 6ere te ori-ar: re=eies of -e6 trial, aeal, etitio- for relief or oter aroriate re=eies are -o lo-ger availa>le troug -o fault of te etitio-er, sura.

    "f Petitio-ers lost teir ca-ce to avail te=selves of te aroriate re=eies or aeal >efore te Sure=e *ourt, tat is teir o6- loo out. e !ig ri>u-al as e=aticall: oi-te out i- 'ercao, et al. v. Securit: (a- *ororatio-, tus3+a6li>rar:of*RAla6

    A ri-cile al=ost reeate to satiet: is tat Fa- actio- for a--ul=e-t of Cug=e-t ca--ota- is -ot a su>stitute for te lost re=e: ofaeal.F A art: =ust ave first availe of aeal, a =otio- for -e6 trial or a etitio- for relief >efore a- actio- for a--ul=e-t ca- roser. "ts o>vious ratio-ale is to reve-t te art: fro= >e-efiti-g fro= is i-actio- or -eglige-ce. Also, te actio- for a--ul=e-t of Cug=e-t =ust >e >ase eiter o- ;a<eEtri-sic frau or ;>< lac of Curisictio- or e-ial of ue rocess. !avi-g faile to availof te re=eies a- tere >ei-g a clear so6i-g tat -eiter of te grou-s 6as rese-t,

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    te etitio- =ust >e is=isse. $-l: a isgru-tle litiga-t 6oul fi- suc legalisositio- u-acceta>le.2De- te aellate court e-ie Petitio-erBs 'otio- for Reco-sieratio- i- its Resolutio- ate Aril 2, 2009, etitio-er file te i-sta-t Petitio-for Revie6 o- *ertiorari o- u-e 10, 2009, i-voi-g te follo6i-g

    grou-3+a6li>rar:of*RAla6

    ".

    !& *$%R $) APP&A+S *$''" R&V&RS"(+& &RR$R "N N$ R%+"NG!A !& R&G"$NA+ R"A+ *$%R, (RAN*! 14, NAS%G(%, (AANGAS,A* D"!$% %R"S#"*"$N "N &N&RA"N"NG !& SP&*"A+

    PR$*&"NG )$R !& S&+&'&N $) &SA& $) PR$ R"$/A AN#!& *"V"+ A*"$N )$R ANN%+'&N $) "+& $) !& !&"RS AN# !"R#P&RS$NS "N $N& PR$*&"NG.24Petitio-er asserts tat 6ile te co=lai-t file >: reso-e-ts 6as catio-e as FuicialPartitio- 6it A--ul=e-t of itle a- Recover: of Possessio-,F te allegatio-s terei-so6 tat te cause of actio- is actuall: o-e for settle=e-t of estate of ecee-t Pero.*o-sieri-g tat settle=e-t of estate is a secial roceei-g cog-iza>le >: a ro>atecourt of li=ite Curisictio- 6ile Cuicial artitio- 6it a--ul=e-t of title a- recover:of ossessio- are ori-ar: civil actio-s cog-iza>le >: a court of ge-eral Curisictio-, tetrial court eEceee its Curisictio- i- e-tertai-i-g te latter 6ile it 6as sitti-g =erel: i-its ro>ate Curisictio-. is is i- vie6 of te roi>itio- fou- i- te Rules o- te Coi-er of secial civil actio-s a- ori-ar: civil actio-s.25 us, etitio-er argue tatte ruli-g of te trial court is voi a- as -o effect for avi-g >ee- re-ere i- 6itout Curisictio-.

    Petitio-er also reiterates te argu=e-ts raise >efore te aellate court tat si-ce tefi-i-g of forger: relates o-l: to te sig-ature of reso-e-ts a- -ot to teir coeirs6o asse-te to te co-ve:a-ce, te tra-sactio- soul >e co-siere vali as to te=.Petitio-er also e-ies te fi-i-gs of te courts >elo6 tat is are-ts are >uilers i- >afait for te: o-l: too ossessio- of te su>Cect roerties after te eEecutio- of tetra-sfer ocu=e-ts a- after te: ai te co-sieratio- o- te sale.

    e etitio- is >ereft of =erit.

    Petitio-er =ai-tai-s tat si-ce reso-e-tsB co=lai-t allege te follo6i-g causes of actio-, te sa=e is actuall: o-e for settle=e-t of estate a- -ot of Cuicial artitio-3+a6li>rar:of*RAla6

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    )"RS *A%S& $) A*"$N

    1. at Pero +. Ri@oza, )ilii-o a- resie-t of Nasug>u, (ata-gas at te ti=e of iseat, ie i-testate o- Nove=>er 1?, 1989. *o: of is eat certificate is ereto

    attace as A--eE FAFH

    2. at Plai-tiffs togeter 6it te #efe-a-ts e-u=erate fro= aragra 2A to 2 arete o-l: -o6- eirs of te a>ove=e-tio-e ecee-t. e lai-tiffs a- te #efe-a-tsRola-o, Rafael, A-to-io, A-gelito, +or-a all sur-a=e Ri@oza, a- ':r-a R. +i=o- or ':r-a R. Rogaor, &ifa-io (elo a- 'a. eresa R. #e=afeliE are te ecee-tBslegiti=ate cilre- 6it is first 6ife, 6ile (e-ita e-orio Rifioza, is te ecee-tBs6io6 a- (er-aette Ri@oza, te ecee-tBs augter 6it sai 6io6. As suc, sai arties are coo6-ers >: virtue of a- i-testate i-erita-ce fro= te ecee-t, of te roerties e-u=erate i- te succeei-g aragraH

    . at te ecee-t left te follo6i-g real roerties all locate i- Nasug>u,(ata-gas3+a6li>rar:of*RAla6

    E E E E

    1?. at te estate of ecee-t Pero +. Ri@oza as -o -o6- legal i-e>te-essH

    17. at sai estate re=ai-s u-ivie u to tis ate a- it 6ill >e to te >est i-terest of all eirs tat sa=e >e artitio-e Cuiciall:.2?

    Petitio-er is =istae-. "t is true tat so=e of reso-e-tsB causes of actio- ertai-i-g tote roerties left >ei- >: te ecee-t Pero, is -o6- eirs, a- te -ature a-eEte-t of teir i-terests tereo-, =a: fall u-er a- actio- for settle=e-t of estate.!o6ever, a co=lete reai-g of te co=lai-t 6oul reail: so6 tat, >ase o- te-ature of te suit, te allegatio-s terei-, a- te reliefs ra:e for, te actio- is clearl:o-e for Cuicial artitio- 6it a--ul=e-t of title a- recover: of ossessio-.

    Sectio- 1, Rule 74 of te Rules of *ourt rovies3+a6li>rar:of*RAla6

    R%+& 74Su==ar: Settle=e-t of &state

    Sectio- 1. &EtraCuicial settle=e-t >: agree=e-t >et6ee- eirs. L "f te ecee-t left -o6ill a- -o e>ts a- te eirs are all of age, or te =i-ors are rerese-te >: teir  Cuicial or legal rerese-tatives ul: autorize for te urose,te arties =a: 6itout

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    securi-g letters of a=i-istratio-, ivie te estate a=o-g te=selves as te: see fit >:=ea-s of a u>lic i-stru=e-t file i- te office of te register of ees, a- soul te:isagree, te: =a: o so i- a- ori-ar: actio- of artitio-. "f tere is o-l: o-e eir, e=a: aCuicate to i=self te e-tire estate >: =ea-s of a- affiavit fille i- te office of 

    te register of ees. e arties to a- eEtraCuicial settle=e-t, 6eter >: u>lici-stru=e-t or >: stiulatio- i- a e-i-g actio- for artitio-, or te sole eir 6oaCuicates te e-tire estate to i=self >: =ea-s of a- affiavit sall file, si=ulta-eousl:6it a- as a co-itio- recee-t to te fili-g of te u>lic i-stru=e-t, or stiulatio- i-te actio- for artitio-, or of te affiavit i- te office of te register of ees, a >o-6it te sai register of ees, i- a- a=ou-t euivale-t to te value of te erso-al roert: i-volve as certifie to u-er oat >: te arties co-cer-e a- co-itio-euo- te a:=e-t of a-: Cust clai= tat =a: >e file u-er sectio- 4 of tis rule. "t sall >e resu=e tat te ecee-t left -o e>ts if -o creitor files a etitio- for letters of a=i-istratio- 6iti- t6o ;2< :ears after te eat of te ecee-t.

    e fact of te eEtraCuicial settle=e-t or a=i-istratio- sall >e u>lise i- a-e6saer of ge-eral circulatio- i- te =a--er rovie i- te -eEt succeei-g sectio-H >ut -o eEtraCuicial settle=e-t sall >e >i-i-g uo- a-: erso- 6o as -ot articiateterei- or a -o -otice tereof.27

    "- tis relatio-, Sectio- 1, Rule ?9 of te Rules of *ourt rovies3+a6li>rar:of*RAla6

    Sectio- 1. *o=lai-t i- actio- for artitio- of real estate. L A erso- avi-g te rigt toco=el te artitio- of real estate =a: o so as rovie i- tis Rule, setti-g fort i- isco=lai-t te -ature a- eEte-t of is title a- a- aeuate escritio- of te real estateof 6ic artitio- is e=a-e a- Coi-i-g as efe-a-ts all oter erso-s i-tereste i-te roert:.28

    As ca- >e glea-e fro= te foregoi-g rovisio-s, te allegatio-s of reso-e-ts i- teir co=lai-t are >ut custo=ar:, i- fact, =a-ator:, to a co=lai-t for artitio- of real estate.Particularl:, te co=lai-t allege3 ;1< tat Pero ie i-testateH ;2< tat reso-e-ts,togeter 6it teir coeirs, are all of legal age, 6it te eEcetio- of o-e 6o isrerese-te >: a Cuicial rerese-tative ul: autorize for te uroseH ;< tat te eirse-u=erate are te o-l: -o6- eirs of PeroH ;4< tat tere is a- accou-t a-escritio- of all real roerties left >: PeroH ;5< tat PeroBs estate as -o -o6-i-e>te-essH a- ;?< tat reso-e-ts, as rigtful eirs to te ecee-tBs estate, ra: for te artitio- of te sa=e i- accora-ce 6it te la6s of i-testac:. "t is clear, terefore,tat >ase o- te allegatio-s of te co=lai-t, te case is o-e for Cuicial artitio-. atte co=lai-t allege causes of actio- ie-tif:i-g te eirs of te ecee-t, roerties of te estate, a- teir rigts tereto, oes -ot erforce =ae it a- actio- for settle=e-t of estate.

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    "t =ust >e recalle tat te ge-eral rule is tat 6e- a erso- ies i-testate, or, if testate,faile to -a=e a- eEecutor i- is 6ill or te eEecutor so -a=e is i-co=ete-t, or refuseste trust, or. fails to fur-is te >o- reuire >: te Rules of *ourt, te- te ecee-tBs

    estate sall >e Cuiciall: a=i-istere a- te co=ete-t court sall aoi-t a ualifiea=i-istrator i- te orer esta>lise i- Sectio- ? of Rule 78 of te Rules of *ourt.29 A-eEcetio- to tis rule, o6ever, is fou- i- te aforeuote Sectio- 1 of Rule 74 6erei-te eirs of a ecee-t, 6o left -o 6ill a- -o e>ts ue fro= is estate, =a: ivie teestate eiter eEtraCuiciall: or i- a- ori-ar: actio- for artitio- 6itout su>=itti-g tesa=e for Cuicial a=i-istratio- -or al:i-g for te aoi-t=e-t of a- a=i-istrator >:te court.0 e reaso- is tat 6ere te ecease ies 6itout e-i-g o>ligatio-s, tereis -o -ecessit: for te aoi-t=e-t of a- a=i-istrator to a=i-ister te estate for te=a- to erive te real o6-ers of teir ossessio- to 6ic te: are i==eiatel:e-title.1rearcla6

    "- tis case, it 6as eEressl: allege i- te co=lai-t, a- 6as -ot isute, tat Peroie 6itout a 6ill, leavi-g is estate 6itout a-: e-i-g o>ligatio-s. us, co-trar: to etitio-erB.s co-te-tio-, reso-e-ts 6ere u-er -o legal o>ligatio- to su>=it =e su>Cect roerties of te estate to a secial roceei-g for settle=e-t of i-testate estate, a- are,i- fact, e-courage to ave te sa=e artitio-e, Cuiciall: or eEtraCuiciall:, >: Pereira v.*ourt of Aeals32rearcla6

    Sectio- 1, Rule 74 of te Revise Rules of *ourt, o6ever, oes -ot reclue te eirsfro= i-stituti-g a=i-istratio- roceei-gs, eve- if te estate as -oF e>ts or 

    o>ligatio-s, if te: o -ot esire to resort for goo reaso-s to a- ori-ar: actio- for  artitio-. Dile Sectio- 1 allo6s te eirs to ivie te estate a=o-g te=selves as te:=a: see fit, or to resort to a- ori-ar: actio- for artitio-, te sai rovisio- oes -otco=el te= to o so if te: ave goo reaso-s to tae a iffere-t course of actio-. "tsoul >e -ote tat recourse to a- a=i-istratio- roceei-g eve- if te estate as -oe>ts is sa-ctio-e o-l: if te eirs ave goo reaso-s for -ot resorti-g to a- actio- for  artitio-. DereB artitio- is ossi>le, eiter i- or out of court, te estate soul -ot >e >ure-e 6it a- a=i-istratio- roceei-g 6itout goo a- co=elli-g reaso-s.

    us, it as >ee- reeatel: el tat 6e- a erso- ies 6itout leavi-g e-i-go>ligatio-s to >e ai, is eirs, 6eter of age or -ot, are -ot >ou- to su>=it te roert: to a Cuicial a=i-istratio-, 6ic is al6a:s lo-g a- costl:, or to al: for teaoi-t=e-t of a- a=i-istrator >: te *ourt. "t as >ee- u-ifor=l: el tat i- suc casete Cuicial a=i-istratio- a- te aoi-t=e-t of a- a=i-istrator are suerfluous a-u--ecessar: roceei-gs.

    us, reso-e-ts co==itte -o error i- fili-g a- actio- for Cuicial artitio- i-stea of a

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    secial roceei-g for te settle=e-t of estate as te sa=e is eEressl: er=itte >: la6.at te co=lai-t co-tai-e allegatio-s i-ere-t i- a- actio- for settle=e-t of estateoes -ot =ea- tat tere 6as a roi>ite Coi-er of causes of actio- for uestio-s as tote estateBs roerties as 6ell as a eter=i-atio- of te eirs, teir status as suc, a- te

    -ature a- eEte-t of teir titles to te estate, =a: also >e roerl: ve-tilate i- artitio- roceei-gs alo-e.4 "- fact, a co=lete i-ve-tor: of te estate =a: lie6ise >e o-euri-g te artitio- roceei-gs, eseciall: si-ce te estate as -o e>ts.5 "-ee, 6erete =ore eEeitious re=e: of artitio- is availa>le to te eirs, te- te: =a: -ot >eco=elle to su>=it to a=i-istratio- roceei-gs, ise-si-g of te riss of ela: a-of te roerties >ei-g issiate.?rearcla6

    'oreover, te fact tat reso-e-tsB co=lai-t alMo ra:e for te a--ul=e-t of title a-recover: of ossessio- oes -ot stri te trial court off of its Curisictio- to ear a-ecie te case. Asi-g for te a--ul=e-t of certai- tra-sfers of roert: coul ver: 6ell

     >e acieve i- a- actio- for artitio-,7as ca- >e see- i- cases 6ere courts eter=i-ete artiesB rigts arisi-g fro= co=lai-ts asi-g -ot o-l: for te artitio- of estates >utalso for te a--ul=e-t of titles a- recover: of o6-ersi a- ossessio- of roert:.8"- fact, i- (aga:as v. (aga:as,9 6erei- a co=lai-t for a--ul=e-t of sale a- artitio-6as is=isse >: te trial court ue to te i=roriet: of a- actio- for a--ul=e-t as itco-stitute a collateral attac o- te certificates of title of te reso-e-ts terei-, tis*ourt fou- te is=issal to >e i=roer i- te follo6i-g =a--er3+a6li>rar:of*RAla6

    "- +ac>a:a- v. Sa=o:, r. ;+ac>a:a-< 6ic is a- actio- for artitio- re=ise o- teeEiste-ce or -o-eEiste-ce of coo6-ersi >et6ee- te arties, te *ourt categoricall:

     ro-ou-ce tat a resolutio- o- te issue of o6-ersi oes -ot su>Cect te orre-s titleissue over te isute realties to a collateral attac. "t =ust >e >or-e i- =i- tat 6atca--ot >e collaterall: attace is te certificate of title a- -ot te title itself. As ro-ou-ce i-+ac>a:a-3+a6li>rar:of*RAla6

    ere is -o isute tat a orre-s certificate of title ca--ot >e collaterall: attace, >uttat rule is -ot =aterial to te case at >ar. Dat ca--ot >e collaterall: attace is tecertificate of title a- -ot te title itself. e certificate referre to is tat ocu=e-t issue >: te Register of #ees -o6- as te *. "- co-trast, te title referre to >: la6 =ea-so6-ersi 6ic is, =ore ofte- ta- -ot, rerese-te >: tat ocu=e-t. Petitio-er 

    aare-tl: co-fuses title 6it te certificate of title. itle as a co-cet of o6-ersisoul -ot >e co-fuse 6it te certificate of title as evie-ce of suc o6-ersialtoug >ot are i-terca-gea>l: use. ;&=ases sulie<

    us, te R* erro-eousl: is=isse etitio-erBs etitio- for a--ul=e-t of sale o- tegrou- tat it co-stitute a collateral attac si-ce se 6as actuall: assaili-g Rogelio a-$rla-oBs title to te su>Cect la-s a- -ot a-: orre-s certificate of title over te sa=e.

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    "-ee, a- actio- for artitio- oes -ot reclue te settle=e-t of te issue of o6-ersi."- fact, te eter=i-atio- as to te eEiste-ce of te sa=e is -ecessar: i- te resolutio- of a- actio- for artitio-, as el i- 'u-icialit: of (i@a- v. Garcia340rearcla6

    e first ase of a artitio- a-Ior accou-ti-g suit is tae- u 6it te eter=i-atio- of 6eter or -ot a coo6-ersi i- fact eEists, a- a artitio- is roer ;i.e., -ot oter6iselegall: roscri>e< a- =a: >e =ae >: volu-tar: agree=e-t of all te arties i-terestei- te roert:. is ase =a: e- 6it a eclaratio- tat lai-tiff is -ot e-title to avea artitio- eiter >ecause a coo6-ersi oes -ot eEist, or artitio- is legall: roi>ite."t =a: e-, o- te oter a-, 6it a- aCug=e-t tat a coo6-ersi oes i- truteEist, artitio- is roer i- te re=ises a- a- accou-ti-g of re-ts a- rofits receive >: te efe-a-t fro= te real estate i- uestio- is i- orer, E E E

    e seco- ase co==e-ces 6e- it aears tat Fte arties are u-a>le to agree uo-te artitio-F irecte >: te court. "- tat eve-tO,J artitio- sall >e o-e for te arties >: te OcJourt 6it te assista-ce of -ot =ore ta- tree ;< co==issio-ers. is seco-stage =a: 6ell also eal 6it te re-itio- of te accou-ti-g itself a- its aroval >: teOcCourt after te arties ave >ee- accore oortu-it: to >e ear tereo-, a- a-a6ar for te recover: >: te art: or arties tereto e-title of teir Cust sare i- tere-ts a- rofits of te real estate i- uestio-, E E E.41rearcla6

    A- actio- for artitio-, terefore, is re=ise o- te eEiste-ce or -o-eEiste-ce of coo6-ersi >et6ee- te arties.42 %-less a- u-til te issue of coo6-ersi isefi-itivel: resolve, it 6oul >e re=ature to effect a artitio- of a- estate.4rearcla6

    "- vie6 of te foregoi-g, etitio-erBs argu=e-t tat te trial court acte 6itout Curisictio- i- e-tertai-i-g te actio- of settle=e-t of estate a- a--ul=e-t of title i- asi-gle roceei-g is clearl: erro-eous for te i-sta-t co=lai-t is recisel: o-e for  Cuicial artitio- 6it a--ul=e-t of title a- recover: of ossessio-, file 6iti- teco-fi-es of alica>le la6 a- Curisrue-ce. %-er Sectio- 144 of Reu>lic Act No.7?91 ;RA 7?91a-sa (ig. 129, te R* sall eEercise eEclusiveorigi-al Curisictio- over all civil actio-s i- 6ic te su>Cect of te litigatio- is i-caa>leof ecu-iar: esti=atio-. Si-ce te actio- erei- 6as -ot =erel: for artitio- a- recover:of o6-ersi >ut also for a--ul=e-t of title a- ocu=e-ts, te actio- is i-caa>le of 

     ecu-iar: esti=atio- a- tus cog-iza>le >: te R*. !e-ce, co-sieri-g tat te trialcourt clearl: a Curisictio- i- re-eri-g its ecisio-, te i-sta-t etitio- for a--ul=e-tSf Cug=e-t =ust -ecessaril: fail.

     Note tat eve- if te i-sta-t actio- 6as o-e for a--ul=e-t of title alo-e, 6itout te ra:er for Cuicial artitio-, te reuire=e-t of i-stituti-g a searate secial roceei-gfor te eter=i-atio- of te status a- rigts of te reso-e-ts as utative eirs =a: >e

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    ise-se 6it, i- ligt of te fact tat te arties a volu-taril: su>=itte te issue tote trial court a- a alrea: rese-te evie-ce regari-g te issue of eirsi.4? "-Portugal v. Portugal(eltra-,47 te *ourt eElai-e3+a6li>rar:of*RAla6

    "- te case at >ar, reso-e-t, >elievi-g rigtl: or 6ro-gl: tat se 6as te sole eir toPortugalBs estate, eEecute o- )e>ruar: 15, 1988 te uestio-e Affiavit of ACuicatio-u-er te seco- se-te-ce of Rule 74, Sectio- 1 of te Revise Rules of *ourt. Sai ruleis a- eEcetio- to te ge-eral rule tat 6e- a erso- ies leavi-g a roert:, it soul >e Cuiciall: a=i-istere a- te co=ete-t court soul aoi-t a ualifie a=i-istrator,i- te orer esta>lise i- Sec. ?, Rule 78 i- case te ecease left -o 6ill, or i- case ei, e faile to -a=e a- eEecutor terei-.

    E E E E

    "t aeari-g, o6ever, tat i- te rese-t case te o-l: roert: of te i-testate estate of Portugal is te *alooca- arcel of la-, to still su>Cect it, u-er te circu=sta-ces of tecase, to a secial roceei-g 6ic coul >e lo-g, e-ce, -ot eEeitious, Cust to esta>liste status of etitio-ers as eirs is -ot o-l: i=racticalH it is >ure-so=e to te estate 6itte costs a- eEe-ses of a- a=i-istratio- roceei-g. A- it is suerfluous i- ligt of te fact tat te arties to te civil case su>Cect of te rese-t case, coul a- aalrea: i- fact rese-te evie-ce >efore te trial court 6ic assu=e Curisictio- over te case uo- te issues it efi-e uri-g retrial.

    "- fi-e, u-er te circu=sta-ces of te rese-t case, tere >ei-g -o co=elli-g reaso- to

    still su>Cect PortugalBs estate to a=i-istratio- roceei-gs si-ce a eter=i-atio- of  etitio-ersB status as eirs coul >e acieve i- te civil case file >: etitio-ers, te trialcourt soul rocee to evaluate te evie-ce rese-te >: te arties uri-g te trial a-re-er a ecisio- tereo- uo- te issues it efi-e uri-g retrial, E E E.48

    us, i- vie6 of te clarit: of reso-e-tsB co=lai-t a- te causes of actio- allegeterei-, as 6ell as te fact tat te trial court, i- arrivi-g at its ecisio-, gave etitio-er =ore ta- a=le oortu-it: to ava-ce is clai=s, etitio-er ca--ot -o6 >e er=itte toallege lac of Curisictio- Cust >ecause te Cug=e-t re-ere 6as averse to te=. oreeat, te actio- file erei- is o-e for Cuicial artitio- a- -ot for settle=e-t of 

    i-testate estate. *o-seue-tl:, tat reso-e-ts also ra:e for te a--ul=e-t of title a-recover: of ossessio- i- te sa=e roceei-g oes -ot stri te court off of its Curisictio- for asi-g for te a--ul=e-t of certai- tra-sfers of roert: coul ver: 6ell >e acieve i- a- actio- for artitio-.

    As for etitio-erBs co-te-tio- tat te sale =ust >e co-siere vali as to te eirs 6oasse-te to te co-ve:a-ce as 6ell as teir allegatio- of goo fait, tis *ourt oes -ot

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    fi- a-: *o=elli-g reaso- to eviate fro= te ruli-g of te aellate court. Assufficie-tl: fou- >: >ot courts >elo6, te aute-ticit: a- ue eEecutio- of teocu=e-ts o- 6ic etitio-erBs clai=s are >ase 6ere i-aeuatel: rove-. e: 6ereu-ate, forge, a- ac-o6lege >efore a -otar: u>lic 6o 6as -ot co==issio-e as

    suc o- te ate te: 6ere eEecute. e: 6ere -ever rese-te to te Register of #eesfor registratio-. Neiter 6ere te suose -otaries a- >u:ers of te su>Cect roerties rese-te as 6it-esses.

    Dile it =a: >e argue tat (e-ita, o-e of te coeirs to te estate, actuall:ac-o6lege te sale of te resort, te circu=sta-ces surrou-i-g te sa=e =ilitateagai-st te fact of its occurre-ce. Not o-l: 6as te #ee of Sale suosel: eEecute >:(e-ita u-ate a- u-sig-e >: Pero, >ut te ocu=e-t se rese-te urortel:evie-ci-g er receit of er sare i- te sale, i -ot refer to a-: sort of sale >ut to a revious loa- o>tai-e >: Pero a- (e-ita fro= a >a-.

    'oreover, cree-ce =ust >e give- o- te aellate courtBs o>servatio-s as to etitio-ersBactuatio-s i-sofar as te tra-sactio-s allege erei- are co-cer-e. )irst, te: 6eresee=i-gl: u-certai- as to te -u=>er a-Ior ie-tit: of te roerties >ougt >: te=.49"- teir A-s6er, te: gave te i=ressio- tatF te: >ougt >ot te resort a- te fa=il:o=e a- :et, uri-g trial, )ra-cisco Villafria clai=e te: o-l: >ougt te resort. "-fact, it 6as o-l: te- tat te: rese-te te su>Cect &Etrauicial Settle=e-t a- #eeof Sale.50Seco-, te: -ever rese-te a-: oter ocu=e-t 6ic 6oul evie-ce teir actual a:=e-t of co-sieratio- to te selli-g eirs.51ir, i- site of te >lata-t legali-fir=ities of te su>Cect ocu=e-ts of co-ve:a-ce, etitio-ers still too ossessio- of te roerties, e=olise several cottages, a- i-trouce er=a-e-t i=rove=e-ts

    tereo-.

    "- all, te *ourt agrees 6it te aellate court tat etitio-ers faile to aeuatel:su>sta-tiate, 6it co-vi-ci-g, crei>le a- i-ee-e-tl: verifia>le roof, teir clai=tat te: a, i- fact, urcase te su>Cect roerties. e circu=sta-ces surrou-i-gte urorte tra-sfers cast ou>t o- 6eter te: actuall: too lace. "- su>sta-tiati-gteir clai=, etitio-ers relie solel: o- te &Etrauicial Settle=e-t a- #ee of Sale,6o utterl: faile to rove teir aute-ticit: a- ue eEecutio-. e: ca--ot, terefore, >e er=itte to clai= a>solute o6-ersi of te su>Cect la-s >ase o- te sa=e.

     Neiter ca- te: >e co-siere as i--oce-t urcasers for value a- >uilers i- goofait. Goo fait co-sists i- te >elief of te >uiler tat te la- te latter is >uili-g o-is o-eBs o6- 6itout -o6lege of a-: efect or fla6 i- o-eBs title.52 !o6ever, i- vie6of te =a-ifest efects i- te i-stru=e-ts co-ve:i-g teir titles, etitio-ers soul ave >ee- lace o- guar. et, te: still e=olise several cottages a- co-structei=rove=e-t o- te roerties. us, teir clai= of goo fait ca--ot >e give- cree-ce.

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    "-ee, a Cug=e-t 6ic as acuire fi-alit: >eco=es i==uta>le a- u-altera>le,e-ce, =a: -o lo-ger >e =oifie i- a-: resect eEcet to correct clerical errors or =istaes, all te issues >et6ee- te arties >ei-g ee=e resolve a-. lai to rest.5 "t isa fu-a=e-tal ri-cile i- our Cuicial s:ste= a- esse-tial to a- effective a- efficie-t

    a=i-istratio- of Custice tat, o-ce a Cug=e-t as >eco=e fi-al, te 6i--i-g art: >e,-ot troug a =ere su>terfuge, erive of te fruits of te verict.54 &Ecetio-s to tei==uta>ilit: of fi-al Cug=e-t are allo6e o-l: u-er te =ost eEtraori-ar: of circu=sta-ces.55 et, 6e- etitio-er is give- =ore ta- a=le oortu-it: to >e ear,u->rile access to te aellate courts, as 6ell as u->iase Cug=e-ts re-ere after aco-sieratio- of evie-ce rese-te >: te arties, as i- te case at a-, te *ourt sallrefrai- fro= reversi-g te ruli-gs of te courts >elo6 i- te a>se-ce of a-: so6i-g tatte sa=e 6ere re-ere 6it frau or lac of Curisictio-.

    D!&R&)$R&, re=ises co-siere, te i-sta-t etitio- is #&N". e #ecisio- a-

    Resolutio-, ate 'arc 1, 2009 a- Aril 2, 2009, resectivel:, of te *ourt Aealsi- *AG.R. SP No. 10747, 6ic affir=e te ug=e-t ate $cto>er 1, 2001 of teRegio-al rial *ourt of Nasug>u, (ata-gas, (ra-c 14, i- *ivil *ase No. 217, i-sofar asit co-cer-s te resort covere >: ra-sfer *ertificates of itle No. 5154 a- No. 5155,a- fa=il: o=e covere >: * No. 40807 a- 40808, are A))"R'.

    S$ $R#&R.crala6la6li>rar:

    Velasco, r., ;*airerso-usuillo v. Ss. Galvez, G.R. No. 204029, u-e 4, 2014

    Reu>lic of te Pilii-esS%PR&'& *$%R

    'a-ila

    !"R# #"V"S"$N

    G.R. No. 204029 u-e 4, 2014

    AV&+"NA A(AR"&N$S R&(%SQ%"++$ Osu>stitute >: er eirs, eEcet &=eli-a

    R. GualvezJ a- SA+VA#$R A. $R$S*$, Petitio-ers,vs.SPS. #$'"NG$ a- &'&+"N#A R&(%SQ%"++$ G%A+V&/ a- te *"ASS&SS$R $) +&GA/P" *",Reso-e-ts.

    # & * " S " $ N

    V&+AS*$, R., .3

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    (efore %s is a Petitio- for Revie6 o- *ertiorari u-er Rule 45 assaili-g te #ecisio-1a- Resolutio-2 ate 'arc 0, 2012 a- Sete=>er 25, 2012, resectivel:, of te*ourt of Aeals ;*A< i- *AG.R. *V No. 905, 6ic reverse a- set asie te#ecisio- ate a-uar: 20, 2009 of te Regio-al rial *ourt ;R*e su==arize as follo6s3

    $- $cto>er 2?, 2004, etitio-ers Aveli-a A>arie-tos Re>usuillo ;Aveli-a< a- Salvaor $rosco ;Salvaor< file a *o=lai-t for a--ul=e-t a- revocatio- of a- Affiavit of SelfACuicatio- ate #ece=>er 4, 2001 a- a #ee of A>solute Sale ate )e>ruar:?, 2002 >efore te court a uo. "- it, etitio-ers allege tat Aveli-a 6as o-e of tecilre- of &ulalio A>arie-tos ;&ulalio< a- Victoria Villareal ;Victoria: is 6ife Victoria, siE legiti=ate cilre-, a- o-eillegiti=ate cil, -a=el:3 ;1< Aveli-a A>arie-tosRe>usuillo, etitio-er i- tis caseH ;2<

    )ortu-ata A>arie-tos$rosco, te =oter of etitio-er SalvaorH ;< Rosali-o A>arie-tosH;4< ua- A>arie-tosH ;5< )elicia-o A>arie-tosH ;?< A>raa= A>arie-tosH a- ;7< *arlosA>arie-tos. !is 6ife Victoria eve-tuall: ie i-testate o- u-e 0, 198.

    $- is eat, &ulalio left >ei- a- u-title arcel of la- i- +egazi *it: co-sisti-g of t6o tousa- eigt u-re siEt:-i-e;2,8?9< suare =eters, =ore or less, 6ic 6ascovere >: aE #eclaratio- ARP No. ;#< 0141.

    "- 2001, Aveli-a 6as suosel: =ae to sig- t6o ;2< ocu=e-ts >: er augter &=eli-a Re>usuilloGualvez ;&=eli-a< a- er so-i-la6 #o=i-go Gualvez;#o=i-goCect roert:. Paragra 9 of teir A-s6er reas3

    So=eti=e i- te :ear 2001, Oetitio-erJ Aveli-a togeter 6it te oter eirs of &ulalioA>arie-tos >rougt out te iea to Oreso-e-tJ &=eli-a Re>usuilloGualvez to avete roert: escri>e i- aragra 8 of te co=lai-t registere u-er te orre-sS:ste= of Registratio-. o facilitate te titli-g of te roert:, so tat te sa=e coul >eattractive to rosective >u:ers, it 6as agree tat te roert:s taE eclaratio- coul >etra-sferre to Oreso-e-tsJ Souses O&=eli-aJ R. Gualvez a- #o=i-go Gualvez 6o6ill se- all te cost of titli-g su>Cect to rei=>urse=e-t >: all oter eirs i- case te roert: is solH at it 6as agree tat all te eirs 6ill >e give- teir correso-i-g

    http://www.lawphil.net/judjuris/juri2014/jun2014/gr_204029_2014.html#fnt1http://www.lawphil.net/judjuris/juri2014/jun2014/gr_204029_2014.html#fnt2http://www.lawphil.net/judjuris/juri2014/jun2014/gr_204029_2014.html#fnt2http://www.lawphil.net/judjuris/juri2014/jun2014/gr_204029_2014.html#fnt1

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    sares o- te roert:H at ursua-t to sai urose Aveli-a A>arie-tosRe>usuillo6it te -o6lege a- co-se-t of te oter eirs sig-e a- eEecute a- Affiavit of SelfACuicatio- a- a #ee of A>solute Sale i- favor of Oreso-e-tsJ Gualvez. "- fact,Oetitio-erJ Aveli-a Re>usuillo 6as give- a- ava-ce su= of )") !$%SAN#

    P&S$S ;P50,000.00< >: Oreso-e-tJ souses a- all te eli-ue-t taEes ai >:Oreso-e-tsJ.

    After trial, te R* re-ere its #ecisio- ate a-uar: 20, 2009 a--ulli-g te Affiavitof SelfACuicatio- a- te #ee of A>solute Sale eEecute >: Aveli-a o- te grou-stat ;1< 6it regar to te Affiavit of SelfACuicatio-, se 6as -ot te sole eir of er  are-ts a- 6as -ot terefore solel: e-title to teir estateH a- ;2< i- te case of te#ee of A>solute Sale, Aveli-a i -ot reall: i-te- to sell er sare i- te roert: as it6as o-l: eEecute to facilitate te titli-g of suc roert:. e isositive ortio- of teR* #ecisio- reas3

    D!&R&)$R&, re=ises co-siere, Cug=e-t is ere>: re-ere, as follo6s31. e su>Cect Affiavit of SelfACuicatio- of te &state of te #ecease Souses&ulalio A>arie-tos a- Victoria Villareal, ate #ece=>er 4, 2001 as 6ell as te su>Cect#ee of A>solute Sale, -otarize o- )e>ruar: ?, 2002, coveri-g te roert: escri>e i- ar. 8 of te A=e-e *o=lai-t are ere>: orere ANN%++H

    2. at efe-a-t *it: Assessors $fficer of +egazi *it: is ere>: orere to *AN*&+te aE #eclaratio- i- te -a=e of rivate Oreso-e-tsJ souses Gualvez u-er ARP No.414 a- to R&"NSA& te aE #eclaratio- u-er ARP No. 0141 i- te -a=e of &ulalio A>arie-tosH

    . (: 6a: of restitutio-, Oetitio-erJ Aveli-a A>arie-tos Re>usuillo is ere>: orere toretur- or refu- to Oreso-e-tsJ souses #o=i-go Gualvez a- &=eli-a Gualvez, teP50,000.00 give- >: te latter souses to te for=er.4

    Assaili-g te trial courts ecisio-, reso-e-ts i-terose a- aeal 6it te *A argui-gtat te #ee of Sale ca--ot >e a--ulle >ei-g a u>lic ocu=e-t tat as for its o>Cectte creatio- a- tra-s=issio- of real rigts over te i==ova>le su>Cect roert:. e facttat Aveli-as testi=o-: 6as -ot offere i- evie-ce, so reso-e-ts argue, te sig-atureo- te averte ee re=ai-s as co-crete roof of er agree=e-t to its ter=s. +astl:,reso-e-ts co-te-e tat te *o=lai-t file >: etitio-ers Aveli-a a- Salvaor  >efore te R* is -ot te roer re=e: rovie >: la6 for tose co=ulsor: eirs

    u-la6full: erive of teir i-erita-ce.

    Pe-i-g te resolutio- of reso-e-ts aeal, Aveli-a ie i-testate o- Sete=>er 1,2009 leavi-g >ei- several livi-g eirs5 i-clui-g reso-e-t &=eli-a.

    "- its #ecisio- ate 'arc 0, 2012, te aellate court gra-te te aeal a- reversea- set asie te #ecisio- of te R*. e *A el tat te R* erre i- a--ulli-g teAffiavit of SelfACuicatio- si=l: o- etitio-ers allegatio- of te eEiste-ce of te

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    eirs of &ulalio, co-sieri-g tat issues o- eirsi =ust >e =ae i- a=i-istratio- or i-testate roceei-gs, -ot i- a- ori-ar: civil actio-. )urter, te aellate court o>servetat te #ee of A>solute Sale ca--ot >e -ullifie as it is a -otarize ocu=e-t tat as i-its favor te resu=tio- of regularit: a- is e-title to full fait a- creit uo- its face.

    Aggrieve >: te *As #ecisio-, etitio-er Aveli-a, as su>stitute >: er eirs eEcetreso-e-t &=eli-a, a- etitio-er Salvaor are -o6 >efore tis *ourt ascri>i-greversi>le error o- te art of te aellate court.

    De fi- =erit i- te i-sta-t etitio-.

    "t as i-ee >ee- rule tat te eclaratio- of eirsi =ust >e =ae i- a secial roceei-g, -ot i- a- i-ee-e-t civil actio-. !o6ever, tis *ourt a lie6ise el tatrecourse to a=i-istratio- roceei-gs to eter=i-e 6o eirs are is sa-ctio-e o-l: if tere is a goo a- co=elli-g reaso- for suc recourse.? !e-ce, te *ourt a allo6eeEcetio-s to te rule reuiri-g a=i-istratio- roceei-gs as 6e- te arties i- te

    civil case alrea: rese-te teir evie-ce regari-g te issue of eirsi, a- te R*a co-seue-tl: re-ere Cug=e-t uo- te issues it efi-e uri-g te retrial.7  "-Portugal v. Portugal(eltra-,8 tis *ourt el3

    "- te case at >ar, reso-e-t, >elievi-g rigtl: or 6ro-gl: tat se 6as te sole eir toPortugals estate, eEecute o- )e>ruar: 15, 1988 te uestio-e Affiavit of ACuicatio-u-er te seco- se-te-ce of Rule 74, Sectio- 1 of te Revise Rules of *ourt. Sai ruleis a- eEcetio- to te ge-eral rule tat 6e- a erso- ies leavi-g a roert:, it soul >e Cuiciall: a=i-istere a- te co=ete-t court soul aoi-t a ualifie a=i-istrator,i- te orer esta>lise i- Sec. ?, Rule 78 i- case te ecease left -o 6ill, or i- case ei, e faile to -a=e a- eEecutor terei-.

    Petitio-ers clai=, o6ever, to >e te eEclusive eirs of Portugal. A ro>ate or i-testatecourt, -o ou>t, as Curisictio- to eclare 6o are te eirs of a ecease.

    "t aeari-g, o6ever, tat i- te rese-t case te o-l: roert: of te i-testate estate of Portugal is te *alooca- arcel of la- to still su>Cect it, u-er te circu=sta-ces of tecase, to a secial roceei-g 6ic coul >e lo-g, e-ce, -ot eEeitious, Cust to esta>liste status of etitio-ers as eirs is -ot o-l: i=racticalH it is >ure-so=e to te estate 6itte costs a- eEe-ses of a- a=i-istratio- roceei-g. A- it is suerfluous i- ligt of te fact tat te arties to te civil case su>Cect of te rese-t case, coul a- aalrea: i- fact rese-te evie-ce >efore te trial court 6ic assu=e Curisictio- over 

    te case uo- te issues it efi-e uri-g retrial.

    "- fi-e, u-er te circu=sta-ces of te rese-t case, tere >ei-g -o co=elli-g reaso- tostill su>Cect Portugals estate to a=i-istratio- roceei-gs si-ce a eter=i-atio- of  etitio-ers status as eirs coul >e acieve i- te civil case file >: etitio-ers, te trialcourt soul rocee to evaluate te evie-ce rese-te >: te arties uri-g te trial a-re-er a ecisio- tereo- uo- te issues it efi-e uri-g retrial E E E. ;e=asissulie

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    Si=ilar to Portugal, i- te rese-t case, tere aears to >e o-l: o-e arcel of la- >ei-gclai=e >: te co-te-i-g arties as te i-erita-ce fro= &ulalio. "t 6oul >e =ore ractical, as Portugal teaces, to ise-se 6it a searate secial roceei-g for teeter=i-atio- of te status of etitio-er Aveli-a as sole eir of &ulalio, eseciall: i- ligt

    of te fact tat reso-e-ts souses Gualvez a=itte i- court tat te: -e6 for a facttat etitio-er Aveli-a 6as -ot te sole eir of &ulalio a- tat etitio-er Salvaor 6aso-e of te oter livi-g eirs 6it rigts over te su>Cect la-. As co-fir=e >: te R* i-its #ecisio-, reso-e-ts ave stiulate a- ave tere>: a=itte te veracit: of tefollo6i-g facts uri-g te retrial3

    "V %N*$NR$V&R )A*S3 ;(ase o- te stiulatio- of facts i- te Prerial$rer<

    A. E E E

    (. OPetitio-ersJ a- rivate Oreso-e-tsJ souses Gualvez a=itte te follo6i-g facts3

    1. "e-tit: of te artiesH

    2. *aacit: of te Oetitio-ersJ a- rivate Oreso-e-tsJ to sue a- >e sueH

    . OPetitio-erJ Aveli-a A>arie-tosRe>usuilllo is -ot te o-l: survivi-g eir of eceasesouses &ulalio a- Victoria A>arie-tosH

    4. Petitio-er Salvaor $rosco is a coo6-erIossessor of a ortio- of te su>Cect roert:H

    5. )ortu-ata A>arie-tos$rosco is te sister of Aveli-a A>arie-tosH

    ?. OReso-e-tJ &=eli-a Re>usuilloGualves is a augter of Oetitio-erJ Aveli-a A.Re>usuilloH

    7. OPetitio-erJ Aveli-a Re>usuillo 6as >or- o- Nov. 10, 192H

    8. e eEiste-ce of Affiavit of SelfACuicatio- of &state of te #ecease a- #ee of A>solute Sale eEecute >: Oetitio-erJ Aveli-a A. Re>usuillo o- te su>Cect roert:.9;e=asis sulie<

    "- ligt of te a=issio- of reso-e-ts souses Gualvez, it is 6it =ore reaso- tat aresort to secial roceei-g 6ill >e >ut a- u--ecessar: suerfluit:. Accori-gl:, te courta uo a roerl: re-ere Cug=e-t o- te valiit: of te Affiavit of SelfACuicatio- eEecute >: Aveli-a. As oi-te out >: te trial court, a- Affiavit of SelfACuicatio- is o-l: roer 6e- te affia-t is te sole eir of te ecee-t. e seco-se-te-ce of Sectio- 1, Rule 74 of te Rules of *ourt is ate-tl: clear tat selfaCuicatio- is o-l: 6arra-te 6e- tere is o-l: o-e eir3

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    Sectio- 1. &EtraCuicial settle=e-t >: agree=e-t >et6ee- eirs. E E E "f tere is o-l:o-e eir, e =a: aCuicate to i=self te e-tire estate >: =ea-s of a- affiavit file i-te office of te register of ees. E E E ;e=asis sulie<

    As a=itte >: reso-e-ts, Aveli-a 6as -ot te sole eir of &ulalio. "- fact, as a=itte >: reso-e-ts, etitio-er Salvaor is o-e of te coeirs >: rigt of rerese-tatio- of is=oter. Ditout a ou>t, Aveli-a a erCure erself 6e- se eclare i- te affiavittat se is Fte o-l: augter a- sole eir of souses &%+A+"$ A(AR"&N$S AN#V"*$R"A V"++AR&A+.F10 e falsit: of tis clai= re-ers er act of aCuicati-g toerself te i-erita-ce left >: er fater i-vali. e R* i -ot, terefore, err i-gra-ti-g Aveli-as ra:er to eclare te affiavit -ull a- voi a- so correct te 6ro-gse as co==itte.

    "- lie =a--er, te #ee of A>solute Sale eEecute >: Aveli-a i- favor of reso-e-ts6as correctl: -ullifie a- voie >: te R*. Aveli-a 6as -ot i- te rigt ositio- to

    sell a- tra-sfer te a>solute o6-ersi of te su>Cect roert: to reso-e-ts. As se6as -ot te sole eir of &ulalio a- er Affiavit of SelfACuicatio- is voi, te su>Cect roert: is still su>Cect to artitio-. Aveli-a, i- fi-e, i -ot ave te a>solute o6-ersiof te su>Cect roert: >ut o-l: a- aliuot ortio-. Dat se coul ave tra-sferre toreso-e-ts 6as o-l: te o6-ersi of suc aliuot ortio-. "t is aare-t fro= tea=issio-s of reso-e-ts a- te recors of tis case tat Aveli-a a -o i-te-tio- totra-sfer te o6-ersi, of 6atever eEte-t, over te roert: to reso-e-ts. !e-ce, te#ee of A>solute Sale is -oti-g =ore ta- a si=ulate co-tract.

    e *ivil *oe rovies3

    Art. 145. Si=ulatio- of a co-tract =a: >e a>solute or relative. e for=er taes lace6e- te arties o -ot i-te- to >e >ou- at allH te latter, 6e- te arties co-ceal teir true agree=e-t. ;e=asis sulie<

    Art. 14?. A- a>solutel: si=ulate or fictitious co-tract is voi. A relative si=ulatio-,6e- it oes -ot reCuice a tir erso- a- is -ot i-te-e for a-: urose co-trar: tola6, =orals, goo custo=s, u>lic orer or u>lic olic: >i-s te arties to teir realagree=e-t.

    "- !eirs of Policro-io %reta Sr. v. !eirs of +i>erato %reta,11 tis *ourt eElai-e teco-cet of te si=ulatio- of co-tracts3

    "- a>solute si=ulatio-, tere is a colora>le co-tract >ut it as -o su>sta-ce as te artiesave -o i-te-tio- to >e >ou- >: it. e =ai- caracteristic of a- a>solute si=ulatio- istat te aare-t co-tract is -ot reall: esire or i-te-e to rouce legal effect or i-a-: 6a: alter te Curiical situatio- of te arties. As a result, a- a>solutel: si=ulate or fictitious co-tract is voi, a- te arties =a: recover fro= eac oter 6at te: =a:ave give- u-er te co-tract. !o6ever, if te arties state a false cause i- te co-tract toco-ceal teir real agree=e-t, te co-tract is relativel: si=ulate a- te arties are still >ou- >: teir real agree=e-t. !e-ce, 6ere te esse-tial reuisites of a co-tract are

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     rese-t a- te si=ulatio- refers o-l: to te co-te-t or ter=s of te co-tract, teagree=e-t is a>solutel: >i-i-g a- e-forcea>le >et6ee- te arties a- teir successorsi- i-terest. ;e=asis sulie<

    "- te rese-t case, te true i-te-tio- of te arties i- te eEecutio- of te #ee of A>solute Sale is i==eiatel: aare-t fro= reso-e-ts ver: o6- A-s6er to etitio-ers *o=lai-t. As reso-e-ts te=selves ac-o6lege, te urose of te #eeof A>solute Sale 6as si=l: to Ffacilitate te titli-g of te Osu>CectJ roert:,F -ot totra-sfer te o6-ersi of te lot to te=. )urter=ore, reso-e-ts co-cee tat etitio-er Salvaor re=ai-s i- ossessio- of te roert: a- tat tere is -o i-icatio-tat reso-e-ts ever too ossessio- of te su>Cect roert: after its suose urcase.Suc failure to tae eEclusive ossessio- of te su>Cect roert: or, i- te alter-ative, tocollect re-tals fro= its ossessor, is co-trar: to te ri-cile of o6-ersi a- is a clear  >age of si=ulatio- tat re-ers te 6ole tra-sactio- voi.12

    *o-trar: to te aellate courts oi-io-, te fact tat te uestio-e #ee of A>soluteSale 6as reuce to 6riti-g a- -otarize oes -ot accor it te ualit: of i-co-troverti>ilit: oter6ise rovie >: te arole evie-ce rule. e for= of a co-tractoes -ot =ae a- oter6ise si=ulate a- i-vali act vali. e rule o- arole evie-ceis -ot, as it 6ere, iro-cla. Sec. 9, Rule 10 of te Rules of *ourt rovies teeEcetio-s3

    Sectio- 9. &vie-ce of 6ritte- agree=e-ts. E E E

    !o6ever, a art: =a: rese-t evie-ce to =oif:, eElai- or a to te ter=s of 6ritte-agree=e-t if e uts i- issue i- is leai-g3

    ;a< A- i-tri-sic a=>iguit:, =istae or i=erfectio- i- te 6ritte- agree=e-tH

    ;>< e failure of te 6ritte- agree=e-t to eEress te true i-te-t a- agree=e-t of te arties teretoH

    ;c< e valiit: of te 6ritte- agree=e-tH or 

    ;< e eEiste-ce of oter ter=s agree to >: te arties or teir successors i- i-terestafter te eEecutio- of te 6ritte- agree=e-t.

    e ter= Fagree=e-tF i-clues 6ills. ;e=asis sulie<

    e failure of te #ee of A>solute Sale to eEress te true i-te-t a- agree=e-t of te

    co-tracti-g arties 6as clearl: ut i- issue i- te rese-t case. Agai-, reso-e-tste=selves a=it i- teir A-s6er tat te Affiavit of SelfACuicatio- a- te #ee of A>solute Sale 6ere o-l: eEecute to facilitate te titli-g of te roert:. e R* is,terefore, Custifie to al: te eEcetio-s rovie i- te seco- aragra of Sec. 9,Rule 10 to ascertai- te true i-te-t of te arties, 6ic sall revail over te letter of te ocu=e-t. at sai, co-sieri-g tat te #ee of A>solute Sale as >ee- so6- to >e

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    voi for >ei-g a>solutel: si=ulate, etitio-ers are -ot reclue fro= rese-ti-gevie-ce to =oif:, eElai- or a to te ter=s of te 6ritte- agree=e-t.1

    D!&R&)$R&, te i-sta-t etitio- is GRAN. e #ecisio- ate 'arc 0, 2012a- te Resolutio- ate Sete=>er 25, 2012 of te *ourt of Aeals i- *AG.R. *V No. 905 are ere>: R&V&RS a- S& AS"#&. e #ecisio- ate a-uar: 20,2009 i- *ivil *ase No. 10407 of te Regio-al rial *ourt ;R*er 10, 2012

     NAP$+&$N #. N&R", A+"*"A #. N&R"'$N#&AR, V"S'"N#A #. N&R"*!A'(&RS, R$SA #. N&R"'"++AN, #$%G+AS #. N&R", &%R$P"A #. "++%*$*T"N$S AN# V"*$R"A #. "++%P"A+A, Petitio-ers,vs.!&"RS $) !A#" %S$P % AN# %+P!A "(RA!"' %, Reso-e-ts.

    # & * " S " $ N

    P&R+AS(&RNA(&, .3

    "- tis Petitio- for Revie6 o- *ertiorari1 u-er Rule 45 of te Rules of *ourt, etitio-ers Naoleo- #. Neri ;Naoleo-

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    ;5< fro= er seco- =arriage 6it &-riue Neri ;&-riuerace >: $rigi-al *ertificate of 

    itle ;$*< Nos. ;P7998< P21285, ;P14?08< P515?a- P20551 ;P848ruar: 15, 1957, August 27, 19?2 a- ul: 7, 19?7, resectivel:.

    $- Sete=>er 21, 1977, A-u-ciacio- ie i-testate. !er us>a-, &-riue, i- is erso-al caacit: a- as -atural guaria- of is =i-or cilre- Rosa a- #ouglas,togeter 6it Naoleo-, Alicia, a- Vis=i-aeEecute a- &Etrauicial Settle=e-t of te &state 6it A>solute #ee of Sale8 o- ul: 7, 1979, aCuicati-g a=o-g te=selveste sai o=estea roerties, a- tereafter, co-ve:i-g te=to te late souses !aCiuso %: a- ula ">rai= %: ;souses %:stitute >: teir eirsefore teR*, ocete as *ivil *ase No.9?28, assaili-g te valiit: of te sale for avi-g >ee-sol 6iti- te roi>ite erio. eco=lai-t 6as later a=e-e to i-clue &utroiaa- Victoriaas aitio-al lai-tiffs for avi-g >ee- eEclue a- erive of teir legiti=es as cilre-of A-u-ciacio- fro= er first =arriage.

    "- teir a=e-e a-s6er 6it cou-terclai=, te eirs of %: cou-tere tat te sale too  lace >e:o- te 5:ear roi>itor: erio fro= te issua-ce of te o=estea ate-ts.e: also e-ie -o6lege of &utroia a- Victorias eEclusio-fro= te eEtraCuicialsettle=e-t a- sale of te su>Cect roerties, a- i-terose furter te efe-ses of  rescritio- a- laces.

    e R* Ruli-g

    $- $cto>er 25, 2004, te R* re-ere a ecisio- oreri-g, a=o-g oters, tea--ul=e-t of te &Etrauicial Settle=e-t of te &state 6it A>solute #ee of Sale. "trule tat 6ile te sale occurre >e:o- te 5:ear roi>itor: erio, te sale is stillvoi >ecause &utroia a- Victoria 6ere erive of teir ereitar: rigts a- tat&-riue a -o Cuicial autorit: to sell te sares of is =i-or cilre-, Rosa a-#ouglas.

    *o-seue-tl:, it reCecte te efe-ses of laces a- rescritio- raise >: souses %:,6o clai=e ossessio- of te su>Cect roerties for 17 :ears, oli-g tat coo6-ersi

    rigts are i=rescriti>le.

    e *A Ruli-g

    $- aeal, te *Areverse a- set asie te ruli-g of te R* i- its Aril 27, 2010#ecisio- a- is=isse te co=lai-t of te etitio-ers. "t el tat, 6ile &utroia a-Victoria a -o -o6lege of te eEtraCuicial settle=e-t a- sale of te su>Cect roerties a- as suc, 6ere -ot >ou- >: it, te *A fou- it u-co-scio-a>le to er=it

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    te a--ul=e-t of te sale co-sieri-g souses %:s ossessio- tereof for 17 :ears, a-tat&utroia a- Victoria>elatel:file teir actio-i- 1997, or=ore ta- t6o :earsfro=-o6lege of teir eEclusio- as eirs i- 1994 6e- teir stefater ie. "t,o6ever, i -ot reclue te eEclue eirs fro= recoveri-g teir legiti=es fro= teir 

    coeirs.

    Si=ilarl:, te *A eclare te eEtraCuicial settle=e-t a- te su>seue-t saleas valia- >i-i-g 6it resect to &-riue a- iscilre-, oli-g tat as coo6-ers, te: avete rigt to isose of teir resective sares as te: co-sier -ecessar: or fit.Dilerecog-izi-g Rosa a- #ouglas to >e =i-ors at tat ti=e, te: 6ere ee=e to averatifie te sale 6e-te: faile to uestio- it uo- reaci-g te age of =aCorit:."talsofou- laces to ave set i- >ecause of teir i-actio- for a lo-g erio of ti=e.

    e "ssues

    "- tis etitio-, etitio-ers i=uteto te *A te follo6i-g errors3

    ". D!&N " %P!&+#!& VA+"#" $) !& F&RA %#"*"A+ S&+&'&N$) !& &SA& D"! A(S$+%& #& $) SA+&F AS )AR AS !& S!AR&S $)&%R$P"A AN# V"*$R"A D&R& *$N*&RN, !&R&( #&PR"V"NG !&'$) !&"R "N!&R"AN*&H

    "". D!&N " #"# N$ N%++") $R ANN%+ !& F&RA %#"*"A+S&+&'&N $) !& &SA& D"! A(S$+%& #& $) SA+&F D"!R&SP&* $ !& S!AR&S$) R$SA AN# #$%G+AS, !&R&( #&PR"V"NG!&' $) !&"R "N!&R"AN*&H a-

    """. D!&N " )$%N# !A +A*!&S $R PR&S*R"P"$N !AS S& "N.

    e Ruli-g of te *ourt

    e etitio-is =eritorious.

    "t >ears to stress tat all te etitio-ers erei- are i-isuta>l: legiti=ate cilre- of A-u-ciacio- fro= er first a- seco- =arriages 6it Go-zalo a- &-riue, resectivel:,a- co-seue-tl:, are e-title to i-erit fro= er i- eual sares, ursua-t to Articles 979a- 980 of te *ivil *oe 6ic rea3

    AR. 979. +egiti=ate cilre- a- teir esce-a-ts succee te are-ts a- oter asce-a-ts, 6itout isti-ctio- as to seE or age, a- eve- if te: soul co=e fro=

    iffere-t =arriages.

    EEE

    AR. 980. e cilre- of te ecease sall al6a:s i-erit fro= i= i- teir o6- rigt,ivii-g te i-erita-ce i- eual sares.

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    As suc, uo- te eat of A-u-ciacio- o- Sete=>er 21, 1977, er cilre- a- &-riueacuire teir resective i-erita-ces,9 e-titli-g te= to teir ro i-iviso sares i- er 6ole estate, as follo6s3

    &-riue 9I1? ;1I2 of te co-Cugal assets U 1I1?<

    &utroia 1I1?

    Victoria 1I1?

     Naoleo-

    1I1?

    Alicia 1I1?

    Vis=i-a 1I1?

    Rosa 1I1?

    #ouglas 1I1?

    !e-ce, i- te eEecutio- of te &Etrauicial Settle=e-t of te &state 6it A>solute #eeof Sale i- favor of souses %:, all te eirs of A-u-ciacio-soul ave articiate.*o-sieri-g tat &utroia a- Victoria 6ere a=ittel: eEclue a- tat te- =i-orsRosa a- #ouglas 6ere -ot roerl: rerese-te terei-, te settle=e-t 6as -ot vali a- >i-i-g uo-te= a- co-seue-tl:, a total -ullit:.

    Sectio- 1, Rule 74 of te Rules of *ourt rovies3

    S&*"$N 1. &EtraCuicial settle=e-t >: agree=e-t >et6ee- eirs. E E E

    e fact of te eEtraCuicial settle=e-t or a=i-istratio- sall >e u>lise i- a-e6saer of ge-eral circulatio- i- te =a--er rovie i- te -eEt succeei-g sectio-H >ut -o eEtraCuicial settle=e-t sall >e >i-i-g uo- a-: erso- 6o as -ot articiateterei- or a -o -otice tereof. ;%-erscori-g ae<

    e effect of eEclui-g te eirs i- te settle=e-t of estate 6as furter eluciate i-Segura v. Segura,10 tus3

    "t is clear tat Sectio- 1 of Rule 74 oes -ot al: to te artitio- i- uestio- 6ic 6as-ull a- voi as far as te lai-tiffs 6ere co-cer-e. e rule covers o-l: vali artitio-s.e artitio- i- te rese-t case 6as i-vali >ecause it eEclue siE of te -i-e eirs 6o6ere e-title to eual sares i- te artitio-e roert:. %-er te rule F-o eEtraCuicialsettle=e-t sall >e >i-i-g uo- a-: erso- 6o as -ot articiate terei- or a -o-otice tereof.F As te artitio- 6as a total -ullit: a- i -ot affect te eEclue eirs, it

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    6as -ot correct for te trial court to ol tat teir rigt to calle-ge te artitio- a rescri>e after t6o :ears fro= its eEecutio-

    !o6ever, 6ile te settle=e-t of te estate is -ull a- voi, te su>seue-t sale of tesu>Cect roerties=ae >: &-riue a- is cilre-, Naoleo-, Alicia a- Vis=i-a, i-favor of te reso-e-ts isvali >ut o-l: 6it resect to teir roortio-ate saresterei-."t ca--ot >e e-ie tat tese eirs ave acuire teir resective sares i- te roerties of A-u-ciacio- fro= te =o=e-t of er eat11a- tat, as o6-ers tereof,te: ca- ver: 6ell sell teir u-ivie sare i- te estate.12

    Dit resect to Rosa a- #ouglas 6o 6ere =i-ors at te ti=e of te eEecutio- of tesettle=e-t a- sale, teir -atural guaria- a- fater, &-riue, rerese-te te= i- tetra-sactio-. !o6ever, o- te >asis of te la6s revaili-g at tat ti=e, &-riue 6as =erel:clote 6it o6ers of a=i-istratio- a- >ereft of a-: autorit: to isose of teir 2I1?sares i- te estate of teir =oter, A-u-ciacio-.

    Articles 20 a- 2? of te *ivil *oe, te la6s i- force at te ti=e of te eEecutio- of te settle=e-t a- sale, rovie3

    AR. 20. e fater, or i- is a>se-ce te =oter, is te legal a=i-istrator of te roert: ertai-i-g to te cil u-er are-tal autorit:. "f te roert: is 6ort =oreta- t6o tousa- esos, te fater or =oter sall give a >o- su>Cect to te aroval of te *ourt of )irst "-sta-ce.

    AR. 2?. De- te roert: of te cil is 6ort =ore ta- t6o tousa- esos, tefater or =oter sall >e co-siere a guaria- of te cils roert:, su>Cect to teuties a- o>ligatio-s of guaria-s u-er te Rules of *ourt.

    *orollaril:, Sectio- 7, Rule 9 of te Rules of *ourt also rovies3

    S&*. 7. Pare-ts as Guaria-s. De- te roert: of te cil u-er are-tal autorit:is 6ort t6o tousa- esos or less, te fater or te =oter, 6itout te -ecessit: of court aoi-t=e-t, sall >e is legal guaria-. De- te roert: of te cil is 6ort=ore ta- t6o tousa- esos, te fater or te =oter sall >e co-siere guaria- of te cils roert:, 6it te uties a- o>ligatio-s of guaria-s u-er tese Rules, a-sall file te etitio- reuire >: Sectio- 2 ereof. )or goo reaso-s, te court =a:,o6ever, aoi-t a-oter suita>le erso-s.

    A=i-istratio- i-clues all acts for te reservatio- of te roert: a- te receit of 

    fruits accori-g to te -atural urose of te ti-g. A-: act of isositio- or alie-atio-,or a-: reuctio- i- te su>sta-ce of te atri=o-: of cil, eEcees te li=its of a=i-istratio-.1  us, a fater or =oter, as te -atural guaria- of te =i-or u-er  are-tal autorit:, oes -ot ave te o6er to isose or e-cu=>er te roert: of telatter. Suc o6er is gra-te >: la6 o-l: to a Cuicial guaria- of te 6ars roert: a-eve- te- o-l: 6it courts rior aroval secure i- accora-ce 6it te roceei-gs setfort >: te Rules of *ourt.14

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    *o-seue-tl:, te isute sale e-tere i-to >: &-riue i- >ealf of is =i-or cilre-6itout te roer Cuicial autorit:, u-less ratifie >: te= uo- reaci-g te age of =aCorit:,15 is u-e-forcea>le i- accora-ce 6it Articles 117 a- 140;1< of te *ivil*oe 6ic rovie3

    AR. 117. No o-e =a: co-tract i- te -a=e of a-oter 6itout >ei-g autorize >: telatter or u-less e as >: la6 a rigt to rerese-t i=.

    A co-tract e-tere i-to i- te -a=e of a-oter >: o-e 6o as -o autorit: or legalrerese-tatio-, or 6o as acte >e:o- is o6ers, sall >e u-e-forcea>le, u-less it isratifie, eEressl: or i=liel:, >: te erso- o- 6ose >ealf it as >ee- eEecute, >efore it is revoe >: te oter co-tracti-g art:.

    AR. 140. e follo6i-g co-tracts are u-e-forcea>le, u-less te: are ratifie3

    ;1< ose e-tere i-to te -a=e of a-oter erso- >: o-e 6o as >ee- give- -o

    autorit: or legal rerese-tatio-, or 6o as acte >e:o- is o6ersHEEE

    Ratificatio- =ea-s tat o-e u-er -o isa>ilit: volu-taril: aots a- gives sa-ctio- toso=e u-autorize act or efective roceei-g, 6ic 6itout is sa-ctio- 6oul -ot >e >i-i-g o- i=. "t is tis volu-tar: coice, -o6i-gl: =ae, 6ic a=ou-ts to aratificatio- of 6at 6as teretofore u-autorize, a- >eco=es te autorize act of te art: so =ai-g te ratificatio-.1? $-ce ratifie, eEressl: or i=liel: suc as 6e- te erso- -o6i-gl: receive >e-efits fro= it, te co-tract is clea-se fro= all its efectsfro= te =o=e-t it 6as co-stitute,17 as it as a retroactive effect.

    Recors, o6ever, so6 tat Rosa a ratifie te eEtraCuicial settle=e-t of te estate6it a>solute ee of sale. "- Naoleo- a- Rosas 'a-ifestatio- 18  >efore te R*ate ul: 11, 1997,te: state3

    F*o-cer-i-g te sale of our arcel of la- eEecute >: our fater, &-riue Neri co-currei- a- co-for=e to >: us a- our oter t6o sisters a- >roter ;te oter lai-tiffsotco-fir=e tat te sa=e 6as volu-tar: a- freel: =ae >: all of us a- terefore te sale6as a>solutel: vali a- e-forcea>le as far as 6e all lai-tiffs i- tis case areco-cer-eHF ;%-erscori-g sulie<

    "- teir u-e 0, 1997 oi-tAffiavit,19 Naoleo- a- Rosa also allege3Fat 6e are surrise tat our -a=es are i-clue i- tis case si-ce 6e o -ot ave a-:i-te-tio- to file a case agai-st !aCi uso %: a- ula ">rai= %: a- teir fa=il:a- 6e resect a- ac-o6lege te valiit: of te &Etrauicial Settle=e-t of te&state 6it A>solute #ee of Sale ate ul: 7, 1979HF ;%-erscori-g sulie

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    *learl:, te foregoi-g state=e-ts co-stituteratificatio- of te settle=e-t of te estate a-te su>seue-t sale, tus, urgi-g all te efects eEisti-g at te ti=e of its eEecutio- a-legiti=izi-g te co-ve:a-ce of Rosas 1I1? sare i- te estate of A-u-ciacio- to souses%:. e sa=e, o6ever, is -ot true 6it resect to #ouglas for lac of evie-ce so6i-g

    ratificatio-.

    *o-sieri-g, tus, tat te eEtraCuicial settle=e-t 6it sale is i-vali a- terefore, -ot >i-i-g o- &utroia, Victoria a- #ouglas, o-l: te sares of&-riue, Naoleo-, Alicia,Vis=i-a a- Rosa i- te o=estea roerties ave effectivel:>ee- isose i- favor of souses %:. FA erso- ca- o-l: sell 6at e o6-s, or is autorize to sell a- te >u:er ca- as a co-seue-ce acuire -o =ore ta- 6at te sellerca- legall: tra-sfer.F 20 $- tisscore, Article 49 of te *ivil *oeis releva-t, 6ic rovies3

    &ac coo6-er sall ave te full o6-ersi of is art a- of te fruits a- >e-efits ertai-i-g tereto, a- e =a: terefore alie-ate, assig- or =ortgage it, a- eve-

    su>stitute a-oter erso- i- its e-Co:=e-t, eEcet 6e- erso-al rigts are i-volve. (utte effect of te alie-atio- or te =ortgage, 6it resect to te coo6-ers, sall >e li=iteto te ortio- 6ic =a: >e allotte to i= i- te ivisio- uo- te ter=i-atio- of te coo6-ersi.

    *o-seue-tl:, souses %: or teir su>stitute eirs >eca=e ro i-iviso coo6-ers of teo=estea roerties 6it &utroia, Victoria a- #ouglas, 6o retai-e title to teir resective 1I1? sares. e: 6ere ee=e to >e oli-g te I1? sares of &utroia,Victoria a- #ouglas u-er a- i=lie co-structive trust for te latters >e-efit,co-for=a>l: 6it Article 145? of te *ivil *oe 6ic states3Fif roert: is acuiretroug =istae or frau, te erso- o>tai-i-g it is, >: force of la6, co-siere a trustee

    of a- i=lie trust for te >e-efit of te erso- fro= 6o= te roert: co=es.F As suc,it is o-l: fair, Cust a- euita>le tat te a=ou-t ai for teir sares euivale-t to P5,000.0021 eac or a total of P 15,000.00 >e retur-e to souses %: 6it legal i-terest.

    $- te issue of rescritio-, te *ourt agrees 6it etitio-ers tat te rese-t actio- as-ot rescri>e i- so far as it sees to a--ul te eEtraCuicial settle=e-t of te estate.*o-trar: to te ruli-g of te *A, te rescritive erio of 2 :ears rovie i- Sectio- 1Rule 74 of te Rules of 

    *ourt reco-e fro= te eEecutio- of te eEtraCuicial settle=e-t fi-s -o alicatio- to etitio-ers &utroia, Victoria a- #ouglas, 6o 6ere erive of teir la6ful

     articiatio- i- te su>Cect estate. (esies, a- Factio- or efe-se for te eclaratio- of tei-eEiste-ce of a co-tract oes -ot rescri>eF i- accora-ce 6it Article 1410 of te *ivil*oe.

    !o6ever, te actio- to recover roert: el i- trust rescri>es after 10 :ears fro= teti=e te cause of actio- accrues,22 6ic is fro= te ti=e of actual -otice i- case of u-registere ee.2  "- tis case, &utroia, Victoria a- #ouglas clai=e to ave-o6lege of te eEtraCuicial settle=e-t 6it sale after te eat of teir fater, &-riue,

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    i- 1994 6ic souses %: faile to refute. !e-ce, te co=lai-t file i- 1997 6as 6ell6iti- te rescritive erio of 10 :ears.

    D!&R&)$R&, te i-sta-t etitio- is GRAN. e Aril 27, 2010 #ecisio- a-$cto>er 18, 2010 Resolutio- of te *ourt of Aeals are R&V&RS a- S& AS"#&a- a -e6 Cug=e-t is e-tere3

    1. #eclari-g te &Etrauicial Settle=e-t of te &state of A-u-ciacio- Neri N%++ a-V$"#H

    2. #eclari-g te A>solute #ee of Sale i- favor of te late souses !aCi uso %: a-ula ">rai= %: as regars te 1I1? total sares of te late &-riue Neri, Naoleo- Neri, Alicia #. Neri'o-eCar, Vis=i-a #. Neri*a=>ers a- Rosa #. Neri'illa-VA+"#H

    . #eclari-g &utroia #. "llut*oci-os, Victoria #. "llutPiala a- #ouglas #. Neri as

    te +AD)%+ $DN&RSof te I1? ortio-s of te su>Cect o=estea roerties, covere >: $rigi-al *ertificate of itle Nos. ;P7998< P2128, ;P14?08< P515 a- P20551 ;P848er 1, 200?

    Reu>lic of te Pilii-esS%PR&'& *$%R

    'a-ila

    S&*$N# #"V"S"$N

    G.R. No. 15?5? $cto>er 1, 200?

    $S&P! *%A, etitio-er,vs.G+$R"A A. VARGAS, A%R$RA VARGAS, RA'$N VARGAS, 'AR"&S VARGAS,&+"NA VARGAS AN# G&''A VARGAS, reso-e-ts.

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    # & * " S " $ N

    A/*%NA, .3

    is is a etitio- for revie6 u-er Rule 45 of te Rules of *ourt seei-g te reversal of te ecisio-1 ate 'arc 2?, 2002, a- te resolutio-2 ate #ece=>er 17, 2002, of te*ourt of Aeals i- *AG.R. SP No. 598?9 e-title FGloria A. Vargas, Aurora Vargas,Ra=o- Vargas, 'arites Vargas, &eli-a Vargas a- Ge==a Vargas v. ose *ua.F

    e facts are as follo6s3

    A arcel of resie-tial la- 6it a- area of 99 suare =eters locate i- Sa- ua-, Virac,*ata-ua-es 6as left >ei- >: te late Pauli-a Vargas. $- )e>ruar: 4, 1994, a -otarize&Etra uicial Settle=e-t A=o-g !eirs 6as eEecute >: a- a=o-g Pauli-a VargasB eirs,-a=el: &ster Vargas, Visitacio- Vargas, ua- Vargas, /e-aia V. 'atie-zo, Rosario V.

    )orteza, A-res Vargas, Gloria Vargas, A-to-i-a Vargas a- )lore-ti-o Vargas, artitio-i-g a- aCuicati-g u-to te=selves te lot i- uestio-, eac o-e of te=getti-g a sare of 11 suare =eters. )lore-ti-o, A-res, A-to-i-a a- Gloria, o6ever,i -ot sig- te ocu=e-t. $-l: &ster, Visitacio-, ua-, /e-aia a- Rosario sig-e it.e &Etra uicial Settle=e-t A=o-g !eirs 6as u>lise i- te *ata-ua-es ri>u-efor tree co-secutive 6ees.

    $- Nove=>er 15, 1994, a- &Etra uicial Settle=e-t A=o-g !eirs 6it Sale4 6as agai-eEecute >: a- a=o-g te sa=e eirs over te sa=e roert: a- also 6it te sa=esari-gs. $-ce =ore, o-l: &ster, Visitacio-, ua-, /e-aia a- Rosario sig-e teocu=e-t a- teir resective sares totali-g 55 suare =eters 6ere sol to ose *ua, etitio-er erei-.

    Accori-g to Gloria Vargas, te 6io6 of Sa-tiago Vargas a- o-e of reso-e-ts erei-,se ca=e to -o6 of te &Etra uicial Settle=e-t A=o-g !eirs 6it Sale ate Nove=>er 1?, 1994 o-l: 6e- te origi-al ouse >uilt o- te lot 6as >ei-g e=oliseso=eti=e i- 'a: 1995.5 Se lie6ise clai=e se 6as u-a6are tat a- earlier &Etrauicial Settle=e-t A=o-g !eirs ate )e>ruar: 4, 1994 i-volvi-g te sa=e roert: a >ee- u>lise i- te *ata-ua-es ri>u-e.?

    After -o6i-g of te sale of te 55 suare =eters to etitio-er, Gloria Vargas trie toreee= te roert:, 6it te follo6i-g letter 7 se-t to etitio-er o- er >ealf3

    29t u-e 1995

    'r. ose *ua*ailia-, Virac, *ata-ua-es

    Sir3

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    is is i- >ealf of =: clie-t, 's. Aurora Vargas,8 ;cIo Att:. Prosero V. a>lizo< o-e of te la6ful eirs of te late Pauli-a Vargas, origi-al o6-er of +ot No. 214 of Virac,Po>lacio- covere >: ARP No. 01001 i- er -a=e.

    " u-ersta- tat a ocu=e-t F&Etra uicial Settle=e-t A=o-g !eirs 6it SaleF 6aseEecute >: so=e of =: clie-tBs coeirs a- allege rerese-tatives of oter coeirs, >:virtue of 6ic ocu=e-t :ou acuire >: urcase fro= te sig-atories to te saiocu=e-t, five ;5< sares 6it a total area of fift:five suare =eters of te a>oveescri>e la-.

    is is to serve :ou -otice tat =: clie-t sall eEercise er rigt of legal ree=tio- of sai five ;5< sares as 6ell as oter sares 6ic :ou =a: lie6ise ave acuire >: urcase. A- :ou are ere>: give- a- otio- to agree to legal ree=tio- 6iti- a erio of fiftee- ;15< a:s fro= :our receit ereof.

    Soul :ou fail to co-ve: to =e :our agree=e-t 6iti- sai 15a:erio, roer legal

    actio- sall >e tae- >: =: clie-t to reee= sai sares.

    a- :ou.

    Ver: trul: :ours,

    ;Sg.<%AN G. A&N*"A

    De- te offer to reee= 6as refuse a- after avi-g faile to reac a- a=ica>lesettle=e-t at te >ara-ga: level,9 Gloria Vargas file a case for a--ul=e-t of &Etrauicial Settle=e-t a- +egal Ree=tio- of te lot 6it te 'u-icial rial *ourt

    ;'*< of Virac, *ata-ua-es agai-st etitio-er a- co-sig-e te a=ou-t of P100,0006ic is te a=ou-t of te urcase 6it te *ler of *ourt o- 'a: 20, 199?.10 oi-i-ger i- te actio- 6ere er cilre- 6it Sa-tiago, -a=el:, Aurora, Ra=o-, 'arites,&eli-a a- Ge==a, all sur-a=e Vargas.

    Su>seue-tl:, *arlos Gia-a-, r. a- Gloria Arcilla, eirs of te allege ri=itive o6-er of te lot i- uestio-, Pero +aa-ula, i-terve-e i- te case.11

    Reso-e-ts clai=e tat as coo6-ers of te roert:, te: =a: >e su>rogate to terigts of te urcaser >: rei=>ursi-g i= te rice of te sale. e: lie6ise allegetat te 0a: erio follo6i-g a 6ritte- -otice >: te ve-ors to teir coo6-ers for 

    te= to eEercise te rigt of ree=tio- of te roert: a -ot :et set i- as -o 6ritte--otice 6as se-t to te=. "- effect, te: clai=e tat te &Etra uicial Settle=e-t A=o-g!eirs a- te &Etra uicial Settle=e-t A=o-g !eirs 6it Sale 6ere -ull a- voi a-a -o legal a- >i-i-g effect o- te=.12

    After trial o- te =erits, te '* re-ere a ecisio-1 i- favor of etitio-er, is=issi-gte co=lai-t as 6ell as te co=lai-ti-i-terve-tio- for lac of =erit, a- eclari-g te#ee of &Etra uicial Settle=e-t A=o-g !eirs 6it Sale vali a- >i-i-g. e '*

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    uel te sale to etitio-er >ecause te tra-sactio- urortel: occurre after te artitio- of te roert: a=o-g te coo6-er eirs. e '* oi-e tat te oter eirscoul valil: isose of teir resective sares. 'oreover, te '* fou- tat altougtere 6as a failure to strictl: co=l: 6it te reuire=e-ts u-er Article 1088 of te

    *ivil *oe14 for a 6ritte- -otice of sale to >e serve uo- reso-e-ts >: te ve-ors rior to te eEercise of te for=erBs rigt of ree=tio-, tis eficie-c: 6as cure >:reso-e-tsBactual -o6lege of te sale, 6ic 6as =ore ta- 0 a:s >efore te fili-gof teir co=lai-t, a- teir co-sig-atio- of te urcase rice 6it te *ler of *ourt,so tat te latter actio- ca=e too late. )i-all:, te '* rule tat reso-e-ts faile toesta>lis >: co=ete-t roof etitio-erBs >a fait i- urcasi-g te ortio- of te roert: o6-e >: reso-e-tsB coeirs.15

    $- aeal, te Regio-al rial *ourt ;R*ruar: 4, 1994 a- Nove=>er 15, 1994,resectivel:, 6ere voi a- 6itout a-: legal effect. e *A el tat, ursua-t toSectio- 1, Rule 74 of te Rules of *ourt, 1? te eEtraCuicial settle=e-t =ae >: teoter coeirs is -ot >i-i-g uo- reso-e-ts co-sieri-g te latter -ever articiate i-it -or i te: ever sig-if: teir co-se-t to te sa=e.

    !is =otio- for reco-sieratio- avi-g >ee- e-ie, etitio-er file te rese-t etitio-for revie6.

    e issues are3

    Deter eirs are ee=e co-structivel: -otifie a- >ou-, regarless of teir failure to articiate terei-, >: a- eEtraCuicial settle=e-t a- artitio- of estate 6e- teeEtraCuicial settle=e-t a- artitio- as >ee- ul: u>liseH a-,

    Assu=i-g a u>lise eEtraCuicial settle=e-t a- artitio- oes -ot >i- erso-s 6oi -ot articiate terei-, 6eter te 6ritte- -otice reuire to >e serve >: a- eir tois coeirs i- co--ectio- 6it te sale of ereitar: rigts to a stra-ger >efore artitio-u-er Article 1088 of te *ivil *oe17 ca- >e ise-se 6it 6e- suc coeirs aveactual -o6lege of te sale s