PACETE vs. ASOTIGUE


GAUDENCIO PACETE vs. INOCENCIO ASOTIGUE

G.R. No. 188575 | December 10, 2012


PRINCIPLE: Reconveyance is available not only to the legal owner of a property but also to the person with a better right than the person under whose name said property was erroneously registered.

FACTS:

The property in dispute is a parcel of agricultural land, known as Lot No. 5-A, consisting of 22,240 square meters, being a portion of a bigger agricultural land, known as Lot No. 5, with an area of 118,055 square meters, situated in Barangay Dolis, Municipality of Magpet, Province of Cotabato, registered in the name of petitioner Gaudencio Pacete. Respondent Inocencio Asotigue filed a complaint for reconveyance and damages against Pacete before the RTC.

RESPONDENT:

        Asotigue averred that on March 22, 1979, he acquired the disputed land, denominated as Lot No. 5-A, from Rizalino Umpad for P2,300.00 by virtue of a Transfer of Rights and Improvements, duly notarized

        That he had been in possession and occupation of the said lot openly, publicly, notoriously, and in the concept of an owner for more than 21 years;

        That he had declared the lot in his name for taxation purposes, paying faithfully the real taxes due thereon,

        That he introduced permanent improvements on the said lot by planting considerable number of rubber trees and other fruit-bearing trees;

        That the present dispute arose when he found out for the first time, upon filing his application for title over the said lot, that it was included in Pacete's OCT.

        That he then demanded from Pacete the reconveyance of the said lot, but his demand was unheeded;

        That he brought the matter before the Office of the Pangkat Tagapagkasundo of Barangay Dolis, Magpet, for amicable settlement, but to no avail;

        That a Certificate to File Action was subsequently issued.

Asotigue testified that the disputed lot was previously owned by Sambutuan Sumagad a native. The lot was mortgaged by Sumagad to Pasague who later on bought it. Pasague then sold the lot to Umpad by way of Relinquishment of Rights and Improvements executed on October 19, 1971. On March 22, 1979, Asotigue bought the lot from Umpad by way of Transfer of Right and Improvements. Asotigue then entered the lot and planted, among others, rubber trees, fruit trees and coconut trees.

To strengthen his claim of ownership, Asotigue also submitted documentary evidence, among which were copies of the Transfer of Rights and Improvements, several Tax Declarations under his name; Survey Plan of Lot No. 5 and the Relinquishment of Rights and Improvements, executed by Pasague in favor of Umpad.

PETITIONER: Pacete denied the material allegations of Asotigue and asserted that he was the owner of the disputed lot, presenting OCT No. V-16654 issued on July 13, 1961 as evidence of his ownership. He claimed that sometime in 1979, Asotigue, by stealth, strategy and prior knowledge, entered the disputed lot and started planting trees despite his demand to vacate the said lot.

Pacete presented the testimonies of his son, Rolito Pacete and his wife, Angelica; and Elma Precion to disprove Asotigue's claim of ownership over the disputed lot. He also submitted documentary evidence, as proof of his ownership, such as OCT No. 16654, Tax Declarations and Transfer of Rights of Occupation and Improvements on an Unregistered Land.

Rolito testified that sometime in 1979, Asotigue squatted on about 2.5 hectare portion of their land in Purok 1, Dolis, Magpet, Cotabato. He claimed that he and his father told Asotigue not to plant anything on the land, but despite their warning, the latter continued planting. His father was the one paying the real taxes on the disputed lot and that they had the land titled in 1961. He did not file any case against Asotigue because he was very young then and his parents were illiterate. Angelica corroborated Rolito's testimony. She claimed that her husband Pacete was ignorant and that they were afraid of Asotigue, hence, they did not file any complaint before the police, municipal officers or the court.

RTC: RTC rendered judgment in favor of Asotigue. It ruled that Pacete was not able to substantiate his claim that he had a better right of possession and ownership over the disputed lot.

WHEREFORE, this Court finds and so holds that plaintiff was able to prove his case by preponderance of evidence. Defendant is directed to convey to plaintiff a portion of Lot No. 5, located at Dolis, Magpet, Cotabato, Mindanao, containing an area of 22,240 Square Meters.

CA: the CA affirmed in toto the RTC ruling in favor of Asotigue. In upholding the claim of Asotigue, the CA applied the doctrine of tacking of possession. It found that Asotigue was in material possession of the said lot for more than thirty (30) years, tacking the possession of his predecessor-in-interest, Sumagad, in 1958 up to the time he led the case in 2000.

Hence, this petition to the SC.

PETITIONER:

        Pacete contends that OCT No. V-16654, issued in his name in 1961, is an unassailable evidence of his ownership over the disputed lot having been issued pursuant to the Torrens System of Registration. He asserts that he is the legal owner of the lot by virtue of the said title as against Asotigue's claim of ownership based on tax declarations which are not conclusive as evidence of ownership or proof of the area covered therein. Moreover, Pacete argues that the application of the doctrine of tacking of possession was misplaced and erroneous as there was no proof that the predecessors-ininterest of Asotigue were in actual or physical possession of the subject lot and that Asotigue's claim of previous ownership by Sumagad was not proven by any material and substantial evidence.

        Finally, Pacete claims that reconveyance was not proper because he was already the owner of the said portion of land since 1961 and was the one dispossessed by Asotigue, the latter being a planter in bad faith and not entitled to an award of damages.

ISSUES:

  1. WON Pacete's title which had included the lot in dispute, can be considered unassailable evidence of his ownership over the disputed lot
  2. WON the reconveyance is proper under the availing set of facts
  3. WON the award of damages is justified.


RULING:

  1. The Court rules in the negative. Records show that when the disputed lot was conveyed by Pasague to Umpad, Pacete never objected to it. Neither did he file a suit against Pasague over the said transfer to protect his supposed interest over the said lot. In fact, the testimony of Pasague taken will bolster the fact that Pacete had full knowledge of the conveyance or transfer of the said lot made by Pasague to Umpad. Pacete was, therefore, not in good faith when he procured his OCT No. V16654 in 1961. Time and again, the High Court has ruled that, "it is a settled rule that the Land Registration Act protects only holders of title in good faith, and does not permit its provision to be used as a shield for the commission of fraud, or as a means to enrich oneself at the expense of others." Thus, Pacete cannot therefore rely on his OCT as an unassailable evidence of his ownership over the disputed property. The Land Registration Act and the Cadastral Act only protect holders of a title in good faith and do not permit their provisions to be used as a shield to enrich oneself at the expense of another.

 

  1. Reconveyance is proper under the circumstances. Reconveyance is available not only to the legal owner of a property but also to the person with a better right than the person under whose name said property was erroneously registered. Although Asotigue is not the titled owner of the disputed lot, he apparently has a better right than Pacete, the latter not being in good faith when he obtained his title to the said property.

 

In Muñoz v. Yabut Jr. the Court had the occasion to describe an action for reconveyance as follows:

An action for reconveyance is an action in personam available to a person whose property has been wrongfully registered under the Torrens system in another's name. Although the decree is recognized as incontrovertible and no longer open to review, the registered owner is not necessarily held free from liens. As a remedy, an action for reconveyance is filed as an ordinary action in the ordinary courts of justice and not with the land registration court. Reconveyance is always available as long as the property has not passed to an innocent third person for value innocent third person for value. A notice of lis pendens may thus be annotated on the certificate of title immediately upon the institution of the action in court. The notice of lis pendens will avoid transfer to an innocent third person for value and preserve the claim of the real owner.

 

In the present case, when Pacete procured OCT No. V-16654 in 1961, the disputed lot, being a portion covered by the said title, was already in possession of Asotigue. His predecessor-in-interest, Sumagad, had been occupying it since 1958. There was, therefore, an erroneous or wrongful registration of Asotigue's Lot 5-A of Lot 5, GSS-326, in favor of Pacete, who neither possessed nor occupied the same. Inasmuch as the latter had not passed the lot in question to an innocent purchaser for value, an action for reconveyance is proper. After all, the Torrens system was not designed to shield and protect one who had committed fraud or misrepresentation and, thus, holds title in bad faith.

 

  1. The Court finds no reversible error on the part of the CA in sustaining the award of damages to Asotigue. The latter was able to substantiate his entitlement to moral damages due to Pacete's act of including his (Asotigue's) portion in the registration of his own land. As a deterrent to others who would have the same thing in mind in coveting the property of others, the award for exemplary damages is justifiable.

 WHEREFORE, the petition is DENIED.

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