G.R. No. 2209 : SEGUNDO JAVIER v. LONGINOS JAVIER, Administrator of the Estate of Manuel Javier and Perfecta Tagle

FACTS
The plaintiff, Segundo Javier, claimed exclusive ownership of a house and lot that had been listed in the inventory of the estate of the deceased Manuel Javier and Perfecta Tagle. The defendant, Longinos Javier, as estate administrator, asserted that the property formed part of the estate and sought its return and the rents collected by the plaintiff. The lower court ruled for the defendant. On appeal, the plaintiff contested the validity of the judgment, arguing that the lot had been sold by Manuel Javier to Ceferino Joven in 1862, that the sale was absolute and not a mortgage, and that subsequent conveyances (including a deed dated 12 March 1884) transferred ownership to the plaintiff and his brother Luis. Evidence showed the plaintiff in possession, with the title recorded in his name, and that the house was built by him in good faith.

ISSUE
Whether the house and lot in controversy belong to the estate of Manuel Javier and Perfecta Tagle and should remain in the estate inventory, or whether they are the exclusive property of the plaintiff, Segundo Javier.

RULING
The Supreme Court reversed the lower court’s decision. It held that the lot was absolutely sold by Manuel Javier to Ceferino Joven in 1862 and never reacquired by the estate; subsequent valid conveyances transferred title to the plaintiff. Accordingly, the house and lot must be excluded from the estate inventory. The heirs of the deceased may retain the house only after indemnifying the plaintiff for its value, or may compel the plaintiff to pay the value of the land, with the plaintiff retaining possession pending payment. The precise monetary valuation is left to the parties to determine. No special order on costs was made. The judgment was to be entered and the case remanded for execution.