G.R. No. 28067 , March 10, 1928
BASILIA ARAYATA, plaintiff-appellant, vs. FLORENTINO JOYA, ET AL., defendants-appellants.

FACTS

Cecilio Joya, during his marriage to Basilia Arayata, purchased several friar land lots from the government on installment under Act No. 1120. Before his death, he executed a will devising these lots to various relatives (the defendants) and also sold two lots (Nos. 1058 and 547) to some of them. After Cecilio’s death, his will was probated, and the defendants took possession of the devised lots. Basilia Arayata filed an action claiming exclusive ownership over all the lots, arguing that under Section 16 of Act No. 1120, as the surviving spouse, she was entitled to the lands purchased by her husband that were not validly transferred during his lifetime. The trial court declared the testamentary dispositions over one-half of the property void, annulled the sale of lot No. 1058, and ordered the defendants to deliver the lots to the estate administrator for liquidation. Both parties appealed.

ISSUE

1. Whether the sale of lot No. 1058 by Cecilio Joya during his lifetime was valid.
2. Whether the testamentary dispositions (devises) of the friar land lots purchased under Act No. 1120 are valid.
3. Whether Basilia Arayata is entitled to exclusive ownership and possession of the lots not validly transferred during Cecilio’s lifetime.

RULING

1. The sale of lot No. 1058 (and lot No. 547) during Cecilio Joya’s lifetime was VALID. The Court found these transfers to be made in good faith and with the approval of the Director of Lands, as required by Act No. 1120. Therefore, these conveyances were legal and effective.

2. The testamentary dispositions (devises) of the friar land lots (Nos. 1031, 1086, 1153, and 2352) are NULL and VOID. Applying Section 16 of Act No. 1120, the Court held that the surviving spouse (Basilia Arayata) has the preferential right to acquire ownership of friar lands purchased by the deceased spouse, provided she complies with the legal requirements. The deceased cannot defeat this statutory right by will. Since Cecilio Joya had not fully paid the installments at the time of his death, the lots remained subject to the provisions of Act No. 1120, and the devises were contrary to law.

3. Basilia Arayata is entitled to exclusive ownership and possession of lots Nos. 1031, 1086, 1153, and 2352, together with their fruits. As the surviving spouse, she has the right to these lots under Section 16 of Act No. 1120. The defendants, who are in possession under the void devises, are considered possessors in bad faith from the time of Cecilio’s death. They are ordered to return the lots and their fruits (or the cash equivalent) to Basilia Arayata, deducting necessary expenses for cultivation, preservation, and production.

DISPOSITIVE:
The appealed judgment was MODIFIED. The sale of lots Nos. 1058 and 547 was upheld as valid. The testamentary devises of lots Nos. 1031, 1086, 1153, and 2352 were declared null and void. The defendants (Feliciano Joya, Pablo Joya, Asuncion Bobadilla, Delfin Blancaflor, and Felicisima Blancaflor) were ordered to return said four lots and their fruits (or cash equivalent from 1920) to plaintiff Basilia Arayata, after deducting necessary expenses. No costs were awarded.