G.R. No. 18058 ; January 16, 1923
FABIOLA SEVERINO, plaintiff-appellee, vs. GUILLERMO SEVERINO, defendant-appellant. FELICITAS VILLANUEVA, intervenor-appellee.

FACTS

Fabiola Severino filed an action claiming to be the natural daughter and sole heir of the deceased Melecio Severino. She sought to compel her uncle, Guillermo Severino, to convey four parcels of land (totaling ~800 hectares) registered in his name or pay damages, alleging he wrongfully obtained title. Felicitas Villanueva, as administratrix of Melecio’s estate, intervened, seeking the same relief for the estate. The trial court recognized Fabiola as Melecio’s acknowledged natural child and ordered Guillermo to convey 428 hectares of the land to the estate’s administratrix. Guillermo appealed. The evidence showed that Melecio owned the land, which was registered in his name in 1901. Guillermo administered the land for Melecio during his lifetime and continued possession after his death. In 1916-1917, during cadastral proceedings where Guillermo claimed the land through his attorney and no opposition was filed, certificates of title were issued in Guillermo’s name. Fabiola was a minor at that time.

ISSUE

Whether the defendant-appellant Guillermo Severino, as a fiduciary administrator of the property, committed fraud or breach of trust in securing title to the lands in his own name during the cadastral proceedings, and whether he can be compelled to reconvey the property to the estate of the true owner, Melecio Severino.

RULING

Yes. The Supreme Court affirmed the trial court’s judgment, with additional directions. The Court found that Guillermo, as administrator of the property for his brother Melecio, stood in a fiduciary relation. His act of securing title in his own name during the cadastral proceedings, without disclosing the true ownership and while the rightful heir (Fabiola) was a minor, constituted clear fraud and a breach of trust. The cadastral decree in his favor, obtained through such fraud, does not protect him. As no rights of innocent third parties are involved, he can be compelled to reconvey the property. The Court ordered Guillermo to execute deeds of conveyance for Lots 827, 828, 834, and a 237-hectare portion of Lot 874 (after subdivision) to the administratrix of Melecio’s estate. The Court reserved Fabiola’s right to establish her status as an acknowledged natural child in the probate proceedings, noting that the declaration of her status in this case was improper due to the absence of other necessary heirs as parties.