G.R. No. L-4340, L-4341, L-4342, L-4343, L-4344, L-4345, L-4346; May 28, 1952
REBECCA LEVIN, plaintiff-appellee, vs. JOAQUIN V. BASS, ET AL., defendants. EUGENIO MINTU, defendant-appellant.

JOAQUIN V. BASS, plaintiff-appellee, vs. JOSE C. ROBLES, ET AL., defendants. REBECCA LEVIN, ET AL., intervenors. EUGENIO MINTU, intervenor-appellant.
JOAQUIN V. BASS, plaintiff-appellee, vs. EUGENIO MINTU, defendant-appellant.
REBECCA LEVIN, plaintiff-appellee, vs. JOAQUIN V. BASS, defendant-appellant.
JOAQUIN V. BASS, plaintiff-appellant, vs. REBECCA LEVIN, defendant-appellee.
JOAQUIN V. BASS, plaintiff-appellant, vs. JOSE C. ROBLES and AMINTA T. DE ROBLES, defendants-appellees.
JOAQUIN V. BASS, plaintiff-appellant, vs. AMINTA T. DE ROBLES, defendant-appellee.

FACTS

In 1943, Rebecca Levin, a 65-year-old illiterate widow, was the registered owner of a lot with two houses at Nos. 326 and 328 San Rafael Street, Manila. Joaquin V. Bass, representing himself as a real estate broker, persuaded her to sell the house at No. 326 by making false representations, including that a Japanese buyer was interested and that she could buy a better property on Antonio Rivera Street. Relying on these representations, Levin signed documents in late December 1943 or early January 1944, which she believed were merely an authority to sell. Bass took her residence certificate and tax receipt. The documents turned out to be a deed of sale (Exhibit A) dated January 5, 1944, conveying the property to Emiliano Eustaquio for P30,000, and later a deed of sale (Exhibit C) dated February 18, 1944, conveying the house at No. 328 to Bass for P65,000. Eustaquio subsequently sold the No. 326 property to Bass (Exhibit B) on March 30, 1944. Bass then sold the No. 326 property to Eugenio Mintu on November 8, 1944. Bass obtained Torrens titles in his name. Multiple lawsuits ensued involving Levin, Bass, Mintu, and tenants of the properties, which were consolidated. The trial court annulled the sales to Eustaquio and Bass, ordered the cancellation of Bass’s titles and their reissuance in Levin’s name, dismissed Bass’s complaints for detainer and annulment of sale to Mintu, ordered Bass to pay Mintu a sum of money, and awarded Levin damages and rentals.

ISSUE

The central issue revolves around the validity of the series of sales of the properties and the rights of the parties, particularly whether the registered innocent purchaser for value, Eugenio Mintu, acquired a valid title despite the fraudulent transactions perpetrated by Joaquin V. Bass against Rebecca Levin.

RULING

The Supreme Court modified the trial court’s decision. It held that Eugenio Mintu, who purchased the lot and house at No. 326 San Rafael Street from Bass on November 8, 1944, for value and in good faith, and whose deed of sale was duly registered, acquired a valid and indefeasible title under the Torrens system. The Court applied the principle that “as between two innocent persons, one of whom must suffer the consequence of a breach of trust, the one who made it possible by his act of confidence must bear the loss.” Levin, by entrusting her documents to Bass and signing the papers without understanding them, made the fraud possible. Therefore, Mintu is declared the rightful owner of the No. 326 property since November 8, 1944, and is entitled to the rentals and balances awarded by the trial court in lieu of Levin, subject to the registered mortgage in favor of Co Chin Leng. The rest of the trial court’s judgment was affirmed. The Court also directed the City Fiscal of Manila to investigate Joaquin V. Bass and attorney Eliezer A. Manikan for their roles in the execution of the documents and their testimony.