G.R. No. L-4340, L-4341, L-4342, L-4343, L-4344, L-4345, L-4346; May 28, 1952
Case Parties:

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

These consolidated cases revolve around two main actions concerning properties at 326 and 328 San Rafael Street, Manila, originally owned by Rebecca Levin. In late 1943/early 1944, Joaquin V. Bass, representing himself as a real estate broker, convinced the illiterate and elderly Levin to sell her house and lot at No. 326 by falsely claiming a Japanese buyer was interested and that she could use the proceeds to buy a better property on Antonio Rivera Street. Relying on his representations that the documents she signed were merely an authority to sell, Levin signed several documents without receiving copies. Bass took her residence certificate and tax receipt. He later gave her P10,000 as partial payment, took P2,000 to pay off an existing mortgage, and kept the remaining P8,000, giving her a receipt for only P6,000 for the Antonio Rivera property, which she never acquired. The documents Levin signed turned out to be a deed of sale (Exhibit A) of No. 326 to Emiliano Eustaquio for P30,000, who then sold it to Bass (Exhibit B) for P38,000. Bass also obtained a deed of sale (Exhibit C) from Levin for the house and lot at No. 328 for P65,000. Bass subsequently sold No. 326 to Eugenio Mintu. Levin filed an action to annul the sales and mortgage. The trial court annulled the sales (Exhibits A, B, and C), ordered the cancellation of Bass’s titles and their reissuance in Levin’s name (subject to a mortgage in favor of Co Chin Leng), dismissed Bass’s various detainer actions, and ordered Bass to account for and pay Levin the rentals collected for No. 326. Bass and Mintu appealed.

ISSUE

The central issue, among others consolidated, is whether the subsequent sale of the property at 326 San Rafael Street by Joaquin V. Bass to Eugenio Mintu, an innocent purchaser for value, can be upheld despite the fraudulent means by which Bass obtained the title from the original owner, Rebecca Levin.

RULING

The Supreme Court modified the trial court’s decision. It upheld the validity of the sale to Eugenio Mintu. The Court ruled that Mintu, as an innocent purchaser for value who acquired the property after Bass had obtained a Torrens title in his name, acquired a valid and indefeasible title. The Torrens system protects such a purchaser. 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 papers without understanding them, made the fraud possible. Therefore, Eugenio Mintu is declared the rightful owner of the lot and house at No. 326 San Rafael Street since November 8, 1944, entitled to collect rentals from that date and to the balance of rentals collected by Bass as ordered by the trial court, subject to the registered mortgage in favor of Co Chin Leng. The awards made to Levin by the trial court regarding No. 326 are deemed awarded to Mintu. The rest of the judgment not inconsistent with this ruling is affirmed. Costs are taxed against Joaquin V. Bass. The Court also directed the City Fiscal of Manila to investigate Bass and attorney/notary public Eliezer A. Manikan.