GR L 4340; (May, 1952) (7) (Digest)
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
These consolidated cases revolve around properties at 326 and 328 San Rafael Street, Manila. In 1943, Rebecca Levin, an illiterate widow and registered owner of the lots and houses, was persuaded by Joaquin V. Bass, a real estate broker, to sell the property at No. 326. Bass used fraudulent representations, including threats of Japanese confiscation and promises of a better house on Antonio Rivera Street, to induce Levin to sign documents she believed were merely an authority to sell. These documents turned out to be a deed of sale (Exhibit A) of No. 326 to Emiliano Eustaquio for P30,000, a subsequent sale (Exhibit B) by Eustaquio to Bass for P38,000, and a deed of sale (Exhibit C) of No. 328 to Bass for P65,000. Bass obtained Levin’s title, paid off an existing mortgage, and gave her only P10,000, misappropriating the rest. Bass then mortgaged the properties to Co Chin Leng and later sold No. 326 to Eugenio Mintu under certain conditions. Levin filed for annulment of the sales and mortgage. Bass filed various detainer actions against the tenants (Robles spouses) and against Levin and Mintu. After a joint hearing, the trial court annulled the sales (Exhibits A, B, C), ordered the cancellation of Bass’s titles and their reissuance in Levin’s name subject to the mortgage, dismissed Bass’s complaints, awarded damages to Levin, and ordered Bass to pay Mintu a sum of money.
ISSUE
The central issue, among others, is whether the subsequent sale of the property at No. 326 San Rafael Street by Joaquin V. Bass to Eugenio Mintu, an innocent purchaser for value, conferred a valid title upon Mintu despite the fraudulent acquisition of the property by Bass from Rebecca Levin.
RULING
The Supreme Court modified the trial court’s decision. It held that Eugenio Mintu is the rightful owner of the lot and house at No. 326 San Rafael Street. Mintu, an innocent purchaser for value who registered the deed of sale and obtained a transfer certificate of title in his name, acquired a valid title. The Court applied the principle of indefeasibility of a Torrens title and the rule that, as between two innocent parties (Levin and Mintu), the one whose act (Levin’s signing of the documents) made the fraud possible must bear the loss. The Court affirmed the annulment of the sales of No. 328 to Bass and the related orders, and directed the City Fiscal of Manila to investigate Bass and the notary public involved. The rest of the judgment not inconsistent with this ruling was affirmed.