GR 144773; (May, 2005) (Digest)
G.R. No. 144773 ; May 16, 2005
AZNAR BROTHERS REALTY COMPANY, petitioner, vs. LAURENCIO AYING, IN HIS OWN BEHALF AND IN BEHALF OF THE OTHER HEIRS OF EMILIANO AYING, PAULINO AYING, IN HIS OWN BEHALF AND IN BEHALF OF THE OTHER HEIRS OF SIMEON AYING, AND WENCESLAO SUMALINOG, IN HIS OWN BEHALF AND IN BEHALF OF THE OTHER HEIRS OF ROBERTA AYING, respondents.
FACTS
The disputed property is Lot No. 4399, originally owned by the eight children of Crisanta Maloloy-on. In 1964, heirs of the Aying siblings executed an Extra-Judicial Partition with Deed of Absolute Sale, conveying the land to Aznar Brothers Realty Company. The deed was registered under Act No. 3344. In 1988, Aznar successfully petitioned for the reconstitution of the lost original title, resulting in OCT No. RO-2856 issued in the names of the eight Aying siblings. In 1991, Aznar sought to eject occupants from the land.
Meanwhile, in 1993, respondents, claiming to be descendants and co-owners of the Aying siblings, filed a complaint against Aznar. They sought the cancellation of the 1964 deed, alleging it was fraudulent and void because not all co-owners signed it, and some signatories were already deceased at the time of its execution. They argued the deed did not validly convey the entire property to Aznar.
ISSUE
The primary issue is whether the action of the respondents for reconveyance of their alleged shares in the property has prescribed.
RULING
The Supreme Court ruled partially in favor of the respondents. The action for reconveyance based on an implied trust prescribes in ten years from the issuance of the title. OCT No. RO-2856 was issued on April 12, 1988. The complaint was filed on August 19, 1993, well within the ten-year prescriptive period. Therefore, the action had not prescribed.
On the merits, the Court found the 1964 deed valid only with respect to the shares of the heirs who actually participated in its execution. It could not convey the shares of heirs who did not consent. Consequently, as to the shares of the non-consenting heirs—specifically those of Emiliano Aying and Simeon Aying—Aznar, by registering the deed and causing the reconstitution of the title in its favor, became a trustee under an implied trust for their benefit. The heirs of Emiliano and Simeon Aying are entitled to reconveyance of their 2/8 aggregate share. However, the claim of the heirs of Roberta Aying was dismissed, as evidence showed their predecessor, Roberta, had participated in the sale, and any challenge by her heirs was barred by prescription, having been filed beyond the allowable period from the 1964 transaction.