GR 154942; (August, 2005) (Digest)
G.R. No. 154942. August 16, 2005. ROLANDO SANTOS, Petitioner, vs. CONSTANCIA SANTOS ALANA, Respondent.
FACTS
Petitioner Rolando Santos and respondent Constancia Santos Alana are half-siblings. Their father, Gregorio Santos, owned a 39-square meter lot in Manila. During his lifetime, Gregorio executed a deed of donation over the lot in favor of Rolando on January 16, 1978, which was accepted on June 30, 1981, and duly annotated on the title. Subsequently, a separate Deed of Absolute Sale dated April 8, 1981, was presented. Upon the donor’s initiative, the title was cancelled and a new one issued in Rolando’s name based on the donation in 1981. Gregorio died intestate in 1986.
In 1991, Constancia filed a complaint for partition and reconveyance, alleging the donation was inofficious as it impaired her legitime, being Gregorio’s only property. Rolando defended that the property was validly sold to him and that Constancia’s action had prescribed.
ISSUE
Whether the donation is inofficious for impairing the compulsory heir’s legitime and whether the action to reduce the donation has prescribed.
RULING
The Supreme Court denied the petition, affirming the Court of Appeals with modification. The Court upheld the lower courts’ factual findings that the valid transfer was by donation, not sale, as the deed of sale was unsigned and unregistered, whereas the donation was duly executed and registered. Since the donated lot was Gregorio’s sole property at his death, the donation was inofficious under Article 752 of the Civil Code, as it exceeded the freely disposable portion and impaired Constancia’s legitime.
On prescription, the Court ruled the ten-year period to reduce an inofficious donation under Article 771 accrues only upon the donor’s death, when the net estate and legitime can be determined. Gregorio died in 1986; Constancia filed her action in 1991, well within the prescriptive period. Consequently, the donation was reduced. One-half of the lot was awarded to Constancia as her legitime, and the remaining half was retained by Rolando as his legitime and by virtue of the donation.