G.R. No. 219292 , June 28, 2021
CITY OF TANAUAN, PETITIONER, VS. GLORIA A. MILLONTE, RESPONDENT.

FACTS

The registered owners of a lot covered by Original Certificate of Title (OCT) No. 3243 were the Gonzaga siblings: Marcelo, Eleuteria, Pantaleona, Ambrosio, and Lucio. Respondent Gloria A. Millonte, the granddaughter of Lucio, filed a Complaint against petitioner City of Tanauan praying for the declaration of nullity of a Deed of Absolute Sale dated February 10, 1970, and the subsequent Transfer Certificate of Title (TCT) No. T-42198 issued in favor of the municipality, and for the reinstatement of OCT No. 3243. The City acquired the lot, now occupied by the Tanauan Water District, for P30,000.00 via the said deed allegedly signed by the Gonzaga siblings as vendors. Millonte asserted the deed was void because the Gonzaga siblings were already dead when it was executed. She presented a Certification from the City Civil Registrar showing Ambrosio died on December 29, 1959, and certifications stating that records of deaths prior to 1945 were destroyed during World War II, preventing her from obtaining the death certificates of the other siblings. She supported this with testimonies from relatives Rolando Gonzaga and Florentino Hernandez, who attested to the deaths of the Gonzagas prior to 1970. The City, in defense, argued prescription and its continuous possession since 1960. It presented witnesses Pedro Dario Guevarra and Francisco Lirio, who testified about the sale’s approval but admitted they did not personally know the Gonzagas, were not present at the signing, and did not verify the identities of the signatories.

ISSUE

Whether or not the Deed of Absolute Sale dated February 10, 1970, is null and void.

RULING

Yes, the Deed of Absolute Sale is null and void. The Supreme Court affirmed the decisions of the Regional Trial Court and the Court of Appeals. The Court held that Millonte successfully overcame the presumption of regularity accorded to the notarized deed by presenting clear and convincing evidence that all the purported vendors were deceased at the time of its execution. The death certificate for Ambrosio and the certifications regarding the destruction of pre-1945 civil registry records, corroborated by witness testimonies, constituted sufficient secondary evidence to prove the deaths of Marcelo, Eleuteria, Pantaleona, and Lucio prior to 1945. Since a contract requires parties with contractual capacity, and death terminates such capacity, a contract executed by a deceased person is simulated and void ab initio. A void contract produces no effect and cannot be ratified; an action to declare its nullity is imprescriptible. Consequently, TCT No. T-42198 issued to the City of Tanauan was also declared void, and OCT No. 3243 was ordered reinstated.