G.R. No. 33023 , September 16, 1930
IGNACIO ARROYO, petitioner-appellee, vs. JACOB GERONA, ET AL., movants-appellants.

FACTS

In the intestate estate proceedings of Concepcion Gerona, the heirs (Victor, Jacoba, Patricia, Ciriaca, and Clara Gerona, all of age) executed an extrajudicial agreement of partition dated June 13, 1913, assigning the entire estate to Ignacio Arroyo in exchange for other property. Ignacio Arroyo filed an application for the court to declare him the sole heir. On October 8, 1928, the probate court approved the partition agreement (Exhibit A), declared the listed individuals as heirs, ratified the adjudication of specific lots to Arroyo, and closed the proceedings. Later, some heirs (Jacoba, Ciriaca, Clara, and Patricia Gerona) filed a motion to annul the 1913 and a subsequent 1928 agreement, alleging they were contrary to law and fraudulently executed. They also sought the appointment of a judicial administrator. The probate court dismissed the motion, ruling it lacked jurisdiction to annul the agreements, leaving that issue for an ordinary action. The heirs appealed.

ISSUE

Whether a probate court that approved an extrajudicial partition agreement has the jurisdiction to annul or set aside that approval on grounds of fraud.

RULING

Yes. The Supreme Court reversed the orders of the lower court. The probate court that possessed jurisdiction to approve the partition agreement also has the inherent power to annul or set aside its approval if such approval was obtained through fraud, deceit, mistake, or other vitiating defects. An extrajudicial partition, once submitted to and approved by the court, becomes a judicial partition, and the order approving it is final and binding. However, this finality does not preclude an action for annulment based on fraud. The power to vacate a judgment or order procured by fraud is an exception to the rule on the immutability of final judgments and is inherent in a court to prevent an abuse of its processes. The case was remanded to the probate court to hear and determine the claims of fraud raised by the appellants.