G.R. No. 39975. June 30, 1989.
FRANCISCA MADARCOS and TELESFORO CATAIN, petitioners, vs. HON. EUFROCINIO S. DE LA MERCED, Palawan Court of First Instance Judge, Branch I and LORETO STA. MARIA, respondents.

FACTS

The case involves a parcel of land originally granted under a homestead patent to the spouses Benito Catain and Andrea Madarcos, who died without children or a will. Their estate passed by intestate succession to their nephews and nieces, including petitioners Francisca Madarcos (Andrea’s niece) and Telesforo Catain (Benito’s nephew). The heirs partitioned the land, with one lot (Lot B) being adjudicated to and titled in the name of petitioner Francisca Madarcos.
On May 19, 1972, Francisca Madarcos sold Lot B to respondent Loreto Sta. Maria. Subsequently, petitioners demanded the reconveyance of the lot under Section 119 of the Public Land Act (Commonwealth Act No. 141), which grants a right of repurchase to the applicant, widow, or “legal heirs” within five years from conveyance. Upon the vendee’s refusal, petitioners filed an action for repurchase. The trial court dismissed the complaint, ruling that petitioners were not the “legal heirs” contemplated by the law, interpreting the term to mean only compulsory heirs under the Civil Code, such as descendants or ascendants, thereby excluding collateral relatives like nieces and nephews.

ISSUE

Whether petitioners, as nieces and nephews of the deceased homesteaders who inherited by intestate succession, qualify as “legal heirs” under Section 119 of the Public Land Act with the right to repurchase the homestead land.

RULING

The Supreme Court reversed the trial court’s restrictive interpretation and held that the term “legal heirs” in Section 119 of the Public Land Act is to be construed in a generic sense. It encompasses any person called to the succession, whether by will or by operation of law, and is not limited to compulsory heirs. The law’s primary purpose is to keep the homestead within the family of the grantee as a benevolent policy to support land-destitute citizens. This policy extends protection not only to the original applicant but also to those entitled to succeed them.
Applying the rules on intestate succession, the Court found that since the deceased spouses died without descendants, ascendants, or a surviving spouse, their estate rightly passed to their collateral relatives—their nephews and nieces—within the fifth degree under Article 1010 of the Civil Code. Consequently, petitioners are legal heirs of the homesteaders. However, the right to repurchase under Section 119 is personal to the vendor-heir who alienated the property. Therefore, only petitioner Francisca Madarcos, who sold Lot B, could exercise the right of repurchase. Telesforo Catain, while also a legal heir, had no such right over the specific lot sold by Francisca.
The Court modified the trial court’s order, directing respondent Loreto Sta. Maria to execute a deed of resale in favor of Francisca Madarcos upon payment of the redemption price, while affirming the dismissal of the complaint as to Telesforo Catain.