G.R. No. 45338 ; June 26, 1939
NATIVIDAD GONZAGA, ET AL. vs. ESTEBAN M. GUANZON, ET AL.

FACTS

Gregorio Gonzaga had children from his first marriage (including plaintiff Natividad Gonzaga and the deceased Vicente Gonzaga, whose children are also plaintiffs) and from his second marriage to Basilia Lim (including Dolores and Magdalena). Dolores married defendant Esteban Guanzon. The plaintiffs, descendants from the first marriage, filed an action claiming shares as heirs in several parcels of land originally owned by Gregorio Gonzaga or acquired by him with Basilia Lim. The defendants, Esteban Guanzon and his children, asserted ownership acquired through various transactions (sales, gifts) from Gregorio Gonzaga, Basilia Lim, and others, followed by cadastral proceedings resulting in decrees of registration in their names between 1914 and 1915. The plaintiffs alleged fraud and a trust relationship. The trial court absolved the defendants.

ISSUE

Whether the plaintiffs have a valid claim to the subject properties as heirs of Gregorio Gonzaga, despite the defendants’ evidence of acquisition by title and registered ownership.

RULING

No. The defendants are the rightful owners. The evidence established that the defendants acquired the properties through legal means (sales, gifts) from the original owners, and their ownership was subsequently confirmed by decrees of registration issued in their favor. The defendants’ possession was public and in the concept of an owner. The plaintiffs failed to prove their allegations of fraud or the existence of a trust. Any action to question the validity of the defendants’ acquisitions or the decrees of registration had already prescribed, as the youngest plaintiff had reached majority 16 years before the action was filed. Regarding the Philippine National Bank, it was an innocent purchaser for value of two lots from Esteban Guanzon, who had a valid title. The appealed judgment was affirmed.