G.R. No. 48372; July 24, 1942
Generosa Teves de Jakosalem, plaintiff-appellant, vs. Nicolasa Rafols, ET ALS., defendants-appellees.

FACTS

The land in question originally belonged to Juan Melgar. After his death, judicial administration of his estate commenced in 1915 and closed on December 2, 1924. During this administration, on July 5, 1917, Susana Melgar, Juan Melgar’s daughter, sold the land with a right of repurchase to Pedro Cui, stipulating she would remain in possession as lessee during the repurchase period. On December 12, 1920, the estate of Juan Melgar was partitioned, and the land was adjudicated to Susana Melgar. In 1921, Susana Melgar conveyed one-half of the land to defendant Nicolasa Rafols in payment of professional fees, and Rafols took possession of that portion. On July 23, 1921, Pedro Cui filed an action to recover the half from Rafols and the other half from other defendants. While that case was pending, around August 4, 1925, Pedro Cui donated the entire land to plaintiff Generosa Teves de Jakosalem. The lower court rendered a decision absolving Nicolasa Rafols regarding the half conveyed to her and declaring the plaintiff owner of the other half, with acknowledgment from other defendants. The plaintiff appealed the part of the judgment favorable to Rafols.

ISSUE

Whether the sale of the land by heir Susana Melgar to Pedro Cui during the judicial administration of Juan Melgar’s estate was valid and effective against a subsequent conveyance by Susana Melgar to Nicolasa Rafols.

RULING

The Supreme Court reversed the appealed decision. The lower court erred in holding that Susana Melgar could not sell the land to Pedro Cui because it was in custodia legis (under judicial administration). While property in custodia legis is generally protected from execution to avoid interference with the court’s possession, an heir may sell his or her right, interest, or participation in the inheritance, subject to the outcome of the administration. Under Article 440 of the Civil Code, possession of hereditary property is transmitted to the heir from the moment of the decedent’s death upon acceptance of the inheritance. Each heir becomes an undivided owner of the whole estate with respect to their prospective share, creating a community of ownership. According to Article 399 of the Civil Code, every part-owner may assign his part in the common property, with the effect limited to the portion allotted upon partition. Therefore, the sale by Susana Melgar to Pedro Cui was valid, effective only as to the portion later adjudicated to her. Upon partition on December 12, 1920, the land was adjudicated to Susana Melgar, entirely confirming the sale to Pedro Cui. Consequently, the subsequent 1921 conveyance by Susana Melgar to Nicolasa Rafols could no longer be effected. In a double sale scenario where neither purchaser registered the sale, priority is given to the first in possession. Pedro Cui’s possession, through Susana Melgar as lessee, was confirmed on December 12, 1920, preceding Rafols’s possession beginning in 1921. Prescription of action was not available to Rafols, as Pedro Cui filed his complaint in 1921, the year following confirmation of his sale. Rafols was ordered to deliver one-half of the land to plaintiff Generosa Teves de Jakosalem and to pay damages of P90 per year from July 23, 1921, until delivery, with costs.