G.R. No. 6638 , December 28, 1911
LEOPOLDO CAÑIZARES TIANA, plaintiff-appellee, vs. JOSE M. S. TORREJON, defendant-appellant.

FACTS

Leopoldo Cañizares Tiana purchased a parcel of land with improvements in Jolo from Jose M. S. Torrejon for P2,500. The deed of sale contained an express warranty of title, wherein Torrejon bound himself to defend the title against any just claims. Prior to the sale, Torrejon had filed an application for registration of the same land (Land Registration Case No. 1440). After the sale, Torrejon continued prosecuting the registration case, later informing the court of the transfer to Tiana, who then took over the proceedings. The government opposed the registration, claiming the land was within a military reservation. Despite extensions granted to present evidence, Torrejon failed to provide the necessary proof. Consequently, the Court of Land Registration dismissed the application and declared the land public property. In May 1908, the military authorities took possession of the land. Tiana demanded repayment of the purchase price from Torrejon, who refused, leading Tiana to file this action for breach of warranty of title.

ISSUE

Whether the vendor, Torrejon, is liable for breach of warranty of title under Article 1475 of the Civil Code, given that the vendee, Tiana, lost the property due to a prior claim of the government.

RULING

Yes, the vendor is liable. The Supreme Court affirmed the lower court’s decision, holding that all requisites for an action upon warranty of title were present: (1) a final judgment (the dismissal of the registration case declaring the land public property); (2) the vendee was deprived of the whole property; and (3) the claim (the government’s prior right) existed before the sale. The Court rejected Torrejon’s defense that the judgment was not final because Tiana did not appeal, citing Manresa’s commentary that the vendee’s right is not impaired by failing to appeal. It also dismissed Torrejon’s claim of lack of notice, as he was the original applicant in the registration case and was aware of the government’s opposition. Accordingly, Torrejon was ordered to return the purchase price of P2,500 and pay monthly rents of P36 from May 1908 until the judgment’s execution.