G.R. No. 68843 -44, September 2, 1991
Mariquita O. Sumaya and Laguna Agro-Industrial Coconut Cooperative, Inc. vs. The Hon. Intermediate Appellate Court, and Amadeo, Sancho, Donato, Luis, Erasto, Luisa, Jose and Dolores, all surnamed Balantakbo

FACTS

Raul Balantakbo inherited two sets of properties: a 1/3 interest from his father and a 1/7 interest from his maternal grandmother. Raul died intestate, single, and without issue in 1952, leaving his mother, Consuelo Joaquin Vda. de Balantakbo, as his sole heir. Consuelo executed an affidavit adjudicating these properties to herself. Subsequently, she sold the properties to Mariquita Sumaya and Villa Honorio Development Corporation, who later transferred them to Laguna Agro-Industrial Coconut Cooperative, Inc. The certificates of title issued contained no annotation of any reservable character. Consuelo died in 1968.
In 1970, the respondents, who are Raul’s brothers and nephews (relatives within the third degree from whom Raul inherited), filed cases to recover the properties, claiming they were subject to a reserva troncal in their favor. The trial court ruled for the respondents, ordering reconveyance and accounting of fruits. The Intermediate Appellate Court affirmed the decision.

ISSUE

Whether the properties inherited by Raul from his ascendants are subject to reserva troncal in favor of the respondents upon Consuelo’s death, and whether the respondents’ cause of action had prescribed.

RULING

Yes, the properties are subject to reserva troncal, and the action has not prescribed. The Supreme Court affirmed the appellate court’s decision with a modification regarding annotation. The legal logic is as follows: Reserva troncal under Article 891 of the Civil Code requires that property inherited by a descendant from an ascendant or relative within the third degree must be reserved for the benefit of relatives within the third degree from whom the property originated, if the descendant dies without issue. Here, Raul inherited the properties from his father and grandaunt (ascendants/relatives within the third degree). He died without issue. Thus, his mother, Consuelo, as his heir, held the property as a reservor, with a legal obligation to reserve it for the benefit of Raul’s relatives within the third degree from whom the property came—namely, his brothers and nephews (the respondents). The reserva is a special, gratuitous, and real right in rem that follows the property regardless of transfers. The Court clarified that while annotation of the reservable character on the title is ideal for protecting third parties, the lack thereof does not extinguish the reserva itself, as it is a legal imposition created by statute.
On prescription, the cause of action accrued not upon Raul’s death in 1952, but upon the death of the reservor, Consuelo, in 1968, as the respondents’ right of full ownership vested only then. Their filing in 1970 was well within the 30-year prescriptive period under Article 1141 of the Civil Code. The awards for litigation expenses and attorney’s fees were upheld as the respondents were compelled to litigate.