G.R. No. L-11764; January 31, 1959
ENRIQUE CUISON, ET AL., plaintiffs-appellees, vs. ISIDRO G. FERNANDEZ and ANTONIO BENGZON, defendants-appellants.

FACTS

The plaintiffs, heirs of Vicenta Mejia, sought to recover possession and ownership of one-half of two parcels of land from defendant Isidro G. Fernandez, with defendant Antonio Bengzon (Registrar of Deeds) impleaded in his official capacity. The lands were originally registered under Original Certificate of Title No. 18699 as conjugal property of spouses Domingo Cuison and Vicenta Mejia. Vicenta Mejia died on April 15, 1923. On July 1, 1925, the surviving spouse Domingo Cuison sold the entire parcels to Isidro G. Fernandez for P2,100. Fernandez registered the deed and obtained Transfer Certificate of Title No. 2476 in his name. Prior to this, on May 9, 1922, the spouses had sold the lands via pacto de retro to Marcos Viray Ferrer for P800, redeemable within three years. On July 2, 1925, Domingo Cuison repurchased the lands from Ferrer. Fernandez had been in continuous adverse possession since 1925. The plaintiffs filed the complaint in 1950.

ISSUE

Whether the sale by the surviving spouse Domingo Cuison of the entire conjugal property after the death of his wife Vicenta Mejia is valid as to her share, and whether prescription or laches can bar the heirs’ action to recover said share.

RULING

The Supreme Court affirmed, with modification, the trial court’s judgment declaring the plaintiffs entitled to a one-half pro indiviso share of the lands as heirs of Vicenta Mejia. The sale by the surviving spouse Domingo Cuison of the conjugal property without observing the formalities for the sale of a deceased person’s property is void as to the share of the deceased spouse. The vendee, Isidro G. Fernandez, becomes a trustee of that share for the benefit of the heirs. Prescription cannot be invoked as a defense in an action to recover property held in trust. Laches is similarly unavailing. The Court found Fernandez to be a purchaser in good faith. However, the award for unrealized crop yields (damages) was modified: it would commence only from the finality of judgment if delivery of the share is delayed, and the amount was to be set off against the plaintiffs’ obligation to pay P400 (representing their predecessor’s share in the P800 pacto de retro loan used to repurchase the property). The Register of Deeds was ordered to cancel Fernandez’s title and issue a new one reflecting the co-ownership.