GR L 4340; (May, 1952) (5) (Digest)
G.R. No. L-4340, L-4341, L-4342, L-4343, L-4344, L-4345, L-4346; May 28, 1952
REBECCA LEVIN, plaintiff-appellee, vs. JOAQUIN V. BASS, ET AL., defendants. EUGENIO MINTU, defendant-appellant. (L-4340)
JOAQUIN V. BASS, plaintiff-appellee, vs. JOSE C. ROBLES, ET AL., defendants. REBECCA LEVIN, ET AL., intervenors. EUGENIO MINTU, intervenor-appellant. (L-4341)
JOAQUIN V. BASS, plaintiff-appellee, vs. EUGENIO MINTU, defendant-appellant. (L-4342)
REBECCA LEVIN, plaintiff-appellee, vs. JOAQUIN V. BASS, defendant-appellant. (L-4343)
JOAQUIN V. BASS, plaintiff-appellant, vs. REBECCA LEVIN, defendant-appellee. (L-4344)
JOAQUIN V. BASS, plaintiff-appellant, vs. JOSE C. ROBLES and AMINTA T. DE ROBLES, defendants-appellees. (L-4345)
JOAQUIN V. BASS, plaintiff-appellant, vs. AMINTA T. DE ROBLES, defendant-appellee. (L-4346)
FACTS
These consolidated cases revolve around properties at 326 and 328 San Rafael Street, Manila, originally owned by Rebecca Levin, an illiterate widow. In late 1943/early 1944, Joaquin V. Bass, representing himself as a real estate broker, persuaded Levin to sell her house and lot at No. 326 by falsely claiming a Japanese buyer was interested and that she could use the proceeds to buy a better property on Antonio Rivera Street. Relying on his representations, Levin signed documents which Bass presented as merely an “authority to sell.” These documents turned out to be a deed of absolute sale (Exhibit A) of No. 326 to Emiliano Eustaquio for P30,000, and later a deed of sale (Exhibit C) of No. 328 to Bass himself for P65,000. Bass took Levin’s title and paid off an existing mortgage, but retained most of the money, giving her a false receipt for a property she never acquired. Bass subsequently sold No. 326 to Eustaquio (Exhibit A), who then sold it to Bass (Exhibit B). Bass later sold No. 326 to Eugenio Mintu under certain conditions. Bass obtained Torrens titles in his name. Levin filed actions to annul the sales. The trial court annulled the sales (Exhibits A, B, C), ordered the cancellation of Bass’s titles and their reissuance in Levin’s name, dismissed Bass’s various detainer actions, and ordered Bass to account for and pay collected rentals to Levin.
ISSUE
The central issue is the validity of the titles acquired by Joaquin V. Bass through fraud and whether an innocent purchaser for value, Eugenio Mintu, acquired a valid title to the property at 326 San Rafael Street despite the fraudulent origin.
RULING
The Supreme Court modified the trial court’s decision. It upheld the annulment of the sales to Bass due to fraud and declared Bass’s titles void. However, regarding the property at No. 326 San Rafael Street, the Court ruled in favor of intervenor-appellant Eugenio Mintu. The Court found that Mintu was an innocent purchaser for value who acquired the property from Bass after Bass had obtained a Torrens certificate of title. Applying the principle of indefeasibility of a Torrens title, the Court held that as between two innocent parties (Levin and Mintu), the one whose act (Levin’s signing of the documents) made the fraud possible must bear the loss. The Court declared Mintu the rightful owner of No. 326 since November 8, 1944, entitled to its possession and rentals, subject to an existing registered mortgage. The rest of the trial court’s judgment was affirmed. The Court also directed the City Fiscal of Manila to investigate Joaquin V. Bass and notary public Eliezer A. Manikan for their roles in the fraudulent transactions.