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 two main actions concerning properties at 326 and 328 San Rafael Street, Manila, originally owned by Rebecca Levin. In late 1943/early 1944, Joaquin V. Bass, representing himself as a real estate broker, convinced the illiterate and elderly Levin to sell her house and lot at No. 326. Through misrepresentation, Bass made her sign documents she believed were merely an authority to sell. These documents turned out to be a deed of sale (Exhibit A) to Emiliano Eustaquio for P30,000, who then sold it to Bass (Exhibit B) for P38,000. Bass also obtained a deed of sale (Exhibit C) from Levin for the house and lot at No. 328 for P65,000. Bass paid Levin only P10,000 for No. 326, taking P2,000 to pay off an existing mortgage and P8,000 under the pretext of paying for a replacement property on Antonio Rivera Street, which Levin never received. Bass subsequently obtained Torrens titles in his name. On November 8, 1944, Bass sold the property at No. 326 to Eugenio Mintu. The trial court annulled the sales to Eustaquio and Bass, 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 rentals collected to Levin. It also dismissed Bass’s action to annul his sale to Mintu but ordered Bass to pay Mintu a sum of money.

ISSUE

The central issue, among others, is whether Eugenio Mintu acquired a valid title to the property at 326 San Rafael Street, Manila, as an innocent purchaser for value from Joaquin V. Bass, whose title was derived from a voidable deed obtained through fraud from the original owner, Rebecca Levin.

RULING

The Supreme Court reversed the trial court’s judgment regarding the property at No. 326 San Rafael Street. It held that Eugenio Mintu is the rightful owner of the lot and house since November 8, 1944. Mintu, as an innocent purchaser for value who relied on Bass’s clean Torrens certificate of title, acquired an indefeasible title. The Court applied the principle that “as between two innocent persons, one of whom must suffer the consequence of a breach of trust, the one who made it possible by his act of confidence must bear the loss.” Levin, by entrusting her title and signing the documents without reading them (despite the presence of literate companions), made the fraud possible. Therefore, she must bear the loss, not Mintu. The awards made by the trial court to Levin concerning the No. 326 property are deemed awarded to Mintu, subject to the registered mortgage in favor of Co Chin Leng. 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.