G.R. No. L-4824, February 13, 1912
IN RE: ESTATE OF BERNARDO RAFANAN LAO SAYCO, ALIAS SAYA. LAY CHUYTING, appellant.

FACTS

Bernardo Rafanan Lao Sayco, a Chinese citizen, died intestate in Mambajao, Misamis, leaving real and personal property. The municipal council of Mambajao filed a petition in the Court of First Instance, claiming the estate for the municipality under Act No. 190 (Code of Civil Procedure), alleging the decedent left no known legitimate heirs. Lao Chiama, as administrator of the estate and guardian of the minor Lay Chuyting, opposed, asserting that Lay Chuytinga nephew of the decedent residing in Chinawas the legal heir. The trial court awarded the estate to the Municipality of Mambajao for school purposes. Lao Chiama appealed.

ISSUE

Whether the trial court properly awarded the estate to the Municipality of Mambajao under the statutory procedure for escheat.

RULING

No. The Supreme Court reversed the trial court’s judgment and dismissed the proceedings.

The Court held that for escheat under Section 750 of the Code of Civil Procedure, strict compliance with procedural requirements is indispensable. The municipality must initiate an “inquisition” to determine key facts: the property’s details, whether a will existed, and whether any heirs existed locally. Notice to potential claimants must be published for at least six consecutive weeks. Here, the record showed no such inquisition was conducted, and notice was published for only three weeks, not six as required. The municipality’s mere petition for reversion, without the requisite investigation and proof, was insufficient. The proceedings were dismissed without prejudice to any rightful claims to the estate.