G.R. No. L-5829 May 22, 1953
Jose Nono, plaintiff-appellant, vs. Ruperto Nequia, et al., defendants-appellees.

FACTS

On August 16, 1947, Jose Nono filed a complaint against Ruperto Nequia to recover a parcel of land under Tax Declaration No. 4376 in Miagao, Iloilo. Ruperto Nequia filed his answer but died on July 8, 1948; his children (Damaso, Javito, Asuncion, Juan, Basilio, Lucas, and Pedro, all surnamed Nequia) were substituted and filed an amended answer. The parties submitted a stipulation of facts, which established the following: The land originally belonged to Nicolas Quilantang, who died intestate in 1928, leaving his sister Catalina Quilantang as his heir. Catalina Quilantang had two children: Ruperto Nequia and Rafael Nequia. Rafael Nequia died in 1912, before his mother, but left a son, Fernando Nequia, with his wife Margarita Noble. Catalina Quilantang died in 1930, leaving as her heirs her son Ruperto Nequia and her grandson Fernando Nequia (representing his predeceased father Rafael). Margarita Noble, wife of Rafael and mother of Fernando, died on March 10, 1946; Fernando Nequia himself died in 1932. Margarita Noble executed a deed of sale over the land in favor of plaintiff Jose Nono on February 20, 1946. The land was inherited by Fernando Nequia from his grandmother Catalina Quilantang by intestate succession, representing his father Rafael. Upon Fernando’s death in 1932, the land was inherited from him by his mother Margarita Noble by intestate succession, subject to the provision of Article 811 of the Spanish Civil Code. The issue is whether plaintiff Jose Nono is entitled to the property by virtue of the deed of sale from Margarita Noble, or whether defendant Ruperto Nequia is entitled by virtue of Article 811. The deed of sale is a public document registered on September 11, 1946. The land was possessed by Ruperto Nequia since Margarita Noble’s death in 1946; prior to that, Margarita Noble and her son Fernando were in possession after Catalina’s death in 1930. The trial judge ordered the rescission of the sale and declared Ruperto Nequia the owner of the property. Plaintiff appealed.

ISSUE

Whether, under Article 811 of the Civil Code (on reserva troncal), the sale of the land by Margarita Noble to Jose Nono is valid, or whether the property reverts to Ruperto Nequia, a relative within the third degree in the line from which the property came.

RULING

The Supreme Court affirmed the trial court’s decision, declaring Ruperto Nequia (and subsequently his heirs) the owner of the property, and rescinding the sale to Jose Nono. The Court held that the reserva troncal under Article 811 imposes a resolutory condition on the right of the ascendant (Margarita Noble) who inherits from a descendant (Fernando Nequia). If, at the time of the ascendant’s death, the descendant has relatives within the third degree belonging to the line from which the property came, those relatives acquire the property by operation of law. Consequently, the successors or transferees of the ascendant lose the property. Applying this to the case: Margarita Noble inherited the land from her son Fernando, who had acquired it gratuitously from his grandmother Catalina Quilantang. Therefore, Margarita was obligated to reserve the property. At her death on March 10, 1946, Ruperto Nequia, Fernando’s uncle (a relative within the third degree in the paternal line), was still alive. Thus, by operation of Article 811, the property automatically passed to Ruperto upon Margarita’s death. The sale executed by Margarita in favor of Jose Nono was subject to this resolutory condition. Since the condition occurred (Ruperto survived Margarita), the sale was automatically rescinded. The registration of the sale did not prejudice Ruperto’s reservatory right, as his right was contingent and dependent on his survival. The buyer, Jose Nono, could not acquire more than what the seller, Margarita, could legally transfer. The property, being reservable, did not form part of Margarita’s estate for the payment of her debts, as it reverted to the troncal line. Upon Ruperto’s death in 1948, his children inherited the property as his heirs, not as reservees.