G.R. No. L-7153; March 26, 1913
THE MUNICIPALITY OF NUEVA CACERES, petitioner-appellee, vs. THE DIRECTOR OF LANDS and THE ROMAN CATHOLIC BISHOP OF NUEVA CACERES, opponents. THE ROMAN CATHOLIC BISHOP OF NUEVA CACERES, appellant.

FACTS

The Municipality of Nueva Caceres applied for land registration of a lot with a schoolhouse built between 1875 and 1878. The Roman Catholic Bishop of Nueva Caceres opposed, claiming ownership, as the lot was gratuitously ceded to Bishop Francisco Gainza in 1875, and he funded and supervised the school’s construction. The Director of Lands also opposed, asserting State ownership. The Insular Government and the Municipality later compromised, with the Government ceding its rights to the Municipality. The trial court dismissed the Church’s opposition, declaring the property belonged to the State (and thus, by cession, to the Municipality). The Church appealed.

ISSUE

Whether the schoolhouse and the lot are the property of the Roman Catholic Church or of the Insular Government (and subsequently the Municipality).

RULING

The property belongs to the Roman Catholic Church. The Supreme Court reversed the trial court’s decision. The lot was donated to Bishop Gainza, and he used church funds to construct the school. The Bishop managed the school until his death, after which priests continued involvement. While the Government later contributed to teachers’ salaries and the school was considered a “public” or municipal school, this was under the historical context where Catholicism was the state religion. The school was open to the public precisely to teach the Catholic faith, and its classification as a public service building did not negate church ownership. The Church never parted with its title to the property. The petition for registration was dismissed.