G.R. No. L-7820 April 30, 1957
Miguel Caram and Fermin G. Caram, petitioners, vs. The Honorable Court of Appeals and Rosario Montilla, respondents.

FACTS

Juan Caram and his wife Maria Gacibe died in 1939, leaving as legitimate heirs their five children: Miguel, Fermin, Magdalena, Elena, and Salud Caram. The spouses owned the Hacienda Montelibano. On October 19, 1949, Elena Caram sold a portion of her share to Rosario Montilla. On December 9, 1949, all five Caram heirs executed a partition agreement (“convenio”) for the hacienda. On December 15, 1949, the probate court approved this partition and declared the five as sole heirs, ordering the distribution and adjudication of their respective shares. On December 19, 1949, Salud Caram sold her share to Rosario Montilla, annulling two prior sales. In accordance with the partition, the hacienda was subdivided and lots were raffled to the heirs on January 26, 1950. On February 15, 1950, Miguel and Fermin Caram, having heard rumors of the sales, notified Rosario Montilla of their intent to repurchase the shares sold by their sisters. Upon her refusal, they filed an action on February 23, 1950, invoking the right of legal redemption under Article 1067 of the Civil Code for sales made by a co-heir before partition.

ISSUE

Whether petitioners Miguel and Fermin Caram have the right to legally redeem the portions of the Hacienda Montelibano sold by their co-heirs Elena and Salud Caram to respondent Rosario Montilla.

RULING

No. The Supreme Court denied the petition and affirmed the decision of the Court of Appeals.
Regarding the sale by Salud Caram (Exhibit N dated December 19, 1949), it occurred after the court-approved partition on December 15, 1949. Article 1067 applies only to sales made by a co-heir before partition; therefore, no right of redemption arose from this sale.
Regarding the sale by Elena Caram (Exhibit M dated October 19, 1949), it occurred before the partition. However, the petitioners’ right of redemption under Article 1067 may be exercised only before partition. Here, the right was asserted after the partition agreement was executed and approved by the court, and after the property had been actually subdivided and distributed by lot to the heirs. The co-ownership terminated upon the raffle on January 26, 1950. The legal redemption among co-owners presupposes the existence of co-ownership; once the property is subdivided and distributed, the community ends and the right of legal redemption ceases. The Court also rejected the petitioners’ argument that the partition was void due to lack of information about prior sales, noting that annulment of the partition would require all other heirs to be made parties, which was not done.