REYNALDO and NANCY RODRIGUEZ vs. CONCORDIA ONG LIM, et al.

Friday, November 17

REYNALDO and NANCY RODRIGUEZ vs. CONCORDIA ONG LIM, et al.


REYNALDO and NANCY RODRIGUEZ vs. CONCORDIA ONG LIM, et al.
G.R. NO. 135817
NOVEMBER 30, 2006

PONENTE: CALLEJO, SR., J.

FACTS:

Pablo Goyma Lim, Jr. filed with the RTC a complaint for cancellation of COT and injunction against the spouses Rodriguez with the allegation that his mother, Dominga Goyma, was the owner of two parcels of land, registered in her name on February 6, 1948. One of the subject lands is situated in the Pagbilao, Quezon, and the other in the Atimonan, Quezon. Pablo claimed that he exclusively possessed the same until her death on July 19, 1971.

Pablo claimed that he succeeded to all her rights of ownership and possession after her death. However, the spouses Rodriguez, despite their knowledge that the son was now the owner and possessor, allegedly unlawfully and fraudulently made it appear that they had purchased the subject lots from persons who were not the owners thereof.

The spouses Rodriguez allegedly caused the cancellation of TCT despite the fact that the owner's duplicate copy was in the possession of Pablo. A TCT was issued in the name of Frisco Gudani, estranged husband of Dominga. This title was cancelled by another TCT issued in the name of Eduardo Victa, and again, was cancelled by another TCT issued in the name of the spouses Rodriguez, All the the aforementioned TCTs were issued on February 10, 1975.

On the other hand, the spouses Rodriguez alleged that Dominga was not the mother of Pablo. They averred that the subject lots were the conjugal property of Frisco and Dominga, when the latter died, Frisco was her sole surviving heir. Thereafter, Frisco allegedly sold the subject lots to Eduardo who, in turn, sold the same to the spouses Rodriguez. The latter claimed that they were purchasers in good faith and for value.

            On September 8, 1988, in the course of the trial, Pablo died and was duly substituted by his spouse, Concordia Ong Lim and children.

            A deposition of Frisco was taken on October 22, 1977, which stated, that Frisco was married to Dominga, after 11 months, they separated and the former left the conjugal dwelling. He knows that Dominga died and that Pablo is her son. Atty. Alejandro Aguilan, who helped him prepared an affidavit, asked him to signed it otherwise the property he will receive will be forfeited in favour of the government. He does not know anything about the parcels of land. The lawyer took advantage of Frisco and persuaded him to agree to the transactions.

            Thereafter, the RTC held in favor of Pablo. CA affirmed the lower court’s decision

ISSUE:

            Whether the  principle of idefeasibility of title applies to this case.

HELD:

No. Spouses cannot raise the defense of indefeasibility of a Torrens title with respect to TCT because "the principle of indefeasibility of a Torrens title does not apply where fraud attended the issuance of the title. The Torrens title does not furnish a shield for fraud."

They cannot deny any knowledge of the fraud that attended the transactions involving the subject lots, including their acquisition thereof. Stated differently, petitioners cannot claim that they were purchasers in good faith and for value because the transactions involving the subject lots were so replete with badges of fraud and irregularities that should have put them on guard about the defects in the respective titles of Frisco and Eduardo.

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