SALVADOR VS MARIA

MARGARITA SALVADOR=Plaintiff (heir of Celestino Salvador)

JUDGE ANDRES STA. MARIA=Respondent

Case 1: Action for reconveyance instituted by Celestino Salvador
Case 2: Special Proceedings the probate of Celestino Salvadors will

FACTS:

1. Celestino Salvador sold parcels of land to Alfonso Salvador and Anatolia Halili. (7 parcels of land)

2. Celestino filed a case for reconveyance (Case 1) on the ground that the sale was void.

3. Celestino died testate. His heirs substituted him as plaintiff in the action for reconveyance.

4. Special Proceedings (Case 2) for the probate of his will and for letters testamentary was instituted.

5. Ruling in Case 1: In favor of Celestino Salvadors Heirs. The court ordered the reconveyance of the
property to the plaintiffs.

6. Lot 6 (one of the properties subject of the reconveyance and special proceedings case 1 & 2) was sold so
that the creditors who filed claims may be paid. Philippine National Bank bought it at P41,184

ISSUES in Case 2

1. Are the parcels of land and the proceeds of the sale of one of them (Lot 6), properties of the estate or
not?
2. Does final judgment in the reconveyance suit (Case 1) in favor of the twenty-one so called heirs who
substituted Celestino Salvador, bar the disposition of the reconveyed properties by the settlement court
(Case 2)?
a. Note: if it will bar, creditors are not entitled to be paid out of the proceeds of the sale of Lot 6 to
Philippine National Bank

HELD in Case 2

Issue No. 1: Yes, the properties are part of the estate

Rationale: Margarita Salvador is estopped from questioning the ownership of the properties because of the fact
that she substituted Celestino Salvador in the reconveyance proceeding. It follows that the properties they claim
are, even by their own reasoning, part of Celestinos estate. (note: Celestino Salvador first instituted the
reconveyance proceeding and was later substituted by Margarita in her capacity as an heir)

Issue no. 2: No, it will not bar the disposition of the reconveyed properties by the settlement court

Rationale: They cannot distribute said properties among themselves as substituted heirs without the debts of the
estate being first satisfied.


letters testamentary - a document issued by the court clerk which states the authority of the executor of an estate
of a person who has died. It is issued during probate of the estate as soon as the court approves the appointment
of the executor named in the will and the executor's files a security bond if one is necessary (most well-drafted
wills waive the need for a bond). Certified copies of the letters are often required by banks and other financial
institutions, the federal government, stock transfer agents or other courts before transfer of money or assets to
the executor of the estate