POSITION PAPER
Atty. Senen de Santos
with no known offsprings that may or could have possibly survived him. He,
however, was survived by his sister and his nieces and nephews. Since
Marino was a successful business man, he acquired numerous properties
all throughout his life from jewelries, properties and shares of stock in a
multiple businesses.
The decedent died and without issue on October 9, 2008 while he
was in the care of Ambrose M. Azucena, herein defendant and the nephew
of the decedent, and Guadalupe M. Azucena, the sole surviving sibling go
the decedent. They took care of the decedent from the he suffered a stroke
up until his death. All were provided by Ambrose and his mother especially
utmost care, attention and love. All of the relatives of the decedent were
welcome when it comes to visiting him, however at times were not allowed
due to the decedents sorry state.
On February 14, 2008, the decedent executed the Deed of Donation
Inter vivos whereby he donated his Bel-Air Property in favor of Ambrose. A
copy of the Deed of Donation was executed. The execution was witnessed
by decedents three (3) friends. Judge Bienvenido V. Reyes prepared and
notarized the Deed of Donation inter vivos. The title of the Bel-Air property
covered by TCT No. 113638 was thereafter transferred to Ambrose. The
Registry of Deeds of the City of Makati then issued TCT No. 225884 in
2009.
During the intestate proceedings, the Plaintiffs have just found out
that subject property was donated to herein defendant because it was
excluded in the inventory. They subsequently filed an action to revoke the
Deed of Donation inter vivos because it was acquired through fraudulent
means and the determination of thereof would also effectively nullify the
Transfer Certificate of Title of the defendant.
The defendants contend that the action to revoke the title has been
filed out of time because a title becomes incontrovertible and indefeasible
after the lapse of one (1) year after judgment and also said title cannot be
subject to a collateral act in the instance that it should be cancelled. Its
cancellation should be done in a direct proceeding.
ISSUES:
1.) Whether or not the complaint of the plaintiffs is barred from filing the
claim due to the setting in of the one (1) year prescriptive period?
2.) Whether or not the action of the plaintiffs was a collateral attack on the
Title?
DISCUSSION: The discussion is based primarily on the application of
Section 32 and 48 of P.D. 1529 otherwise known as the Property
Registration Decree which provides:
Section 32. Review of decree of registration; Innocent
purchaser for value. - The decree of registration shall not be
reopened or revised by reason of absence, minority, or other
disability of any person adversely affected thereby, nor by any
proceeding in any court for reversing judgments, subject,
however, to the right of any person, including the government
and the branches thereof, deprived of land or of any estate or
interest therein by such adjudication or confirmation of title
obtained by actual fraud, to file in the proper Court of First
Instance a petition for reopening and review of the decree of
registration not later than one year from and after the date of
the entry of such decree of registration, but in no case shall
such petition be entertained by the court where an innocent
purchaser for value has acquired the land or an interest therein,
whose rights may be prejudiced. Whenever the phrase
"innocent purchaser for value" or an equivalent phrase occurs
in this Decree, it shall be deemed to include an innocent lessee,
mortgagee, or other encumbrancer for value.
Upon the expiration of said period of one year, the decree
of registration and the certificate of title issued shall become
incontrovertible. Any person aggrieved by such decree of
registration in any case may pursue his remedy by action for
damages against the applicant or any other persons
responsible for the fraud.1
and
Section 48. Certificate not subject to collateral attack. - A
certificate of title shall not be subject to collateral attack. It
1 AMENDING AND CODIFYING THE LAWS RELATIVE TO REGISTRATION OF PROPERTY AND FOR
OTHER PURPOSES, [PROPERTY REGISTRATION DECREE]], P.D. 1529, Sec. 32 (1978).
14 De Guzman, supra.
In the instant case, the plaintiffs primary action is to nullify the deed of
donation of the decedent to the herein defendant, however, the judgment
on the former issue will also bring an attack on the judgment on the validity
of the transfer certificate of title of the defendant. An above-mentioned
case, Taparuc v. Loquellano vda de Mende, the Supreme Court ruled
that:
A Torrens title cannot be collaterally attacked. The question on
the validity of a Torrens title, whether fraudulently issued or not,
can be raised only in an action expressly instituted for that
purpose. The title represented by the certificate cannot be
changed, altered, modified, enlarged, diminished, or cancelled
in a collateral proceeding. The action for the declaration of
nullity of deed of sale commenced by the petitioners in the RTC
of Tagbilaran City is not the direct proceeding required by law to
attack a Torrens certificate of title.20
CONCLUSION:
In consideration of the arguments presented above in defending and
subsequently exploiting both sides, I am inclined to favor the side of the
defendants in terms of consistency to the law without being subjected to
speculations of factual antecedents that has not yet been determined by
the trial court.
The side of the Plaintiffs in terms of the appreciation of their
arguments are heavily reliant on the finding of fraud in the making of the
Deed of Donation. That it creates a heavy imposition whether or not to
apply the various case law that would allow a collateral attack on the
transfer certificate of title of the herein defendant.
On the other hand, the defendants are much more consistent with the
application of the law, particularly Sec. 32 and 48 of the Property
Registration Decree. Just basing on the facts, you could plainly ascertain
that a.) the plaintiffs are barred from filing an action for fraud on the title of
Ambrose Azucena; and b.) the attack on the validity of the title of Ambrose
Azucena is an incident to the action of the cancellation of the Deed of
Donation. P.D. 1529 and case law clearly prohibits such actions. The nonappliance of the following would render the Torrens System useless in its
20 Taparuc, supra.