2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES / ACKNOWLEDGMENTS / Dyannah Alexa Marie Ramacho Project Jurisprudence – Philippines Supreme Court E-Library The LAWPHiL Project / Civil Law / 1 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES / ACKNOWLEDGMENTS / Dyannah Alexa Marie Ramacho Project Jurisprudence – Philippines Supreme Court E-Library The LAWPHiL Project / Civil Law / 2 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES / READ ME FIRST! / There is no penned case recorded in the following months and year April 2020 and May 2020. The author is not in any way connected or related to the Supreme Court or to Justice Marvic Leonen. / Civil Law / 3 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES CASE DOCTRINES ALEJANDRO V. TANKEH vs. DEVELOPMENT BANK OF THE PHILIPPINES G.R. No. 171428 / November 11, 2013 To justify an award for exemplary damages, the wrongful act must be accompanied by bad faith, and an award of damages would be allowed only if the guilty party acted in a wanton, fraudulent, reckless or malevolent manner. In this case, this Court finds that respondent x x x acted in a fraudulent manner through the finding of dolo incidente due to his failure to act in a manner consistent with propriety, good morals, and prudence. REX M. TUPAL vs. JUDGE REMEGIO V. ROJO A.M. No. MTJ-14-1842 / February 24, 2014 Municipal trial court judges cannot notarize affidavits of cohabitation of parties whose marriage they will solemnize. ARCO PULP AND PAPER CO., INC. vs. QUALITY PAPERS & PLASTIC PRODUCTS ENTERPRISES G.R. No. 206806 / June 25, 2014 Novation must be stated in clear and unequivocal terms to extinguish an obligation. It cannot be presumed and may be implied only if the old and new contracts are incompatible on every point. AFP RETIREMENT AND SEPARATION BENEFITS SYSTEM [AFP-RSBS] vs. REPUBLIC OF THE PHILIPPINES G.R. No. 180086 / July 2, 2014 The period of possession prior to the declaration that land is alienable and disposable agricultural land is included in the computation of possession for purposes of acquiring registration rights over a property if the land has already been declared as such at the time of the application for registration. CELERINA J. SANTOS vs. RICARDO T. SANTOS G.R. No. 187061 / October 08, 2014 The proper remedy for a judicial declaration of presumptive death obtained by extrinsic fraud is an action to annul the judgment. An affidavit of reappearance is not / Civil Law / 4 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES the proper remedy when the person declared presumptively dead has never been absent. CARLOS A. LORIA vs. LUDOLFO P. MUÑOZ, JR. G.R. No. 187240 / October 15, 2014 No person should unjustly enrich himself or herself at the expense of another. Unjust enrichment exists, according to Hulst v. PR Builders, Inc., "when a person unjustly retains a benefit at the loss of another, or when a person retains money or property of another against the fundamental principles of justice, equity and good conscience." The prevention of unjust enrichment is a recognized public policy of the State, for Article 22 of the Civil Code explicitly provides that "[e]veryperson who through an act of performance by another, or any other means, acquires or comes into possession of something at the expense of the latter without just or legal ground, shall return the same to him." It is well to note that Article 22 "is part of the chapter of the Civil Code on Human Relations, the provisions of which were formulated as basic principles to be observed for the rightful relationship between human beings and for the stability of the social order; designed to indicate certain norms that spring from the fountain of good conscience; guides for human conduct that should run as golden threads through society to the end that law may approach its supreme ideal which is the sway and dominance of justice." REMIGIO D. ESPIRITU vs. LUTGARDA TORRES DEL ROSARIO G.R. No. 204964 / October 15, 2014 Lands classified as non-agricultural in zoning ordinances approved by the Housing and Land Use Regulatory Board or its predecessors prior to June 15, 1998 are outside the coverage of the compulsory acquisition program of the Comprehensive Agrarian Reform Law. However, there has to be substantial evidence to prove that lands sought to be exempted fall within the non-agricultural classification. ROSARIO MATA CASTRO vs. JOSE MARIA JED LEMUEL GREGORIO G.R. No. 188801 / October 15, 2014 The policy of the law is clear. In order to maintain harmony, there must be a showing of notice and consent. This cannot be defeated by mere procedural devices. In all instances where it appears that a spouse attempts to adopt a child out of wedlock, the other spouse and other legitimate children must be personally notified through personal service of summons. It is not enough that they be deemed notified through constructive service. / Civil Law / 5 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES ONOFRE ANDRES vs. PHILIPPINE NATIONAL BANK G.R. No. 173548 / October 15, 2014 A bank that accepts a mortgage based upon a title which appears valid on its face and after exercising the requisite care, prudence, and diligence appropriate to the public interest character of its business can be deemed a mortgagee in good faith. The subsequent consolidation of title in its name after a valid foreclosure shall be respected notwithstanding later proof showing that the title was based upon a void transaction. AMADA COTONER-ZACARIAS vs. SPOUSES ALFREDO AND THE HEIRS REVILLA OF PAZ REVILLA G.R. No. 190901 / November 12, 2014 Well-settled is the rule that "conveyances by virtue of a forged signature ... are void ab initio [as] [t]he absence of the essential [requisites] of consent and cause or consideration in these cases rendered the contract inexistent[.]" JUAN P. CABRERA vs. HENRY YSAAC G.R. No. 166790 / November 19, 2014 Unless all the co-owners have agreed to partition their property, none of them may sell a definite portion of the land. The co-owner may only sell his or her proportionate interest in the co-ownership. A contract of sale which purports to sell a specific or definite portion of unpartitioned land is null and void ab initio. HEIRS OF GREGORIO LOPEZ vs. DEVELOPMENT BANK OF THE PHILIPPINES G.R. No. 193551 / November 19, 2014 To reiterate, the protection accorded to mortgagees in good faith cannot be extended to mortgagees of properties that are not yet registered or registered but not under the mortgagor’s name. FLORENTINO W. LEONG AND ELENA LEONG vs. EDNA C. SEE G.R. No. 194077 / December 3, 2014 Factual findings of lower courts are generally deemed conclusive and binding upon this court. In any event, "even if the procurement of title was tainted with fraud and misrepresentation, such defective title may be the source of a completely legal and valid title in the hands of an innocent purchaser for value." / Civil Law / 6 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES PHILIPPINE NATIONAL BANK vs. CARMELITA S. SANTOS G.R. No. 208293 / December 10, 2014 G.R. No. 208295 The standard of diligence required of banks is higher than the degree of diligence of a good father of a family. THE WELLEX GROUP, INC. vs. U-LAND AIRLINES, CO., LTD. G.R. No. 167519 / January 14, 2015 In one case, “The cardinal rule in the interpretation of contracts is embodied in the first paragraph of Article 1370 of the Civil Code: “[i]f the terms of a contract are clear and leave no doubt upon the intention of the contracting parties, the literal meaning of its stipulations shall control.” This provision is akin to the “plain meaning rule” applied by Pennsylvania courts, which assumes that the intent of the parties to an instrument is “embodied in the writing itself, and when the words are clear and unambiguous the intent is to be discovered only from the express language of the agreement.” It also resembles the “four corners” rule, a principle which allows courts in some cases to search beneath the semantic surface for clues to meaning. A court's purpose in examining a contract is to interpret the intent of the contracting parties, as objectively manifested by them. The process of interpreting a contract requires the court to make a preliminary inquiry as to whether the contract before it is ambiguous. A contract provision is ambiguous if it is susceptible of two reasonable alternative interpretations. Where the written terms of the contract are not ambiguous and can only be read one way, the court will interpret the contract as a matter of law. If the contract is determined to be ambiguous, then the interpretation of the contract is left to the court, to resolve the ambiguity in the light of the intrinsic evidence.” STRONGHOLD INSURANCE COMPANY, INC. vs. SPOUSES RUNE and LEA STROEM G.R. No. 204689 / January 21, 2015 It is settled that the surety’s solidary obligation for the performance of the principal debtor’s obligation is indirect and merely secondary. Nevertheless, the surety’s liability to the “creditor or promisee of the principal is said to be direct, primary and absolute; in other words, he is directly and equally bound with the principal.” / Civil Law / 7 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES HOME GUARANTY CORPORATION CORPORATION G.R. No. 168616 / January 28, 2015 vs. LA SAVOIE DEVELOPMENT On the other hand, implied trusts are those which, without being expressed, are deducible from the nature of the transaction as matters of intent or which are superinduced on the transaction by operation of law as matters of equity, independently of the particular intention of the parties. In turn, implied trusts are either resulting or constructive trusts. These two are differentiated from each other as follows: Resulting trusts are based on the equitable doctrine that valuable consideration and not legal title determines the equitable title or interest and are presumed always to have been contemplated by the parties. They arise from the nature or circumstances of the consideration involved in a transaction whereby one person thereby becomes invested with legal title but is obligated in equity to hold his legal title for the benefit of another. On the other hand, constructive trusts are created by the construction of equity in order to satisfy the demands of justice and prevent unjust enrichment. They arise contrary to intention against one who, by fraud, duress or abuse of confidence, obtains or holds the legal right to property which he ought not, in equity and good conscience, to hold. ALICIA B. REYES vs. SPOUSES FRANCISCO S. VALENTIN G.R. No. 194488 / February 11, 2015 An easement of right of way is a real right. When an easement of right of way is granted to another person, the rights of the property's owner are limited. An owner may not exercise some of his or her property rights for the benefit of the person who was granted the easement of right of way. Hence, the burden of proof to show the existence of the above conditions is imposed on the person who seeks the easement of right of way. SPOUSES ABELLA vs. SPOUSES ABELLA G.R. No. 195166 / July 08, 2015 The legal rate of interest is the presumptive reasonable compensation for borrowed money. While parties are free to deviate from this, any deviation must be reasonable and fair. Any deviation that is far-removed is suspect. Thus, in cases where stipulated interest is more than twice the prevailing legal rate of interest, it is for the creditor to prove that this rate is required by prevailing market conditions. / Civil Law / 8 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES LA TONDEÑA, INC. vs. REPUBLIC OF THE PHILIPPINES G.R. No. 194617 / August 05, 2015 This court held that "the agricultural land subject of the application needs only to be classified as alienable and disposable as of the time of the application, provided the applicant's possession and occupation of the land dated back to June 12, 1945, or earlier.'' Survey notations are not considered substantive evidence of the land's classification as alienable and disposable. THE REGISTER OF DEEDS OF NEGROS OCCIDENTAL vs. OSCAR ANGLO, SR. G.R. No. 171804 / August 05, 2015 The Assurance Fund is part of our property registration system covered by Presidential Decree No. 1529. Its purpose is to protect individuals who rely on a property's certificate of title as evidence of ownership. A claim from the fund must meet the strict requirements of Presidential Decree No. 1529: SEC. 95. Action for compensation from funds. — A person who, without negligence on his part, sustains loss or damage, or is deprived of land or any estate or interest therein in consequence of the bringing of the land under the operation of the Torrens system of arising after original registration of land, through fraud or in consequence of any error, omission, mistake or misdescription in any certificate of title or in any entry or memorandum in the registration book, and who by the provisions of this Decree is barred or otherwise precluded under the provision of any law from bringing an action for the recovery of such land or the estate or interest therein, may bring an action in any court of competent jurisdiction for the recovery of damages to be paid out of the Assurance Fund. Claims will not be allowed when the claimant is negligent. ISMAEL V. CRISOSTOMO vs. MARTIN P. VICTORIA G.R. No. 175098 / August 26, 2015 As long as the legal possessor of the land constitutes a person as a tenant-farmer by virtue of an express or implied lease, such an act is binding on the owner of the property even if he himself may not have given his consent to such an arrangement. This is settled jurisprudence. The purpose of the law is to protect the tenant-farmer's / Civil Law / 9 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES security of tenure, which could otherwise be arbitrarily terminated by an owner simply manifesting his non-conformity to the relationship. PEDRO MENDOZA vs. REYNOSA VALTE G.R. No. 172961 / September 07, 2015 The existence or non-existence of fraud is a legal conclusion based on a finding that the evidence presented is sufficient to establish facts constituting its elements. Questions of fact are generally not entertained in a petition for review before this court. In any event, petitions for a review or reopening of a decree of registration based on actual fraud must be filed before the proper court within the one-year period provided under the relevant laws. The party alleging fraud must overcome the burden of proving the fraud with clear and convincing evidence. Section 101 of Commonwealth No. 141 allows actions for the reversion of land fraudulently granted to private individuals filed even after the lapse of the one-year period, but this must be initiated by the state. ELISEO MALTOS and ROSITA P. MALTOS vs. HEIRS OF EUSEBIO BORROMEO G.R. No. 172720 / September 14, 2015 The sale of a parcel of agricultural land covered by a free patent during the five-year prohibitory period under the Public Land Act is void. Reversion of the parcel of land is proper. However, reversion under Section 101 of the Public Land Act is not automatic. The Office of the Solicitor General must first file an action for reversion. LORENZO SHIPPING CORPORATION vs. NATIONAL POWER CORPORATION G.R. No. 181683 / October 07, 2015 G.R. No. 184568 In resolving this case, we have had to sift through the parties' competing claims as to who exactly is liable and to what extent. Reduced to its fundamentals, however, this case remains to be about damage sustained by property owned by National Power Corporation when the MV Lorcon Luzon rammed into it. This damage is susceptible to financial reckoning. Unfortunately for National Power Corporation, it failed to establish the precise amount of its pecuniary loss. This vice of precision notwithstanding, it would be improper to completely turn a blind eye to the loss suffered by National Power Corporation and to deny it, as Lorenzo Shipping suggests, of any form of recompense. Under these circumstances, we sustain the Court of Appeals' award of temperate damages. / Civil Law / 10 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES REPUBLIC OF THE PHILIPPINES vs. VIRGILIO M. TATLONGHARI G.R. No. 170458 / November 23, 2015 The notation "in trust for" or "for escrow" that comes with deposited funds indicates that the deposit is for the benefit of a third party. In this case, Asset Privatization Trust deposited funds "in trust for" Pantranco North Express, Inc., (Pantranco) a corporation under the management of Asset Privatization Trust. These funds belong to Pantranco. Further, in the absence of evidence that Asset Privatization Trust is authorized to collect Pantranco's indebtedness to Philippine National Bank, the subject funds can be garnished to satisfy the claims of Pantranco's creditors. When Pantranco was under sequestration, it remained to be a private corporation, and its funds also remained to be private. Although the Presidential Commission on Good Government is a government agency, it does not follow that Pantranco's funds were converted into public funds by the mere fact that its conservator was a government agency. METROPOLITAN BANK & TRUST INCORPORATED G.R. No. 189509 / November 23, 2015 COMPANY vs. G&P BUILDERS, [W]hen an agreement has been reduced to writing, the parties cannot be permitted to adduce evidence to prove alleged practices [that], to all purposes, would alter the terms of the written agreement. Whatever is not found in the writing is understood to have been waived and abandoned. SPOUSES ALEXANDER AND JULIE LAM vs. KODAK PHILIPPINES, LTD. G.R. No. 167615 / January 11, 2016 The award for moral and exemplary damages also appears to be sufficient. Moral damages are granted to alleviate the moral suffering suffered by a party due to an act of another, but it is not intended to enrich the victim at the defendant’s expense. It is not meant to punish the culpable party and, therefore, must always be reasonable vis-a-vis the injury caused. Exemplary damages, on the other hand, are awarded when the injurious act is attended by bad faith. ERWIN LIBO-ON DELA CRUZ vs. PEOPLE OF THE PHILIPPINES G.R. No. 209387 / January 11, 2016 Routine baggage inspections conducted by port authorities, although done without search warrants, are not unreasonable searches per se. Constitutional provisions protecting privacy should not be so literally understood so as to deny reasonable safeguards to ensure the safety of the traveling public. / Civil Law / 11 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES PEOPLE OF THE PHILIPPINES vs. RUBEN BARON G.R. No. 213215 / January 11, 2016 The saddest thing about court decisions is that they cannot prevent moral depravity when it has already happened. We can only do justice by imposing the proper penalty upon the finding of guilt beyond reasonable doubt. In one case, the Court took occasion to require an increase in the minimum award of damages where the death penalty would have been imposed, were it not for a law [RA No. 9346] preventing it: P100,000.00 as civil indemnity; P100,000.00 as moral damages which the victim is assumed to have suffered and thus needs no proof; and P100,000.00 as exemplary damages to set an example for the public good. No amount of remorse can change the fact that a seven-year-old girl is dead. There is no penalty commensurate with the indignity and the suffering that this child endured in the fading moments of her brief life. Nor is there any pecuniary equivalent to the loss of potential and the lifelong grief of her family. FLORANTE VITUG vs. EVANGELINE A. ABUDA G.R. No. 201264 / January 11, 2016 Parties who have validly executed a contract and have availed themselves of its benefits may not, to escape their contractual obligations, invoke irregularities in its execution to seek its invalidation. NORBERTO A. VITANGCOL vs. PEOPLE OF THE PHILIPPINES G.R. No. 207406 / January 13, 2016 Persons intending to contract a second marriage must first secure a judicial declaration of nullity of their first marriage. If they proceed with the second marriage without the judicial declaration, they are guilty of bigamy regardless of evidence of the nullity of the first marriage. SPOUSES ROBERT ALAN L. and NANCY LEE LIMSO vs. PHILIPPINE NATIONAL BANK G.R. No. 158622 / January 27, 2016 G.R. No. 169441 G.R. No. 172958 G.R. No. 173194 G.R. No. 196958 G.R. No. 197120 G.R. No. 205463 / Civil Law / 12 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES There is no mutuality of contract when the interest rate in a loan agreement is set at the sole discretion of one party. Nor is there any mutuality when there is no reasonable means by which the other party can determine the applicable interest rate. These types of interest rates stipulated in the loan agreement are null and void. However, the nullity of the stipulated interest rate does not automatically nullify the provision requiring payment of interest. Certainly, it does not nullify the obligation to pay the principal loan obligation. REPUBLIC OF THE PHILIPPINES vs. MOLDEX REALTY, INC. G.R. No. 171041 / February 10, 2016 A case becomes moot and academic when, by virtue of supervening events, the conflicting issue that may be resolved by the court ceases to exist. There is no longer any justiciable controversy that may be resolved by the court. This court refuses to render advisory opinions and resolve issues that would provide no practical use or value. Thus, courts generally "decline jurisdiction over such case or dismiss it on ground of mootness." CARAVAN TRAVEL AND TOURS INTERNATIONAL, INC. vs. ERMILINDA R. ABEJAR G.R. No. 170631 / February 10, 2016 The plaintiff may first prove the employer's ownership of the vehicle involved in a mishap by presenting the vehicle's registration in evidence. Thereafter, a disputable presumption that the requirements for an employer's liability under Article 2180 of the Civil Code have been satisfied will arise. The burden of evidence then shifts to the defendant to show that no liability under Article 2180 has ensued. This case, thus, harmonizes the requirements of Article 2180, in relation to Article 2176 of the Civil Code, and the so-called registered-owner rule. REPUBLIC OF THE PHILIPPINES vs. SOGOD DEVELOPMENT CORPORATION G.R. No. 175760 / February 17, 2016 For a judicial confirmation of title under Section 48(b) of the Public Land Act, the land subject of the application needs only to be alienable and disposable as of the time of the application, provided the applicant's possession and occupation of the land dates back to June 12, 1945, or earlier. / Civil Law / 13 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES VICTOR S. LIMLINGAN vs. ASIAN INSTITUTE OF MANAGEMENT, INC. G.R. No. 220481 / February 17, 2016 When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance of money, the interest due should be that which may have been stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the time it is judicially demanded. In the absence of stipulation, the rate of interest shall be 6% per annum to be computed from default, i.e., from judicial or extrajudicial demand under and subject to the provisions of Article 1169 of the Civil Code. When an obligation, not constituting a loan or forbearance of money, is breached, an interest on the amount of damages awarded may be imposed at the discretion of the court at the rate of 6% per annum. No interest, however, shall be adjudged on unliquidated claims or damages, except when or until the demand can be established with reasonable certainty. Accordingly, where the demand is established with reasonable certainty, the interest shall begin to run from the time the claim is made judicially or extrajudicially (Art. 1169, Civil Code), but when such certainty cannot be so reasonably established at the time the demand is made, the interest shall begin to run only from the date the judgment of the court is made (at which time the quantification of damages may be deemed to have been reasonably ascertained). The actual base for the computation of legal interest shall, in any case, be on the amount finally adjudged. When the judgment of the court awarding a sum of money becomes final and executory, the rate of legal interest, whether the case falls under paragraph 1 or paragraph 2, above, shall be 6% per annum from such finality until its satisfaction, this interim period being deemed to be by then an equivalent to a forbearance of credit. EDNA MABUGAY-OTAMIAS vs. REPUBLIC OF THE PHILIPPINES G.R. No. 189516 / June 08, 2016 A writ of execution lies against the pension benefits of a retired officer of the Armed Forces of the Philippines, which is the subject of a deed of assignment drawn by him granting support to his wife and five (5) children. The benefit of exemption from execution of pension benefits is a statutory right that may be waived, especially in order to comply with a husband's duty to provide support under Article XV of the 1987 Constitution and the Family Code. / Civil Law / 14 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES NATIONAL POWER CORPORATION vs. SOUTHERN PHILIPPINES POWER CORPORATION G.R. No. 219627 / July 04, 2016 We resort to the fundamental principle that a contract is the law between parties. Absent any showing that its provisions are contrary to law, morals, good customs, public order, or public policy, it should be enforced to the letter. Contracts cannot be altered for the benefit of one party and to the detriment of another. Neither can this Court, by construction, "relieve [a] party from the terms to which [it] voluntarily consented, or impose on [it] those which [it] did not." PABLO M. PADILLA, JR. vs. LEOPOLDO MALICSI G.R. No. 201354 / September 21, 2016 The owner of the land (in good faith) has three alternative rights: (1) to appropriate what has been built without any obligation to pay indemnity therefor, or (2) to demand that the builder remove what he had built, or (3) to compel the-builder to pay the value of the land. In any case, the landowner is entitled to damages x x x. PHILIPPINE ECONOMIC ZONE AUTHORITY CORPORATION G.R. No. 185765 / September 28, 2016 vs. PILHINO SALES Although the provisions of a contract are legally null and void, the stipulated method of computing liquidated damages may be accepted as evidence of the intent of the parties. The provisions, therefore, can be basis for finding a factual anchor for liquidated damages. The liable party may nevertheless present better evidence to establish a more accurate basis for awarding damages. PHILIPPINE NATIONAL BANK vs. VENANCIO C. REYES, JR. G.R. No. 212483 / October 05, 2016 A spouse's consent is indispensable for the disposition or encumbrance of conjugal properties. HEIRS OF LEOPOLDO DELFIN vs. NATIONAL HOUSING AUTHORITY G.R. No. 193618 / November 28, 2016 Under Commonwealth Act No. 141, a claimant may acquire alienable and disposable public land upon evidence of exclusive and notorious possession of the land since June 12, 1945. The period to acquire public land by acquisitive prescription under Presidential Decree No. 1529 begins to run only after the promulgation of a law or a / Civil Law / 15 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES proclamation by the President stating that the land is no longer intended for public use or the development of national wealth. THE SECRETARY OF JUSTICE vs. GLORIA RODRIGUEZ DE GUZMAN G.R. No. 187291 / December 05, 2016 Land registration cases that only resolve the propriety of the results of a resurvey of Baguio City properties do not bar a subsequent declaration of the nullity of the titles. Our courts should be more aware of the machinations used by unscrupulous parties to acquire and title lands in Baguio City. As in this case, parties obtained more land through a resuryey of property. They filed an action or proceeding to "correct" the technical descriptions or the supporting survey plans. Trial courts become participants in this scheme by denying the intervention or opposition of the Solicitor General and x x x make very loose observations regarding the presumptions of validity of obviously defective titles already declared null and void by Marcos and confirmed as such by Presidential Decree No. 1271. Thereafter, in subsequent cases, as in these cases, the party who gains through a simple resurvey of its property erroneously raises res judicata as a defense; thus the party secures its spurious titles against any further legal questions. These machinations brought about by the clearly erroneous application of doctrine should stop. Otherwise, genuine property owners in Baguio City will forever be unsure of possible land grabbing. HEIRS OF TEODORA LOYOLA vs. COURT OF APPEALS G.R. No. 188658 / January 11, 2017 Fraud and irregularity are presupposed in an action for reconveyance of property. The party seeking to recover the property must prove, by clear and convincing evidence, that he or she is entitled to the property, and that the adverse party has committed fraud in obtaining his or her title. Allegations of fraud are not enough. "Intentional acts to deceive and deprive another of his right, or in some manner injure him, must be specifically alleged and proved." In the absence of any proof, the complaint for reconveyance cannot be granted. REPUBLIC OF THE PHILIPPINES vs. SPOUSES FRANCISCO R. LLAMAS G.R. No. 194190 / January 25, 2017 To be considered a donation, an act of conveyance must necessarily proceed freely from the donor's own, unrestrained volition. A donation cannot be forced: it cannot arise from compulsion, be borne by a requirement, or otherwise be impelled by a / Civil Law / 16 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES mandate imposed upon the donor by forces that are external to him or her. Article 726 of the Civil Code reflects this commonsensical wisdom when it specifically states that conveyances made in view of a "demandable debt" cannot be considered true or valid donations. DEVELOPMENT BANK OF THE PHILIPPINES vs. STA. INES MELALE FOREST PRODUCTS CORPORATION G.R. No. 193068 / February 01, 2017 G.R. No. 193099 / February 01, 2017 A condition shall be deemed fulfilled when the obligor voluntarily prevents its fulfilment and a debtor loses the right to make use of the period when a condition is violated, making the obligation immediately demandable. ROMEO F. ARA vs. DRA. FELY S. PIZARRO G.R. No. 187273 / February 15, 2017 For a claim of filiation to succeed, it must be made within the period allowed, and supported by the evidence required under the Family Code. LAND BANK OF THE PHILIPPINES vs. LORENZO MUSNI G.R. No. 206343 / February 22, 2017 Banks must show that they exercised the required due diligence before claiming to be mortgagees in good faith or innocent purchasers for value. MARIA TERESA B. TANI-DE LA FUENTE vs. RODOLFO DE LA FUENTE, JR. G.R. No. 188400 / March 8, 2017 Psychological incapacity is a mental illness that leads to an inability to comply with or comprehend essential marital obligations. UNION BANK OF THE PHILIPPINES vs. SPOUSES JEROME G.R. No. 205657 / March 29, 2017 Upon accepting an agency, the agent becomes bound to carry out the agency and shall be held liable for the damages, which the principal may incur due to the agent's non-performance. / Civil Law / 17 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES HEIRS OF AUGUSTO SALAS, JR. vs. MARCIANO CABUNGCAL G.R. No. 191545 / March 29, 2017 Republic Act No. 6657 (Comprehensive Agrarian Reform Law of 1988) or the Comprehensive Agrarian Reform Law generally covers all public and private agricultural lands. The law defines agricultural land as "land devoted to agricultural activity and not classified as mineral, forest, residential, commercial or industrial land." For agricultural land to be considered devoted to an agricultural activity, there must be "cultivation of the soil, planting of crops, growing of fruit trees, raising of livestock, poultry or fish, including the harvesting of such farm products, and other farm activities and practices performed by a farmer in conjunction with such farming operations done by persons whether natural or juridical." HEIRS OF LEONILO P. NUÑEZ, SR. vs. HEIRS OF GABINO T. VILLANOZA G.R. No. 218666 / April 26, 2017 Under the Comprehensive Agrarian Reform Law, the landowner may retain a maximum of five (3) hectares of land, but this land must be compact or contiguous. If the area selected for retention is tenanted, the tenant-farmer may choose to remain in the area or be a beneficiary in a comparable area. SPS. ROBERTO ABOITIZ vs. SPS. PETER L. PO G.R. No. 208450 / June 05, 2017 G.R. No. 208497 The rationale for allowing reconveyance despite the finality of the registration is that the issuance of a certificate of title does not create or vest ownership to a person over the property. Registration under the Torrens system "is not a mode of acquiring ownership." A certificate is only a proof of ownership. Thus, its issuance does not foreclose the possibility of having a different owner, and it cannot be used against the true owner as a shield for fraud. LOLITA BAS CAPABLANCA vs. HEIRS OF PEDRO BAS G.R. No. 224144 / June 28, 2017 In one case, the right to assert a cause of action as an heir, although he has not been judicially declared to be so, if duly proven, is well settled in this jurisdiction. This is upon the theory that the property of a deceased person, both real and personal, becomes the property of the heir by the mere fact of death of his predecessor in interest, and as such he can deal with it in precisely the same way in which the / Civil Law / 18 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES deceased could have dealt, subject only to the limitations which by law or by contract may be imposed upon the deceased himself. Thus, it has been held that "[t]here is no legal precept or established rule which imposes the necessity of a previous legal declaration regarding their status as heirs to an intestate on those who, being of age and with legal capacity, consider themselves the legal heirs of a person, in order that they may maintain an action arising out of a right which belonged to their ancestor." HEIRS OF CAYETANO CASCAYAN vs. SPOUSES OLIVER AND EVELYN GUMALLAOI G.R. No. 211947 / July 03, 2017 In one case, the Court held that a counterclaim, specifically one for annulment of title and reconveyance based on fraud, is a direct attack on the Torrens title upon which the complaint for quieting of title is premised. REPUBLIC OF THE PHILIPPINES vs. SPOUSES DANILO GO G.R. No. 197297 / August 02, 2017 Public land remains inalienable unless it is shown to have been reclassified and alienated to a private person. CE CONSTRUCTION CORPORATION vs. ARANETA CENTER INC. G.R. No. 192725 / August 09, 2017 A tribunal confronted not only with ambiguous contractual terms but also with the total absence of an instrument which definitively articulates the contracting parties' agreement does not act in excess of jurisdiction when it employs aids in interpretation, such as those articulated in Articles 1370 to 1379 of the Civil Code. In so doing, a tribunal does not conjure its own contractual terms and force them upon the parties. ORIENT FREIGHT INTERNATIONAL, INC. vs. KEIHIN-EVERETT FORWARDING COMPANY, INC. G.R. No. 191937 / August 09, 2017 Article 2176 of the Civil Code does not apply when the party's negligence occurs in the performance of an obligation. The negligent act would give rise to a quasi-delict only when it may be the basis for an independent action were the parties not otherwise bound by a contract. / Civil Law / 19 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES RICHELLE P. ABELLA vs. POLICARPIO CABAÑERO G.R. No. 206647 / August 09, 2017 Filiation must be established for a child to claim support from a putative father. When "filiation is beyond question, support follows as [a] matter of obligation." To establish filiation, an action for compulsory recognition may be filed against the putative father ahead of an action for support. In the alternative, an action for support may be directly filed, where the matter of filiation shall be integrated and resolved. FGU INSURANCE CORPORATION vs. SPOUSES FLORO ROXAS AND EUFEMIA ROXAS G.R. No. 189526 / August 09, 2017 G.R. No. 189656 / August 9, 2017 The liability of a surety is determined strictly in accordance with the actual terms of the performance bond it issued. It may, however, set up compensation against the amount owed by the creditor to the principal. DEE HWA LIONG FOUNDATION MEDICAL CENTER vs. ASIAMED SUPPLIES G.R. No. 205638 / August 23, 2017 A contract need not be contained in a single writing. It may be collected from several different writings which do not conflict with each other and which, when connected, show the parties, subject matter, terms and consideration, as in contracts entered into by correspondence. A contract may be encompassed in several instruments even though every instrument is not signed by the parties, since it is sufficient if the unsigned instruments are clearly identified or referred to and made part of the signed instrument or instruments. Similarly, a written agreement of which there are two copies, one signed by each of the parties, is binding on both to the same extent as though there had been only one copy of the agreement and both had signed it. PRISCILLA ZAFRA ORBE vs. FILINVEST LAND, INC. G.R. No. 208185 / September 06, 2017 When Republic Act No. 6552 or the Maceda Law speaks of paying "at least two years of installments" in order for the benefits under its Section 3 to become available, it refers to the buyer's payment of two (2) years' worth of the stipulated fractional, periodic payments due to the seller. When the buyer's payments fall short of the equivalent of two (2) years' worth of installments, the benefits that the buyer may avail of are limited to those under Section 4. Should the buyer still fail to make payments within Section 4's grace period, the seller may cancel the contract. Any / Civil Law / 20 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES such cancellation is ineffectual, however, unless it is made through a valid notarial act. TEAM IMAGE ENTERTAINMENT, INC. vs. SOLAR TEAM ENTERTAINMENT, INC. G.R. No. 191652 / September 13, 2017 G.R. No. 191658 / September 13, 2017 A judgment upon a compromise is rendered based on the parties' reciprocal concessions. With all the more reason should a judgment upon a compromise be complied with in good faith considering that the parties themselves crafted its terms. REPUBLIC OF THE PHILIPPINES vs. SPOUSES JOEL G.R. No. 170316 / September 18, 2017 When an applicant in the registration of property proves his or her open, continuous, exclusive, and notorious possession of a land for the period required by law, he or she has acquired an imperfect title that may be confirmed by the State. The State may not, in the absence of controverting evidence and in a pro forma opposition, indiscriminately take a property without violating due process. VICENTE L. LUNTAO vs. BAP CREDIT GUARANTY CORPORATION G.R. No. 204412 / September 20, 2017 The validity of accessory contracts mainly flows from the validity of the principal contracts. A real estate mortgage is in the nature of an accessory contract. Thus, the validity of a mortgage contract that was constituted to secure a loan obligation is affected by the validity of the loan contract. VELIA J. CRUZ vs. SPOUSES MAXIMO G.R. No. 205539 / October 4, 2017 The prior service and receipt of a demand letter is unnecessary in a case for unlawful detainer if the demand to vacate is premised on the expiration of the lease, not on the non-payment of rentals or non-compliance of the terms and conditions of the lease. ORIENTAL ASSURANCE CORPORATION vs. MANUEL ONG G.R. No. 189524 / October 11, 2017 The consignee's claim letter that was received by the arrastre operator two (2) days after complete delivery of the cargo constitutes substantial compliance with the time limitation for filing claims under the Gate Pass and the Management Contract. / Civil Law / 21 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES However, the arrastre operator's liability for damage to the cargo is limited to P5,000.00 per package in accordance with the Management Contract. FRANCISCA TAAR vs. CLAUDIO LAWAN G.R. No. 190922 / October 11, 2017 A judgment approving the subdivision of a parcel of land does not preclude other parties with a better right from instituting free patent applications over it. Entitlement to agricultural lands of the public domain requires a clear showing of compliance with the provisions of Commonwealth Act No. 141, as amended, otherwise known as the Public Land Act. SIMEON TRINIDAD PIEDAD vs. CANDELARIA LINEHAN BOBILLES G.R. No. 208614 / November 27, 2017 Courts should take to heart the principle of equity if the strict application of the statute of limitations or laches would result in manifest wrong or injustice. JOSEPH HARRY WALTER POOLE-BLUNDEN vs. UNION BANK OF THE PHILIPPINES G.R. No. 205838 / November 29, 2017 Banks are required to observe a high degree of diligence in their affairs. This encompasses their dealings concerning properties offered as security for loans. A bank that wrongly advertises the area of a property acquired through foreclosure because it failed to dutifully ascertain the property's specifications is grossly negligent as to practically be in bad faith in offering that property to prospective buyers. Any sale made on this account is voidable for causal fraud. In actions to void such sales, banks cannot hide under the defense that a sale was made on an as-is-where-is basis. As-is-where-is stipulations can only encompass physical features that are readily perceptible by an ordinary person possessing no specialized skills. VISAYAN ELECTRIC COMPANY, INC. vs. EMILIO G. ALFECHE G.R. No. 209910 / November 29, 2017 An electric distribution company is a public utility presumed to have the necessary expertise and resources to enable a safe and effective installation of its facilities. Absent an indication of fault or negligence by other actors, it is exclusively liable for fires and other damages caused by its haphazardly installed posts and wires. / Civil Law / 22 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES ERMA INDUSTRIES, INC vs. SECURITY BANK CORPORATION G.R. No. 191274 / December 06, 2017 The law has authorized the formation of corporations for the purpose of conducting surety business, and the corporate surety differs significantly from the individual private surety. First, unlike the private surety, the corporate surety signs for cash and not for friendship. The private surety is regarded as someone doing a rather foolish act for praiseworthy motives; the corporate surety, to the contrary, is in business to make a profit and charges a premium depending upon the amount of guaranty and the risk involved. Second, the corporate surety, like an insurance company, prepares the instrument, which is a type of contract of adhesion whereas the private surety usually does not prepare the note or bond which he signs. Third, the obligation of the private surety often is assumed simply on the basis of the debtor's representations and without legal advice, while the corporate surety does not bind itself until a full investigation has been made. For these reasons, the courts distinguish between the individual gratuitous surety and the vocational corporate surety. In the case of the corporate surety, the rule of strictissimi juris is not applicable, and courts apply the rules of interpretation of appertaining to contracts of insurance. VIVIAN B. TORREON vs. GENEROSO APARRA G.R. No. 188493 / December 13, 2017 Lack of documentary evidence is not fatal to a claim for the deceased's lost earning capacity. Testimony from a competent witness familiar with his salary is a sufficient basis to determine the deceased's income before his death. TEODORO C. TORTONA vs. JULIAN C. GREGORIO G.R. No. 202612 / January 17, 2018 Documents acknowledged before a notary public are presumed to have been duly executed. This presumption may be contradicted by clear and convincing evidence. A notarized Deed of Absolute Sale where the thumbmark of a party is shown to be a forgery is void. REPUBLIC OF THE PHILIPPINES vs. MICHELLE SORIANO GALLO G.R. No. 207074 / January 17, 2018 Names are labels for one's identity. They facilitate social interaction, including the allocation of rights and determination of liabilities. It is for this reason that the State has an interest in one's name. / Civil Law / 23 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES The name through which one is known is generally, however, not chosen by the individual who bears it. Rather, it is chosen by one's parents. In this sense, the choice of one's name is not a product of the exercise of autonomy of the individual to whom it refers. In view of the State's interest in names as markers of one's identity, the law requires that these labels be registered. Understandably, in some cases, the names so registered or other aspects of one's identity that pertain to one's name are not reflected with accuracy in the Certificate of Live Birth filed with the civil registrar. Changes to one's name, therefore, can be the result of either one of two (2) motives. The first, as an exercise of one's autonomy, is to change the appellation that one was given for various reasons. The other is not an exercise to change the label that was given to a person; it is simply to correct the data as it was recorded in the Civil Registry. VICTORIA N. RACELIS vs. SPOUSES GERMIL JAVIER AND REBECCA JAVIER G.R. No. 189609 / January 29, 2018 Lessees are entitled to suspend the payment of rent under Article 1658 of the Civil Code if their legal possession is disturbed. Acts of physical disturbance that do not affect legal possession is beyond the scope of this rule. In a contract to sell, the payment of earnest money represents the seller's opportunity cost of holding in abeyance the search for other buyers or better deals. Absent proof of a clear agreement to the contrary, it should be forfeited if the sale does not happen without the seller's fault. The potential buyer bears the burden of proving that the earnest money was intended other than as part of the purchase price and to be forfeited if the sale does not occur without the seller's fault. INTRAMUROS ADMINISTRATION DEVELOPMENT COMPANY G.R. No. 196795 / March 07, 2018 vs. OFFSHORE CONSTRUCTION The sole issue in ejectment proceedings is determining which of the parties has the better right to physical possession of a piece of property. The defendant's claims and allegations in its answer or motion to dismiss do not oust a trial court's jurisdiction to resolve this issue. / Civil Law / 24 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES EVERSLEY CHILDS SANITARIUM PERLABARBARONA G.R. No. 195814 / April 4, 2018 vs. SPOUSES ANASTACIO A case for unlawful detainer must state the period from when the occupation by tolerance started and the acts of tolerance exercised by the party with the right to possession. If it is argued that the possession was illegal from the start, the proper remedy is to file an accion publiciana, or a plenary action to recover the right of possession. Moreover, while an ejectment case merely settles the issue of the right of actual possession, the issue of ownership may be provisionally passed upon if the issue of possession cannot be resolved without it. Any final disposition on the issue of ownership, however, must be resolved in the proper forum. REPUBLIC OF THE PHILIPPINES vs. LAUREANA MALIJAN-JAVIER G.R. No. 214367 / Aril 4, 2018 To establish that the land sought to be registered is alienable and disposable, applicants must "present a copy of the original classification approved by the [Department of Environment and Natural Resources] Secretary and certified as a true copy by the legal custodian of the official records." MAKATI TUSCANY CONDOMINIUM DEVELOPMENT CORPORATION G.R. No. 185530 / April 18, 2018 CORPORATION vs. MULTI-REALTY Reformation of an instrument may be allowed if subsequent and contemporaneous acts of the parties show that their true intention was not accurately reflected in the written instrument. ALICIA C. GALINDEZ vs. SALVACION FIRMALAN G.R. No. 187186 / June 06, 2018 Findings of fact by the Director of Lands shall be conclusive when approved by the Department of Environment and Natural Resources Secretary and supported by substantial evidence. RHODORA ILUMIN RACHO vs. SEIICHI TANAKA G.R. No. 199515 / June 25, 2018 Judicial recognition of a foreign divorce requires that the national law of the foreign spouse and the divorce decree be pleaded and proved as a fact before the Regional Trial Court. The Filipino spouse may be granted the capacity to remarry once our / Civil Law / 25 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES courts find that the foreign divorce was validly obtained by the foreign spouse according to his or her national law, and that the foreign spouse's national law considers the dissolution of the marital relationship to be absolute. FEDERAL EXPRESS CORPORATION vs. LUWALHATI R. ANTONINO G.R. No. 199455 / June 27, 2018 The duty of common carriers to observe extraordinary diligence in shipping goods does not terminate until delivery to the consignee or to the specific person authorized to receive the shipped goods. Failure to deliver to the person authorized to receive the goods is tantamount to loss of the goods, thereby engendering the common carrier's liability for loss. Ambiguities in contracts of carriage, which are contracts of adhesion, must be interpreted against the common carrier that prepared these contracts. SINDOPHIL, INC. vs. REPUBLIC OF THE PHILIPPINES G.R. No. 204594 / November 07, 2018 The presumption that a holder of a Torrens title is an innocent purchaser for value is disputable and may be overcome by contrary evidence. Once a prima facie case disputing this presumption is established, the adverse party cannot simply rely on the presumption of good faith and must put forward evidence that the property was acquired without notice of any defect in its title. CEZAR YATCO REAL ESTATE SERVICES, ASSOCIATION, INC. G.R. No. 211780 / November 21, 2018 INC. vs. BEL-AIR VILLAGE In contract interpretation, courts must first determine whether a stipulation is ambiguous or susceptible of multiple interpretations. If no ambiguity is found and the terms of the contract clearly reflect the intentions of the contracting parties, the stipulation will be interpreted as it is written. SPOUSES RAINIER JOSE M. YULO vs. BANK OF THE PHILIPPINE ISLANDS G.R. No. 217044 / January 16, 2019 When issuing a pre-screened or pre-approved credit card, the credit card provider must prove that its client read and consented to the terms and conditions governing the credit card's use. Failure to prove consent means that the client cannot be bound by the provisions of the terms and conditions, despite admitted use of the credit card. / Civil Law / 26 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES BANGKO SENTRAL NG PILIPINAS vs. SPOUSES JUANITO AND VICTORIA LEDESMA G.R. No. 211176 / February 06, 2019 G.R. No. 211583 / February 06, 2019 In cases where the loan records which will serve as the basis for computing the excess payments of the sugar producer are no longer available, the lending bank shall immediately notify the BSP. The BSP shall then direct the claimant sugar producer to submit documents in his possession which are acceptable to COA to substantiate his claim. Such documents shall be submitted by the sugar producer to the lending bank within sixty (60) calendar days from receipt of notification from the BSP. MELINDA M. MALABANAN vs. FRANCISCO MALABANAN, JR. G. R. No. 187225 / March 06, 2019 The plain meaning attached to the plain language of the law is that the contract, in its entirety, executed by the husband without the wife's consent, may be annulled by the wife. Had Congress intended to limit such annulment in so far as the contract shall "prejudice" the wife, such limitation should have been spelled out in the statute. It is not the legitimate concern of this Court to recast the law. As Mr. Justice Jose B. L. Reyes of this Court and Judge Ricardo C. Puno of the Court of First Instance correctly stated, "[t]he rule (in the first sentence of Article 173) revokes Baello vs. Villanueva, . . . and Coque vs. Navas Sioca, . . ." in which cases annulment was held to refer only to the extent of the one-half interest of the wife. . . . ANNIE TAN vs. GREAT HARVEST ENTERPRISES, INC. G.R. No. 220400 / March 20, 2019 Common carriers are obligated to exercise extraordinary diligence over the goods entrusted to their care. This is due to the nature of their business, with the public policy behind it geared toward achieving allocative efficiency and minimizing the inherently inequitable dynamics between the parties to the transaction. BNL MANAGEMENT CORPORATION vs. REYNALDO UY G.R. No. 210297 / April 03, 2019 Under Section 9 of Republic Act No. 4726, or the Condominium Act, a condominium owner shall register a declaration of restrictions, which shall be annotated to the certificate of title of land included within the project. The declaration of restrictions provides for the project management, among others, and is enforceable by the condominium's management body. / Civil Law / 27 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES In a multi-occupancy dwelling such as Apartments, limitations are imposed under R.A. 4726 in accordance with the common interest and safety of the occupants therein which at times may curtail the exercise of ownership. To maintain safe, harmonious and secured living conditions, certain stipulations are embodied in the duly registered deed of restrictions, in this case the Master Deed, and in house rules which the condominium corporation, like respondent, is mandated to implement. Upon acquisition of a unit, the owner not only affixes his conformity to the sale; he also binds himself to a contract with other unit owners. WILLIAM G. KWONG MANAGEMENT, INC. vs. DIAMOND HOMEOWNERS & RESIDENTS ASSOCIATION G.R. No. 211353 / June 10, 2019 A homeowners' association may regulate passage into a subdivision for the safety and security of its residents, even if its roads have already been donated to the local government. It has the right to set goals for the promotion of safety and security, peace, comfort, and the general welfare of its residents. GENEVIEVE ROSAL ARREZA vs. TETSUSHI TOYO, LOCAL CIVIL REGISTRAR OF QUEZON CITY G.R. No. 213198 / July 01, 2019 Philippine courts do not take judicial notice of foreign judgments and laws. They must be proven as fact under our rules on evidence. A divorce decree obtained abroad is deemed a foreign judgment, hence the indispensable need to have it pleaded and proved before its legal effects may be extended to the Filipino spouse. GOVERNMENT SERVICE INSURANCE SYSTEM vs. MUNICIPAL AGRARIAN REFORM OFFICER ROMERICO DATOY G.R. No. 232863 / July 24, 2019 Lands foreclosed by the Government Service Insurance System, a government financial institution, are subject to agrarian reform and are not among the Comprehensive Agrarian Reform Law's exclusive list of exemptions and exclusions. The exemptions under RA 6657 (Comprehensive Agrarian Reform Law) form an exclusive list, as follows: SEC. 10. Exemptions and Exclusions. - / Civil Law / 28 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES (a) Lands actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds and mangroves shall be exempt from the coverage of this Act. (b) Private lands actually, directly and exclusively used for prawn farms and fishponds shall be exempt from the coverage of this Act: Provided, That said prawn farms and fishponds have not been distributed and Certificate of Land Ownership Award (CLOA) issued under the Agrarian Reform Program. In cases where the fishponds or prawn farms have been subjected to the Comprehensive Agrarian Reform Law, by voluntary offer to sell, or commercial farms deferment or notices of compulsory acquisition, a simple and absolute majority of the actual regular workers or tenants must consent to the exemption within one (1) year from the effectivity of this Act. When the workers or tenants do not agree to this exemption, the fishponds or prawn farms shall be distributed collectively to the worker-beneficiaries or tenants who shall form cooperative or association to manage the same. In cases where the fishponds or prawn farms have not been subjected to the Comprehensive Agrarian Reform Law, the consent of the farmworkers shall no longer be necessary; however, the provision of Section 32-A hereof on incentives shall apply. (c) Lands actually, directly and exclusively used and found to be necessary for national defense, school sites and campuses, including experimental farm stations operated by public or private schools for educational purposes, seeds and seedlings research and pilot production center, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmates, government and private research and quarantine centers and all lands with eighteen percent (18%) slope and over, except those already developed, shall be exempt from the coverage of this Act. (As amended by R.A. 7881) CAMP JOHN HAY DEVELOPMENT CORPORATION vs. CHARTER CHEMICAL AND COATING CORPORATION G.R. No. 198849 / August 07, 2019 Rescission under Article 1191 of the Civil Code is the proper remedy when a party breaches a reciprocal obligation. Because each case has its own distinct circumstances, this Court's power to fix a period of an obligation under Article 1197 is discretionary and should be exercised only if there is just cause. / Civil Law / 29 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES PRUDENCIO DE GUZMAN Y JUMAQUIO vs. PEOPLE OF THE PHILIPPINES G.R. No. 224742 / August 07, 2019 A person cannot unilaterally declare his marriage void. The law provides that a judicial declaration of nullity is indispensable for the purposes of remarriage. CLARET SCHOOL OF QUEZON G.R. No. 226358 / October 09, 2019 CITY vs. MADELYN I. SINDAY Brent School, Inc. v. Zamora recognized that the Civil Code and the Labor Code allow the execution of fixed-term employment contracts. However, in cases where periods are imposed to prevent an employee from acquiring security of tenure, such contracts must be disregarded for being contrary to public policy and morals. Brent's application is limited to cases where the employer and the employee are more or less on an equal footing when they enter into the contract. PHILIPPINE LONG DISTANCE TELEPHONE COMPANY vs. CITI APPLIANCE M.C. CORPORATION G.R. No. 214546 / October 9, 2019 An action for forcible entry must be filed within one (1) year from the date of actual entry on the land. However, when the entry was done through stealth, the one-year time bar is reckoned from the time the entry was discovered. In contrast to unlawful detainer suits, no previous demand to vacate is required before an action for forcible entry may be filed. SPOUSES LAURETO V. FRANCO AND NELLY DELA CRUZ-FRANCO vs. SPOUSES MACARIO GALERA, JR. AND TERESITA LEGASPINA G.R. No. 205266 / January 15, 2020 An express agreement is not necessary to establish the existence of agricultural tenancy. The tenancy relationship can be implied when the conduct of the parties shows the presence of all the requisites under the law. For a valid agricultural tenancy arrangement to exist, these elements must concur: (1) the parties are the landowner and the tenant:(2) the subject matter is agricultural land; (3) there is consent between the parties: (4) the purpose is agricultural production; (5) there is personal cultivation by the tenant; and, (6) there is sharing of the harvests between the parties. / Civil Law / 30 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES All these elements must be proven by substantial evidence; "the absence of one or more requisites is fatal." As with any affirmative allegation, the burden of proof rests on the party who alleges it. The tenancy relationship cannot be presumed. SPOUSES DANILO AND CLARITA GERMAN vs. SPOUSES BENJAMIN AND EDITHA SANTUYO AND HELEN S. MARIANO G.R. No. 210845 / January 22, 2020 When circumstances are present that should prompt a potential buyer of registered real property to be on guard, it is expected that they inquire first into the status of the property and not merely rely on the face of the certificate of title. To buy real property while having only a general idea of where it is and without knowing the actual condition and identity of the metes and bounds of the land to be bought, is negligent and careless. Failure to take such ordinary precautionary steps, which could not have been difficult to undertake for respondents Santuyo Spouses, as they were situated near where the property is located, precludes their defense of good faith in the purchase. ALLAN MAÑAS vs. ROSALINA ROCA NICOLASORA G.R. No. 208845 / February 03, 2020 [A] lease contract's implied renewal does not mean that all the terms in the original contract are deemed revived. Only the terms that affect the lessee's continued use and enjoyment of the property would be considered part of the implied renewal. Indeed, the right of first refusal has nothing to do with the use and enjoyment of property. SAPHIA MUTILAN vs. CADIDIA MUTILAN G.R. No. 216109 / February 05, 2020 The probate court can decide the question of title or ownership over properties when the interested parties are all heirs and the rights of third parties are not impaired. When, however, a separate civil action is still filed to decide the question of ownership, it is mandatory that it be instituted by the real parties in interest, and the indispensable parties be impleaded. These are jurisdictional requirements, which, when failed to be satisfied, prove fatal to the civil action. / Civil Law / 31 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES REPUBLIC OF THE PHILIPPINES vs. WINSTON BRIAN CHIA LAO AND CHRISTOPHER TROY CHIA LAO G.R. No. 205218 / February 10, 2020 G.R. No. 207075 / February 10, 2020 The birth certificate, more than a historical record of one's birth, is a vital marker of identity. Therefore, acts and events, though occurring after birth, may be annotated on the birth certificate so long as they are consistent with a legal truth and a special law provides for its effects. SPOUSES RENE LUIS GODINEZ AND SHEMAYNE GODINEZ vs. SPOUSES ANDREW T. NORMAN AND JANET A. NORMAN G.R. No. 225449 / February 26, 2020 Generally, partial payments of the purchase price on a contract to sell should be returned to the buyer if the sale does not push through, unless forfeiture of such partial payments was stipulated. However, these partial payments may be retained and considered as rentals by the seller if the buyer was given possession or was able to use the property prior to transfer of title. BAGONG REPORMANG SAMAHAN NG MGA TSUPER AT OPERATOR SA ROTANG PASIG QUIAPO VIA PALENGKE SAN JOAQUIN IKOT, INC. vs. CITY OF MANDALUYONG G.R. No. 218593 / June 15, 2020 A certificate of public convenience does not vest property rights to its holder to conduct business along the route covered in it. This privilege is subject to compliance with local traffic regulations, because the Land Transportation Franchising and Regulatory Board's authority to issue such certificates is only supplemental to the right of local governments to control and regulate traffic in their localities. PHILIPPINE SAVINGS BANK vs. MARIA CECILIA SAKATA G.R. No. 229450 / June 17, 2020 It is settled that "a bank is bound to know the signatures of its customers; and if it pays a forged check, it must be considered as making the payment out of its own funds, and cannot ordinarily charge the amount so paid to the account of the depositor whose name was forged." / Civil Law / 32 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES SPOUSES RUTH DIZON DEVISFRUTO AND ALLAN DEVISFRUTO vs. MAXIMA L. GREENFELL G.R. No. 227725 / July 1, 2020 As held in one case, a donation must comply with the mandatory formal requirements set forth by law for its validity. When the subject of donation is purchase money, Article 748 of the NCC is applicable. Accordingly, the donation of money as well as its acceptance should be in writing. Otherwise, the donation is invalid for noncompliance with the formal requisites prescribed by law. Art. 748. The donation of a movable may be made orally or in writing. — An oral donation requires the simultaneous delivery of the thing or of the document representing the right donated. If the value of the personal property donated exceeds five thousand pesos, the donation and the acceptance shall be made in writing. Otherwise, the donation shall be void. CJH DEVELOPMENT CORPORATION vs. CORAZON D. ANICETO G.R. No. 224006 / July 6, 2020 G.R. No. 224472 A stipulation in a lease contract that authorizes the lessor to take possession of the leased premises is valid and binding, even when there is no judicial action. JULIE PARCON-SONG vs. LILIA B. PARCON G.R. No. 199582 / July 7, 2020 Generally, if the certificate of title indicates nothing that will raise concern, and the mortgagee is unaware of any defect in the title or any other problematic circumstance surrounding the property, the mortgagee is not required to further investigate. However, when the mortgagee is a bank, a higher standard is imposed before it is considered a mortgagee in good faith. Banks cannot simply rely on the title alone, but must further investigate the property to ensure the genuineness of the title. / Civil Law / 33 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES JULIE PARCON-SONG vs. LILIA B. PARCON G.R. No. 199582 / July 7, 2020 [A] foreign bank can now participate in foreclosure sales of real property mortgaged to it, and even possess it. There are limitations, namely: (a) the possession must be limited to five years; (b) the property title shall not be transferred to it; and (c) within the five-year period, it must transfer its rights to a qualified Philippine national. In case a foreign bank fails to transfer the property, it will be liable to pay half of 1 % per annum of the foreclosure price until it transfers the property. ALESON SHIPPING LINES vs. CGU INTERNATIONAL INS. PLC. AND CANDANO SHIPPING LINES, INC. G.R. No. 217311 / July 15, 2020 The high degree of diligence exacted by the law creates a presumption against common carriers when goods are lost, destroyed or deteriorated. To overcome this presumption, common carriers must prove that they exercised extraordinary diligence in the handling and transportation of the goods. JEFFREY M. CALMA vs. MARI KRIS SANTOS-CALMA G.R. No. 242070 / August 24, 2020 When the totality of evidence demonstrates psychological incapacity, a marriage may be declared null and void pursuant to Article 36 of the Family Code. GOTESCO PROPERTIES, INC. vs. NTERNATIONAL EXCHANGE BANK (NOW UNION BANK OF THE PHILIPPINES) G.R. No. 212262 / August 26, 2020 Acceleration clauses in loans for a fixed term give creditors a choice to: (1) defer collection of any unpaid amounts until the period ends; or (2) invoke the clause and collect the entire demandable amount immediately. This right to choose is rendered meaningless if the loan is made demandable only when the term expires. / Civil Law / 34 2020.21 JUSTICE MARVIC LEONEN CASE DOCTRINES Case Digests for Bar Exams / Civil Law / 35