Helmut Muller, a German national, purchased property in the Philippines using funds from the sale of a house he inherited in Germany. The property was titled under his wife Elena's name to circumvent the Philippine constitution's prohibition on foreign ownership of land. When the couple separated, Helmut sought reimbursement for the cost of the property. The Court of Appeals ruled in his favor, but the Supreme Court reversed, finding that no reimbursement could be granted as it would allow circumvention of the constitutional prohibition. Equity provides no relief when the petitioner has acted inequitably by knowingly violating the law.
Helmut Muller, a German national, purchased property in the Philippines using funds from the sale of a house he inherited in Germany. The property was titled under his wife Elena's name to circumvent the Philippine constitution's prohibition on foreign ownership of land. When the couple separated, Helmut sought reimbursement for the cost of the property. The Court of Appeals ruled in his favor, but the Supreme Court reversed, finding that no reimbursement could be granted as it would allow circumvention of the constitutional prohibition. Equity provides no relief when the petitioner has acted inequitably by knowingly violating the law.
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Principle of Equity. Court of Law vs. Court of Equity.
Helmut Muller, a German national, purchased property in the Philippines using funds from the sale of a house he inherited in Germany. The property was titled under his wife Elena's name to circumvent the Philippine constitution's prohibition on foreign ownership of land. When the couple separated, Helmut sought reimbursement for the cost of the property. The Court of Appeals ruled in his favor, but the Supreme Court reversed, finding that no reimbursement could be granted as it would allow circumvention of the constitutional prohibition. Equity provides no relief when the petitioner has acted inequitably by knowingly violating the law.
Helmut Muller, a German national, purchased property in the Philippines using funds from the sale of a house he inherited in Germany. The property was titled under his wife Elena's name to circumvent the Philippine constitution's prohibition on foreign ownership of land. When the couple separated, Helmut sought reimbursement for the cost of the property. The Court of Appeals ruled in his favor, but the Supreme Court reversed, finding that no reimbursement could be granted as it would allow circumvention of the constitutional prohibition. Equity provides no relief when the petitioner has acted inequitably by knowingly violating the law.
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IN RE: PETITION FOR SEPARATION OF PROPERTY ELENA BUENAVENTURA
MULLER, Petitioner, versus HELMUT MULLER, Respondent.
G.R. No. 149615 | 2006-08-29 FACTS: Elena Muller and Helmut Muller were married in Hamburg, Germany. The couple resided in Germany ata a house owned by Helmut's parents. In 1992, they moved to Philippines. Helmut sold the house he inherited from his parents to purchase a parcel of land in Antipolo, Rizal. The lot costs P528,000 and the construction of the house costs P2.3M. Respondent was aware of the constitutional prohibition and expressly admitted his knowledge thereof to this Court. He declared that he had the Antipolo property titled in the name of petitioner because of the said prohibition. Due to incompatibilities and Helmut's alleged womanazing, drinking, and maltreatment, the spouses eventually separated. Helmut filed a petition for separation of properties before the RTC. In its ruling, although the Family Code provides that properties acquired by gratuitous title are excluded from the conjugal property, Helmut cannot recover the Antipolo property. This is because his acquisition of the property is in violation of Sec. 7, Art. XII of the Constitution. The constitution provides for the prohibition for an alien to acquire lands in the Philippines. Court of Appeals (CA) ruled that Helmut be reimbursed of the cost of acquisition of the land and the cost of the construction of the house. ISSUE: Whether or not the Helmut can be reimbursed of the cost of Antipolo property? RULING: No. The Court of Appeals erred in holding that an implied trust was created and resulted by operation of law in view of petitioner's marriage to respondent. Save for the exception provided in cases of hereditary succession, respondent's disqualification from owning lands in the Philippines is absolute. Not even an ownership in trust is allowed. Besides, where the purchase is made in violation of an existing statute and in evasion of its express provision, no trust can result in favor of the party who is guilty of the fraud. To hold otherwise would allow circumvention of the constitutional prohibition. Invoking the principle that a court is not only a court of law but also a court of equity, is likewise misplaced. It has been held that equity as a rule will follow the law and will not permit that to be done indirectly which, because of public policy, cannot be done directly. He who seeks equity must do equity, and he who comes into equity must come with clean hands. The latter is a frequently stated maxim which is also expressed in the principle that he who has done inequity shall not have equity. It signifies that a litigant may be denied relief by a court of equity on the ground that his conduct has been inequitable, unfair and dishonest, or fraudulent, or deceitful as to the controversy in issue. Thus, in the instant case, respondent cannot seek reimbursement on the ground of equity where it is clear that he willingly and knowingly bought the property despite the constitutional prohibition.