The Treasurer of the Philippines appealed a ruling that held the Assurance Fund subsidiarily liable for damages sustained by private respondents who purchased land from an impostor. The Supreme Court ruled that recovery from the Assurance Fund was not allowed in this case because private respondents never acquired ownership of the land, as the certificate of title they received from the impostor was null and void from the beginning. As they were not registered owners or innocent purchasers, private respondents' remedy was to pursue a civil case against the impostor rather than seek damages from the Assurance Fund.
The Treasurer of the Philippines appealed a ruling that held the Assurance Fund subsidiarily liable for damages sustained by private respondents who purchased land from an impostor. The Supreme Court ruled that recovery from the Assurance Fund was not allowed in this case because private respondents never acquired ownership of the land, as the certificate of title they received from the impostor was null and void from the beginning. As they were not registered owners or innocent purchasers, private respondents' remedy was to pursue a civil case against the impostor rather than seek damages from the Assurance Fund.
The Treasurer of the Philippines appealed a ruling that held the Assurance Fund subsidiarily liable for damages sustained by private respondents who purchased land from an impostor. The Supreme Court ruled that recovery from the Assurance Fund was not allowed in this case because private respondents never acquired ownership of the land, as the certificate of title they received from the impostor was null and void from the beginning. As they were not registered owners or innocent purchasers, private respondents' remedy was to pursue a civil case against the impostor rather than seek damages from the Assurance Fund.
The Treasurer of the Philippines appealed a ruling that held the Assurance Fund subsidiarily liable for damages sustained by private respondents who purchased land from an impostor. The Supreme Court ruled that recovery from the Assurance Fund was not allowed in this case because private respondents never acquired ownership of the land, as the certificate of title they received from the impostor was null and void from the beginning. As they were not registered owners or innocent purchasers, private respondents' remedy was to pursue a civil case against the impostor rather than seek damages from the Assurance Fund.
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Remedies
Treasurer of the Philippines vs Court of Appeals
GR NO. L-42805; 31 August 1987 TREASURER OF THE PHILIPPINES COURT OF APPEALS AND SPOUSES EDUARDO OCSON AND vs NORA E. OCSON Pone Cruz, J. nte Facts Lawaan Lopez offered to sell to private respondents a land in QC. However, the sale was deferred because Lopez said his certificate of title had been burned in his house and he would have to file a petition with CFI QC for a duplicate certificate of title. Petition was granted after hearing without any opposition causing issuance of new duplicate certificate of title. private respondents paid Lopez purchase price ph 98,700 in full, then TCT was issued to them. 2 years later, a woman claiming to be the real Lawaan Lopez, filed a petition to declare null and void the transfer of her land in favor of private respondents on the ground that it had been made by an impostor. Court granted annulment of certificate of title. Lopez appealed claiming that private defendants should have been required to pay damages to her and the costs. Dismissed because there was no collusion between private respondents and impostor. Private respondents filed a complaint against impostor Lopez and treasurer of the Philippines as custodian of Assurance fund for damages sustained by plaintiffs. Trial court and CA held Assurance Fund subsidiarily liable for P138,264. Issue W/N Treasurer of the Phlippines is liable. Held No. Petition Granted. Rulin Recovery of damages from Assurance Fund not allowed in case at bar. The first situation is g clearly inapplicable as we are not dealing here with any omission, mistake or malfeasance of the clerk of court or of the register of deeds or his personnel in the performance of their duties. The second situation is also inapplicable. The strongest obstacle to recovery thereunder is that the private respondents acquired no land or any interest therein as a result of the invalid sale made to them by the spurious Lawaan Lopez. Manifestly, the deception imposed upon them by the impostor deprived the private respondents of the money they delivered to him as consideration for the sale. But there is no question that the subsequent cancellation of the sale did not deprive them of the land subject thereof, or of any interest therein, for they never acquired ownership over it in the first place. the real Lawaan Lopez had her own genuine certificate of title all the time and it remained valid despite the issuance of the new certificate of title in the name of the private respondents. That new certificate, as the trial court correctly declared, was null and void ab initio, which means that it had no legal effect whatsoever and at any time. The private respondents were not for a single moment the owner of the property in question and so cannot claim to have been unlawfully deprived thereof when their certificate of title was found and declared to be a total nullity. Respondents cannot claim the status of innocent purchasers of the land for such failure to exercise the necessary diligence, and they never acquired any title to the land or any interest therein. Respondents being neither the registered owners nor innocent purchasers, they are not entitled to recover from the Assurance Fund. Remedy of respondents is to proceed against the impostor in a civil action for recovery and damages or prosecute him under the Revised Penal Code.
Recovery from Assurance Fund could be demanded by:
1. Any person who sustains loss or damage under the following conditions: (a) that there was no negligence on his part; and (b) that the loss or damage was sustained through any omission, mistake, or misfeasance of the clerk of court, or the register of deeds, his deputy or clerk, in the performance of their respective duties under the provisions of the land Registration Act,' or 2. Any person who has been deprived of any land or any interest therein under the following conditions: (a) that there was no negligence on his part; (b) that he was deprived as a consequence of the bringing of his land or interest therein under the provisions of the Property Registration Decree; or by the registration by any other persons as owner of such land; or by mistake, omission or misdescription in any certificate or owner's duplicate, or in any entry or memorandum in the register or other official book, or by any cancellation; and (c) that he is barred or in any way precluded from bringing an action for the recovery of such land or interest therein, or claim upon the same.
Insurance of Phil. Islands Corporation v. Spouses Gregorio GR No. 174104, February 14, 2011 "27 Yrs Na Ang Nakalipas, Ngayon Ka Lang Nagreklamo NG Fraud!" Prescription v. Laches