G.R. No.

195814
EVERSLEY CHILDS SANITARIUM, represented by DR. GERARDO M. AQUINO, JR. (now DR. PRIMO
JOEL S. ALVEZ) CHIEF OF SANITARIUM,, Petitioner
vs
SPOUSES ANASTACIO PERLABARBARONA, Respondents
DECISION
LEONEN, J.:
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 fina1 disposition on the issue of ownership, however, must be resolved in the
proper forum.
This is a Petition for Review on Certiorari 1 assailing the Court of Appeals February 17, 2011
Decision,2 which upheld the judgments of the Municipal Trial Court and Regional Trial Court ordering
Eversley Childs Sanitarium (Eversley) to vacate the disputed property. Eversley assails the August 31,
2011 Resolution3 of the Court of Appeals for resolving its Motion for Reconsideration despite its earlier
submission of a Motion to Withdraw the Motion for Reconsideration.
Eversley is a public health facility operated by the Department of Health to administer care and treatment to
patients suffering from Hansen's disease, commonly known as leprosy, and to provide basic health
services to non-Hansen's cases.4 Since 1930, it has occupied a portion of a parcel of land denominated as
Lot No. 1936 in Jagobiao, Mandaue City, Cebu.5
Spouses Anastacio and Perla Barbarona (the Spouses Barbarona) allege that they are the owners of Lot
No. 1936 by virtue of Transfer Certificate of Title (TCT) No. 53698. They claim that they have acquired the
property from the Spouses Tarcelo B. Gonzales and Cirila Alba (the Spouses Gonzales), 6 whose ownership
was covered by Original Certificate of Title (OCT) No. R0-824. Per the Spouses Barbarona's verification,
OCT No. R0-824 was reconstituted based on Decree No. 699021, issued to the Spouses Gonzales by the
Land Registration Office on March 29, 1939.7
On May 6, 2005, the Spouses Barbarona filed a Complaint for Ejectment (Complaint) 8 before the Municipal
Trial Court in Cities of Mandaue City against the occupants of Lot No. 1936, namely, Eversley, Jagobiao
National High School, the Bureau of Food and Drugs, and some residents (collectively, the occupants). The
Spouses Barbarona alleged that they had sent demand letters and that the occupants were given until April
15, 2005 to vacate the premises. They further claimed that despite the lapse of the period, the occupants
refused to vacate; hence, they were constrained to file the Complaint. 9
In their Answer, 10 the occupants alleged that since they had been in possession of the property for more
than 70 years, the case was effectively one for recovery of possession, which was beyond the jurisdiction
of the Municipal Trial Court. They likewise claimed that the Spouses Barbarona were guilty of laches since
it took more than 60 years for them to seek the issuance of a Torrens title over the property. They also
averred that the Spouses Barbarona's certificate of title was void since they, the actual inhabitants of the
property, were never notified of its issuance. 11
In its September 29, 2005 Decision, 12 the Municipal Trial Court in Cities ordered the occupants to vacate
the property, finding that the action was one for unlawful detainer, and thus, within its jurisdiction. It likewise
found that the Spouses Barbarona were the lawful owners of Lot No. 1936 and that the occupants were
occupying the property by mere tolerance. 13
The Municipal Trial Court in Cities also held that a titled property could not be acquired through laches. It
found that even the occupants' tax declarations in their names could not prevail over a valid certificate of
title. 14 The dispositive portion of its Decision read:
WHEREFORE, judgment is hereby rendered in favor of the [the Spouses Barbarona] and against all the
[occupants] and ordering the latter to peacefully vacate the portion of the premises in question and remove
their houses, structures or any building and improvements introduced or constructed on said portion on Lot
1936 covered by TCT No. 53698.

The [occupants] are further ordered to pay the following, to wit:

1. The amount of ₱10.00 per square meter for the area occupied by each [of the
occupants] as reasonable monthly compensation for the use of the portion of the
property of [the Spouses Barbarona] from the date of the filing of the complaint until
[the occupants] shall have actually vacated and turned over the portion of their
possession to the [Spouses Barbarona];

2. The amount of ₱20,000 as litigation expenses and P20,000 as reasonable

3. The cost of suit.

Counterclaims of the [occupants] are hereby ordered DISMISSED for lack of merit.

SO ORDERED.15

The occupants appealed to the Regional Trial Court. In its November 24, 2006 Decision, 16 the Regional
Trial Court affirmed in toto the Decision of the Municipal Trial Court in Cities. One of the occupants,
Eversley, filed a motion for reconsideration. 17
During the pendency of Eversley's motion, or on February 19, 2007, the Court of Appeals in CA-G.R. CEB-
SP No. 01503 rendered a Decision, cancelling OCT No. R0-824 and its derivative titles, including TCT No.
53698, for lack of notice to the owners of the adjoining properties and its occupants. 18
On April 23, 2007, the Regional Trial Court issued an Order denying Eversley's Motion for
Reconsideration. 19
Eversley filed a Petition for Review 20 with the Court of Appeals, arguing that the Municipal Trial Court had
no jurisdiction over the action and that the Regional Trial Court erred in not recognizing that the subsequent
invalidation of the Spouses Barbarona's certificate of title was prejudicial to their cause of action. 21
On February 17, 2011, the Court of Appeals rendered its Decision, 22 denying the Petition. According to the
Court of Appeals, the allegations in the Complaint were for the recovery of the physical possession of the
property and not a determination of the property's ownership. The action, thus, was one for unlawful
detainer and was properly filed with the Municipal Trial Court. 23
The Court of Appeals held that the subsequent invalidation of the issuance of the certificate of title was
immaterial, stating:
Whether or not [the Spouses Barbarona are] holder[s] or not of a certificate of title is immaterial. The matter
of the issuance of the decree by the Land Registration Office in favor of [the Spouses Barbarona's]
predecessor[s-]in[-]interest has not been resolved on the merits by the RTC. [The Spouses Barbarona,]
having acquired all the rights of their predecessors-in-interest[,] have[,] from the time of the issuance of the
decree[,] also derived title over the property and nullification of the title based on procedural defects is not
tantamount to the nullification of the decree. The decree stands and remains a prima facie source of the
[Spouses Barbarona's] right of ownership over the subject property. 24

Eversley, represented by the Office of the Solicitor General, filed a Petition for Review 25 with this Court
assailing the February 17, 2011 Decision of the Court of Appeals. It likewise prayed for the issuance of a
Temporary Restraining Order and/or Writ of Preliminary Injunction 26 to restrain the immediate execution of
the assailed judgment and to prevent impairing the operations of the government hospital, which had been
serving the public for more than 80 years.
In its May 13, 2011 Resolution, 27 this Court issued a Temporary Restraining Order enjoining the
implementation of the Court of Appeals February 17, 2011 Decision. Respondents were also directed to
comment on the Petition.
In its Petition before this Court, petitioner argues that the nullification of TCT No. 53698 should have been
prejudicial to respondents' right to recover possession over the property. Petitioner claims that since the
Metropolitan Trial Comi relied on respondents' title to determine their right of possession over the property,
the subsequent nullification of their title should have invalidated their right of possession. Petitioner
maintains that even if Decree No. 699021 was valid, the effect of its validity does not extend to respondents
since there is no evidence to prove that they have acquired the property from Tarcelo B. Gonzales, the
owner named in the decree.28
Petitioner points out that respondents' Complaint before the trial court was a case for accion publiciana, not
one for unlawful detainer, since respondents have not proven petitioner's initial possession to be one of
mere tolerance. It claims that respondents' bare allegation that they merely tolerated petitioner's
possession is insufficient in a case for unlawful detainer, especially with petitioner's possession of the
property since 1930, which pre-dates the decree that was reconstituted in 193 9. 29 It argues that its long
occupancy should have been the subject of judicial notice since it is a government hospital serving the city
for decades and is even considered as a landmark of the city. 30
On the other hand, respondents counter that the cancellation of TCT No. 53698 "does not ... divest
respondents of their rightful ownership of the subject property[,] more so their right of possession" 31 since
their predecessors-in-interest's title was still valid and protected under the Torrens system. They insist that
"petitioner has not shown . . . any sufficient evidence proving [its] ownership ... much less, [its] right of
possession."32
Respondents maintain that the Municipal Trial Court had jurisdiction over their complaint since prior
physical possession is not an indispensable requirement and all that is required is "that the one-year period
of limitation commences from the time of demand to vacate."33
While the Petition was pending before this Court, respondents raised a few procedural concerns before
submitting their Comment. In their Motion for Leave to File Comment/Manifestation, 34 respondents
informed this Court that petitioner still had a pending and unresolved Motion for Reconsideration 35 before
the Court of Appeals, in violation of the rule against forum shopping. Respondents, nonetheless, filed their
Comment/Manifestation,36 to which this Court ordered petitioner to reply.37
Petitioner filed its Reply38 and submitted a Manifestation,39 explaining that the Court of Appeals had issued
a Resolution40 on August 31, 2011, denying its Motion for Reconsideration despite its earlier filing on April
14, 2011 of a Manifestation and Motion to Withdraw its Motion for Reconsideration. Thus, it manifested its
intention to likewise question the Court of Appeals August 31, 2011 Resolution with this Court.
On November 28, 2011, this Court noted that petitioner's Reply and Manifestation and directed
respondents to comment on the Manifestation.41
In their Comment on Petitioner's Manifestation, 42 respondents assert that while petitioner submitted a
Manifestation and Motion to Withdraw its Motion for Reconsideration, the Court of Appeals did not issue
any order considering petitioner's Motion for Reconsideration to have been abandoned. The Court of
Appeals instead proceeded to resolve it in its August 31, 2011 Resolution; hence, respondents submit that
petitioner violated the rule on non-forum shopping. 43
Based on the arguments of the parties, this Court is asked to resolve the following issues:
First, whether or not the nullification of the Spouses Anastacio and Perla Barbarona's title had the effect of
invalidating their right of possession over the disputed property; and
Second, whether or not the Spouses Anastacio and Perla Barbarona's complaint against Ev