Republic of the Philippines

SUPREME COURT
Manila

FIRST DIVISION

G.R. No. 184148               June 9, 2014

NORA B. CALALANG-PARULAN and ELVIRA B. CALALANG, Petitioners,

DECISION

VILLARAMA, JR., J.:

Before us is a petition for review on certiorari assailing the Decision  dated December 21, 2007 and
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Resolution  dated July 25, 2008 of the Thirteenth Division of the Court of Appeals (CA) in CA-G.R. CV No.
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72531. The CA modified the Decision  dated July 10, 2001 of the Regional Trial Court (RTC), Branch 21, of
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Malolos, Bulacan, in Civil Case No. 370-M-91.

The facts, as culled from the records, follow:

In a Complaint  for Annulment of Sale and Reconveyance of Property filed with the RTC of Malolos, Bulacan on
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June 10, 1991, the respondents Rosario Calalang-Garcia, Leonora Calalang-Sabile, and Carlito S. Calalang
asserted their ownership over a certain parcel of land against the petitioners Nora B. Calalang-Parulan and
Elvira B. Calalang. The said lot with an area of 1,266 square meters and specifically identified as Lot 1132, Cad.
333, Bigaa Cadastre situated in Brgy. Burol 2nd, Municipality of Balagtas, Province of Bulacan, was allegedly
acquired by the respondents from their mother Encarnacion Silverio, through succession as the latter’s
compulsory heirs.

According to the respondents, their father, Pedro Calalang contracted two marriages during his lifetime. The first
marriage was with their mother Encarnacion Silverio. During the subsistence of this marriage, their parents
acquired the above-mentioned parcel of land from their maternal grandmother Francisca Silverio. Despite
enjoying continuous possession of the land, however, their parents failed to register the same. On June 7, 1942,
the first marriage was dissolved with the death of Encarnacion Silverio.

On November 6, 1967, Pedro Calalang entered into a second marriage with Elvira B. Calalang who then gave
birth to Nora B. Calalang-Parulan and Rolando Calalang. According to the respondents, it was only during this
time that Pedro Calalang filed an application for free patent over the parcel of land with the Bureau of Lands.
Pedro Calalang committed fraud in such application by claiming sole and exclusive ownership over the land
since 1935 and concealing the fact that he had three children with his first spouse. As a result, on September 22,
1974, the Register of Deeds of Bulacan issued Original Certificate of Title (OCT) No. P-2871  in favor of Pedro
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Calalang only.

On February 17, 1984, Pedro Calalang sold the said parcel of land to Nora B. Calalang-Parulan as evidenced by
a Deed of Sale  executed by both Pedro Calalang and Elvira B. Calalang. Accordingly, the Register of Deeds of
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Bulacan cancelled OCT No. P-2871 and issued Transfer Certificate of Title (TCT) No. 283321 in the name of
Nora B. Calalang-Parulan. On December 27, 1989,  Pedro Calalang died.
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The respondents assailed the validity of TCT No. 283321 on two grounds. First, the respondents argued that the
sale of the land was void because Pedro Calalang failed to obtain the consent of the respondents who were co-
owners of the same. As compulsory heirs upon the death of Encarnacion Silverio, the respondents claimed that
they acquired successional rights over the land. Thus, in alienating the land without their consent, Pedro
Calalang allegedly deprived them of their pro indiviso share in the property. Second, the respondents claimed
that the sale was absolutely simulated as Nora B. Calalang-Parulan did not have the capacity to pay for the
consideration stated in the Deed of Sale.

In their Answer,  the petitioners argued that the parcel of land was acquired during the second marriage of Pedro
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Calalang with Elvira B. Calalang. They stressed that OCT No. P-2871 itself stated that it was issued in the name
of "Pedro Calalang, married to Elvira Berba [Calalang]." Thus, the property belonged to the conjugal partnership
of the spouses Pedro Calalang and Elvira B. Calalang. The petitioners likewise denied the allegation that the
sale of the land was absolutely simulated as Nora B. Calalang-Parulan was gainfully employed in Spain at the
time of the sale. Moreover, they alleged that the respondents did not have a valid cause of action against them
and that their cause of action, if any, was already barred by laches, estoppel and prescription. By way of
counterclaim, the petitioners also sought the payment to them of moral and exemplary damages plus costs of
suit for the filing of the clearly unfounded suit.

On July 10, 2001, the trial court rendered decision in favor of the respondents. The dispositive portion of the
RTC decision reads as follows:

WHEREFORE, judgment is hereby rendered in favor of the plaintiffs and against the defendants in the following
manner:

1. Ordering the defendants to reconvey in favor of the plaintiffs, their rightful share to three-fourth (3/4) of
one-half (1/2) or a total of 474.75 square meters at 158.25 square meters for each of the three plaintiffs,
namely: Rosario, Leonora, and Juanito all surname[d] Calalang, of the real property covered by TCT No.
283321 of the Registry of Deeds of Bulacan corresponding to their shares in the conjugal estate of the
late Encarnacion S. Calalang [sic];

2. Ordering defendants to pay plaintiffs the amount of ₱50,000.00 for moral damages; ₱50,000.00 for
attorney’s fees and another ₱50,000.00 for litigation expenses.

3. Dismissing the defendants’ counterclaims.

With costs against the defendants.

SO ORDERED. 9

The trial court declared that the parcel of land was jointly acquired by the spouses Pedro Calalang and
Encarnacion Silverio from the parents of the latter. Thus, it was part of the conjugal property of the first marriage
of Pedro Calalang. When this marriage was dissolved upon the death of Encarnacion Silverio on June 7,
1942,the corresponding shares to the disputed property were acquired by the heirs of the decedent according to
the laws of succession. In particular, the trial court allocated half of the disputed property to Pedro Calalang as
his share in the conjugal partnership and allocated the other half to the three respondents and Pedro Calalang to
be divided equally among them. The trial court then ordered all of Pedro’s share to be given to Nora B. Calalang-
Parulan on account of the sale. The trial court also ruled that because the application for free patent filed by
Pedro Calalang was attended by fraud and misrepresentation, Pedro Calalang should be considered as a
trustee of an implied trust.

Aggrieved by the adverse ruling, the petitioners appealed the case to the CA which rendered the assailed
Decision on December 21, 2007. The dispositive portion of the CA decision reads,

WHEREFORE, in light of the foregoing premises, the Decision dated July 10, 2001of the Regional Trial Court of
Malolos, Bulacan is hereby MODIFIED to read as follows:

"WHEREFORE, judgment is hereby rendered in favor of the plaintiffs, and against the defendants in the
following manner:

1. Ordering the defendants to reconvey in favor of the plaintiffs, their rightful share to the property owned
by their common father Pedro Calalang, equivalent to one half(1/2) portion of the whole area or 633
square meters to be divided equally by the three plaintiffs, namely:

Rosario, Leonora and Carlito, all surnamed Calalang, each getting an area of 211 square meters
of the property covered by TCT No. 2883321 of the Registry of Deeds of Bulacan corresponding
to their shares in the property of their late father Pedro Calalang;

2. Ordering defendants to pay plaintiffs the amount of ₱50,000.00 for moral damages; ₱50,000.00 for
attorney’s fees and another ₱50,000.00 for litigation expenses.

3. Dismissing the defendants’ counterclaims.

SO ORDERED.

SO ORDERED. 10

The CA reversed the factual findings of the trial court and held that Pedro Calalang was the sole and exclusive
owner of the subject parcel of land. Firstly, it held that there was insufficient evidence to prove that the disputed
property was indeed jointly acquired from the parents of Encarnacion Silverio during the first marriage. Secondly,
the CA upheld the indefeasibility of OCT No. P-2871. It held that although the free patent was issued in the
name of "Pedro Calalang, married to Elvira Berba [Calalang]" this phrase was merely descriptive of the civil
status of Pedro Calalang at the time of the registration of the disputed property. Thus, contrary to the ruling of
the trial court, upon the death of Encarnacion Silverio on June 7, 1942, the respondents did not acquire any
successional rights to the parcel of land which was exclusively owned by Pedro Calalang. However, applying the
rules of succession, Pedro’s heirs namely, Rosario Calalang-Garcia, Leonora Calalang-Sabile, Carlito Calalang,
Nora B. Calalang-Parulan, Elvira B. Calalang, and Rolando Calalang, succeeded Pedro to the land in equal
shares upon his death. Thus, the CA ordered the petitioners to reconvey in favor of the respondents their rightful
shares to the land. The CA ruled that the sale by Pedro Calalang to Nora B. Calalang-Parulan was fraudulent
and fictitious as the vendee was in bad faith and the respondents were unlawfully deprived of their pro indiviso
shares over the disputed property. As regards the issue of prescription, the CA ruled that the prescriptive period
for reconveyance of fraudulently registered real property is ten years. Since the property was registered in the
name of Nora in1984 and the action for reconveyance was filed in 1991, the action has not yet prescribed.

On January 23, 2008, petitioners filed their Motion for Reconsideration. The CA, however, denied their motion in
its Resolution dated July 25, 2008.

Hence, this petition raising the sole issue:

Whether or not the court a quo gravely erred in rendering its December 21, 2007 Decision modifying the July 10,
2001 Decision of the trial court, and in issuing its July 25, 2008 Resolution denying petitioners’ Motion for
Reconsideration dated January 23, 2008. 11

Essentially, the only issue in this case is whether Pedro Calalang was the exclusive owner of the disputed
property prior to its transfer to his daughter Nora B. Calalang-Parulan.

The petitioners argue that the disputed property belonged to the conjugal partnership of the second marriage of
Pedro Calalang with Elvira B. Calalang as evidenced by OCT No. P-2871 which was issued to Pedro Calalang
during the subsistence of his marriage to Elvira B. Calalang. On the other hand, the respondents claim that the
disputed property was transferred by their maternal grandmother, Francisca Silverio, to their parents, Pedro
Calalang and Encarnacion Silverio, during the latter’s marriage. Thus, the respondents argue that it belonged to
the conjugal partnership of the first marriage of Pedro Calalang with Encarnacion Silverio.

The petition is meritorious.

Preliminarily, we note that the resolution of the issue in this case requires a reevaluation of the probative value of
the evidence presented by the parties in order to trace the title of the disputed property. What is involved is
indeed a question of fact which is generally beyond the jurisdiction of this Court to resolve in a petition for review
on certiorari.  However, a recognized exception to the rule is when the RTC and CA have conflicting findings of
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fact as in this case.  Here, while the trial court ruled that the disputed property belonged to the conjugal
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partnership of the first marriage of Pedro Calalang with Encarnacion Silverio, the court a quo declared that the
evidence proved the sole and exclusive ownership of the disputed property of Pedro Calalang.

We have carefully reviewed the records of this case and sustain the finding of the CA that Pedro Calalang is the
sole and exclusive owner of the disputed property.

The trial court ruled that the respondents were able to establish that Lot 1132, Cad. 333 originated from the
parents of Encarnacion, and therefore said property "either became property of Encarnacion in her own right or
jointly with her husband Pedro Calalang in 1936." In so ruling, the trial court relied on the testimony of Rosario
Calalang-Garcia that her parents built a nipa house on the subject lot and lived there before and after World War
II. The trial court further noted that Rosario’s testimony was corroborated by her cousin and adjacent neighbor
Manolo Calalang. 14
However, as correctly pointed out by the CA, a close perusal of the records of this case would show that the
records are bereft of any concrete proof to show that the subject property indeed belonged to respondents’
maternal grandparents. The evidence respondents adduced merely consisted of testimonial evidence such as
the declaration of Rosario Calalang-Garcia that they have been staying on the property as far as she can
remember and that the property was acquired by her parents through purchase from her maternal grandparents.
However, she was unable to produce any document to evidence the said sale, nor was she able to present any
documentary evidence such as the tax declaration issued in the name of either of her parents. Moreover, we
note that the free patent was issued solely in the name of Pedro Calalang and that it was issued more than 30
years after the death of Encarnacion and the dissolution of the conjugal partnership of gains of the first marriage.
Thus, we cannot subscribe to respondents’ submission that the subject property originally belonged to the
parents of Encarnacion and was acquired by Pedro Calalang and Encarnacion.

We likewise cannot sustain the argument of the petitioners that the disputed property belongs to the conjugal
partnership of the second marriage of Pedro Calalang with Elvira B. Calalang on the ground that the title was
issued in the name of "Pedro Calalang, married to Elvira Berba [Calalang]."

The contents of a certificate of title are enumerated by Section 45 of Presidential Decree No. 1529, otherwise
known as the Property Registration Decree:

SEC. 45. Statement of personal circumstances in the certificate. – Every certificate of title shall set forth the full
names of all persons whose interests make up the full ownership in the whole land, including their civil status,
and the names of their respective spouses, if married, as well as their citizenship, residence and postal address.
If the property covered belongs to the conjugal partnership, it shall be issued in the names of both spouses. 1âwphi1

A plain reading of the above provision would clearly reveal that the phrase "Pedro Calalang, married to Elvira
Berba [Calalang]" merely describes the civil status and identifies the spouse of the registered owner Pedro
Calalang. Evidently, this does not mean that the property is conjugal. In Litam v. Rivera,  we declared:
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Further strong proofs that the properties in question are the paraphernal properties of Marcosa Rivera, are the
very Torrens Titles covering said properties. All the said properties are registered in the name of "Marcosa
Rivera, married to Rafael Litam." This circumstance indicates that the properties in question belong to the
registered owner, Marcosa Rivera, as her paraphernal properties, for if they were conjugal, the titles covering the
same should have been issued in the names of Rafael Litam and Marcosa Rivera. The words "married to Rafael
Litam" written after the name of Marcosa Rivera, in each of the above mentioned titles are merely descriptive of
the civil status of Marcosa Rivera, the registered owner of the properties covered by said titles.

It must likewise be noted that in his application for free patent,  applicant Pedro Calalang averred that the land
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was first occupied and cultivated by him since 1935 and that he had planted mango trees, coconut plants,
caimito trees, banana plants and seasonal crops and built his house on the subject lot. But he applied for free
patent only in 1974 and was issued a free patent while already married to Elvira B. Calalang. Thus, having
possessed the subject land in the manner and for the period required by law after the dissolution of the first
marriage and before the second marriage, the subject property ipso jure became private property and formed
part of Pedro Calalang’s exclusive property.  It was therefore excluded from the conjugal partnership of gains of
17

the second marriage. 18

As the sole and exclusive owner, Pedro Calalang had the right to convey his property in favor of Nora B.
Calalang-Parulan by executing a Deed of Sale on February 17, 1984. The CA therefore erred in ruling that
Pedro Calalang deprived his heirs of their respective shares over the disputed property when he alienated the
same.

It is hornbook doctrine that successional rights are vested only at the time of death. Article 777 of the New Civil
Code provides that "[t]he rights to the succession are transmitted from the moment of the death of the
decedent." In Butte v. Manuel Uy and Sons, Inc.,  we proclaimed the fundamental tenets of succession:
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The principle of transmission as of the time of the predecessor's death is basic in our Civil Code, and is
supported by other related articles. Thus, the capacity of the heir is determined as of the time the decedent died
(Art. 1034); the legitime is to be computed as of the same moment (Art. 908), and so is the in officiousness of
the donation inter vivas (Art. 771). Similarly, the legacies of credit and remission are valid only in the amount due
and outstanding at the death of the testator (Art. 935), and the fruits accruing after that instant are deemed to
pertain to the legatee (Art. 948).
 Thus, it is only upon the death of Pedro Calalang on December 27, 1989 that his heirs acquired their respective
inheritances, entitling them to their pro indiviso shares to his whole estate. At the time of the sale of the disputed
property, the rights to the succession were not yet bestowed upon the heirs of Pedro Calalang. And absent clear
and convincing evidence that the sale was fraudulent or not duly supported by valuable consideration (in effect
an in officious donation inter vivas), the respondents have no right to question the sale of the disputed property
on the ground that their father deprived them of their respective shares. Well to remember, fraud must be
established by clear and convincing evidence. Mere preponderance of evidence is not even adequate to prove
fraud.  The Complaint for Annulment of Sale and Reconveyance of Property must therefore be dismissed.
20

WHEREFORE, the petition for review on certiorari is GRANTED. The Decision dated December 21, 2007 and
Resolution dated July 25, 2008 of the Thirteenth Division of the Court of Appeals in CA-G.R. CV No. 72531 are
REVERSED and SET ASIDE. Civil Case No. 370-M-91, or the Complaint for Annulment of Sale and
Reconveyance of Property filed by the respondents with the Regional Trial Court, Branch 21 of Malolos,
Bulacan, on June 10, 1991, is hereby DISMISSED for lack of merit.

No pronouncement as to costs.

SO ORDERED.

G.R. No. 184148 

June 9, 2014

Facts:

 Pedro Calalang was married to Encarnacion Silverio. Encarnacion, however, died in 1942.
 Pedro and Encarnacion had children, who are the respondents in this case.
 Pedro contracted another marriage with Elvira Berba.
 During his marriage to Encarnacion, they obtained a parcel of land allegedly from a sale from
Encarnacion’s parents. This was not registered under the spouses’ names.
 There was, however, no documents presented to prove the sale. There were only testimonies
presented for this.
 30 years after the death of Encarnacion and after the dissolution of the conjugal partnership of
gains
 It was only then that Pedro was able to obtain a patent over the land.
 On February 17, 1984, Pedro sold the property to Nora Calalang-Parulan, his daughter from the
second marriage.
 Pedro’s children from the first marriage allege that the application for the free patent of the land
was attended with fraud because he claimed sole ownership over it despite having 3 children
with Encarnacion.
 The children from the first marriage also said that the sale was absolutely simulated because at
that time, Nora had no means to pay for the land.
 However, it was found out later that Nora was gainfully employed in Spain at the time of the
sale.
 The children from the second marriage, on the other hand, contend that the land belongs to both
their parents because it was issued in the name of “Pedro Calalang, married to Elvira Berba.”

Issue:

Was Pedro Calalang the exclusive owner of the property prior to its transfer to Nora, his
daughter?

Ruling:
Yes.

The SC reviewed the finding of facts in this case because as an exception, it can do this because
the RTC and CA have conflicting findings.

There was no proof that the property indeed belonged to the respondents’ maternal
grandparents. Only testimonial evidence was presented here.

The patent was also issued more than 30 years after the death of Encarnacion and after the
dissolution of the conjugal partnership of gains of the first marriage.

These facts lead to the fact that the property was not owned by both Encarnacion and Pedro.

As to the statement “Pedro Calalang, married to Elvira Berba,” this merely describes that civil
status and identifies the spouse of the registered owner. This does not mean that the property
is conjugal.

Section 45 of Presidential Decree No. 1529

SEC. 45. Statement of personal circumstances in the certificate. – Every certificate of title shall
set forth the full names of all persons whose interests make up the full ownership in the whole
land, including their civil status, and the names of their respective spouses, if married, as well
as their citizenship, residence and postal address. If the property covered belongs to the conjugal
partnership, it shall be issued in the names of both spouses.

In his application for the free patent, Pedro averred that he was the first occupant of the land
and had cultivated it since 1935. He applied for the patent before his marriage to Elvira but was
only granted it during the subsistence of the marriage.

This means that the property becomes the exclusive property of Pedro Calalang.

And because he is the exclusive owner thereof, he has the right to convey the property to Nora.

As to fraud

Fraud must be proven by clear and convincing evidence. There was no sufficient evidence in this
case that would lead to the conclusion that fraud was present.