Lopez v. Esquivel Jr.
Lopez v. Esquivel Jr.
Lopez v. Esquivel Jr.
DECISION
CHICO-NAZARIO, J : p
Years later, it was allegedly discovered that the subject property, with
an area of 2.6950 hectares, was erroneously included in survey plan H-
138612 of Hermogenes' property. The subject property supposedly formed
part of the land owned by Lauro Hizon (Hizon), which adjoined that of
Hermogenes. Resultantly, on 29 November 1965, Hermogenes executed a
Quitclaim 13 over his rights and interests to the subject property 14 in Hizon's
favor. Hizon, in turn, sold the subject property to Esquivel and Talens, as
evidenced by a Deed of Absolute Sale of Unregistered Land 15 dated 26
August 1968.
Hermogenes died 16 on 20 August 1982. The Lopez siblings, as
Hermogenes' heirs, filed an action with the RTC of Antipolo, Rizal, Branch 71,
for the cancellation of the Deed of Absolute Sale dated 31 July 1959,
executed between Hermogenes and Aguilar, and which involved the entire
19.4888-hectare land. It was docketed as Civil Case No. 463-A. In a
Decision 17 dated 5 February 1985, the RTC declared the aforesaid Deed of
Absolute Sale null and void ab initio as it was made in violation of Section
118 of Commonwealth Act No. 141, otherwise known as the Public Land Act,
as amended. The said RTC Decision was affirmed in toto by the Court of
Appeals in its Decision 18 dated 18 August 1987 in CA-G.R. CV No. 06242.
In a Resolution 19 dated 13 April 1988, this Court denied Aguilar's appeal,
docketed as G.R. No. 81092, for being filed late.
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
On 4 March 1993, on the basis of the Deed of Absolute Sale of
Unregistered Land dated 26 August 1968 executed by Hizon in their favor,
Esquivel and Talens filed an Application for Registration of the subject
property with the RTC of Antipolo, Rizal, Branch 73. It was docketed as LRC
Case No. 93-1211. The Lopez siblings filed an opposition to the application
in LRC Case No. 93-1211, asserting, among other grounds, that: (1) they did
not know the persons and personal circumstances of Esquivel and Talens
who were not the former's adjoining property owners; (2) the subject
property, which Esquivel and Talens sought to have registered, was already
titled under the Torrens system and covered by Transfer Certificates of Title
(TCT) No. 207990 to No. 207997 20 in the names of the Lopez siblings; and
(3) Tax Declaration No. 04-10304 of Esquivel and Talens covering the subject
property was spurious. The Lopez siblings also moved for the dismissal of
LRC Case No. 93-1211 invoking the final and executory Decision 21 dated 5
February 1985 of the RTC of Antipolo, Rizal, Branch 71, in Civil Case No. 463-
A, which affirmed Hermogenes' title to the 19.4888-hectare land, which
included the subject property.
The RTC rendered its Decision 22 on 4 April 1995 in LRC Case No. 93-
1211, granting the Application for Registration of the subject property filed
by Esquivel and Talens. Accordingly, the Lopez siblings filed a Motion for
Reconsideration of the said RTC judgment. Acting on the Motion of the Lopez
siblings, the RTC issued an Order 23 dated 23 May 1996 in which it corrected
several errors in its earlier decision, i.e., a typographical error on the area of
the subject property, and a mistake in the conversion of the area of the
subject property from square meters to hectares. The RTC also stated in the
same Order that it could not direct the amendment of the TCTs in the names
of the Lopez siblings, to exclude therefrom the subject property which was
adjudged to Esquivel and Talens, as the RTC was sitting only as a land
registration court. The RTC, thus, advised Esquivel and Talens to file an
action for reconveyance of the subject property and only when Esquivel and
Talens succeed in such action can they subsequently cause the registration
of the subject property in their names. SaTAED
Following the advice of the RTC, Esquivel and Talens filed with the RTC
of Antipolo, Rizal, Branch 73, on 2 October 1996, a Complaint 24 for
Reconveyance and Recovery of Possession of the subject property against
the Lopez siblings. The case was docketed as Civil Case No. 96-4193.
In their Complaint, Esquivel and Talens alleged that when the Lopez
siblings had the land they inherited from Hermogenes registered, they
included the subject property, which Hermogenes already conveyed to Hizon
in the Quitclaim dated 29 November 1965. Hence, the subject property was
erroneously included in TCTs No. 207990 to No. 207997, issued by the
Register of Deeds of Marikina, Metro Manila, in the names of the Lopez
siblings. The subject property is presently occupied and in the physical
possession of the Lopez siblings. 25
In their Answer with Compulsory Counterclaim, the Lopez siblings
denied all the allegations of Esquivel and Talens. As their special defenses,
the Lopez siblings called attention to the non-compliance by Esquivel and
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
Talens with Section 5, Rule 7 of the 1997 Revised Rules of Civil Procedure,
on non-forum shopping, considering that there was another case before the
RTC of Antipolo, Rizal, Branch 71, 26 also involving the subject property and
the issues on the genuineness and validity of the Deed of Absolute Sale of
Unregistered Land dated 26 August 1968, executed by Hizon in favor of
Esquivel and Talens. The Lopez siblings further averred that the cause of
action of Esquivel and Talens was already barred by the statute of limitations
and laches since they failed to assert their alleged rights to the subject
property for 25 years. 27 The Lopez siblings additionally interposed that the
Quitclaim involving the subject property, invoked by Esquivel and Talens,
was ineffective, because by the time it was executed by Hermogenes in
favor of Hizon on 29 November 1965, Hermogenes had already sold his
entire 19.4888-hectare land, of which the subject property was part, to
Aguilar on 31 July 1959. The Lopez siblings finally argued that the said
Quitclaim was a nullity as it contravened Section 17 28 of the Public Land
Act, as amended. 29
The Lopez siblings aver that a deeper analysis of the assailed Decision
of the Court of Appeals will reveal the latter's utter disregard for or deviation
from the law of the case set by this Court in its Decisions in Santos v. Court
of Appeals, 33 Group Commander, Intelligence & Security Group, Philippine
Army v. Dr. Malvar , 34 and Lopez v. Court of Appeals, 35 where the issue on
the validity of the homestead patent granted to Hermogenes, father of the
Lopez siblings, was already passed upon. In these three Decisions, the Court
already declared the homestead patent awarded to Hermogenes valid.
Therefore, the Court of Appeals erred in applying the rule on estoppel in
disregard of the doctrine of law of the case. AEITDH
The Lopez siblings further argue that the assailed Decision of the Court
of Appeals runs counter to the "personal-to-the-homestead-applicant" policy
36 provisions embodied in Sections 12, 13, and 17 of the Public Land Act, as
amended, that this Court upheld in Santos, Cabuay, and Lopez. The Court
precisely disregarded the rule on estoppel in pais or the principle of trust in
said three cases as it had no room for application under the tenor or context
of the mandatory personal-to-the-homestead-applicant policy provisions of
the Public Land Act, as amended. It was, thus, erroneous for the appellate
court to apply estoppel in pais in ruling against the Lopez siblings in its
assailed judgment.
The Lopez siblings additionally avow that in the proceedings conducted
on Hermogenes' homestead application by the Bureau of Lands, it was
verified that the land applied for, which included the subject property, was
disposable public land. If it was true that the subject property was only
erroneously included in the homestead patent awarded to Hermogenes, then
such an award could only be challenged by the government in an action for
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
reversion under Section 101 of the Public Land Act, as amended; or objected
to by a private person under Section 102 of the same statute. Resultantly,
Esquivel and Talens could not have availed themselves of the recourse
prescribed by Section 38 37 of Act No. 496, otherwise known as the Land
Registration Act, in their action for reconveyance of the subject property.
Section 38 of the Land Registration Act may only be availed of by an
aggrieved owner whose property was fraudulently included in a decree of
registration. A decree of registration under the Land Registration Act merely
confirms, but does not confer, ownership over private land so as to bring it
under the operation of the Torrens system. The remedies provided under
Sections 101 and 102 of the Public Land Act, on one hand, and Section 38 of
the Land Registration Act, on the other, are exclusive of each other,
considering the basic distinction between the subject matters thereof, i.e.,
the award or grant of public land in the former, and the registration of
private land in the latter.
The Lopez siblings also maintain that Hizon, predecessor-in-interest of
Esquivel and Talens, who claimed ownership over the subject property, was
duty-bound to exercise the diligence of a good father of the family by
opposing or taking exception to Hermogenes' homestead application, which
included said property. Even after the homestead patent over the subject
property was already awarded to Hermogenes, Hizon still had opportunity to
protest the same before the Bureau of Lands, prior to the registration of said
homestead patent with the Register of Deeds. For failing to take appropriate
actions, Hizon, and his successors-in-interest, Esquivel and Talens, are now
barred from doing so by the statute of limitations and laches.
Finally, the Lopez siblings assert that the reliance by the Court of
Appeals on the legal efficacy of the Quitclaim, involving the subject property
executed by Hermogenes in favor of Hizon, is misplaced. The reason for the
renunciation, waiver, or repudiation by Hermogenes of his rights to the
subject property in Hizon's favor, as stated in the said Quitclaim, is not a
recognized cause or consideration for conveyance of a parcel of land subject
of a homestead patent under the prohibitive and mandatory provisions of the
Public Land Act, as amended. Moreover, whatever efficacy the Quitclaim had
was already barred by the ruling of this Court en banc in Cabuay and Lopez.
DHTCaI
The Court now proceeds to resolve the issue of whether Esquivel and
Talens have a right to the reconveyance of the subject property based on
the Quitclaim executed by Hermogenes in Hizon's favor on 29 November
1965. Such determination shall be dependent on whether the Quitclaim was
executed beyond the period within which encumbrance or alienation of the
land acquired by homestead patent is prohibited; and whether the Quitclaim
effected a valid conveyance of the subject property from Hermogenes to
Hizon.
Section 118 of the Public Land Act, as amended, prohibits any
encumbrance or alienation of lands acquired under homestead provisions
from the date of the approval of application and for a term of five years from
and after the date of issuance of the patent or grant. The same provision
provides that no alienation, transfer, or conveyance of any homestead after
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
five years and before 25 years after issuance of title shall be valid without
the approval of the Secretary of Agriculture and Natural Resources, which
approval shall not be denied except on constitutional and legal grounds.
In this case, the subject property was included, whether correctly or
erroneously, in the 19.4888-hectare land awarded to Hermogenes, by virtue
of a homestead patent, issued on 7 February 1939. The Quitclaim over the
subject property, a 2.6950-hectare portion of the said 19.4888-hectare land,
was executed by Hermogenes in Hizon's favor on 29 November 1965.
Between the date of issuance of the homestead patent to Hermogenes and
that of the execution of the Quitclaim, more than 26 years had passed.
Therefore, the execution of the Quitclaim was no longer within the five-year
period within which the land covered by the homestead patent issued to
Hermogenes must not be encumbered or alienated; and was also beyond the
period between five and 25 years following the issuance of patent within
which approval of the Secretary of Environment and Natural Resources is still
necessary to make the alienation or encumbrance valid. 40
Although it has been established that the Quitclaim was executed
beyond any of the prohibitive and/or restrictive periods under the Public
Land Act, as amended, the Court must next look into whether the Quitclaim
had the effect of validly conveying the subject property to Hizon.
The pertinent portions of the Quitclaim in question read as follows:
2. That it has come to my personal knowledge that a
boundary owner of my above-cited parcel of land by the name of
[Hizon] has duly caused the survey of his land bordering mine . . .; that
after the actual execution of the survey of the land of said [Hizon], it
was found out that the land which has been in his possession for many
many years or since time immemorial is within my plan denominated
as H-138612;
The Court also cannot consider the subject property to have been held
in trust by Hermogenes for and on behalf of Hizon. Settled is the rule that a
homestead applicant must personally comply with the legal requirements for
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
a homestead grant. The homestead applicant himself must possess the
necessary qualifications, cultivate the land, and reside thereon. It would be a
circumvention of the law if an individual were permitted to apply "in behalf
of another", as the latter may be disqualified by or might not comply with the
residency and cultivation requirements. 44
In the end, the Quitclaim dated 29 November 1965 could not have
validly conveyed or transferred ownership of the subject property from
Hermogenes to Hizon. It is null and void for being contrary to the provisions
of the Public Land Act, as amended. As a result, Hizon acquired no right over
the subject property which he could have sold to Esquivel and Talens; and
the Deed of Absolute Sale of Unregistered Land dated 26 August 1968,
executed by Hizon in favor of Esquivel and Talens, is similarly void for lack of
an object.
Even granting arguendo, that the Quitclaim is valid and transferred
ownership of the subject property from Hermogenes to Hizon, the latter and
his successors-in-interest, Esquivel and Talens, are now barred by the statute
of limitations and laches from asserting their rights to the subject property,
after failing to exercise the same for an unreasonable length of time.
Laches has been defined as the failure of or neglect for an
unreasonable and unexplained length of time to do that which, by exercising
due diligence, could or should have been done earlier, or to assert a right
within reasonable time, warranting a presumption that the party entitled
thereto has either abandoned it or declined to assert it. Thus, the doctrine of
laches presumes that the party guilty of negligence had the opportunity to
do what should have been done, but failed to do so. 45
In the instant case, when Esquivel and Talens filed with the RTC their
application for registration of the subject property on 5 March 1993, 28
years had passed since the execution by Hermogenes of the Quitclaim
covering the subject property in favor of Hizon on 29 November 1965; and
25 years had elapsed from the execution by Hizon of the Deed of Absolute
Sale of the subject property in favor of Esquivel and Talens on 26 August
1968. During these periods, without providing any reasons therefor, neither
Hizon nor Esquivel and Talens took possession of the subject property or
exercised in any other way their rights over the same. DaIAcC
Nordec Phil. and Dr. Malvar alleged in their Petition for Annulment of
Judgment that the Lopez siblings, the successors-in-interest of Hermogenes,
were the registered owners of 15 parcels of land situated at Overlooking,
Sumulong Highway, Barangay Sta. Cruz, (formerly Barrio dela Paz), Antipolo
City, Rizal, covered by plan (LRC) Psd-3289610, with a total area of 19.4888
hectares. 46 Among these parcels of land were Lots 1, 2, 3, 4, 7 and 8,
covered by TCTs No. 207990 to No. 207997 47 of the Registry of Deeds of
Marikina City, with an aggregate area of 2.875 hectares, and which
constituted the subject property. 48
Beginning 20 April 1994, Nordec Phils. and Dr. Malvar purchased the
aforementioned lots from the Lopez siblings and their assigns, namely, Atty.
Angeles and Rogelio Amurao (Amurao), 49 as evidenced by several Deeds of
Absolute Sale and Deeds of Conditional Sale. Immediately after making such
purchases, Nordec Phils. and Dr. Malvar introduced large, scale *
improvements on the subject property, among which were several business
establishments, 50 at a cost of no less than P50,000,000.
In 1996, when the subject property was involved in Civil Case No. 96-
4130 heard before the RTC of Antipolo, Rizal, Branch 74, entitled Heirs of
Elino Adia v. Heirs of Hermogenes Lopez , it was Atty. Angeles who
represented and protected the interest of Nordec Phils. and Dr. Malvar in
said case by filing a Motion to Dismiss. 51 In Cabuay, Jr. , wherein Dr. Malvar
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
and the Lopez siblings were named the respondents in the Petition Seeking
for Clarification as to the Validity and Forceful Effect of the Two (2) Final and
Executory but Conflicting Decisions of this Court involving the subject
property, it was also Atty. Angeles who appeared for Nordec Phils. and Dr.
Malvar.
Sometime after 2 August 2004, Atty. Angeles again informed Nordec
Phil. and Dr. Malvar that there was another case filed against the Lopez
siblings involving the subject property. The said case was the action for
reconveyance filed by Esquivel and Talens, docketed as Civil Case No. 96-
4193 before RTC of Antipolo, Rizal, Branch 73, but which was already, by
then, the subject of an appeal before the Court of Appeals, docketed as CA-
G.R. CV No. 70200 (and which would eventually reach this Court in G.R.
No. 168734). Atty. Angeles, however, belittled this most recent case
involving the subject property, and even showed to Nordec Phils. and Dr.
Malvar the Motion to Resolve Appeal dated 2 August 2004, which Atty.
Angeles filed in CA-G.R. CV No. 70200, together with the Brief for the Lopez
siblings. Yet, Nordec Phils. and Dr. Malvar conducted their own inquiry and
were surprised to discover that the Decision rendered by the RTC on 11
January 2001 in Civil Case No. 96-4193 was actually adverse to their rights
and interest; and despite this, they were neither impleaded nor represented
therein. Even Atty. Angeles, the supposed counsel for Nordec Phils. and Dr.
Malvar, did not lift a finger to protect their rights in said case.
IcHSCT
Nordec Phils. and Dr. Malvar asseverate that they were not impleaded
as defendants in Civil Case No. 96-4193 where the RTC rendered its Decision
dated 11 January 2001, Nordec Phils. and Dr. Malvar's rights to and interest
in the subject property. The remedies of new trial, appeal, petition for relief
and other appropriate remedies are also no longer available to Nordec Phils.
and Dr. Malvar because of the extrinsic fraud committed upon them by the
Lopez siblings, Esquivel, Talens, Atty. Angeles, and Atty. Ang Cheng; and of
the lack of jurisdiction on the part of the RTC to take cognizance of Civil Case
No. 96-4193 and to render the 11 January 2001 Decision therein. Even the
Motion for Intervention of Nordec Phils. and Dr. Malvar in CA-G.R. No. 70200,
the appeal of the 11 January 2001 Decision of the RTC, was not allowed by
the Court of Appeals. Therefore, it is neither improper nor premature for
Nordec Phil. and Malvar to file a Petition for the annulment of the said 11
January 2001 Decision of the RTC in Civil Case No. 96-4193, even though the
said Decision, after being affirmed in toto by the Court of Appeals, is now
pending appeal before this Court. HcISTE
Nordec Phils. and Dr. Malvar additionally argue that the Court of
Appeals resolved the question of procedure in a manner that was patently
not in accordance with the 1997 Rules of Civil Procedure, particularly, when
it held that (1) Rule 47 does not cover the judgment of the RTC in this
particular case; and (2) Nordec Phils. and Dr. Malvar still had an adequate
remedy in seeking intervention in G.R. No. 167834, the appeal to this Court
of the RTC Decision dated 11 January 2001, as affirmed by the Court of
Appeals.
Nordec Phils. and Dr. Malvar insist that since Rules 37, 38 and 41 of the
1997 Rules of Civil Procedure on motion for new trial, petition for relief, and
appeal, respectively, simply mention "judgments or final orders", without
making any distinction as to whether or not the same is final and executory;
it should follow that where only the words "judgments or final orders" are
similarly used in Rule 47 on annulment of judgments, then such words
should be understood to also refer to all judgments or final orders,
regardless of whether they are final and executory.
The issues and arguments raised by Nordec Phils. and Dr. Malvar all
boil down to the question of whether the Court of Appeals erred in dismissing
their Petition for Annulment of Judgment for being premature since the
judgment sought to be annulled is still the subject of a Petition for Review
before this Court, docketed as G.R. No. 168734, and is not yet final and
executory.
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
The Court answers in the negative.
The ordinary remedies of a motion for new trial or reconsideration and
a petition for relief from judgment are remedies available only to parties in
the proceedings where the assailed judgment is rendered. In fact, it has
been held that a person who was never a party to the case, or even
summoned to appear therein, cannot make use of a petition for relief from
judgment. 52 Indubitably, Nordec Phils. and Dr. Malvar cannot avail
themselves of the aforesaid ordinary remedies of motion for new trial,
petition for relief from judgment, or appeal, because they were not parties to
the proceedings in Civil Case No. 96-4193 in which the RTC Decision dated
11 January 2001 sought to be annulled was rendered. Nordec Phils. and Dr.
Malvar also cannot seek the annulment of the 11 January 2001 Decision of
the RTC in Civil Case No. 96-4193.
An action for annulment of judgment is a remedy in law independent of
the case where the judgment sought to be annulled was rendered. The
purpose of such action is to have the final and executory judgment set aside
so that there will be a renewal of litigation. It is resorted to in cases where
the ordinary remedies of new trial, appeal, petition for relief from judgment,
or other appropriate remedies are no longer available through no fault of the
petitioner, and is based on only two grounds: extrinsic fraud, and lack of
jurisdiction or denial of due process. A person need not be a party to the
judgment sought to be annulled, and it is only essential that he can prove his
allegation that the judgment was obtained by the use of fraud and collusion
and he would be adversely affected thereby. 53 EHaASD
Footnotes
1. Per Resolution dated 20 March 2006, rollo (G.R. No. 168734), pp. 180-182.
3. Id. at 38-39.
4. Penned by Executive Judge Mauricio M. Rivera, id. at 117-123.
8. Id. at 699-700.
9. Originally registered on 31 August 1944 as Original Certificate of Title No. P-
736 pursuant to a homestead patent in the name of Hermogenes Lopez,
Records, Volume II, p. 20. TECIaH
18. Penned by Associate Justice Celso L. Magsino with Associate Justices Jose
A.R. Melo (now a retired member of this Court) and Esteban M. Lising,
concurring. Rollo (G.R. No. 168734), pp. 66-70.
19. Rollo (G.R. No. 168734), p. 71.
20. Records, Volume I, pp. 8-22.
21. Penned by Executive Judge Antonio V. Benedicto, rollo (G.R. No. 168734),
pp. 54-65.
27. Twenty-five years had lapsed since Esquivel and Talens purportedly
purchased the subject property from Hizon in 1968, until they filed with the
RTC their application for registration of the said property (LRC Case No. 93-
1211) in 1993. HIDCTA
28. SEC. 17. Before final proof shall be submitted by any person claiming to
have complied with the provisions of this Chapter, due notice, as prescribed
by the Secretary of Agriculture and Natural Resources, shall be given to the
public of his intention to make such proof, stating therein the name and
address of the homesteader, the description of the land, within its boundaries
and area, the names of the witness by whom it is expected that the
necessary facts will be established, and the time and place at which, and the
name of the officer before whom, such proof will be made.
37. SEC. 38. If the court after hearing finds that the applicant or adverse
claimant has title as stated in his application or adverse claim and proper for
registration, a decree of confirmation and registration shall be entered. Every
decree of registration shall bind the land, and quiet title thereto, subject only
to the exceptions stated in the following section. It shall be conclusive upon
and against all persons, including the Insular Government and all the
branches thereof, . . . subject, however, to the right of any person deprived of
land or of any estate or interest therein by decree of registration obtained by
fraud to file in the competent Court of First Instance a petition for review
within one year after entry of the decree provided no innocent purchaser for
value has acquired an interest. Upon the expiration of said term of one year,
every decree or certificate of title issued in accordance with this section shall
be incontrovertible. If there is any such purchaser, the decree of registration
shall not be opened, but shall remain in full force and effect forever, subject
only to the right of appeal herein before provided; . . . But any person
CD Technologies Asia, Inc. © 2023 cdasiaonline.com
aggrieved by such decree in any case may pursue his remedy by action for
damages against the applicant or any other person for fraud in procuring the
decree. . . . (As amended by Section 3, Act 3621; and Sec. 1, Act No. 3630).
38. Cucueco v. Court of Appeals , 484 Phil. 254, 267 (2004). SIHCDA
39. Ariola v. Philex Mining Corporation, G.R. No. 147756, 9 August 2005, 466
SCRA 152, 176-177.
49. Only with respect to the portions wherein they hold equitable title.
50. This includes the following: (1) Kelly heights-Overlook Bar and Grill; (2)
Cloud 9 Restaurant; (3) Celestial Inn; (4) The Cliff Restaurant; (5) Seventh
Heaven; (6) Mountain Grill Restaurant; and (7) Convention Center (See CA
rollo [CA G.R. CV No. 91428], pp. 122-159). TaEIAS
51. Annex P.
52. Alaban v. Court of Appeals, G.R. No. 156021, 23 September 2005, 470
SCRA 697, 707-708.
53. Id.
54. Id.