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Prof. Joselito Guianan Chan's The Labor Code of the Philippines, Annotated Labor Standards & Social Legislation Volume I of a 3-Volume Series 2019 Edition (3rd Revised Edition)
 

 
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UNITED STATES SUPREME COURT JURISPRUDENCE
 

 
PHILIPPINE SUPREME COURT JURISPRUDENCE
 

   
October-2001 Jurisprudence                 

  • G.R. No. 137841 October 1, 2001 - PEOPLE OF THE PHIL. v. ALBERTO CHUA

  • G.R. No. 117512 October 2, 2001 - REBECCA ALA-MARTIN v. HON. JUSTO M. SULTAN

  • G.R. No. 120098 October 2, 2001 - RUBY L. TSAI v. HON. COURT OF APPEALS EVER TEXTILE MILLS

  • G.R. No. 124037 October 2, 2001 - PEOPLE OF THE PHILIPPINES v. REYNALDO DE GUZMAN

  • G.R. No. 126592 October 2, 2001 - ROMEO G. DAVID v. JUDGE TIRSO D.C. VELASCO, ET AL.

  • G.R. No. 129900 October 2, 2001 - JANE CARAS y SOLITARIO v. HON. COURT OF APPEALS and PEOPLE OF THE PHILIPPINES

  • G.R. No. 133000 October 2, 2001 - PATRICIA NATCHER petitioner v. HON. COURT OF APPEALS AND THE HEIRS OF GRACIANO DEL ROSARIO-LETICIA DEL ROSARIO

  • G.R. No. 133895 October 2, 2001 - ZENAIDA M. SANTOS v. CALIXTO SANTOS, ET AL.

  • G.R. Nos. 135522-23 October 2, 2001 - PEOPLE OF THE PHIL. v. AMORSOLO G. TORRES

  • G.R. No. 137777 October 2, 2001 - THE PRESIDENTIAL AD-HOC FACT FINDING COMMITTEE, ET AL. v. THE HON. OMBUDSMAN ANIANO DESIERTO, ET AL.

  • G.R. No. 138322 October 2, 2001 - GRACE J. GARCIA v. REDERICK A. RECIO

  • G.R. No. 138929 October 2, 2001 - PEOPLE OF THE PHIL. v. FLORENTINO DEL MUNDO

  • G.R. No. 139050 October 2, 2001 - REPUBLIC OF THE PHILIPPINES v. THE COURT OF TAX APPEALS and AGFHA

  • G.R. No. 142877 October 2, 2001 - JINKIE CHRISTIE A. DE JESUS and JACQUELINE A. DE JESUS v. THE ESTATE OF DECEDENT JUAN GAMBOA DIZON

  • G.R. No. 125081 October 3, 2001 - PEOPLE OF THE PHILIPPINES v. REMEDIOS PASCUA

  • G.R. No. 128195 October 3, 2001 - ELIZABETH LEE and PACITA YULEE v. REPUBLIC OF THE PHILIPPINES

  • G.R. Nos. 128514 & 143856-61 October 3, 2001 - PEOPLE OF THE PHILIPPINES v. NILO LEONES

  • G.R. Nos. 142602-05 October 3, 2001 - PEOPLE OF THE PHILIPPINES v. BONIFACIO ARIOLA

  • A.M. No. 01-6-192-MCTC October 5, 2001 - Request To Designate Another Judge To Try And Decide Criminal Case No. 3713

  • A.M. No. RTJ-01-1610 October 5, 2001 - ATTY. EDGAR H. TALINGDAN v. JUDGE HENEDINO P. EDUARTE

  • G.R. No. 124498 October 5, 2001 - EDDIE B. SABANDAL v. HON. FELIPE S. TONGCO Presiding Judge

  • G.R. No. 127441 October 5, 2001 - DOROTEO TOBES @ DOTING v. COURT OF APPEALS

  • G.R. No. 130499 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. PAMFILO QUIMSON @ "NOEL QUIMSON

  • G.R. No. 130962 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. JOSE REAPOR y SAN JUAN

  • G.R. No. 131040 October 5, 2001 - PEOPLE OF THE PHIL. v. MICHAEL FRAMIO SABAGALA

  • G.R. No. 132044 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. ANTONIO @ Tony EVANGELISTA Y BINAY

  • G.R. No. 132718 October 5, 2001 - PEOPLE OF THE PHILIPPINES v. JOSE CASTILLON III and JOHN DOE

  • G.R. Nos. 135452-53 October 5, 2001 - PEOPLE OF THE PHIL. v. IRENEO M. ALCOREZA

  • G.R. No. 139760 October 5, 2001 - FELIZARDO S. OBANDO v. HON. COURT OF APPEALS

  • G.R. No. 144189 October 5, 2001 - R & M GENERAL MERCHANDISE v. COURT OF APPEALS, ET AL.

  • G.R. No. 121948 October 8, 2001 - PERPETUAL HELP CREDIT COOPERATIVE v. BENEDICTO FABURADA

  • G.R. No. 123075 October 8, 2001 - PEOPLE OF THE PHIL. v. PEDRO L. NUELAN

  • G.R. No. 129926 October 8, 2001 - PEOPLE OF THE PHIL. v. NOLE M. ZATE

  • G.R. No. 137599 October 8, 2001 - PEOPLE OF THE PHILIPPINES v. GILBERT BAULITE and LIBERATO BAULITE

  • G.R. No. 138941 October 8, 2001 - AMERICAN HOME ASSURANCE COMPANY v. TANTUCO ENTERPRISES

  • G.R. No. 141297 October 8, 2001 - DOMINGO R. MANALO v. COURT OF APPEALS (Special Twelfth Division) and PAIC SAVINGS AND MORTGAGE BANK

  • A.M. No. 01-9-246-MCTC October 9, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. JUDGE ALIPIO M. ARAGON

  • G.R. No. 138886 October 9, 2001 - PEOPLE OF THE PHILIPPINES v. SP01 WILFREDO LEAÑO SP01 FERDINAND MARZAN SPO1 RUBEN B. AGUSTIN SP02 RODEL T. MADERAL * SP02 ALEXANDER S. MICU and SP04 EMILIO M. RAMIREZ

  • G.R. No. 141182 October 9, 2001 - HEIRS OF PEDRO CUETO Represented by ASUNCION CUETO v. HON. COURT OF APPEALS (SPECIAL FORMER FIRST DIVISION) and CONSOLACION COMPUESTO

  • A.M. No. 99-12-03-SC October 10, 2001 - RE: INITIAL REPORTS ON THE GRENADE INCIDENT THAT OCCURRED AT ABOUT 6:40 A.M. ON DECEMBER 6, 1999

  • G.R. No. 129313 October 10, 2001 - SPOUSES MA. CRISTINA D. TIRONA and OSCAR TIRONA v. HON. FLORO P. ALEJO as Presiding Judge

  • G.R. Nos. 135679 & 137375 October 10, 2001 - PEOPLE OF THE PHILIPPINES v. GODOFREDO RUIZ

  • G.R. No. 136258 October 10, 2001 - PEOPLE OF THE PHIL. v. CARLOS FELICIANO

  • A.M. No. 2001-9-SC October 11, 2001 - DOROTEO IGOY v. GILBERT SORIANO

  • A.M. No. RTJ-99-1485 October 11, 2001 - TEOFILO C. SANTOS v. JUDGE FELICIANO V. BUENAVENTURA

  • G.R. No. 80796 & 132885 October 11, 2001 - PROVINCE OF CAMARINES NORTE v. PROVINCE OF QUEZON

  • G.R. No. 118387 October 11, 2001 - MARCELO LEE v. COURT OF APPEALS and HON. LORENZO B. VENERACION and HON. JAIME T. HAMOY

  • G.R. Nos. 123913-14 October 11,2001

    PEOPLE OF THE PHIL. v. PABLO CALLOS

  • G.R. No. 130415 October 11, 2001 - PEOPLE OF THE PHILIPPINES v. ALVIN YRAT y BUGAHOD and RAUL JIMENA, ET AL.

  • G.R. No. 130562 October 11, 2001 - Brigida Conculada v. Hon. Court Of Appeals

  • G.R. No. 112526 October 12, 2001 - STA. ROSA REALTY DEVELOPMENT CORPORATION v. COURT OF APPEALS

  • G.R. No. 122710 October 12, 2001 - PHILIPPINE NATIONAL BANK v. COURT OF APPEALS and REMINGTON INDUSTRIAL SALES CORPORATION

  • G.R. Nos. 134769-71 October 12, 2001 - PEOPLE OF THE PHIL. v. ROBERTO BATION

  • G.R. No. 137843 October 12, 2001 - PEOPLE OF THE PHIL. v. EDUARDO S. AÑONUEVO

  • G.R. No. 139904 October 12, 2001 - PEOPLE OF THE PHIL. v. CONRADO MERCADO

  • G.R. No. 136470 October 16, 2001 - VENANCIO R. NAVA v. COMMISSION ON AUDIT

  • G.R. No. 140794 October 16, 2001 - PEOPLE OF THE PHIL. v. RICARDO T. AGLIDAY

  • A.M. No. P-00-7-323-RTJ October 17, 2001 - RE: RELEASE BY JUDGE MANUEL T. MURO, RTC, BRANCH 54 MANILA, OF AN ACCUSED IN A NON-BAILABLE OFFENSE

  • A.M. No. P-00-1419 October 17, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. MAGDALENA G. MAGNO

  • A.M. No. RTJ-97-1390 & AM RTJ-98-1411 October 17, 2001 - ATTY. CESAR B. MERIS v. JUDGE CARLOS C. OFILADA

  • G.R. No. 123137 October 17, 2001 - PEOPLE OF THE PHILIPPINES v. PO2 ALBERT ABRIOL

  • G.R. No. 124513 October 17, 2001 - ROBERTO ERQUIAGA v. HON. COURT OF APPEALS

  • G.R. No. 127540 October 17, 2001 - EUGENIO DOMINGO v. HON. COURT OF APPEALS

  • G.R. No. 127830 October 17, 2001 - MANOLET LAVIDES v. ERNESTO B. PRE

  • G.R. No. 129069 October 17, 2001 - PEOPLE OF THE PHIL. v. JULIO R. RECTO

  • G.R. No. 129236 October 17, 2001 - PEOPLE OF THE PHIL. v. RAYMUNDO G. DIZON

  • G.R. No. 129389 October 17, 2001 - PEOPLE OF THE PHILIPPINES v. TEODORICO UBALDO

  • G.R. Nos. 132673-75 October 17, 200

    PEOPLE OF THE PHIL. v. DOMINADOR C. GOMEZ

  • G.R. No. 136291 October 17, 2001 - LETICIA M. MAGSINO v. REPUBLIC OF THE PHILIPPINES

  • G.R. No. 136869 October 17, 2001 - PEOPLE OF THE PHILIPPINES v. DENNIS MAZO

  • G.R. No. 141673 October 17, 2001 - MANUEL L. QUEZON UNIVERSITY/AUGUSTO B. SUNICO v. NLRC (Third Division), ET AL.

  • G.R. No. 142726 October 17, 2001 - PEOPLE OF THE PHIL. v. APOLONIO ACOSTA

  • G.R. No. 143190 October 17, 2001 - ANTONIO P. BELICENA v. SECRETARY OF FINANCE

  • G.R. No. 143990 October 17, 2001 - MARIA L. ANIDO v. FILOMENO NEGADO and THE HONORABLE COURT OF APPEALS

  • G.R. Nos. 121039-45 October 18, 2001 - THE PEOPLE OF THE PHILIPPINES v. MAYOR ANTONIO L. SANCHEZ

  • G.R. No. 132869 October 18, 2001 - GREGORIO DE VERA v. COURT OF APPEALS

  • G.R. No. 143486 October 18, 2001 - PEOPLE OF THE PHILIPPINES v. MARIO DUMAGAY TUADA

  • G.R. No. 144735 October 18, 2001 - YU BUN GUAN v. ELVIRA ONG

  • G.R. No. 116285 October 19, 2001 - ANTONIO TAN v. COURT OF APPEALS and the .C.C.P

  • G.R. Nos. 121201-02 October 19, 2001 - THE PEOPLE OF THE PHILIPPINES plaintiff-appellee v. GIO CONCORCIO @ JUN

  • G.R. No. 129995 October 19, 2001 - THE PROVINCE OF BATAAN v. HON. PEDRO VILLAFUERTE

  • G.R. No. 130730 October 19, 2001 - HERNANDO GENER v. GREGORIO DE LEON and ZENAIDA FAUSTINO

  • G.R. No. 133002 October 19, 2001 - PEOPLE OF THE PHILIPPINES v. INTOY GALLO @ PALALAM

  • G.R. No. 137904 October 19, 2001 - PURIFICACION M. VDA. DE URBANO v. GOVERNMENT SERVICE INSURANCE SYSTEM (GSIS)

  • A.M. No. 99-12-497-RTC October 23, 2001 - REQUEST OF JUDGE FRANCISCO L. CALINGIN

  • G.R. No. 121267 October 23, 2001 - SMITH KLINE & FRENCH LABORATORIES v. COURT OF APPEALS, ET AL.

  • G.R. No. 124036 October 23, 2001 - FIDELINO GARCIA v. COURT OF APPEALS, ET AL.

  • G.R. No. 124295 October 23, 2001 - JUDGE RENATO A. FUENTES v. OFFICE OF THE OMBUDSMAN-MINDANAO

  • G.R. No. 125193 October 23, 2001 - MANUEL BARTOCILLO v. COURT OF APPEALS and the PEOPLE OF THE PHILIPPINES

  • G.R. No. 130846 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ROGELIO PAMILAR y REVOLIO

  • G.R. No. 131841 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. RUBEN VILLARMOSA

  • G.R. No. 132373 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. TIRSO ARCAY @ "TISOY" and TEODORO CLEMEN @ "BOY

  • G.R. No. 134740 October 23, 2001 - IRENE V. CRUZ v. COMMISSION ON AUDIT

  • G.R. No. 135481 October 23, 2001 - LIGAYA S. SANTOS v. COURT OF APPEALS, ET AL.

  • G.R. No. 136105 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ANTONIO PAREDES y SAUQUILLO

  • G.R. No. 136337 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. NELSON CABUNTOG

  • G.R. No. 139114 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ROMAN LACAP Y CAILLES

  • G.R. No. 139274 October 23, 2001 - QUEZON PROVINCE v. HON. ABELIO M. MARTE

  • G.R. No. 139329 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. ERLINDO MAKILANG

  • G.R. Nos. 140934-35 October 23, 2001 - PEOPLE OF THE PHILIPPINES v. CONDE RAPISORA y ESTRADA

  • A.M. No. RTJ-01-1634 October 25, 2001 - OFFICE OF THE COURT ADMINISTRATOR v. SILVERIO Q. CASTILLO

  • G.R. No. 102367 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. ABUNDIO ALBARIDO and BENEDICTO IGDOY

  • G.R. No. 126359 October 25, 2001 - PEOPLE OF THE PHIL v. CARLITO OLIVA

  • G.R. No. 127465 October 25, 2001 - SPOUSES NICETAS DELOS SANTOS v. COURT OF APPEALS

  • G.R. No. 133102 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. DINDO AMOGIS y CRINCIA

  • G.R. Nos. 134449-50 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. PEDRO HERNANDEZ y PALMA

  • G.R. No. 135813 October 25, 2001 - FERNANDO SANTOS v. Spouses ARSENIO and NIEVES REYES

  • G.R. No. 135822 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. PIO DACARA y NACIONAL

  • G.R. Nos. 137494-95 October 25, 2001 - THE PEOPLE OF THE PHILIPPINES v. SOTERO REYES alias "TURING"

  • G.R. Nos. 142741-43 October 25, 2001 - PEOPLE OF THE PHILIPPINES v. ROMEO MANAYAN

  • A.M. No. P-01-1474 October 26, 2001 - ANTONIO C. REYES v. JOSEFINA F. DELIM

  • G.R. No. 120548 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. JOSELITO ESCARDA

  • G.R. Nos. 121492 & 124325 October 26, 2001 - BAN HUA UY FLORES v. JOHNNY K.H. UY

  • G.R. No. 132169 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. SANICO NUEVO @ "SANY

  • G.R. No. 133741-42 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. LINO VILLARUEL

  • G.R. No. 134802 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. RENATO Z. DIZON

  • G.R. No. 135920 October 26, 2001 - ENCARNACION ET AL. v. SEVERINA REALTY CORPORATION

  • G.R. No. 140719 October 26, 2001 - NICOLAS UY DE BARON v. COURT OF APPEALS

  • G.R. No. 140912 October 26, 2001 - PEOPLE OF THE PHILIPPINES v. RODRIGO DIAZ Y SEVILLETA

  • G.R. No. 141540 October 26, 2001 - EDUARDO TAN v. FLORITA MUECO and ROLANDO MUECO

  • G.R. No. 143231 October 26, 2001 - ALBERTO LIM v. PEOPLE OF THE PHILIPPINES

  • G.R. No. 144237 October 26, 2001 - WINSTON C. RACOMA v. MA. ANTONIA B. F. BOMA

  • G.R. Nos. 146319 & 146342 October 26, 2001 - BENJAMIN E. CAWALING v. THE COMMISSION ON ELECTIONS

  • G.R. No. 146593 October 26, 2001 - UNITED COCONUT PLANTERS BANK v. ROBERTO V. ONGPIN

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    G.R. No. 144735   October 18, 2001 - YU BUN GUAN v. ELVIRA ONG

     
    PHILIPPINE SUPREME COURT DECISIONS

    THIRD DIVISION

    [G.R. No. 144735. October 18, 2001.]

    YU BUN GUAN, Petitioner, v. ELVIRA ONG, Respondent.

    D E C I S I O N


    PANGANIBAN, J.:


    A simulated deed of sale has no legal effect, and the transfer certificate of title issued in consequence thereof should be cancelled. Pari delicto does not apply to simulated sales.

    Statement of the Case

    Before us is a Petition for Review under Rule 45 of the Rules of Court, assailing the April 25, 2000 Decision 1 and the August 31, 2000 Resolution 2 of the Court of Appeals 3 (CA) in CDA-GR C V No. 61364. The decretal portion of the Decision reads as follows:jgc:chanrobles.com.ph

    "We cannot see any justification for the setting aside of the contested Decision.

    "THE FOREGOING CONSIDERED, the appealed Decision is hereby AFFIRMED." 4

    The assailed Resolution denied petitioner’s "Supplemental Motion with Leave to Submit [Newly] Discovered Evidence."cralaw virtua1aw library

    The CA sustained the Decision of the Regional Trial Court of Makati City (Branch 60), which had disposed as follows: 5

    "23. WHEREFORE, the Court hereby renders judgment as follows:chanrob1es virtual 1aw library

    23.1. The Deed of Sale dated July 24, 1992 (Ex. EE or Exh. 3) is declared VOID.

    23.2. The plaintiff ELVIRA ONG is declared the OWNER of the property covered by Transfer Certificate of Title No. 217614, Registry of Deeds, Makati (Exh. DD).

    23.3. The Register of Deeds, City of Makati is ordered to:chanrob1es virtual 1aw library

    23.2.1. Cancel Transfer Certificate of Title No. 181033 (Exh. HH) and

    23.2.2. Issue in lieu thereof, a transfer certificate of title in the name of ELVIRA A. ONG, of legal age, single, Filipino’;

    23.[4]. The defendant YU BUN GUAN is ordered to pay to the said plaintiff, the following:chanrob1es virtual 1aw library

    23.[4].1. 448,631.00 — As reimbursement of the capital gains tax (Exh. FF);

    23.[4].2. Six (6) percent of P48,631.00 — per annum from November 23, 1993, until the said 448,631.00 is paid - as damages

    23.[4].3. P100,000.00 — as moral damages;

    23.[4].4. P 50,000.00 — as exemplary damages;

    23.[4].5. P100,000.00 — as attorney’s fees.

    23.[5]. The COUNTERCLAIM is DISMISSED.

    23.[6]. Cost is taxed against the defendant.

    "24. In Chambers, City of Makati, June 23,1998."cralaw virtua1aw library

    The Facts


    The antecedents of the case are succinctly summarized by the Court of Appeals in this wise:jgc:chanrobles.com.ph

    " [Herein respondent] said that she and [petitioner] are husband and wife, having been married according to Chinese rites on April 30, 1961. They lived together until she and her children were abandoned by [petitioner] on August 26, 1992, because of the latter’s ‘incurable promiscuity, volcanic temper and other vicious vices’; out of the reunion were born three (3) children, now living with her [respondent].chanrob1es virtua1 1aw 1ibrary

    "She purchased on March 20, 1968, out of her personal funds, a parcel of land, then referred to as the Rizal property, from Aurora Seneris, and supported by Title No. 26795, then subsequently registered on April 17, 1968, in her name.

    "Also during their marriage, they purchased, out of their conjugal funds, a house and lot, in 1983, thereafter, registered in their names, under Title No. 118884.

    "Before their separation in 1992, she ‘reluctantly agreed’ to the [petitioner’s] ‘importunings’ that she execute a Deed of Sale of the J.P. Rizal property in his favor, but on the promise that he would construct a commercial building for the benefit of the children. He suggested that the J.P. Rizal property should be in his name alone so that she would not be involved in any obligation. The consideration for the ‘simulated sale’ was that, after its execution in which he would represent himself as single, a Deed of Absolute Sale would be executed in favor of the three (3) children and that he would pay the Allied Bank, Inc. the loan he obtained.

    "Because of the ‘glib assurances’ of [petitioner], [respondent] executed a Deed of Absolute Sale in 1992, but then he did not pay the consideration of P200,000.00, supposedly the ‘ostensible’ valuable consideration. On the contrary, she paid for the capital gains tax and all the other assessments even amounting to not less than P60,000.00, out of her personal funds.

    "Because of the sale, a new title (TCT No. 181033) was issued in his name, but to ‘insure’ that he would comply with his commitment, she did not deliver the owner’s copy of the title to him.

    "Because of the refusal of [petitioner] to perform his promise, and also because he insisted on delivering to him the owner’s copy of the title [to] the JP Rizal property, in addition to threats and physical violence, she decided executing an Affidavit of Adverse Claim.

    "Also to avoid burdening the JP Rizal property with an additional loan amount, she wrote the Allied Bank, Inc. on August 25, 1992, withdrawing her authority for [petitioner] to apply for additional loans.

    "To save their marriage, she even sought the help of relatives in an earnest effort [at] reconciliation, not to mention a letter to [petitioner] on November 3,1992.chanrob1es virtua1 1aw 1ibrary

    " [Petitioner], on the other hand, filed with the RTC, Makati, in 1993 (Case No. M-2905), a ‘Petition for Replacement’ of an owner’s duplicate title.

    "Attached to the Petition was the Affidavit of Loss dated March 26, 1993, in which he falsely made it appear that the owner’s copy of the title was lost or misplaced, and that was granted by the court in an Order dated September 17, 1993, following which a new owner’s copy of the title was issued to [petitioner].

    "Upon discovery of the ‘fraudulent steps’ taken by the [petitioner], [respondent] immediately executed an Affidavit of Adverse Claim on November 29, 1993.

    "She precisely asked the court that the sale of the JP Rizal property be declared as null and void; for the title to be cancelled; payment of actual, moral and exemplary damages; and attorney’s fees.

    "It was, on the other hand, the version of [petitioner] that sometime in 1968 or before he became a Filipino, ‘through naturalization,’ the JP Rizal property was being offered to him for sale. Because he was not a Filipino, he utilized [respondent] as his ‘dummy’ and agreed to have the sale executed in the name of [respondent], although the consideration was his own and from his personal funds.

    "When he finally acquired a Filipino citizenship in 1972, he purchased another property being referred to as the ‘Juno lot’ out of his own funds. If only to reflect the true ownership of the JP Rizal property, a Deed of Sale was then executed in 1972. Believing in good faith that his owner’s copy of the title was lost and not knowing that the same was surreptitiously ‘concealed’ by [respondent], he filed in 1993 a petition for replacement of the owner’s copy of the title, in court.

    " [Petitioner] added that [respondent] could not have purchased the property because she had no financial capacity to do so; on the other hand, he was financially capable although he was disqualified to acquire the property by reason of his nationality. [Respondent] was in pari delicto being privy to the simulated sale.chanrob1es virtua1 1aw 1ibrary

    "Before the court a quo, the issues were: who purchased the JP Rizal property? [W]as the Deed of Sale void? and damages. 6

    Ruling of the Trial Court

    After examining the evidence adduced by both parties, the RTC found that the JP Rizal property was the paraphernal property of respondent, because (1) the title had been issued in her name; (2) petitioner had categorically admitted that the property was in her name; (3) petitioner was estopped from claiming otherwise, since he had signed the Deed of Absolute Sale that stated that she was the "absolute and registered owner" ; and (4) she had paid the real property taxes thereon. 7

    The trial court further held that the in pari delicto rule found in Articles 1411 and 1412 of the Civil Code was not applicable to the present case, because it would apply only to existing contracts with an illegal cause or object, not to simulated or fictitious contracts or to those that were inexistent due to lack of an essential requisite such as cause or consideration. 8 It likewise voided the Deed of Absolute Sale of the JP Rizal property for having been simulated and executed during the marriage of the parties. 9

    Ruling of the Court of Appeals


    The Court of Appeals upheld the trial court’s findings that the JP Rizal proper y had been acquired by respondent alone, out of her own personal funds. It ruled thus:jgc:chanrobles.com.ph

    ". . . [T]he JP Rizal property was purchased by the [respondent] alone; therefore it is a paraphernal property. As a matter of fact, the title was issued in her name, Exh.’DD’. This was even admitted by [petitioner] in the Answer that the sale was executed in her name alone. He also signed the sale mentioning [respondent] to be an absolute owner; therefore, he should be estopped from claiming otherwise. She alone likewise did the payment of the taxes." 10

    The CA debunked the contention of petitioner that he had purchased the property out of his own funds and merely used respondent as his dummy. 11 It also held that the latter was not in pari delicto with him, because the contract was simulated or fictitious due to the lack of consideration. The contract was deemed void for having been executed during the couple’s marriage. 12 The CA likewise affirmed the award of actual, moral and exemplary damages to Respondent. 13

    Hence, this Petition. 14

    Issues


    In his Memorandum, petitioner raises the following issues for the Court’s consideration:chanrob1es virtual 1aw library

    I


    "Whether or not the Court of Appeals gravely erred in not applying [the] rules on co-ownership under Article 144 of the New Civil Code in determining the proprietary rights of the parties herein even as respondent herself expressly declared that the money with which she allegedly bought the property in question in 1968 came from her funds, salaries and savings at the time she and petitioner already lived as husband and wife.

    II


    "Whether or not the Court of Appeals likewise palpably erred in declaring the sale of the subject property to herein petitioner in 1992 to be fictitious, simulated and inexistent.

    III


    "Whether or not the Court of Appeals further erred in not applying the ‘[in] pari delicto’ rule to the sale of the subject property in favor of the petitioner in 1992 contrary to the express declaration to that effect in the very same case it cited (Rodriguez v. Rodriguez; 20 SCRA 908) in the decision herein sought to be reviewed.

    IV


    "Whether or not the Court of Appeals gravely erred in annul[l]ing the title (TCT No. 181033) to the subject property in the name of herein petitioner in the absence of actual fraud." 15 (emphasis in the original.)

    This Courts Ruling

    The Petition is devoid of merit.

    First Issue:chanrob1es virtual 1aw library

    Nature of the Property

    Petitioner contends that the JP Rizal property should be deemed as co-owned, considering that respondent testified during trial that the money she used in purchasing it had come from her income, salaries and savings, which are conjugal in nature.

    On the other hand, respondent maintains that the finding of the two lower courts that the property was acquired using funds solely owned by her is binding and supported by evidence. She further argues that the two defenses of petitioner are contradictory to each other because, if the property is co-owned, he cannot claim to own it in its entirety.

    We find no reason to disturb the findings of the RTC and the CA that the source of the money used to acquire the property was paraphernal. This issue is factual in nature. It is axiomatic that factual findings of the trial COURT, especially when affirmed by the Court of Appeals, as in this case, are binding and conclusive on the Supreme Court. It is not the function of this Court to reexamine the lower courts’ findings of fact. While there are exceptions to this rule, petitioner has not shown its entitlement to any of them." 16

    The testimony of petitioner as to the source of the money he had supposedly used to purchase the property was at best vague and unclear. At first he maintained that the money came from his own personal funds. Then he said that it came from his mother; and next, from his father. Time and time again, "we [have] held that the unnatural and contradictory testimony of a witness, . . . makes him unreliable . . ." 17 His statement that the JP Rizal property was bought with his own money can hardly be believed, when he himself was unsure as to the source of those funds.

    On the other hand, the capacity of respondent to purchase the subject property cannot be questioned. It was sufficiently established during trial that she had the means to do so. In fact, her testimony that she had purchased several other lots using her personal funds was not disputed.

    Equally without merit is the contention of petitioner that, because he was a Chinese national at the time, respondent was merely used as a dummy in acquiring the property, thus, she could not have legally acquired title thereto. He testified that sometime during the last month of 1968, he had consulted a certain Atty. Flores, who advised him that the property be registered in the name of Respondent. However, TCT No. 217614 had been issued earlier on April 17, 1968. Thus, it appears that the subject property had already been bought and registered in the name of respondent, long before Atty. Flores allegedly advised him to have the property registered in her name.chanrob1es virtua1 1aw 1ibrary

    We therefore agree with the CA’s affirmation of the RTC’s findings that the property had been acquired using respondent’s paraphernal property. The CA ruled thus:jgc:chanrobles.com.ph

    "The fact however, is that Yu never refuted Elvira’s testimony that: (a) the money with which she acquired the JP Rizal property came from: (1) her income as a cashier in the Hong Kiat Hardware; (2) income from her paraphernal property — a lot in Guadalupe; (3) her savings from the money which her parents gave her while she was still a student; and (4) the money which her sister gave her for helping her run the beauty parlor; (b) her parents were well off — they had stores, apartments and beauty parlors from which they derived income; (c) before her marriage she bought lots in different places (p. 8, TSN, Jan. 26, 1998; pp. 22-23, TSN March 10, 1998)" 18

    Second Issue:chanrob1es virtual 1aw library

    Fictitious, Simulated and Inexistent Sale

    Next, petitioner argues that there was a valid sale between the parties, and that the consideration consisted of his promise to construct a commercial building for the benefit of their three children and to pay the loan he had obtained from Allied Bank.

    We disagree. In Rongavilla v. Court of Appeals, 19 the Court declared that a deed of sale, in which the stated consideration had not in fact been paid, is null and void:jgc:chanrobles.com.ph

    "The ‘problem’ before the Court is whether a deed which states a consideration that in fact did not exist, is a contract, without consideration, and therefore void ab initio, or a contract with a false consideration, and therefore, at least under the Old Civil Code, voidable . . . ."cralaw virtua1aw library

    "In our view, therefore, the ruling of this Court in Ocejo, Perez & Co. v. Flores, 40 Phil. 921[,] is squarely applicable herein. In that case we ruled that a contract of purchase and sale is null and null and void and produces no effect whatsoever where the same is without cause or consideration in that the purchase price which appears thereon as paid has in fact never been paid by the purchaser to vendor." 20

    In the present case, it is clear from the factual findings of both lower courts that the Deed of Sale was completely simulated and, hence, void and without effect. No portion of the P200,000 consideration stated in the Deed was ever paid. And from the facts of the case, it is clear that neither party had any intention whatsoever to pay that amounts

    Instead; the Deed of Sale was executed merely to facilitate the transfer of the property to petitioner pursuant to an agreement between the parties to enable him to construct a commercial building and to sell the Juno property to their children. Being merely a subterfuge, that agreement cannot be taken as the consideration for the sale.

    Third Issue:chanrob1es virtual 1aw library

    Inapplicability of the in Pari Delicto Principle

    The principle of in pari delicto provides that when two parties are equally at fault, the law leaves them as they are and denies recovery by either one of them. However, this principle does not apply with respect to inexistent and void contracts. Said this Court in Modina v. Court of Appeals: 21

    "The principle of in pari delicto non oritur actio denies all recovery to the guilty parties inter se. It applies to cases where the nullity arises from the illegality of the consideration or the purpose of the contract. When two persons are equally at fault, the law does not relieve them. The exception to this general rule is when the principle is invoked with respect to inexistent contracts." 22

    Fourth Issue:chanrob1es virtual 1aw library

    Cancellation of TCT

    Finally, based on the foregoing disquisition, it is quite obvious that the Court of Appeals did not err in ordering the cancellation of TCT No. 181033, because the Deed of Absolute Sale transferring ownership to petitioner was completely simulated, void and without effect. In fact, there was no legal basis for the issuance of the certificate itself.chanrob1es virtua1 1aw 1ibrary

    WHEREFORE, the Petition is hereby DENIED and the assailed Decision AFFIRMED. COSTS against petitioner.

    SO ORDERED.

    Melo and Sandoval-Gutierrez, JJ., concur.

    Vitug, J., on official leave.

    Endnotes:



    1. Rollo, pp. 32-45.

    2. Rollo, p. 47.

    3. First Division. Written by J. Bernardo Ll. Salas; concurred in by JJ Salome A. Montoya (presiding justice and Division chair), and Presbitero J. Velasco Jr. (member).

    4. Assailed Decision, p. 14; rollo, p. 45.

    5. RTC Decision, p. 31; penned by Judge Pedro N. Laggui.

    6. CA Decision, pp. 3-8; rollo, pp. 34-39.

    7. RTC Decision, p. 6; rollo, p. 68.

    8. Ibid., p. 10; rollo, p. 72.

    9. Id., pp. 10-1 1; rollo, pp. 72-73.

    10. Assailed CA Decision, p. 8; rollo, p. 39.

    11. Ibid., p. 9; rollo, p. 40.

    12. Id., p. 13; rollo, p. 44.

    13. Id., pp. 13-14; rollo, pp. 44-45.

    14. The case was deemed submitted for decision on July 19, 2001 upon the Court’s receipt of respondent’s Memorandum which was signed by Atty. Prospero A. Crescini. Petitioner’s Memorandum, signed by Attys. Agripino C. Baybay III and Dionisio U. Flores, was received by the Court on June 27, 2001.

    15. Petitioner’s Memorandum, pp. 7-8; rollo, pp. 144-145. Original in capital letters.

    16. Mars Construction Enterprises, Inc. v. Philippine National Construction Corporation, 325 SCRA 624, February 15, 2000, per Panganiban, J.

    17. Madrid, Eligio v. Court of Appeals, 332 SCRA 570, May 31, 2000, per Mendoza, J.

    18. Assailed Decision, p. 11; rollo, p. 42.

    19. 294 SCRA 289, August 17, 1998, per Quisumbing, J.

    20. Rongavilla v. Court of Appeals, 294 SCRA 289, 305, August 17, 1998, per Quisumbing, J.

    21. 317 SCRA 696, 702-703, October 29, 1999, per Purisima, J.

    22. Ibid., pp. 702-703.

    G.R. No. 144735   October 18, 2001 - YU BUN GUAN v. ELVIRA ONG


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