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EN BANC

G.R. No. L-13246 March 30, 1960

FEDERICO CALERO, Plaintiff-Appellant, vs. EMILIA CARRION Y SANTA MARINA, ET AL., Defendants-Appellees.

Ramirez and Ortigas for appellant.
Carlos, Laurea and Associates for appellees.

BARRERA, J.: chanrobles virtual law library

From the order of the Court of First Instance of Manila (in Civil Case No. 31409) dismissing his complaint, on the ground of prescription, plaintiff Federico Calero interposed this appeal directly to this Court on questions purely of law.chanroblesvirtualawlibrary chanrobles virtual law library

On December 20, 1956, plaintiff filed with the abovementioned court a complaint which, in part, reads:

x x x           x x x           x x xchanrobles virtual law library

3. Que a principios del a�o de l937, el demandante propuso a don Enrique Carrion, padre de las demandadas, el siguiente negocio: adquirir entre los dos una finca en la Plaza Santa Cruz, por al precio de P250,000.00, de los cuales se pagarian P25,000.00 al contado y el resto a plazos, en diez a�os; en el bien entendido de que para pagar la suma de P25,000.00, don Enrique Carrion aportaria P15,000.00 y el demandante aportaria los P10,000.00 restantes.chanroblesvirtualawlibrary chanrobles virtual law library

4. Que despues de examinar la finca, don Enrique Carrion acepto la proposicion del demandante, y le autoriza cerrar la transaccion, a nombre de sus hijas, es decir, de las dos (2) demandadas principales en este asunto.chanroblesvirtualawlibrary chanrobles virtual law library

5. Que en el entretanto, don Enrique Carrion se ausento de Filipinas, continuando las negociaciones su apoderado y administrador, don Santiago Carrion quien tambien era el apoderado y administrador de las demandadas.chanroblesvirtualawlibrary chanrobles virtual law library

6. Que cuarido se fue a preparar la escritura de compra, don Santiago Carrion, como apoderado de las demandadas, explico al demandante que era muy complicado constituir una communidad de bienes en esa finca, pues habria necesidad de rendir cuentas mensuales, y consultarse en caso de reparaciones, mejoras, etc.chanroblesvirtualawlibrary chanrobles virtual law library

7. Que para evitar estas dificultades, don Santiago Carrion propuso comprar la finca a nombre exclusive de las demandadas, con la obligacion de pagar al demandante el veinte por ciento (20%) de los beneficios, cuando se vendiera la finca.chanroblesvirtualawlibrary chanrobles virtual law library

8. Que el demandante acepto esa proposicion, en el bien enteridido de que la finca seria vendida tan pronto como se encontrara un comprador por una cantidad no menor de P300,000.00.chanroblesvirtualawlibrary chanrobles virtual law library

9. Que debido a la confianza que existia entre las partes, el demandante acepto esa proposicion, como ya se ha dicho, y las partes otorgaron el dia 28 de mayo de 1937, un contrato formal, en el cual se hizo constar el ultimo convenio celebrado por las partes, es decir, quea a la venta de la finca situada en la Plaza Santa Cruz, las demandadas pagarian al demandante,chanrobles virtual law library

una cantidad equivalente un VEINTE POR CIENTO (20%) de cualquier cantidad que se obtenga de la venta de los mencionados edificios y terrenos, despues de descontar el importe total pagado por dichas demandadas.chanroblesvirtualawlibrary chanrobles virtual law library

12. Que la verdadera intension de las partes al otorgar el contrato exhibito "A" era dar al demandante una participacion del veinte por ciento (20%), en todos los beneficios, rentas y utilidades de la finca descrita en ese contrato.chanroblesvirtualawlibrary chanrobles virtual law library

13. Que desde el a�o 1937 el demandante ha hecho varias ofertas a las demandadas CARRION, para vender esa finca al precio ofrecido por los compradores.chanroblesvirtualawlibrary chanrobles virtual law library

14. Que ahora el demandante tiene un comprador de dicha finca por la suma de P1,455,900.00, pero las demandadas CARRION Continuan negandose a vender dicha linea por ese precio, a pesar de la enorme ganancia que representa esa transaccion.chanroblesvirtualawlibrary chanrobles virtual law library

15. Que durante todo el tiempo transcurrido desde el a�o 1937 hasta la fecha, las demandadas CARRION se han lucrado con las rentas de esa finca, sin dar ninguna participacion al demandante, quien hasta la fecha no ha recibido un centime de dicha finca por ningun concepto.chanroblesvirtualawlibrary chanrobles virtual law library

16. Que debido a los actos de las demandadas CARRION, el demandante ha sufrido y sigue sufriendo da�os y perjuicios en una cantidad inestimable con certeza, pero que. por lo menos, debe ser el veinte por ciento (20%) de los beneficios liquidos obtenidos de es finca por las demandadas CARRION.chanroblesvirtualawlibrary chanrobles virtual law library

17. Que el demandante ha requerido a las demandadas CARRION a rendir cuentas de la Administracion de esa finca, a lo cual tambien se han negado.chanroblesvirtualawlibrary chanrobles virtual law library

18. Que si vende esa finca ahora en la cantidad de P1,455,900.00, las demandadas CARRION tendrian un beneficio liquido de P1,205,900.00, o sea, la diferencia entre el precio de venta antes mencionado y los P250,000.00 pagados por dicha finca; y por consiguiente, el demandante tenria derecho a percibir la suma de P241,180.00, o sea, el veinte por ciento (20%) de los beneficios obtenidos, de conformalidad exhibito "A" de esta demanda.chanroblesvirtualawlibrary chanrobles virtual law library

19. Que las demandadas CARRION se han negado a rendir cuentas de los beneficios obtenidos de disha finca y a pagar la participacion del demandante, a pesar de los repetidos requeriment de dicho demandante.

x x x           x x x           x x xchanrobles virtual law library

POR TANTO, el demandante ruega al Hon. Juzgado se sirva dictar sentencia:chanrobles virtual law library

(A) Ordenando a las demandadas CARRION que rindan cuenta completa y detallada de los ingresos y gastas de la finca mencionada en el exhibit "A" desde el dia 28 de mayo de 1937 hasta fecha de la venta, entregando al demandante un veinte por ciento (20%) del producto liquido de dichas cuentas, en pago de los da�os y perjuicios ya sufridos hasta la fecha;chanrobles virtual law library

(B) Ordenando a las demandadas que vendan esa finca descrita en el exhibito "A"', por un precio no menor de P1,455,900.00 en el plazo de tres (3) meses, o de lo contrario paguen al demandante la cantidad de P241,180.00, que representa el veinte por ciento (20%) de los beneficios obtenidos, con sus intereses legales desde esta fecha hasta su completo pago.

On February 2, 1957, defendants Emilia Carrion, Maria Carrion, Jose Falco, and Manuel Perez Guzman (the last two as husbands, respectively, of the first two), filed a motion to dismiss, on the grounds that (1) the complaint states no cause of action, and (2) the plaintiff's cause of action, if any, is barred by the Statute of Limitations (Sec. 1[e], Rule 8, Rules of Court). To this motion, plaintiff filed an opposition on March 16, 1957. On June 1, 1957, the court required plaintiff to amend his complaint, in an order which, in part, reads:

. . . inasmuch as plaintiff concedes in his answer (opposition) to the motion to dismiss that ". . . por tratarse de una obligaicion sin plazo fijo, este debe ser determinado por el Hon. Juzgado", it is plaintiff's duty to amend his complaint to this effect, because there is nothing either in its allegations or in its prayer asking that this Court fix a reasonable period for the sale of the said property with a view to having defendants comply with their obligations under the parties' aforesaid agreement.chanroblesvirtualawlibrary chanrobles virtual law library

. . . defendants' obligation has not even become demandable in view of the suspensive condition found in the parties' agreement.chanroblesvirtualawlibrary chanrobles virtual law library

WHEREFORE, it is ordered that plaintiff amend his complaint within twenty (20) days from notice hereof, failing which the same will be dismissed.

Complying with the above order of the court, plaintiff, on June 15, 1957, filed an amended complaint which is identical to the original complaint, except that it contained the following new Paragraph 15 and a new prayer, to wit:

15. Que el contrato exhibito "A" no establece un plazo determinado para la venta de la finca descrita en el mismo contrato, aunque la intencion de que hubiera un plazo es evidente de la naturaleza, circunstancias y condiciones del mismo contrato; y el Hon. Juzgado debe se�alar dicho plazo, de acuerdo con el articulo 1197 del nuevo Codigo Civil.chanroblesvirtualawlibrary chanrobles virtual law library

POR TANTO, el demandante ruega al Hon. Juzgado se sirva dictar sentencia:chanrobles virtual law library

(A) Se�alando un plazo de tres (3) meses para que las demandadas CARRION vendan la finca decrita en el exhibito "A" al precio mas alto en el mercado, pero no menos de la oferta actual de P1,455,99.00;chanrobles virtual law library

(B) Ordenando a las demandadas CARRION que paguen al demandante el viente por ciento (20%) de los beneficios obtenidos en la venta de dicha finca; . . . .

On July 18,1957, defendant renewed their motion to dismiss, on the grounds that (1) the amended complaint states no cause of action (2) the plaintiff's cause of action, if any, is barred by the Statute of Limitations (Sec. 1[e], Rule 8, Rule of Court), and (3) the plaintiff's original complaint being without cause of action, it cannot be amended and/or cured by said amended complaint which changes plaintiff's theory of the case. In connection with the second ground mentioned, defendants stated:

Plaintiff's right of action accrued in the year 1937 when the first of plaintiffs alleged various offers to defendants to sell the property at price offered by buyers was refused by defendants (Pars. 13 and 14 of Complaint). It is patent, therefore, that is, ten (10) years from the year 1937. Considering that plaintiff's complaint was filed on December 21, 1956, plaintiff's cause of action if any, is obviously unenforceable and barred by the Statue of Limitations.

To this motion, plaintiff filed his opposition on August 2, 1957, to which defendants filed a rejoinder on August 8, 1957. To this rejoinder, plaintiff filed a counter-reply on August 12, 1957.chanroblesvirtualawlibrary chanrobles virtual law library

On August 21, 1957, the court issued an order denying defendant's motion to dismiss. From this order, defendants filed a motion for reconsideration on August 27, 1957, which was duly opposed by plaintiff on September 7, 1957. On September 16, 1957, defendants filed a rejoinder to said opposition.chanroblesvirtualawlibrary chanrobles virtual law library

On October 1, 1957, the court issued an order dismissing plaintiff's complaint on the ground of prescription, as follows:

ORDERchanrobles virtual law library

This Court has before it (1) defendants's MOTION FOR RECONSIDERATION of the order of this Court dated August 21, 1957, (2) CONTESTACION DEL DEMANDANTE A LA MOCION DE RECONSIDERACION, and (3) defendants' REJOINDER TO COTESTACION DEL DEMANDANTE A LA MOCION DE RECONSIDERACION.chanroblesvirtualawlibrary chanrobles virtual law library

It is true that heretofore this Court did not entertain defendants' motion to dismiss plaintiff's original complaint; that on June 1, 1957, plaintiff was given twenty (20) days to amend his complaint; that on June 15, 1957, the amended complaint was filed; that on July 22, 1957, defendants again put in a motion to dismiss the said amended complaint, and that on August 21, 1957, this Court also denied this latter motion to dismiss. Defendants, however, have filed a motion for reconsideration of the order just mentioned of the ground that plaintiff's action under his amended complaint has already prescribed, and this Court has to pass upon the said motion for reconsideration.chanroblesvirtualawlibrary chanrobles virtual law library

Concretely, defendants now contend that plaintiff's action asking this Court to fix the period for the fulfillment of defendants' obligation, which is the subject matter of his amended complaint, has already prescribed under the law and the applicable authorities. While this Court in conscience believes that defendants have such obligation to plaintiff under the express terms and conditions of the parties' agreement Exhibit A, nevertheless it cannot ignore defendants' aforesaid contention that plaintiff's action asking this Court to fix a period for the fulfillment of the said obligation has in fact already prescribed. For one thing, this action which may be brought under Article 1197 of the New Civil Code cannot be said to be imprescriptible. For another, as pointed out by defendants, in the case of Gonzales vs. Jose, 66 Phil., 369, among others, it was pertinently held that "The action to ask the court to fix the period has already prescribed in accordance with section 43(1) of the Code of Civil Procedure. This period of prescription is ten years, which has already elapsed from the execution of the promissory notes until the filing of the action on June 1, 1934." Inasmuch as in the instance case, the parties agreement Exhibit A was executed on May 28, 1937, plaintiff's action to fix the period for the fulfillment of defendants' obligation thereunder should have been filed within ten (10) years from the date just mentioned, following the said decision based on Section 43 (1) of the Code of Civil Procedure, in relation to Article 1116 of the New Civil Code. It is plain to see therefore that plaintiff's present action commenced only on December 21, 1956, is already long barred by prescription.chanroblesvirtualawlibrary chanrobles virtual law library

At page 2 of plaintiff's CONTESTACION DEL DEMANDANTE A LA MOCION DE RECONSIDERACION, the position is taken that En este asunto el plazo de prescripcion comienza cuando nace el derecho de accion. Plaintiff's cause of action in the present case is to have this Court fix the period which the parties had left to conjecture in their agreement Exhibit A, and the said cause of action arose right after the execution of said agreement on May 28, 1937, and lapsed ten (10) years after said date. Plaintiff further state that "ademas, en nuestro asunto actual este Hon. Juzgado ya ha resuelto que el derecho de accion ni siquiera habla comenzado". What this Court really said on this point in its order of June 1, 1957 is the following: "As just intimated, defendants' obligation has not even become demandable in view of the suspensive condition found in the parties' agreement". Reference therefore is clearly made to defendants' obligation to plaintiff under Exhibit A, and not to plaintiff's right to ask for the fixing of the period contemplated by the parties in the said agreement. Plaintiff finally submits that "para que se acepte una mocion de sobreseimiento, el fundaments debe ser indubitable, (Seccion 3, Regla 8 del Reglamento de los Tribunates.)" and that "El hecho de que este Hon. Juzgado haya denegado ya dos mociones de sobresiemientos, es la mejor prueba de que su fundamento es - por lo menos muy dudoso". It may be gathered from the record of this case that this Court has all along been inclined to try it on the merits with a view to getting at the truth and rendering judgment accordingly. However, it now finds itself faced with a defense, namely, prescription, so clear and unanswerable that, to overlook the same, would be to disregard legal as well judical precepts.chanroblesvirtualawlibrary chanrobles virtual law library

Finding defendants' MOTION FOR RECONSIDERATION of the order of this Court dated August 21, 1957 to be meritorious, the said reconsideration is hereby granted, and plaintiff's amended complaint is hereby dismissed, with costs against him.chanroblesvirtualawlibrary chanrobles virtual law library

From the above-quoted order, plaintiff filed a motion for reconsideration on October 3, 1957, which was duly opposed by defendants on October 18, 1957. On October 23, 1957, the court denied said motion. Hence, this appeal.chanroblesvirtualawlibrary chanrobles virtual law library

Plaintiff claims that the lower court erred in dismissing his complaint, contending that (a) the agreement Exhibit A attached to the amended complaint and made an integral part thereof, created "un fideicomiso implicito" or an implied trust, which is not subject to prescription, and (b) that even admitting the obligation is subject to a suspensive undetermined period (not condition), the action to have such period fixed by the court has not yet prescribed. In support of his submission that the agreement created an implied trust, plaintiff-appellant cites the provisions of Articles 1452 and 1453 of the new Civil Code which read as follows:

ART. 1452. If two or more persons agree to purchase property and by common consent the legal title is taken in the name of one of them for the benefit of all, a trust is created by force of law in favor of the others in proportion to the interest of each.chanroblesvirtualawlibrary chanrobles virtual law library

ART. 1453. When property is conveyed to a person in reliance upon his declared intention to hold it for, or transfer it to another or the grantor, there is an implied trust in favor of the person whose benefit is contemplated.

The contention is without merit, Article 1452 abovequoted is inapplicable to this case for the reason that there is absolutely no stipulation in the contract, Exhibit A, that there would be a joint purchase of the property and that the legal title thereto was to be placed in the name of the defendants for the benefit of themselves and herein plaintiff. The recitals in the contracts preceding the paragraph containing the obligation assumed by the defendants, merely refer to the services rendered by the plaintiff as broker who negotiated the sale of the property to the defendants and which the defendants agreed to compensate. Nothing contained therein would indicate that the property was being purchased for the benefit of the plaintiff and the defendants. The obligation assumed by the defendants is clear and unequivocal in that:chanrobles virtual law library

por y en consideracion, a los trabajos, sugestiones, concejos y ayuda hasta ahora prestados por Don Federico Calero en relacion con la compra de los bienes vedidos a las Sras. EMILIA CARRION Y STA. MARINA Y MARIA DE LAS MERCEDES CARRION Y SANTA MARINA los trabajos y concejos que dicho se�orpromete seguir dando a los apoderados de las mismas en relacion con la venta, arriendo, administracion y mejoramiente de los mencionados bienes, por lapresente, libre y volunta riamente, Don Santiago Carrion, en su capacidad de apoderado de las mencionadas Da. EMILIA CARRION Y STA. MARINA y Da. MARIA DE LAS MERCEDES CARRION Y SANTA MARINA y de la manera mas solemne como sea necessario y eficaz en derecho, promete pagar a don Federico Calero sus sucesores y cesionarios, una cantidad equivalente a UN VEINTE POR CIENTO (20%) de cualquer cantidad que se obtenga de la venta de los mencionados edificios y terrenos, despues de degcontar el importe total pagado por Ias Sras. EMILIA CARRION Y STA. MARINA Y MARIA DE LAS MERCEDES CARRION Y SANTA MARINA a la due a de los mismos El Hogar Filipino, entendiendose ademas que este veinte por ciento sera tomado de la ganancia liquida que les represents a las nuevas due�as ta venta de los bienes mencionmados ya sea por mediacion del Sr. Calero o sin ella. (par. 5 of Exh. A). (Emphasis supplied.).chanroblesvirtualawlibrary chanrobles virtual law library

The terms of the contract admit no doubt that the 20% to be paid the plaintiff is of any amount which may be obtained by the sale of the property after deducting the purchase price thereof, which shall be taken from the liquidated benefit obtained by the owners out of the sale of the said property.chanroblesvirtualawlibrary chanrobles virtual law library

Neither is Article 1453 applicable, because there is absolutely nothing in the agreement which even remotely indicates that the property was conveyed to the defendants in reliance upon their declared intention to hold it for, or transfer it to, another or the grantor.chanroblesvirtualawlibrary chanrobles virtual law library

Even the very allegations of plaintiff's complaint clearly reflect the true nature of the agreement. It appears therefrom that although the original parties to purchase the property tribute P10,000.00 and the defendants to put up P15,000.00 on account of the down payment of P25,000.00), the same was abandoned and the parties subsequently agreed that the defendants would buy the property exclusively in their name and for their own account because "era muy complicado constituir una comunidad de bienes en esa finca, pues abria necesidad de rendir cuentas mensuales, y consultares en caso de reparaciones, mejoras, etc." and that the plaintiff "acepto esa proposicion, en el bien entendido de que la finca seria vendida tan pronto como se encontrara un comprador por una cantidad no menor de P300,000.00" "con la obligacion (on the part of the defendants) de pagar al demandante el veinte por ciento (20%) de los beneficios, cuando se vendiera la finca", and that, lastly, "el demandado acepto esa proposicion, como ya se ha dicho, y las partes otorgaron el dia 28 de marzo de 1937, un contrato formal en el cual se hizo constar el ultimo convenio celebrado por las partes, es decir, que a la venta de la finca situada en la Plaza Santa Cruz, las demandadas pagarian al demandante,

una cantidad equivalente a un Veinte Por Ciento (20%) de cualquier cantidad que se obtenga de la venta de los mencionados edificios y terrenos, despues de descontar el importe total pagado por dichas demandadas. (See paragraphs 3, 6, 7, 8 and 9 of the amended complaint.)

Plaintiff-appellant next contends that the lower court also erred in dismissing his complaint on the finding that plaintiff's right of action to have the period fixed for the sale of the property had already prescribed. It is urged that the time for enforcing their right of action to have the period judicially determined did not begin to run until the defendants had been formally demanded and they refused to sell the property. It was only then, it is argued, that the period of prescription started to run. This seems to be illogical. Before the period is fixed, the defendants' obligation to sell is suspended and they, therefore, cannot be compelled to act. For this reason, a complaint to enforce immediately the principal obligation subject to the suspensive period before this is fixed, will not prosper. But this is not to say that the plaintiff has no cause of action. His cause of action under the agreement is to have the court fix the period and after the expiration of that period, to compel the performance of the principal obligation to sell. And this right to have the period judicially fixed is born from the date of the agreement itself which contains the undetermined period. Extrajudicial demand is not essential for the creation of this cause of action to have the period fixed. ¹ It exists by operation of law from the moment such an agreement subject to an undetermined period is entered into, whether the period depends upon the will of the debtor alone, or of the parties themselves, or where from the nature and the circumstances of the obligation it can be inferred that a period was intended.chanroblesvirtualawlibrary chanrobles virtual law library

This is the clear intendment of Article 1197 of the New Civil Code as well as Article 1128 of the Spanish Civil Code and the applicable doctrine laid down by this Court. ² And since the agreement was executed on May 28, 1937 and the complaint to have the period fixed was filed on December 21, 1956 or after almost 20 years, plaintiff's action is clearly and indisputably barred under the Statute of Limitations.chanroblesvirtualawlibrary chanrobles virtual law library

Wherefore, finding no reversible error in the order appealed from, the same is hereby affirmed, with costs against the plaintiff-appellant. So ordered.chanroblesvirtualawlibrary chanrobles virtual law library

Paras, C. J., Bengzon, Montemayor, Bautista Angelo, Labrador, Reyes, J.B.L., and Gutierrez David, JJ., concur.

Endnotes:

¹ Plaintiff, in paragraphs 13 and 14 of his amended complaint alleges that since 1937 he had requested (made offers to) defendants to sell the property, but they refused. Based on plaintiff's theory, prescription started to run from said year, 1937.chanroblesvirtualawlibrary chanrobles virtual law library

² Gonzales vs. De Jose, 66 Phil., 369; Osorio vs. Tan, 98 Phil., 55,51 Off. Gaz., 6221; Seone vs. Franco, 24 Phil., 309.