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[CONCHITA LIGUEZ v. CA](https://www.lawyerly.ph/juris/view/c332a?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09)
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[ GR No. L-11240, Dec 18, 1957 ]

CONCHITA LIGUEZ v. CA +

DECISION

102 Phil. 577

[ G. R. No. L-11240, December 18, 1957 ]

CONCHITA LIGUEZ, PETITIONER, VS. THE HONORABLE COURT OF APPEALS, MARIA NGO VDA. DE LOPEZ, ET AL., RESPONDENTS.

D E C I S I O N

REYES, J.B.L., J.:

From a  decision  of  the Court  of  Appeals, affirming that of  the  Court  of  First Instance  of  Davao dismissing  her complaint  for recovery of land, Conchita  Liguez has resorted  to this Court,  praying that the  aforesaid decision be reversed on points of law.  We granted certiorari on October 9,  1956.

The  case began upon complaint filed by petitioner-appellant against the widow and heirs of the late Salvador P.  Lopez to recover  a parcel of 51.84 hectares  of land, situated in  Barrio Bogac-Linot, of the municipality of Mati, Province of Davao.  Plaintiff averred to be its legal owner, pursuant to a deed of donation of said land, executed in her favor by the late owner, Salvador P. Lopez,  on 18 May 1943.   The defense interposed was that the donation was null and void for having an illicit causa or consideration, which was  plaintiff's  entering into marital relations with Salvador P. Lopez, a married  man; and that the property had been adjudicated to the  appellees as  heirs of  Lopez by the Court of First Instance,  since  1949.

The Court of Appeals found that the deed of donation was prepared by the Justice of the Peace of Mati,  Davao, before whom it was signed and ratified on the date  aforesaid.   At the  time, appellant Liguez  was  a minor, only 16  years' of age.  While the  deed recites

"That the  DONOR, Salvador P. Lopez, for and in consideration of his Jove  and  affection  for the  said DONEE,  Conchita Liguez, and also for the good and valuable  services rendered to  the DONOR by the DONEE, docs by these presents, voluntarily give, grant and donate to the said donee, etc."  (Paragraph 2, Exhibit "A") the Court of Appeals found that when the donation was made, Lopez had been living with the parents of appellant for barely a month; that the  donation  was made in view of the desire of Salvador P. Lopez, a man of mature years, to have sexual relations with appellant Conchita Liguez; that Lopez  had confessed to his love for appellant to the instrumental witnesses, with the  remark that her parents would  not  allow Lopez to live  with her  unless he first donated the land  in  question;  that  after the donation, Conchita Liguez and Salvador P. Lopez lived together in the house  that was built upon the latter's orders,  until Lopez  was  killed on  July  1st, 1943,  by some  guerrillas who believed him to be pro-Japanese.

It was also ascertained by the Court of Appeals that the donated land originally belonged to the conjugal  partnership of Salvador P. Lopez and his wife, Maria Ngo;  that the  latter  had  met  and  berated Conchita for  living maritally  with  her husband,  sometime  during  June of 1943; that the widow  and children of Lopez  were in  possession  of the land and made improvements thereon;  that the land was  assessed in the tax rolls first  in the name of Lopez  and  later in that of  his widow;  and that the deed of donation was  never recorded.

Upon these facts, the Court of Appeals held that the deed of donation was  inoperative,  and null  and void  (1) because the husband,  Lopez, had no right to donate  conjugal property to the  plaintiff appellant;  and  (2) because the donation was tainted with illegal  causa or consideration, of which donor and donee were participants.

Appellant vigorously contends that the Court  of First Instance as well  as the Court of Appeals erred in holding the donation void for  having an illicit causa or consideration.  It is argued that under Article 1274 of the Civil Code of 1889  (which was the governing law in 1943, when the donation was executed),  "in contracts of pure beneficence  the  consideration is the  liberality of  the donor", and that liberality per se can never be illegal, since  it is neither against law or morals  or public policy.

The flaw in this argument lies in ignoring that under Article  1274, liberality of the donor is deemed causa  only in  those  contracts that are of  "pure"  beneficence;  that is to say, contracts  designed  solely  and  exclusively to procure the welfare of the beneficiary, without any intent of  producing  any  satisfaction for the donor; contracts, in other words, in which the idea of self-interest is totally absent on the part of the transferor. For this very reason, the same Article 1274 provides that in remuneratory  con- tracts, the consideration is the service  or benefit for which the  remuneration  is  given;  causa is  not  liberality in these cases because  the contract  or  conveyance is  not made out of pure  beneficence, but "solvendi animo."  In consonance with this view, this Supreme Court in Philippine Long Distance  Co. vs. Jeturian* G. B. L-7756,  July 30,  1955, like the  Supreme Court of Spain in its decision of  16 Feb. 1899, has ruled that bonuses granted to employees to excite their zeal and efficiency, with consequent 'benefit for the employer, do not constitute donation having liberality for a consideration.

Here the facts as  found by the Court of Appeals (and which we can not vary) demonstrate that in  making the donation  in question, the late  Salvador  P.  Lopez was not moved exclusively by the  desire to benefit  appellant Conchita Liguez, but also to secure her  cohabiting, with him, so  that  he  could  gratify  his sexual impulses.  This  is clear from the  confession  of  Lopez to the witnesses Rodriguez and Ragay,  that  he was in love with appellant, but her parents would  not agree  unless he  donated the land in question to her.   Actually, therefore, the donation was but one part of  an onerous transaction (at least with appellant's parents)  that  must be  viewed  in  its totality. Thus considered, the conveyance was clearly predicated upon an illicit causa.

Appellant  seeks to differentiate between  the  alleged liberality  of Lopez, as causa for the donation in her  favor, and his  desire  for cohabiting  with appellant, as motives that impelled him to make the donation, and  quotes from Manresa  and the  jurisprudence of this  Court on  the distinction that must be  maintained between causa and motives (De Jesus vs. Urrutia and  Co., 33 Phil. 171).   It is well to note, however,  that Manresa himself  (Vol.  8, pp.   641-642), while  maintaining the  distinction  and upholding the imperativeness of  the motives  of  the parties to determine the validity of the contract, expressly excepts from the rule those  contracts  that  are  conditioned  upon the attainment of the motives of either party.
"* * * distincion  importantisimii,   que impide  amilar el contrato por  la sola iniluencia de los motivos a no ser que se hubiera subordlnado al cumplimiento de estos como condiciones la eficaeia de aquel."
The same view is held by the Supreme Court of Spain, in its decisions of February  4,  1941,  and  December 4, 1946, holding  that  the  motive may be regarded  as causa when it predetermines the purpose of the contract.

In the present case, it is scarsely disputable that Lopez would not  have conveyed  the  property in  question  had he known that appellant would refuse to cohabit with him; so that the cohabitation was an implied condition to the donation, and  being  unlawful,  necessarily  tainted  the donation itself.

The Court  of Appeals  rejected  the  appellant's  claim on the basis of the well-known rule "in pari delicto  non oritur actio" as embodied  in Article 1306 of the  Code of 1889  (reproduced in Article 1412 of the new Civil Code)  :
"ART. 1412. If the act in which the unlawful or forbidden cause consists does  riot constitute a  criminal offense, the  following rules shall be observed:
(1)  When the fault is on the part  of both contracting parties, neither may recover what ho has given by virtue of the contract, or demand the performance of  the other's undertaking;
(2)  When  only one of the contracting parties is at  fault, he cannot recover what  he has  given by reason  of the contract, or ask for  fulfillment of what  has been promised  him.  The other, who is not at fault, may demand the return of what he has given without any obligation to comply with  his promise."
In our opinion, the Court of Appeals  erred in  applying to the present case the pari delicto  rule.  First,  because it can not be said  that both parties here had equal guilt when we consider that as against the deceased Salvador P, Lopez, who  was a man  advanced in years and mature experience, the appellant was a mere minor, 16  years of age, when the donation was made; that  there  is no finding made by the Court of Appeals  that  she was  fully aware of the terms of the bargain entered  into by  and between Lopez and her parents; that her acceptance  in the deed of donation  (which was authorized by Article 626 of the old Civil  Code)  did not necessarily imply knowledge of conditions and terms  not set forth therein;  and  that the substance  of the testimony  of the instrumental  witnesses is that it was the appellant's  parents who insisted on the donation  before allowing her to  live with  Lopez.  These facts  are  more suggestive  of  seduction than of immoral bargaining  on the part of appellant.  It must  not  be forgotten that illegality is not presumed, but must be duly and adequately proved.

In the  second place, the  rule that parties to  an illegal contract,  if equally guilty,  will not be  aided by the law but will both be left where  it  finds them, has been interpreted by  this  Court  as barring the party  from pleading the illegality of the bargain  either as a  cause,  of action or  as  a defense.   Memo auditor proprian  turpitudinem allegans.   Said this Court  in  Perez vs. Herranz,  7  Phil. 695-696:
"It is unnecessary  to  determine whether a vessel  fox  which a certificate and license have  been fraudulently  obtained  incurs forfeiture under these or  any other provisions of this act.  It is enough for this case that the statute  prohibits such an arrangement  as that between  the plaintiff and  defendant so as to  render illegal both the arrangement itself and all contracts between  the parties growing out of it.

It does not, however,  follow  that the plaintiff can  succeed  in this action.   There are two answers to his claim  as urged in  his brief.  It is a familiar principle  that the courts  will not aid either party to enforce  an  illegal contract, but  will  leave  them  both where it finds them; but where  the plaintiff can establish a  cause of action without exposing  its  illegality,  the vice does not  affect his  right to  recover.  The American authorities cited by the plaintiff;. fully  sustain  this doctrine.  The  principle applies  equally  to a defense.  The law in  those Islands  applicable to the case  is  found in article  1305 of the Civil Code,  shutting out  from relief either of the  two  guilty parties to an  illegal or vicious contract.

In the case at bar the plaintiff  could establish prima facie  his sole  ownership by the bill of sale  from Smith, Bell & Co. and  the official  registration. The defendant, on his part, might overthrow this title by proof through a certain subsequent  agreement  between him and the plaintiff, dated March 16, 1902, that they had become owners  in common of the vessel, the agreement  not disclosing  the illegal  motive for placing the formal  title in the plaintiff.  Such an  ownership is  not  in itself  prohibited, for  the United States courts recognize the equitable  ownership  of  a vessel as against the holder  of a  legal  title,  where the  arrangement  is not one in fraud  of the law.  (Weston vs.  Penniman,  Federal Case 17455; Scudder us. Calais Steamboat Company, Federal  Case 12566.)

On this proof, the defendant being a part  owner  of the vessel, would have defeated the action for its  exclusive possession by the plaintiff.  The burden would then be east upon the plaintiff to show the illegality of  the arrangement,  which under the  cases  cited ho would not be allowed to  do."
The rule  was reaffirmed  in  Lima vs.  Lim Chu  Kao, 51 Phil. 477.

The situation confronting us is  exactly analogous.   The appellant  seeks recovery  of  the   disputed  land  on   the strength of a donation regular on  its face.  To defeat its effect, the  appellees must plead and  prove that the same is illegal.   But such plea on the part of the  Lopez heirs is not receivable,  since Lopez  himself, if living, would be barred from setting up  that  plea; and his heirs, as  his privies and  successors   in  interest,  can have  no better rights than Lopez himself.

Appellees, as successors  of  the  late  donor",  being thus precluded  from pleading  the  defense   of  immorality or illegal causa of the donation,  the  total  or partial ineffectiveness of  the same must be decided by  different legal principles.  In this  regard,  the Court of Appeals correctly held that Lopez could not donate the  entirety  of the property in litigation,  to the  prejudice  of  his wife  Maria Ngo, because  said  property  was conjugal in  character,  and the  right  of the husband  to  donate  community property is strictly limited  by law (Civil  Code of 1889, Arts. 1409, 1415, 1413;  Baello vs. Villanueva, 54 Phil. 213).
"ART. 1409. The conjugal partnership shall also be chargeable with anything  which  may have been  given or promised  by the husband alone to the children born of the marriage in order  to obtain employment  for  them or  give  them a profession or by both spouses by common  consent,  should  they not have 'Stipulated  that  such  expenditures should be borne  in  whole or in part by  the separate property of one  of them."

"ART. 1415. The husband  may  dispose of  the  property of  the conjugal partnership  for the  purposes mentioned in Article 1409."

"ART. 1413. In addition  to  his  powers as  manager  the husband may for a valuable consideration alienate and  encumber the property of the  conjugal partnership without the consent of the wife."
The text  of the  articles  makes it plain that the donation made  by the husband in contravention of law  is not void in its entirety,  but  only  in  so far  as it prejudices the interest of  the  wife.   In  this regard,  as  Manresa  points out  (Commentaries,  5th  Ed.,  pp.  650-651,  652-653), the law  makes   no  distinction  between  gratuitous transfers and  conveyances for a consideration.

"Puede la  mujer como  proprietaria hacer  aimlar las donaciones aun durante el matrimonio?  Esta es, en suma, la cuestion, reducida a dctcrminar  si la  distinta naturaleza entre los actos a titulo  oneroso y los actos a  tftulo lucrative, y sus espcciales  y diversas eireunstan- cias,  pueden  motivar  una solucion" diferente  en  cuanto a la epoca en que la muj er he  de  reelamar  y obtener la  nulidad del  acto; cuestian quc  no deja de  ser  interesantisima.
El  Codigo,  a pesar  de  la variacion que ha  introducido en  el prooycoto do  1851, poniendo  corooosegundo parrafo  del  articulo 1.413, como  limitation de las enajenaciones u obligaciones a tftulo oneroso, lo que  era  una  Iimitaci6n general de todos  los actos del marido, muestra,  sin  embargo, que no ha variado  de criterio, y que  para el las  donaciones  deben  en todo equipararse  a cualquier otro acto ilegal o fraudulento de caructer oneroso,  al decir en el art. 1.419: 'Tambicn  se  traera a colacion' en  el inventario  de  la  sociedad el importe de  las dotiacio7ies y enajenaciones  que  deban  considerarse ilcgales o fraudulentas, con sujecion al art.  1.413.'   (Debio tambien citarse  cl artieulo  1.415, que es el  que habla  de donaeiones.)"

"En rcsumen:  el marido solo puede donar los  bienes gananciales dentro de los  limites  marcados en  el art.  1.415.   Sin embargo, solo la mujer  o  sus hercderos pueden  reelamar  contra la  valides de la donacion,  pues solo en su interes  se establece  la  prohibicion.  La mujer o sus herederos, para poder dejar sin efecto  el acto,  han  de sufrir verdadero perjuicio, entendiendose que no  le hay hasta,  tanto que, terminada por cualquier  causa la  sociedad  de gananciales, y hecha  su liquidacion,  no  pueda imputarse lo  donado al habcr por cualquier concepto del marido,  m obtener  en su  consccucncia  ]a mujer  la  dibida  indemniKacion.   La  donacion   reviste por tanto legalmente, una eficaeia condicional, y en armonia con esto caracter, deben fijarse  log efeetos  de la  misma con  relacion a los adquirentes y  a los terceros  poseedores,  leniendo,  en.  su caso, en  cuenta  lo dispueato en la Icy Hipotecaria.  Para prevenir todo perjuicio, puede la mujer,  durante  el matrimonio inmediatamente al acto, haeer constar ante los  Tribunales su existencia y soicitar meclidas  de precaucion, como  ya se ha dicho. Para  evitarlo en lo  sucesivo, y cuando las eircunstancias lo rcquieran, puede instar la declaration do prodigalidad."
To determine the prejudice to the widow,  it must  be shown that the  value of her share in  the property donated can not be paid out of  the husband's share of the community  profits.  The  requisite  data,  however, are not available  to us and necessitate a  remand of the records  to the  court of origin that  settled the  estate of the late Salvador  P.  Lopez.

The situation of the children and forced heirs of Lopez approximates that  of  the  widow.   As  privies of their parent, they  are  barred from invoking  the illegality  of the  donation.  But  their right  to a  legitime out  of his estate is not thereby affected,  since the legitime is granted them by the law itself, over and above the wishes  of the deceased.  Hence, the forced heirs are entitled to have the donation  set aside in so far as inofficious:  i.e., in excess  of the  portion of free  disposal (Civil Code of 1889, Articles 636, 654), computed as provided in Articles 818 and 819, and  bearing in  mind that  "collationable  gifts"  under Article 818 should include gifts made not only in favor  of the forced heirs, but even those made  in favor of strangers, as decided by the Supreme Court of Spain in its decisions of 4 May 1899  and  16 June 1902.  So that in computing the  legitimes, the value of the property donated to herein appellant, Conchita  Liguez,  should be  considered part  of the  donor's estate.   Once again,  only the  court  of  origin has  the requisite  date  to determine whether the donation is  inofficious or  not.

With regard to the improvements in the land in question, the same  should be governed by the rules of accession and possession in good faith, it being undisputed that the  widow and  heirs of Lopez were unaware of the donation in favor of the appellant when the improvements were made.

The appellees, relying on Galion vs. Garayes, 53 Phil. 43, contend that by her failure to appear at the liquidation proceedings of the estate of Salvador P.  Lopez  in July 1943, the appellant has forfeited her  right to  uphold the donation if the prejudice to the widow Maria Ngo resulting from the donation could be made good out of the husband's share in the conjugal  profits.   It  is also argued that appellant was guilty of laches in failing to enforce her rights as. donee until 1951.   This line  of argument overlooks the capital fact that in 1943, appellant was still a minor of sixteen; and she did not reach the age of majority until 1948.   Hence, her  action  in 1951  was only delayed three years.   Nor could  she be properly expected to intervene in the settlement of the estate  of Lopez: first, because she was a  minor  during the  great  part of the  proceedings; second, because she was not given notice thereof; and third, because the donation did  not make her  a creditor of the estate.   As  we  have ruled in  Lopez  vs.  Olbes, 15  Phil. 547-548:
"The prima facie donation  inter vivos and its  acceptance by the donees having been proved by means of a public instrument, and the  donor having been duly notified  of said acceptance,  the  contract is perfect and obligatory  and it is perfectly in.  order to demand its fulfillment, unless an exception is proved whicn is based  on some legal reason opportunely alleged by the  donor or her heirg.

So long  as the  donation  in question  has  not been judicially proved  and  declared  to be  null,  inefficacious,  or  irregular, the land donated is of the absolute ownership of the  donees and consequently,  does not form a part of thre property of  the estate of the deceased  Martina, Lopez; wherefore the action  instituted demanding'  compliance with  the contract,  the  delivery by  the deforciant of the land donated,  or that  it be prohibited to  disturb the right of the donees, should  not be considered as incidental to the probate proceedings aforementioned."
The ease  of  Gallon vs.  Gayares,  supra, is not in point. First, because that case involved a simulated transfer that can have no effect,  while a donation with illegal causa may produce  effects  under  certain  circumstances  where the parties  are  not  of equal guilt; and  again, because the transferee  in  the  Gallon   case  took the property  subject to lis pendens  notice,  that in  this case does not exist.

In  view of the  foregoing, the  decisions appealed from are reversed and  set aside,  and  the appellant Conchita Liguez declared  entitled to so  much of the donated property  as  may be found, upon  proper liquidation,  not  to prejudice the share  of  the widow Maria Ngo in the conjugal  partnership with Salvador P. Lopez or the Iegitimes of the forced heirs of the latter.  The records are ordered remanded  to the court of origin for further  proceedings in accordance with this opinion.   Costs  against appellees. So  ordered.

Paras, C. J., Bengzon, Padilla,  Montemayor, Reyes, A., Bautista Angelo, Labrador, Concepcion, and Endencia, JJ., concur.



* 97 Phil. , 981.

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