You're currently signed in as:
User
Add TAGS to your cases to easily locate them or to build your SYLLABUS.
Please SIGN IN to use this feature.
https://www.lawyerly.ph/juris/view/c594f?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09
[PASTOR B. CONSTANTINO v. HERMINIA ESPIRITU](https://www.lawyerly.ph/juris/view/c594f?user=fbGU2WFpmaitMVEVGZ2lBVW5xZ2RVdz09)
{case:c594f}
Highlight text as FACTS, ISSUES, RULING, PRINCIPLES to generate case DIGESTS and REVIEWERS.
Please LOGIN use this feature.
Show opinions
Show printable version with highlights

[ GR No. L-23268, Jun 30, 1972 ]

PASTOR B. CONSTANTINO v. HERMINIA ESPIRITU +

DECISION

150-A Phil. 953

[ G.R. No. L-23268, June 30, 1972 ]

PASTOR B. CONSTANTINO AND PASTOR CONSTANTINO, JR., PLAINTIFFS AND MOVANTS AND APPELLEES, VS. HERMINIA ESPIRITU, DEFENDANT, NICANOR B. AVES, PURCHASER AND OPPOSITOR AND APPELLANT.

D E C I S I O N

FERNANDO, J.:

The crucial issue in this appeal from an order of the lower court, one on which no pronouncement has as yet come from this Tribunal, is the binding effect, if any, of a declaration of nullity of the cancellation of a lis pendens on the rights of an innocent purchaser for value, who had relied on the title of the vendor, with such cancellation duly noted.  The answer given by the lower court would consider the reliance as misplaced even as to such vendee, if thereafter such cancellation could be shown to be improper and illegal, resulting in the challenged order requiring that such lis pendens  be inscribed in his title.  Hence this appeal, predicated on the contention that a sale, under such circumstances with the vendor's title clear of such encumbrance, due to such previous cancellation, could not thereafter be saddled with such burden, the purchaser, appellant Nicanor B. Aves, being a beneficiary of the Torrens system of registration.  The teaching to be culled from authoritative precedents sustains such a stand.  Appellant has made out a case for reversal. The appealed order of December 19, 1963 started with a statement of the case:  "The plaintiff Pastor B. Constantino filed the instant Motion to Reinstate Lis Pendens dated July 17, 1963 and the Amending Motion dated July 23, 1963 praying [for the] cancellation of lis pendens on the property described in Transfer Certificate of Title No. 32744 effected by the Register of Deeds of Rizal on September 5, 1960 be declared null and void, and that the said Register of Deeds be forthwith ordered to reinstate not only on Transfer Certificate of Title No. 32744 but also on Transfer Certificate of Title No. 82798 the lis pendens originally inscribed on said Transfer Certificate of Title No. 32744."[1]Then came a statement of the antecedent facts:  "* * * On December 3, 1959 the plaintiff filed the complaint in this case against the defendant Herminia Espiritu, praying among other things:  'a) That pending this suit, a writ of preliminary injunction be issued restraining the defendant, her agents, attorneys, representatives, or any other persons acting in her behalf, to absolutely abstain from further alienating or otherwise disposing of the property described in Paragraph IV hereof and that, after trial, the same be made permanent; 'b) That the defendant be forthwith ordered to execute a deed of absolute conveyance of the said property in favor of Pastor Constantino, Jr., the beneficiary, free from all liens and encumbrances; '* * *.' Upon a motion to dismiss filed by the defendant, the complaint was ordered dismissed on January 8, 1960.  A motion to admit amended complaint was filed by the plaintiff on January 12, 1960, but the same was denied on February 1.  Appeal was taken by the plaintiff from the second order and after said appeal was found to have been filed out of time, a motion for reconsideration was filed, which was however also denied on March 23.  A petition for mandamus was filed before the Supreme Court to compel this Court to approve the record on appeal filed by the plaintiff in this case.  (G.R. No. L-16853).  This petition was granted in a decision promulgated on June 29, 1963."[2]The appealed order then noted the circumstances indicative of bad faith in the cancellation of such lis pendens:  "It is alleged that while the mandamus  proceeding was still pending before the Supreme Court, the defendant on September 5, 1960 fraudulently and in bad faith caused the cancellation of lis pendens on Transfer Certificate of Title No. 32477 by filing with the Office of the Register of Deeds of Rizal a true copy of the Order dated January 8, 1960, which ordered the dismissal of the complaint, 'Knowing fully well that this case is still pending in this Court by virtue of the mandamus proceeding the plaintiffs filed in the Supreme Court [and] the Register of Deeds of Rizal, without first verifying if the said Order of January 8, 1960 had really become final by requiring the defendant to secure a certificate to that effect from the Clerk of this Court, illegally cancelled from the said certificate of title the lis pendens inscribed thereon under Entry No. 88374, L. P. 478, as follows:  * * *,' and thereafter the defendant executed a purported deed of sale of the property in favor of one Nicanor B. Aves on December 31, 1960, as a result of which Transfer Certificate of Title No. 32744 was cancelled and, in lieu thereof, Transfer Certificate of Title No. 82798 was issued in favor of said supposed vendee, * * *.  Subsequently, or on January 26, 1961, said Nicanor Aves mortgaged the property in favor of the Philippine Banking Corporation to guarantee the payment of the sum of P30,000.00.  These transactions took place while this case was still (and still is) pending by virtue of the petition for mandamus, which was granted in a decision promulgated on June 29, 1963."[3]The claim of appellant to a clear title was next taken up.  Thus:  "In answer to the plaintiffs' motion, the vendee, Nicanor B. Aves, admitted being the purchaser of the property but claimed lack of knowledge of the pendency of the litigation between the plaintiffs and the defendant; that he is an innocent purchaser in good faith and for value and that the sale was consummated only after the title which appeared to be clean and free from all liens and encumbrances had been shown to him, and furthermore, after having been assured by the vendor to that effect, that he mortgaged the property as an exercise of ownership and dominion; and, finally, that his title to the property cannot be attacked collaterally in the present motion."[4]After stating that there was bad faith in the cancellation of such lis pendens, the order of the lower court discussed its legal effect:  "The cancellation of the notice of lis pendens  is of doubtful validity, considering that its cancellation was based merely on the Order of January 8, 1960 * * *, which is the Order dismissing the original complaint, while there had been subsequent order after said date.  Moreover, such cancellation was made not on express order of the Court but only by reason of the dismissal of the Complaint contrary to [law].  Such was not done in the cancellation of the lis pendens in question.  The cancellation of the lis pendens was, therefore, improper and illegal."[5] The dispositive portion of such a decision was to declare the cancellation null and void and "to inscribe the same lis pendens on Transfer Certificate of Title No. 82798 [in the name of appellant Nicanor B. Aves]."  

Appellant Aves elevated the matter to this Court.  He had every reason to.  There is, as was pointed out, merit in his appeal.  As an innocent purchaser for value, he was well within the mantle of protection that is a distinctive feature of the Torrens system of registration.

1.  A notice of lis pendens, it is to be noted, flows from the conclusive character of a decree in land registration cases.  That is a basic aspect of the Torrens system as stressed in our decisions, beginning with Jones vs. The Insular Government,[6] promulgated in 1906.  As set forth in the leading case of Legarda vs. Saleeby:[7]  "The real purpose of the system is to quiet title of land; to put a stop forever to any question of the legality of the title, except claims which were noted at the time of registration, in the certificate, or which may arise subsequent thereto.  That being the purpose of the law, it would seem that once a title is registered the owner may rest secure, without the necessity of waiting in the portals of the courts, or sitting in the 'mirador de su casa,' to avoid the possibility of losing his land."[8] For such title "accumulates in one document a precise and correct statement of the exact status of the fee held by its owner.  The certificate, in the absence of fraud, is the evidence of title and shows exactly the real interest of its owner.  The title once registered, with very few exceptions, should not thereafter be impugned, altered, changed, modified, enlarged, or diminished, except in some direct proceeding permitted by law.  Otherwise all security in registered titles would be lost."[9] Such a principle applies not only to the holder of the title but to one who buys it from him for value.  

The notice of lis pendens thus serves a useful purpose.  Nothing could be more appropriate, considering the reliance that any person wishing to deal with a holder of a certificate of title could place thereon.  If there be anything adverse to the fullness of his rights then, including the pendency of a suit, the title itself would show it.  So we have made clear in our decisions from Sikatuna vs. Guevara,[10] to Jose vs. Blue.[11] An excerpt from the opinion of Justice Zaldivar, speaking for the Court, in Jose vs. Blue summarizes the matter neatly:  "The notice of lispendens  is an announcement to the whole world that a particular real property is in litigation, and serves as a warning that one who acquires an interest over said property does so at his own risk, or that he gambles on the result of the litigation over said property.  Since appellant herein bought the land in question with knowledge of the existing encumbrances thereon, she cannot invoke the right of a purchaser in good faith, and she could not have acquired better rights than those of her predecessors in interest."[12]

2.  Appellant Aves would impugn the order for not respecting his rights as an innocent purchaser for value.  There he is on solid ground.  Had lower court yielded deference to controlling decisions of this Court, it would not have decided as it did.  For appellant was an innocent purchaser for value.  At the time of the sale the title exhibited to him by the seller had this entry:  "Entry No. 4756/T-No. 32744 [Cancellation of Lis Pendens]:  In the order of the Court of First Instance of Rizal, in Case No. 5924, the opposition of plaintiff and the rejoinder of defendant, finding the ground for dismissal being meritorious, the complaint in said Case is dismissed, by virtue of which the Lis Pendens inscribed under Entry No. 88374, L. P. 478 is hereby cancelled.  Date of the Instrument Jan. 8, 1960, Date of the inscription Sept. 5, 1960 8:49 a.m. (Sgd) Jose D. Santos, Register of Deeds."[13]It was Justice Moreland who as far back as 1914 stressed:  "The peculiar force of a Torrens title [is brought] into play [if the sale be] to an innocent third person for value."[14]  Even a previous sale, according to the same jurist would have "no effect upon a [later] purchase * * * for value and in good faith * * *."[15]  The same thought finds expression in a still later opinion of his in these words:  "To repeat, the purpose was to give to the person registering, and to his transferee for value, an absolutely clean title, one not subject to hidden defects, to undeveloped or inchoate claims, to any sort of restriction, limitation, or reduction except those [found therein]."[16] There has been no deviation on the part of this Court from such an approach.[17] Only recently in 1967, in Gestosani vs. Insular Development Co., Inc.,[18]  Justice Dizon, after stressing the incontrovertible and indefeasible character of a title stated:  "In the instant case the above doctrine should apply with more reason, considering the fact that the property has passed from the hands of the original registered owner into those of clearly innocent third parties."[19] A restatement of the doctrine in the latest opinion in point, Maquiling vs. Umadhay,[20]  this time from Justice Makalintal, is illuminating.  Thus:  "However, while the Umadhay spouses cannot rely on the title, the same not being in the name of their grantor, respondent Crisanta S. Gumban stands on a different footing altogether.  At the time she purchased the land the title thereto was already in the name of her vendors (T.C.T. - 15522).  She had the right to rely on what appeared on the face of said title.  There is nothing in the record to indicate that she knew of any unregistered claims to or equities in the land pertaining to other persons, such as that of herein petitioner, or of any other circumstances which should put her on guard and cause her to inquire behind the certificate.  According to the Court of Appeals, 'she took all the necessary precautions to ascertain the true ownership of the property, having engaged the services of a lawyer for the specific purpose and, it was only after said counsel had assured her that everything was in order did she make the final arrangements to purchase the property.' The appellate court's conclusion that respondent Crisanta S. Gumban was a purchaser in good faith and for value is correct, and the title she has thereby acquired is good and indefeasible."[21]In the light of the above, the conclusion is fairly obvious that the appealed order cannot stand.  

WHEREFORE , the order of the lower court of December 19, 1963 requiring the inscription of the lis pendens on Transfer Certificate of Title No. 82798 in the name of Nicanor B. Aves is reversed.  With costs against appellees.

Concepcion, C.J., Makalintal, Zaldivar, Castro, Makasiar, and Antonio, JJ., concur. 

Reyes, J.B.L., concurs with J. Barredo.

Teehankee, J., reserves his vote. 

Barredo, J., concurs in a separate opinion. 


[1] Record on Appeal, pp. 22.  

[2] Ibid, pp. 22-24.

[3] Ibid, pp. 24-25.  

[4] Ibid, pp. 25-26. 

The mortgagee, the Philippine Banking Corporation, appellant Aves having thereafter mortgaged it to guarantee the payment of a loan extended to him, was likewise an oppositor and did also appeal from the order.  However, in a motion dated November 7, 1964 it withdrew such appeal and was permitted to do so by a resolution of this Court of November 13, 1964.

[5] Ibid, pp. 27-28. 

[6] 6 Phil. 122. 

[7] 31 Phil. 590 (1915). 

[8] Ibid, p. 593. 

[9] Ibid , p. 594.  The Legarda decision was cited with approval in the following cases:  Acantilado vs. De Santos, 32 Phil. 350 (1915); Altavas vs. Moir, 36 Phil. 198 (1917); De los Reyes vs. Razon, 38 Phil. 480 (1918); Aquino vs. Director of Lands, 39 Phil. 850 (1919); Government of the Phil. Islands vs. Zamora, 41 Phil. 905 (1920); Sotto vs. Sotto, 43 Phil. 688 (1922); Director of Lands vs. Insa, 47 Phil. 158 (1924); Bishop of Cebu vs. Phil. Railway Co., 49 Phil. 723 (1926); Reyes and Nadres vs. Borbon, 50 Phil. 791 (1927); El Hogar Filipino vs. Olviga, 60 Phil. 17 (1934); Addison vs. Payatas Estate, 60 Phil. 673 (1934); Bachrach Motor Co. vs. Kane, 61 Phil. 504 (1935); La Urbana vs. Bernardo, 62 Phil. 790 (1936); Yumul vs. Rivera, 64 Phil. 13 (1937); Seva vs. Nolan, 64 Phil. 13 (1937); Director of Lands vs. Gan Tan, 89 Phil. 184 (1951); Bacolod-Murcia Milling Co. vs. De Villaruz, 90 Phil. 154 (1951); De Jesus vs. Belarmino, 95 Phil. 365 (1954); Manila Railroad Co. vs. Luzon Stevedoring Co., 100 Phil. 135 (1956) and Pichay vs. Celestino, L-18292, May 30, 1967, 20 SCRA 314. 

[10] 43 Phil. 371 (1922). 

[11] L-28646, Nov. 29, 1971, 42 SCRA 351.  Some other cases after Sikatuna and before Blue follow:  Fetalino vs. Sanz, 44 Phil. 691 (1923); Atkins, Kroll and Co. vs. Domingo, 46 Phil. 362 (1924); De Gomez vs. Jugo, 48 Phil. 118 (1925); Pineda vs. Santos, 56 Phil. 583 (1931); Lazaro vs. Mariano, 59 Phil. 627 (1934) and Jamara vs. Duran, 69 Phil. 3 (1939). 

[12] Ibid, pp. 360-361. 

[13] Exhibit A-1. 

[14] Medina vs. Imaz, 27 Phil. 314, 318 (1914). 

[15] Tuason vs. Raymundo, 28 Phil. 635, 638 (1914). 

[16] De Jesus vs. City of Manila, 29 Phil. 73, 78 (1914). 

[17] Cf. De Gomez vs. Jugo, 48 Phil. 118 (1925); Jurado vs. Flores, 79 Phil. 451 (1947); Levin vs. Bass, 91 Phil. 419 (1952); Mirasol vs. Gerechi, 93 Phil. 480 (1953); Avecilla vs. Yatco, 103 Phil. 666 (1958); Aguilar vs. Goagdan, 105 Phil. 661 (1959); Paraiso vs. Camon, 106 Phil. 187 (1959); Tiburcio vs. PHHC, 106 Phil. 477 (1959); Joaquin vs. Madrid, 106 Phil. 1060 (1960); Revilla vs. Galindez, 107 Phil. 480 (1960); Carreon vs. Agcaoili, L-11156, Feb. 23, 1961, 1 SCRA 521; Moldero vs. Yandoc, L-14321, Oct. 20, 1961; Fule vs. De Lagare, L-17951, Feb. 28, 1963, 7 SCRA 351; J.M. Tuason and Co. vs. Vibat, L-18884, May 29, 1963, 8 SCRA 54; and Pichay vs. Celestino, L-18292, May 30, 1967, 20 SCRA 314. 

[18] L-21166, Sept. 15, 1967, 21 SCRA 114. 

[19] Ibid, p. 124.  Cf. Melgar vs. Pagayon, L-22731, Nov. 15, 1967, 21 SCRA 841. 

[20] L-25147, May 29, 1970, 33 SCRA 99. 

[21] Ibid , pp. 103-104.  Cf. Godinez vs. Pelaez, L-18491, Feb. 27, 1971, 37 SCRA 625. 

tags