[ 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.:
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.