Tuesday, July 11, 2023

Case Digest: Heirs of Emilio Candelaria vs. Lucia Romero, et. al., G.R. No. L-12149


Heirs of Emilio Candelaria vs. Lucia Romero, et. al., G.R. No. L-12149, September 30, 1960

Subject: Obligations and Contracts


FACTS

Sometime prior to 1917 the Emilio and Lucas Candelaria, brothers, bought each a lot in the Solokan Subdivision on the installment basis. Due to his inability to pay, Lucas sold his interest to his brother Emilio, who continued to pay the installment of Lucas’ lot in the name of Lucas until the entire price was paid, with the understanding that the necessary documents would be made later.

In 1918, a Transfer Certificate of Title for the lot was issued in the name of Lucas. Lucas and his heirs acknowledged the fact that they held the title merely in trust for Emilio.

In 1956, Emilio’s heirs sued for reconveyance of the title to them. Lucas’ heirs refused, firstly on the ground that the trust was an express one and therefore not enforceable because it was oral; and secondly, on the ground of prescription (38 years).

ISSUE

Whether or not Emilio’s heirs are entitled to reconveyance.

RULING

Yes.

Under the law (Art 1453, NCC), 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.

In this case, Emilio’s heirs are entitled to the reconveyance because: (1) SC ruled that the trust that has been created is implied and not express under Article 1453 and therefore, may be proved by parol evidence; and (2) while implied trusts may indeed prescribe. In this case, there was a continuous acknowledgement on the part of Luca and his heirs; hence, there was no prescription.

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