estate of cabacungan vs. laigo, august 15, 2011 - implied trust

7/21/2019 Estate of Cabacungan vs. Laigo, August 15, 2011 - Implied Trust

1/22

THIRD DIVISION

ESTATE OF MARGARITA D.CABACUNGAN, represented by LUZ LAIGOALI, Petitioner,

- versus -

MARILOU LAIGO, !EDRO RO" LAIGO,STELLA BALAGOT #nd S!OUSES MARIO B.CAM!OS AND $ULIA S. CAM!OS,

Respondents.

G.R. N%.&'()'*!resent:CARPIO,*J.,

VELASCO,JR.,J.,Chairperson,BRION,**

PERALTA, andSERENO,***JJ.

!r%+-#ted:

August !,"#

$ % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % $

D E C I S I O N

!ERALTA, J./

T&is Petition 'or Re(ie) under Rue +! o' t&e Rues o' Court assais

t&e Oto-er , "##/ 0eision12o' t&e Court o' Appeas in CA%3.R. CV No.

4"4. T&e assaied deision a''ir5ed t&e Ju6 ", "##

7udg5ent1"2rendered -6 t&e Regiona Tria Court o' La 8nion, Bran& in

Ci(i Case No. #%B3 9 a o5paint 'or annu5ent o' sae o' rea

propert6, reo(er6 o' o)ners&ip and possession, aneation o' ta$

dearations and da5ages 'ied -6 argarita Ca-aungan,12represented -6

&er daug&ter, Lu; Laigo%Ai against ariou Laigo and Pedro Ro6 Laigo,

respondents &erein, and against Estea Baagot, 1+2and t&e spouses ario

and Juia Ca5pos.
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T&e 'ats 'oo).

argarita Ca-aungan 5 and ,+!+ s> 5 ots in Paringao, respeti(e6, to

ariou 'or P##,###.## and to Pedro 'or P+#,###.##.1#2 Aeged6, t&ese

saes )ere not no)n to argarita and &er ot&er &idren.12

It )as on6 in August ??!, at Ro-ertos )ae, t&at argarita a5e to

no) o' t&e saes as tod -6 Pedro &i5se'. 1"2 In e-ruar6 ??/, argarita,

represented -6 &er daug&ter, Lu;, instituted t&e instant o5paint 'or t&e

annu5ent o' said saes and 'or t&e reo(er6 o' o)ners&ip and possession

o' t&e su-7et properties as )e as 'or t&e aneation o' Riardos ta$

dearations. argarita ad5itted &a(ing ao55odated Ro-ertos re>uest

'or t&e trans'er o' t&e properties to &is na5e, -ut pointed out t&at t&e

arrange5ent )as on6 'or t&e spei'i purpose o' supporting &is 8.S. (isa

appiation. S&e e5p&asi;ed t&at s&e ne(er intended to di(est &erse' o'

o)ners&ip o(er t&e su-7et ands and, &ene, Ro-erto &ad no rig&t to se

t&e5 to respondents and t&e Spouses Ca5pos. S&e ie)ise aeged t&at

t&e saes, )&i& )ere 'ititious and si5uated onsidering t&e gross

inade>ua6 o' t&e stipuated prie, )ere 'rauduent6 entered into -6

Ro-erto. S&e i5puted -ad 'ait& to Pedro, ariou and t&e Spouses Ca5pos
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as -u6ers o' t&e ots, as t&e6 supposed6 ne) a aong t&at Ro-erto )as

not t&e rig&t'u o)ner o' t&e properties.12Dene, s&e prinipa6 pra6ed

t&at t&e saes -e annued t&at Ro-ertos ta$ dearations -e aneed and

t&at t&e su-7et properties -e reon(e6ed to &er.1+2

T&e Spouses Ca5pos ad(aned t&at t&e6 )ere innoent pur&asers

'or (aue and in good 'ait&, and &ad 5ere6 reied on Ro-ertos

representation t&at &e &ad t&e rig&t to se t&e propert6 and t&at, &ene,

t&e6 )ere not -ound -6 )&ate(er agree5ent entered -6 argarita )it& &er

son. T&e6 posited t&at t&e aeged gross inade>ua6 o' t&e prie )oud not

in(aidate t&e sae a-sent a (itiation o' onsent or proo' o' an6 ot&er

agree5ent. urt&er, t&e6 noted t&at argaritas ai5 )as aread6 -arred

-6 presription and a&es o)ing to &er ong ination in reo(ering t&esu-7et properties. ina6, t&e6 -eie(ed t&at inas5u& as Ro-erto &ad

aread6 passed a)a6, argarita 5ust &a(e, instead, direted &er ai5

against &is estate.1!2

In 5u& t&e sa5e )a6, ariou and Pedro,1/2)&o ie)ise pro'essed

t&e5se(es to -e -u6ers in good 'ait& and 'or (aue, -eie(ed t&at

argaritas ause o' ation &ad aread6 -een -arred -6 a&es, and t&at

e(en assu5ing t&e ontrar6, t&e ause o' ation )as ne(ert&eess -arred -6

presription as t&e sa5e &ad arued )a6 -a in ?/@ upon t&e e$eutiono' t&e a''ida(it o' trans'er -6 (irtue o' )&i& an i5pied trust &ad -een

reated. In t&is regard, t&e6 e5p&asi;ed t&at t&e a) ao)ed on6 a period

o' ten


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On Ju6 ", "##, t&e tria ourt rendered 7udg5ent dis5issing t&e

o5paint as 'oo)s:

FDEREORE, in (ie) o' t&e 'oregoing onsiderations, t&e

o5paint is 0ISISSE0.

1"2

T&e tria ourt rued t&at t&e ?/@ A''ida(it o' Trans'er operated as a

si5pe trans'er o' t&e su-7et properties 'ro5 argarita to Ro-erto. It

'ound no e$press trust reated -et)een Ro-erto and argarita -6 (irtue

5ere6 o' t&e said dou5ent as t&ere )as no e(idene o' anot&er dou5ent

s&o)ing Ro-ertos undertaing to return t&e su-7et

properties. Interesting6, it onuded t&at, instead, an Gi5pied or

onstruti(e trustH )as reated -et)een t&e parties, as i' a''ir5ing t&at

t&ere )as indeed an agree5ent 9 a-eit un)ritten 9 to &a(e t&e propertiesreturned to argarita in due ti5e. 1""2

oreo(er, t&e tria ourt sur5ised &o) argarita oud &a(e 'aied

to reo(er t&e su-7et properties 'ro5 Ro-erto at an6 ti5e -et)een ?/@,

'oo)ing t&e e$eution o' t&e A''ida(it o' Trans'er, and Ro-ertos return

'ro5 t&e 8nited States s&ort6 t&erea'ter. inding argarita guit6 o' a&es

-6 su& ination, t&e tria ourt -arred reo(er6 'ro5 respondents )&o

)ere 'ound to &a(e a>uired t&e properties supposed6 in good 'ait& and 'or(aue.1"2 It aso pointed out t&at reo(er6 oud no onger -e pursued in

t&is ase -eause argarita &ad ie)ise e$&austed t&e ten%6ear

presripti(e period 'or reon(e6ane -ased on an i5pied trust )&i& &ad

o55ened to run in ?/@ upon t&e e$eution o' t&e A''ida(it o' Trans'er.1"+2 ina6, it e5p&asi;ed t&at 5ere inade>ua6 o' t&e prie as aeged

)oud not -e a su''iient ground to annu t&e saes in 'a(or o' Pedro and

ariou a-sent an6 de'et in onsent.1"!2

Aggrie(ed, petitioner appeaed to t&e Court o' Appeas )&i&,on Oto-er , "##/, a''ir5ed t&e tria ourts disposition. T&e appeate

ourt dis5issed petitioners ai5 t&at Ro-erto )as 5ere6 a trustee o' t&e

su-7et properties as t&ere )as no e(idene on reord supporti(e o' t&e

aegation t&at Ro-erto 5ere6 -orro)ed t&e properties 'ro5 argarita

upon &is pro5ise to return t&e sa5e on &is arri(a 'ro5 t&e 8nited
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States. urt&er, it &6pot&esi;ed t&at granting t&e e$istene o' an i5pied

trust, sti argaritas ation t&ereunder &ad aread6 -een iru5sri-ed -6

a&es.1"/2

Curious6, )&ie t&e appeate ourt &ad 'ound no i5pied trustreation in t&e transation -et)een argarita and Ro-erto, ne(ert&eess, it

&ed t&at t&e ten%6ear presripti(e period under Artie ++ o' t&e Ci(i

Code, in reation to an i5pied trust reated under Artie +!/, &ad aread6

-een e$&austed -6 argarita -eause &er ause o' ation &ad arued )a6

-a in ?/@ and t&at )&ie a&es and presription as de'enses oud &a(e

a(aied against Ro-erto, t&e sa5e )oud -e una(aiing against Pedro and

ariou -eause t&e atter )ere supposed6 -u6ers in good 'ait& and 'or

(aue.

1"42

It disposed o' t&e appea, t&us:FDEREORE, t&eAppeal is &ere-6 0ENIE0. T&e

assaiedDecision dated " Ju6 "## o' t&e Regiona Tria Court o' Bauang,La 8nion, Bran& is AIRE0.

SO OR0ERE0.1"@2

Dene, t&e instant reourse i5puting error to t&e Court o' Appeas in

&oding:


6/22

oud not &a(e 'aied to pro(ide 'or &er ot&er &idren nor 'or 5eans -6

)&i& to support &erse'. It reiterates t&at t&e trans'er to Ro-erto )as on6

an ao55odation so t&at &e oud su-5it proo' to support &is 8.S. (isa

appiation.

On t&e issue o' presription, petitioner ad(anes t&at it runs 'ro5 t&e

ti5e Ro-erto, as trustee, &as repudiated t&e trust -6 seing t&e properties

to respondents in August !, ??" t&at &ene, t&e 'iing o' t&e instant

o5paint in ??/ )as )e )it&in t&e presripti(e period. ina6,

petitioner states t&at )&et&er a -u6er is in good or -ad 'ait& is a 5atter t&at

attains ree(ane in saes o' registered and, as oroar6 to t&e rue t&at a

pur&aser o' unregistered and unin'or5ed o' t&e seers de'eti(e tite

a>uires no -etter rig&t t&an su& seer.

Respondents stand -6 t&e ruing o' t&e Court o' Appeas. In t&eir

Co55ent, t&e6 t&eori;e t&at i' indeed argarita and Ro-erto &ad agreed to

&a(e t&e su-7et properties returned 'oo)ing t&e e$eution o' t&e A''ida(it

o' Trans'er, t&en t&ere s&oud &a(e -een a )ritten agree5ent e(ining su&

intention o' t&e parties. T&e6 note t&at petitioners reiane on t&e A''ida(it

o' Trans'er as )e as on t&e aeged un)ritten agree5ent 'or t&e return o'

t&e properties 5ust 'ai, si5p6 -eause t&e6 are not e(en parties to it. Be

t&at as it 5a6, t&e said dou5ent &ad e''eti(e6 trans'erred t&e propertiesto Ro-erto )&o, in turn, &ad a>uired t&e 'u apait6 to se t&e5,

espeia6 sine t&ese properties oud )e -e onsidered as Ro-ertos

in&eritane 'ro5 argarita )&o, on t&e ontrar6, did &a(e ot&er e$isting

properties in &er na5e. oreo(er, t&e6 -eie(e t&at t&e i-era appiation

o' t&e rue on a&es -et)een 'a5i6 5e5-ers does not app6 in t&e instant

ase -eause t&ere is no 'iduiar6 reations&ip and pri(it6 -et)een t&e5

and argarita.

T&ere is 5erit in t&e petition.

To -egin )it&, t&e rue is t&at t&e atitude o' 7udiia re(ie) under

Rue +! genera6 e$udes 'atua and e(identiar6 ree(auation, and t&e

Court ordinari6 a-ides -6 t&e uni'or5 onusions o' t&e tria ourt and t&e

appeate ourt. et, in t&e ase at -ar, )&ie t&e ourts -eo) &a(e -ot&


7/22

arri(ed at t&e dis5issa o' petitioners o5paint, t&ere sti re5ains

unsetted t&e ostensi-e inongruene in t&eir respeti(e 'atua 'indings. It

t&us -e&oo(es us to -e t&oroug& -ot& in re(ie)ing t&e reords and in

appraising t&e e(idene, espeia6 sine an opposite onusion is

)arranted and, as )i -e s&o)n, 7usti'ied.

A trust is t&e ega reations&ip -et)een one person &a(ing an

e>uita-e o)ners&ip o' propert6 and anot&er person o)ning t&e ega tite

to su& propert6, t&e e>uita-e o)ners&ip o' t&e 'or5er entiting &i5 to t&e

per'or5ane o' ertain duties and t&e e$erise o' ertain po)ers -6 t&e

atter.1#2 Trusts are eit&er e$press or i5pied.12 E$press or diret trusts

are reated -6 t&e diret and positi(e ats o' t&e parties, -6 so5e )riting or

deed, or )i, or -6 ora dearation in )ords e(ining an intention to reatea trust.1"2I5pied trusts 9 aso aed Gtrusts -6 operation o' a),H Gindiret

trustsH and Gin(ountar6 trustsH 9 arise -6 ega i5piation -ased on t&e

presu5ed intention o' t&e parties or on e>uita-e prinipes independent o'

t&e partiuar intention o' t&e parties.12T&e6 are t&ose )&i&, )it&out

-eing e$pressed, are dedui-e 'ro5 t&e nature o' t&e transation as

5atters o' intent or, independent6 o' t&e partiuar intention o' t&e parties,

as -eing in'erred 'ro5 t&e transation -6 operation o' a) -asia6 -6

reason o' e>uit6.1+2

I5pied trusts are 'urt&er assi'ied into onstruti(e trusts and

resuting trusts. Construti(e trusts, on t&e one &and, o5e a-out in t&e

5ain -6 operation o' a) and not -6 agree5ent or intention. T&e6 arise not

-6 an6 )ord or p&rase, eit&er e$press6 or i5pied6, e(ining a diret

intention to reate a trust, -ut one )&i& arises in order to satis'6 t&e

de5ands o' 7ustie.1!2 Aso no)n as trusts ex maleficio, trusts ex

delicto and trusts de son tort, t&e6 are onstrued against one )&o -6 atua

or onstruti(e 'raud, duress, a-use o' on'idene, o55ission o' a )rongor an6 'or5 o' unonsiona-e ondut, arti'ie, onea5ent o'

>uestiona-e 5eans, or )&o in an6 )a6 against e>uit6 and good onsiene

&as o-tained or &ods t&e ega rig&t to propert6 )&i& &e oug&t not, in

e>uit6 and good onsiene, &od and en7o6.1/2T&e6 are apt6 &arateri;ed

as G'raud%reti'6ing trust,H142i5posed -6 e>uit6 to satis'6 t&e de5ands o'

7ustie1@2and to de'eat or pre(ent t&e )rong'u at o' one o' t&e parties.
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8/22

1?2 Construti(e trusts are iustrated in Arties +!#, +!+, +!! and +!/.1+#2

On t&e ot&er &and, resuting trusts arise 'ro5 t&e nature or

iru5stanes o' t&e onsideration in(o(ed in a transation )&ere-6 oneperson -eo5es in(ested )it& ega tite -ut is o-igated in e>uit6 to &od

&is tite 'or t&e -ene'it o' anot&er. T&is is -ased on t&e e>uita-e dotrine

t&at (aua-e onsideration and not ega tite is deter5inati(e o' e>uita-e

tite or interest and is a)a6s presu5ed to &a(e -een onte5pated -6 t&e

parties.1+2 Su& intent is presu5ed as it is not e$pressed in t&e instru5ent

or deed o' on(e6ane and is to -e 'ound in t&e nature o' t&eir transation.1+"2I5pied trusts o' t&is nature are &ene desri-a-e as Gintention%

en'oring trusts.H

1+2

Spei'i e$a5pes o' resuting trusts 5a6 -e 'ound int&e Ci(i Code, partiuar6 Arties ++@, ++?, +!, +!" and +!.1++2

Arties ++@ to +!/ o' t&e Ci(i Code enu5erate ases o' i5pied

trust, -ut t&e ist aording to Artie ++4 is not e$usi(e o' ot&ers )&i&

5a6 -e esta-is&ed -6 t&e genera a) on trusts so ong as t&e i5itations

aid do)n in Artie ++" are o-ser(ed,1+!2t&at is, t&at t&e6 -e not in on'it

)it& t&e Ne) Ci(i Code, t&e Code o' Co55ere, t&e Rues o' Court and

speia a)s.1+/2

F&ie resuting trusts genera6 arise on 'aiure o' an e$press trust or

o' t&e purpose t&ereo', or on a on(e6ane to one person upon a

onsideration 'ro5 anot&er


9/22

'a(or o' t&e grantor or trans'eror,1!#2)&ere t&e -ene'iia interest in

propert6 )as not intended to (est in t&e grantee.1!2

Intention 9 at&oug& on6 presu5ed, i5pied or supposed -6 a)

'ro5 t&e nature o' t&e transation or 'ro5 t&e 'ats and iru5stanesao5pan6ing t&e transation, partiuar6 t&e soure o' t&e onsideration

9 is a)a6s an ee5ent o' a resuting trust1!"2and 5a6 -e in'erred 'ro5 t&e

ats or ondut o' t&e parties rat&er t&an 'ro5 diret e$pression o' ondut.1!2Certain6, intent as an indispensa-e ee5ent, is a 5atter t&at

neessari6 ies in t&e e(idene, t&at is, -6 e(idene, e(en iru5stantia, o'

state5ents 5ade -6 t&e parties at or -e'ore t&e ti5e tite passes.1!+2 Beause an i5pied trust is neit&er dependent upon an e$press

agree5ent nor re>uired to -e e(idened -6 )riting,

1!!2

Artie +!4

1!/2

o' ourCi(i Code aut&ori;es t&e ad5ission o' paroe e(idene to pro(e t&eir

e$istene. Paroe e(idene t&at is re>uired to esta-is& t&e e$istene o' an

i5pied trust neessari6 &as to -e trust)ort&6 and it annot rest on oose,

e>ui(oa or inde'inite dearations.1!42

T&us, ontrar6 to t&e Court o' Appeas 'inding t&at t&ere )as no

e(idene on reord s&o)ing t&at an i5pied trust reation arose -et)een

argarita and Ro-erto, )e 'ind t&at petitioner -e'ore t&e tria ourt, &ad

atua6 addued e(idene to pro(e t&e intention o' argarita to trans'er toRo-erto on6 t&e ega tite to t&e properties in >uestion, )it& attendant

e$petation t&at Ro-erto )oud return t&e sa5e to &er on ao5pis&5ent

o' t&at spei'i purpose 'or )&i& t&e transation )as entered into. T&e

e(idene o' ourse is not dou5entar6, -ut rat&er testi5onia.

Fe rea t&at t&e o5paint -e'ore t&e tria ourt aeged t&at t&e

?/@ A''ida(it o' Trans'er )as e$euted 5ere6 to ao55odate Ro-ertos

re>uest to &a(e t&e properties in &is na5e and t&ere-6 produe proo' o'o)ners&ip o' ertain rea properties in t&e P&iippines to support

&is 8.S. (isa appiation. T&e agree5ent, t&e o5paint 'urt&er stated, )as

'or argarita to trans'er t&e ta$ dearations o' t&e su-7et properties to

Ro-erto 'or t&e said purpose and )it&out t&e intention to di(est &er o' t&e

rig&ts o' o)ners&ip and do5inion.1!@2 argarita, &o)e(er, died -e'ore tria

on t&e 5erits ensued1!?26et t&e aegation )as su-stantiated -6 t&e open%
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11/22

surrounding its e$eution 9 t&e iru5stanes 'ro5 )&i& oud -e deri(ed

t&e un)ritten understanding -et)een Ro-erto and argarita t&at -6 t&eir

at, no a-soute trans'er o' o)ners&ip )oud -e e''eted. Besides, it )oud

-e &ig&6 unie6 'or argarita to institute t&e instant o5paint i' it )ere

indeed &er intention to (est in Ro-erto, -6 (irtue o' t&e A''ida(it o'Trans'er, a-soute o)ners&ip o(er t&e o(ered properties.

It is dedui-e 'ro5 t&e 'oregoing t&at t&e insription o' Ro-ertos

na5e in t&e A''ida(it o' Trans'er as argaritas trans'eree is not 'or t&e

purpose o' trans'erring o)ners&ip to &i5 -ut on6 to ena-e &i5 to &od t&e

propert6 in trust 'or argarita. Indeed, in t&e 'ae o' t&e redi-e and

straig&t'or)ard testi5on6 o' t&e t)o )itnesses, Lu; and Diaria, t&e

pro-ati(e (aue o' t&e o)ners&ip reord 'or5s in t&e na5es o' respondents,toget&er )it& t&e testi5on6 o' t&eir )itness 'ro5 t&e 5uniipa assessors

o''ie )&o aut&entiated said 'or5s, are utter6 5ini5a to s&o) Ro-ertos

o)ners&ip. It su''ies to sa6 t&at respondents did not -ot&er to o''er

e(idene t&at )oud diret6 re'ute t&e state5ents 5ade -6 Lu; and Diaria

in open ourt on t&e iru5stanes under6ing t&e ?/@ A''ida(it o'

Trans'er.

As a trustee o' a resuting trust, t&ere'ore, Ro-erto, ie t&e trustee o'

an e$press passi(e trust, is 5ere6 a depositar6 o' ega tite &a(ing noduties as to t&e 5anage5ent, ontro or disposition o' t&e propert6 e$ept

to 5ae a on(e6ane )&en aed upon -6 t&e cestui que trust.1/2 Dene,

t&e saes &e entered into )it& respondents are a )rong'u on(ersion o' t&e

trust propert6 and a -rea& o' t&e trust. T&e >uestion is: a6 respondents

no) -e o5peed to reon(e6 t&e su-7et properties to petitionerK Fe rue

in t&e a''ir5ati(e.

Respondents posit t&at petitioners ai5 5a6 ne(er -e en'oredagainst t&e5 as t&e6 &ad pur&ased t&e properties 'ro5 Ro-erto 'or (aue

and in good 'ait&. T&e6 aso ai5 t&at, at an6 rate, petitioners ause o'

ation &as arued )a6 -a in ?/@ upon t&e e$eution o' t&e A''ida(it o'

Trans'er and, &ene, )it& t&e "@ ong 6ears t&at sine passed, petitioners

ai5 &ad ong -eo5e stae not on6 on aount o' a&es, -ut aso under
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12/22

t&e rues on e$tinti(e presription go(erning a resuting trust. Fe do not

agree.

First, 'unda5enta is t&e rue in and registration a) t&at t&e issue o'

)&et&er t&e -u6er o' reat6 is in good or -ad 'ait& is ree(ant on6 )&ere t&esu-7et o' t&e sae is registered and and t&e pur&ase )as 5ade 'ro5 t&e

registered o)ner )&ose tite to t&e and is ean, in )&i& ase t&e

pur&aser )&o reies on t&e ean tite o' t&e registered o)ner is proteted i'

&e is a pur&aser in good 'ait& and 'or (aue. 1/+2 Sine t&e properties in

>uestion are unregistered ands, respondents pur&ased t&e sa5e at t&eir

o)n peri. T&eir ai5 o' &a(ing -oug&t t&e properties in good

'ait&, i.e.,)it&out notie t&at t&ere is so5e ot&er person )it& a rig&t to or

interest t&erein, )oud not protet t&e5 s&oud it turn out, as it in 'at didin t&is ase, t&at t&eir seer, Ro-erto, &ad no rig&t to se t&e5.

Second, t&e in(oation o' t&e rues on i5itation o' ations reati(e to

a resuting trust is not on point -eause t&e resuting trust reation -et)een

argarita and Ro-erto &ad -een e$tinguis&ed -6 t&e atters deat&. A trust,

it is said, ter5inates upon t&e deat& o' t&e trustee, partiuar6 )&ere t&e

trust is persona to &i5.1/!2 Besides, presription and a&es, in respet o'

t&is resuting trust reation, &ard6 an i5pair petitioners ause o'

ation. On t&e one &and, in aordane )it& Artie ++ 1//2o' t&e Ci(iCode, an ation 'or reon(e6ane to en'ore an i5pied trust in ones 'a(or

presri-es in ten ui(oa ats o' repudiation a5ounting to an ouster o'

t&e cestui que trust)&i& are 5ade no)n to t&e atter .1/@2 In t&is ase, it

)as t&e ??" sae o' t&e properties to respondents t&at o5prised t&e at o'

repudiation )&i&, &o)e(er, )as 5ade no)n to argarita on6 in ??!

-ut ne(ert&eess i5peed &er to institute t&e ation in ??/ 9 sti )e)it&in t&e presripti(e period. Dard6 an -e onsidered as at o'

repudiation Ro-ertos open ourt dearation )&i& &e 5ade in t&e ?4?

adoption proeedings in(o(ing respondents to t&e e''et t&at &e o)ned t&e

su-7et properties,1/?2nor e(en t&e 'at t&at &e in ?44 &ad entered into a

ease ontrat on one o' t&e disputed properties )&i& ontrat &ad -een
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13/22

su-7et o' a ??/ deision o' t&e Court o' Appeas.14#2 T&ese do not su''ie to

onstitute une>ui(oa ats in repudiation o' t&e trust.

On t&e ot&er &and, a&es, -eing rooted in e>uit6, is not a)a6s to -e

appied strit6 in a )a6 t&at )oud o-iterate an ot&er)ise (aid ai5espeia6 -et)een -ood reati(es. T&e e$istene o' a on'identia

reations&ip -ased upon onsanguinit6 is an i5portant iru5stane 'or

onsideration &ene, t&e dotrine is not to -e appied 5e&ania6 as

-et)een near reati(es.142Adaza v. Court of Appeals14"2&ed t&at t&e

reations&ip -et)een t&e parties t&erein, )&o )ere si-ings, )as su''iient

to e$pain and e$use )&at )oud ot&er)ise &a(e -een a ong dea6 in

en'oring t&e ai5 and t&e dea6 in su& situation s&oud not -e as strit6

onstrued as )&ere t&e parties are o5pete strangers vis-a-visea& ot&ert&us, reiane -6 one part6 upon &is -ood reations&ip )it& t&e ot&er and

t&e trust and on'idene nor5a6 onnoted in our uture -6 t&at

reations&ip s&oud not -e taen against &i5. Too,Sotto v. Teves142rued

t&at t&e dotrine o' a&es is not strit6 appied -et)een near reati(es, and

t&e 'at t&at t&e parties are onneted -6 ties o' -ood or 5arriage tends to

e$use an ot&er)ise unreasona-e dea6.

Third, t&ere is a 'unda5enta prinipe in agen6 t&at )&ere ertain

propert6 entrusted to an agent and i5pressed -6 a) )it& a trust in 'a(or o't&e prinipa is )rong'u6 di(erted, su& trust 'oo)s t&e propert6 in t&e

&ands o' a t&ird person and t&e prinipa is ordinari6 entited to pursue

and reo(er it so ong as t&e propert6 an -e traed and identi'ied, and no

superior e>uities &a(e inter(ened. T&is prinipe is atua6 one o' trusts,

sine t&e )rong'u on(ersion gi(es rise to a onstruti(e trust )&i&

pursues t&e propert6, its produt or proeeds, and per5its t&e -ene'iiar6

to reo(er t&e propert6 or o-tain da5ages 'or t&e )rong'u on(ersion o'

t&e propert6. Apt6 aed t&e Gtrust pursuit rue,H it appies )&en aonstruti(e or resuting trust &as one a''i$ed itse' to propert6 in a ertain

state or 'or5.14+2

Dene, a trust )i 'oo) t&e propert6 9 t&roug& a &anges in its

state and 'or5 as ong as su& propert6, its produts or its proeeds, are

apa-e o' identi'iation, e(en into t&e &ands o' a trans'eree ot&er t&an
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14/22

a ona fidepur&aser 'or (aue, or restitution )i -e en'ored at t&e

eetion o' t&e -ene'iiar6 t&roug& reourse against t&e trustee or t&e

trans'eree persona6. T&is is grounded on t&e prinipe in propert6 a)

t&at o)ners&ip ontinues and an -e asserted -6 t&e true o)ner against an6

)it&&oding o' t&e o-7et to )&i& t&e o)ners&ip pertains, )&et&er su&o-7et o' t&e o)ners&ip is 'ound in t&e &ands o' an origina o)ner or a

trans'eree, or in a di''erent 'or5, as ong as it an -e identi'ied.14!2 Aording6, t&e person to )&o5 is 5ade a trans'er o' trust propert6

onstituting a )rong'u on(ersion o' t&e trust propert6 and a -rea& o' t&e

trust, )&en not proteted as a ona fidepur&aser 'or (aue, is &i5se'

ia-e and aounta-e as a onstruti(e trustee. T&e ia-iit6 atta&es at t&e

5o5ent o' t&e trans'er o' trust propert6 and ontinues unti t&ere is 'u

restoration to t&e -ene'iiar6. T&us, t&e trans'eree is &arged )it&, and an-e &ed to t&e per'or5ane o' t&e trust, e>ua6 )it& t&e origina trustee,

and &e an -e o5peed to e$eute a reon(e6ane.14/2

T&is senario is &arateristi o' a onstruti(e trust i5posed -6

Artie +!/1442o' t&e Ci(i Code, )&i& i5presses upon a person o-taining

propert6 t&roug& 5istae or 'raud t&e status o' an i5pied trustee 'or t&e

-ene'it o' t&e person 'ro5 )&o5 t&e propert6 o5es. Petitioner, in a6ing

ai5 against respondents )&o are oneded6 trans'erees )&o pro'essed

&a(ing (aid6 deri(ed t&eir o)ners&ip 'ro5 Ro-erto, is in e''et en'oringagainst respondents a onstruti(e trust reation t&at arose -6 (irtue o' t&e

)rong'u and 'rauduent trans'er to t&e5 o' t&e su-7et properties -6

Ro-erto.

Aznar !rother "ealt# Co. v. A#in$,14@2iting!uan%da. de &sconde v.

Court of Appeals,14?2e$pained t&is 'or5 o' i5pied trust as 'oo)s:A deeper ana6sis o' Artie +!/ re(eas t&at it is not a trust in t&e

te&nia sense 'or in a t6pia trust, on'idene is reposed in one person)&o is na5ed a trustee 'or t&e -ene'it o' anot&er )&o is aed t&e cestuiquetrust, respeting propert6 )&i& is &ed -6 t&e trustee 'or t&e -ene'it o't&e cestui quetrust. A onstruti(e trust, unie an e$press trust, does note5anate 'ro5, or generate a 'iduiar6 reation. F&ie in an e$press trust, a-ene'iiar6 and a trustee are ined -6 on'identia or 'iduiar6 reations,in a onstruti(e trust, t&ere is neit&er a pro5ise nor an6 'iduiar6 reation
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15/22

to spea o' and t&e so%aed trustee neit&er aepts an6 trust nor intends&oding t&e propert6 'or t&e -ene'iiar6.

$ $ $ $

$ $ $ 1C2onstruti(e trusts are reated -6 t&e onstrution o' e>uit6 in orderto satis'6 t&e de5ands o' 7ustie and pre(ent un7ust enri&5ent. T&e6 ariseontrar6 to intention against one )&o, -6 'raud, duress or a-use o'on'idene, o-tains or &ods t&e ega rig&t to propert6 )&i& &e oug&t not,in e>uit6 and good onsiene, to &od.1@#2

It is setted t&at an ation 'or reon(e6ane -ased on a onstruti(e

i5pied trust presri-es in # 6ears ie)ise in aordane )it& Artie

++ o' t&e Ci(i Code. et not ie in t&e ase o' a resuting i5pied trust

and an e$press trust, presription super(enes in a onstruti(e i5piedtrust e(en i' t&e trustee does not repudiate t&e reations&ip. In ot&er

)ords, repudiation o' said trust is not a ondition preedent to t&e running

o' t&e presripti(e period.1@2

As to )&en t&e presripti(e period o55enes to run, Crisostomo v.

'arcia1@"2euidated as 'oo)s:

F&en propert6 is registered in anot&ers na5e, an i5pied oronstruti(e trust is reated -6 a) in 'a(or o' t&e true o)ner. T&e ation'or reon(e6ane o' t&e tite to t&e rig&t'u o)ner presri-es in # 6ears'ro5 t&e issuane o' t&e tite. An ation 'or reon(e6ane -ased oni5pied or onstruti(e trust presri-es in ten 6ears 'ro5 t&e aeged'rauduent registration or date o' issuane o' t&e erti'iate o' tite o(er t&epropert6.

It is no) )e setted t&at t&e presripti(e period to reo(erpropert6 o-tained -6 'raud or 5istae, gi(ing rise to an i5pied trustunder Art. +!/ o' t&e Ci(i Code, is # 6ears pursuant to Art. ++. T01stenye#r pres2r1pt13e per1%d be1ns t% rn 4r%+ t0e d#te t0e#d3erse p#rty repd1#tes t0e 1+p-1ed trst, 50120 repd1#t1%n

t#6es p-#2e 50en t0e #d3erse p#rty re1sters t0e -#nd. 1@2

ro5 t&e 'oregoing, it is ear t&at an ation 'or reon(e6ane under a

onstruti(e i5pied trust in aordane )it& Artie +!/ does not

presri-e uness and unti t&e and is registered or t&e instru5ent a''eting
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16/22

t&e sa5e is insri-ed in aordane )it& a), inas5u& as it is )&at -inds

t&e and and operates onstruti(e notie to t&e )ord. 1@+2In t&e present

ase, &o)e(er, t&e ands in(o(ed are oneded6 unregistered ands &ene,

t&ere is no )a6 -6 )&i& argarita, during &er i'eti5e, oud -e noti'ied o'

t&e 'urti(e and 'rauduent saes 5ade in ??" -6 Ro-erto in 'a(or o'respondents, e$ept -6 atua notie 'ro5 Pedro &i5se' in August

??!. Dene, it is 'ro5 t&at date t&at presription -egan to to. T&e 'iing

o' t&e o5paint in e-ruar6 ??/ is )e )it&in t&e presripti(e

period. ina6, su& dea6 o' on6 si$


17/22

!RESBITERO $. VELASCO, $R. ARTURO D.BRION

Assoiate Justie Assoiate JustieC&airperson

MARIA LOURDES !. A. SERENOAssoiate Justie

ATTESTATION

I attest t&at t&e onusions in t&e a-o(e 0eision &ad -een rea&edin onsutation -e'ore t&e ase )as assigned to t&e )riter o' t&e opinion o't&e Courts 0i(ision.

!RESBITERO $. VELASCO, $R. Assoiate Justie

T&ird 0i(ision, C&airperson

CERTIFICATION

Pursuant to Setion , Artie VIII o' t&e Constitution and t&e

0i(ision C&airpersons Attestation, I erti'6 t&at t&e onusions in t&ea-o(e 0eision &ad -een rea&ed in onsutation -e'ore t&e ase )asassigned to t&e )riter o' t&e opinion o' t&e Courts 0i(ision.

RENATO C. CORONA


18/22

C&ie' Justie

* 0esignated as an additiona 5e5-er in ieu o' Assoiate Justie Ro-erto A. A-ad, per SpeiaOrder No. #!? dated August , "#.** 0esignated as an additiona 5e5-er in ieu o' Assoiate Justie Jose Catra endo;a, per SpeiaOrder No. #!/ dated Ju6 "4, "#.*** 0esignated as an additiona 5e5-er, per Speia Order No. #"@ dated June ", "#.12 Penned -6 Assoiate Justie Japar B. 0i5aa5pao, )it& Assoiate Justies arina L. Bu;on andRegaado E. aa5-ong, onurring rollo, pp. +%!+.1"2 Signed -6 Judge Rose ar6 R. oina Ai5 id. at 4%@.12 Petitioner )as ater on su-stituted -6 t&e Estate o' argarita 0. Ca-aungan, represented -6Lu; Laigo%Ai.1+2 Estea Baagots na5e )as dropped 'ro5 t&e su-se>uent peadings 'ied )it& t&e tria ourt.1!2 Ta$ 0earation Nos.""+ series o' ?!, +//@ series o' ?/4 and !#!" series o'?!, reords, pp. "/%"@.1/2 Reords, p. ".142 (d. at "%, @ and "!.

1@2 (d. at "?%"".1?2 See 0eed o' A-soute Sae, id. at ?.1#2 See 0eed o' Sae o' a Residentia Land, and 0eed o' Sae o' Portions o' Land, id. at #%.12 Reords, pp. %+.1"2 (d. at ! TSN, e-ruar6 ?, "###, pp. @%?.12 See Co5piant, reords, pp. "%!.1+2 Reords, p. /.1!2 Reords, p. .1/2 T&ese respondents initia6 su-5itted a otion to 0is5iss, -ut t&e tria ourt denied t&e sa5e inits ar& #, ??@ Order. See reords, pp. ?%?@, /%?.142 See Ans)er, reords, pp. ""%"4.1@2 Reords, p. 4.1?2 (d. at 4?%@".1"#2

(d. at 44%[email protected]"2 (d. at "@@.1""2 "ollo, p. [email protected]"2 (d. at [email protected]"+2 (d. at 4?.1"!2 (d. at @.1"/2 CA rollo, p. "".1"42 (d. at ""+%""!.1"@2 (d. at ""/.1"?2 (d. at "@.1#2 Ca)ezo v. "o*as, 3.R. No. +@4@@, No(e5-er ", "##4, !@ SCRA "+", "! Ti$no v. Court of

Appeals, 3.R. No. #!, Oto-er @, ??4, "@# SCRA "/", "4%"4", iting+orales v. Court of Appeals,"4+ SCRA "@"


19/22

1!2 Ca)ezo v. "oxas, supranote #, at "!@ iting0eirs of 1ap v. Court of Appeals, 4 P&i. !",!


20/22

A/ He , #nd t0#t 5#s #reedp%n, s1r. 8/ 7#s R%bert% #b-e t% % t% A+er12#; A/ "es, s1r. : And one o' t&e e(idene t&at )as used $ $ $ to seure a (isa )ere t&ese ta$dearations o' propertiesK A: es, sir. : ou said t&at


21/22


22/22

8/ D% y% 6n%5, +#d#+ 51tness, 14 t0#t 5#s red2ed 1nt% 5r1t1n; $ $ $ $ A/ T0#t 1s # 3erb#- #ree+ent. : Do) did 6ou o5e to no) t&atK A: I )as in t&e &ouse. : In t&e &ouse o' argarita LaigoK A: es, sir, -eause s&e is 56 auntie : Are 6ou sti sta6ing t&ere 'u ti5e in t&e &ouse o' argarita LaigoK A: So5eti5es on6. $ $ $ $ : So t&at 5eans t&at so5eti5es, 6ou )ere not t&ere. It oud -e t&at rs. Laigotod Ro-erto Laigo t&at t&at )as

estate of cabacungan vs. laigo, august 15, 2011 - implied trust

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