Philippine National Bank v. Devaras
REITERATIONFacts
The Antecedents: Elpidia Devaras and Pio Dumaguit were married and acquired a parcel of land. They separated-in-fact, and Devaras married an American soldier. Dumaguit, as administrator, sold one-half of the property to Eulogia Aras, who mortgaged it to Philippine National Bank (PNB). The other half was sold to Melinao Peregrino. Devaras returned to the Philippines, claimed her share, and upon discovering the sales, sought an amicable settlement which failed. She executed a Special Power of Attorney in favor of Atty. Leon T. Tumandao to pursue legal action. Procedural History: Devaras, represented by her attorney-in-fact, filed a complaint for Recovery of Real Property against Dumaguit, Peregrino, Aras, and PNB, seeking to declare the Deeds of Absolute Sale null and void. The trial court dismissed the complaint, ruling that the wife's consent was not necessary for the sale of property acquired before the New Civil Code. On appeal, the Court of Appeals set aside the dismissal and remanded the case, holding that while the wife's consent might not be needed for alienation of pre-1950 property, she is not barred from asserting her rights under Article 173 of the New Civil Code against acts that defraud her or impair her interest, within ten years from the transaction. The Petition: PNB filed a petition arguing that Devaras' action had prescribed, as the sale to Aras occurred on May 4, 1958, and the complaint was filed on December 4, 1973, exceeding the ten-year prescriptive period under Article 173 of the Civil Code.
Issue(s)
Whether the action for annulment of the sale between Dumaguit and Aras, and the subsequent mortgage to PNB, has prescribed under Article 173 of the Civil Code. Whether the defense of prescription can be invoked despite not being expressly pleaded in the answer.
Ruling
The petition is GRANTED. The decision of the Court of Appeals is SET ASIDE or REVERSED insofar as the sale between Dumaguit and Aras is concerned. The action filed by respondent Devaras against Aras and PNB has prescribed.
Ratio Decidendi
On the issue of prescription regarding the sale between Dumaguit and Aras: The Court ruled that the action for annulment of the sale between Dumaguit and Aras, executed on May 4, 1958, had prescribed. The complaint was filed on December 4, 1973, which is more than ten years after the transaction. Article 173 of the New Civil Code provides that the wife may ask for the annulment of any act or contract of the husband entered into without her consent, when such consent is required, or any act or contract of the husband which tends to defraud her or impair her interest in the conjugal partnership property, within ten years from the transaction questioned. Although the property was acquired before the New Civil Code, and thus Article 166 might not require the wife's consent for alienation, Article 173 still allows the wife to seek annulment if the husband's act tends to defraud her or impair her interest. In this case, the ten-year prescriptive period under Article 173 expired in 1968, making the complaint filed in 1973 too late. Therefore, Devaras had no cause of action against Aras and PNB when she filed the suit. On the issue of whether prescription can be invoked despite not being expressly pleaded: The Court held that the issue or defense of prescription may still be invoked and considered even if not expressly pleaded in the petitioner's answer, provided that the factual basis of prescription can be ascertained from the pleadings or the evidence on record. In this case, the dates of the transaction and the filing of the complaint were clear from the records, allowing the Court to consider the defense of prescription.
Main Doctrine
An action for annulment of a husband's sale of conjugal property acquired before the New Civil Code, filed by the wife without her consent, prescribes within ten years from the transaction, even if the wife's consent was not required for the sale, if the act tends to defraud her or impair her interest in the conjugal partnership.