Aitken v. La O
REITERATIONFacts
The Antecedents: To Jan Co erected a store building on land belonging to Apolonia Remigio under an agreement for shared rents. Apolonia Remigio sued To Jan Co and an occupant for unpaid rents, obtaining a judgment for P3,425. Apolonia Remigio purchased the house at a sheriff's sale on February 11, 1910, and took possession. The defendant is the administrator of Apolonia Remigio's estate. On October 6, 1908, To Jan Co executed an unregistered deed of sale of the house to To Cun, reserving a 90-day right to repurchase, which was not exercised. To Cun never took possession. On October 22, 1912, To Cun executed an unregistered deed of sale of the house to the plaintiff, Thos. D. Aitken. Procedural History: On June 9, 1915, the plaintiff instituted proceedings praying for possession of the house and an accounting of rentals from September 1, 1908, alleging his share of rentals amounted to P2,485. The trial court ruled in favor of the defendant, absolving Julian La O, as administrator, from the complaint. The Petition: The plaintiff appealed the trial court's decision.
Issue(s)
Whether the prior unregistered deed of sale from To Jan Co to To Cun, and subsequently to Aitken, is superior to the title acquired by Apolonia Remigio through a sheriff's sale, followed by her immediate possession in good faith.
Ruling
The Supreme Court affirmed the decision of the trial court, dismissing the plaintiff's complaint. The Court held that the sale of the house at a sheriff's sale to Apolonia Remigio was legal and valid, and that the plaintiff acquired no right or title to the house or its rentals. The costs were against the appellant.
Ratio Decidendi
On Issue 1: The Supreme Court held that the case falls under the provisions of Article 1473 of the Civil Code concerning double sales of property. Granting, for the sake of argument, the validity of the sale from To Jan Co to To Cun, the Court found that the house was sold as property to two different vendees. Since the sale to To Cun was never recorded in the registry, the ownership, being real property, belongs to the person who first took possession thereof in good faith. Apolonia Remigio was the purchaser who acquired possession forthwith after the sheriff's sale on February 11, 1910, doing so in good faith. The Court explicitly stated that purchasers at execution sales are, to the same extent as other purchasers, entitled to the benefit of statutes requiring instruments affecting the title to real estate to be recorded, and are protected from claims previously acquired by third persons from the judgment debtor of which they have no actual or constructive notice. Therefore, Remigio's title, perfected by possession in good faith after the execution sale, prevailed over Aitken's claim derived from an unregistered prior sale to To Cun, who never possessed the property.
Main Doctrine
Under Article 1473 of the Civil Code, where the same real property is sold to different vendees, ownership transfers to the one who first recorded it in the registry. In the absence of registration, ownership belongs to the one who first took possession in good faith. If there is no entry and no possession, it belongs to the one with the oldest title, provided there is good faith. Purchasers at execution sales are entitled to the protection afforded by statutes requiring recordation of instruments affecting title.