Banguis v. Tambuyat

G.R. No. 205537 · 2016-06-29 · J. ESTELA M. PERLAS-BERNABE, J.: · Primary: Civil; Secondary: Remedial
REITERATION

Facts

The Antecedents: This case concerns a dispute over the inclusion of Rosario E. Banguis's name as a spouse on Transfer Certificate of Title (TCT) No. T-145321 (M), which pertains to a property registered under Adriano M. Tambuyat. Wenifreda Tambuyat, claiming to be Adriano's lawful wife, petitioned for the cancellation of Banguis's name from the title, asserting that she, not Banguis, is Adriano's legal spouse. Banguis opposed this, asserting her own ownership and possession of the property and arguing that the dispute involved complex issues of ownership and inheritance that a land registration court lacked jurisdiction to resolve. The underlying dispute thus centers on the rightful beneficiary of the property registered under Adriano Tambuyat's name, specifically whether it should reflect his marriage to Wenifreda or Banguis's claimed rights. Procedural History: The case originated in the Regional Trial Court (RTC) of Malolos, Bulacan, acting as a land registration court, which granted Wenifreda's petition to cancel Banguis's name from TCT T-145321. The RTC found that Wenifreda was Adriano's lawful wife and that Banguis's inclusion was an error. Despite Banguis's opposition and subsequent appeal to the Court of Appeals (CA), the RTC issued an order for execution pending appeal, leading to the cancellation of TCT T-145321 and the issuance of a new title, TCT T-433713(M). The CA partially granted Banguis's appeal, affirming the RTC's decision but deleting the awards of moral and exemplary damages, attorney's fees, and costs. The CA reasoned that the trial court had jurisdiction to resolve the matter under Section 108 of PD 1529, as Banguis had submitted to its jurisdiction by actively participating in the proceedings and presenting evidence. The CA also found that Banguis failed to prove her co-ownership or sole ownership of the property and that Wenifreda was Adriano's lawful spouse. The Petition: Banguis filed a petition for review on certiorari with the Supreme Court, raising several issues. She argued that the CA erred in sustaining the RTC's cancellation of the title entry, contending that the RTC lacked jurisdiction due to the contentious nature of her objections and that a separate proceeding in a court of general jurisdiction was necessary. Banguis also asserted that the CA disregarded proof of her ownership and possession and violated Article 148 of the Family Code by failing to recognize properties acquired during her cohabitation with Adriano. Furthermore, she questioned the RTC's grant of execution pending appeal. The petition essentially seeks to reverse the CA's decision, reinstate her claims, and dismiss Wenifreda's petition for cancellation, arguing that the issues of ownership and marital property rights require a more comprehensive adjudication than a land registration court can provide.

Issue(s)

Whether the RTC, sitting as a land registration court, had jurisdiction to cancel TCT T-145321 despite Banguis's contentious opposition and claim of ownership. Whether the CA erred in sustaining the RTC's cancellation of the entry in TCT T-145321 despite Banguis's alleged proof of ownership and possession. Whether the CA erred in sustaining the RTC's cancellation of the entry in TCT T-145321 in violation of Article 148 of the Family Code. Whether the CA erred in sustaining the RTC's grant of execution pending appeal despite Banguis's appeal and the absence of special reasons.

Ruling

The Supreme Court denied the petition. The Court affirmed the decision of the Court of Appeals, holding that the RTC was not precluded from resolving the objections raised by Banguis and that a separate action was not necessary. The Court found that Banguis acquiesced to the RTC's jurisdiction by actively participating in the proceedings and submitting her evidence. The Court reiterated that PD 1529 eliminated the distinction between a land registration court and a court of general jurisdiction, allowing the former to resolve contentious issues when parties submit to its authority. The Court also found that the evidence preponderantly showed Wenifreda to be Adriano's lawful spouse, making Banguis's inclusion in the title erroneous. Furthermore, Banguis failed to prove her co-ownership or sole ownership of the property, and her claims were contradictory. The issue of execution pending appeal was rendered moot and academic by the resolution of the main case.

Ratio Decidendi

On the jurisdiction of the RTC under Section 108 of PD 1529: The Court held that the RTC, even when sitting as a land registration court, was not precluded from resolving the objections raised by Banguis. The active participation of Banguis in the proceedings, including the submission of all her relevant documentary and other evidence to prove her allegations, constituted an acquiescence and voluntary submission to the trial court's jurisdiction for a complete determination of the issues. This bars her from later impugning the court's jurisdiction. The Court emphasized that PD 1529 has eliminated the distinction between a land registration court and a court of general jurisdiction, empowering the former to resolve contentious issues when parties submit to its authority. The Court cited jurisprudence stating that the active participation of a party and failure to object to jurisdiction is tantamount to an invocation of that jurisdiction. On Banguis's claimed ownership and possession: The Court found that Banguis's claim of ownership was not sufficiently proven. While proceedings under Section 108 are generally summary and for clerical corrections, they can extend to controversial issues if parties submit to the court's jurisdiction. The Court noted that evidence of Banguis's ownership was irrelevant to Wenifreda's petition for cancellation, which solely aimed to correct the erroneous inclusion of Banguis's name as Adriano's spouse. The Court reiterated that registration is not equivalent to title, and the certificate of title is merely the best proof of ownership. The Court found Banguis's claims contradictory, particularly her assertion of sole payment for the property while also acknowledging Adriano as a co-owner, and her failure to explain why she allowed Adriano to be denominated as the sole vendee in the deed of sale despite her alleged sole purchase. On the applicability of Article 148 of the Family Code: The Court ruled that Article 148 of the Family Code was not applicable in this case. The primary issue was the correction of an erroneous entry in the certificate of title, not the partition of properties acquired during cohabitation. The Court found that Banguis and Adriano were not co-owners because both had subsisting marriages with other individuals at the time of the alleged cohabitation and acquisition of the property. Therefore, they were not legally capacitated to enter into a common-law marriage or acquire property under Article 148. The Court clarified that Philippine law does not recognize common-law marriages and that provisions referring to a "spouse" contemplate a lawfully wedded spouse, unless expressly provided otherwise. On the execution pending appeal: The Court deemed the issue of execution pending appeal moot and academic. Given the resolution of the main case, which affirmed the cancellation of TCT T-145321 and the issuance of a new title in Wenifreda's name, the propriety of the execution pending appeal became irrelevant. The Court's decision on the merits rendered the procedural issue of immediate execution moot.

Main Doctrine

A proceeding under Section 108 of PD 1529 for the amendment or alteration of a certificate of title may resolve controversial issues, including claims of ownership, if the parties actively participate in the proceedings and submit all their evidence, thereby acquiescing to the court's jurisdiction to determine such issues.

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