City of Tanauan v. Millonte
REITERATIONFacts
The Antecedents: Respondent Gloria A. Millonte, as granddaughter and direct descendant of Lucio Gonzaga, filed a Complaint seeking the declaration of nullity of a Deed of Absolute Sale dated February 10, 1970, and the corresponding Transfer Certificate of Title (TCT) No. T-42198, praying for the reinstatement of Original Certificate of Title (OCT) No. 3243. The property was allegedly acquired by the City of Tanauan from the Gonzaga siblings. Millonte asserted that the Gonzaga siblings were already dead when the Deed of Absolute Sale was executed, rendering the sale void. Procedural History: The Regional Trial Court (RTC) of Tanauan City, Branch 83, denied the City of Tanauan's Motion to Dismiss and Demurrer to Evidence. The RTC subsequently rendered a Decision on August 17, 2012, declaring the Deed of Absolute Sale and TCT T-42198 null and void, and ordering the reinstatement of OCT 3243. The RTC found that the Gonzaga siblings were already dead at the time of the deed's execution. The Court of Appeals (CA) affirmed the RTC's Decision on January 23, 2015, and denied the motion for reconsideration on June 15, 2015. The Petition: The City of Tanauan filed a Petition for Review on Certiorari before the Supreme Court, assailing the CA's Decision and Resolution, primarily arguing that Millonte failed to overcome the presumption of regularity and that the resort to secondary evidence was not justified.
Issue(s)
Whether the Deed of Absolute Sale dated February 10, 1970, is null and void. Whether the action to declare the nullity of the Deed of Absolute Sale has prescribed or is barred by laches. Whether the Court of Appeals erred in allowing the use of secondary evidence to prove the deaths of the Gonzaga siblings.
Ruling
The petition is denied for lack of merit. The assailed Decision and Resolution of the Court of Appeals are affirmed.
Ratio Decidendi
On whether the Deed of Absolute Sale dated February 10, 1970, is null and void: The Supreme Court affirmed the findings of the RTC and CA that the Deed of Absolute Sale is null and void. The Court held that if any one party to a supposed contract was already dead at the time of its execution, such contract is undoubtedly simulated and false, and therefore, null and void. Millonte sufficiently proved, by preponderant evidence, that the Gonzaga siblings, the purported vendors, were already dead prior to February 10, 1970. This was established through a Certification of Ambrosio's death, Certifications stating that death certificates of the other Gonzagas were destroyed by fire during the war, and the testimonies of relatives who confirmed the deaths of Lucio, Ambrosio, and Eleuteria. Consequently, the Deed of Absolute Sale did not convey any legal title to the petitioner, and TCT T-42198, issued by virtue of this spurious document, is also null and void. The Court emphasized that the presumption of regularity accorded to notarized documents is not absolute and can be refuted by clear and convincing evidence, which was sufficiently presented by Millonte. On whether the action to declare the nullity of the Deed of Absolute Sale has prescribed or is barred by laches: The Supreme Court reiterated that the action or defense for the declaration of the inexistence of a contract does not prescribe, as provided by Article 1410 of the Civil Code. An action predicated on a contract that is void ab initio is imprescriptible. Therefore, Millonte, as an heir, could assail the validity of the Deed of Absolute Sale even years after its execution and despite the transfer of title to the City of Tanauan. Given the imprescriptibility of the action, the petitioner cannot invoke laches as a defense. The Court stressed that allowing the City of Tanauan to retain ownership of the property despite the void contract would result in unjust enrichment. On whether the Court of Appeals erred in allowing the use of secondary evidence to prove the deaths of the Gonzaga siblings: The Supreme Court ruled that Millonte's resort to secondary evidence was proper. The original documents, specifically the death certificates of Pantaleona, Lucio, Marcelo, and Eleuteria, were unavailable because they were destroyed by fire during the war, as evidenced by Certifications from the Local Civil Registrar. The testimonies of relatives, Rolando and Florentino, and Millonte herself, corroborated the fact that these individuals had passed away years before the execution of the Deed of Absolute Sale. This secondary evidence, coupled with the Certification of Ambrosio's death, sufficiently established that the supposed contracting parties were deceased at the time of the alleged sale. The Court found that Millonte successfully overturned the presumption of regularity by presenting clear and convincing evidence of forgery.
Main Doctrine
A deed of absolute sale is considered simulated and null and void if one of the contracting parties was already dead at the time of its execution. Such a void contract can be assailed at any time, and the action for its declaration is imprescriptible. The presumption of regularity accorded to notarized documents can be overcome by clear and convincing evidence.