Fernandez v. Delfin

G.R. No. 227917 · 2021-03-17 · J. LEONEN, J.: · Primary: Civil; Secondary: Property
REITERATION

Facts

The Antecedents: Spouses Rudy and Cristeta Fernandez (petitioners) formerly owned five contiguous parcels of land. Two of these properties were located in front of the other three, providing sole access to the national highway. In 1980, petitioners annotated an easement of right of way on the transfer certificates of title (TCTs) of the front properties in favor of the back properties. Petitioners later mortgaged the front properties to Philippine National Bank (PNB) due to a loan default. PNB foreclosed and acquired the front properties. Subsequently, Spouses Merardo and Angelita Delfin (respondents) purchased the front properties from PNB. Their TCTs bore the same annotations of the easement. However, respondents refused to recognize the right of way and enclosed the properties, blocking petitioners' access to the highway. Procedural History: Petitioners filed a Complaint for specific performance, right of way, and damages. The Regional Trial Court (RTC) initially ordered the constitution of a road right of way on the west side of the properties. The Delfin Spouses appealed, arguing they were entitled to indemnity and that no easement was constituted. The Court of Appeals (CA) reversed the RTC, ruling that no easement was constituted because the properties had a single owner when the easement was imposed, and annotations do not create easements. The CA found that any offer for an easement was subject to indemnity, which petitioners rejected. The CA dismissed the complaint. The Petition: Petitioners seek review, arguing that Article 624 of the Civil Code applies, as they previously owned both sets of properties, established an apparent sign of easement (annotation), and the sign was never removed. They contend that an owner can impose an easement on adjoining properties and that respondents, having been warned by the annotations, should bear the cost.

Issue(s)

Whether a valid easement of right of way was constituted on the front properties formerly owned by petitioners and now owned by respondents, and whether Article 624 of the Civil Code applies to the situation. On the nature of easements and acquisition of title, specifically regarding the requirements for establishing and maintaining an easement of right of way.

Ruling

The Supreme Court reversed the Court of Appeals' decision, holding that a valid easement of right of way was constituted in favor of the petitioners. The Court ordered that an easement of right of way be deemed constituted on the properties owned by respondents.

Ratio Decidendi

On the existence of a valid easement of right of way and the applicability of Article 624: The Court held that a valid easement of right of way was constituted. Article 624 of the Civil Code applies when an owner of two properties establishes an apparent sign of an easement between them. Upon alienation of either property, this apparent sign is considered a title for the easement to continue, unless the contrary is provided in the deed of transfer or the sign is removed before the deed's execution. In this case, petitioners, as the former owners of both the front (servient) and back (dominant) properties, established an apparent sign of an easement by using a portion of the front properties for access and annotating this on the TCTs. When the front properties were transferred to PNB, and subsequently to respondents, these annotations served as the title for the easement. There was no stipulation against the easement in the deeds of transfer, nor was the apparent sign removed. Therefore, the easement subsisted and bound the subsequent owners, including respondents, who were aware of the annotations on their titles. On the nature of easements and acquisition of title: The Court reiterated that an easement is an encumbrance on a property for the benefit of another property owned by a different owner. An easement of right of way is a discontinuous easement, which can generally only be acquired by title. Article 624 provides a specific mode of acquiring title through an apparent sign when the properties were previously under a single owner. The presence of physical signs, like a path, and annotations on titles, serve as evidence of this apparent sign. The Court clarified that an easement cannot be constituted when both estates are owned by one person; it is created upon the division of ownership. The apparent sign, in this context, acts as a title for the easement's continuation upon alienation, implying a contract between the parties that the easement should subsist.

Main Doctrine

Under Article 624 of the Civil Code, the existence of an apparent sign of an easement between two estates, established by the owner of both, shall be considered a title for the easement to continue when either of the estates is alienated, unless the contrary is provided in the deed of transfer or the sign is removed before the execution of the deed.

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