Thursday, August 24, 2017

Pioneer Insurance and Surety Corporation v. Heirs of Coronado

Facts:
The Coronados, together with Cruz B. Carbon, filed with RTC, Antipolo, Rizal, a complaint for Annulment of Title and/or Reconveyance against petitioner, Pioneer Insurance and Surety Corporation, alleging that:

(i) Doroteo Garcia owned a parcel of land with an area of 23 hectares, a portion of which is located at Tugtugin, Barangay de la Paz, Antipolo City, while the other portion is located at Pinagbarilan, Barangay dela Paz, Antipolo City;
(ii) the entire parcel of land was declared for taxation purposes in 1906 in the name of Doroteo Garcia under Tax Declaration No. 16495 (now Tax Declaration No. 03-6799-SJ387);
(iii) Doroteo Garcia had been in possession of the land since Spanish time and, upon his death, his heirs, respondents Coronados, maintained possession of the land until the present;
(iv) on December 29, 1970, respondents Coronados, together with Cruz B. Carbon who was given a portion of the parcel of land in consideration of legal services he rendered, executed a Deed of Extrajudicial Partition of Real Estate partitioning the property among themselves;
(v) respondents later learned that a portion of the land was registered in the name of a certain Gaudencio T. Bocobo under Original Certificate of Title (OCT) No. 501 based on Free Patent No. 291532;
(vi) Bocobo mortgaged the land covered by OCT No. 501 as security for a P500,000.00 loan from petitioner; and
(vii) for failure of Bocobo to pay the loan, the mortgage was foreclosed and Transfer Certificate of Title (TCT) No. 19781 was issued in the name of petitioner.

Respondents prayed, among others, that TCT No. 19781 be declared null and void and the subject property be reconveyed to them.

In its Answer, petitioner averred that:
(i) in 1977, it issued a performance bond in favor of Gaudencio T. Bocobo which was secured by a real estate mortgage over a parcel of land covered by Free Patent No. 291532 with an area of 171,419 square meters located in Antipolo, Rizal;
(ii) before petitioner conformed to the real estate mortgage, it verified and examined Bocobos title, which it found to be free from any suspicion;
(iii) when Bocobo failed to pay his obligations, petitioner foreclosed the mortgage on the property and TCT No. 19781 was issued in its favor; and
(iv) from 1977 up to the time of petitioner’s receipt of the summons in the present complaint, no other person had claimed interest over the property.

In 1996, the trial court directed respondents counsel to submit a copy of the report of the relocation survey, which the parties agreed to be conducted on the subject property. Respondents filed an Urgent Motion for Investigation Survey, praying that the court issue an order directing the Lands Management Bureau (LMB) to conduct the required investigation survey. Consequently, the trial court issued an Order dated March 25, 1997 directing the LMB to conduct a survey of the subject property and submit a report indicating the boundaries and the exact location of the property.

In a Report on Verification Survey dated November 28, 1997 signed by Engr. Pangyarihan and Engr. Miranda, it likewise concluded that the property described in the petitioner’s title is not located in the place where the subject property is located.

Engr. Rosario B. Mercado did not agree with the findings of his colleagues and opted to submit a separate survey report. Using the tie lines indicated in the title, he concluded that a portion of the subject property overlapped the property described in petitioner’s certificate of title.

On January 29, 2002, the RTC adopted the findings of the majority of the commission and rendered the following judgment:

WHEREFORE, judgment is hereby rendered recognizing Julian Coronado, Vicente Coronado, Simeon Coronado and Maura Coronado to be the legal heirs of Doroteo Garcia and confirming their ownership of the parcel of land covered by PSU 159753 and Tax Declaration marked as Exhibit S containing an area of 11.65 hectares.

On the other hand, the Court finds no necessity to declare null and void TCT No. N-19781 registered in the name of the defendant but the court makes a finding and so holds that the parcel of land described therein is not the same parcel of land claimed and owned by the Coronados.

SO ORDERED.

On June 27, 2007, the CA affirmed the RTC Decision. The CA likewise denied the petitioners motion for reconsideration for lack of merit in the Resolution dated October 17, 2007.

Issue:
Whether or not the CA gravely erred in affirming RTC’s decision.

Held:
The records reveal that the respondents have been in possession of the subject property since 1938. Jurisprudence abounds in holding that, if a person claiming to be the owner is in actual possession of the property, the right to seek reconveyance, which in effect seeks to quiet title to the property, does not prescribe.

The Court find that the conclusion of the trial court, as affirmed by the CA, that the property described in TCT No. N-19781 is not located in the place where the subject property is located lacks adequate basis.

Both the trial and appellate courts based their conclusions on the verification surveys finding that the property covered by the said title is located in another place. It is noted, however, the surveys were conducted on the subject property only. Other than an ocular inspection, no survey was ever conducted on the area where the property covered by TCT No. N-19781 is allegedly located. Neither was there any effort to plot the tie lines indicated in its technical description. Consequently, the exact location of the property covered by the said certificate of title has not been established.

However, the fact that the property cannot be plotted on a certain area based on the technical description indicated in the certificate of title does not foreclose the possibility that there is simply an error in the technical description, or that it is only deficient. Unless the exact location of the property described in the certificate of title is determined, we cannot safely and definitively conclude that it is not located at a certain place.

Indubitably, a certificate of title serves as evidence of an indefeasible and incontrovertible title to the property in favor of the person whose name appears therein. The real purpose of the Torrens System of land registration is to quiet title to land and put stop forever to any question as to the legality of the title.


The court remands the case to the trial court for the determination of the exact location of the petitioners property.

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