MCIAA vs. Heirs of Ijordan, et al.

Mactan Cebu International Airport Authority (MCIAA) Vs. Heirs of Gavina Ijordan, et al.

G.R. No. 173140. January 11, 2016

BERSAMIN, J.:

Doctrine:

A sale of jointly owned real property by a co-owner without the express authority of the others is unenforceable against the latter, but valid and enforceable against the seller.

Facts:

On October 14, 1957, Julian Cuizon (Julian) executed a Deed of Extrajudicial Settlement and Sale (Deed) covering Lot No. 4539 (subject lot) situated in Ibo, Municipality of Opon (now Lapu-Lapu City) in favor of the Civil Aeronautics Administration ((CAA), the predecessor-in-interest of petitioner Manila Cebu International Airport Authority (MCIAA).

In 1980, the respondents caused the judicial reconstitution of the original certificate of title covering the subject lot. Consequently, Original Certificate of Title (OCT) No. RO-2431 of the Register of Deeds of Cebu was reconstituted for Lot No. 4539 in the names of the respondents' predecessors-in-interest, namely, Gavina Ijordan, and Julian, Francisca, Damasina, Marciana, Pastor, Angela, Mansueto, Bonifacia, Basilio, Moises and Florencio, all surnamed Cuison. The respondents' ownership of the subject lot was evidenced by OCT No. RO-2431. They asserted that they had not sold their shares in the subject lot, and had not authorized Julian to sell their shares to MCIAA's predecessor-in-interest.

The failure of the respondents to surrender the owner's copy of OCT No. RO-2431 prompted MCIAA to sue them for the cancellation of title in the RTC, alleging in its complaint that the certificate of title conferred no right in favor of the respondents because the lot had already been sold to the Government in 1957; that the subject lot had then been declared for taxation purposes under Tax Declaration No. 00387 in the name of the BAT; and that by virtue of the Deed, the respondents came under the legal obligation to surrender the certificate of title for cancellation to enable the issuance of a new one in its name.

After MCIAA's presentation of evidence, the respondents moved to dismiss the complaint upon the Demurrer to Evidence dated February 3, 1997, contending that the Deed and Tax Declaration No. 00387 had no probative value to support MCIAA's cause of action and its prayer for relief. They cited Section 3, Rule 130 of the Rules of Court which provided that "when the subject of inquiry is the contents of a document, no evidence shall be admissible other than the original document itself." They argued that what MCIAA submitted was a mere photocopy of the Deed; that even assuming that the Deed was a true reproduction of the original, the sale was unenforceable against them because it was only Julian who had executed the same without obtaining their consent or authority as his co-heirs; and that the tax declaration had no probative value by virtue of its having been derived from the unenforceable sale.

In its order dated September 2, 1997, the RTC dismissed MCIAA's complaint insofar as it pertained to the shares of the respondents in Lot No. 4539 but recognized the sale as to the 1/22 share of Julian.

The CA affirmed the orders of the RTC. Hence, this petition.

Issues:

1. Whether the subject lot was validly conveyed in its entirety to the petitioner.
2. Whether respondents are guilty of estoppel by laches.
3. Whether MCIAA possessed the subject lot by virtue of acquisitve prescription.

Rulings:

1. No, the CA and the RTC concluded that the Deed was void as far as the respondents' shares in the subject lot were concerned, but valid as to Julian's share. Their conclusion was based on the absence of the authority from his co-heirs in favor of Julian to convey their shares in the subject lot. We have no reason to overturn the affirmance of the CA on the issue of the respondents' co-ownership with Julian. Hence, the conveyance by Julian of the entire property pursuant to the Deed did not bind the respondents for lack of their consent and authority in his favor. As such, the Deed had no legal effect as to their shares in the property. Article 1317 of the Civil Code provides that no person could contract in the name of another without being authorized by the latter, or unless he had by law a right to represent him; the contract entered into in the name of another by one who has no authority or legal representation, or who has acted beyond his powers, is unenforceable, unless it is ratified, expressly or impliedly, by the person on whose behalf it has been executed, before it is revoked by the other contracting party.

But the conveyance by Julian through the Deed had full force and effect with respect to his share of 1/22 of the entire property consisting of 546 square meters by virtue of its being a voluntary disposition of property on his part. As ruled in Torres v. Lapinid:

x x x even if a co-owner sells the whole property as his, the sale will affect only his own share but not those of the other co-owners who did not consent to the sale. This is because the sale or other disposition of a co-owner affects only his undivided share and the transferee gets only what would correspond to his grantor in the partition of the thing owned in common.

2. No. MCIAA's assertion of estoppel or ratification to bar the respondents' contrary claim of ownership of their shares in the subject lot is bereft of substance. The doctrine of estoppel applied only to those who were parties to the contract and their privies or successors-in-interest. Moreover, the respondents could not be held to ratify the contract that was declared to be null and void with respect to their share, for there was nothing for them to ratify. Verily, the Deed, being null and void, had no adverse effect on the rights of the respondents in the subject lot.

3. No. MCIAA's contention on acquisitive prescription in its favor must fail. Aside from the absence of the satisfactory showing of MCIAA's supposed possession of the subject lot, no acquisitive prescription could arise in view of the indefeasibility of the respondents' Torrens title. Under the Torrens System, no adverse possession could deprive the registered owners of their title by prescription. The real purpose of the Torrens System is to quiet title to land and to stop any question as to its legality forever. Thus, once title is registered, the owner may rest secure, without the necessity of waiting in the portals of the court, or sitting on the mirador su casa to avoid the possibility of losing his land.

WHEREFORE, the Court DENIES the petition for review on certiorari; and AFFIRMS the decision promulgated on February 22, 2006.