REPUBLIC v. SPS. LASMARIAS

Republic of the Philippines v. Sps. Dolores and Abe Lasmarias; and Cooperative Bank ​​of ​​Lanao​​ Del​​ Norte​​
G.R.​​ No.​ ​206168
April​​ 26, ​​2017



FACTS:


Respondents, spouses Dolores and Abe Lasmarias, bought Lot No. 1991-A-l, Csd-12-000051 with an area of 4.8595 hectares including a fishpond located at Raw-An Point, Baroy, Lanao del Norte from Aida Solijon, who executed a Deed of Sale of Registered Land dated May 6, 1991 signed by her husband, Nicanor Aguilar, Jr. and notarized before a Notary Public. The said lot was registered to Solijon by virtue of Free Patent, applied for by Solijon in 1984 and granted in 1986. However, the sale was not registered or annotated on the OCT nor was the title transferred in respondents' names in order to avoid paying taxes. In 1997 to 1999, respondents, through a Special Power of Attorney executed by Solijon executed a Real Estate Mortgage on the disputed lot with the Cooperative Bank, however, respondents failed to satisfy their obligation resulting to the foreclosure of the mortgaged property. Accordingly, the respondents were​​ given ​​five ​​(5) ​​years​​ to ​​redeem​​ the ​​property.


Sometime in 2011 a relocation survey was conducted on the disputed lot and it was found that a portion of petitioner, Raw-An Point Elementary School, partly encroached on the said lot.. Respondents informed the school principal and they agreed to have another survey that resulted to the same findings. Thus, respondents sent a letter ​​to​​ vacate​​ dated​​ July ​​26,​​2001​​ to​​ the​​ petitioner, ​​but ​​to​​ no​​ avail.

On September 13, 2001, filed a complaint for recovery of possession against the petitioner. Respondents presented sketch plan and Certification dated October 30, 2001 stating that a portion of the petitioner's structure is within lot. However, respondents admitted that they knew that petitioner, through the then Department of Education Culture and Sports (DECS), owns a lot in the same area donated to it by Necias Balatero through a Deed of Donation executed on January 14, 1992, however, respondents insisted that the lot donated is not the present school site but rather the lot adjacent thereto. Respondents further claimed that Nicanor Aguilar, Sr. previously donated a 1.179-hectare lot to the school, first in the early 1950s or 1960s and second in the early 1990s, but upon seeing the sketch, respondents saw that the present school site is also different from the one Nicanor Aguilar, Sr. donated. While the Cooperative Bank intervened in the proceedings of the case claiming that it is the present owner of the lot. It claimed good faith and prayed that it will be the legitimate owner of the land and​​ for petitioner ​​to ​​vacate​​ the​​ property.


Petitioner, on the other hand, insisted that the school building has been in existence on the subject lot since 1950 as supported by school records showing its operation as early as 1955. It, however, conceded that the lot donated to them by Necias Balatero is adjacent to the school but maintained that the donation was only in addition to the present school site. Petitioner also admitted that it has no title on the property where the school presently stands, but according to petitioner, considering the length of the school's existence thereon, it would have been improbable for another person to obtain title thereto, much less, a free patent. Petitioner further averred that respondents' action has already prescribed. It also argued that at the time Solijon applied for a Free Patent, the lot was already occupied, thus, Solijon must have committed fraud and misrepresentation when she applied for a Free Patent which requires that the applicant must be in exclusive possession ·of the property. Such fraud and misrepresentation, therefore, according to petitioner, is enough to nullify the grant of​​ patent​​ and​​ title​​ in ​​Solijon's​​ name.


The RTC ruled in favor of the respondents. Petitioner filed its appeal with the CA. However, the latter court affirmed the RTC decision with modifications. Hence, the present petition​​ for ​​Review​​ on​​​ Certiorari​​​ under​​ Rule​​ 45.


ISSUE:


Whether or not the petitioner was able to present clear and convincing evidence showing that the free patent over the subject property was procured through fraud and misrepresentation.



HELD:

Yes. Petitioner was able to present clear and convincing evidence showing that the free patent over the subject property was procured through fraud and misrepresentation.

While the RTC and the CA in this case are similar in their factual findings, there appears to be no substantial evidence to prove that Solijon did not commit fraud or misrepresentation in her application for free patent. It must be remembered that petitioner was not able to prove the existence of fraud because the records of Solijon's patent application were damaged by termites and could no longer be reproduced, as testified to by the Officer-inCharge of the CENRO, Kolambugan, Lanao del Norte. This, however, does not mean that no fraud actually exists. It only means that "Solijon's free patent application was not presented before the RTC. Furthermore, it is also erroneous to conclude that if Solijon's free patent was obtained through fraud, it necessarily follows that Balatero' s free patent was, likewise, obtained through fraud. Nothing in the records would show that the parties presented Balatero' s free patent application or that any party alleged that he committed fraud or misrepresentation by claiming that the land he applied for was unoccupied. If at all, the fact that Balatero donated a:portion of the land he applied for to the school could mean that he recognized the existence of an occupant and a previously constructed school building on the land, or that his application was made subject to the school's occupation of a portion of the land he applied for. In addition, the RTC noted that petitioner did not give Solijon a day in court either by filing a third-party complaint or by including her as defendant-in-intervention. Yet, the RTC made a conclusion against Balatero's free patent application although he was also not a party ​​to​​ the​ ​case.


Anent Solijon's free patent application, the said application was in 1984 and was granted two years later, in 1986. The uncontested facts, however, is that the school building had been in existence since 1950 and the school had been in operation since 1955 as proven by the school records submitted by petitioner to the RTC that go back as early as 1955, clearly indicating that Solijon was not in exclusive possession of Lot No. 1991-A-1 when he applied for the free patent in 1984. Under paragraph 1, Section 44, Chapter VII of Commonwealth Act No. 141, as amended by Republic Act No. 782, the free patent applicant: (1) has to be a natural born citizen of the Philippines who is not the owner of more than twenty-four hectares; and (2) since 4 July 1945 or prior thereto, has continuously occupied and cultivated, whether by himself or his predecessor-in-interest, a tract of or tracts of public agricultural lands subject to disposition not exceeding 24 hectares. Moreover, the application must be accompanied by a map and the technical description of the land occupied, along with affidavits proving his occupancy from two disinterested persons residing in the municipality or barrio where the land may be located. The facts of the case showed that the school's occupation of the contested portion of Lot No. 1991-A-l preceded Solijon's free patent application in 1984 by 34 years. As such, Solijon could not have continuously occupied and cultivated by herself or through her predecessors-in-interests the contested 8,675 square meters of land prior to her application for free patent because there is an existing school on the area. To bolster the school's prior occupation of the subject land, the relocation survey ordered by the RTC showed that no house of Solijon was found within ​​the ​​same ​​area.

In​​ this ​​case,​​ the​​ facts​​ disclosed ​​not​​ only​​ a​​ reservation ​​for ​​a​​ school​​ site but an already existing school building on the contested land. The school building was built on the subject land 34 years prior to Solijon's free patent application and the school had been in operation for 29 years also prior to Solijon's free patent application. Thus, it is impossible for Solijon not to know of the existence of the school prior to her free patent application. Solijon, therefore, could not apply, and should not have been granted free patent over the portion of Lot No. 1991-A-1 that was already occupied by petitioner 34​​years ​​prior​​ to​ ​her ​​free ​​patent​ ​application.


Hence, the Petition for Review on Certiorari under Rule45 is hereby granted and the Decision of the Court of Appeals is hereby reversed and set aside. Consequently, the Decision the Regional Trial Court is hereby annulled, and the complaint is hereby dismissed.

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