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SANTOS, J.:
This petition for review by certiorari seeks the reversal of the decision
of the Court of Appeals * dated February 27, 1973 in CA-G.R. No.
46581-R entitled "Generoso Mendoza, applicants", applicant-appellee
vs. Daniel Gole Cruz, et al., movant, which upheld the registration in
the names of herein private respondents, purchasers of the
landholdings subject matter of an application for registration,
notwithstanding that they were not parties in the original registration
proceedings.
Relevant antecedent facts follow. On May 15, 1964, Generoso
Mendoza, herein petitioner, 1 filed with the Court of First Instance of
Bulacan an application for the registration of two parcels of land, with a
residential house thereon, situated in the Poblacion of Sta. Maria
Bulacan. A notice was issued on December 3, 1964 setting the date of
initial hearing on June 18, 1965. Said notice was duly published,
posted and served but nobody appeared nor filed an answer or
opposition within the period allowed for that purpose. Consequently,
the registration court entered on July 6, 1965, an order of general
default and allowed the applicant to present his evidence ex-parte. 2
From the evidence presented by applicant Generoso Mendoza, herein
petitioner, it was proven that he and his wife, Diega de Leon, were the
owners of the parcels of land subject of the application but the same
were sold by them, during the pendency of the case, to the spouses
Daniel Gole Cruz and Dolores Mendoza, herein private respondents,
subject to the vendors' usufructuary rights. The instrument embodying
such sale was presented as Exhibit 1. On the basis of such evidence,
the registration court rendered a decision on July 21, 1965, ordering
the registration of the two parcels of land in the names of the vendees,
Daniel Gole Cruz and Dolores Mendoza, subject to the usufructuary
rights of the vendors, Generoso Mendoza and Diega de Leon. On the
same day, a copy of said decision was received by Generoso
Mendoza. 3
On November 5, 1965. after the decision had become final, the
applicant-vendor, Generoso Mendoza, filed a motion for the issuance
of the decree. On May 16, 1967, Decree No. 114454 was issued
confirming the title to the land of vendees Daniel Gole Cruz and
Dolores Mendoza, and ordering the registration of the same in their
names, subject to the usufructuary rights of the vendors.
Consequently, Original Certificate of Title No. 0-3787 was issued to
spouses Daniel Gole Cruz and Dolores Mendoza. 4
On April 16, 1968, Generoso Mendoza filed an urgent petition for
reconsideration praying that the decision dated July 21, 1965 and the
decree issued pursuant thereto dated May 16, 1967 be set aside and
that Original Certificate of Title No. 03787 be cancelled, on the ground
that the vendees, the registered owners, had failed to pay the
purchase price of the lands. 5
The registration court considered said urgent petition for
reconsideration as a petition for review of the decree and issued an
order dated September 3, 1968 setting aside its decision, its order for
the issuance of the decree, and the decree of registration, on the
ground that it did not have jurisdiction to order the registration of the
lands in the names of the vendees, who were not parties to the
application for registration. Moreover, said court ordered the
cancellation of O.C.T. No. 03787 and directed the registration of the
lands in the names of spouses, Generoso Mendoza and Diega de
Leon, subject to the rights of vendees, Daniel Gole Cruz and Dolores
Mendoza, stated in the deed of sale. 6
On September 17, 1968, spouses Cruz and Mendoza moved to
reconsider the order, but their motion was denied on October 17, 1968.
On December 19, 1968, said spouses appealed from the order dated
September 3, 1968. On March 11, 1969, Mendoza filed a motion to
dismiss the appeal and on April 10, 1969, the registration court
dismissed the appeal. 7
The spouses Cruz and Mendoza then filed with the Court of Appeals a
special civil action for certiorari, mandamus and prohibition, which was
Atty. Valentin:
Separate Opinions
On May 15, 1964 Generoso Mendoza filed with the Court of First
Instance of Bulacan an application for the registration of two residential
lots, with a total area of 258 square meters, located in the poblacion of
Sta. Maria, Bulacan. He prayed that his title thereto be confirmed and
registered.
On October 15, 1964, or during the pendency of the proceeding,
Generoso Mendoza and his wife Diega de Leon, both seventy-five
years old, conditionally sold to the Cruz spouses, 25 and 26 years old,
the said residential lots for P6,000 as follows: P1,000 upon the signing
of the deed and P1,000 annually until the balance of P5,000 is paid.
Among the conditions of the sale is that as long as the total price had
not been paid, the vendors, or the survivor in case one of them died,
would retain the possession and usufruct of the two lots and the house
thereon. Upon full payment of the price, the vendees or either one of
them, would take care of the vendors, or the survivor, as if the latter
were the parents of the vendees.
At the hearing, the deed of sale was presented in evidence. Judge
Juan de Borja in a decision dated July 21, 1965, ordered the
registration of the two lots in the names of the spouses Daniel Gole
Cruz and Dolores Mendoza "subject to the usufructuary rights of the
spouses Generoso Mendoza and Diega de Leon". Lorenzo C. Valentin,
who notarized the deed of sale, represented the Mendoza spouses in
the land registration proceeding.
On May 16, 1967, a decree of registration was issued. Original
Certificate of Title No. 0-3787 was issued to the Cruz spouses. On April
16, 1968, or within one year from the issuance of the decree,
Generoso Mendoza, through another lawyer, filed a motion to set aside
the decree and title on the ground that the Cruz spouses had not paid
a single centavo of the price and, "hence, they have dirty hands". A
copy of that motion was personally served upon the Cruz spouses.
Without denying that they had not paid the price, they opposed the
motion on the ground that the decision, which had long become final,
could no longer be set aside. Generoso Mendoza, in his reply, argued
that the review of the decree was sought on the ground of fraud and
that the deed of sale had become void for non-payment of the price.
At the hearing of the said motion on May 15, 1968, the old man,
Generoso Mendoza, was placed on the witness stand. He declared
that during the hearing of his application for registration he was in the
courtroom but that he did not testify; that only his lawyer, Atty. Valentin
and the stenographer were present at the hearing, and that he did not
give his consent to the issuance of the title in the name of Daniel Gole
Cruz.
Judge De Borja, in his order of September 3, 1968, treated the motion
as a petition for review under section 38 of Act No. 496. Realizing that
he might have perpetrated an injustice in his decision, when he
ordered the registration of the two lots in the names of the Cruz
spouses, Judge De Borja set aside that decision and the decree of
registration and ordered that the two lots be registered in the name of
Generoso Mendoza, "subject to the rights of the spouses Daniel Gole
Cruz and Dolores Mendoza" under the aforementioned deed of sale.
The Cruz spouses filed a motion for reconsideration wherein they
alleged that they had already paid P3,000 out of the price of P6,000 (p,
42, Record on Appeal). Judge De Borja denied the motion. The Cruz
spouses appealed. Judge De Borja did not give due course to their
appeal. He issued a writ of execution requiring the register of deeds to
cancel the title issued to the Cruz spouses.
However, the Court of Appeals in the action for certiorari, prohibition
and mandamus filed by the Cruz spouses, ordered the lower court to
give due course to their appeal (Cruz vs. De Borja, CA-G. R. No.
43250-R, January 5, 1970).
Later, the Court of Appeals in adjudicating the appeal upheld the
registration of the lots in the names of the Cruz spouses and reversed
Judge De Borja's order for the registration of the lots in the name of
Generoso Mendoza (De Leon vs. Gole Cruz, CA-G. R. No. 46581-R,
February 27, 1973, per Fernandez, J., Concepcion Jr. and
Gancayco, JJ., concurring). Diega de Leon, in substitution for her
deceased husband, Generoso Mendoza, appealed to this Court.
The Court of Appeals assumed that at the hearing of Generoso Miss.
Mendoza's application on July 6, 1965, the Mendoza spouses testified
that they sold the two lots to Daniel Gole Cruz. According to the Cruz
spouses, Daniel Gole Cruz supposedly testified also at the hearing
on July 17, 1965 (pp. 83-84, Record on Appeal).
However, as already noted, Generoso Mendoza at the hearing on May
15, 1968 of his motion to set aside the decree and the title testified that
he was never interrogated, meaning that he did not take the witness
stand at the hearing of his application for registration, and that only his
counsel, Atty. Valentin, and the court stenographer were present at the
hearing.
We have, therefore, the conflicting versions of the parties as to what
transpired at the hearing before the commissioner of Generoso
Mendoza's application for registration and as to whether there has
been any payment of the price for the sale. Generoso Mendoza
himself, by testifying that he never took the witness stand at the
hearing of his application, destroyed the basis for the confirmation of
his alleged title to the land or for its registration in the names of the
Cruz spouses.
In my opinion the ends of justice would be served by setting aside all
the proceedings in the lower court and holding a rehearing. The Cruz
spouses should file a counter-petition in the trial court for the
registration of the two lots in their names on the basis of the deed of
sale. The trial court should ascertain whether the price of the sale had
been paid by the this time. (See Vda. de Catindig vs. Roque, L-25777,
November 26, 1976, 74 SCRA 83).
At this juncture, it may be stressed that in the deed of sale (which was
executed after the land registration proceeding had been commenced),
it was stipulated that, since the two lots were unregistered, the parties
agreed that the deed would be registered in the registry for
unregistered land as provided for in Act No. 3344.
Had the parties intended that the vendees, the Cruz spouses, would be
substituted as applicants in the land registration proceeding, it could
easily have been so stipulated in the deed of sale. But no such
stipulation was made. And no move was made by the vendees to have
themselves substituted as applicants maybe because the sale was
conditional and they had allegedly not paid any part of the price.
Neither did the vendor, Generoso Mendoza, the applicant in the land
registration proceeding, amend his application after the deed had been
signed, by praying that the two lots be registered in the names of the
Cruz spouses. He did not do so because, as already noted, the
stipulation in the deed of sale was that the deed would be registered in
the registry for unregistered land.
Evidently, the registration of the two lots in the names of the Cruz
spouses was the Idea of the notary Valentin who acted as counsel of
Generoso Mendoza in the land registration proceeding. He did not
bother to get the written consent of the septuagenarian Generoso
Mendoza, to the registration of the two lots in the names of the Cruz
spouses.
The Cruz spouses never contradicted nor refuted the declaration in
court of Generoso Mendoza at the hearing of his motion to set aside
the decree and the title that he never testified during the hearing of his
application and that it was only Atty. Valentin who appeared before the
stenographer during that hearing.
Any practising lawyer who has appeared in hearings before a
commissioner deputed by the land registration court to hear
uncontested applications for registration knows that in some instances
the hearings are not conducted in a formal manner; that only the
applicant's lawyer and the stenographer are usually present; that the
deputy clerk of court, as commissioner, or the hearing officer does not
even bother to hear the applicant's testimony, and that the
stenographer and the applicant's lawyer may fabricate the testimonies
that appear in the transcript, which usually indicates that the applicant
and his witnesses testified when in truth they did not testify at all. Such
reprehensible practice should be condemned. Trial courts should
exercise close supervision over the hearings of uncontested land
registration cases so as not to make a farce or mockery of the hearing.
I vote for the reversal of the decision of the Court of Appeals and the
nullification of all the proceedings in the lower court and for the holding
of a new hearing on the application for registration of Generoso
Mendoza and the counter-petition of the, Cruz spouses as aboveindicated.
Separate Opinions
BARREDO, J., concuring:
I concur in the judgment and the main opinion in this case. After all, as
I view the whole controversy here, whether the title of the land in
qustion be in the name of the Mendoza or Cruz spouses is of
secondary importance, since the title issued to the latter would anyway
carry the appropriate annotations protective of the rights of the former
under the deed of sale and vice-versa. Inasmuch as the factuality of
the sale to the Cruz spouses is beyond dispute and it is evidenced by a
Without denying that they had not paid the price, they opposed the
motion on the ground that the decision, which had long become final,
could no longer be set aside. Generoso Mendoza, in his reply, argued
that the review of the decree was sought on the ground of fraud and
that the deed of sale had become void for non-payment of the price.
At the hearing of the said motion on May 15, 1968, the old man,
Generoso Mendoza, was placed on the witness stand. He declared
that during the hearing of his application for registration he was in the
courtroom but that he did not testify; that only his lawyer, Atty. Valentin
and the stenographer were present at the hearing, and that he did not
give his consent to the issuance of the title in the name of Daniel Gole
Cruz.
Judge De Borja, in his order of September 3, 1968, treated the motion
as a petition for review under section 38 of Act No. 496. Realizing that
he might have perpetrated an injustice in his decision, when he
ordered the registration of the two lots in the names of the Cruz
spouses, Judge De Borja set aside that decision and the decree of
registration and ordered that the two lots be registered in the name of
Generoso Mendoza, "subject to the rights of the spouses Daniel Gole
Cruz and Dolores Mendoza" under the aforementioned deed of sale.
The Cruz spouses filed a motion for reconsideration wherein they
alleged that they had already paid P3,000 out of the price of P6,000 (p,
42, Record on Appeal). Judge De Borja denied the motion. The Cruz
spouses appealed. Judge De Borja did not give due course to their
appeal. He issued a writ of execution requiring the register of deeds to
cancel the title issued to the Cruz spouses.
However, the Court of Appeals in the action for certiorari, prohibition
and mandamus filed by the Cruz spouses, ordered the lower court to
give due course to their appeal (Cruz vs. De Borja, CA-G. R. No.
43250-R, January 5, 1970).
Later, the Court of Appeals in adjudicating the appeal upheld the
registration of the lots in the names of the Cruz spouses and reversed
Judge De Borja's order for the registration of the lots in the name of
Generoso Mendoza (De Leon vs. Gole Cruz, CA-G. R. No. 46581-R,
February 27, 1973, per Fernandez, J., Concepcion Jr. and
Gancayco, JJ., concurring). Diega de Leon, in substitution for her
deceased husband, Generoso Mendoza, appealed to this Court.
The Facts
The Issue
FERNAN, J.:
Challenged in this petition for certiorari with prayer for a temporary
restraining order are two [2] orders issued by respondent judge in Land
Registration Case No. Branch 11-N-204 of the then Court of First
Instance of Isabela, Second Branch, entitled, "Application for
Registration of Title, Vicencio Q. Cayaba, Applicant, vs. Flordeliza
Valisno and Honorio D. Valisno, Oppositors," the order dated July 2,
1980, dismissing the opposition filed by petitioners on the ground
of res judicata, and the order dated September 19, 1980, denying
petitioners' motion for reconsideration.
DAY 12
Am. Jur., sec. 66, p. 683.) Also Calder vs. Bull, 3 Dall. [U.S.],
386; 1 Law. ed., 648; Bronson vs. Syverson, 88 Wash., 264;
152 P., 1039.)
It is a fundamental rule that, in construing constitutions,
terms employed therein shall be given the meaning which
had been put upon them, and which they possessed, at the
time of the framing and adoption of the instrument. If a word
has acquired a fixed, technical meaning in legal and
constitutional history, it will be presumed to have been
employed in that sense in a written Constitution.
(McKinney vs. Barker, 180 Ky., 526; 203 S.W., 303; L.R.A.,
1918 E, 581.)
Where words have been long used in a technical sense and
have been judicially construed to have a certain meaning,
and have been adopted by the legislature as having a
certain meaning prior to a particular statute in which they are
used, the rule of construction requires that the words used in
such statute should be construed according to the sense in
which they have been so previously used, although the
sense may vary from strict literal meaning of the words. (II
Sutherland, Statutory Construction, p. 758.)
Therefore, the phrase "public agricultural lands" appearing in section 1
of Article XIII of the Constitution must be construed as including
residential lands, and this is in conformity with a legislative
interpretation given after the adoption of the Constitution. Well known
is the rule that "where the Legislature has revised a statute after a
Constitution has been adopted, such a revision is to be regarded as a
legislative construction that the statute so revised conforms to the
Constitution." (59 C.J., 1102.) Soon after the Constitution was adopted,
the National Assembly revised the Public Land Law and passed
Commonwealth Act No. 141, and sections 58, 59 and 60 thereof permit
the sale of residential lots to Filipino citizens or to associations or
corporations controlled by such citizens, which is equivalent to a
solemn declaration that residential lots are considered as agricultural
lands, for, under the Constitution, only agricultural lands may be
alienated.
It is true that in section 9 of said Commonwealth Act No. 141,
"alienable or disposable public lands" which are the same "public
agriculture lands" under the Constitution, are classified into agricultural,
residential, commercial, industrial and for other puposes. This simply
means that the term "public agricultural lands" has both a broad and a
particular meaning. Under its broad or general meaning, as used in the
Constitution, it embraces all lands that are neither timber nor mineral.
This broad meaning is particularized in section 9 of Commonwealth Act
No. 141 which classifies "public agricultural lands" for purposes of
alienation or disposition, into lands that are stricly agricultural or
actually devoted to cultivation for agricultural puposes; lands that are
residential; commercial; industrial; or lands for other purposes. The fact
that these lands are made alienable or disposable under
Commonwealth Act No. 141, in favor of Filipino citizens, is a conclusive
indication of their character as public agricultural lands under said
statute and under the Constitution.
It must be observed, in this connection that prior to the Constitution,
under section 24 of Public Land Act No. 2874, aliens could acquire
public agricultural lands used for industrial or residential puposes, but
after the Constitution and under section 23 of Commonwealth Act No.
141, the right of aliens to acquire such kind of lands is completely
stricken out, undoubtedly in pursuance of the constitutional limitation.
And, again, prior to the Constitution, under section 57 of Public Land
Act No. 2874, land of the public domain suitable for residence or
industrial purposes could be sold or leased to aliens, but after the
Constitution and under section 60 of Commonwealth Act No. 141, such
land may only be leased, but not sold, to aliens, and the lease granted
shall only be valid while the land is used for the purposes referred to.
The exclusion of sale in the new Act is undoubtedly in pursuance of the
constitutional limitation, and this again is another legislative
construction that the term "public agricultural land" includes land for
residence purposes.
Such legislative interpretation is also in harmony with the interpretation
given by the Executive Department of the Government. Way back in
1939, Secretary of Justice Jose Abad Santos, in answer to a query as
to "whether or not the phrase 'public agricultural lands' in section 1 of
Article XII (now XIII) of the Constitution may be interpreted to include
residential, commercial, and industrial lands for purposes of their
disposition," rendered the following short, sharp and crystal-clear
opinion:
Section 1, Article XII (now XIII) of the Constitution classifies
lands of the public domain in the Philippines into agricultural,
timber and mineral. This is the basic classification adopted
since the enactment of the Act of Congress of July 1, 1902,
known as the Philippine Bill. At the time of the adoption of
the Constitution of the Philippines, the term 'agricultural
public lands' and, therefore, acquired a technical meaning in
Separate Opinion
PERFECTO, J., concurring:
Today, which is the day set for the promulgation of this Court's decision
might be remembered by future generations always with joy, with
gratitude, with pride. The failure of the highest tribunal of the land to do
its duty in this case would have amounted to a national disaster. We
would have refused to share the responsibility of causing it by, wittingly
or unwittingly, allowing ourselves to act as tools in a conspiracy to
sabotage the most important safeguard of the age-long patrimony of
our people, the land which destiny of Providence has set aside to be
the permanent abode of our race for unending generations. We who
have children and grandchildren, and who expect to leave long and
ramifying dendriform lines of descendants, could not bear the thought
of the curse they may fling at us should the day arrive when our people
will be foreigners in their fatherland, because in the crucial moment of
The next case came when the present one submitted to us for decision
on February 3, 1947. Again, we deliberated on the constitutional
question for several days.
On February 24, 1947, the case was submitted for final vote, and the
result was that the constitutional question was decided against
petitioner. The majority was also overwhelming. There were eight of us,
more than two-thirds of the Supreme Court. Only three Justices
dissented.
While the decision was being drafted, somehow, the way the majority
had voted must have leaked out. On July 10, 1947, appellant Krivenko
filed a motion for withdrawal of his appeal, for the evident purpose of
preventing the rendering of the majority decision, which would settle
once and for all the all-important constitutional question as to whether
aliens may acquire urban lots in the Philippines.
Appellant chose to keep silent as to his reason for filing the motion.
The Solicitor General's office gave its conformity to the withdrawal of
the appeal. This surprising assent was given without expressing any
ground at all. Would the Supreme Court permit itself to be cheated of
its decision voted since February 24, 1947?
Discussion immediately ensued as to whether the motion should be
granted or denied, that is, whether this Court should abstain from
promulgating the decision in accordance with the result of the vote
taken on February 24, 1947, as if, after more than six years during
which the question has been submitted for the decision of the highest
tribunal of the land, the same has failed to form a definite opinion.
After a two-day deliberation, the Chief Justice, Mr. Justice Paras, Mr.
Justice Hontiveros, Mr. Justice Padilla and and Mr. Justice Tuason
voted to grant the motion for withdrawal. Those who voted to deny the
motion were Mr. Justice Feria, Mr. Justice Pablo, ourselves, Mr. Justice
Hilado and Mr. Justice Bengzon. The vote thus resulted in a tie, 5-5.
The deadlock resulting from the tie should have the effect of denying
the motion, as provided by section 2 of Rule 56 to the effect that
"where the Court in banc is equally divided in opinion . . . on all
incidental matters, the petition or motion shall be denied." And we
proposed that the rule be complied with, and the denial be
promulgated.
Notwithstanding this, as Mr. Justice Briones was then absent, our
brethren resolved to give him the opportunity of casting his vote on the
question, although we insisted that it was unnecessary. Days later,
when all the members of the Court were already present, a new vote
was taken. Mr. Justice Briones voted for the denial of the motion, and
his vote would have resulted, as must be expected, in 6 votes for the
denial against 5 for granting. But the final result was different. Seven
votes were cast for granting the motion and only four were cast for its
denial.
But then, by providential design or simply by a happy stroke of luck or
fate, on the occasion of the registration by the register of deeds of
Manila of land purchases of two aliens, a heated public polemic flared
up in one section of the press, followed by controversial speeches,
broadcast by radio, and culminating in the issuance on August 12,
1947, of Circular No. 128 of the Secretary of Justice which reads as
follows:
TO ALL REGISTER OF DEEDS:
Paragraph 5 of Circular No. 14, dated August 25, 1945, is hereby
amended so as to read as follows:
5"(a). Instruments by which private real property is
mortgaged in favor of any individual, corporation, or
association for a period not exceeding five years, renewable
for another five years, may be accepted for registration.
(Section 1, Republic Act No. 138.)
"(b). Deeds or documents by which private residential,
commercial, industrial or other classes of urban lands, or any
right, title or interest therein is transferred, assigned or
encumbered to an alien, who is not an enemy national, may
be registered. Such classes of land are not deemed included
within the purview of the prohibition contained in section 5,
Article XIII of the Constitution against the acquisition or
holding of "private agricultural land" by those who are not
qualified to hold or acquire lands of the public domain. This
is in conformity with Opinion No. 284, series of 1941, of the
Secretary of Justice and with the practice consistently
followed for nearly ten years since the Constitution took
effect on November 15, 1935.
"(c). During the effectivity of the Executive Agreement
entered into between the Republic of the Philippines and the
Government of the United States on July 4, 1946, in
pursuance of the so-called Parity Amendment to the
Constitution, citizens of the United States and corporations
or associations owned or controlled by such citizens are
deemed to have the same rights as citizens of the
Philippines and corporations or associations owned or
controlled by such are deemed to have the same rights as
citizens of the Philippines and corporations or associations
owned or controlled by citizens of the Philippines in the
acquisition of all classes of lands in the Philippines, whether
of private ownership or pertaining to the public domain."
ROMAN OZAETA
Secretary of Justice
Paragraph 5 of Circular No. 14 dated August 25, 1945, amended by
the above is as follows:
away enemy attacks in war, said Delegates set the guarantees to ward
off open inroads or devious incursions into the national patrimony as a
means of insuring racial safety and survival.
The resolution does not recite all the reasons why Mr. Justice
Hontiveros did not participate in that last two votings and why it
became unnecessary to wait for him any further to attend the sessions
of the Court and to cast his vote on the question.
When the ideal of one world should have been translated into reality,
those guarantees might not be needed and our people may eliminate
them. But in the meantime, it is our inescapable devoir, as the ultimate
guardians of the Constitution, never to neglect the enforcement of its
provisions whenever our action is called upon in a case, like the one
now before us.
with the assumption that such transfers are obviously barred by the
Organic Law. And yet sales to foreigners of residential lots have taken
place since our Constitution was approved in 1935, and no one
questioned their validity in Court until nine years later in 1945, after the
Japanese authorities had shown distaste for such transfers.
The Court should have, I submit, ample time to discuss this allimportant point, and reflect upon the conflicting politico-economic
philosophies of those who advocate national isolation against
international cooperation, and vice-versa. We could also delve into
several aspects necessarily involved, to wit:
(a) Whether the prohibition in the Constitution operated to curtail the
freedom to dispose of landowners at the time of its adoption; or
whether it merely affected the rights of those who should become
landowners after the approval of the Constitution;7
(b) What consequences would a ruling adverse to aliens have upon
our position and commitments in the United Nations Organization, and
upon our treaty-making negotiations with other nations of the worlds;
and
(c) When in 1941 Krivenko acquired this land he was a Russian citizen.
Under the treaties between the United States and Russia, were
Russian nationals allowed to acquire residential lots in places under
the jurisdiction of the United States? If so, did our Constitution have the
effect of modifying such treaty during the existence of the
Commonwealth Government?
The foregoing view and doubts induced me to vote for dismissal of the
appeal as requested by the parties, and for withholding of any ruling on
the constitutional prohibition. However, I am now ready to cast my
vote. I am convinced that the organic law bans the sales of agricultural
lands as they are popularly understood not including residential,
commercial, industrial or urban lots. This belief is founded on the
reasons ably expounded by Mr. Justice Paras, Mr. Justice Padilla and
Mr. Justice Tuason. I am particularly moved by the consideration that a
restricted interpretation of the prohibition, if erroneous or contrary to
the poeple's desire, may be remedied by legislation amplifying it;
whereas a liberal and wide application, if erroneous, would need the
cumbersome and highly expensive process of a constitutional
amendment.
PADILLA, J., dissenting:
The question submitted for decision is whether a parcel of land of
private ownership suitable or intended for residence may be alienated
or sold to an alien.
Section 5, Article XIII, of the Constitution provides:
Save in cases of hereditary succession, no private
agricultural land shall be transferred or assigned except to
individuals, corporations, or associations qualified to acquire
or hold lands of the public domain in the Philippines.
The majority holds that a parcel of land of privateownership suitable or
intended or used for residence is included in the term "private
agricultural land" and comes within the prohibition of the Constitution.
In support of the opinion that lands of private ownership suitable for
residence are included in the term "private agricultural land" and
cannot be alienated or sold to aliens, the majority invokes the decision
of this Court in Mapa vs. Insular Government (10 Phil., 175), which
holds that urban lands of the public domain are included in the term
"public agricultural land." But the opinion of the majority overlooks the
fact that the inclusion by this Court of public lands suitable for
residence in the term "public agricultural land" was due to the
classification made by the Congress of the United States in the Act of 1
July 1902, commonly known as the Philippine Bill. In said Act, lands of
the public domain were classified into agricultural, timber and mineral.
The only alienable or disposable lands of the public domain were those
belonging to the first class. Hence a parcel of land of the public domain
suitable for residence, which was neither timber nor mineral, could not
be disposed of or alienated unless classified as public agricultural land.
The susceptibility of a residential lot of the public domain of being
cultivated is not the real reason for the inclusion of such lot in the
classification of public agricultural land, for there are lands, such as
foreshore lands, which would hardly be susceptible of cultivation
(Ibaez de Aldecoa vs. Insular Government, 13 Phil., 159, 167-168),
and yet the same come under the classification of public agricultural
land. The fact, therefore, that parcels of land of the public domain
suitable for residence are included in the classification of public
agricultural land, is not a safe guide or index of what the framers of the
Constitution intended to mean by the term "private agricultural land." It
is contrary to the rules of statutory construction to attach technical
meaning to terms or phrases that have a common or ordinary meaning
as understood by he average citizen.
is the sense fixed upon the words in legal and constitutional history
where they have been employed for the protection of popular rights." (1
Cooley's Constitutional Limitations, 8th ed., 132-133.) Viewed from this
angle, "agricultural land" does not possess the quality of a technical
term. Even as applied to public lands, and even among lawyers and
judges, how many are familiar with the decisions of this Court which
hold that public swamps and public lands more appropriate for
buildings and other structures than for agriculture are agricultural
lands? The same can be truthfully said of members of the
Constitutional Assembly.
The speeches of delegates Montilla and Ledesma cannot serve as a
means of interpretation. The sentiments expressed in those speeches,
like the first drafts of section 5 of Article XIII, may have reflected the
sentiments of the Convention in the first stages of the deliberation or
down to its close. If they were, those sentiments were relaxed and not
given full sway for reasons on which we need not speculate. Speeches
in support of a project can be a valuable criterion for judging the
intention of a law or constitution only if no changes were afterward
affected. If anything, the change in section 5 of Article XIII wrought in
the face of a strong advocacy for complete and absolute
nationalization of all lands, without exception, offers itself as the best
proof that to the framers of the Constitution the change was not
"merely one of words" but represented something real and substantial.
Firm and resolute convictions are expressed in a document in strong,
unequivocal and unqualified language. This is specially true when the
instrument is a constitution, "the most solemn and deliberate of human
writings, always carefully drawn, and calculated for permanent
endurance."
Footnotes
1
Osorio y Gallardo.
BIDIN, J.:
Can a foreign national apply for registration of title over a parcel of land
which he acquired by purchase while still a citizen of the Philippines,
from a vendor who has complied with the requirements for registration
under the Public Land Act (CA 141)?
The Republic would have us rule on the negative and asks this Court
to nullify the decision of the appellate court which affirmed the
judgment of the court a quo in granting the application of respondent
spouses for registration over the lots in question.
On June 17, 1978, respondent spouses bought Lots 347 and 348,
Cad. s38-D, as their residence with a total area of 91.77 sq. m.
situated in San Pablo City, from one Cristeta Dazo Belen (Rollo, p. 41).
At the time of the purchase, respondent spouses where then naturalborn Filipino citizens.
On February 5, 1987, the spouses filed an application for registration
of title of the two (2) parcels of land before the Regional Trial Court of
San Pablo City, Branch XXXI. This time, however, they were no longer
Filipino citizens and have opted to embrace Canadian citizenship
through naturalization.
An opposition was filed by the Republic and after the parties have
presented their respective evidence, the court a quo rendered a
decision confirming private respondents' title to the lots in question, the
dispositive portion of which reads as follows:
WHEREFORE, in view of the foregoing, this Court
hereby approves the said application and confirms
the title and possession of herein applicants over
Lots 347 and 348, Ap-04-003755 in the names of
spouses Mario B. Lapia and Flor de Vega, all of
legal age, Filipino citizens by birth but now
Canadian citizens by naturalization and residing at
14 A. Mabini Street, San Pablo City and/or 2011170-124 Street, Edmonton, Alberta T5M-OK9,
Canada.
Once this Decision becomes final, let the
corresponding decree of registration be issued. In
the certificate of title to be issued, there shall be
annotated an easement of .265 meters road rightof-way.
SO ORDERED. (Rollo, p. 25)
On appeal, respondent court affirmed the decision of the trial court
based on the following ratiocination:
In the present case, it is undisputed that both
applicants were still Filipino citizens when they
bought the land in controversy from its former
owner. For this reason, the prohibition against the
acquisition of private lands by aliens could not
apply. In justice and equity, they are the rightful
owners of the subject realty considering also that
they had paid for it quite a large sum of money.
Their purpose in initiating the instant action is
merely to confirm their title over the land, for, as
has been passed upon, they had been the owners
of the same since 1978. It ought to be pointed out
that registration is not a mode of acquiring
ownership. The Torrens System was not
established as a means for the acquisition of title
to private land. It is intended merely to confirm and
register the title which one may already have
(Municipality of Victorias vs. Court of Appeals,
G.R. No. L-31189, March 31, 1987). With
particular reference to the main issue at bar, the
High Court has ruled that title and ownership over
lands within the meaning and for the purposes of
the constitutional prohibition dates back to the time
of their purchase, not later. The fact that the
applicants-appellees are not Filipino citizens now
cannot be taken against them for they were not
disqualified from acquiring the land in question
(Bollozos vs. Yu Tieng Su, G.R. No. L-29442,
November 11, 1987). (Rollo, pp. 27-28)
Expectedly, respondent court's disposition did not merit petitioner's
approval, hence this present recourse, which was belatedly filed.
Ordinarily, this petition would have been denied outright for having
been filed out of time had it not been for the constitutional issue
presented therein.
As petitioner itself argues, Section 48 of the Public Land Act (CA 141)
reads:
Sec. 48. The following-described citizens of the
Philippines, occupying lands of the public domain
or claiming interest therein, but whose titles have
not been perfected or completed, may apply to the
Court of First Instance (now Regional Trial Court)
of the province where the land is located for
confirmation of their claims and the issuance of a
certificate of title therefor under the Land
Registration Act, to wit:
xxx xxx xxx
(b) Those who by themselves or through their
predecessors-in-interest have been in open,
continuous, exclusive, and notorious possession
and occupation of agricultural lands of the public
domain, under a bona fide claim of acquisition or
ownership, for at least thirty years immediately
preceding the filing of the application for
confirmation of title except when prevented by
wars or force majeure. These shall be conclusively
presumed to have performed all the conditions
essential to a Government grant and shall be
entitled to a certificate of title under the provisions
of this chapter. (Emphasis supplied)
As amended by PD 1073:
Sec. 4. The provisions of Section 48(b) and
Section 48(c), Chapter VIII, of the Public Land Act
are hereby amended in the sense that these
provisions shall apply only to alienable and
disposable lands of the public domain which have
been in open, continuous, exclusive and notorious
possession and occupation by the applicant
himself or thru his predecessor-in-interest, under
a bona fide claim of acquisition or ownership,
since June 12, 1945.
It must be noted that with respect to possession and occupation of the
alienable and disposable lands of the public domain, the law employs
the terms "by themselves", "the applicant himself or through his
predecessor-in-interest". Thus, it matters not whether the
vendee/applicant has been in possession of the subject property for
only a day so long as the period and/or legal requirements for
confirmation of title has been complied with by his predecessor-ininterest, the said period is tacked to his possession. In the case at bar,
respondents' predecessors-in-interest have been in open, continuous,
exclusive and notorious possession of the disputed land not only since
June 12, 1945, but even as early as 1937. Petitioner does not deny
this except that respondent spouses, in its perception, were in
possession of the land sought to be registered only in 1978 and
therefore short of the required length of time. As aforesaid, the
disputed parcels of land were acquired by private respondents through
their predecessors-in-interest, who, in turn, have been in open and
continued possession thereof since 1937. Private respondents stepped
into the shoes of their predecessors-in-interest and by virtue thereof,
acquired all the legal rights necessary to confirm what could otherwise
be deemed as an imperfect title.
At this juncture, petitioner's reliance in Republic v. Villanueva (114
SCRA 875 [1982]) deserves scant consideration. There, it was held
that before the issuance of the certificate of title, the occupant is not in
the juridical sense the true owner of the land since it still pertains to the
State.
Suffice it to state that the ruling in Republic v. Villanueva (supra), has
already been abandoned in the 1986 case of Director of Lands v.
Intermediate Appellate Court (146 SCRA 509; and reiterated in Director
of Lands v. Iglesia ni Cristo, 200 SCRA 606 [1991]) where the Court,
through then Associate Justice, now Chief Justice Narvasa, declared
that:
(The weight of authority is) that open, exclusive
and undisputed possession of alienable public
land for the period prescribed by law creates the
legal fiction whereby the land, upon completion of
the requisite period ipso jure and without the need
The Public Land Act requires that the applicant must prove that (a) the
land is alienable public land and (b) his possession, in the concept
above stated, must be either since time immemorial or for the period
prescribed in the Public Land Act (Director of Lands v. Buyco, 216
SCRA 78 [1992]). When the conditions set by law are complied with,
the possessor of the land, by operation of law, acquires a right to a
grant, a government grant, without the necessity of a certificate of title
being issued (National Power Corporation v. CA, supra). As such, the
land ceases to be a part of the public domain and goes beyond the
authority of the Director of Lands to dispose of.
In other words, the Torrens system was not established as a means for
the acquisition of title to private land (Municipality of Victorias v. CA,
149 SCRA 32 [1987]). It merely confirms, but does not confer
ownership. As could be gleaned from the evidence adduced, private
respondents were able to establish the nature of possession of their
predecessors-in-interest. Evidence was offered to prove that their
predecessors-in-interest had paid taxes on the subject land and
introduced improvements thereon (Exhibits "F" to "F9"). A certified true
copy of the affidavit executed by Cristeta Dazo and her sister Simplicia
was also formally offered to prove that the subject parcels of land were
inherited by vendor Cristeta Dazo from her father Pedro Dazo with the
conformity of her only sister Simplicia (Exhibit "G"). Likewise, a report
from the Bureau of Lands was presented in evidence together with a
letter from the Bureau of Forest Development, to prove that the
questioned lots were part of the alienable and disposable zone of the
government and that no forestry interest was affected (CA GR No.
28953, Records, p. 33).
In the main, petitioner seeks to defeat respondents' application for
registration of title on the ground of foreign nationality. Accordingly, the
ruling in Director of Lands v. Buyco (supra) supports petitioner's thesis.
We disagree.
In Buyco, the applicants therein were likewise foreign nationals but
were natural-born Filipino citizens at the time of their supposed
acquisition of the property. But this is where the similarity ends. The
applicants in Buyco sought to register a large tract of land under the
provisions of the Land Registration Act, and in the alternative, under
the provisions of the Public Land Act. The land registration court
decided in favor of the applicants and was affirmed by the appellate
court on appeal. The Director of Lands brought the matter before us on
review and we reversed.
This Court, speaking through Justice Davide, Jr.,
stated:
As could be gleaned from the evidence adduced,
the private respondents do not rely on fee simple
ownership based on a Spanish grant or
possessory information title under Section 19 of
the Land Registration Act; the private respondents
did not present any proof that they or their
predecessors-in-interest derived title from an old
Spanish grant such as (a) the "titulo real" or royal
grant (b) the "concession especial" or especial
grant; (c) the "composicion con el estado" title or
adjustment title; (d) the "titulo de compra" or title
by purchase; and (e) the "informacion posesoria"
or possessory information title, which could
become a "titulo gratuito" or a gratuitous title
(Director of Forestry v. Muoz, 23 SCRA 1183
[1968]). The primary basis of their claim is
possession, by themselves and their
predecessors-in-interest, since time immemorial.
If indeed private respondents and their
predecessors have been in possession since time
immemorial, the rulings of both courts could be
upheld for, as this Court stated in Oh Cho v.
Director of Lands (75 Phil. 890 [1946]):
. . . All lands that were not
acquired from the
Government, either by
purchase or by grant, belong
to the public domain. An
exception to the rule would be
any land that should have
been in the possession of an
occupant and of his
predecessors in interest since
time immemorial, for such
possession would justify the
presumption that the land had
never been part of the public
domain or that if had been a
private property even before
But what should not be missed in the disposition of this case is the fact
that the Constitution itself allows private respondents to register the
contested parcels of land in their favor. Sections 7 and 8 of Article XII
of the Constitution contain the following pertinent provisions, to wit:
Separate Opinions
# Separate Opinions
There is no question that the property is private land and thus subject
to registration by qualified persons. It was really needless to elaborate
on Buyco, which is clearly inapplicable here. We can agree that the
ruling case is Director of Lands v. Intermediate Appellate Court, which
is not challenged in this petition.
But I think the ponencia misses the point. The finding that the
respondent spouses were natural-born Filpinos at the time they
acquired the land does not settle the question posed.
The important point is that the respondent spouses are no longer
citizens of the Philippines but naturalized Canadians. It does not follow
that because they were citizens of the Philippines when they acquired
the land, they can register it in their names now even if they are no
longer Filipinos.
Section 7 of Article XII of the Constitution is irrelevant because it is not
disputed that the respondent spouses were qualified to acquire the
land in question when it was transferred to them.
Section 8 of the same article is not applicable either because it speaks
of a transfer of private land to a former natural-born citizen of the
Philippines after he became a foreigner.
Thus it states:
Sec. 8. Notwithstanding the provisions of Section
7 of this Article, a natural-born citizen of the
Philippines who has lost his Philippine citizenship
may be a transferee of private lands, subject to
limitations provided by law.
Even if it be assumed that the provision is applicable, it does not
appear that the private respondents have observed "the limitations
provided by law."
The ponencia finds that all the requisites for the registration of the land
in the private respondents' name have been complied with. I do not
believe so for there is no showing that B.P. 185 has also been
enforced.
The view has been expressed that we should confine ourselves to the
requirements for registration under the Public Land Act. I respectfully
submit that the requirements in B.P. 185 have been read into the Act
and should also be applied.
Strict compliance is necessary because of the special privilege granted
to former Filipinos who have become foreigners by their own choice. If
we can be so strict with our own citizens, I see no reason why we
should be less so with those who have renounced our country.
Feliciano, J.: concurring
I agree with the great bulk of the majority opinion written by Mr. Justice
Bidin and the result reached therein.
This separate statement is concerned only with the last two (2)
paragraphs, just before the dispositive portion, of the majority opinion.
In my view, it should be stressed that B.P. Blg. 185 which took effect on
16 March 1982, does not purport to cover the set of facts before the
Court in this case: i.e., the respondent spouses became transferees
(on 17 June 1978) of the land here involved while they were natural-
CASTRO, J.:
Justina Santos y Canon Faustino and her sister Lorenzo were the
owners in common of a piece of land in Manila. This parcel, with an
area of 2,582.30 square meters, is located on Rizal Avenue and opens
into Florentino Torres street at the back and Katubusan street on one
side. In it are two residential houses with entrance on Florentino Torres
street and the Hen Wah Restaurant with entrance on Rizal Avenue.
The sisters lived in one of the houses, while Wong Heng, a Chinese,
lived with his family in the restaurant. Wong had been a long-time
lessee of a portion of the property, paying a monthly rental of P2,620.
On September 22, 1957 Justina Santos became the owner of the
entire property as her sister died with no other heir. Then already well
advanced in years, being at the time 90 years old, blind, crippled and
an invalid, she was left with no other relative to live with. Her only
companions in the house were her 17 dogs and 8 maids. Her
otherwise dreary existence was brightened now and then by the visits
of Wong's four children who had become the joy of her life. Wong
himself was the trusted man to whom she delivered various amounts
for safekeeping, including rentals from her property at the corner of
Ongpin and Salazar streets and the rentals which Wong himself paid
as lessee of a part of the Rizal Avenue property. Wong also took care
of the payment; in her behalf, of taxes, lawyers' fees, funeral expenses,
masses, salaries of maids and security guard, and her household
expenses.
"In grateful acknowledgment of the personal services of the lessee to
her," Justina Santos executed on November 15, 1957 a contract of
lease (Plff Exh. 3) in favor of Wong, covering the portion then already
leased to him and another portion fronting Florentino Torres street. The
lease was for 50 years, although the lessee was given the right to
withdraw at any time from the agreement; the monthly rental was
P3,120. The contract covered an area of 1,124 square meters. Ten
days later (November 25), the contract was amended (Plff Exh. 4) so
as to make it cover the entire property, including the portion on which
the house of Justina Santos stood, at an additional monthly rental of
P360. For his part Wong undertook to pay, out of the rental due from
him, an amount not exceeding P1,000 a month for the food of her dogs
and the salaries of her maids.
On December 21 she executed another contract (Plff Exh. 7) giving
Wong the option to buy the leased premises for P120,000, payable
within ten years at a monthly installment of P1,000. The option, written
in Tagalog, imposed on him the obligation to pay for the food of the
dogs and the salaries of the maids in her household, the charge not to
exceed P1,800 a month. The option was conditioned on his obtaining
Philippine citizenship, a petition for which was then pending in the
Court of First Instance of Rizal. It appears, however, that this
application for naturalization was withdrawn when it was discovered
that he was not a resident of Rizal. On October 28, 1958 she filed a
petition to adopt him and his children on the erroneous belief that
adoption would confer on them Philippine citizenship. The error was
discovered and the proceedings were abandoned.
On November 18, 1958 she executed two other contracts, one (Plff
Exh. 5) extending the term of the lease to 99 years, and another (Plff
Exh. 6) fixing the term of the option of 50 years. Both contracts are
written in Tagalog.
In two wills executed on August 24 and 29, 1959 (Def Exhs. 285 &
279), she bade her legatees to respect the contracts she had entered
into with Wong, but in a codicil (Plff Exh. 17) of a later date (November
4, 1959) she appears to have a change of heart. Claiming that the
various contracts were made by her because of machinations and
inducements practiced by him, she now directed her executor to
secure the annulment of the contracts.
On November 18 the present action was filed in the Court of First
Instance of Manila. The complaint alleged that the contracts were
obtained by Wong "through fraud, misrepresentation, inequitable
conduct, undue influence and abuse of confidence and trust of and
(by) taking advantage of the helplessness of the plaintiff and were
made to circumvent the constitutional provision prohibiting aliens from
acquiring lands in the Philippines and also of the Philippine
Naturalization Laws." The court was asked to direct the Register of
Deeds of Manila to cancel the registration of the contracts and to order
Wong to pay Justina Santos the additional rent of P3,120 a month from
November 15, 1957 on the allegation that the reasonable rental of the
leased premises was P6,240 a month.
In his answer, Wong admitted that he enjoyed her trust and confidence
as proof of which he volunteered the information that, in addition to the
sum of P3,000 which he said she had delivered to him for safekeeping,
another sum of P22,000 had been deposited in a joint account which
he had with one of her maids. But he denied having taken advantage
of her trust in order to secure the execution of the contracts in
question. As counterclaim he sought the recovery of P9,210.49 which
he said she owed him for advances.
Wong's admission of the receipt of P22,000 and P3,000 was the cue
for the filing of an amended complaint. Thus on June 9, 1960, aside
from the nullity of the contracts, the collection of various amounts
allegedly delivered on different occasions was sought. These amounts
and the dates of their delivery are P33,724.27 (Nov. 4, 1957);
P7,344.42 (Dec. 1, 1957); P10,000 (Dec. 6, 1957); P22,000 and
P3,000 (as admitted in his answer). An accounting of the rentals from
the Ongpin and Rizal Avenue properties was also demanded.
In the meantime as a result of a petition for guardianship filed in the
Juvenile and Domestic Relations Court, the Security Bank & Trust Co.
was appointed guardian of the properties of Justina Santos, while
Ephraim G. Gochangco was appointed guardian of her person.
In his answer, Wong insisted that the various contracts were freely and
voluntarily entered into by the parties. He likewise disclaimed
knowledge of the sum of P33,724.27, admitted receipt of P7,344.42
and P10,000, but contended that these amounts had been spent in
accordance with the instructions of Justina Santos; he expressed
readiness to comply with any order that the court might make with
respect to the sums of P22,000 in the bank and P3,000 in his
possession.
The case was heard, after which the lower court rendered judgment as
follows:
[A]ll the documents mentioned in the first cause of action,
with the exception of the first which is the lease contract of
15 November 1957, are declared null and void; Wong Heng
is condemned to pay unto plaintiff thru guardian of her
property the sum of P55,554.25 with legal interest from the
date of the filing of the amended complaint; he is also
ordered to pay the sum of P3,120.00 for every month of his
occupation as lessee under the document of lease herein
sustained, from 15 November 1959, and the moneys he has
consigned since then shall be imputed to that; costs against
Wong Heng.
From this judgment both parties appealed directly to this Court. After
the case was submitted for decision, both parties died, Wong Heng on
October 21, 1962 and Justina Santos on December 28, 1964. Wong
was substituted by his wife, Lui She, the other defendant in this case,
while Justina Santos was substituted by the Philippine Banking
Corporation.
Justina Santos maintained now reiterated by the Philippine Banking
Corporation that the lease contract (Plff Exh. 3) should have been
annulled along with the four other contracts (Plff Exhs. 4-7) because it
lacks mutuality; because it included a portion which, at the time, was
in custodia legis; because the contract was obtained in violation of the
fiduciary relations of the parties; because her consent was obtained
through undue influence, fraud and misrepresentation; and because
Paragraph 5 of the lease contract states that "The lessee may at any
time withdraw from this agreement." It is claimed that this stipulation
offends article 1308 of the Civil Code which provides that "the contract
must bind both contracting parties; its validity or compliance cannot be
left to the will of one of them."
Q But, she did not follow your advice, and she went with the
contract just the same?
A She agreed first . . .
Q Agreed what?
A Agreed with my objectives that it is really onerous and that
I was really right, but after that, I was called again by her and
she told me to follow the wishes of Mr. Wong Heng.
xxx
xxx
xxx
xxx
xxx
Separate Opinions
definite ruling was made by this Court until September of 1953, when
on the 29th of said month, Rellosa v. Gaw Chee Hun,2 Bautista v. Uy
Isabelo,3 Talento v. Makiki,4 Caoile v. Chiao Peng5 were decided.
Of the four decisions in September, 1953, the most extensive
discussion of the question is found in Rellosa v. Gaw Chee Hun, the
opinion being penned by retired Justice Bautista Angelo with the
concurrence only of one Justice, Justice Labrador, also retired. Former
Chief Justice Paras as well as the former Justices Tuason and
Montemayor concurred in the result. The necessary sixth vote for a
decision was given by the then Justice Bengzon, who had a twoparagraph concurring opinion disagreeing with the main opinion as to
the force to be accorded to the two cases,6 therein cited. There were
two dissenting opinions by former Justices Pablo and Alex Reyes. The
doctrine as announced in the Rellosa case is that while the sale by a
Filipino-vendor to an alien-vendee of a residential or a commercial lot
is null and void as held in the Krivenko case, still the Filipino-vendor
has no right to recover under a civil law doctrine, the parties being in
pari delicto. The only remedy to prevent this continuing violation of the
Constitution which the decision impliedly sanctions by allowing the
alien vendees to retain the lots in question is either escheat or
reversion. Thus: "By following either of these remedies, or by
approving an implementary law as above suggested, we can enforce
the fundamental policy of our Constitution regarding our natural
resources without doing violence to the principle of pari delicto."7
Were the parties really in pari delicto? Had the sale by and between
Filipino-vendor and alien-vendee occurred after the decision in
the Krivenko case, then the above view would be correct that both
Filipino-vendor and alien-vendee could not be considered as innocent
parties within the contemplation of the law. Both of them should be
held equally guilty of evasion of the Constitution.
Since, however, the sales in question took place prior to
the Krivenko decision, at a time when the assumption could be
honestly entertained that there was no constitutional prohibition against
the sale of commercial or residential lots by Filipino-vendor to alienvendee, in the absence of a definite decision by the Supreme Court, it
would not be doing violence to reason to free them from the imputation
of evading the Constitution. For evidently evasion implies at the very
least knowledge of what is being evaded. The new Civil Code
expressly provides: "Mistakes upon a doubtful or difficult question of
law may be the basis of good faith."8
According to the Rellosa opinion, both parties are equally guilty of
evasion of the Constitution, based on the broader principle that "both
parties are presumed to know the law." This statement that the sales
entered into prior to the Krivenko decision were at that time already
vitiated by a guilty knowledge of the parties may be too extreme a
view. It appears to ignore a postulate of a constitutional system,
wherein the words of the Constitution acquire meaning through
Supreme Court adjudication.1awphl.nt
Reference may be made by way of analogy to a decision adjudging a
statute void. Under the orthodox theory of constitutional law, the act
having been found unconstitutional was not a law, conferred no rights,
imposed no duty, afforded no protection.9 As pointed out by former
Chief Justice Hughes though in Chicot County Drainage District v.
Baxter State Bank:10 "It is quite clear, however, that such broad
statements as to the effect of a determination of unconstitutionality
must be taken with qualifications. The actual existence of a statute,
prior to such a determination, is an operative fact and may have
consequences which cannot justly be ignored. The past cannot always
be erased by a new judicial declaration. The effect of subsequent ruling
as to invalidity may have to be considered in various aspects, with
respect to particular relations, individual and corporate, and particular
conduct, private and official. Questions of rights claimed to have
become vested, of status, of prior determinations deemed to have
finality and acted upon accordingly, of public policy in the light of the
nature both of the statute and of its previous application, demand
examination."
After the Krivenko decision, there is no doubt that continued
possession by alien-vendee of property acquired before its
promulgation is violative of the Constitution. It is as if an act granting
aliens the right to acquire residential and commercial lots were
annulled by the Supreme Court as contrary to the provision of the
Constitution prohibiting aliens from acquiring private agricultural land.
The question then as now, therefore, was and is how to divest the alien
of such property rights on terms equitable to both parties. That
question should be justly resolved in accordance with the mandates of
the Constitution not by a wholesale condemnation of both parties for
entering into a contract at a time when there was no ban as yet arising
from the Krivenko decision, which could not have been anticipated.
Unfortunately, under the Rellosa case, it was assumed that the parties,
being in pari delicto, would be left in the situation in which they were,
neither being in a position to seek judicial redress.
10
11
12
14
15
16
18
19
20
23
25
26
27
Footnotes
1
Id. at 876.
55 Phil. 99 (1930).
30
31
93 Phil. 827.
93 Phil. 843.
93 Phil. 855.
At p. 835.
10
11