Case Digest: Fuguracion V. Libi, GR No.

155688 (2007) Facts: In 1948, the Cebu City government expropriated a parcel of land of Galileo Figuracion to be turned into a portion of N. Escario Street. In 1989, the Sangguniang Panglungsod approved the reconveyance of the unused portion of the lot to the successor-in-interest, Isagani Figuracion. A new TCT was issued to Isagani Figuracion. The Spouses Libi were owners of an adjacent lot and has been using the said lot as access to the road. They refused to vacate the lot despite demand. The lower court ordered that the Spouses Libi remove the fence they have erected on the said lot. The Spouses Libi filed for easement, then amended their complaint and shifted cause of action to one for the annulment of sale to Figuracion with damages.

Issue: WON the action by the Spouses Libi to annul the reconveyance of the lot to Figuracion is proper.

Ruling: The Court ruled that the Spouses Libi were not the real-parties-in-interest to annul the TCT of Figuracion, since they are not themselves claiming title to or possession of the lot. Libi alleged that they bought the adjacent lot in the belief that they had an outlet to N. Escario Street through the lot owned by the Cebu City government. Clearly, they have no interest in the title of the lot. Reversion is a proceeding by which the State seeks the return of lands of the public domain through the cancellation of private title erroneously or fraudulently issued over it. The action should be in the name of the State. Thus, Spouses Libi cannot be considered the proper parties therein. The Spouses sole interest is the use of the property as access to N. Escaro Street. Such interest is tangential to any issue regarding ownership or possession of the property. Hence, it is not sufficient to vest in them the legal standing to sue for reversion of the property. They should have maintained the action for easement. The wisdom and intent of the City Council to recognize the right of Isagani Figuracion to repurchase the lot cannot be gainsaid. The City of Cebu has the power and authority to sell the expropriated property that is no longer needed for that purpose for which it was intended. The Spouses Libi not only lacked the legal personality but also have no legal basis to challenge the reconveyance.