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Trustees
Section 1. Where trustee appointed. A trustee necessary to
carry into effect the provisions of a will on written
instrument shall be appointed by the Court of First Instance in
which the will was allowed, if it be a will allowed in the
Philippines, otherwise by the Court of First Instance of the
province in which the property, or some portion thereof,
affected by the trust is situated.
Section 2. Appointment and powers of trustees under will.
Executor of former trustee need not administer trust. If a
testator has omitted in his will to appoint a trustee in the
Philippines, and if such appointment is necessary to carry into
effect the provisions of the will, the proper Court of First
Instance may, after notice to all persons interested, appoint a
trustee who shall have the same rights, powers, and duties, and
in whom the estate shall vest, as if he had been appointed by
the testator. No person succeeding to a trust as executor or
administrator of a former trustee shall be required to accept
such trust.
Section 3. Appointment and powers of new trustee under written
instrument. When a trustee under a written instrument
declines, resigns, dies or removed before the objects of the
trust are accomplished, and no adequate provision is made in
such instrument for supplying the vacancy, the proper Court of
First Instance may, after due notice to all persons interested,
appoint a new trustee to act alone or jointly with the others,
as the case may be. Such new trustee shall have and exercise
the same powers, right, and duties as if he had been originally
appointed, and the trust estate shall vest in him in like
manner as it had vested or would have vested, in the trustee in
whose place he is substituted and the court may order such
conveyance to be made by the former trustee or his
representatives, or by the other remaining trustees, as may be
necessary or proper to vest the trust estate in the new
trustee, either or jointly with the others.
Section 4. Proceedings where trustee appointed abroad. When
land in the Philippines is held in trust for persons resident
here by a trustee who derives his authority from without the
Philippines, such trustee shall, on petition filed in the Court
of First Instance of the province where the land is situated,
and after due notice to all persons interested, be ordered to
apply to the court for appointment as trustee; and upon his
neglect or refusal to comply with such order, the court shall
declare such trust vacant, and shall appoint a new trustee in
trust he will
pay over and
his hands, or
the person or
adopted.
CHAPTER 2
EXPRESS TRUSTS
Art. 1443. No express trusts concerning an immovable or any
interest therein may be proved by parol evidence.
Art. 1444. No particular words are required for the creation of
an express trust, it being sufficient that a trust is clearly
intended.
Art. 1445. No trust shall fail because the trustee appointed
declines the designation, unless the contrary should appear in
the instrument constituting the trust.
Art. 1446. Acceptance by the beneficiary is necessary.
Nevertheless, if the trust imposes no onerous condition upon
the beneficiary, his acceptance shall be presumed, if there is
no
proof
to
the
contrary.
CHAPTER 3
IMPLIED TRUSTS
Art. 1447. The enumeration of the following cases of implied
trust does not exclude others established by the general law of
trust, but the limitation laid down in Article 1442 shall be
applicable.
Art. 1448. There is an implied trust when property is sold, and
the legal estate is granted to one party but the price is paid
by another for the purpose of having the beneficial interest of
the property. The former is the trustee, while the latter is
the beneficiary. However, if the person to whom the title is
conveyed is a child, legitimate or illegitimate, of the one
paying the price of the sale, no trust is implied by law, it
being disputably presumed that there is a gift in favor of the
child.
Art. 1449. There is also an implied trust when a donation is
made to a person but it appears that although the legal estate
is transmitted to the donee, he nevertheless is either to have
no beneficial interest or only a part thereof.
EMILIA O'LACO and HUCO LUNA v. VALENTIN CO CHO CHIT, O LAY KIA
and CA
G.R. No. 58010 | March 31, 1993 | BELLOSILLO
FACTS:
1. Emilia O'Laco and respondent O Lay Kia are half-sisters
2. May 31, 1943 Philippine Sugar Estate Development Company,
Ltd., sold a parcel of land1 with the Deed of Absolute Sale
naming O'Laco as vendee; thereafter, Transfer Certificate of
Title No. 66456 was issued in her name.
3. May 17, 1960 spouses Valentin Co Cho Chit and O Lay Kia
(spouses Valentin) learned from the newspapers that O'Laco
sold the same property to the Roman Catholic Archbishop of
Manila for P230,000.00, with assumption of the real estate
mortgage constituted thereon.
4. June 22, 1960 spouses Valentin sued spouses Emilia O'Laco
and Hugo Luna (spouses Hugo) to recover the purchase price
of the land before CFI of Rizal.
a. Spouses Valentin: Emilia O'Laco knew that they were
the real vendees of the Oroquieta property sold in
1943 by Philippine Sugar Estate Development Company,
Ltd., and that the legal title thereto was merely
placed in her name.
i. Emilia O'Laco breached the trust when she sold
the land to the Roman Catholic Archbishop of
Manila.
ii. Asked the trial court to garnish all the
amounts still due and payable to spouses Hugo
arising from the sale, which was granted on 30
June 1960.
b. Spouses Hugo:deny the existence of any form of trust
relation.
i. O'Laco actually bought the property with her
own money
ii. she left the Deed of Absolute Sale and the
corresponding title with spouses Valentin
merely for safekeeping;
iii. when OLaco asked for the return of the
documents evidencing her ownership, spouses
Valentin told her that these were misplaced or
lost; hence, she filed a petition for issuance
of a new title. On August 18, 1944 the CFI
Manila granted her petition.
5. CFI Rizal, September 20, 1976 finding no trust relation
between the parties, dismissed the complaint together with
the counterclaim.
6. Petitioners and respondents appealed.
7. CA, April 9, 1981 (ipapanganak na si Azy nito, hehehe)
reversed TC decision. MR denied. Appealed to SC.
1 Lot No. 5, Block No. 10, Plan Psu-10038, situated at Oroquieta St., Sta. Cruz, Manila
HELD: YES!!!
RATIO:
1. Procedural -- Contention no. 1
a. The complaint must show that there were efforts
towards compromise, pursuant to Art. 222 of the New
Civil Code2, or a motion to dismiss could have been
filed under Sec. 1, par. (j), Rule 16, of the Rules
of Court.
b. An attempt to compromise as well as the inability to
succeed is a condition precedent to the filing of a
suit between members of the same family.
c. But plaintiff may be allowed to amend his complaint
to correct the defect if the amendment does not
actually confer jurisdiction on the court in which
the action is filed, i.e., if the cause of action was
originally within that court's jurisdiction.
d. Spouses Valentin did not formally amend their
complaint. They were allowed to introduce evidence
purporting to show that earnest efforts toward a
compromise had been made.3 Hence, the complaint was
deemed
accordingly
amended
to
conform
to
the
evidence.
e. If the defendant permits evidence to be introduced
without objection and which supplies the necessary
allegations of a defective complaint, then the
2 Superseded by the Family Code, I didnt try to look for the exact provision: No suit shall
be filed or maintained between members of the same family unless it should appear that
earnest efforts toward a compromise have been made, but that the same have failed,
subject to the limitations in Article 2035.
3 That is, O Lay Kia pressed O'Laco for the transfer of the title of the Oroquieta
property in the name of spouses Valentin, just before OLacos marriage to
Hugo. But, instead of transferring the title as requested, Emilia sold the
property to the Roman Catholic Archbishop of Manila. This testimony was not
objected to by spouses Hugo.
4 Specific examples of resulting trusts may be found in the Civil Code, particularly Arts.
1448, 1449, 1451,1452 and 1453, 23 while constructive trusts are illustrated in Arts.
1450, 1454, 1455 and 1456.
i.
Lorenzo
Yap
Held:
The Supreme Court held that the trust
agreement between brothers is an implied trust which can be
established by parol evidence. To establish it in real property
the parol evidence should be fully convincing and proven by
authentic
documents.
The testimony given by Sally Yap wife
of deceased Lorenzo Yap is self-serving. She herself admitted
that in 1964 that their business was razed by fire that would
place somehow doubt, as to their capacity to purchase the land
in about two years, while Ramon Yap is an Accountant who has
all
the
means
to
purchase
property.
Wherefore the petition is denied and
the decision of the respondent Court of Appeals was affirmed by
the Supreme Court.
SIXTO DE LA COSTA
Judge