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Republic of the Philippines AQUINO. J.

SUPREME COURT
Manila This is a case about donations inter vivos and mortis causa . The
bone of contention is Lot No. 2502 of the Lolomboy Friar Lands
SECOND DIVISION Estate with an area of 5,678 square meters, situated in Sta. Maria,
Bulacan and covered by Transfer Certificate of Title No. 7336. The
G.R. No. L-33849 August 18, 1977 facts are as follows: On January 20, 1949 the spouses Gabino
(Gavino) Diaz and Severa Mendoza, their daughter-in-law Regina
TEODORICO ALEJANDRO, IRENEO POLICARPIO, VIRGINIA Fernando and their three children, Olimpia Diaz, Angel Diaz and
ALEJANDRO, MARIA ALEJANDRO, SALUD ALEJANDRO, Andrea Diaz, executed a deed of donation covering eight lots of
EMILIA ALEJANDRO, FLORENCIO ALEJANDRO and the Lolomboy Friar Lands Estate, owned by the Diaz spouses,
DIONISIA ALEJANDRO, petitioners, located at Barrio Parada, Sta. Maria, Bulacan. The deed reads as
vs. follows:
HON. AMBROSIO M. GERALDEZ, Presiding Judge, Court of
First Instance of Bulacan, Branch V, Sta. Maria, ANDREA KASULATAN NG PAGKAKALOOB (A DEED OF DONATION)
DIAZ and ANGEL DIAZ, respondents.
ALAMIN NG LAHAT NG MAKATUTUNGHAY
G.R. No. L-33968 August 18, 1977 NITO:

ANDREA DIAZ, petitioner, Ang pagkakaloob (donation) na ito, ginawa at


pinagtibay dito sa municipio ng Sta. Maria,
vs. lalawigan ng Bulacan, Pilipinas, ngayong ika 20 ng
Enero, 1949, ng mag-asawang GABINO DIAZ at
SEVERA MENDOZA, filipinos, may mga sapat na
HON. AMBROSIO M. GERALDEZ, in his capacity as Presiding
gulang, naninirahan sa nayon ng Parada, Sta.
Judge of the Court of First Instance of Bulacan, Branch V,
Maria, Bulacan na dito'y kinikilalang NAGKALOOB
TEODORICO ALEJANDRO, IRENEO POLICARPIO, VIRGINIA
(DONORS), sa kapakanan nila REGINA
ALEJANDRO, MARIA ALEJANDRO, EMILIA ALEJANDRO,
FERNANDO, filipina, may sapat na gulang, viuda;
FLORENCIO ALEJANDRO and DIONISIA ALEJANDRO,
OLIMPIA DIAZ, filipina, may sapat na gulang, kasal
respondents.
kay Teodorico Alejandro, ANGEL DIAZ, filipino,
may sapat na gulang, kasal kay Catalina Marcelo,
Ponciano G. Hernandez for Teodorico Alejandro, et al. at ANDREA DIAZ, filipina, may sapat na gulang,
kasal kay Perfecto Marcelo, mga naninirahan sa
Porfirio Villaroman for Andrea Diaz and Angel Diaz. nayon ng Parada, Sta. Maria, Bulacan, na dito'y
kinikilalang PINAGKALOOBAN (DONEES).

PAGPAPATUNAY:
Na ang Nagkaloob (DONORS) ay siyang mayari, ang nabanggit na nagkakaloob sa pamamagitan
at kamayari at namomosision sa kasalukuyan ng ng kasulatang ito ng pagkakaloob (Donation) ay
mga parcelang lupa kasama ang mga kagalingan buong pusong inililipat at lubos na ibinibigay sa
na nasa lugar ng Parada, Sta. Maria, Bulacan, nasabing pinagkakalooban ang lupang binabanggit
mapagkikilala sa paraang mga sumusunod at makikilala sa unahan nito, laya sa ano mang
(description and statements as to registration are sagutin at pagkakautang, katulad nito:
omitted):
(a) — Na ang lupang sinasaysay sa Lote No. 2502
1. TCT No. 7336, Lot No. 2502, 5,678 square o Titulo No. 7336, (No. 1) sa unahan nito ay hinati
meters. sa dalawang parte ang unang parte (1/2) na nasa
bandang Kanluran (West) ay ipinagkakaloob ng
2. TCT No. 10998, Lot No. 2485, 640 square mag-asawang Gabino Diaz at Severa Mendoza sa
meters. kanilang anak na si Angel Diaz, kasal kay Catalina
Marcelo; at ang ikalawang parte (1/2) na nasa
3. TCT No. 10840, Lot No. 2377,16,600 square 'bandang silangan (East) ay ipinagkakaloob ng
meters. mag-asawang Gabino Diaz at Severa Mendoza sa
kanilang anak na si Andrea Diaz, kasal kay
Perfecto Marcelo."
4. TCT No. 10997, Lot No. 2448,12,478 square
meters.
(Note — Some dispositions are not reproduced
verbatim but are merely summarized because they
5. TCT No. 2051, Lot No. 4168, 1,522 square
are not involved in this case. Paragraph (a) above
meters.
is the one involved herein).
6. TCT No. 17960, Lot No. 2522, 3,418 square
(b) — Lot No. 2485, TCT No.10998, to Regina
meters.
Fernando (daughter- in-law of the donors and
widow of their deceased son, Miguel Diaz) and
7. TCT No. 17961, Lot No. 2521, 715 square Olimpia Diaz in equal shares.
meters.
(c) — Lot No. 2377, TCT No. 10840, 1/3 to Angel
8. TCT No. 21453, Lot No. 2634, 8,162 square Diaz, 1/3 to Andrea Diaz, and 1/3 "ay inilalaan o
meters. inihahanda ng mag-asawang Gabino Diaz at
Severa Mendoza sa kanilang sariling kapakanan o
Na dahil at alang-alang sa pagmamahal at mga gastos nila.
masuyong pagtingin na taglay ng NAGKAKALOOB
(DONORS) sa Pinagkakalooban (DONEES) gayun (d) — Lot No. 2448, TCT No. 10997 to Olimpia Diaz
din sa tapat at mahalagang paglilingkod noong sa condicion na pagkakalooban ni Olimpia Diaz si
mga lumipas na panahon na ginawa ng huli sa una,
Crisanta de la Cruz, asawa ni Alejandro - - - - - (sic) 2. Na ang mga Pinagkalooban (DONATARIOS) ay
sakaling si Crisanta ay mamatay ng halagang hindi maaaring makapagbili sa pangatlong tao ng
isang daang piso (P100), bilang gastos sa libing." nasabing mga pagaari samantalang ang
nagkaloob (Donante) ay buhay Datapwa't kung
(e) — Na ang lupang-solar na sinasaysay sa Lote ang pagbibiling gagawin ay upang malunasan ang
No. 4168 o Titulo No. 2051 (No. 5); lupang-bukid mga gastos at menitencion ng Nagkaloob
na sinasaysay sa Lote No. 25?2 o Titulo No. 17960 (Donante) samakatuwid ang nasabing pagbibili ay
(No. 6); at lupang-bukid na sinasaysay sa Lote No. matuwid;
2521 o Titulo No. 17961 (No. 7) sa unahan nito ay
inilalaan o inihahanda ng mag-asawang Gabino 3. Gayun din, samantalang kaming mag-asawang
Diaz at Severa Mendoza sa kanilang sariling Gabino Diaz at Severa Mendoza ay buhay, patuloy
kapakanan o mga gastos nila. ang aming pamamahala, karapatan, at pagkamay-
ari sa mga nasabing pagaari na sinasaysay sa
(f) — Lot No. 2643, TCT No. 21453, to Regina unahan nito na pag-aari namin; ngunit sakaling
Fernando and her children with the deceased kami ay bawian ng buhay ng Panginoong Dios at
Miguel Diaz in whose name the said Lot was mamatay na ang mga karapatan at pagkamay-ari
already registered. ng bawa't Pinagkalooban (Donatarios) sa bawa't
pag-aari na nauukol sa bawa't isa ay may lubos na
Na kaming mga pinagkakalooban (DONEES) na kapangyarihan."
sila Regina Fernando, Olimpia Diaz, Angel Diaz at
Andrea Diaz ay tinatanggap namin ng buong SA KATUNAYAN NG LAHAT, linagdaan namin
kasiyahang loob ang pagkakaloob (Donation.) na ang kasulatang ito, dito sa Sta. Maria, Bulacan,
ito, at sa pamamagitan nito ay kinikilala, ngayon ika 20 ng Enero, 1949, sa patibay ng
pinahahalagahan, at lubos na pinasasalamatan dalawang sacsing kaharap. Signature Thumbmark
namin ang kagandahang loob at paglingap na Signature GABINO DIAZ SEVERA MENDOZA
ipinakita at ginawa ng nagkakaloob (Donors). REGINA
FERNANDO Thumbmark Signature Signature OLI
AT SA WAKAS, ang pagkakaloob na ito MPIA DIAZ ANGEL DIAZ ANDREA DIAZ
(DONATION), ay sumasailalim sa paraang mga
sumusunod: (Acknowledgment signed by Notary Celedonio Reyes is omitted)

1. Ang mga Pinagkakalooban (Donatarios) na sila Gabino Diaz died in 1962. On October 20, 1964 Severa Mendoza
Regina Fernando, Olimpia Diaz, Angel Diaz, at and her two children, Andrea Diaz and Angel Diaz, executed a
Andrea Diaz, siyang nakaaalam sa mga gastos sa deed of donation denominated as "Kasulatan ng Pagbibigay na
pagkakasakit at sa libing ng NAGKALOOB Magkakabisa Pagkamatay (Donation Mortis causa )" over one-half
(DONANTE); of Lot No. 2377-A, which is a portion of Lot No. 2377 of the
Lolomboy Friar Lands Estate (which in turn is item 3 or [c] in the
1949 deed of donation already mentioned).
In that deed of donation, Severa Mendoza donated to Andrea Diaz intervenors were not given any share in Lot No. 2502. Angel Diaz
her one-half share in Lot 2377-A, which one-half share is Identified and the intervenors were ordered to pay Andrea Diaz "attorney's
as Lot 2377-A-1, on condition that Andrea Diaz would bear the fees of P1,000 each or a total of P2,000".
funeral expenses to be incurred after the donor's death. She died
in 1964. The Alejandro intervenors filed a motion for reconsideration, On
July 16, 1971 the trial court denied that motion but eliminated the
It should be noted that the other one-half share in Lot 2377-A or attorney's fees.
Lot No. 2377-A-2 was previously adjudicated to Angel Diaz
because he defrayed the funeral expenses on the occasion of the Andrea Diaz and the Alejandro intervenors filed separate appeals
death of Gabino Diaz. to this Court under Republic Act No. 5440. Andrea Diaz contends
that the 1949 deed of donation is a valid donation inter vivos and
On May 12, 1970 Andrea Diaz sued her brother, Angel Diaz, in the that the trial court erred in deleting the award for attorney's fees.
Court of First Instance of Bulacan, Sta. Maria Branch V for the The Alejandro intervenors contend that the said donation is mortis
partition of Lots Nos. 2377-A and 2502 (Civil Case No. SM-357). causa ; that they are entitled to a one-third share in Lot No, 2502,
Teodorico Alejandro, the surviving spouse of Olimpia Diaz, and and that the trial court erred in characterizing the deed as a valid
their children intervened in the said case. They claimed one-third partition. In the ultimate analysis, the appeal involves the issue of
of Lot No. 2502. Angel Diaz alleged in his answer that he had. been whether the Alejandro intervenors should be awarded one-third of
occupying his share of Lot No. 2502 "for more than twenty years". Lot No. 2502, or 1,892 square meters thereof, as intestate heirs of
The intervenors claimed that the 1949 donation was a void mortis the Diaz spouses.
causa disposition.
To resolve that issue, it is necessary to determine whether the
On March 15, 1971 the lower court rendered a partial decision with deed of donation is inter vivos or mortis causa. A brief exposition
respect to Lot No. 2377-A. The case was continued with respect to on the nature of donation inter vivos and mortis causa may
Lot No. 2502 which is item No. 1 or (a) in the 1949 deed of facilitate the resolution of that issue. Many legal battles have been
donation. The record does not show what happened to the other fought on the question of whether a particular deed is an inter
six lots mentioned in the deed of donation. vivos or mortis causa donation. The copious jurisprudence on that
point sheds light on that vexed question. The Civil Code provides:
The trial court in its decision of June 30, 1971 held that the said
deed of donation was a donation mortis causa because the ART. 728. Donations which are to take effect upon
ownership of the properties donated did not pass to the donees the death of the donor partake of the nature of
during the donors' lifetime but was transmitted to the donees only testamentary provisions, and shall be governed by
"upon the death of the donors". the rules established in the Title on Succession.
(620).
However, it sustained the division of Lot No. 2502 into two equal
parts between Angel Diaz and Andrea Diaz on the theory that the ART. 729. When the donor intends that the
said deed of donation was effective "as an extra-judicial partition donation shall take effect during the lifetime of the
among the parents and their children. Consequently, the Alejandro donor, though the property shall not be delivered till
after the donor's death, this shall be a donation is void (Narag vs. Cecilio, 109 Phil. 299; Aznar vs. Sucilla 102 Phil.
inter vivos. The fruits of the property from the time 902; Tuazon vs. Posadas, 54 Phil. 289; Serrano vs. Solomon, 105
of the acceptance of the donation, shall pertain to Phil. 998, 1002).
the donee, unless the donor provides otherwise. (n)
This Court advised notaries to apprise donors of the necessity of
ART. 730. The fixing of an event or the imposition clearly specifying whether, notwithstanding the donation, they wish
of a suspensive condition, which may take place to retain the right to control and dispose at will of the property
beyond the natural expectation of life of the donor, before their death, without the consent or intervention of the
does not destroy the nature of the act as a beneficiary, since the reservation of such right would be a
donation inter vivos unless a contrary intention conclusive indication that the transfer' would be effective only at
appears. (n) the donor's death, and, therefore, the formalities of testaments
should be observed; while, a converso, the express waiver of the
ART. 731. When a person donates something right of free disposition would place the inter vivos character of the
subject to the resolutory condition of the donor's donation beyond dispute (Cuevas vs. Cuevas, 98 Phil. 68,72).
survival, there is a donation inter vivos. (n)
From the aforequoted articles 728 to 732, it is evident that it is the
ART. 732. Donations which are to take effect inter time of effectivity (aside from the form) which distinguishes a
vivos shall be governed by the general provisions donation inter vivos from a donation mortis causa . And the
on contracts and obligations in all that is not effectivity is determined by the time when the full or naked
determined in this Title. (621)." ownership (dominum plenum or dominium directum) of the
donated properties is transmitted to the donees. (See Lopez vs.
Nature of donations inter vivos and mortis causa transfers. — Olbes, 15 Phil. 540; Gonzales and Fuster Fabra vs. Gonzales
Before tackling the issues raised in this appeal, it is necessary to Mondragon, 35 Phil. 105). The execution of a public instrument is
have some familiarization with the distinctions between a mode of delivery or tradition (Ortiz vs. Court of Appeals, 97 Phil.
donations inter vivos and mortis causa because the Code 46).
prescribes different formalities for the two kinds of donations. An
utter vivos donation of real property must be evidenced by a public If the donation is made in contemplation of the donor's death,
document and should be accepted by the donee in the same deed meaning that the full or naked ownership of the donated properties
of donation or in a separate instrument. In the latter case, the donor will pass to the donee only because of the donor's death, then it is
should be notified of the acceptance in an authentic form and that at that time that the donation takes effect, and it is a
step should be noted in both instruments. (Art. 749, Civil Code. As donation mortis causa which should be embodied in a last will and
to inter vivos donation of personal property, see art. 748). testament (Bonsato vs. Court of Appeals, 95 Phil. 481).

On the other hand, a transfer mortis causa should be embodied in But if the donation takes effect during the donor's lifetime or
a last will and testament (Art. 728, supra). It should not be called independently of the donor's death, meaning that the full or naked
donation mortis causa . It is in reality a legacy (5 Manresa, Codigo ownership (nuda proprietas) ) of the donated properties passes to
Civil, 6th Ed., p. 107). If not embodied in a valid will, the donation the donee during the donor's lifetime, not by reason of his death
but because of the deed of donation, then the donation is inter
vivos (Castro vs. Court of Appeals, L-20122, April 28, 1969, 27 La tesis de la desaparicion de las
SCRA 1076). donaciones mortis causa en nuestro Codigo Civil,
acusada ya precedentemente por el projecto de
The effectivity of the donation should be ascertained from the deed 1851, puede decirse que constituye una communis
of donation and the circumstances surrounding its execution. opinio entre nuestros expositores, incluso los mas
Where, for example, it is apparent from the document of trust that recientes. ...
the donee's acquisition of the property or right accrued immediately
upon the effectivity of the instrument and not upon the donor's Garcia Goyena, comentando dicho proyecto, decia
death, the donation is inter vivos (Kiene vs. Collector of Internal que la Comision se habia adherido al acuerdo de
Revenue, 97 Phil. 352). suprimir las donaciones mortis causa , seguido por
casi todos los Codigos modernos. Las
There used to be a prevailing notion, spawned by a study of Roman donaciones mortis causa — añ;adia-eran una
Law, that the Civil Code recognizes a donation mortis as a juridical especie de montsruo entre los contratos y ultimas
act in contraposition to a donation inter vivos. That impression voluntades; las algarabia del Derecho romano y
persisted because the implications of article 620 of the Spanish patrio sobre los puntos de semenjanza y
Civil Code, now article 728, that "las donaciones que hayan de disparidad de estas donaciones con los pactos y
producir sus efectos pro muerte del donante participan de la legados no podia producir sino dudas, confusion y
naturaleza de las disposiciones de ultima voluntad, y se regiran pleitos en los rarisimos casos que ocurriesen por
por las reglas establecidas en el capitulo de la sucesion la dificuldad de apreciar y fijar sus verdaderos
testamentaria" had not been fully expounded in the law schools. caracteres' "(4 Derecho Civil Espanol, Comun y
Notaries assumed that the donation mortis causa of the Roman Foral, 8th Ed., 1956, pp. 182-3).
Law was incorporated into the Civil Code.
Manresa is more explicit. He says that "la disposicion del articulo
As explained by Justice J. B. L. Reyes in the Bonsato case, supra, 620 significa, por lo tanto: (1) que han desaperacido las llamadas
article 620 broke away from the Roman Law tradition and followed antes donaciones mortis causa , por lo que el Codigo no se ocupa
the French doctrine that no one may both donate and retain. Article de ellas en absoluto; (2) que toda disposicion de bienes para
620 merged donations mortis causa with testamentary dispositions despues de la muerte sigue las reglas establecidas para la
and thus suppressed the said donations as an independent legal sucesion testamentaria" (5 Comentarios al Codigo Civil Espanol,
concept. Castan Tobenas says: 6th Ed., p.107). Note that the Civil Code does not use the term
donation mortis causa . ( Section 1536 of the Revised
(b) Subsisten hoy en nuestro Derecho las Administrative Code in imposing the inheritance tax uses the term
donaciones mortis causa ? — De lo que acabamos "gift mortis causa ").
lwphl@i tç

de decir se desprende que las donaciones mortis


causa han perdido en el Codigo civil su caracter What are the distinguishing characteristics of a donation mortis
distintivo y su naturaleza, y hay que considerarlas causa? Justice Reyes in the Bonsato case says that in a
hoy como una institucion suspirimida, refundida en disposition post mortem (1) the transfer conveys no title or
la del legado. ... ownership to the transferee before the death of the tansferor, or
the transferor (meaning testator) retains the ownership, full or
naked (domino absoluto or nuda proprietas) (Vidal vs. Posadas, 58 3. That in a mortis causa disposition the
Phil. 108; De Guzman vs. Ibea, 67 Phil. 633; (2) the transfer is conveyance or alienation should be (expressly or
revocable before the transferor's death and revocabllity may be by necessary implication) revocable ad nutum or at
provided for indirectly by means of a reserved power in the donor the discretion of the grantor or so called donor if he
to dispose of the properties conveyed (Bautista vs. Sabiniano, 92 changes his mind (Bautista vs. Saniniano, 92 Phil.
Phil. 244), and (3) the transfer would be void if the transferor 244).
survived the transferee.
4. That, consequently, the specification in the deed
In other words, in a donation mortis causa it is the donor's death of the cases whereby the act may be revoked by
that determines that acquisition of, or the right to, the property the donor indicates that the donation is inter
donated, and the donation is revocable at the donor's will, Where vivos and not a mortis causa disposition (Zapanta
the donation took effect immediately upon the donee's acceptance vs. Posadas, 52 Phil. 557).
thereof and it was subject to the resolutory condition that the
donation would be revoked if the donee did not give the donor a 5. That the designation of the donation as mortis
certain quantity of rice or a sum of money, the donation is inter causa , or a provision in the deed to the effect the
vivos (Zapanta vs. Posadas, Jr., 52 Phil. 557). donation "is to take effect at the death of the donor",
is not a controlling criterion because those
Justice Reyes in the subsequent cast of Puig vs. Penaflorida, L- statements are to be construed together with the
15939, November 29, 1965, 15 SCRA 276, synthesized the rules rest of the instrument in order to give effect to the
as follows: real intent of the transferor (Laureta vs. Mata and
Mango, 44 Phil. 668; Concepcion vs. Concepcion,
1. That the Civil Code recognizes only gratuitous 91 Phil. 823; Cuevas vs. Cuevas, 98 Phil. 68).
transfers of property which are effected by means
of donations inter vivos or by last will and 6. That a conveyance for an onerous consideration
testament executed with the requisite legal is governed by the rules of contracts and not by
formalities. those of donations or testaments (Carlos vs. Ramil,
20 Phil. 183; Manalo vs. De Mesa, 29 Phil. 495).
2. That in inter vivos donations the act is
immediately operative even if the material or 7. That in case of doubt the conveyance should be
physical deliver (execution) of the property may be deemed a donation inter vivos rather than mortis
deferred until the donor's death, whereas, in a causa , in order to avoid uncertainty as to the
testamentary disposition, nothing is conveyed to ownership of the property subject of the deed.
the grantee and nothing is acquired by him until the
death of the grantortestator. The disposition is It may be added that the fact that the donation is given in
ambulatory and not final. consideration of love and affection or past or future services is not
a characteristic of donations inter vivos because transfers mortis
causa may be made also for those reasons. There is difficulty in
applying the distinctions to controversial cases because it is not (b) Where it was provided that the donated properties would be
easy sometimes to ascertain when the donation takes effect or given to the donees after the expiration of thirty days from the
when the full or naked title passes to the transferee. As Manresa donor's death, the grant was made in the future tense, and the word
observes, "when the time fixed for the commencement of the "inherit" was used (Carino vs. Abaya, 70 Phil. 182).
enjoyment of the property donated be at the death of the donor, or
when the suspensive condition is related to his death, confusion (c) Where the donor has the right to dispose of all the donated
might arise" (5 Codigo Civil, 6th Ed., p. 108). properties and the products thereof. Such reservation is
tantamount to a reservation of the right to revoke the donation
The existence in the deed of donation of conflicting stipulations as (Bautista vs. Sabiniano 92 Phil. 244).
to its effectivity may generate doubt as to the donor's intention and
as to the nature of the donation (Concepcion vs. Concepcion, 91 (d) Where the circumstances surrounding the execution of the
Phil. 823). deed of donation reveal that the donation could not have taken
effect before the donor's death and the rights to dispose of the
Where the donor declared in the deed that the conveyance donated properties and to enjoy the fruits remained with the donor
was mortis causa and forbade the registration of the deed before during her lifetime (David vs. Sison, 76 Phil. 418).
her death, the clear inference is that the conveyance was not
intended to produce any definitive effect nor to pass any interest to But if the deed of donation makes an actual conveyance of the
the grantee except after her death. In such a case, the grantor's property to the donee, subject to a life estate in the donors, the
reservation of the right to dispose of the property during her lifetime donation is is inter vivos (Guarin vs. De Vera, 100 Phil. 1100).
means that the transfer is not binding on her until she dies. It does
not mean that the title passed to the grantee during her lifetime. Articles 729, 730 and 731 have to some extent dissipated the
(Ubalde Puig vs. Magbanua Penaflorida, L-15939, Resolution of confusion surrounding the two kinds of donation. The rule in article
January 31, 1966, 16 SCRA 136). 729 is a crystallization of the doctrine announced in decided cases.

In the following cases, the conveyance was considered a A clear instance where the donor made an inter vivos donation is
void mortis causa transfer because it was not cast in the form of a found in De Guzman vs. Ibea 67 Phil. 633. In that case, it was
last will and testament as required in article 728, formerly article provided in the deed that the donor donated to the donee certain
620: properties so that the donee "may hold the same as her own and
always" and that the donee would administer the lands donated
(a) Where it was stated in the deed of donation that the donor and deliver the fruits thereof to the donor, as long as the donor was
wanted to give the donee something "to take effect after his death" alive, but upon the donor's death the said fruits would belong to the
and that "this donation shall produce effect only by and because of donee. It was held that the naked ownership was conveyed to the
the death of the donor, the property herein donated to pass title donee upon the execution of the deed of donation and, therefore,
after the donor's death" (Howard vs. Padilla, 96 Phil. 983). In the the donation became effective during the donor's lifetime.
Padilla case the donation was regarded as mortis causa although
the donated property was delivered to the donee upon the In Sambaan vs. Villanueva, 71 Phil. 303, the deed of donation, as
execution of the deed and although the donation was accepted in in Balaqui vs. Dongso, 53 Phil. 673, contained conflicting provision.
the same deed.
It was provided in the deed that the donation was made "en donee; that "title" to the donated properties would not pass to the
consideracion al afecto y carino" of the donor for the donee but that donee during the donor's lifetime, and that it would be only upon
the donation "surtira efectos despues de ocurrida mi muerte the donor's death that the donee would become the "true owner"
(donor's death). of the donated properties. However, there was the stipulation that
the donor bound herself to answer to the donee for the property
That donation was held to be inter vivos because death was not donated and that she warranted that nobody would disturb or
the consideration for the donation but rather the donor's love and question the donee's right.
affection for the donee. The stipulation that the properties would be
delivered only after the donor's death was regarded as a mere Notwithstanding the provision in the deed that it was only after the
modality of the contract which did not change its inter donor's death when the 'title' to the donated properties would pass
vivos character. The donor had stated in the deed that he was to the donee and when the donee would become the owner
donating, ceding and transferring the donated properties to the thereof, it was held in the Balaqui case that the donation was inter
donee. (See Joya vs. Tiongco, 71 Phil. 379). vivos.

In Laureta vs. Mata and Magno, 44 Phil. 668 the deed of donation It was noted in that case that the donor, in making a warranty,
provided that the donor was donating mortis causa certain implied that the title had already been conveyed to the donee upon
properties as a reward for the donee's services to the donor and the execution of the deed and that the donor merely reserved to
as a token of the donor's affection for him. The donation was made herself the "possesion and usufruct" of the donated properties.
under the condition that "the donee cannot take possession of the
properties donated before the death of the donor"; that the ' donee In Concepcion vs. Concepcion, 91 Phil. 823, it was provided in the
should cause to be held annually masses for the repose of the deed of donation, which was also styled as mortis causa , that the
donor's soul, and that he should defray the expenses for the donation was made in consideration of the services rendered by
donor's funeral. the donee to the donor and of the donor's affection for the donee;
that the donor had reserved what was necessary for his
It was held that the said donation was inter vivos despite the maintenance, and that the donation "ha de producir efectos
statement in the deed that it was mortis causa . The donation was solamente por muerte de la donante".
construed as a conveyance in praesenti ("a present grant of a
future interest") because it conveyed to the donee the title to the It was ruled that the donation was inter vivos because the
properties donated "subject only to the life estate of the donor" and stipulation that the donation would take effect only after the donor's
because the conveyance took effect upon the making and delivery death "simply meant that the possession and enjoyment, of the
of the deed. The acceptance of the donation was a circumstance fruits of the properties donated' should take effect only after the
which was taken into account in characterizing the donation as donor's death and not before".
inter vivos.
Resolution of the instant case. — The donation in the instant case
In Balacui vs. Dongso, supra, the deed of donation involved was is inter vivos because it took effect during the lifetime of the donors.
more confusing than that found in the Lauretacase. In It was already effective during the donors' lifetime, or immediately
the Balaqui case, it was provided in the deed that the donation was after the execution of the deed, as shown by the
made in consideration of the services rendered to the donor by the
granting, habendum and warranty clause of the deed (quoted never accepted by the donees during the donors' lifetime.
below). Acceptance is a requirement for donations inter vivos.

In that clause it is stated that, in consideration of the affection and In the acceptance clause herein, the donees declare that they
esteem of the donors for the donees and the valuable services accept the donation to their entire satisfaction and, by means of the
rendered by the donees to the donors, the latter, by means of the deed, they acknowledge and give importance to the generosity and
deed of donation, wholeheartedly transfer and unconditionally give solicitude shown by the donors and sincerely thank them.
to the donees the lots mentioned and described in the early part of
the deed, free from any kind of liens and debts: In the reddendum or reservation clause of the deed of donation, it
is stipulated that the donees would shoulder the expenses for the
Na dahil at alang-alang sa illness and the funeral of the donors and that the donees cannot
pagmamahal at masuyong sell to a third person the donated properties during the donors'
pagtingin na taglay ng lifetime but if the sale is necessary to defray the expenses and
NAGKAKALOOB (DONORS) sa support of the donors, then the sale is valid.
Pinagkakalooban (DONEES)
gayun din sa tapat at mahalagang The limited right to dispose of the donated lots, which the deed
paglilingkod noong mga lumipas na gives to the donees, implies that ownership had passed to them by
panahon na ginawa ng huli sa una means of' the donation and that, therefore, the donation was
ang nabanggit na nagkakaloob sa already effective during the donors' lifetime. That is a characteristic
pamagitan ng kasulatang ito ng of a donation inter vivos.
pagkakaloob (Donation) ay buong
pusong inililipat at lubos na However, paragraph 3 of the reddendum in or reservation clause
ibinibigay sa nasabing provides that "also, while we, the spouses Gabino Diaz and Severa
pinagkakalooban ang lupang Mendoza, are alive, our administration, right, and ownership of the
binabanggit at makikilala sa lots mentioned earlier as our properties shall continue but, upon
unahan nito, laya sa ano mang our death, the right and ownership of the donees to each of the
sagutin at pagkakautang, katulad properties allocated to each of them shall be fully effective." The
nito: foregoing is the translation of the last paragraph of the deed of
donation which reads:
Following the above-ousted granting, habendum and warranty
clause is the donors' declaration that they donate (ipinagkakaloob) (3) Gayun din samantalang kaming mag-asawang
Lot No. 2502, the property in litigation, in equal shares to their Gabino Diaz at Severa Mendoza ay buhay, patuloy
children Angel Diaz and Andrea Diaz, the western part to Angel and aming pamamahala, karapatan, at
and the eastern part to Andrea. pagkamayari sa mga nasabing pagaari na
sinasaysay sa unahan nito na pagaari namin;
The acceptance clause is another indication that the donation is ngunit sakaling kami ay bawian ng buhay ng
inter vivos. Donations mortis causa , being in the form of a will, are Panginoong Dios at mamatay na, ang mga
karapatan at pagkamayari ng bawa't deed transferred to the donees the naked ownership of the donated
pinagkalooban (Donatorios) sa bawa't pagaari properties.
nauukol sa bawa't isa ay may lubos na
kapangyarihan. That conclusion is further supported by the fact that in the deed of
donation, out of the eight lots owned by the donors, only five were
Evidently, the draftsman of the deed did not realize the discordant donated. Three lots, Lots Nos. 4168, 2522 and 2521 were
and ambivalent provisions thereof. The habendum clause superflously reserved for the spouses or donors in addition to one-
indicates the transfer of the ownership over the donated properties third of Lot No. 2377. If the deed of donation in question was
to the donees upon the execution of the deed. But intended to be a mortis causa disposition, then all the eight lots
the reddendum clause seems to imply that the ownership was would have been donated or devised to the three children and
retained by the donors and would be transferred to the donees only daughter-in-law of the donors.
after their death.
The trial court's conclusion that the said deed of donation, although
We have reflected on the meaning of the said contradictory void as a donation inter vivos is valid "as an extrajudicial partition
clauses. All the provisions of the deed, like those of a statute and among the parents and their children" is not well-taken. Article
testament, should be construed together in order to ascertain the 1080 of the Civil Code provides that 46 should a person make a
intention of the parties. That task would have been rendered easier partition of his estate by an act inter vivos or by will, such partition
if the record shows the conduct of the donors and the donees after shall be respected, insofar as it does not prejudice the legitime of
the execution of the deed of donation. the compulsory heirs."

But the record is silent on that point, except for the allegation of We have already observed that the said donation was not a
Angel Diaz in his answer (already mentioned) that he received his partition of the entire estate of the Diaz spouses since, actually,
share of the disputed lot long before the donors' death and that he only five of the eight lots, constituting their estate, were partitioned.
had been "openly and adversely occupying" his share "for more Hence, that partition is not the one contemplated in article 1080.
than twenty years". (Andrea Diaz on page 17 of her brief in L-33849
states that the donees took possession of their respective shares There is another circumstance which strengthens ' the view that
as stipulated in the deed of donation. Pages 3,4,18 and 19, tsn the 1949 deed of donation in question took effect during the
March, 1971). donors' lifetime. It may he noted that in that deed Lot No. 2377
(items 3 and [c]) was divided into three equal parts: one-third was
Our conclusion is that the aforequoted paragraph 3 of donated to Andrea Diaz and one-third to Angel Diaz. The remaining
the reddendum or reservation clause refers to the beneficial one-third was reserved and retained by the donors, the spouses
ownership (dominium utile) and not to the naked title and that what Gabino Diaz and Severo Mendoza, for their support. That reserved
the donors reserved to themselves, by means of that clause, was one-third portion came to be known as Lot No. 2377-A.
the management of the donated lots and the fruits thereof. But,
notwithstanding that reservation, the donation, as shown in In 1964 or after the death of Gabino Diaz, his surviving spouse
the habendum clause, was already effective during their lifetime Severa Mendoza executed a donation mortis causa wherein she
and was not made in contemplation of their death because the conveyed to her daughter, Andrea Diaz (plaintiff-appellant herein),
her one-half share in Lot No. 2377-A, which one-half share is passed to the donee; (2) it was not provided that the transfer was
known as Lot No. 2377-A-1, the other half or Lot No. 2377-A-2 revocable before the donor's death, and (3) it was not stated that
having been already conveyed to Angel Diaz. the transfer would be void if the transferor should survive the
transferee.
That disposition of Lot No. 2377-A-2 clearly implies that the
conveyance in the 1949 deed of donation as to Lot No. 2377 took It was further held in the Bonsato case that the stipulation "que
effect during the lifetime of the donors, Gabino Diaz and Severa despues de la muerte del donante entrara en vigor dicha
Mendoza, and proves that the 1949 donation was inter vivos. donacion", should be interpreted together with the prior provision
regarding its irrevocable and consummated character, and that
The instant case has a close similarity to the pre-war cases already would mean that the charge or condition as to the donor's share of
cited and to three post-liberation cases. In the Bonsato case, the the fruits would be terminated upon the donor's death.
deed of donation also contained contradictory dispositions which
rendered the deed susceptible of being construed as a The Puig case, supra, is even more doubtful and controversial
donation inter vivos or as a donation causa. than the instant case. In the Puig case, the donor, Carmen Ubalde
Vda. de Parcon, in a deed entitled "Donacion Mortis causa dated
It was stated in one part of the deed that the donor was executing November 24, 1948 cede y transfiere en concepto de
"una donacion perfects e irrevocable consumada" in favor of the donacion mortis causa to the donee, Estela Magbanua Penaflorida
donee in consideration of his past services to the donor; that at the three parcels of land in consideration of the donee's past services
time of the execution of the deed, the donor "ha entregado" to the and the donor's love and affection for the latter.
donee "dichos terrenos donados'; that while the donor was alive,
he would receive the share of the fruits corresponding to the owner; It was stipulated in the deed that the donor could alienate or
and "que en vista de la vejez del donante, el donatario Felipe mortgage the donated properties "cuando y si necesita fondos para
Bonsato tomara posesion inmediatamente de dichos terrenos a su satisfacer sus proprias necesidades sin que para ello tega que
favor". These provisions indicate that the donation in question intervener la Donataria, pues su consentimiento se sobre entiende
was inter vivos aqui parte de que la donacion que aqui se hace es mortis causa ,
es decir que la donacion surtira sus efectos a la muerte de la
However, in the last clause of the deed in the Bonsato case (as in donante". It was repeated in another clause of the deed "que
the instant case), it was provided 'que despues de la muerte del lacesion y transferencia aqui provista surtira efecto al fallecer la
donante entrara en vigor dicha donacion y el donatario Felipe Donante".
Bonsato tendra todos log derechos de dichos terrernos en
concepto de dueno absolute de la propriedad libre de toda It was further stipulated that the donee would defray the medical
responsabilidad y gravemen y pueda ejercitar su derecho que crea and funeral expen of the donor unless the donor had funds in the
conveniente". These provisions would seem to show that the bank or "haya cosecho levantada or recogida en cual caso dichos
donation was mortis causa . recursos responderan portales gastos a disposicion y direccion de
la donataria". Another provision of the deed was that it would be
Nevertheless, it was held in the Bonsato case that the donation registered only after the donor's death. In the same deed the donee
was inter vivos because (1) the ownership of the things donated accepted the donation.
In the Puig case the donor in another deed entitled Escritura de donation in the same instrument. Subsequently, or on May 26,
Donacion mortis causa " dated December 28, 1949 donated to the 1952, the donor revoked the donation.
same donee, Estela Magbanua Penaflorida three parcels of land
en concepto de una donacion mortis causa " in consideration of The deed of donation in the Cuevas case contained the following
past services. It was provided in the deed "que antes de su nuerte provisions which, as in similar cases, are susceptible of being
la donante, podra enajenar vender traspasar o hipotecar a construed as making the conveyance an inter vivos or a mortis
cualesquiera persona o entidades los bienes aqui donados a favor causa transfer:
de la donataria en concepto de una donacion mortis causa ". The
donee accepted the donation in the same deed. "Dapat maalaman ni Crispulo Cuevas na samantalang ako ay
nabubuhay, ang lupa na ipinagkakaloob ko sa kaniya ay ako pa rin
After the donor's death both deeds were recorded in the registry of ang patuloy na mamomosecion, makapagpapatrabajo,
deeds. In the donor's will dated March 26, 1951, which was duly makikinabang at ang iba pang karapatan sa pagmamayari ay sa
probated, the donation of a parcel of land in the second deed of akin pa rin hanggang hindi ako binabawian ng buhay ng Maykapal
donation was confirmed. at ito naman ay hindi ko nga iyaalis pagkat kung ako ay mamatay
na ay inilalaan ko sa kaniya."
Under these facts, it was held that the 1948 deed of
donation mortis causa was inter vivos in character in spite of Translation
repeated expressions therein that it was a mortis causa donation
and that it would take effect only upon the donor's death. Those "Crispulo Cuevas should know that while I am alive, the land which
expressions were not regarded as controlling because they were I donated to him will still be under my continued possession; I will
contradicted by the provisions that the donee would defray the be the one to have it cultivated; I will enjoy its fruits and all the other
donor's expenses even if not connected with her illness and that rights of ownership until Providence deprives me of life and I
the donee's husband would assume her obligations under the cannot take away the property from him because when I die I
deed, should the donee predecease the donor. Moreover, the reserve the property for him." (sic)
donor did not reserve in the deed the absolute right to revoke the
donation.
It was held that the donation was inter vivos because the phrase
"hindi ko nga iyaalis (I will not take away the property") meant that
But the 1949 deed of donation was declared void because it was a the donor expressly renounced the right to freely dispose of the
true conveyance mortis causa which was not embodied in a last property in favor of another person and thereby manifested the
will and testament. The mortis causa character of the disposition is irrevocability of the conveyance of the naked title to the donee. The
shown by the donor's reservation of the right to alienate or donor retained the beneficial ownership or dominium utile Being
encumber the donated properties to any person or entity. an inter vivos donation, it could be revoked by the donor only on
the grounds specified by law. No such grounds existed. The donee
In the Cuevas case, supra, one Antonina Cuevas executed on was not guilty of ingratitude. The other point to be disposed of is
September 18, 1950 a notarial conveyance styled as the matter of the claim for attorney's fees of Andrea Diaz against
"Donacion Mortis causa " where she ceded to her nephew Crispulo the Alejandro intervenors.
Cuevas a parcel of unregistered land. Crispulo accepted the
The other point to be disposed of is the matter of the claim for effect upon the execution of said instrument. For the important
attorney's fees of Andrea Diaz against the Alejandro intervenors. characteristic of a donation inter vivos is that it takes effect
independently of the donor's death. Thus, when the donor states
After a careful consideration of the facts and circumstances of the that he donates the properties subject to the "condition that the
case, particularly the apparent good faith of the Alejandro donee cannot take ion of the properties donated until after my
intervenors in asserting a one-third interest in the disputed lot and death'. 1or the ownership and possession of the property, as wen as
their close relationship to Andrea Diaz, we find that it is not proper its administration,. were turned over to the donee, but the right to reap
to require them to pay attorney's fees (Salao vs. Salao, L-26699, and dispose of the fruits was deferred until after the death of the
March 16, 1976, 70 SCRA 65). (Andrea Diaz did not implead Angel donor 2 or when it was expressly stated that the donation would take
Diaz as a respondent in her petition for review.) effect upon acceptance, but would be revoked ipso facto upon the
non-fulfillment of certain conditions, 3it has been held that the donation
is inter vivos, and the ownership over the property donated is
WHEREFORE, the trial court's amended decision is reversed transferred to the donee. 4
insofar as it pronounces that the deed of donation is void. That
donation is declared valid as a donation inter vivos.
A donation inter vivos is a gratuitous contract whereby the donor
divests himself, at present and irrevocably, of the thing given in
The disputed lot should be partitioned in accordance with that deed favor of the donee and, therefore, like any other contract, requires
between Andrea Diaz and Angel Diaz. the concurrence of the reciprocal consent of the parties, and does
not become perfect until it is accepted by the donee. 5 As observed
The decision is affirmed insofar as it does not require the Alejandro by Manresa, 6upon acceptance by the donee, the donor can no longer
intervenors to pay attorney's fees to Andrea Diaz. No costs. SO withdraw, and he can be compelled to comply with his offering or to
ORDERED. deliver the things he wanted to donate. Consequently, it may not be
revoked unilaterally or by the sole and arbitrary will of the donor. The
Fernando (Chairman), Barredo, Concepcion, Jr. and Santos, JJ., donation, however, may be made revocable upon the fulfillment of
concur. resolutory conditions, 7 or may be revoked only for the reasons
provided in Articles 760, 764 and 765 of the Civil Code. As explained
in Bautista, et al. v. Sabiniano, 8 except "in the instances expressly
provided by law, such as the subsequent birth of children of the donor,
failure by the donee to comply with the conditions imposed, ingratitude
of the donee and reduction of the donation in the event of
Separate Opinions inofficiousness thereof, a donation is irrevocable. If the donor reserves
the right to revoke it or if he reserves the right to dispose of all the
properties purportedly donated, there is no donation. If the disposition
or conveyance or transfer takes effect. upon the donor's death and
becomes irrevocable only upon his death, it is not inter vivos but
ANTONIO, J., concurring: a mortis causa donation." Here, the conveyance or alienation of the
properties donated is not revocable ad nutum
I concur. I agree that all the features pointed out by Justice Aquino
indicate that the conveyance was intended to produce definitive
Separate Opinions or conveyance or transfer takes effect. upon the donor's death and
becomes irrevocable only upon his death, it is not inter vivos but
ANTONIO, J., concurring: a mortis causa donation." Here, the conveyance or alienation of the
properties donated is not revocable ad nutum
I concur. I agree that all the features pointed out by Justice Aquino
indicate that the conveyance was intended to produce definitive
effect upon the execution of said instrument. For the important
characteristic of a donation inter vivos is that it takes effect
independently of the donor's death. Thus, when the donor states
that he donates the properties subject to the "condition that the
donee cannot take ion of the properties donated until after my
death'. 1or the ownership and possession of the property, as wen as
its administration,. were turned over to the donee, but the right to reap
and dispose of the fruits was deferred until after the death of the
donor 2 or when it was expressly stated that the donation would take
effect upon acceptance, but would be revoked ipso facto upon the
non-fulfillment of certain conditions, 3it has been held that the donation
is inter vivos, and the ownership over the property donated is
transferred to the donee. 4

A donation inter vivos is a gratuitous contract whereby the donor


divests himself, at present and irrevocably, of the thing given in
favor of the donee and, therefore, like any other contract, requires
the concurrence of the reciprocal consent of the parties, and does
not become perfect until it is accepted by the donee. 5 As observed
by Manresa, 6upon acceptance by the donee, the donor can no longer
withdraw, and he can be compelled to comply with his offering or to
deliver the things he wanted to donate. Consequently, it may not be
revoked unilaterally or by the sole and arbitrary will of the donor. The
donation, however, may be made revocable upon the fulfillment of
resolutory conditions, 7 or may be revoked only for the reasons
provided in Articles 760, 764 and 765 of the Civil Code. As explained
in Bautista, et al. v. Sabiniano, 8 except "in the instances expressly
provided by law, such as the subsequent birth of children of the donor,
failure by the donee to comply with the conditions imposed, ingratitude
of the donee and reduction of the donation in the event of
inofficiousness thereof, a donation is irrevocable. If the donor reserves
the right to revoke it or if he reserves the right to dispose of all the
properties purportedly donated, there is no donation. If the disposition
Republic of the Philippines The instant petitions have been consolidated as they arose from the same facts and involve
similar issues. Dr. Emilio Pascual died intestate and without issue on November 18,1972. He
SUPREME COURT was survived by his sister, Ursula Pascual and the children of his late sisters as follows: (1)
Manila Maria Pascual Reyes- Ruperto Reyes and Jose Reyes; (2) Ines Pascual Reyes-Jose P.
Reyes, Benito Reyes, and Manna Reyes Manalastas; (3) Josefa Pascual Reyes-Augusto
Reyes and Benjamin Reyes; and (4) Escolastica Pascual Dalusong (half- blood Pedro
THIRD DIVISION Dalusong.

G.R. No. L-45262 July 23, 1990 On December 3, 1973, the heirs of Dr. Pascual filed Special
Proceedings No. 73-30-M in the then Court of First Instance of
RUPERTO REYES and REYNALDO C. SAN JUAN, in his Pampanga for the administration of his estate. Atty. Marcela
capacity as Special Administrator, petitioners, Macapagal, Clerk of Court of Branch VII was appointed special
vs. administratrix. Macapagal was, however, replaced by Reynaldo
HON. LORENZO R. MOSQUEDA, Judge of CFI, Pampanga San Juan.
(Branch VII), and URSULA D. PASCUAL, respondents.
On February 12, 1976, Ursula Pascual filed a motion to exclude
G.R. No. L-45394 July 23, 1990 some properties from the inventory of Pascual's estate and to
deliver the titles thereto to her. Ursula alleged that Dr. Pascual
during his lifetime or on November 2, 1966 executed a "Donation
Mortis Causa" in her favor covering properties which are included
in the estate of Dr. Pascual (subject of Special Proceedings No.
PEDRO DALUSONG, petitioner, 73-30-M) and therefore should be excluded from the inventory.
vs
HON. LORENZO R. MOSQUEDA, JUDGE, BRANCH VII,
On August 1, 1976; the trial court issued an order excluding from
COURT OF FIRST INSTANCE OF PAMPANGA, and URSULA
the inventory of the estate the properties donated to Ursula, to wit:
D. PASCUAL, respondents.
WHEREFORE, in view of all the foregoing
G.R. Nos. 73241-42 July 23, 1990
discussion, let the properties listed in paragraph 2
of the motion of February 12, 1976 filed by Ursula
OFELIA D. PARUNGAO and ROSARIO DUNCIL, petitioners, D. Pascual thru counsel be, as it is hereby ordered,
vs. excluded from the inventory of the estate of the
THE HON. INTERMEDIATE APPELLATE COURT, (Third Civil deceased Dr. Emilio D. Pascual, without prejudice
Cases Division), BENJAMIN P. REYES and OSCAR to its final determination in a separate action.
REYES, respondents. Special Administrator Reynaldo San Juan is
hereby ordered to return to Court the custody of the
corresponding certificates of titles of these
properties, until the issue of ownership is finally
GUTIERREZ, JR., J.: determined in a separate action. (G.R. No. 45262,
pp. 23-24)
The Order is now the subject of G.R. Nos. 45262 and 45394. On for recovery of possession over the Tondo property against
January 5, 1977, we issued a temporary restraining order enjoining Benjamin Reyes and his nephew Oscar Reyes with the Court of
the trial court from enforcing the August 1, 1976 Order. First Instance of Manila. The case was docketed as Civil Case No.
119359. In her complaint, Parungao also alleged that as early as
Among the properties included in the "donation mortis causa" in 1973, the defendants occupied two (2) doors of the apartment
favor of Ursula was Lot 24, Block No. 15 of the subdivision plan situated at the Tondo property by mere tolerance of the previous
Psd-3231, located at 1109-1111 R. Papa St., Tondo, Manila as owner, Dr. Emilio Pascual, and later by her until April 8, 1978 when
evidenced by Transfer Certificate of Title No. 17854. The records she formally demanded that the defendants vacate the premises.
show that on May 15, 1969, Emilio Pascual executed a deed of Parungao prayed that the defendants be evicted from the
donation of real property inter vivos over the abovementioned lot premises.
in Manila in favor of Ofelia D. Parungao, petitioner in G.R. Nos.
73241-42 a minor with her mother, Rosario Duncil, accepting the The two cases were consolidated. On June 3, 1982, the then Court
gift and donation for and in her behalf. When Parungao reached of First Instance, Branch 8 rendered a joint decision, the dispositive
the age of majority or on December 20, 1976, she tried to have the portion of which reads:
donation registered. However, she found out that the certificate of
title was missing from where it was supposed to be kept, prompting WHEREFORE, judgment is hereby rendered: In
her to file a petition for reconstitution of title with the Court of First Civil Case No. 115164 —
Instance of Manila. The petition was granted in October 1977.
Parungao registered the deed of donation with the Register of 1) Declaring TCT No. 129092 in the name of Ofelia
Deeds of Manila who cancelled Transfer Certificate of Title No. Parungao null and void; and ordering the Register
17854 and issued in lieu thereof Transfer Certificate of Title No. of Deeds of Manila to cancel said title and to
129092 in the name of Ofelia Parungao. She then filed a motion restore, in lieu thereof, TCT No. 17854 in the name
for exclusion in Special Proceedings No. 73-30-M. of Emilio D. Pascual;

In the meantime, on September 23, 1976, Ursula Pascual executed 2) Ordering Ofelia D. Parungao to pay plaintiff
a deed of absolute sale over the Tondo property in favor of Benjamin P. Reyes the sum of Two Thousand
Benjamin, Oscar, Jose and Emmanuel, all surnamed Reyes. (P2,000.00) Pesos, as and for attorney's fees; and
to pay the costs of suit including all fees which the
On May 2, 1978, Benjamin Reyes, private respondent in G.R. Nos. Register of Deeds may prescribe for the full
73241-42 filed a complaint for declaration of nullity of Transfer implementation of this decision. For lack of merit,
Certificate of Title No. 129092, Register of Deeds of Manila and/or the counterclaim is dismissed.
reconveyance of deed of title against Ofelia Parungao and Rosario
Duncil, with the then Court of First Instance of Manila. The case In Civil Case No. 119359 —
was docketed as Civil Case No. 115164.
1) Dismissing the complaint for want of merit; and
In their answer with compulsory counterclaim Parungao and
Duncil, denied Reyes' assertion of ownership over the Tondo
property. On November 6, 1978, Ofelia Parungao filed a complaint
2) On the counterclaim, ordering Ofelia Parungao We first discuss the issue on jurisdiction. The questioned August
to pay defendant defendants the sum of Two 1, 1976 order of the then Court of First Instance of Pampanga in
Thousand (P2,000.00) Pesos as and for attorney's S.P. Proc. No. 73-30-M categorically stated that the exclusion from
fees.' the inventory of the estate of the deceased Dr. Emilio D. Pascual
was "without prejudice to its final determination in a separate
Parungao appealed the decision to the then Intermediate Appellate action." The provisional character of the exclusion of the contested
Court. The decision was, however, affirmed, with costs against the properties in the inventory as stressed in the order is within the
appellant. jurisdiction of the probate court. This was stressed in the case
of Cuizon v. Ramolete (129 SCRA 495 [1984]) which we cited in
The Intermediate Appellate Court decision is now the subject the case of Morales v. Court of First Instance of Cavite, Branch
matter in G.R. Nos. 73241-42. V (146 SCRA 373 [1986]):

On January 29, 1986, we issued a minute resolution denying the It is well-settled rule that a probate court or one in
above petition for lack of merit. The resolution became final and charge of proceedings whether testate or intestate
executory on March 10, 1986 and on this same day the entry of cannot adjudicate or determine title to properties
judgment was effected. The entry of judgment was however set claimed to be a part of the estate and which are
aside in the resolution dated January 19, 1987 on the ground that equally claimed to belong to outside parties. All that
the January 29, 1986 resolution was not received by the the said court could do as regards said properties
petitioners' counsel of record. The petitioner was granted leave to is to determine whether they should or should not
file a motion for reconsideration of the January 29, 1986 resolution. be included in the inventory or list of properties to
be administered by the administrator. If there is no
dispute, well and good; but if there is, then the
The motion for reconsideration is now before us for resolution
parties, the administrator, and the opposing parties
petition.
have to resort to an ordinary action for a final
determination of the conflicting claims of title
The issues raised in these petitions are two-fold: (1) In G.R. No. L- because the probate court cannot do so (Mallari v.
45394, petitioner Pedro Dalusong questions the jurisdiction of the Mallari, 92 Phil. 694; Baquial v. Amihan, 92 Phil.
probate court to exclude the properties donated to Ursula Pascual 501). i•t•c-aüsl

in its Order dated August 1, 1976, and (2) In G.R. No. L-45262 and
G.R. Nos. 73241-42 Ruperto Reyes, Reynaldo C. San Juan, in his
Similarly, in Valero Vda. de Rodriguez v. Court of
capacity as special administrator of the estate of Emilio Pascual
Appeals, (91 SCRA 540) we held that for the
(petitioner in G.R. No.
purpose of determining whether a certain property
L- 45262), Ofelia Parungao and Rosario Duncil (petitioners in G.R.
should or should not be included in the inventory,
Nos. 7324142) question the appellate court's finding that the
the probate court may pass upon the title thereto
"Donation Mortis Causa" executed by Emilio Pascual in favor of his
but such determination is not conclusive and is
sister Ursula Pascual was actually a Donation Inter Vivos.
subject to the final decision in a separate action
regarding ownership which may be instituted by the
parties (3 Moran's Comments on the Rules of
Court, 1970 Edition, pages 448449 and 473; CAUSA unto the said DONEE URSULA D.
Lachenal v. Salas, PASCUAL, her heirs and assigns, all of my rights,
L-42257, June 14, 1976, 71 SCRA 262, 266). title and interest, in and to the following parcels of
land with all the improvements thereon, situated in
On the second issue, it may be noted that the Court of Appeals did the Municipality of Apalit, Pampanga, and more
not pass upon the authenticity of the 1969 donation to Parungao particularly described and Identified as follows:
because of its finding that the 1966 donation to Pascual was inter
vivos. The petitioners do not press the authenticity of the 1969 xxx xxx xxx
donation as their challenge centers on whether or not the 1966
donation was inter vivos. However, the trial court has a lengthy (Enumerated herein are 41 parcels of land)
discussion reflecting adversely on the authenticity of the 1969
donation to Parungao. Also included in this DONATION MORTIS CAUSA
are all personal properties of the DONOR in the
The petitioners assert that the 1966 donation was null and void form of cash money or bank deposits and
since it was not executed with the formalities of a will. Therefore, insurance in his favor, and his real properties
the petitioners in G.R. No. L-45262 insist that the donated situated in other towns of Pampanga, such as San
properties should revert to the estate of Emilio Pascual while the Simon, and in the province of Rizal, San Francisco
petitioners in G.R. Nos. 73241-42 insist that the donation of real del Monte and in the City of Manila.
property inter vivos in favor of Ofelia Parungao be given effect.
That the said donor has reserved for himself
The subject deed of donation titled "DONATION MORTIS CAUSA" sufficient property to maintain him for life; and that
duly notarized by a certain Cornelio M. Sigua states: the said DONEE does hereby ACCEPT and
RECEIVE this DONATION MORTIS CAUSA and
That Dr. Emilio D. Pascual, Filipino, single, of age further does express his appreciation and
and resident of Apalit, Pampanga, hereinafter gratefulness for the generosity of said DONOR;
called the DONOR and Ursula D. Pascual, Filipino, (Rollo of G.R. No. L-45262, pp. 12-16)
single, also of age, resident of and with postal
address at Apalit, Pampanga, hereinafter called xxx xxx xxx
the DONEE, have agreed, as they do hereby
agree, to the following, to wit: Considering the provisions of the DONATION MORTIS CAUSA the
appellate court ruled that the deed of donation was actually a
That the said DONOR, Dr. Emilio D. Pascual, for donation inter vivos although denominated as DONATION
and in consideration of the love and affection which MORTIS CAUSA.
he has and bears unto the said DONEE, as also for
the personal services rendered by the said DONEE It is, now a settled rule that the title given to a deed of donation is
to the said DONOR, does hereby by these presents not the determinative factor which makes the donation "inter vivos"
voluntarily GIVE, GRANT, and DONATE MORTIS or "mortis causa" As early as the case of Laureta v. Manta, et al.,
(44 Phil. 668 [1928]) this Court ruled that the dispositions in a deed ... a reward for the services which he is rendering
of donation-whether "inter vivos" or "mortis causa" do not depend me, and as a token of my affection toward him and
on the title or term used in the deed of donation but on the of the fact that he stands high in my estimation, I
provisions stated in such deed. This Court explained hereby donate 'mortis causa to said youth all the
in Concepcion v. Concepcion (91 Phil. 823 [1952]) — properties described as follows:

...But, it is a rule consistently followed by the courts xxx xxx xxx


that it is the body of the document of donation and
the statements contained therein, and not the title I also declare that it is the condition of this donation
that should be considered in ascertaining the that the donee cannot take possession of the
intention of the donor. Here, the donation is entitled properties donated before the death of the donor,
and called donacion onerosa mortis causa. From and in the event of her death the said donee shall
the body, however, we find that the donation was be under obligation to cause a mass to be held
of a nature remunerative rather than onerous. It annually as a suffrage in behalf of my sold, and
was for past services rendered, services which also to defray the expenses of my burial and
may not be considered as a debt to be paid by the funerals.'
donee but services rendered to her freely and in
goodwill. The donation instead of being onerous or It will be observed that the present case and that of
for a valuable consideration, as in payment of a Laureta above cited are similar in that in both cases
legal obligation, was more of remuneratory or the donation was being made as a reward for
compensatory nature, besides being partly services rendered and being rendered, and as a
motivated by affection. token of affection for the donee; the phrase 'mortis
causa was used; the donee to take possession of
We should not give too much importance or the property donated only after the death of the
significance to or be guided by the use of the donor; the donee was under obligation to defray the
phrase 'mortis causa in a donation and thereby to expenses incident to the celebration of the
conclude that the donation is not one of inter vivos. anniversary of the donor's death, including church
In the case of De Guzman et al. v. Ibea et al. (67 fees. The donation in both cases were duly
Phil. 633), this Court through Mr. Chief Justice accepted. In said case of Laureta this Court held
Avancena said that if a donation by its terms is inter that the donation was in praesenti and not a gift in
vivos, this character is not altered by the fact that futuro.
the donor styles it mortis causa.
In the later case of Bonsato et al. v. Court of appeals, et al. (95
In the case of Laureta v. Mata, et al. (44 Phil. 668), Phil. 481 [1954]) this Court, distinguished the characteristics of a
the court held that the donation involved was inter donation inter vivos and "mortis causa" in this wise:
vivos. There, the donor Severa Magno y Laureta
gave the properties involved as —
Did the late Domingo Bonsato, make donations Applying the above principles to the instant petitions, there is no
inter vivos or dispositions post mortem in favor of doubt that the so-called DONATION MORTIS CAUSA is really a
the petitioners herein? If the latter, then the donation inter vivos. The donation was executed by Dr. Pascual in
documents should reveal any or all of the following favor of his sister Ursula Pascual out of love and affection as well
characteristics: as a recognition of the personal services rendered by the donee to
the donor. The transfer of ownership over the properties donated
(1) Convey no title or ownership to the transferee to the donee was immediate and independent of the death of the
before the death of the transferor; or, what amounts donor. The provision as regards the reservation of properties for
to the same thing, that the transferor should retain the donor's subsistence in relation to the other provisions of the
the ownership (fun or naked) and control of the deed of donation confirms the intention of the donor to give naked
property while alive (Vidal v. Posadas, 58 Phil., ownership of the properties to the donee immediately after the
108; Guzman v. Ibea 67 Phil., 633); execution of the deed of donation.

(2) That before his death, the transfer should be With these findings we find no need to discuss the other arguments
revocable by the transferor at will, ad nutum; but raised by the petitioners.
revocability may be provided for indirectly by
means of a reserved power in the donor to dispose WHEREFORE, this Court hereby renders judgment as follows:
of the properties conveyed (Bautista v. Sabiniano,
G.R. No. L- 4326, November 18, 1952); 1) In G.R. Nos. 45262 and 45394 the petitions are DENIED. The
Temporary Restraining Order issued on January 5, 1977 is hereby
(3) That the transfer should be void if the transferor LIFTED; and
should survive the transferee.
2) In G.R. Nos. 73241-42, the motion for reconsideration is
These principles were repeated in the case of Castro v. Court of DENIED. This DENIAL is FINAL.
Appeals (27 SCRA 1076 [1969]), to wit:
SO ORDERED.
Whether a donation is inter vivos or mortis causa
depends upon the nature of the disposition made.
'Did the donor intend to transfer the ownership of
the property donated upon the execution of the
donation? If this is so, as reflected from the
provisions contained in the donation, then it is inter
vivos; otherwise, it is merely mortis causa, or made
to take effect after death.' (Howard v. Padilla and
Court of Appeals, G.R. No. L-7064 and L-7098,
April 22, 1955.
THIRD DIVISION The facts, as culled from the records of the case,
are as follows:
On April 11, 1958, Celestina Ganuelas Vda. de
[G. R. No. 123968. April 24, 2003] Valin (Celestina) executed a Deed of Donation of
Real Property covering seven parcels of land in
[2]

favor of her niece Ursulina Ganuelas (Ursulina), one


URSULINA GANUELAS, METODIO of herein petitioners.
GANUELAS and ANTONIO The pertinent provision of the deed of donation
GANUELAS, vs. HON. ROBERT T. reads, quoted verbatim:
CAWED, Judge of the Regional Trial
Court of San Fernando, La Union xxx
(Branch 29), LEOCADIA G. FLORES,
FELICITACION G. AGTARAP, CORAZON That, for and in consideration of the love and affection
G. SIPALAY and ESTATE OF ROMANA which the DONOR has for the DONEE, and of the
GANUELAS DE LA ROSA, represented faithful services the latter has rendered in the past to the
by GREGORIO DELA ROSA, former, the said DONOR does by these presents transfer
Administrator, respondent. and convey, by way of DONATION, unto the DONEE
the property above, described, to become effective upon
DECISION the death of the DONOR; but in the event that the
DONEE should die before the DONOR, the present
CARPIO-MORALES, J.:
donation shall be deemed rescinded and of no further
force and effect.
The present petition for review under Rule 45 of
the Rules of Court assails, on a question of law, the x x x. [3]

February 22, 1996 decision of the Regional Trial


[1]

Court of San Fernando, La Union, Branch 29, in On June 10, 1967, Celestina executed a
Civil Case No. 3947, an action for declaration of document denominated as Revocation of
nullity of a deed of donation. Donation purporting to set aside the deed of
[4]

donation. More than a month later or on August 18,


1967, Celestina died without issue and any ordering Ursulina to return to them as intestate heirs
surviving ascendants and siblings. the possession and ownership of the
properties. They likewise prayed for the cancellation
After Celestinas death, Ursulina had been
of the tax declarations secured in the name of
sharing the produce of the donated properties with
Ursulina, the partition of the properties among the
private respondents Leocadia G. Flores, et al.,
intestate heirs of Celestina, and the rendering by
nieces of Celestina.
Ursulina of an accounting of all the fruits of the
In 1982, or twenty-four years after the execution properties since 1982 and for her to return or pay
of the Deed of Donation, Ursulina secured the the value of their shares.
corresponding tax declarations, in her name, over
The defendants-herein petitioners alleged in
the donated properties, to wit: Tax Declarations
their Answer that the donation in favor of Ursulina
[6]

Nos. 18108, 18109, 18110, 18111, 18112, 18113


was inter vivos as contemplated under Article 729
and 18114, and since then, she refused to give
of the Civil Code, hence, the deed did not have to
[7]

private respondents any share in the produce of the


comply with the requirements for the execution of a
properties despite repeated demands.
valid will; the Revocation of Donation is null and void
Private respondents were thus prompted to file as the ground mentioned therein is not among those
on May 26, 1986 with the RTC of San Fernando, La provided by law to be the basis thereof; and at any
Union a complaint against Ursulina, along with
[5]
rate, the revocation could only be legally enforced
Metodio Ganuelas and Antonio Ganuelas who were upon filing of the appropriate complaint in court
alleged to be unwilling plaintiffs. The complaint within the prescriptive period provided by law, which
alleged that the Deed of Donation executed by period had, at the time the complaint was filed,
Celestina in favor of Ursulina was void for lack of already lapsed.
acknowledgment by the attesting witnesses thereto
By Decision of February 22, 1996, the trial court,
before notary public Atty. Henry Valmonte, and the
holding that the provision in the Deed of Donation
donation was a disposition mortis causa which
that in the event that the DONEE should
failed to comply with the provisions of the Civil Code
predecease the DONOR, the donation shall be
regarding formalities of wills and testaments, hence,
deemed rescinded and of no further force and effect
it was void. The plaintiffs-herein private
is an explicit indication that the deed is a
respondents thus prayed that judgment be rendered
donation mortis causa, found for the plaintiffs-
[8]
On herein petitioners argument that the
herein private respondents, thus: Revocation of Donation was void as the ground
mentioned therein is not one of those allowed by law
WHEREFORE the Court renders judgment declaring to be a basis for revocation, the trial court held that
null and void the Deed of Donation of Real Property the legal grounds for such revocation as provided
executed by Celestina Ganuelas, and orders the partition under the Civil Code arise only in cases of
of the estate of Celestina among the intestate heirs. donations inter vivos, but not in donations mortis
causa which are revocable at will during the lifetime
SO ORDERED. [9]
of the donor. The trial court held, in any event, that
given the nullity of the disposition mortis causa in
The trial court also held that the absence of a view of a failure to comply with the formalities
reservation clause in the deed implied that required therefor, the Deed of Revocation was a
Celestina retained complete dominion over her superfluity.
[13]

properties, thus supporting the conclusion that the


donation is mortis causa, and that while the deed
[10] Hence, the instant petition for review, petitioners
contained an attestation clause and an contending that the trial court erred:
acknowledgment showing the intent of the donor to
effect a postmortem disposition, the I. . . . WHEN IT DECLARED NULL AND
acknowledgment was defective as only the donor VOID THE DONATION EXECUTED
and donee appear to have acknowledged the deed BY CELESTINA GANUELAS;
before the notary public, thereby rendering the
II. . . . WHEN IT UPHELD THE
entire document void. [11]

REVOCATION OF DONATION;
Lastly, the trial court held that the subsequent
execution by Celestina of the Revocation of III. . . . IN RENDERING ITS DECISION
Donation showed that the donor intended the ADVERSE TO PETITIONER
revocability of the donation ad nutum, thus URSULINA GANUELAS. [14]

sustaining its finding that the conveyance


was mortis causa. [12] Petitioners argue that the donation contained in
the deed is inter vivos as the main consideration for
its execution was the donors affection for the donee
rather than the donors death; that the provision on
[15]
Donation inter vivos differs from donation mortis
the effectivity of the donationafter the donors causa in that in the former, the act is immediately
deathsimply meant that absolute ownership would operative even if the actual execution may be
pertain to the donee on the donors death; and that
[16]
deferred until the death of the donor, while in the
since the donation is inter vivos, it may be revoked latter, nothing is conveyed to or acquired by the
only for the reasons provided in Articles donee until the death of the donor-testator. The [23]

760, 764 and 765 of the Civil Code.


[17] [18] [19]
following ruling of this Court in Alejandro v.
Geraldez is illuminating: [24]

In a letter of March 16, 1998, private [20]

respondent Corazon Sipalay, reacting to this Courts If the donation is made in contemplation of the donors
January 28, 1998 Resolution requiring private death, meaning that the full or naked ownership of the
respondents to SHOW CAUSE why they should not donated properties will pass to the donee only because
be disciplinarily dealt with or held in contempt for of the donors death, then it is at that time that the
failure to submit the name and address of their new donation takes effect, and it is a donation mortis
counsel, explains that they are no longer interested causa which should be embodied in a last will and
in pursuing the case and are willing and ready to testament.
waive whatever rights they have over the properties
subject of the donation. Petitioners, who were But if the donation takes effect during the donors
required to comment on the letter, by Comment of lifetime or independently of the donors death, meaning
October 28, 1998, welcome private respondents
[21]
that the full or naked ownership (nuda proprietas) of the
gesture but pray that for the sake of enriching donated properties passes to the donee during the donors
jurisprudence, their [p]etition be given due course lifetime, not by reason of his death but because of the
and resolved. deed of donation, then the donation is inter vivos.
The issue is thus whether the donation is inter
vivos or mortis causa. The distinction between a transfer inter
vivos and mortis causa is important as the validity
Crucial in the resolution of the issue is the or revocation of the donation depends upon its
determination of whether the donor intended to nature. If the donation is inter vivos, it must be
transfer the ownership over the properties upon the executed and accepted with the formalities
execution of the deed. [22]
prescribed by Articles 748 and 749 of the Civil
[25] [26]
Code, except when it is onerous in which case the The phrase to become effective upon the death
rules on contracts will apply. If it is mortis causa, the of the DONOR admits of no other interpretation but
donation must be in the form of a will, with all the that Celestina intended to transfer the ownership of
formalities for the validity of wills, otherwise it is void the properties to Ursulina on her death, not during
and cannot transfer ownership. [27]
her lifetime.
[29]

The distinguishing characteristics of a More importantly, the provision in the deed


donation mortis causa are the following: stating that if the donee should die before the donor,
the donation shall be deemed rescinded and of no
1. It conveys no title or ownership to the transferee further force and effect shows that the donation is a
before the death of the transferor; or, what amounts to postmortem disposition.
the same thing, that the transferor should retain the
ownership (full or naked) and control of the property As stated in a long line of cases, one of the
while alive; decisive characteristics of a donation mortis
causa is that the transfer should be considered void
2. That before his death, the transfer should be if the donor should survive the donee. [30]

revocable by the transferor at will, ad nutum; but More. The deed contains an attestation clause
revocability may be provided for indirectly by means of expressly confirming the donation as mortis causa:
a reserved power in the donor to dispose of the
properties conveyed; SIGNED by the above-named donor, Celestina
Ganuelas, at the foot of this deed of donation mortis
3. That the transfer should be void if the transferor causa, consisting of two (2) pages and on the left
should survive the transferee.[28]
margin of each and every page thereof in the joint
presence of all of us who at her request and in her
In the donation subject of the present case, presence and that of each other have in like manner
there is nothing therein which indicates that any subscribed our names as witnesses. (Emphasis
[31]

right, title or interest in the donated properties was supplied)


to be transferred to Ursulina prior to the death of
Celestina. To classify the donation as inter vivos simply
because it is founded on considerations of love and
affection is erroneous. That the donation was donated property to the donee only after the formers
prompted by the affection of the donor for the donee death. Like in the present case, the deeds therein
and the services rendered by the latter is of no did not contain any clear provision that purports to
particular significance in determining whether the pass proprietary rights to the donee prior to the
deed constitutes a transfer inter vivos or not, donors death.
because a legacy may have an identical
As the subject deed then is in the nature of
motivation. In other words, love and affection may
[32]

a mortis causa disposition, the formalities of a will


also underline transfers mortis causa. [33]

under Article 728 of the Civil Code should have


In Maglasang v. Heirs of Cabatingan, the [34]
been complied with, failing which the donation is
deeds of donation contained provisions almost void and produces no effect. [35]

identical to those found in the deed subject of the


As noted by the trial court, the attesting
present case:
witnesses failed to acknowledge the deed before
That for and in consideration of the love and affection the notary public, thus violating Article 806 of the
of the DONOR for the DONEE, x x x the DONOR does Civil Code which provides:
hereby, by these presents, transfer, convey, by way of
Art. 806. Every will must be acknowledged before a
donation, unto the DONEE the above-described
notary public by the testator and the witnesses. The
property, together with the buildings and all
notary public shall not be required to retain a copy of
improvements existing thereon, to become effective
the will, or file another with the office of the Clerk of
upon the death of the DONOR; PROVIDED,
Court. (Emphasis supplied)
HOWEVER, that in the event that the DONEE should
die before the DONOR, the present donation shall be The trial court did not thus commit any reversible
deemed automatically rescinded and of no further force error in declaring the Deed of Donation to be mortis
and effect.(Underscoring supplied) causa.
In that case, this Court held that the donations WHEREFORE, the petition is hereby DENIED
were mortis causa, for the above-quoted provision for lack of merit.
conclusively establishes the donors intention to SO ORDERED.
transfer the ownership and possession of the

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