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SUPREME COURT REPORTS ANNOTATED VOLUME 185 04/08/2019, 6+13 PM
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* THIRD DIVISION.
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FERNAN, C.J.:
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de Fuentebella
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sold said lots for P6,000.00 to Rosendo
Alvarez. Hence, on April 1, 1958. TCT Nos. T-23165 and T-
23166 covering Lots 773-A 10
and 773-B were respectively
issued to Rosendo Alvarez.
Two years later or on May 26, 1960, Teodora Yanes and
the children of her brother Rufino, namely, Estelita,
Iluminado and Jesus, filed in the Court of First Instance of
Negros Occidental a complaint against Fortunato Santiago,
Arsenia Vda. de Fuentebella, Alvarez and the Register of
Deeds of Negros Occidental for the „return‰ of the
ownership and possession of Lots 773 and 823. They also
prayed that an accounting of the produce of the land from
1944 up to the filing of the complaint be made by the
defendants, that after court approval of said accounting,
the share or money equivalent due the plaintiffs be
delivered to them, and that defendants be ordered to pay
plaintiffs
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P500.00 as damages in the form of attorneyÊs
fees.
During the pendency in court of said case or on
November 13, 1961, Alvarez sold Lots 773-A, 773-B and 12
another lot for P25,000.00 to Dr. Rodolfo Siason.
Accordingly,
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TCT Nos. 30919 and 30920 were issued to
Siason, who, thereafter,14declared the two lots in his name
for assessment purposes.
Meanwhile, on November 6, 1962, Jesus Yanes, in his
own behalf and in behelf of the other plaintiffs, and
assisted by their counsel, filed a manifestation in Civil
Case No. 5022 stating that the therein plaintiffs „renounce,
forfeit and quitclaims (sic) any claim, monetary or
otherwise, against the defendant Arsenia Vda. 15 de
Fuentebella in connection with the above-entitled case.‰
On October 11, 1963, a decision was rendered by the
Court of First Instance of Negros Occidental in Civil Case
No. 5022, the dispositive portion of which reads:
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9 Exh. 3-Alvarez.
10 Exh. 2-Siason.
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21 Exhibit 6.
22 Exhibit 78.
23 Exhibit 9.
24 Civil Case No. 8474.
25 Record on Appeal, pp. 8-9.
26 Record on Appeal, p. 36.
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SUPREME COURT REPORTS ANNOTATED VOLUME 185 04/08/2019, 6+13 PM
A. The case against the defendant Dr. Rodolfo Siason and the
Register of Deeds are (sic) hereby dismissed.
B. The defendants, Laura, Flora and Raymundo, all surnamed
Alvarez being the legitimate children of the deceased
Rosendo Alvarez are hereby ordered to pay jointly and
severally the plaintiffs the sum of P20,000.00 representing
the actual value of Lots Nos. 773-A and 773-B of Murcia
Cadastre, Negros Occidental; the sum of P2,000.00 as actual
damages suffered by the plaintiffs; the sum of P5,000.00
representing moral damages and the sum of P2,000 as
attorneyÊs fees, all with legal rate of interest from date of
the filing of this complaint up to final payment.
C. The cross-claim filed by the defendant Dr. Rodolfo Siason
against the defendants, Laura, Flora and Raymundo, all
surnamed Alvarez is hereby dismissed.
D. Defendants, Laura, Flora and Raymundo, all surnamed
Alvarez, are hereby ordered to pay the costs of this suit.
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SO ORDERED.‰
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27 Ibid., p. 63.
28 Ibid, pp. 95-99.
29 Record on Appeal, pp. 100-101.
30 Porfirio V. Sison, Jr. J., ponente. Abdulwahid A. Bidin, Marcelino R.
Veloso and Desiderio P. Jurado, JJ. concurring.
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31 Rollo, p. 32.
32 Rollo, p. 32.
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33 Rollo, p. 119.
34 Rollo, p. 27.
35 Miranda v. C.A., 141 SCRA 302 [1986].
36 Ngo Bun Tiong v. Judge Sayo, G.R. No. 45825, June 30, 1988.
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ownership and possession of the lots in question. In fact,
Civil Case No. 8474 now under review, arose from the
failure to execute Civil Case No. 5022, as subject lots can
no longer be reconveyed to private respondents Yaneses,
the same having been sold during the pendency of the case
by the petitionersÊ father to Dr. Siason who did not know
about the controversy, there being no lis pendens annotated
on the titles. Hence, it was also settled beyond question
that Dr. Siason is a purchaser-in-good faith.
Under the circumstances, the trial court did not annul
the sale executed by Alvarez in favor of Dr. Siason on
November 11, 1961 but in fact sustained it. The trial court
ordered the heirs of Rosendo Alvarez who lost in Civil Case
No. 5022 to pay the plaintiffs (private respondents herein)
the amount of P20,000.00 representing the actual value of
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„The binding effect of contracts upon the heirs of the deceased party
is not altered by the provision of our Rules of Court that money
debts of a deceased must be liquidated and paid from his estate
before the residue is distributed among said heirs (Rule 89). The
reason is that whatever payment is thus made from the state is
ultimately a payment by the heirs or distributees, since the amount
of the paid claim in fact diminishes or reduces the shares that the
heirs would have been entitled to receive.
„Under our law, therefore, the general rule is that a partyÊs
contractual rights and obligations are transmissible to the
successors.
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Decision affirmed.
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