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SUPREME COURT REPORTS ANNOTATED VOLUME 086

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Case Title: Select some text within a
ROBERTO LABASAN, AVELINO paragraph and click here to
LABASAN, JOSEFINA LABASAN, copy the selected text. Citation
and MARCELA COLOMA, included.
petitioners, vs. ADELA
LACUESTA, DOMINGA LACUESTA
and NORBERTO LACUESTA,
respondents.
16 SUPREME COURT
REPORTS
Citation: 86 SCRA 16
ANNOTATED
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Labasan vs. Lacuesta

Search Result No. L-25931. October 30

1978.*
1. Gelacio by way of donation,
declared the property in his
name under Tax Declaration No. ROBERTO LABASA
55683-C-1 only sometime in
1944. (p. 13, Respondents’ brief; AVELINO LABASA
see also CFI decision, p. 18, JOSEFINA LABASAN, a
Record on Appeal) In Santos v.
Duata, this Court, in affirming a MARCELA COLOM
decision of the Court of Appeals, petitioners, vs. ADE
considered the facts that the
vendor remained in possession of
LACUESTA, DOMING
the land and continued paying LACUESTA a
the taxes thereon significant NORBERTO LACUEST
circumstances which justified a
judgment holding the transaction respondents.
between the parties as an
equitable mortgage and not a
pacto de retro sale, thereby Contracts; Interpretation
applying Article 1602 of the New
Civil Code which the Court held contracts when words app
to be a remedial measure which contrary to evident intention
may be applied retroactively to
cases arising prior to the the parties.—It is a ba
fundamental rule in
interpretation of a contract t
if the terms thereof are cl
and leave no doubt upon
intention of the contract
parties the literal meaning
the stipulation shall control,
when the words appear to
contrary to the evid
intention of the parties,
latter shall prevail over
former.

________________

* FIRST DIVISION.

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