UNIVERSAL ROBINA VS TEVES

TUNIVERSAL ROBINA SUGAR MILLING CORPORATION vs. HEIRS OF ANGEL TEVES

G. R. No. 128574    September 18, 2002

Facts:

          Andres Abanto's heirs executed an “Extrajudicial Settlement of the Estate of the Deceased Andres Abanto and Simultaneous Sale.”[2] In this document, Abanto's heirs adjudicated unto themselves the two lots and sold the (a) unregistered lot of 193,789 square meters to the United Planters Sugar Milling Company, Inc. (UPSUMCO), and (b) the registered lot covered by TCT No. H-37 to Angel M. Teves, for a total sum of P115,000.00.  The sale was not registered.

          Out of respect for his uncle Ignacio Montenegro, who was UPSUMCO's founder and president, Teves verbally allowed UPSUMCO to use the lot covered by TCT No H-37 for pier and loading facilities, free of charge subject to the condition that UPSUMCO shall shoulder the payment of real property taxes and that its occupation shall be co-terminus with its corporate existence. UPSUMCO then built a guesthouse and pier facilities on the property.

Years later, UPSUMCO’s properties were acquired by the Philippine National Bank (PNB).  Later, PNB transferred the same properties to the Asset Privatization Trust (APT) which, in turn, sold the same to the Universal Robina Sugar Milling Corporation (URSUMCO). URSUMCO then took possession of UPSUMCO’s properties, including Teves' lot covered by TCT No. H-37.

Upon learning of URSUMCO's acquisition of his lot, Teves formally asked the corporation to turn over to him possession thereof or the corresponding rentals.   He stated in his demand letters that he merely allowed UPSUMCO to use his property until its corporate dissolution; and that it was not mortgaged by UPSUMCO with the PNB and, therefore, not included among the foreclosed properties acquired by URSUMCO.

URSUMCO refused to heed Teves' demand, claiming that it acquired the right to occupy the property from UPSUMCO which purchased it from Andres Abanto; and that it was merely placed in the name of Angel Teves, as shown by the “Deed of Transfer and Waiver of Rights and Possession” dated November 26, 1987.[7] Under this document, UPSUMCO transferred to URSUMCO its application for agricultural and foreshore lease.  The same document partly states that the lands subject of the foreshore and agricultural lease applications are bounded on the north by the "titled property of Andres Abanto bought by the transferor (UPSUMCO) but placed in the name of Angel Teves".  URSUMCO further claimed that it was UPSUMCO, not Teves, which has been paying the corresponding realty taxes.

Issue:

          Whether or not petitioner herein has the legal capacity to question the validity of the sale

Ruling:

          The Supreme Court held that An innocent purchaser is one who acquired the property for a valuable consideration, not knowing that the title of the vendor or grantor is null and void. He is also one who buys the property of another without notice that some other person has a right to, or interest in, such property and pays a full and fair price for the same, at the time of such purchase, or before he has notice of the claim or interest of some other persons in the property. The concept underscores two important factors: (1) the property which is bought for consideration, and (2) the lack of knowledge or notice of adverse claim or interest prior to the sale.  Both factors are not present insofar as petitioner URSUMCO is concerned.

For one, petitioner acquired almost all of UPSUMCO’S properties for a consideration but failed to prove that the lot covered by TCT No. H - 37 was included therein.  In fact, the lot was not among the properties acquired by petitioner from the APT whose holdings were limited only to those UPSUMCO properties foreclosed by the PNB.  Also, the  “Deed of Transfer and Waiver of Rights and Possession” shows that only the following properties and rights of UPSUMCO were transferred to petitioner URSUMCO:

1.  The guest house and pier at Campuyo site in the Municipality of Manjuyod, Negros Oriental;

2. A parcel of land consisting of twenty five (25) hectares, more or less, leading to the Campuyo pier which is the subject matter of UPSUMCO's agricultural lease application pending with the Bureau of Lands and Land District Officer, Dumaguete City; and

3. Pending application for an industrial or foreshore lease of that portion of the adjacent government land approximately 270,000 square meters, later amended to be 16,000 square meters.

The foregoing list does not specifically include the subject lot.  Admittedly, the same “Deed of Transfer and Waiver of Rights and Possession” states that a “titled property of Andres Abanto bought by the transferor (UPSUMCO) but placed in the name of Angel Teves” is on the northern boundary of the above-mentioned lands subject of the foreshore and agricultural lease applications.[26] However, such description is insufficient to establish that the “titled property” is indeed owned by UPSUMCO.