SIOCHI VS GOZON

Facts:

Alfredo Gozon was married to Elvira Gozon. They have a daughter named Winifred. On December 23,
1991, Elvira filed with the Cavite City Regional Trial Courta petition for legal separation against her husband
Alfredo. On January 2, 1992, Elvira filed a notice of lis pendens, which was then annotated on  tct no. 5357.
The lis pendens covered the 30, 000 sq m. parcel of land situated in Malabon, Metro Manila and is registered
in the name of “Alfredo Gozon , married to Elvira Gozon”. While the legal separation case was still pending,
Alfredo entered into an agreement with Mario Siochi who paid P5 million in earnest money and took
possession of the property. The title still has the notice of lis pendens. 

Meanwhile, on June 29, 1994, the Cavite RTC granted the legal separation. Their conjugal partnership
of gains are declared dissolved and liquidated but Alfredo – the offending spouse, is deprived of his share in
the net profits and the same is awarded to their child Winifred R. Gozon whose custody is awarded to
petitioner (Elvira).

On August 22, 1994, Alfred executed a Deed of Donation over the property in favour of Winifred.
Malabon RTC issued new TCT in the name of Winifred without annotating the agreement between Alfredo and
Mario Siochi, nor the notice of lis pendens filed by Elvira, the wife. Then, through an SPA, Winifred gave
authority to her father, Alfred, to sell the lot. Alfred sold it to Inter-Dimensional Realty for P18 million. A TCT
was issued to Inter-Dimensional Realty. 

Mario Siochi then filed a case with Malabon RTC for specific performance and damages, annulment of
donation and sale to Winifred and Inter-Dimensional respectively, with preliminary mandatory and prohibitory
injunction and/or temporary restraining order and to remove notice of lis pendens over title of land.  The
Malabon RTC upheld the original agreement to buy and sell between Mario and Alfredo and declared void the
sale by Alfredo and Winifred to Inter-Dimensional. However, Court of Appeals said that the agreement
between Alfredo and Mario is void because it was entered into without the consent of Elvira and Alfredo’s half
undivided share has been forfeited in favour of Winifred by the grant of legal separation by the Cavite RTC.

Issue:

Whether or not Alfredo may sell the conjugal property, without the consent of Elvira.

Ruling:

No. Under Art 124 of the Family Code, if one of the spouses was incapacitated or otherwise unable to
participate in the administration of the properties, the other spouse may assume sole powers
of administration. These powers, however do not include the power to dispose or encumber the properties
which require a court order or the written consent of the other spouse. (this is the same as Art 96 on
Community Property). So even if Alfredo is the sole administrator of the property, he still cannot sell the same
without the written consent of Elvira or the authority of the Court.

The SC also held that the CA erred in saying that the ½ undivided share of Alfredo was forfeited in
favour of Winifred. Art 63 (Effects of legal separation) in relation to Art 43(2) (Effects of termination of
subsequent marriage) provides that the guilty spouse in legal separation forfeits his share in the net profits of
the property. The Court said, “Clearly, what is forfeited in favour of Winifred is not Alfredo’s share in
the conjugal partnership property but merely in the net profits of the conjugal partnership property.”