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9 Mindanao Dev - T Vs CA
9 Mindanao Dev - T Vs CA
COURT REPORTS ANNOTATED VOLUME 113
*
No. L49087. April 5, 1982.
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* SECOND DIVISION
430
the registration of his land and for Juan Cruz to shoulder the
expenses for the registration of the land sold to him. The
stipulation does not categorically create an obligation on the part
of Ang Bansing to hold the property in trust for Juan Cruz.
Hence, there is no express trust. It is essential to the creation of
an express trust that the settlor presently and unequivocally
make a disposition of property and make himself the trustee of
the property for the benefit of another.
Same; No express trust is created where vendor merely agreed
to work for the titling of land sold at his expense.—While Ang
Bansing had agreed in the deed of sale that he will work for the
titling of “the entire area of my land under my own expenses,” it is
not clear therefrom whether said statement refers to the 30
hectare parcel of land or to that portion left to him after the sale.
A failure on the part of the settlor definitely to describe the
subjectmatter of the supposed trust or the beneficiaries or object
thereof is strong evidence that he intended no trust.
Same; Clear and unequivocal language is necessary to create a
trust, not mere use of precatory language.—Clear and unequivocal
language is necessary to create a trust and mere precatory
language and statements of ambiguous nature, are not sufficient
to establish a trust. As the Court stated in the case of De Leon vs.
Packson, a trust must be proven by clear, satisfactory and
convincing evidence; it cannot rest on vague and uncertain
evidence or on loose, equivocal or indefinite declarations.
Considering that the trust intent has not been expressed with
such clarity and definiteness, no express trust can be deduced
from the stipulation aforequoted.
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Barredo,J.:
I reserve my vote.
Aquino,J., dissenting:
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was issued to him for that lot. As already noted, Ang Bansing in
that affidavit swore that he intended to cede and transfer that lot
to Juan Cruz after the survey (Exh. C). That sworn statement
should be considered in conjunction with the stipulation in the
1939 deed of sale that Ang Bansing would undertake the titling of
the whole Lot No. 1846 and that the registration expenses
corresponding to Lot No. 1846C would be borne by Juan Cruz,
the vendee of that subdivision lot (Exh. A).
Same; Same; Actions; Equity; Where express trust is created,
beneficiary should be given equitable action to recover.—There
being an express trust in this case, the equitable action to compel
the trustee to reconvey the land registered in his name in trust for
the benefit of the cestui que trust does not prescribe (Manalang vs.
Canlas, 94 Phil. 776; Ramos vs. Ramos, L19872, December 3,
1974, 61 SCRA 284, 299).
Same; Prescription; Action on express trust does not prescribe,
except from time it is repudiated.—The defense of prescription
can
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“That I hereby agree to work for the titling of the entire area of
my land under my own expenses and the expenses for the titling
of the portion sold to me
1
shall be under the expenses of the said
Juan Cruz Yap Chuy”.
After the sale, the land of Ang Bansing was surveyed and
designated as Lot 664B, Psd1638. Lot 664B was further
subdivided into five (5) lots and the portion sold to Juan
Cruz Yap Chuy, shortened to Juan Cruz, was designated as
Lot 664B3,
2
with an area of 61.107 square meters, more or
less. On June 1517 and December 15, 1939, a cadastral
survey was made and Lot 664B3 was designated as Lot
1846C of the Davao Cadastre.
On December 23, 1939, Juan Cruz sold Lot 1846C to
the Commonwealth of the Philippines for the amount of
3
P6,347.50. On that same day, Juan Cruz, as
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P6,347.50. On that same day, Juan Cruz, as vendor, and
C.B. Cam and Miguel N. Lansona, as sureties, executed a
surety bond in favor of the vendee 4to guarantee the
vendor’s absolute title over the land sold.
The cadastral survey plan5
was approved by the Director
of Lands on July 10, 1940, and on March 7, 1941, Original
Certificate of Title No. 26 was issued in the names of
Victoriana Ang Bansing, Orfelina Ang Bansing, and
Francisco Ang Bansing, as claimants of the land, pursuant
to Decree No. 745358 issued on July 29, 1940. On March
31, 1941, OCT No. 26 was cancelled pursuant to a Deed of
Adjudication and Transfer Certificate of Title6 No. 1783 was
issued in the name of Francisco Ang Bansing.
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434
On that day, March 31, 1941, Ang Bansing sold Lot 1846A
to Juan Cruz and TCT No. 1783 was cancelled. TCT No.
1784 was issued in the name of Juan Cruz, for Lot 1846A
and TCT No. 1785 was issued in the name of Ang Bansing
for the remaining Lots 1846B, 1846C, 1846D, and 1846
E. Later, Ang Bansing sold two subdivision lots of Lot
1846B, namely: Lot 1846B2C and Lot 1846B1 to
Vedasto Corcuera for which TCT No. 2551 and TCT No.
2552, respectively, were issued in the name of the said
Vedasto Corcuera on August 10, 1946. Thereafter, Lot
1848A, with an area of 9.6508 hectares, and Lots 1846BA
and 1848B2D, all subdivided portions of Lot 1846B,
were similarly conveyed to Juan Cruz for which TCT No.
2599 and TCT No. 2600, respectively, were issued in the
name of Juan Cruz on September 26, 1946. TCT No. 2601
was issued in the name of Ang Bansing for the remainder
of the property, including the lot in question. Then, another
portion of 1846B, designated in the subdivision plan as Lot
1848B2B was sold to Juan Cruz for which TCT No. 184
was issued in the latter’s name. On November 28, 1946,
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9
to his client, but Ang Bansing refused. Consequently, on
April 11, 1969, the Mindanao Development Authority filed
a complaint against Francisco Ang Bansing before the
Court of First Instance of Davao City, docketed therein as
Civil Case No. 6480, for the reconveyance of the title over
Lot 1846C, alleging, among others, the following:
x x x x x x x x x
x x x x x x x x x
‘That I hereby agree to work for the titling of the entire area of my land
under my own expense and the expenses for the titling of the portion sold
to me shall be under the expenses of the said Juan Cruz Yap Chuy.’
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9 Id.,pp. 8990.
10 Id., pp. 212.
436
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because he knew all the time that the alleged sale in his
favor was per se null and11 void he also knew that no sale
was ever consummated.”
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11 Id.,pp. 3754.
12 Id.,pp. 185198.
13 Rollo, pp. 4454.
14 Art. 1441, Civil Code.
437
“That I hereby agree to work for the titling of the entire area of
my land under my own expenses and the expenses for the titling
of the portion sold to me shall be under the expenses of said Juan
Cruz Yap Chuy.”
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438
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17 Warner vs. Burlington Fed. Sav. & L. Asso., 168 ALR 1265, 49 A2d
93.
18 Bogert on Trusts and Trustees, Sec. 48.
19 Id., Sec. 46.
20 11 Phil. 1267.
21 Record on Appeal, p. 189.
22 Rollo, p. 35.
439
31, 1941, Ang Bansing sold Lot 1846A to the said Juan
Cruz for which TCT No. 1784 was issued in the name of
Juan Cruz. Subsequently thereafter, Lot 1848A, with an
area of 9.6508 hectares, and Lots 1846A and 1848B2D,
all subdivided portions of Lot 1846B, were similarly
conveyed to the said Juan Cruz for which TCT No. 2599
and TCT No. 2600, respectively, were issued in the name of
Juan Cruz on September 26, 1946. Then, another portion of
Lot 1846B, designated in the subdivision plan as Lot 1848
B2B, was sold to Juan Cruz for which TCT No. 184 was
issued in his name on November 28, 1948. Despite these
numerous transfers of portions of the original 30hectare
parcel of land of Ang Bansing to Juan Cruz and the
issuance of certificates of title in the name of Juan Cruz,
the latter never sought the transfer of the title to Lot 1846
C in his name. For sure, if the parties had agreed that Ang
Bansing shall hold the property in trust for Juan Cruz
until after the former shall have obtained a certificate of
title to the land, the latter would have asked for the
reconveyance of the title to him in view of the surety bond
executed by him in favor of the Commonwealth
Government wherein he warrants his title over the
property. The conduct of Juan Cruz is inconsistent with a
trust and may well have probative effect against a trust.
But, even granting, arguendo, that an express trust had
been established, as claimed by the herein petitioner, it
would appear that the trustee had repudiated the trust and
the petitioner herein, the alleged beneficiary to the trust,
did not take any action therein until after the lapse of 23
years. Thus, in its Reply to the Defendant’s Answer, filed
on June 29, 1969, the herein petitioner admitted that “after
the last war the City Engineer’s Office of Davao City made
repeated demands on the defendants for the delivery and
conveyance to the Com
440
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filed, more than 28 years had passed. Clearly, the action for
reconveyance had prescribed.
Besides, the enforcement of the constructive trust that
may have been impressed upon the title of Ang Bansing
over Lot29
1846C of the Davao Cadastre is barred by
laches. It appears that the deed of sale in favor of the
Commonwealth Government was executed by Juan Cruz on
December 23, 1939, during the cadastral proceedings, and
even before the cadastral survey plan was approved by the
Director of Lands on July 10, 1940. But, the vendee therein
did not file an answer, much less an opposition to the
answer of Ang Bansing, in the said cadastral proceedings.
The judgment rendered in the said cadastral proceeding,
awarding the lot in question to Ang Bansing, is already
final. After an inexcusable delay of more than 28 years and
acquiescence to existing conditions, it is now too late for the
petitioner to complain.
WHEREFORE, the petition should be, as it is hereby,
DENIED. No costs.
SO ORDERED.
AQUINO, J.:
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443
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