Miguel Cuenco vs Concepcion Cuenco G.R. No.

149844 October 13, 2004

Facts:
Respondent filed a complaint for specific performance against, the petitioner,
concerning ownership of Lot 903-A-6. The respondent claimed that her father, the late
Don Mariano Jesus Cuenco, and the petitioner had initially formed a law office together.
After winning certain legal cases, a portion of the awarded land was intended for her
father, and it was held in trust by the petitioner. However, the petitioner later donated
portions of the land to other family members, excluding the respondent. The respondent
initiated a lawsuit to assert her right to the land. The petitioner argued that he was the
absolute owner of the land and that he didn't donate any portion of it to the respondent
because of her alleged lack of care and support during his sickness.
The Court of Appeals ruled in favor of the respondent, finding that she had the legal
right of ownership over Lot 903-A-6. The court held that the petitioner merely held the
property in trust for the respondent, and her right of action was not barred by res
judicata.
Issue:
Whether or not there was an implied trust between Miguel and Don Mariano
Held:
Yes. The Court held that review of the records shows that indeed there is an implied
trust between the parties. Implied trusts are those that, "without being express, are
deducible from the nature of the transaction as matters of intent [;] or which are
superinduced on the transaction by operation of law as a matter of equity, independently
of the particular intention of the parties. Implied trusts may either be resulting or
constructive trusts, both coming into being by operation of law."
In this case, Lot 903-A was originally a one-half portion of Lot 903 given as attorney's
fees. It constituted Mariano's share in the attorney's fees, creating an implied trust
where Miguel held the property in trust for Mariano. Second, Lot 903-A remained
undivided and untouched by Miguel from the time it was titled in his name in 1938.
Miguel did not object to the subdivision and allocation of the property to Mariano's six
children and readily surrendered his Certificate of Title. Further, all Mariano's children,
shouldered the expenses for the property's subdivision and took possession of their
respective portions of the property. Miguel only started paying real property taxes on Lot
903-A-6, after Mariano's death. These circumstances strongly support Concepcion's
equitable ownership of Lot 903-A-6 and justify her claim against Miguel.