Beumer - v - Amores

Facts:
1.    Petitioner (Dutch National) and respondent (Filipina) married in 1980. After several years, the RTC Negros Oriental declared the nullity of their marriage in 2000 on the basis of the former's psychological incapacity as contemplated in Article 36 of the Family Code.
2.    Consequently, petitioner filed a Petition for Dissolution of Conjugal Partnership praying for the distribution of their properties of Dumaguete Cadastre claimed to have been acquired during the subsistence of their marriage through purchase and inheritance.
3.    Respondent averred that, with the exception of their 2 residential houses
1.     she and petitioner did not acquire any conjugal properties during their marriage (she used her own personal money to purchase them out of her personal funds; earnings from selling jewelry as well as products from Avon, Triumph and Tupperware and others by way of inheritance). She submitted a joint affidavit executed by her and petitioner attesting to the fact that she purchased the lots and improvements thereon using her own money.
2.    petitioner transferred to their second house and brought along with him certain personal properties, consisting of drills, a welding machine, grinders, clamps, etc. worth P 500, 000
4.    During trial, petitioner testified that while the properties were registered in the name of respondent
1.    these properties were acquired with the money he received from the Dutch government as his disability benefit
2.    the joint affidavit they submitted before the Register of Deeds of Dumaguete City was contrary to Article 89 of the Family Code, hence, invalid.
5.    RTC Ruling
1.    The 6 parcels of land are declared paraphernal properties of respondent Avelina Amores due to the fact that while these real properties were acquired by onerous title during their marital union, Willem Beumer, being a foreigner, is not allowed by law to acquire any private land in the Philippines, except through inheritance.
2.    The personal properties, are declared to be exclusively owned by the petitioner.
3.    The two houses are hereby declared to be co-owned by the petitioner and the respondent since these were acquired during their marital union and since there is no prohibition on foreigners from owning buildings and residential units.
6.    CA Ruling
1.    Petitioner elevated the matter to the CA, he insisted that the money used to purchase the foregoing properties came from his own capital funds and that they were registered in the name of his former wife only because of the constitutional prohibition against foreign ownership. He prayed for reimbursement of(1/2) of the value of what he had paid in the purchase of the said properties, waiving the other half in favor of his estranged ex-wife.
2.    CA promulgated a Decision affirming in toto the judgment rendered by the RTC Negros Oriental. The CA stressed the fact that petitioner was "well-aware of the constitutional prohibition for aliens to acquire lands in the Philippines." Hence, he cannot invoke equity to support his claim for reimbursement.

Issue: WON petitioner can invoke equity to support his claim for reimbursement

Held/Ratio: DENIED.
            In Re: Petition For Separation of Property-Elena Buenaventura Muller v. Helmut Muller, Helmut Muller cannot seek reimbursement on the ground of equity where it is clear that he willingly and knowingly bought the property despite the prohibition against foreign ownership of Philippine land enshrined under Section 7, Article XII of the 1987 Philippine Constitution. Undeniably, petitioner openly admitted that he "is well aware of the [above-cited] constitutional prohibition" and even asseverated that, because of such prohibition, he and respondent registered the subject properties in the latter's name. He who seeks equity must do equity, and he who comes into equity must come with clean hands. Thus, a litigant may be denied relief by a court of equity on the ground that his conduct has been inequitable, unfair and dishonest, or fraudulent, or deceitful. There are inconsistencies which show his untruthfulness. Thus, as petitioner has come before the Court with unclean hands, he is now precluded from seeking any equitable refuge.
            In any event, the Court cannot, even on the grounds of equity, grant reimbursement to petitioner given that he acquired no right whatsoever over the subject properties by virtue of its unconstitutional purchase. It is well established that equity as a rule will follow the law and will not permit that to be done indirectly which, because of public policy, cannot be done directly.
            Article 1412 of the Civil Code,31 petitioner cannot have the subject properties deeded to him or allow him to recover the money he had spent for the purchase thereof. The law will not aid either party to an illegal contract or agreement; it leaves the parties where it finds them.
            On the basis of unjust enrichment, Art 22 of the NCC, as held in Frenzel v. Catito, the provision on unjust enrichment does not apply if the action is proscribed by the Constitution. "MEMO CUM ALTERIUS DETER DETREMENTO PROTEST" (No person should unjustly enrich himself at the expense of another). This provision does not apply if, as in this case, the action is proscribed by the Constitution or by the application of the pari delicto doctrine.

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