Borromeo - v - Descallar

GR No. 159310, Feb. 24, 2009

Facts:

1.    Wilhelm Jambrich, an Austrian met respondent Antonietta Opalla-Descallar, a separated mother of two boys who was working as a waitress in 1984. Jambrich and respondent fell in love and decided to live together. They transferred to their own house and lots at Agro-Macro Subdivision, Cabancalan, Mandaue City. In the Contracts to Sell covering the properties, Jambrich and respondent were referred to as the buyers. A Deed of Absolute Sale was likewise issued in their favor but registration was refused on the ground that Jambrich was an alien and could not acquire alienable lands of the public domain. Jambrich's name was erased from the document. Jambrich formally adopted respondent's two sons. The idyll lasted only until 1991.

2.    Jambrich met petitioner Camilo F. Borromeo who built and repaired speedboats as a hobby. Jambrich purchased an engine and some accessories for his boat from petitioner, for which he became indebted. To pay for his debt, he sold his rights and interests in the Agro-Macro properties to petitioner. When petitioner sought to register the deed of assignment, he discovered that titles to the three lots have been transferred in the name of respondent, and that the subject property has already been mortgaged.

3.    Petitioner filed a complaint against respondent for recovery of real property before the RTC Mandaue

1.    Petitioner: Respondent did not pay a single centavo of the purchase price and was not in fact a buyer; that it was Jambrich alone who paid for the properties using his exclusive funds; that Jambrich was the real and absolute owner of the properties; and, that petitioner acquired absolute ownership by virtue of the Deed of Absolute Sale/Assignment dated which Jambrich executed in his favor.

2.    Respondent: She claimed that she "solely and exclusively used her own personal funds to defray and pay for the purchase price of the subject lots in question," and that Jambrich, being an alien, was prohibited to acquire or own real property in the Philippines.

4.    RTC decision: Declared plaintiff (Jambrich) as the owner in fee simple over the residential house of strong materials and three parcels of land issued by the Register of Deeds of Mandaue City; respondent appealed to the CA

5.    CA decision: The title of the subject property is not in the name of Jambrich but in the name of defendant-appellant. Jambrich could not have transferred a property he has no title thereto.

Issue: WON Jamich could acquire the subject property?

Held/Ratio: Granted. Affirms RTC decision.

            In United Church Board for World Ministries v. Sebastian, the Court reiterated the consistent ruling in a number of cases that if land is invalidly transferred to an alien who subsequently becomes a Filipino citizen or transfers it to a Filipino, the flaw in the original transaction is considered cured and the title of the transferee is rendered valid. Applying United Church Board for World Ministries, the trial court ruled in favor of petitioner, viz.: [W]hile the acquisition and the purchase of (sic) Wilhelm Jambrich of the properties under litigation [were] void ab initio since [they were] contrary to the Constitution of the Philippines, he being a foreigner, yet, the acquisition of these properties by plaintiff who is a Filipino citizen from him, has cured the flaw in the original transaction and the title of the transferee is valid. 

Note: I made this case digest when I was still a law student. The ones posted on my blog were not due for submission as part of any academic requirement. I want to remind you that there is no substitute to reading the full text of the case! Use at your own risk.