Adille v. CA (Co-Owner Cannot Exclusively Own Common Property, Repudiation Must Precede Prescription Vis-A-Vis Co-Ownership) - Lora

Adille v.
CA
G.R. No. L-44546, January 29, 1988

FACTS:
The land in question Lot 14694 originally belonged to Felisa Alzul who bore a child named
Rustico Adille, the petitioner here, in her first marriage. In 1939, Felisa sold the property in pacto de
retro to certain third persons, period of repurchase being 3 years, but she died in 1942 without being
able to redeem it. But during the period of redemption, Adille repurchased the lot and after that, he
executed a deed of extra-judicial partition representing himself to be the only heir and child of his
mother Felisa and was able to secure title in his name alone.
After some efforts of compromise had failed, his half-brothers and sisters, private respondents
here, filed a case for partition with accounting on the position that he was only a trustee on an implied
trust when he redeemed but as it also turned out that one of respondents, Emeteria Asejo, was
occupying a portion, Adille counterclaimed for her to vacate that.
After hearing the evidence, the trial court sustained Adille in his position that he was and
became absolute owner and not just a trustee. The trial court dismissed case and also condemned
plaintiff occupant, Emeteria to vacate.
The respondent Court of appeals reversed decision and ruled for the private respondents
herein. On appeal to the Supreme Court, Adille contended that the property subject of dispute was
acquired by him exclusively upon the failure of his co-heirs to join him in its redemption within the
period required by law. He relies on the provisions of Article 1515 of the old Civil Article 1613 of the
present Code, giving the vendee a retro the right to demand redemption of the entire property.

ISSUE:
WON Adille, as a co-owner, has acquired exclusive ownership over the property held in
common?

RULING:
NO, Adille has not acquired exclusive ownership over the common property in question.
Under the Civil Code, the right of repurchase may be exercised by a co-owner with aspect to
his share alone. While the records show that the petitioner redeemed the property in its entirety,
shouldering the expenses therefor, that did not make him the owner of all of it. In other words, it did
not put to end the existing state of co-ownership.
While a vendee a retro, under Article 1613 of the Code, "may not be compelled to consent to a
partial redemption," the redemption by one co-heir or co-owner of the property in its totality does not
vest in him ownership over it. Failure on the part of all the co-owners to redeem it entitles the vendee a
retro to retain the property and consolidate title thereto in his name. But the provision does not give to
the redeeming co-owner the right to the entire property. It does not provide for a mode of terminating
a co-ownership.
Neither does the fact that the petitioner had succeeded in securing title over the parcel in his
name terminate the existing co-ownership. While his half-brothers and sisters are, as we said, liable to
him for reimbursement as and for their shares in redemption expenses, he cannot claim exclusive right
to the property owned in common. Registration of property is not a means of acquiring ownership. It
operates as a mere notice of existing title, that is, if there is one.
The petitioner must then be said to be a trustee of the property on behalf of the private
respondents. The Civil Code states:
ART. 1456. If property is acquired through mistake or fraud, the person
obtaining it is, by force of law, considered a trustee of an implied trust for the benefit of
the person from whom the property comes.
Here, fraud attended the registration of the property. The petitioner's pretension that he was
the sole heir to the land in the affidavit of extrajudicial settlement he executed preliminary to the
registration thereof betrays a clear effort on his part to defraud his brothers and sisters and to exercise
sole dominion over the property. The aforequoted provision therefore applies.
It cannot also be said that Adille has acquired the common property through prescription. It is a
well-established principle that prescription bars any demand on property (owned in common) held by
another (co-owner) following the required number of years. In that event, the party in possession
acquires title to the property and the state of co-ownership is ended.
In the case at bar, the property was registered in 1955 by the petitioner, solely in his name,
while the claim of the private respondents was presented in 1974. Has prescription then, set in? The
Court held in the negative.
Prescription, as a mode of terminating a relation of co-ownership, must have been preceded
by repudiation (of the co-ownership). The act of repudiation, in turn is subject to certain conditions: (1)
a co-owner repudiates the co-ownership; (2) such an act of repudiation is clearly made known to the
other co-owners; (3) the evidence thereon is clear and conclusive, and (4) he has been in possession
through open, continuous, exclusive, and notorious possession of the property for the period required
by law.
The instant case shows that Adille had not complied with these requisites that would show that
he repudiated the co-ownership. In fact, he had deliberately kept the private respondents in the dark by
feigning sole heirship over the estate under dispute. He cannot therefore be said to have "made
known" his efforts to deny the co-ownership.
Moreover, one of the private respondents, Emeteria Asejo, is occupying a portion of the land up
to the present, yet, the petitioner has not taken pains to eject her therefrom. As a matter of fact, he
sought to recover possession of that portion Emeteria is occupying only as a counterclaim, and only
after the private respondents had first sought judicial relief.
While it is true that registration under the Torrens system is constructive notice of title, the
Torrens title does not furnish shield for fraud. Thus, where one registered the property in question in his
name in fraud of his co-heirs, prescription can only be deemed to have commenced from the time the
latter discovers the act of defraudation. Here, respondents came to know of the defraudation only
during the progress of the litigation. Hence, prescription is not a bar for the respondents.

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