Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. L-!"#$ %une &' &$!(
%OSUE SONCU)A' plaintiff-appellant'
*s.
%UAN A+ARRAGA' ET AL.' ,efen,ants-appellants.
Ge-*asio .ia/' %oa0uin A/a--a1a' Su2ulon1 La*i,e/ an, Su2ulon1' an, Lau-el'
.el Rosa-io an, Sabi,o fo- ,efen,ants an, appellants.
%oseu Soncu3a in his o4n behalf.
.5A+' %.6
This case is no4 befo-e us on appeal f-o2 the Cou-t of 7i-st 5nstance of Capi/. Afte- t-ial'
the plaintiff file, a secon, a2en,e, co2plaint' 4hich the lo4e- cou-t at fi-st -efuse, to
consi,e-' but late- on a,2itte, afte- it 4as con*ince, that the allo4ance the-eof 4as
p-ope- in o-,e- to 2a8e the alle1ations confo-2 to the establishe, facts. This 4as ,one
4ithout the ,efen,ants inte-posin1 an3 e9ception' not4ithstan,in1 that the3 ha,
p-e*iousl3 oppose, the a,2ission of the a2en,2ent. The3 not afte-4a-,s an, not no4' in
thei- b-ief on appeal' 0uestion the afo-esai, a2en,2ent.
5t appea-s f-o2 the alle1ations of the co2plaint thus a2en,e, that the plaintiff has fou-
causes of action. Un,e- the fi-st cause he see8s to -eco*e- f-o2 the ,efen,ants the su2 of
P&&(':!".:( as ,a2a1es' 4hich he alle1es to ha*e been cause, b3 the ,efen,ants in
f-au,ulentl3 ,ep-i*in1 hi2 of the possession of fou- pa-cels of lan, 4ith a total a-ea of
;$: hecta-es' "( a-es an, $; centa-es' 4hich the3' 4ith 8no4le,1e that sai, -eal
p-ope-ties belon1e, to hi2 e9clusi*el3' -e1iste-e, in thei- na2es in the -e1ist-3 of
p-ope-t3 an, 2o-t1a1e, in fa*o- of <=i>os ,e 5. ,e la Ra2a< to pa3 a ce-tain obli1ation
4hich the3 ha, cont-acte, 4ith the Pana3 Municipal Ca,ast-e. Un,e- the secon, cause'
plaintiff see8s to -eco*e- P:'?(? as the suppose, *alue of the hea,s of cattle belon1in1 to
hi2' 4hich the tenants of the ,efen,ants ha, slau1hte-e,. Un,e- the thi-, cause' he see8s
pa32ent of the su2 of P"'"#" as the suppose, *alue of &'&&" coconut t-ees 4hich he ha,
plante, on the fou- pa-cels of lan, in 0uestion. Un,e- the fou-th an, last cause of action'
plaintiff p-a3s that the ,efen,ants su-na2e, A/a--a1a' 4ith the e9ception of %oa0uin
A/a--a1a' be o-,e-e, to 2a8e up to &;! hecta-es' &! a-es an, $$ centa-es the lan, 4hich
the latte- ha, sol, to hi2' because plaintiff ,i, not ta8e possession of the lan,' e9cept a
po-tion the-eof' ha*in1 an a-ea of #; hecta-es' (! a-es an, " centa-es. 5n othe- 4o-,s' the
,efen,ants shoul, ,eli*e- to the plaintiff an a,,itional "? hecta-es ' !? a-es an, $
centa-es inas2uch as the pa-ticipation of sai, %oa0uin A/a--a1a in the estate left to hi2
an, his b-othe-s' his co-,efen,ants he-ein' b3 thei- co22on 1-an,fathe-' %uan A/a--a1a 3
Gal*e/' 4hich %oa0uin A/a--a1a sol, to plaintiff' ha, that a-ea acco-,in1 to the ,ee, of
pa-tition' e9ecute, b3 all of the2' an, the plan of sai, estate 4hich 4as subse0uentl3
,-a4n up.
5n thei- ans4e- of 7eb-ua-3 ;:' &$!&' the ,efen,ants A/a--a1a inte-pose, a 1ene-al ,enial
of each an, all the alle1ations of the plaintiff@s co2plaint' e9ceptin1 those -elatin1 the
follo4in1 special ,efensesA 7i-st' that the co2plaint ,oes not alle1e facts constitutin1
causes of actionA secon,' that the plaintiff an, his p-e,ecesso- in inte-est 4e-e ne1li1ent
in failin1 to insc-ibe in the office of the -e1iste- of ,ee,s the suppose, encu2b-ances in
thei- fa*o- o*e- the lan,s in 0uestion' 1-antin1 that sai, encu2b-ances ha, e*e- e9iste,A
thi-,' that the plaintiff 8ne4 an, 4as pe-sonall3 info-2e, that the lan,s afo-esai, 4oul,
be su-*e3e, at thei- instance an, insc-ibe, in thei- na2es as thei- o4n p-ope-t3' but that
he ,i, nothin1 to ,efen, o- p-otect his -i1hts eithe- ,u-in1 the pen,enc3 of the
p-ocee,in1s fo- the -e1ist-ation of the lan,s in 0uestion o- ,u-in1 the pe-io, p-esc-ibe, b3
la4 afte- the issuance of a ,ec-ee an, title' 4ithin 4hich the *ali,it3 of the sa2e 2a3 be
assaile,A fou-th' that at the ti2e of filin1 thei- application fo- -e1ist-ation as 4ell as of the
issuance of the ,ec-ee o-,e-in1 the insc-iption in thei- na2es in the -e1ist-3 of p-ope-t3 of
the lan,s in 0uestion' the3 4e-e the sole o4ne-s of the sa2e' an, that a,2ittin1 fo- the
sa8e of a-1u2ent the theo-3 of the plaintiff that he ha, a -i1ht to sai, lan,s' it 4as
nothin1 2o-e than an e9pectation that he 4oul, be so2e,a3 thei- o4ne-A fifth' that the
plaintiff ha, no -i1ht to appl3 fo- o- obtain f-o2 the cou-t a 4-it of p-eli2ina-3
in>unction' 4he-efo-e' that obtaine, 4as ille1alA an, si9th' that the -i1ht of action of the
plaintiff' if an3' ha, p-esc-ibe,.
The ,efen,ants A/a--a1a fu-the- alle1e, the follo4in1 counte-clai2s6
BaC That plaintiff is liable to the2 in ,a2a1es in the su2 of P&??'??? because 4hile the
cont-act 4hich the ,efen,ants ha, ente-e, into 4ith Leo,e1a-io A/a--a1a 4as still in
fo-ce' the plaintiff too8 possession of thei- lan,s not co*e-e, b3 the sai, cont-actA that he
set loose the-ein his cattle' utili/in1 the sa2e as 1-a/in1 1-oun, in a ne1li1ent 2anne- an,
4ithout ta8in1 the necessa-3 steps to a*oi, ,a2a1es to thei- plantationsA that
not4ithstan,in1 -epeate, -e0uests' the plaintiff -efuse, to fence the lan,s in 4hich he ha,
set loose his ani2als' the-eb3 causin1 ,a2a1es an, ,est-uction to thei- plantationsA that
the ani2als belon1in1 to the plaintiff not onl3 ,est-o3e, an, ,a2a1e, the coconut' pala3
an, co-n plantation e9istin1 al-ea,3 on the lan,s befo-e sai, ani2als 4e-e b-ou1ht
the-eto' but also ,est-o3e, thei- fa-2s an, plantations on thei- enclose, lan,sA that all this
4as ,ue to the ne1lect an, ca-elessness of the plaintiffA that b3 -eason of his -efusal to
enclose, the lan,s con*e-te, into 1-a/in1 1-oun,s' the ,efen,ants 4e-e unable to ,e-i*e
an3 benefits f-o2 thei- lan,s o- to sell o- -ent the2 to those 4ho ,esi-e to ,o so.
BbC That the plaintiff is fu-the- liable an, shoul, be sentence, to pa3 the2 in ,a2a1es the
su2 of P &"'??? fo- ha*in1 cause, the annotation in the co--espon,in1 -e1ist-3 of the
boo8 of the office of the -e1iste- of ,ee,s of the P-o*ince of Capi/ of a notice of lis
pen,ens not onl3 4ith -e1a-, to the &"? hecta-es' ( a-es an, "? centa-es 4hich he clai2s
in his co2plaint' but also 4ith -e1a-, to the 4hole a-ea of ;: hecta-es' ;# a-es an, $(
centa-es' ,esc-ibe, in the o-i1inal ce-tificate of title No. $#(" issue, in the na2e of the
,efen,antsA that as a -esult of this act of the plaintiff' the3 coul, not ente- into an3
t-ansactions o*e- that un0uestione, po-tion of the lan, to 4hich sai, title -elates.
BcC That the plaintiff is li8e4ise liable an, the ,efen,ants p-a3 that he shoul, be
sentence, to pa3 the2 the su2 of P!?'??? also in ,a2a1es' fo- ha*in1 sou1ht an,
secu-e, the issuance of an o-,e- of p-eli2ina-3 attach2ent of thei- p-ope-ties ,esc-ibe, in
ce-tificates of title No. $(? an, &?!:&.
B,C That the plaintiff is liable an, shoul, be sentence, to pa3 the2 in ,a2a1es the su2 of
P&?'??? fo- ha*in1 as8e, an, secu-e, f-o2 the cou-t on 7eb-ua-3 #' &$!& a 4-it of
p-eli2ina-3 in>unction in the sa2e case' the-eb3 p-e*entin1 the ,efen,ants f-o2
e9e-cisin1 acts of o4ne-ship not onl3 on the fou- pa-cels in 0uestions' but also on all the
othe- lan,s belon1in1 to the2.
BeC That in case it is a,>u,1e, that the lan,s in cont-o*e-s3 ha, been i2p-ope-l3 insc-ibe,
b3 the ,efen,ants in thei- na2es in the -e1ist-3 of p-ope-t3' the3 p-a3 that the plaintiff be
o-,e-e, to -ei2bu-se the2 in the su2 of P"'??? 4hich -ep-esent the ta9es pai, b3 the2
on sai, lan,s' plus inte-est f-o2 the ,ates sai, ta9es 4e-e pai,A
BfC The ,efen,ants lastl3 p-a3 that upon the ,issolution of the 4-it of p-eli2ina-3
in>unction issue, a1ainst the2 on the ,ate abo*e-state, an, the cancellation of the
annotation of sai, 4-it in the co--espon,in1 boo8 of the office of the -e1iste- of ,ee,s of
Capi/' the plaintiff be sentence, to pa3 the costs of the suit.
<=i>os ,e 5. ,e la Ra2a< an, Pana3 Municipal Ca,ast-e 4e-e inclu,e, in the co2plaint
onl3 fo- the pu-pose of en>oinin1 the fo-2e- f-o2 inc-easin1 to P;"'??? the c-e,it it ha,
e9ten, to the ,efen,ants A/a--a1a' 4ho ha, al-ea,3 obtaine, P&:'??? on a 2o-t1a1e of
the lan,s in 0uestions e9ecute, b3 the2 in its fa*o-A an, of -est-ainin1 the latte- f-o2
collectin1 f-o2 sai, loan of P;"'???' e9ten,e, b3 <=i>os ,e 5. ,e la Ra2a< to the
,efen,ants' the c-e,it 4hich it clai2s to ha*e a1ainst the2 un,e- a cont-act 4he-eb3 the3
boun, the2sel*es to p-o*i,e it 4ith fun,s to ca--3 on the ente-p-ise fo- 4hich it has been
o-1ani/e,.
<=i>os ,e 5. ,e la Ra2a< sho4e, *e-3 little inte-est in the case' fo-' acco-,in1 to the lo4e-
cou-t' it 2e-el3 file, an ans4e- 4ith a 1ene-al ,enial.
Pana3 Municipal Ca,ast-e' in its ans4e-' ,enie, all the alle1ations of the co2plaint in so
fa- as it 2i1ht be affecte, the-eb3' an, alle1e, as special ,efense that the plaintiff ha, no
-i1ht to as8 fo-' an, 2uch less obtain' a 4-it of p-eli2ina-3 in>unction a1ainst it. 5t fu-the-
alle1e, as a counte-clai2 that the sai, plaintiff has beco2e liable to it in ,a2a1es in the
su2 of P&"'???' plus P"'???' plus P"'??? e*e-3 2onth' be1innin1 7eb-ua-3 #' &$!&'
because the plaintiff p-e*ente, if f-o2 -ecei*in1 f-o2 the ,efen,ants A/a--a1a o- f-o2
<=i>os ,e 5. ,e la Ra2a< the su2s 4hich the3 ha, boun, the2sel*es to ,eli*e- un,e- a
cont-act 4hich the3 ha, e9ecute, on Septe2be- ;?' &$;$. Afte- t-ial' the cou-t -en,e-e,
>u,12ent as follo4s6
Dhe-efo-e' the ,efen,ants %uan' %ose' Sal*a,o-' %oa0uin' E2ilio' Luis' Rosa-io' %ulio' all
su-na2e, A/a--a1a' a-e he-eb3 sentence, to pa3 the plaintiff' >ointl3 an, se*e-all3' the
su2 of P;':;#.$(' 4ith le1al inte-est f-o2 No*e2be- &?' &$;:' as ,a2a1es because
the3 f-au,ulentl3 ,ep-i*e, the plaintiff of his lan,s in Ba3-an1' an, li8e4ise to pa3 the
plaintiff' >ointl3 an, se*e-all3' the su2 of P"'"#" 4ith le1al inte-est f-o2 No*e2be- &?'
&$;:' -ep-esentin1 the *alue of &'&&" coconut t-ees as i2p-o*e2ents on sai, lan,s' an,'
4ith the e9ception of %oa0uin A/a--a1a' to pa3 the plaintiff' >ointl3 an, se*e-all3' the su2
of P"'?!?.$ 4ith inte-est at the le1al -ate f-o2 No*e2be- &?' &$;: fo- e*iction an,
4a--ant3.
5n case the ,efen,ants A/a--a1a ha*e no unencu2be-e, p-ope-ties o- can not -e,ee2 the
2o-t1a1e o*e- thei- p-ope-ties' 4ith 4hich to satisf3 the in,e2nit3 fo- ,a2a1es' the
pa32ent of sai, in,e2nit3 shall be cha-1e, a1ainst the bon, of the su-eties' 4ho secu-e,
the liftin1 of the attach2ent on the p-ope-ties of the ,efen,ants.
The 4-it of p-eli2ina-3 in>unction issue, in this case on 7eb-ua-3 #' &$!& a1ainst the
,efen,ants A/a--a1a' =i>os ,e 5. ,e la Ra2a an, Pana3 Municipal Ca,ast-e is he-eb3
2a,e final' 4ith the e9ception of that po-tion 4hich en>oins =i>os ,e 5. ,e la Ra2a f-o2
,eli*e-in1 to the ,efen,ants su-na2e, A/a--a1a an, Pana3 Municipal Ca,ast-e 2o-e than
the su2 of P&:'???' 4hich ha, al-ea,3 been ,eli*e-e,' an, 4hich li8e4ise en>oins the
latte- f-o2 ,e2an,in1 f-o2 sai, entit3 2o-e than the abo*e-2entione, su2 of P&:'???'
4hich po-tion is he-eb3 ,ecla-e, ,issol*e,.
The plaintiff is absol*e, f-o2 the counte-clai2s inte-pose, b3 the ,efen,ants A/a--a1a
an, b3 the Pana3 Municipal Ca,ast-e. The ,efen,ants A/a--a1a an, b3 the Pana3
Municipal Ca,ast-e. The ,efen,ants A/a--a1a shall pa3 the costs.
7-o2 the fo-e1oin1 >u,12ent the ,efen,ants as 4ell as the plaintiff appeale,' an, in thei-
-especti*e b-iefs the3 assi1n the follo4in1 e--o-sA
ASS5GNMENTS O7 ERROR O7 T=E .E7EN.ANTS
5. The t-ial cou-t e--e, in hol,in1 that the t-ue natu-e of the stipulation bet4een Atto-ne3
Leo,e1a-io A/a--a1a an, the hei-s of .on %uan an, the hei-s of .on %uan A/a--a1a 3
Gal*e/ as containe, in the plan of pa-tition E9hibit <A< is one of cession of p-ope-t3 in
pa32ent of a ,ebt 8no4n in Spanish la4 as <,acion en pa1o.<
55. the t-ial cou-t e--e, in not hol,in1 that the stipulation bet4een Atto-ne3 Leo,e1a-io
A/a--a1a an, the hei-s of the ,ecease, %uan A/a--a1a 3 Gal*e/ to the effect that the lan,s
4e-e to beco2e the p-ope-t3 of Atto-ne3 Leo,e1a-io A/a--a1a in case the ,efen,ants
faile, to pa3 his fees 4ithin fi*e 3ea-s an, that ,u-in1 this pe-io, the sai, atto-ne3 ha,
the usuf-uct an, possession of the lan,s' as containe, in E9hibit <A<' is one of pacto
co2iso-io' 4hich is p-ohibite, b3 a-ticle &(( of the Ci*il Co,e.
555. The t-ial cou-t e--e, in fin,in1 that the th-ee pa-cels of lan, in 0uestion' lots Nos. (&'
(;' an, (!' 4e-e sol, b3 Atto-ne3 Leo,e1a-io A/a--a1a to the plaintiff he-ein.
5E. The t-ial cou-t e--e, in not hol,in1 that the -i1ht establishe, b3 Atto-ne3 Leo,e1a-io
A/a--a1a b3 *i-tue of E9hibit <A< an, t-ansfe--e, to the plaintiff is at 2ost an atto-ne3@s
lien o*e- the p-ope-ties in 0uestion an, that the action of the plaintiff as t-ansfe-ee of this
lien shoul, be to co2pel the ,efen,ants to -eco1ni/e it as a lien.
E. The t-ial cou-t e--e, in hol,in1 that the ,efen,ants p-ocu-e, the -e1ist-ation of the
lan,s in 0uestion b3 f-au,ulent 2eans.
E5. The t-ial cou-t e--e, in not hol,in1 that the plaintiff' ha*in1 no -eal -i1ht o*e- the
lan,s in 0uestion' the o2ission of his na2e f-o2 the application is not f-au,ulent an, not
fatal to the -e1ist-ation of the lan,s.
E55. The t-ial cou-t e--e, in not hol,in1 that the plaintiff' bein1 a 2e-e usuf-uctua-3 of the
lan,s in 0uestion fo- a li2ite, pe-io, of ti2e b3 1-ace of the o4ne-s' 4as not entitle, to
be 2entione, in the application fo- -e1ist-ation an, to be notifie, pe-sonall3 of its
p-ocee,in1s.
E555. The t-ial cou-t e--e, in not hol,in1 that the plaintiff ha, been ne1li1ent in not as8in1
fo- the -e*ie4 of the ,ec-ee 4ithin one 3ea-' an, in not hol,in1 that the plaintiff
pu-posel3 allo4e, the one-3ea- pe-io,' 4ithin 4hich he coul, petition fo- -e*ie4 of the
,ec-ee' to elapse in o-,e- that he 2i1ht ha*e a cause of action fo- ,a2a1es a1ainst the
,efen,ants.
5F. The t-ial cou-t e--e, in pe-2ittin1 the plaintiff to p-o*e the 2a-8et *alue of the lan,s
in 0uestion althou1h the-e 4as absolutel3 no alle1ation to that effect in the co2plaint
not4ithstan,in1 the ob>ection the-eto an, the e9ception ta8en b3 the ,efen,ants.
F. The t-ial cou-t e--e, in not hol,in1 that %oa0uin A/a--a1a has not inte-*ene, in the
-e1ist-ation of the lan,s in 0uestion' he bein1 onl3 a coo4ne- p-o in,i*iso an, as such has
not been 1uilt3 of f-au, in connection 4ith the -e1ist-ation of the lan,s.
F5. The t-ial cou-t e--e, in not hol,in1 that the plaintiff ha, no -eal -i1ht o*e- the lan,
-efe--e, to in E9hibit @E@ in *ie4 of the fact that the sai, ,ocu2ent ha, not been
-e1iste-e,.
F55. The t-ial cou-t e--e, in hol,in1 that the lan, -efe--e, to in E9hibit <E< contains an
a-ea of &: hecta-es instea, of :! hecta-es onl3.
F555. the t-ial cou-t e--e, in fin,in1 that the total a-ea of lots (&' (;' an, (!' 4hich a-e the
sub>ect 2atte- of the <pactu2 co22isso-iu2< bet4een Atto-ne3 Leo,e1a-io A/a--a1a
an, the ,efen,ants' is ;! hecta-es instea, of (# hecta-es onl3.
F5E. The t-ial cou-t e--e, in sentencin1 the ,efen,ants to pa3 to the plaintiff the su2 of
P!"';!!.$; an, in not absol*in1 the2 f-o2 the co2plaint.
FE. The t-ial cou-t e--e, in ,isallo4in1 all the fi*e counte-clai2s of the ,efen,ants
a2ountin1 to P"('???.
ASS5GNMENTS O7 ERROR O7 T=E PLA5NT577
BaC The lo4e- cou-t e--e, in not fin,in1 that the 2a-8et *alue of the lan,s in liti1ation in
&$;: 4as P&&(':!".:(A
BbC The lo4e- cou-t e--e, in not sentencin1 the ,efen,ants to pa3 the plaintiff the su2 of
P:'?(? as in,e2nit3 fo- the 4-on1ful slau1hte- of his ani2alsA an,
BcC The lo4e- cou-t e--e, in not sentencin1 the ,efen,ants to pa3 the plaintiff' >ointl3 an,
se*e-all3' the su2 of P&!';$?.:( as in,e2nit3' plus le1al inte-est f-o2 No*e2be- &?'
&$;:.
The salient facts establishe, at the t-ial 4hich 2a3 se-*e as a basis fo- an intelli1ent
,iscussion of the 0uestions -aise, b3 the pa-ties an, fo- a p-ope- ,ecision of the sa2e'
2a3 be b-iefl3 state, as follo4s6
B3 -eason of the p-ocee,in1s ha, in case No. &&($ of the Cou-t of 7i-st 5nstance of
Manila' entitle, <Testate Estate of the .ecease, %uan A/a--a1a 3 Gal*e/<' the ,efen,ants
su-na2e, A/a--a1a beca2e in,ebte, to Atto-ne3 Leo,e1a-io A/a--a1a' 4ho -ep-esente,
the2 in sai, case' fo- atto-ne3@s fees' 4hich on Octobe- ;&' &$&$ the cou-t' 4hich too8
co1ni/ance of the case' fi9e, at P!'??? BE9hibit BC.
The ,efen,ants A/a--a1a ha, p-e*iousl3 a1-ee, a2on1 the2sel*es to pa3 Atto-ne3
Leo,e1a-io A/a--a1a atto-ne3@s fees in the 2anne- set out in E9hibit A' 4hich the3
e9ecute, on %anua-3 ;?' &$&$ an, app-o*e, b3 the cou-t on Au1ust ;$' of the sa2e 3ea-.
BE9hibit C.C The pe-tinent pa-t of the afo-esai, E9hibit A -ea,s as follo4s6
The pa-ties also a1-ee that the pa-cels of lan, locate, in Ba3-an1' Ne4 Dashin1ton'
Capi/' P. 5.' 4hich a-e enu2e-ate, in the in*ento-3 of this pa-tition as Nos. (&' (; an, (!'
a-e speciall3 2o-t1a1e, an, sub>ect to the pa32ent of the fees of sai, atto-ne3 of the
testate estate' 4hich fees shall be fi9e, b3 the cou-t' an, sai, atto-ne3 2a3 hol, sai,
lan,s un,e- no obli1ation to pa3 an3 -ent until his fees shall ha*e been full3 pai,6
P-o*i,e,' ho4e*e-' that if' at the en, of the pe-io, of fi*e 3ea-s f-o2 the ,ate of the
app-o*al of this p-o>ect of pa-tition' sai, pa-ties shall not ha*e been able to pa3 in full the
fees of sai, atto-ne3' then sai, pa-cels of lan,' Nos. (&' (; an, (!' locate, in Ba3-an1'
shall be ,efinitel3 a,>u,icate, to sai, atto-ne3' M-. Leo,e1a-io A/a--a1a' as his p-ope-t3'
in pa32ent of his fees' an, all su2s 4hich he 2a3 ha*e -ecei*e, f-o2 ti2e to ti2e f-o2
the inte-este, pa-ties in these testate p-ocee,in1s' 4ithin the sai, pe-io,' shall be -etu-ne,
to sai, pa-ties6 P-o*i,e,' fu-the-' that in case sai, inte-este, pa-ties in the testate
p-ocee,in1s shall be able to pa3 in full the fees of the atto-ne3 fo- the estate befo-e the
e9pi-ation of sai, pe-io, of fi*e 3ea-s' then sai, pa-cels of lan, situate, in Ba3-an1 shall
continue in the possession of sai, atto-ne3 fo- an a,,itional pe-io, of th-ee 3ea-s f-o2 the
,ate of the last pa32ent in the e*ent that sai, atto-ne3 2a3 ha*e 8ept li*estoc8 in sai,
lan,s.
About nine 2onths afte- the cou-t app-o*e, E9hibit A' o- to be e9act' on %une $' &$;?'
4hich 4as lon1 befo-e the e9pi-ation of the pe-io, of fi*e 3ea-s 4ithin 4hich the
,efen,ants A/a--a1a 4e-e boun, to pa3 Atto-ne3 Leo,e1a-io A/a--a1a his fees' 4hich
ha, been fi9e, at P!'???' sai, atto-ne3 ,eci,e, to sell an, ,i, sell to the plaintiff his
c-e,it a1ainst the ,efen,ants fo- the su2 of P;'"?? 4ith all the -i1hts inhe-ent the-ein in
acco-,ance 4ith the a1-ee2ents an, stipulations appea-in1 in sai, ,ocu2ent BE9hibit CC.
One of sai, a1-ee2ent 4as that Atto-ne3 Leo,e1a-io A/a--a1a 4oul, ta8e possession of
the sai, pa-cels of lan, an,' occup3 the sa2e' if he so ,esi-e,' 4ithout pa3in1 an3 -ent o-
annuit3' until fees shall ha*e been full3 pai,. Sai, pa-cels 4e-e i,entical 4ith lots Nos.
(&' (; an, (! ,esc-ibe, in pa-a1-aph 55 of the plaintiff@s secon, a2en,e, co2plaint.
Dhen the plaintiff beca2e the c-e,ito- of the ,efen,ants A/a--a1a b3 *i-tue of the sale
an, cession 4hich Atto-ne3 A/a--a1a ha, 2a,e in his fa*o- of the -i1hts 4hich sai,
atto-ne3 ha, un,e- E9hibit A' he allo4e, the ,efen,ants an e9tension of a fe4 3ea-s o*e-
the fi*e 3ea-s 4ith in 4hich the3 4oul, ha*e to pa3 hi2 his c-e,it' o- up to 7eb-ua-3 &:'
&$;:' but 4ith the e9p-ess con,ition that the3 4oul, pa3 hi2 inte-est at the -ate of &; pe-
cent pe- annu2' f-o2 Au1ust !?' &$; BE9hibit "C. This te-2 4as late- e9ten,e, to Ap-il
;:' &$;: on the -e0uest of the ,efen,ants' but also 4ith the con,ition that the3 4oul, pa3
the plaintiff the sa2e inte-est of &; pe- cent. BE9hibits l an, M.C The plaintiff 1-ante,
anothe- e9tension to e9pi-e on Octobe- !&' &$;(' but sub>ect to the con,ition that instea,
of se*en thousan, an, o,, pesos' 4hich un,oubte,l3 -efe--e, to the inte-est of &; pe-
cent pe- annu2 cha-1e, the ,efen,ants' the3 shoul, pa3 hi2 P&;'??? BE9hibit ;C. 5n sai,
t4o a2ounts of P#'??? an, P&;'??? the su2 of P'??? 4hich the plaintiff ha, 1i*en to
the ,efen,ant %oa0uin A/a--a1a an, 4hich 4ill be ,ealt 4ith fu-the- in ,etail' 4as
inclu,e,.
Asi,e f-o2 the abo*e t-ansactions bet4een the plaintiff an, the ,efen,ants A/a--a1a' one
of the latte-' %oa0uin A/a--a1a' e9ecute, in fa*o- of the fo-2e-' the ,ee, 8no4n as
E9hibit E of the -eco-, an, ,ate, Octobe- &' &$;;' b3 4hich he sol, to the plaintiff' fo-
the su2 of P'???' his po-tion of the inhe-itance in the testate estate of the late %uan
A/a--a1a 3 Gal*e/' consistin1 of an un,i*i,e, t-act of lan, containin1 an esti2ate, a-ea
of :! hecta-es an, locate, in Ba3-an1 Chico' Ne4 Dashin1ton' Capi/. 5t is fu-the- state,
the-ein that the pe-io, of -e,e2ption 4oul, be fi*e 3ea-s to be counte, f-o2 7eb-ua-3 &:'
&$;&' 4hich 4as late- e9ten,e, to Ap-il ;:' &$;:. 5n 1-antin1 hi2 this e9tension' the
plaintiff i2pose, on %oa0uin A/a--a1a the con,ition that he shoul, pa3 hi2 inte-est at the
-ate of &; pe- cent f-o2 the e9pi-ation of the fi-st te-2 BE9hibit MA pa-. 555 of the secon,
a2en,e, co2plaint of plaintiffA an, pa1e " of the b-ief of the plaintiff as appellantC. A
secon, e9tension 4as fu-the- 1-ante,' but un,e- the con,ition that he shoul,' to1ethe-
4ith his b-othe-s' pa3 the plaintiff instea, of se*en thousan, an, o,, pesos' -ep-esentin1
the inte-est -efe--e, to in the p-ece,in1 pa-a1-aph' in 4hich the P!'??? 2entione, in
E9hibit A 4e-e inclu,e,' P&;'??? BE9hibit ;?. The ,ee, -efe--e, to 4as ne*e- annotate,
o- insc-ibe, in an3 -e1iste- in the office of the -e1iste- of ,ee,s of sai, p-o*ince.
B3 *i-tue of the t-ansfe- 2a,e to hi2 b3 %oa0uin A/a--a1a an, also of the te-2s
con,itions enu2e-ate, in sai, E9hibit A' the plaintiff too8 possession of p-acticall3 the
4hole lan, of the ,efen,ants A/a--a1a' locate, in Ba3-an1' placin1 the-ein li*estoc8 f-o2
the 2onth of Au1ust' &$;? an, in the sa2e 3ea- built sheepfol,s the-ein' besi,es e-ectin1
so2e 4i-e fences. Dhen the plaintiff too8 possession of pa-t of the lan, in 0uestion in
Au1ust' &$;? an, anothe- pa-t the-eof in 7eb-ua-3' &$;;' afte- the e9ecution in his fa*o-
of the ,ee, of t-ansfe-' 4hich is a cla-ification of E9hibit E' he foun, f-uit-bea-in1 an,
3oun1 coconut t-ees' the latte- bein1 2o-e nu2e-ous. 5n &$;"' &$;: an, &$;#' %oa0uin
A/a--a1a' eithe- b3 hi2self o- his labo-e-s' plante, the-ein hun,-e,s of coconut t-ees of
4hich but a fe4 hun,-e,s' as 4e the case 4ith the ol, ones' -e2aine, on account of the
lon1 ,-ou1hts o- othe- causes. The-e is nothin1 ,efinite in the -eco-, to sho4 the e9act
nu2be- of ani2als 4hich the plaintiff ha, b-ou1ht to Ba3-an1 o- the cause of the ,eath of
so2e of the2. 5t see2s that so2e ha, been 4oun,e,' b3 4ho2 it is not 8no4n' 2uch
less it is 8no4n 4hethe- the3 4e-e 4oun,e, b3 2en of the ,efen,ants A/a--a1a. The
plaintiff hi2self has not spo8en 4ith ce-tainl3A his state2ents on this point a-e 2e-e
con>ectu-es unco--obo-ate, b3 an3bo,3 o- an3thin1 Bt-ansc-ipt of steno1-aphic notes'
pa1es &"-&#C. The-e ha*e been also no e9act accounts as to 4hethe- the ani2als of the
plaintiff 4he-e those 4hich ,est-o3e, the coconut t-ees plante, on the lan, b3 %oa0uin
A/a--a1a ,u-in1 the 3ea-s &$;"' &$;: an, &$;# abo*e-2entione,' o- 4e-e the ani2als of
othe- pe-sons.
So2eti2es in Ma3' &$;(' the plaintiff 4ent to the house of the ,efen,ants %oa0uin
A/a--a1a to collect not onl3 his c-e,it a1ainst all the ,efen,ants A/a--a1a' but also the
special c-e,it 4hich' acco-,in1 to hi2' he ha, a1ainst %oa0uin A/a--a1a. An, on Octobe-
$' &$;(' he a,,-esse, a lette- to each an, e*e-3 one of the ,efen,ants inclu,in1 %oa0uin
A/a--a1a 4ho2 he e9p-essl3 2entione, the-ein' an,' a2on1 othe- thin1s' tol, the2 that6
Last Ma3' Mess-s. Sal*a,o- an, %oa0uin ca2e to an a1-ee2ent 4ith 2e 4he-eb3 the3
4e-e to -e,ee2 the lan, in Ba3-an1 fo- se*en thousan, an, o,, pesos las Septe2be-' an,
in ,efault the-eof to t-ansfe- in 23 na2e the To--ens title of the po-tion belon1in1 to 2eA
but until no4 neithe- of these has been ,one.
7o- this -eason an, in *ie4 of the fact that 3ou ha*e not state, in the To--ens title of the
lan, in Ba3-an1 4hen 3ou applie, fo- the sa2e' the t4o encu2b-ances the-eon in 23
fa*o-' 5 a2 co2pelle, b3 this o2ission' 4hich is a clea- ,is-e1a-, of 23 -i1hts' to see8
-e,-ess the-efo- in the cou-ts' if 3ou -efuse the sa2e to 2e. The-efo-e' if 3ou ,esi-e to
-e,ee2 the lan,' 3ou 2a3 ,o so fo- the su2 of t4el*e thousan, pesos BP&;'???C until the
!&st of this 2onth of Octobe-A but shoul, 3ou not 4ish to -e,ee2 it' then in o-,e- to
a*oi, the incon*enience of a la4 suit' 5 4oul, -e0uest that on the sa2e ,a3 o- p-io-
the-eto that 3ou shall ha*e at least sub2itte, to the cou-t 3ou- 2otion p-a3in1 fo- an
o-,e- app-o*in1 the se1-e1ation an, t-ansfe- of the po-tion of sai, lan, 4hich belon1s to
2e' to1ethe- 4ith the co--espon,in1 plan' na2el3' that co--espon,in1 to the lan, 4hich
shall be in 23 na2e in the To--ens title. 5n the un,e-stan,in1 that if sai, ,ate' Octobe-
!&st' a--i*es' an, 3ou ha*e not ,one an3thin1 eithe- one 4a3 o- the othe-' then th-ou1h
3ou- o4n fault' 5 4oul, be co2pelle, to -eso-t to the cou-ts to as8 p-otection of 23 -i1hts
befo-e 5 lose the2' u-1in1 the cou-t to o-,e- 3ou to pa3 2e b3 -eason of such f-au,ulent
o2ission a su2 2o-e than ,ouble the a2ount abo*e-2entione,. BE9hibit ;.C
The lan, in Ba3-an1 to 4hich the abo*e-t-ansc-ibe, lette-s -efe-s is the sa2e lan, 2a,e
up b3 the fou- pa-cels 2entione, in pa-a1-aph 55 of the secon, a2en,e, co2plaint of the
plaintiff' as pa-cels (&' (;' (! an, that ha*in1 an a-ea of :! hecta-es.
Bet4een the ,ate of the e9ecution of the ,ocu2ent E9hibit A B%anua-3 ;?' &$&$C an, the
,ate of sai, lette- E9hibit ; BOctobe- $' &$;(C' the ,efen,ants secu-e, the insc-iption in
the -e1ist-3 of p-ope-t3 an, the issuance in thei- fa*o- of the co--espon,in1 ce-tificate of
title of the lan,s ,esc-ibe, in o-i1inal ce-tificate of title No. $#("' b3 *i-tue of the ,ec-ee
of -e1ist-ation of Octobe- ;#' &$;" BE9hibit GC. Of this fact the plaintiff ha, full
8no4le,1e b3 -eason of the lette- ,ate, %ul3 $' &$;' 4hich 4as sent to hi2 b3 the
,efen,ant %uan A/a--a1a' 4he-ein the latte-' besi,es as8in1 fo- an e9tension of th-ee
3ea-s' info-2e, hi2 BplaintiffC of the -e1ist-ation p-ocee,in1s 4hich 4e-e then 1oin1 on.
BE9hibit &.C The plaintiff ,i, not then no- the-eafte- ta8e an3 step to oppose the sa2e' o-
to as8 at least fo- the -e*ision of the ,ec-ee of -e1ist-ation' 4hich 4as issue, late-' 4ithin
the pe-io, of one 3ea- p-esc-ibe, b3 la4. To this lette-' the plaintiff -eplie, on the !?th of
the sa2e 2onth an, 3ea-' statin1' a2on1 othe- thin1s6
No4 that 5 a2 so2e4hat -elie*e, f-o2 the p-essu-e of 4o-8' 5 a2 4-itin1 to info-2 3ou
that' althou1h 5 nee, cash to 2eet 23 p-essin1 financial obli1ations' 3ou- -e0uests ha*e
co2pelle, 2e to 1-ant 3ou' as a,2inist-ato- the un,i*i,e, p-ope-ties of the A/a--a1a
b-othe-s' an e9tension of the te-2 fo- the pa32ent of the c-e,it 4hich encu2be-s the lan,
in Ba3-an1' an,' conse0uentl3' of the -e,e2ption of the sa2e' up to 7eb-ua-3 &:' &$;:.
Sai, lan, an, its encu2b-ances a-e ,esc-ibe, in the ,ee, of sale of the sai, c-e,it 4ith all
the -i1hts inhe-ent the-ein' e9ecute, b3 M-. Leo,e1a-io A/a--a1a in fa*o- of the
un,e-si1ne, on %ul3 $' &$;?.
As the 1-antin1 of this e9tension is causin1 2e a -eal sac-ifice an, a 1-eat financial st-ain'
in >ustice an, e0uit3' 5 also as8 f-o2 3ou' as a,2inist-ato- of the un,i*i,e, p-ope-ties of
the A/a--a1a b-othe-s' the luc-u2 cessans so that f-o2 Au1ust !?' &$; the afo-esai,
c-e,it of P!'??? shall ea-n &; pe- cent annual inte-est.
This lette- 4ill se-*e 3ou as e*i,ence of the 1-antin1 of the e9tension of the te-2 fo-
-e,e2ption of the sai, lan, in Ba3-an1 an,' the-efo-e' the-e is no necessit3 fo- e9ecutin1
anothe- ,ocu2ent to that effect. BE9hibit ".C
At the ti2e of the filin1 of the o-i1inal co2plaint' plaintiff si2ultaneousl3 as8e, fo- an,
obtaine, on 7eb-ua-3 #' &$!&' upon postin1 a bon, in the a2ount of P;'???' a 4-it of
p-eli2ina-3 in>unction a1ainst the ,efen,ants BE9h. &"C' an, in ,ue ti2e cause, the
annotation in the office of the -e1iste- of ,ee,s of the P-o*ince of Capi/ of a notice of lis
pen,ens not onl3 4ith -e1a-, to the po-tion ha*in1 an a-ea of &"? hecta-es' ( a-es an,
"? centa-es of the lan,s of the ,efen,ants A/a--a1a' but also 4ith -e1a-, to the 4hole a-ea
of ;: hecta-es' ;# a-es an, $( centa-es ,esc-ibe, in o-i1inal ce-tificate of title No. $#(".
The plaintiff also secu-e, f-o2 the Cou-t of 7i-st 5nstance a p-eli2ina-3 attach2ent of the
p-ope-ties of the ,efen,ants' ,esc-ibe, in ce-tificates of title No. $(? an, &?!"&' on
7eb-ua-3 "' &$;$ BE9hibit RCA an, the sa2e 4as annotate, in the -e1ist-3 of p-ope-t3 in
the sa2e 2onth. Se*en 2onths afte-' o- on Septe2be- $' of sai, 3ea-' the afo-e2entione,
attach2ent 4as lifte, b3 o-,e- of Septe2be- #' &$;$ BE9hibit FC upon the filin1 of a bon,
-e0ui-e, b3 the cou-t in the su2 of P&;'"?? b3 the inte-este, pa-ties. Sai, bon, ha*in1
been file, b3 the ,efen,ants' the cou-t' on the sa2e ,a3' o-,e-e, the cancellation of the
notice of lis pen,ens annotate, in the office of the -e1iste- of ,ee,s an, the insc-iption of
all the necessa-3 annotations. BE9hibit ).C
As clea-l3 p-o*en as the fo-e1oin1 a-e the facts that the ,efen,ant <=i>os ,e 5. ,e la
Ra2a< ente-e, into a cont-act 4ith its co-,efen,ants A/a--a1a fo- the pu-pose of 1-antin1
the2 a c-e,it of P;"'???' ha*in1 ,eli*e-e, to the2 on ,iffe-ent occasions afte- the
e9ecution b3 sai, ,efen,ants of a ,ee, of 2o-t1a1e E9hibit &: in its fa*o- on Septe2be-
;?' &$;$' as pa-t of the afo-e2entione, su2' the total a2ount of P&:'???. The A/a--a1as
nee,e, sai, a2ount fo- ca--3in1 on the business fo- 4hich the ,efen,ant Pana3
Municipal Ca,ast-e' 5nc.' ha, been o-1ani/e,' as set fo-th in sai, E9hibit &: an, cla-ifie,
in E9hibit &#.
B3 *i-tue of the 4-it of in>unction issue, b3 the lo4e- cou-t on 7eb-ua-3 #' &$!&'
en>oinin1 the ,efen,ants A/a--a1a an, the Pana3 Municipal Ca,ast-e f-o2 obtainin1
f-o2 thei- co-,efen,ant <=i>os ,e 5. ,e la Ra2a< anothe- loan' a-ise f-o2 the P&:'???
4hich the3 ha, p-e*iousl3 obtaine, BE9hibit &C' sai, ,efen,ant <=i>os ,e 5. ,e la Ra2a<
,i, not e9ten, the c-e,it' 4hich it ha, opene, to its co-,efen,ants' to P;"'??? as -e0ui-e,
b3 the cont-acts E9hibits &: an, &# abo*e--efe--e, to. 5n connection 4ith the issuance of
the 4-it of p-eli2ina-3 in>unction' the follo4in1 facts 2ust be 2entione,6 Afte- the
plaintiff co22ence, the p-esent case a1ainst the ,efen,ants A/a--a1a on %anua-3 ;('
&$;$ b3 2eans of his o-i1inal co2plaint' he institute, anothe- action a1ainst the2' 4hich
4as ci*il case No. ;:!' fo- the pu-pose of obtainin1 a 4-it of in>unction to p-e*ent the2
f-o2 secu-in1 the afo-e2entione, loan of P;"'??? f-o2 <=i>os ,e 5. ,e la Ra2a<. This
latte- case -eache, this cou-t on ce-tio-a-i file, on Ma-ch ;;' &$!?. As its sole ob>ect 4as
the issuance of a 4-it of p-eli2ina-3 in>unction' this cou-t' -eite-atin1 once 2o-e the
-ulin1 that sai, -e2e,3 is pu-el3 subsi,ia-3 a*ailable onl3 in ai, of the -i1ht sou1ht to be
enfo-ce, in the action 4he-ein the sa2e is issue,' an, that a sepa-ate action to secu-e the
sa2e ,oes not lie as it 4oul, pe-2it of 2ultiplicit3 of suits 4ith the conse0uent nee,less
e9penses BPana3 Municipal Ca,ast-e *s. Ga-,uHo an, Soncu3a' "" Phil.' "#' "#(C'
1-ante, the ce-tio-a-i p-a3e, fo- on %anua-3 ;;' &$!&' thus settin1 asi,e the 4-it of
p-eli2ina-3 in>unction issue, b3 the cou-t of Capi/ on Octobe- ;&' &$;$' hence' it 4as in
bein1 fo- not 2o-e than one 3ea-' th-ee 2onths an, one ,a3.
The 4-it of p-eli2ina-3 in>unction subse0uentl3 issue, on 7eb-ua-3 #' &$!&' has
-e2aine, in fo-ce up to the p-esent' as the lo4e- cou-t ,ecla-e, in its >u,12ent that it
shall be final 4ith -espect to the P$'??? still o4in1 f-o2 <=i>os ,e 5' ,e la Ra2a< on
account of the loan 4hich it ha, a1-ee, to e9ten, to the othe- ,efen,ants.
The 4o-8s fo- 4hich the Pana3 Municipal Ca,ast-e ha, been o-1ani/e, 4e-e be1un in
Octobe-' &$;$. Acco-,in1 to the testi2on3 of Gaspa- 7e--a-en' fo- all the 4o-8 4hich
the3 inten,e, of Gaspa- 7e--a-en' fo- all the 4o-8 4hich the3 inten,e, to un,e-ta8e' the3
nee,e, a capital of not 2o-e than P?'??? to 2a8e a 1-oss p-ofit of P&??'???. Of this
esti2ate, capital the3 in*este, the P&:'???' obtaine, f-o2 <=i>os ,e 5. ,e la Ra2a<'
4hich i22e,iatel3 3iel,e, a -etu-n of P:'???. =e also state, that the Pana3 Municipal
Ca,ast-e co2plete, half of its 4o-8s 4ith onl3 the capital obtaine, f-o2 <=i>os ,e 5. ,e
la Ra2a< BP&:'???C' plus its fi-st p-ofit of P:'??? an, that it 2a,e a p-ofit of P;';##.&"
2eanin1 the-eb3 that 4ith the afo-e2ention P&:'??? it obtaine, P!?';##. &"' o- a net
p-ofit of P&';##.&".
Anothe- fact 4hich has been clea-l3 establishe, b3 the testi2on3 of the plaintiff hi2self
is that he ,eci,e, to sell all the ani2als 4hich he ha, place, on the lan, in 0uestion
because he beca2e ,iscou-a1e, b3 the ,est-uction of sai, ani2als b3 the tenants of the
,efen,ants A/a--a1a. This fact' ho4e*e-' has been establishe, not b3 co2petent e*i,ence'
but b3 hea-sa3 testi2on3' 4hich 4as of cou-se ti2el3 ob>ecte, toA an,' althou1h he
testifie, in the sa2e b-eath that he ha, still so2e cattle the-e' he coul, not state thei-
e9act nu2be-' but li2ite, hi2self to sa3in1 <5 cannot tell 4hethe- the-e 4e-e fift3 of
the2.< BT-ansc-ipt' pa1e &.C
5n his subse0uent ,ealin1s 4ith the ,efen,ants A/a--a1a' inclu,in1 %oa0uin A/a--a1a' as
in his plea,in1s an, testi2on3' the plaintiff' in -efe--in1 to the a2ount of P;'#?? o-
P!'???' the *alue of the c-e,it 4hich he ha, pu-chase, f-o2 Atto-ne3 Leo,e1a-io
A/a--a1a' an, to that of P'??? 4hich he 1a*e to %oa0uin A/a--a1a on the ,ate an, un,e-
the ci-cu2stances state, in E9hibit E' he allu,e, to' an, consi,e-e, the2 as his <c-e,it<.
Thus' on pa1e &#: of the t-ansc-ipt of the steno1-aphic notes' he sai,6 <. . . lan,
2o-t1a1e, to 2e . . .A< an, on pa1es &$; an, &$ of sai, t-ansc-ipt' he also sai,6 <No4 5
a2 not collectin1 the c-e,itA 5 a2 collectin1 the ,a2a1es. Althou1h the3 2a3 ha*e sol,
that p-ope-t3 to 2e fo- P&' if its co22e-cial *alue has inc-ease, afte- the3 ha*e ,ep-i*e
2e of the sa2e' 5 shoul, collect f-o2 the2 such *alueA< an, <. . . 5 4ant so sa3 a1ain that
4hat 5 a2 collectin1 no4 is not the c-e,it 4hich 5 ha*e a1ainst the2' but the ,a2a1es
the3 ha*e cause, 2e b3 ,ep-i*in1 2e of the p-ope-t3.<
The facts of the case bein1 as abo*e set out' the 0uestions -aise, b3 the pa-ties in thei-
-especti*e assi1n2ents of e--o-' shoul, no4 be consi,e-e,. 5n fact' the 2ost i2po-tant o-
those ,iscusse, in the fi-st fou-teen e--o-s att-ibute, b3 the ,efen,ants to the lo4e- cou-t'
an, in the fi-st an, last e--o-s' 4hich plaintiff' in tu-n' assi1ne,' 2a3 be -e,uce, to the
follo4in16
5. Das the cont-act ente-e, into b3-the A/a--a1a b-othe-s' the ,efen,ants he-ein' 4ith
Atto-ne3 Leo,e1a-io A/a--a1a f-o2 4ho2 the plaintiff ,e-i*e, his -i1ht' a sale 4ith
pacto ,e -et-o' o- an assi1n2ent in pa32ent of a ,ebt' o- 4as it an antich-esis pa-ta8in1 of
the natu-e of 4hat 4as ancientl3 8no4n as pacto co2iso-io' o- a 2o-t1a1e' o- 4as it
2e-el3 a loan 4ith -eal estate secu-it3I
55. Das the cont-act e9ecute, b3 the ,efen,ant %oa0uin A/a--a1a' on the one han,' an, the
plaintiff' on the othe-' e2bo,ie, in E9hibit E' a sale 4ith pacto ,e -et-o o- si2pl3 a loan
4ith -eal estate secu-it3I
The fi-st 0uestion offe-s no ,ifficult3 if account is ta8en of the establishe, facts an, the
con,uct of the inte-este, pa-ties afte- the e9pi-ation of the te-2 of fi*e 3ea-s fi9e, in
E9hibit A. Dhen the plaintiff e9ten,e, the pe-io, to 7eb-ua-3 &:' &$;: 4ithin 4hich the
,efen,ants A/a--a1a coul, pa3 hi2 his c-e,it' but i2pose, on the2 the con,ition that
the3 pa3 hi2 &; pe- cent annual inte-est f-o2 Au1ust !?' &$; on the p-incipal of P!'???
BE9h. "C an, 1a*e the2 anothe- e9tension up to Ap-il ;:' &$;:' un,e- the sa2e con,itions
as -e1a-, inte-est BE9h. MC' 4hat pe-haps coul, ha*e been consi,e-e, as a antich-esis o-
pacto co2iso-io J not an assi1n2ent in pa32ent of a ,ebt' o- a sale 4ith pacto ,e -et-o
because the-e is nothin1 in E9hibit A to in,icate that such 4as the intention of the
,efen,ants A/a--a1a o-' at least' that the3 boun, the2sel*es to ,eli*e- the lan, in
0uestion to the plaintiff an, that the latte- shoul, pa3 the2 the *alue the-eofA an, because
the-e 4as 4hat 2a3 be consi,e-e, the -esoluto-3 con,ition of fi*e 3ea-s J 4as
con*e-te, into a si2ple loan b3 the ,ecisi*e ci-cu2stance that plaintiff chose to collect
the-eafte-' an, the obli1o-s a1-ee, to pa3 hi2' &; pe- cent annual inte-est. 5t is onl3 in
cont-acts of loan' 4ith o- 4ithout 1ua-ant3' that inte-est 2a3 be ,e2an,e, Ba-ticles &&?('
&#?' &#""' &(:(' &(#:' an, &((& of the Ci*il Co,e. As a 2atte- of fact' the cont-act
e2bo,ie, in E9hibit A 4as no*ate, b3 E9hibits " an, M' an, the plaintiff 4ante, to ha*e
it no*ate, fo- the thi-, ti2e b3 2eans of E9hibit ;. 5t ,oes not appea- of -eco-,' ho4e*e-'
that the ,efen,ants A/a--a1a e*e- assente, to the latte- no*ation. Pe-haps' thei- -efusal to
a1-ee to the sa2e 4as ,ue to the fact that the plaintiff 4ante, to -aise thei- ol, obli1ation
BP!'??? o- P;'#?? of all the A/a--a1a b-othe-s' plus P'??? 4hich %oa0uin A/a--a1a alone
o4e,' 4hich t4o accounts both the plaintiff an, the ,efen,ants consi,e-e, as a2ountin1
to P#'???' e9clusi*e of the annual inte-est of &; pe- centC to the -oun, su2 of P&;'???.
7-o2 all this it 2a3 easil3 be infe--e, that the obli1ation 4hich the ,efen,ants ha,
i2pose, upon the2sel*es b3 E9hibit A ha, cease, to e9ist an, beca2e a si2ple loan 4ith
secu-it3' if so ,esi-e,' of the lan,s in 0uestion' but 4ithout p-e>u,ice to thi-, pa-ties as
neithe- E9hibit A no- the ,ee, of assi1n2ent E9hibit C' e9ecute, b3 Leo,e1a-io A/a--a1a
in fa*o- of the plaintiff' 4as insc-ibe, in the -e1ist-3 of ,ee,s.
The-e is also no ,ifficult3 in ,isposin1 of the secon, 0uestion' consi,e-in1 the *a-ious
no*ations 4hich' as has been sai,' ha, ta8en place an, ha, been e9ten,e, not onl3 to the
A/a--a1a b-othe-s 4ith -espect to thei- obli1ation of P!'??? o- P;'#??' but also to the
,efen,ant %oa0uin A/a--a1a as -e1a-, his pe-sonal ,ebt of P'???. De 2ust not lose si1ht
of the fact that the plaintiff ne*e- consi,e-e, the cont-act ente-e, into b3 hi2 4ith
%oa0uin A/a--a1a as' st-ictl3 spea8in1' a sale 4ith pacto ,e -et-o. An, if he ha, e*e-
consi,e-e, it as such' it is' ne*e-theless' t-ue that he no*ate, it on 7eb-ua-3 &:' &$;:'
consi,e-in1 it f-o2 the ti2e on as a si2ple loan' inas2uch as on that ,ate he be1an to
cha-1e the sai, ,efen,ant &; pe- cent annual inte-est 4ith the latte-@s assent an,
confi-2it3. This clea-l3 appea-s in E9hibit M 4hich 2ust be consi,e-e, to1ethe- 4ith
pa-a1-aphs # an, ( of E9hibit E' as the plaintiff hi2self ,oes in his b-ief Bb-ief fo- the
plaintiff as appellant' pa1es an, "C' because the te-2 of fi*e 3ea-s to 4hich sai, E9hibit
E -efe-s an, 4hich shoul, ha*e e9pi-e, on 7eb-ua-3 &:' &$;: 4as e9ten,e, b3 the sai,
plaintiff' b3 E9hibit M' up to Ap-il ;:' &$;: un,e- the afo-e2entione, con,ition that he
shoul, be pai, &; pe- cent annual inte-est.
Conse0uentl3' the contention of the ,efen,ants that the plaintiff ,i, not an, coul, ne*e-
-ecei*e the lan,s in 0uestion as an assi1n2ent in pa32ent of a ,ebt' an, 2uch less ,i, he
ac0ui-e the2 b3 pu-chase 4ith pacto ,e -et-o' is 4ell ta8en. 5t 2ust also be note, that at
no ti2e ,i, the plaintiff clai2 an3 -i1hts of ,o2inion o*e- the lan,s since he ,i, not e*en
inti2ate to the ,efen,ants' eithe- ,i-ectl3 o- in,i-ectl3' that fo- thei- failu-e to pa3 hi2 his
c-e,it 4ithin the ti2e p-o*i,e, the-efo-' he beco2e the absolute o4ne- the-eof.
Not4ithstan,in1 the fact that all the e9tensions he ha, 1i*en ,efen,ants ha, e9pi-e,' he
,i, not' e*en onl3 fo- ta9 ,ecla-ation pu-poses' ,ecla-e the lan,s as his p-ope-t3. =a*in1
-eache, this conclusion' it is nee,less to state that the plaintiff has no -i1ht to the *a-ious
su2s 4hich he see8s in his co2plaint an, to 4hich he -efe-s in the fi-st an, last e--o-s
assi1ne, b3 hi2. 5f' as has been sho4n' he ne*e- beca2e the o4ne- of the lan,s in
0uestion' he can neithe- clai2 pa32ent of the *alue of the sa2e no- as8 to be in,e2nifie,
fo- the ,ep-i*ation of thei- possession. The plaintiff' 2o-eo*e-' has no -eason to co2plain
that his lien' if his -i1ht o*e- sai, lan,s coul, be te-2e, as such' 4as not annotate, in the
ce-tificate of title 4hich the ,efen,ants A/a--a1a ha, obtaine,' o- that the latte- ,i, not
as8 that it be state, the-ein that the lan,s to 4hich it -efe-s a-e cha-1e, 4ith his c-e,it
a1ainst the2A inas2uch as he 4as hi2self ne1li1ent in that he ,i, not as8 the cou-t' 4hile
the -e1ist-ation case -elatin1 to sai, lan,s 4as bein1 hea-,' fo- the annotation of 4hat he
consi,e-e, necessa-3 to p-otect his -i1hts' an, in not see8in1 the -e*ision of 2o,ification
of the ,ec-ee of -e1ist-ation 4ithin the pe-io, of one 3ea- p-o*i,e, fo- the pu-pose.
As to the fifteenth e--o- att-ibute, to the lo4e- cou-t b3 the ,efen,ants A/a--a1a' 4e hol,
that' in *ie4 of the establishe, facts abo*e--elate,' the3 ha*e faile, to sho4 satisfacto-il3
that the3 ha*e an3 -i1ht un,e- all o- an3 of thei- se*e-al counte-clai2s. 5f the coconut
t-ees plante, b3 %oa0uin A/a--a1a on a po-tion of the lan, in 0uestion 4e-e in,ee, lost o-
,est-o3e,' it 4as ,ue 2o-e to his o4n ne1li1ence than to the of the plaintiffA fo- he 4ell
8ne4 on plantin1 the2 in &$;"' &$;: an, &$;# that the plaintiff 2aintaine, the-ein' 4ith
his B%oa0uin A/a--a1a@sC app-o*al' li*estoc8 4hich 2i1ht ,est-o3 the2' an, he ,i, not
ta8e the necessa-3 p-ecautions a1ainst such occu--ence. This is' of cou-se' upon the
supposition that his coconut plantations ,ie, b3 -eason of the ,e*astation cause, b3 the
ani2als of the plaintiff. The p-epon,e-ance of the e*i,ence' ho4e*e-' has sho4n that the3
,ie, on account of the ,-ou1ht alone.
De li8e4ise hol, that the issuance of the 4-its of p-eli2ina-3 in>unction an, attach2ent
at the instance of the plaintiff ,i, not p-e>u,ice the ,efen,ants' inas2uch as the-e is no
co2petent e*i,ence of -eco-, to the cont-a-3. On the othe- han,' the-e is e*i,ence to
sho4 that f-o2 the loan 4hich the ,efen,ants A/a--a1a ha, obtaine, f-o2 <=i>os ,e 5. ,e
la Ra2a< the3 ,e-i*e, a net p-ofit of P&';##.&" 4ithin the sho-t pe-io, of one 3ea- an, a
fe4 2onths.
The-e is no suppo-t fo- the contention of the ,efen,ants that the3 suffe-e, ,a2a1es b3
-eason of the p-eli2ina-3 attach2ent o-,e-e, b3 the lo4e- cou-t because the3 4e-e
unable to sell one of thei- houses to the Calibo 5nstitute fo- the p-ice a1-ee, upon b3 the2
an, sai, entit3. The -eco-, sho4s that the3 lost nothin1 because the Calibo 5nstitute is at
p-esent occup3in1 a po-tion of sai, house an, the3 2a3' if the3 so ,esi-e' sell it e*en no4
to the occupant. 5t ,oes not appea-' on the othe- han,' that the latte- ,esiste, f-o2 bu3in1
it on fin,in1 a bette- buil,in1.
As to the secon, e--o- assi1ne, b3 the plaintiff' it suffices to -ecall that the establishe,
facts ,o not sho4 that the tenants of the ,efen,ants 4e-e -esponsible fo- the 8illin1 an,
4oun,in1 of the ani2als belon1in1 to hi2 o- that sai, tenants acte, upon the insti1ation
of the ,efen,ants. Conse0uentl3' the plaintiff@s clai2 to this effect is enti-el3 4ithout
2e-it.
5n *ie4 of all the fo-e1oin1 an, in -esu2e' 4e hol, that the plaintiff alone has the -i1ht
B&C to -eco*e- f-o2 the ,efen,ants A/a--a1a' b3 *i-tue of the assi1n2ent an, sale 2a,e to
hi2 b3 Atto-ne3 Leo,e1a-io A/a--a1a of the latte-s@ c-e,it of P;'#?? a1ainst the sai,
,efen,ants' the afo-esai, su2 plus inte-est at the -ate of &; pe- cent pe- annu2 f-o2
Au1ust !?' &$;A B;C to -eco*e- f-o2 the ,efen,ant %oa0uin A/a--a1a' in pa-ticula-' the
su2 of P'??? plus inte-est at the -ate of &; pe- cent pe- annu2 f-o2 Ap-il ;:' &$;:. De
also hol, that the ,efen,ants a-e not entitle, to an3thin1 un,e- thei- counte-clai2s.
Dhe-efo-e' -e*e-sin1 the appeale, >u,12ent'
BaC All the ,efen,ants a-e he-eb3 sentence, to pa3 >ointl3 the su2 of P;'#?? to the
plaintiff' 4ith &; pe- cent annual inte-est f-o2 Au1ust !?' &$; until sai, su2 is full3
pai,A Aan,
BbC The ,efen,ant %oa0uin A/a--a1a is sentence, to pa3 the plaintiff the su2 of P'???
plus inte-est at the -ate of &; pe- cent pe- annu2 f-o2 Ap-il ;:' &$;:' until full3 pai,.
The plaintiff is absol*e, f-o2 ,efen,ants@ counte-clai2s an, the 4-it of p-eli2ina-3
in>unction issue, b3 the lo4e- cou-t on 7eb-ua-3 #' &$!&' is he-eb3 ,issol*e,. The-e is no
special p-onounce2ent as to costs. So o-,e-e,.
A*anceHa' C.%.' Eilla-Real' Aba, Santos' 52pe-ial an, Concepcion' %%.' concu-.