Heirs of Narvasa, Sr. v.

Imbornal

G.R. No. 182908

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Republic of the Philippines

SUPREME COURT
Manila
SECOND DIVISION
G.R. No. 182908

August 6, 2014

HEIRS OF FRANCISCO I. NARVASA, SR., and HEIRS OF PETRA IMBORNAL and PEDRO FERRER,
represented by their Attorney-in-Fact, MRS. REMEDIOS B. NARVASA-REGACHO, Petitioners,
vs.
EMILIANA, VICTORIANO, FELIPE, MA TEO, RAYMUNDO, MARIA, and EDUARDO, all surnamed
IMBORNAL, Respondents.
DECISION
PERLAS-BERNABE, J.:
Assailed in this petition for review on certiorari are the Decision dated November 28, 2006 and the Resolution
dated May 7, 2008 of the Court of Appeals (CA) in CA-G.R. CV No. 57618 which reversed and set aside the
Decision dated August 20, 1996 of the Regional Trial Court of Dagupan City, Branch 44 (RTC) in Civil Case No.
D-6978, declared (a) the descendants of Ciriaco Abrio as the exclusive owners of the Motherland covered by
Original Certificate of Title (OCT) No. 1462, (b) the descendants of respondent Victoriano Imbornal (respondent
Victoriano) as the exclusive owners of the first accretion (First Accretion) covered by OCT No. P-318, and (c) the
descendants of Pablo Imbornal (Pablo) as the exclusive owners of the second accretion (Second Accretion) covered
by OCT No. 21481, and dismissed the complaint and counterclaim in all other respects for lack of merit.
The Facts
Basilia Imbornal+ (Basilia) had four (4) children, namely, Alejandra, Balbina, Catalina, and Pablo.Francisco I.
Narvasa, Sr. (Francisco) and Pedro Ferrer (Pedro) were the children of Alejandra, while petitioner Petra Imbornal
(Petra) was the daughter of Balbina. Petitionersare the heirs and successors-in-interest of Francisco, Pedro, and
Petra (Francisco, et al.). On the other hand, respondentsEmiliana, Victoriano, Felipe, Mateo, Raymundo, Maria,
and Eduardo, all surnamed Imbornal, are the descendants of Pablo.
During her lifetime, Basilia owned a parcel of land situated at Sabangan, Barangay Nibaliw West, San Fabian,
Pangasinan with an area of 4,144 square meters (sq. m.), more or less (Sabangan property), which she conveyed to
her three (3) daughters Balbina, Alejandra, and Catalina (Imbornal sisters) sometime in 1920.
Meanwhile, Catalinas husband, Ciriaco Abrio (Ciriaco), applied for and was granted a homestead patent over a
31,367-sq. m. riparian land (Motherland) adjacent to the Cayanga River in San Fabian, Pangasinan. He was
eventually awarded Homestead Patent No. 24991 therefor, and, on December 5, 1933, OCT No. 1462 was issued in
his name. Later, or on May 10, 1973, OCT No. 1462 was cancelled, and Transfer Certificate of Title (TCT) No.
101495 was issued in the name of Ciriacos heirs, namely: Margarita Mejia; Rodrigo Abrio, marriedto Rosita
Corpuz; Antonio Abrio, married to Crisenta Corpuz; Remedios Abrio, married to Leopoldo Corpuz; Pepito Abrio;
Dominador Abrio; Francisca Abrio; Violeta Abrio; and Perla Abrio (Heirs of Ciriaco).
Ciriaco and his heirs had since occupied the northern portionof the Motherland, while respondents occupied the
southern portion.

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Sometime in 1949, the First Accretion, approximately 59,772 sq. m. in area, adjoined the southern portion of the
Motherland. On August 15, 1952, OCT No. P-318 was issued in thename of respondent Victoriano, married to
Esperanza Narvarte, covering the First Accretion. Decades later, or in 1971, the Second Accretion, which had an
area of 32,307 sq. m., more or less, abutted the First Accretion on its southern portion. On November 10, 1978,
OCT No. 21481 was issued in the names of all the respondents covering the Second Accretion.
Claiming rights over the entire Motherland, Francisco, et al., as the children of Alejandra and Balbina, filed on
February 27,1984 an Amended Complaint for reconveyance, partition,and/or damages against respondents,
docketed as Civil Case No. D-6978. They anchored their claim on the allegation that Ciriaco, with the help of his
wifeCatalina, urged Balbina and Alejandra to sell the Sabangan property, and that Ciriaco used the proceeds
therefrom to fund his then-pending homestead patent application over the Motherland. In return, Ciriaco agreed
that once his homestead patent is approved, he will be deemed to be holding the Motherland which now included
both accretions in trust for the Imbornal sisters.
Likewise, Francisco, et al.alleged that through deceit, fraud, falsehood, and misrepresentation, respondent
Victoriano, with respect to the First Accretion, and the respondents collectively, with regard to the Second
Accretion, had illegally registered the said accretions in their names, notwithstanding the fact that they werenot the
riparian owners (as they did not own the Motherland to which the accretions merely formed adjacent to). In this
relation, Francisco, et al. explained that they did not assert their inheritance claims over the Motherland and the
two (2) accretions because they respected respondents rights, until they discovered in 1983 that respondents have
repudiated their (Francisco, et al.s) shares thereon. Thus, bewailing that respondents have refused them their rights
not only with respect to the Motherland, but also to the subsequent accretions, Francisco, et al. prayed for the
reconveyance ofsaid properties, or, in the alternative, the payment of their value, as well as the award of moral
damages in the amount of P100,000.00, actual damages in the amount of P150,000.00, including attorneys fees
and other costs.
In their Amended Answer dated March 5, 1984, respondents contended that: (a) the Amended Complaint statedno
cause of action against them, having failed to clearly and precisely describe the disputed properties and specify the
transgressions they have allegedly committed; (b) the action was barred by prescription; and (c) that the properties
sought to be reconveyed and partitioned are not the properties of their predecessors-ininterest but, instead, are
covered by Torrens certificates of titles, free from any encumbrance, and declared for taxation purposes in their
names. In this regard, respondents prayed that the Amended Complaint be dismissed and that Francisco, et al.be
held liable for the payment of moral damages, attorneys fees, and costs of suit in their favor.
During trial, it was established from the testimonies of the parties that the Motherland was eventually sold bythe
Heirs of Ciriaco to a certain Gregorio de Vera (de Vera), and thatsaid heirs and deVera were not impleaded as
parties in this case.
The RTC Ruling
On August 20, 1996, the RTC rendered a Decision in favor of Francisco, et al. and thereby directed respondents to:
(a) reconvey to Francisco, et al. their respective portions in the Motherland and in the accretions thereon, or their
pecuniary equivalent; and (b) pay actual damages in the amount of P100,000.00, moral damages in the amount of
P100,000.00, and attorneys fees in the sum of P10,000.00, as well as costs of suit.
The RTC found that the factual circumstances surrounding the present case showed that an implied trust existed

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between Ciriaco and the Imbornal sisters with respect to the Motherland. It gave probative weight to Francisco, et
al.s allegation that the Sabangan property, inherited by the Imbornal sisters from their mother, Basilia, was sold in
order to help Ciriaco raise funds for his then-pending homesteadpatent application. In exchange therefor, Ciriaco
agreed that he shall hold the Motherland in trust for them once his homestead patent application had been
approved. As Ciriaco was only able to acquire the Motherland subject of the homestead patent through the
proceeds realized from the sale of the Sabangan property, the Imbornal sisters and, consequently, Francisco, et al.
(as the children of Alejandra and Balbina) are entitled to their proportionate shares over the Motherland,
notwithstanding the undisputed possession of respondents over its southern portion since 1926.
With respect to the accretions thatformed adjacent to the Motherland, the RTC ruled that the owner of the
Motherland is likewise the owner of the said accretions. Considering that the Imbornal sisters have become
proportionate owners of the Motherland by virtue of the implied trust created between them and Ciriaco, they
(Imbornal sisters) and their heirs are also entitled to the ownership of said accretions despite the fact that
respondents were able to register them in their names.
Dissatisfied with the RTCs ruling, respondents elevated the matter on appeal to the CA.
The CA Ruling
On November 28, 2006, the CA rendered a Decision reversing and setting aside the RTC Decision and entering a
new one declaring: (a) the descendants of Ciriaco as the exclusive owners of the Motherland; (b) the descendants
of respondent Victoriano asthe exclusive owners of the First Accretion; and (c) the descendants of Pablo (i.e.,
respondents collectively) as the exclusive owners of the Second Accretion.
With respect to the Motherland, the CA found that Ciriaco alone was awarded a homestead patent, which later
became the basis for the issuance of a Torrens certificate of title in his name; as such, saidcertificate of title cannot
be attacked collaterally through an action for reconveyance filed by his wifes (Catalinas) relatives (i.e., Francisco,
et al.being the children of Alejandra and Balbina, who, in turn, are the sisters of Catalina). The CA further observed
that the homestead patent was not aninheritance of Catalina; instead, it was awarded by the government to Ciriaco
after having fully satisfied the stringent requirements set forth under Commonwealth Act No. 141, as amended, and
his title thereto had already become indefeasible. Consequently, since the entire Motherland was titled in Ciriacos
name, his descendants should be regarded as the absolute owners thereof.
On the other hand, with regard to the disputed accretions, the CA ruled that respondents i.e., respondent
Victoriano with respect to the First Accretion, and all the respondents withrespect to the Second Accretion need
not be the owners of the Motherland in order to acquire them by acquisitive prescription. Considering that
accretions are not automatically registered in the name of the riparianowner and are, therefore, subject to
acquisitive prescription by third persons, any occupant may apply for their registration. In this case, the CA found
that respondents have acquired title to the subject accretions by prescription, considering that they have been in
continuous possession and enjoyment of the First Accretion in the concept of an owner since 1949 (when the First
Accretion was formed), which resulted in the issuance of a certificate of title in the name of respondent Victoriano
covering the same. Accordingly, they have also become the riparian owners of the Second Accretion, and given
thatthey have caused the issuance of OCT No. 21481 in their names over the said Accretion, they have also become
the absolute ownersthereof. Since Francisco, et al. took no action to protect their purported interests over the
disputed accretions, the respondents titles over the same had already become indefeasible, to the exclusion of
Francisco, et al.

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At odds with the CAs disposition, Francisco et al. filed a motion for reconsideration which was, however,denied
by the CA in a Resolution dated May 7, 2008, hence, this petition taken by the latters heirs as their successors-ininterest.
The Issue Before the Court
The issue to be resolved by the Court is whether or not the CA erred in declaring that: (a) the descendants of
Ciriaco are the exclusive owners of the Motherland; (b) the descendants of respondent Victoriano are the exclusive
owners of the First Accretion; and (c) the descendants of Pablo (respondents collectively) are the exclusive owners
of the Second Accretion on the basis of the following grounds: (a) prescription of the reconveyance action, which
was duly raised as anaffirmative defense in the Amended Answer, and (b) the existence of an implied trust between
the Imbornal sisters and Ciriaco.
The Courts Ruling
The petition is bereft of merit.
A. Procedural Matter: Issue of Prescription.
At the outset, the Court finds that the causes of action pertaining to the Motherland and the First Accretion are
barred by prescription.
An action for reconveyance is one that seeks to transfer property, wrongfully registered by another, to its rightful
and legal owner. Thus, reconveyance is a remedy granted only tothe owner of the property alleged to be
erroneously titled in anothers name.
As the records would show, the Amended Complaint filed by petitioners predecessors-in-interest, Francisco, et al.
is for the reconveyance of their purported shares or portions in the following properties: (a) the Motherland,
originally covered by OCT No. 1462 in the name of Ciriaco; (b) the First Accretion, originally covered by OCT
No. P-318 in the name of respondent Victoriano; and (c) the Second Accretion, covered by OCT No. 21481 in the
name of all respondents. To recount, Francisco, et al. asserted co-ownership over the Motherland, alleging that
Ciriaco agreed to hold the same in trustfor their predecessors-in-interest Alejandra and Balbina upon issuance of
the title in his name. Likewise, they alleged that respondents acquired the First and Second Accretions by means of
fraudand deceit.
When property is registered in anothers name, an implied or constructive trust is created by law in favor of the true
owner. Article 1456 of the Civil Code provides that a person acquiring property through fraud becomes, by
operation of law, a trustee ofan implied trust for the benefit of the real owner of the property. An action for
reconveyance based on an implied trust prescribes in ten (10) years, reckoned from the date of registration of the
deed or the date ofissuance of the certificate of title over the property, if the plaintiff is not in possession. However,
if the plaintiff is in possession of the property, the action is imprescriptible. As held in the case of Lasquite v.
Victory Hills, Inc.:
An action for reconveyance based on an implied trust prescribes in 10 years. The reference point of the 10yearprescriptive period is the date of registration of the deed or the issuance of the title. The prescriptive period
applies only if there is an actual need to reconvey the property as when the plaintiff is not in possession of the
property. However, if the plaintiff, as the realowner of the property also remains in possession of the property, the
prescriptive period to recover title and possession of the property does not run against him. In such a case, an

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action for reconveyance, if nonetheless filed, would be in the nature of a suit for quieting of title, an action that is
imprescriptible. (Emphases supplied)
Based on the foregoing, Francisco, et al. had then a period of ten (10) years from the registration of the respective
titles covering the disputed properties within which to file their action for reconveyance, taking into account the
fact that they were never in possessionof the said properties. Hence, with respect tothe Motherland covered by
OCT No. 1462 issued on December 5, 1933 in the name of Ciriaco, an action for reconveyance therefor should
have been filed until December 5, 1943; with respect to the First Accretion covered by OCT No. P-318 issued on
August 15, 1952in the name of respondent Victoriano, an action of the same nature should have been filed
untilAugust 15, 1962; and, finally, with respect to the Second Accretion covered by OCT No. 21481 issued on
November 10, 1978in the name of the respondents, a suit for reconveyance therefor should have been filed until
November 10, 1988.
A judicious perusal of the records, however, will show that the Amended Complaint covering all three (3) disputed
properties was filed only on February 27, 1984. As such, it was filed way beyond the 10-year reglementary period
within which to seek the reconveyance of two (2) of these properties, namely, the Motherland and the First
Accretion, with only the reconveyance action with respect to the Second Accretion having been seasonably filed.
Thus, considering thatrespondents raised prescription as a defense in their Amended Answer, the Amended
Complaint with respect to the Motherland and the First Accretion ought to have beendismissed based on the said
ground, with only the cause of action pertaining to the Second Accretion surviving. As will be, however, discussed
below, the entirety of the Amended Complaint, including the aforesaid surviving cause of action, would falter on its
substantive merits since the existence of the implied trust asserted in this case had not been established. In effect,
the said complaint is completely dismissible.
B. Substantive Matter: Existence of an Implied Trust.
The main thrust of Francisco, et al.s Amended Complaint is that an implied trust had arisen between the Imbornal
sisters, on the one hand, and Ciriaco, on the other, with respect to the Motherland. This implied trust is anchored on
their allegation that the proceeds from the sale of the Sabangan property an inheritance of their predecessors, the
Imbornal sisters were used for the then-pending homestead application filed by Ciriaco over the Motherland. As
such, Francisco, et al. claim that they are, effectively, coowners of the Motherland together with Ciriacos heirs.
An implied trust arises, not from any presumed intention of the parties, but by operation of law in order to satisfy
the demands of justice and equity and to protect against unfair dealing or downright fraud. To reiterate, Article
1456 of the Civil Code states that "[i]f 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."
The burden of proving the existence ofa trust is on the party asserting its existence, and such proof must be clear
and satisfactorily show the existence of the trust and its elements. While implied trusts may be proven by oral
evidence, the evidence must be trustworthy and received by the courts with extreme caution, and should not be
made to rest on loose, equivocal or indefinite declarations. Trustworthy evidence is required because oral evidence
can easily be fabricated.
In this case, it cannot be said, merely on the basis of the oral evidence offered by Francisco, et al., that the
Motherland had been either mistakenly or fraudulently registered in favor of Ciriaco. Accordingly, it cannot be said
either that he was merely a trustee of an implied trust holding the Motherland for the benefit of the Imbornal sisters

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or their heirs.
As the CA had aptly pointed out, a homestead patent award requires proof that the applicant meets the stringent
conditions set forth under Commonwealth Act No. 141, as amended, which includes actual possession, cultivation,
and improvement of the homestead. It must be presumed, therefore, that Ciriaco underwent the rigid process and
duly satisfied the strict conditions necessary for the grant of his homestead patent application. As such, it is highly
implausible thatthe Motherland had been acquired and registered by mistake or through fraudas would create an
implied trust between the Imbornal sisters and Ciriaco, especially considering the dearth of evidence showing that
the Imbornal sisters entered into the possession of the Motherland, or a portion thereof, orasserted any right over
the same at any point during their lifetime. Hence, when OCT No. 1462 covering the Motherland was issued in his
name pursuant to Homestead Patent No. 24991 on December 15, 1933, Ciriacos titleto the Motherland had
become indefeasible. It bears to stress that the proceedings for land registration that led to the issuance of
Homestead Patent No. 24991 and eventually, OCT No. 1462 in Ciriacos name are presumptively regular and
proper, which presumption has not been overcome by the evidence presented by Francisco, et al.
In this light, the Court cannot fully accept and accord evidentiary value to the oral testimony offered by Francisco,
et al. on the alleged verbal agreement between their predecessors, the Imbornal sisters, and Ciriaco with respect to
the Motherland. Weighed against the presumed regularity of the award of the homestead patent to Ciriaco and the
lack of evidence showing that the same was acquired and registered by mistake or through fraud, the oral evidence
of Francisco, et al.would not effectively establish their claims of ownership. It has been held that oral testimony as
to a certain fact, depending as it does exclusively on human memory, is not as reliable as written or documentary
evidence, especially since the purported agreement transpired decades ago, or in the 1920s. Hence, with respect to
the Motherland, the CA did not err in holding that Ciriaco and his heirs are the owners thereof, without prejudice to
the rights of any subsequent purchasers for value of the said property.
Consequently, as Francisco, et al.failed to prove their ownership rights over the Motherland, their cause of action
with respect to the First Accretion and, necessarily, the Second Accretion, must likewise fail. A further exposition is
apropos.
Article 457 of the Civil Code states the rule on accretion as follows: "[t]o the owners of lands adjoining the banks
of rivers belong the accretion which they gradually receive from the effects of the current of the waters." Relative
thereto, in Cantoja v. Lim, the Court, citing paragraph 32 of the Lands Administrative Order No. 7-1 dated April
30, 1936, in relation to Article 4 of the Spanish Law of Waters of 1866, as well as related jurisprudence on the
matter, elucidated on the preferential right of the riparian owner over the land formed by accretions, viz.:
Being the owner of the land adjoining the foreshore area, respondent is the riparian or littoralowner who has
preferential right to lease the foreshore area as provided under paragraph 32 of the Lands Administrative Order No.
7-1, dated 30 April 1936, which reads:
32. Preference of Riparian Owner. The owner of the property adjoining foreshore lands, marshylands or lands
covered with water bordering upon shores or banks of navigable lakes or rivers, shall be given preference to apply
for such lands adjoining his property as may not be needed for the public service, subject to the laws and
regulations governing lands of this nature, provided that he applies therefor within sixty (60) days from the date he
receives a communication from the Director of Lands advising him of his preferential right.
The Court explained in Santulan v. The Executive Secretary[170 Phil. 567; 80 SCRA 548 (1977)] the reason for

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such grant of preferential right to the riparian or littoral owner, thus:

Now, then, is there any justification for giving to the littoral owner the preferential right to lease the foreshore land
abutting on his land?
That rule in paragraph 32 is in consonance with Article 4 of the Spanish Law of Waters of 1866 which provides
that, while lands added to the shore by accretions and alluvial deposits caused by the action of the sea form part of
the public domain, such lands, "when they are no longer washed by the waters of the sea and are not necessary for
purposes of public utility, or for the established [sic] of special industries, or for the coast guard service, "shall be
declared by the Government "to be the property of the owners of the estates adjacent thereto and as increment
thereof."
In other words, article 4 recognizes the preferential right of the littoral owner (riparian according to paragraph 32)
to the foreshore land formed by accretionsor alluvial deposits due to the action of the sea.
The reason for that preferential right is the same as the justification for giving accretions to the riparianowner,
which is that accretion compensates the riparian owner for the diminutions which his land suffers by reason of the
destructive force of the waters. So, in the case of littoral lands, he who loses by the encroachments of the sea
should gain by its recession.
Accordingly, therefore, alluvial deposits along the banks of a creek or a river do not form part of the public domain
as the alluvial property automatically belongs to the owner of the estate to which it may have been added. The only
restriction provided for by law is that the owner of the adjoining property must register the same under the Torrens
system; otherwise, the alluvial property may be subject to acquisition through prescription by third persons.
In this case, Francisco, et al. and, now, their heirs, i.e., herein petitioners,. are not the riparian owners of the
Motherland to which the First Accretion had .attached, hence, they cannot assert ownership over the First
Accretion. Consequently, as the Second Accretion had merely attached to the First Accretion, they also have no
right over the Second Accretion. Neither were they able to show that they acquired these properties through
prescription as it was not established that they were in possession of any of them. Therefore, whether through
accretion or, independently, through prescription, the discernible conclusion is that Francisco et al. and/or
petitioners' claim of title over the First and Second Accretions had not been substantiated, and, as a result, said
properties cannot be reconveyed in their favor. This is especially so since on the other end of the fray lie
respondents armed with a certificate of title in their names covering the First and Second Accretions coupled with
their possession thereof, both of which give rise to the superior credibility of their own claim. Hence, petitioners'
action for reconveyan.ce with respect to both accretions must altogether fail.
WHEREFORE, the petition is DENIED. The Decision dated November 28, 2006 and the Resolution dated May
7, 2008 of the Court of Appeals in CA-G.R. CV No. 57618 are hereby AFFIRMED, and a new judgment is
entered DISMISSING the Amended Complaint dated February 27, 1984 filed in said case.
SO ORDERED.
Carpio, (Chairperson), Brion, Del Castillo, and Perez, JJ., concur.