URBANO JAVIER and LEONILA ALBIELA, Petitioners, vs. HON.

HERMOGENES CONCEPCION,
JR., Hon. ANDRES REYES, Hon. LUIS REYES, LIM CHUA, TAN TIAN ON alias TAN TIAN UNA
and TAN SIOK TAN alias TAN SIOK TUAN G.R. No. L-36566 November 7, 1979

Facts:

Lim Chua, Tan Tian On and Tan Sick Tan filed for the re conveyance of a parcel of land (Lot 12)
against Urbano Javier and Leonila Albiela. Lot 12 is allegedly a portion of a big parcel of land (Lot 6)
located in Quezon. It was alleged that Lot 12 was ordered excluded from Lot 6 by Chua et. al. They
said that Lot 12 can never be a part of Lot 6 because the Guhit River serves as a natural boundary
between the Lot 12 (which was located in Dolores, Quezon) and Lot 6 (located in Candelaria,
Quezon).

As a defense, Javier alleged that they acquired Lot 12 by part-purchase and part-inheritance; that
they have a Spanish title to the lot; that the lot was adjudicated to their predecessors-in-interest in
Land Registration Cases, that they have declared the land for tax purposes; that they planted the land
with numerous fruits w/o interference from Chua et. al; and that Chua et. al, were never owners of Lot
12 as they have acquired their title through fraud and deceit.

The court a quo rendered judgment in favor of Chua et. al. It held that Lot 12 was part of Lot 6 as
evidenced by the records of the Chief Surveyor of the Land Registration Office. Javier knew of this
fact. His contention that the Commissioner’s report and the plotted area should not be admitted has
no merit because of the manifestation of the Chief Surveyor.

The CA affirmed the decision thus the certiorari.

Issue:

1. Whether or not there was fraud in the registration of Lot 12

Held:

1. No. Fraud as a legal basis for review of a decree means actual/positive fraud as distinguished
from constructive/legal fraud. Actual fraud is a question of fact. Lot 12 was found to be part of Lot 6
under TCT 16817 issued in the name of Chua. Furthermore, the decree of registration has long
become final. Under sec 38 of Land Registration Act: the person allegedly deprived of the land by a
decree of registration under fraud should file in the CFI a petition for review w/in 1 yr. after the entry of
the decree, provided no innocent purchaser for value has acquired an interest. Granting that there
was no actual/ positive fraud in securing the title, Javier is barred from questioning it.

2. Without merit. The rule is one cannot acquire title to a registered land by prescription or adverse
possession. There are no intervening rights of 3rd persons w/c may be affected by a decision
directing the return of Lot 12 to Chua et. al. The defense of laches will not apply in this case.

*SC affirms CA.

Before us is the Petition for Review on Certiorari filed by petitioners Francisco Madrid and Edgardo Bernardo
(petitioners-defendants) to reverse and set aside the Decision dated July 16, 2001 and Resolution dated
November 19, 2001 of the Former Second Division of the Court of Appeals (CA) in CA-G.R. CV No. 47691
entitled "Spouses Bonifacio Mapoy and Felicidad Martinez v. Edgardo Bernardo and Francisco Madrid."

FACTUAL BACKGROUND

The facts of the case, based on the records, are summarized below.

The spouses Bonifacio and Felicidad Mapoy (respondents-plaintiffs) are the absolute owners of two parcels of
land (the properties) known as Lot Nos. 79 and 80 of Block No. 27 of the Rizal Park Subdivision, located at No.
1400 Craig Street corner Maria Clara Street, Sampaloc, Manila, under Transfer Certificate of Title (TCT) Nos.
130064 and 130065 of the Registry of Deeds of Manila. The properties have a combined area of two-hundred
seventy (270) square meters.

On April 4, 1988, the respondents-plaintiffs sought to recover possession of the properties through an accion
publiciana filed with the Regional Trial Court (RTC) of Manila against Gregorio Miranda and his family
(Mirandas) and two other unnamed defendants. After the pre-trial conference, the unnamed defendants were
identified as the present petitioners and summons were duly served on them. These defendants are referred to
in this Decision as the petitioners-defendants. The Mirandas are no longer parties to the present case; they did
not appeal the lower court decision to the CA.

The respondents-plaintiffs alleged that they acquired the properties from the spouses Procopio and
Encarnacion Castelo under a Deed of Absolute Sale dated June 20, 1978. They merely tolerated the
petitioners-defendants' continued occupancy and possession until their possession became illegal when
demands to vacate the properties were made. Despite the demands, the petitioners-defendants continued to
occupy and unlawfully withhold possession of the properties from the respondents-plaintiffs, to their damage
and prejudice. Efforts to amicably settle the case proved futile, leaving the respondents-plaintiffs no recourse
but to file a complaint for ejectment which the lower court dismissed because the respondents-plaintiffs should
have filed an accion publiciana. Thus, they filed their complaint for accion publiciana, praying for recovery of
possession of the properties and the payment of P1,000.00 as monthly rental for the use of the properties from
January 1987 until the petitioners-defendants vacate the properties, plus P50,000.00 as moral and exemplary
damages, and P30,000.00 as attorney's fees.

The Mirandas countered that Gregorio Miranda owned the properties by virtue of an oral sale made in his
favor by the original owner, Vivencio Antonio (Antonio). They claimed that in 1948, Gregorio Miranda was
Antonio's carpenter, and they had a verbal contract for Miranda to stay in, develop, fix and guard the
properties; in 1972, Antonio gave the properties to Gregorio Miranda in consideration of his more than twenty
(20) years of loyal service.

Petitioner-defendant Bernardo also asserted ownership over the portion he occupies based on an oral sale to
him by Antonio. He alleged that he became a ward of Gregorio Miranda in 1965 when he was 10 years old and
helped in the development of the properties; he helped construct a bodega and a house within the properties.
He and Antonio met in 1975, and Antonio promised that the bodega would be given to him in gratitude for his
work.

Petitioner-defendant Madrid, for his part, claimed that he started occupying a portion of the properties in 1974,
and constructed a house on this portion in 1989 with the permission of Bernardo, the son of Gregorio Miranda.

On the basis of the length of their claimed occupation of the properties, the petitioners-defendants likewise
invoked Section 6 of Presidential Decree No. 1517 (PD 1517), also known as the Urban Land Reform Law,
which provides that legitimate tenants of 10 year or more, who have built their homes on these lands and who
have continuously resided thereon for the past ten years, shall not be dispossessed of their occupied lands
and shall be allowed the right of first refusal to purchase these lands within a reasonable time and at
reasonable prices.

THE RTC RULING

On July 21, 1994, the RTC-Manila, Branch 3, rendered its decision, the dispositive portion of which states:

WHEREFORE, judgment is rendered, ordering the defendants and all persons claiming rights thereto to vacate
the premises located at the corner of Ma. Clara and Craig Streets, Sampaloc, Manila, evidenced by TCT No.
130064 and 130065 and restore the same to the plaintiffs. The defendants are hereby ordered to pay plaintiff
the sum of P10,000.00 as attorney's fees and the sum of P1,000.00 as reasonable rental for the use and
occupation of the premises beginning from the filing of this complaint until they vacated the premises.

SO ORDERED.

The RTC upheld the respondents-plaintiffs' right of possession as registered owners of the properties. It found
no merit in the petitioners-defendants' claims of ownership via an oral sale given the absence of any public
instrument or at least a note or memorandum supporting their claims. The RTC also found the petitioners-
defendants' invocation of PD 1517 futile, since its Section 6 refers to a legitimate tenant who has legally
occupied the lands by contract; the petitioners-defendants are mere squatters.

The petitioners-defendants elevated the RTC decision to the CA via an ordinary appeal under Rule 41 of the
Rules of Court. The Mirandas did not join them, and thus failed to file a timely appeal. The petitioners-
defendants objected to the RTC's ruling that the sale or promise of sale should appear in a public instrument,
or at least in a note or memorandum, to be binding and enforceable. They argued that the RTC failed to
consider the respondents-plaintiffs' bad faith in acquiring the properties since they knew of the defects in the
title of the owner. They further argued that the CA should have noted Gregorio Miranda's occupancy since
1948, Bernardo's since 1966 and Madrid's since 1973. The petitioners-defendants further submitted that their
continuous residence for more than ten (10) years entitled them to the rights and privileges granted by PD
1517. They also argued that the RTC should not have applied the pre-trial order to them, since they had not
then been served with summons and were not present during the pre-trial.

THE CA RULING

The CA dismissed the appeal in its decision of July 16, 2001, affirming as a consequence the RTC decision of
July 21, 1994. The CA held that the certificate of title in the name of the respondents-plaintiffs serves as
evidence of an indefeasible and incontrovertible title to the properties. The CA found that the petitioners-
defendants never submitted any proof of ownership. Also, their reliance on their alleged continuous occupation
is misplaced since petitioner-defendant Bernardo's occupation in the concept of owner started only in 1975
when Antonio allegedly gave him a portion of the properties as a gift, while petitioner-defendant Madrid's
occupation could not have been in the concept of an owner, as he recognized Gregorio Miranda as the owner
and paid him rents. The CA noted that the petitioners-defendants are not covered by PD 1517 because the law
does not apply to occupants whose possession is by the owner's mere tolerance. The CA also observed that
the RTC did not err in applying the pre-trial order to the petitioners-defendants because they derive the right of
possession from the principal defendants, the Mirandas, who were duly represented at the pre-trial; they
waived their right to pre-trial by failing to move that one be held.

The petitioners-defendants moved but failed to secure a reconsideration of the CA decision; hence, they came
to us through the present petition.

THE PETITION and THE PARTIES' POSITIONS

The petitioners-defendants essentially reiterate the issues they raised before the CA, i.e., that the ruling court
failed to consider: (1) the respondents-plaintiffs' bad faith in the acquisition of the properties; (2) the occupancy
of Gregorio Miranda since 1948, Bernardo's since 1966, and Madrid's since 1973; and, (3) petitioners-
defendants' continuous residence for more than ten (10) years entitling them to the rights and privileges
granted by PD 1517. They also contend that the principle of indefeasibility of the certificate of title should not
apply in this case because fraud attended the respondents-plaintiffs' acquisition of title. They again point out
that the pre-trial order should not have been applied to them since they were not present during the pre-trial
conference.

The respondents-plaintiffs counter-argue that the issues raised by the petitioners-defendants are essentially
factual in nature and all have been well-considered and adequately refuted in the challenged CA decision.

OUR RULING

We resolve to deny the petition for lack of merit.

a. Accion Publiciana and Ownership

Accion publiciana, also known as accion plenaria de posesion,[10] is an ordinary civil proceeding to determine
the better right of possession of realty independently of title. It refers to an ejectment suit filed after the
expiration of one year from the accrual of the cause of action or from the unlawful withholding of possession of
the realty.

The objective of the plaintiffs in accion publiciana is to recover possession only, not ownership. However,
where the parties raise the issue of ownership, the courts may pass upon the issue to determine who between
or among the parties has the right to possess the property. This adjudication, however, is not a final and
binding determination of the issue of ownership; it is only for the purpose of resolving the issue of possession,
where the issue of ownership is inseparably linked to the issue of possession. The adjudication of the issue of
ownership, being provisional, is not a bar to an action between the same parties involving title to the property.
The adjudication, in short, is not conclusive on the issue of ownership.

In the present case, both the petitioners-defendants and the respondents-plaintiffs raised the issue of
ownership. The petitioners-defendants claim ownership based on the oral sale to and occupation by Gregorio
Miranda, their predecessor-in-interest, since 1948. On the other hand, the respondents-plaintiffs claim that they
are the owners, and their ownership is evidenced by the TCTs in their names. Under this legal situation,
resolution of these conflicting claims will depend on the weight of the parties' respective evidence, i.e., whose
evidence deserves more weight.

b. Findings of Fact Below - Final and Conclusive

A weighing of evidence necessarily involves the consideration of factual issues - an exercise that is not
appropriate for the Rule 45 petition that the petitioners-defendants filed; under the Rules of Court, the parties
may raise only questions of law under Rule 45, as the Supreme Court is not a trier of facts.[16] As a rule, we
are not duty-bound to again analyze and weigh the evidence introduced and considered in the tribunals below.
This is particularly true where the CA has affirmed the trial court's factual findings, as in the present case.
These trial court findings, when affirmed by the CA, are final and conclusive and are not open for our review on
appeal.

In the present case, both the RTC and the CA gave more weight to the certificate of title the respondents-
plaintiffs presented, and likewise found that the petitioners-defendants' possession of the properties was
merely upon the respondents-plaintiffs' tolerance. We see no reason to doubt or question the validity of these
findings and thus recognize their finality.

As a matter of law, a Torrens Certificate of Title is evidence of indefeasible title of property in favor of the
person in whose name the title appears. The title holder is entitled to all the attributes of ownership of the
property, including possession, subject only to limits imposed by law. In the present case, the respondents-
plaintiffs are indisputably the holders of a certificate of title against which the petitioners-defendants' claim of
oral sale cannot prevail. As registered titleholders, they are entitled to possession of the properties.

c. Claim of Fraud - a Prohibited Collateral Attack

Registration of land under the Torrens system, aside from perfecting the title and rendering it indefeasible after
the lapse of the period allowed by law, also renders the title immune from collateral attack. A collateral attack
transpires when, in another action to obtain a different relief and as an incident of the present action, an attack
is made against the judgment granting the title. This manner of attack is to be distinguished from a direct attack
against a judgment granting the title, through an action whose main objective is to annul, set aside, or enjoin
the enforcement of such judgment if not yet implemented, or to seek recovery if the property titled under the
judgment had been disposed of.[22] To permit a collateral attack on respondents-plaintiffs' title is to water down
the integrity and guaranteed legal indefeasibility of a Torrens title.

The petitioners-defendants' attack on the validity of respondents-plaintiffs' title, by claiming that fraud attended
its acquisition, is a collateral attack on the title. It is an attack incidental to their quest to defend their
possession of the properties in an "accion publiciana," not in a direct action whose main objective is to impugn
the validity of the judgment granting the title. This is the attack that possession of a Torrens Title specifically
guards against; hence, we cannot entertain, much less accord credit to, the petitioners-defendants' claim of
fraud to impugn the validity of the respondents-plaintiffs' title to their property.

d. Claimed Protection under PD 1517

To qualify for protection under PD 1517 and avail of the rights and privileges granted by the said decree, the
claimant must be: (1) a legitimate tenant of the land for ten (10) years or more; (2) must have built his home on
the land by contract; and, (3) has resided continuously for the last ten (10) years. The "tenant" covered by PD
1517 is, as defined under Section 3(f) thereof, "the rightful occupant of land and its structures, but does not
include those whose presence on the land is merely tolerated and without the benefit of contract, those who
enter the land by force or deceit, or those whose possession is under litigation."

Stated differently, those whose possession or occupation of land is devoid of any legal authority or those
whose contracts of lease are already terminated, or had already expired, or whose possession is under
litigation are not considered "tenants" under the decree. Conversely, a legitimate tenant is one who is not a
usurper or an occupant by tolerance. The petitioners-defendants whose occupation has been merely by the
owner's tolerance obviously fall outside the coverage of PD 1517 and cannot seek its protection.

e. The Pre-Trial-based Objection

Without doubt, the petitioners-defendants, having been belatedly served summons and brought into the case,
were entitled to a pre-trial as ordained by Section 2, Rule 18 of the Rules of Court. Unless substantial prejudice
is shown, however, the trial court's failure to schedule a case for new trial does not render the proceedings
illegal or void ab initio. Where, as in this case, the trial proceeded without any objection on the part of the
petitioners-defendants by their failure to bring the matter to the attention of the RTC, the petitioners-defendants
are deemed to have effectively forfeited a procedural right granted them under the Rules. Issues raised for the
first time on appeal and not raised timely in the proceedings in the lower court are barred by estoppel. Points of
law, theories, issues and arguments not brought to the attention of the trial court ought not to be considered by
a reviewing court, as these cannot be raised for the first time on appeal. To consider the alleged facts and
arguments raised belatedly would amount to trampling on the basic principles of fair play, justice, and due
process.

In arriving at this conclusion, we considered, as the CA did, that the petitioners-defendants anchored their right
to possess the property on the defenses raised by the original defendant, Gregorio Miranda, their predecessor-
in-interest. While belatedly summoned, the petitioners-defendants did not raise a substantial matter in their
answer differently from those propounded by Gregorio Miranda; they merely echoed Miranda's positions and
arguments. Thus, no prejudice could have resulted to the petitioners-defendants, especially after they entered
trial and had the opportunity to fully ventilate their positions.

f. Attorney's Fees

As a general rule, the appellate court may only pass upon errors assigned by the parties. By way of exception,
even unassigned errors may be taken up by the court on appeal if they involve (1) errors affecting the lower
court's jurisdiction over the subject matter, (2) plain errors not specified, and (3) clerical errors. In the present
case, we note that the award of attorney's fees appears only in the dispositive portion of the RTC decision
without any elaboration, explanation, and justification. The award stood there all by itself. We view this as a
plain legal error by the RTC that must be rectified.

Article 2208 of the Civil Code enumerates the instances justifying the grant of attorney's fees; in all cases, the
award must be reasonable, just and equitable. Attorney's fees as part of damages are not meant to enrich the
winning party at the expense of the losing litigant. They are not awarded every time a party prevails in a suit
because of the policy that no premium should be placed on the right to litigate.[30] The award of attorney's
fees is the exception rather than the general rule. Thus, findings reflecting the conditions imposed by Article
2208 are necessary to justify an award; attorney's fees mentioned only in the dispositive portion of the decision
without any prior justification in the body of the decision is a baseless award that must be struck down.

WHEREFORE, premises considered, we here DENY the petition for lack of any reversible error, and
consequently AFFIRM the decision of July 16, 2001 of the Court of Appeals in CA-G.R. CV No. 47691, with the
MODIFICATION that the attorney's fees awarded to respondents-plaintiffs are hereby DELETED. Costs
against the petitioners-defendants. SO ORDERED.
FRANCISCO I. CHAVEZ v. PUBLIC ESTATES AUTHORITY, GR No. 133250, 2002-07-09

Facts:

On November 20, 1973, the government, through the Commissioner of Public Highways, signed a contract
with the Construction and Development Corporation of the Philippines ("CDCP" for brevity) to reclaim certain
foreshore and offshore areas of Manila Bay. On February 4, 1977, then President Ferdinand E. Marcos issued
Presidential Decree No. 1084 creating PEA. On the same date, then President Marcos issued Presidential
Decree No. 1085 transferring to PEA the "lands reclaimed in the foreshore and offshore of the Manila Bay
under the Manila-Cavite Coastal Road and Reclamation Project (MCCRRP). April 25, 1995, PEA entered into a
Joint Venture Agreement ("JVA" for brevity) with AMARI, a private corporation, to develop the Freedom Islands.

Issues:

WHETHER THE STIPULATIONS IN THE AMENDED JOINT VENTURE AGREEMENT FOR THE TRANSFER
TO AMARI OF CERTAIN LANDS, RECLAIMED AND STILL TO BE RECLAIMED, VIOLATE THE 1987
CONSTITUTION

The threshold issue is whether AMARI, a private corporation, can acquire and own under the Amended JVA
367.5 hectares of reclaimed foreshore and submerged areas in Manila Bay in view of Sections 2 and 3, Article
XII of the 1987 Constitution which state that:
Section 2. All lands of the public domain, waters, minerals, coal, petroleum, and other mineral oils, all forces of
potential energy, fisheries, forests or timber, wildlife, flora and fauna, and other natural resources are owned by
the State. With the... exception of agricultural lands, all other natural resources shall not be alienated.
Section 3. Alienable lands of the public domain shall be limited to agricultural lands. Private corporations or
associations may not hold such alienable lands of the public domain except by lease

Ruling:

In the instant case, AMARI seeks to acquire from PEA, a public corporation, reclaimed lands and submerged
areas for... non-agricultural purposes by purchase under PD No. 1084 (charter of PEA) and Title III of CA No.
141. Certain undertakings by AMARI under the Amended JVA constitute the consideration for the purchase.
Neither AMARI nor PEA can claim... judicial confirmation of their titles because the lands covered by the
Amended JVA are newly reclaimed or still to be reclaimed.

The Spanish Law of Waters of 1866 and the Civil Code of 1889

Article 5. Lands reclaimed from the sea in consequence of works constructed by the State, or by the provinces,
pueblos or private persons, with proper permission, shall become the property of the party constructing such
works, unless otherwise provided by the... terms of the grant of authority.

Article 339 of the Civil Code of 1889 defined property of public dominion as follows:

Art. 339. Property of public dominion is