Heirs of Labanon

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Heirs of Labanon v. Heirs of Labanon | GR 160711 | August 14, 2004 | J. Velaso, Jr.

!A"#$: Constancio Labanon settled upon a piece of alienable and disposable public agricultural land
situated in Kidapawan, Cotabato. He cultivated the said lot and introduced permanent improvements.
Constancio asked his brother, Maximo, who was better educated to file a public land application under the
express agreement that the will divide the said lot as soon as it would be feasible for them to do so.
!uring the time of the application it was Constancio who continued to cultivate the said lot. "he
Homestead #pplication was approved and an $riginal Certificate of "itle over said lot was issued in favor 
of Maximo Labanon.
 
Maximo Labanon executed a document denominated as %#ssignment of &ights and $wnership' to
safeguard the ownership and interest of his brother Constancio Labanon. Later on, Maximo executed a
sworn statement reiterating his desire that his elder brother Constancio, his heirs and assigns shall own
the eastern portion of the Lot.

 #fter the death of Constancio, his heirs executed an (e)xtra*+udicial settlement of estate with simultaneous
sale over the aforesaid eastern portion of the lot in favor of #lberto Makilang, the husband of isitacion
Labanon, one of the children of Constancio. -ubseuentl, the parcel of land was declared for taxation
purposes in the name of #lberto. "he defendants heirs of Maximo caused to be cancelled from the
records of the defendant /rovincial #ssessor of Cotabato the aforesaid tax declaration and the latter,
without first verifing the legalit of the basis for said cancellation, cancelled the same. "he heirs of 
Constancio demanded the owner0s cop of the certificate of title covering the aforesaid Lot to be
surrendered to the &egister of !eeds.
 
%$$&'$:
1. 234 the $C" issued the name of M#56M$ L#7#4$4 be now considered indefeasible
and conclusive8 and
 
9. 234 the "rust #greement allegedl made b Constancio Labanon and Maximo Labanon
prescribed

H'L()
 

1. 4o. -ection 9 of /! 1;9< does not totall deprive a part of an remed to recover the propert
fraudulentl registered in the name of another. 6t merel precludes the reopening of the registration
proceedings for titles covered b the "orrens -stem, but does not foreclose other remedies for the
reconveance of the propert to its rightful owner. 2hile it is true that -ection 9 of /! 1;9< provides
that the decree of registration becomes incontrovertible after a ear, it does not altogether deprive an
aggrieved part of a remed in law. "he acceptabilit of the "orrens -stem would be impaired, if it is
utili=ed to perpetuate fraud against the real owners. "he action for &ecover of $wnership before the
&"C is indeed the appropriate remed.
9. 4o. Maximo Labanon maintained the title over the propert while acknowledging the true ownership of 
Constancio Labanon over the eastern portion of the land. "he existence of an express trust cannot be
doubted nor disputed. 6n the case at bar, Maximo never repudiated the express trust instituted between
him and Constancio. #nd after Maximo0s death, the trust could no longer be renounced8 thus,
respondents0 right to enforce the trust agreement can no longer be restricted nor pre+udiced b
prescription. 6n addition, petitioners can no longer uestion the validit of the positive declaration of 
Maximo Labanon in the #ssignment of &ights and $wnership in favor of the late Constancio Labanon,
as the agreement was not impugned during the former0s lifetime and the recognition of his brother0s
rights over the eastern portion of the lot was further affirmed and confirmed in the subseuent -worn
-tatement.

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