G.R. No. 112796. March 05, 1998 (Case Brief / Digest)

### Title: Lagazo vs. Court of Appeals and Alfredo Cabanlit

### Facts:
1. **Award of Property:** Catalina Jacob Vda. de Reyes, a widow and grandmother of Tito Lagazo (petitioner), was awarded a 60.10-square meter lot within the Monserrat Estate by the City of Manila under its land-for-the-landless program. Catalina Jacob then constructed a house on the lot.
2. **Special Power of Attorney (SPA):** On October 3, 1977, Catalina Jacob executed a SPA in favor of Eduardo B. Español authorizing him to undertake all necessary actions to finalize her claim to the lot.
3. **Revocation of SPA and New SPA:** On April 16, 1984, Catalina Jacob revoked this SPA and executed a new one in favor of Tito Lagazo.
4. **Deed of Donation:** On January 30, 1985, Catalina Jacob executed a Deed of Donation in Canada, gifting Lot 8W to Tito Lagazo.
5. **Payment of Outstanding Dues:** After learning that the property had unpaid taxes and arrears, Tito Lagazo paid the dues to avoid delinquency listing and declared the property under Catalina’s name.
6. **Demand to Vacate:** On January 29, 1986, Lagazo sent a demand letter to Alfredo Cabanlit (respondent) asking him to vacate the premises. Cabanlit refused, asserting ownership based on earlier transactions.
7. **Cabanlit’s Claim:** Cabanlit claimed ownership through several transactions:
– **Deed of Sale** for the house between Catalina Jacob and Eduardo Español dated October 7, 1977.
– **Deed of Assignment** of the lot from Catalina Jacob to Eduardo Español dated September 30, 1980.
– **Deed of Assignment** from Eduardo Español to Alfredo Cabanlit dated October 2, 1982.

### Procedural Posture:
1. **Filing of Civil Case:** Tito Lagazo filed a civil case on January 22, 1987, seeking recovery of the land and payment of damages.
2. **Regional Trial Court (RTC):** The RTC ruled in favor of Tito Lagazo, ordering Alfredo Cabanlit to surrender the property and pay attorney’s fees.
3. **Court of Appeals:** The appellate court reversed the RTC decision, holding that Tito Lagazo failed to formally accept the donation per legal requirements, thus rendering the donation void.
4. **Petition for Review:** Tito Lagazo filed a petition for review under Rule 45, contesting the Court of Appeals decision.

### Issues:
1. **Main Issue:** Is the donation from Catalina Jacob to Tito Lagazo simple or onerous, and was it properly accepted as required by law?
2. **Secondary Issues:**
– Did the Court of Appeals err in concluding that Tito Lagazo failed to prove his rightful ownership?
– Should the new developments, such as the city’s recognition of Tito Lagazo’s claim, affect the court’s decision?

### Court’s Decision:

**Issue 1: Nature of the Donation – Simple or Onerous**

– **Court’s Analysis:** The donation was simple, motivated by pure liberality as stated in the deed. The payments made by Tito Lagazo to clear arrears were voluntary and not conditions imposed by the donor.
– **Legal Requirement for Acceptance:** As per the Civil Code, a donation of real property requires formal acceptance noted in the same or a separate public instrument which must be communicated to the donor authentically.
– **Outcome:** Tito Lagazo failed to provide evidence of formal acceptance during the trial. The court found that mere eventual affidavit submissions fell short and did not satisfy the legal formality requirements.

**Issue 2: Supervening Events**

– **Court’s Analysis:** Although the city of Manila had granted the transfer and issued a title in Tito Lagazo’s name, the court found the basis of such actions flawed as they stemmed from an invalid deed of donation.
– **Conclusion:** Administrative decisions by the city, based on invalid premises, do not bind judicial determination on property ownership.

**Issue 3: Ownership Claims by Alfredo Cabanlit**

– **Court’s Stance:** The court noted procedural deficiencies and lack of critical parties (assignors of the deeds) which barred a full examination of Cabanlit’s claims. Thus, no definitive ruling on Cabanlit’s ownership was made. Released to status quo ante, with potential for new litigation if required.

### Doctrine:
The court emphasized the importance of adherence to formal legal requirements for the acceptance of donations of immovable property. Absence of such formalities renders donations null and void regardless of subsequent claims and payments.

### Class Notes:
– **Key Elements for Donation of Immovables:**
– Donation must be made in a public instrument.
– Acceptance must also be in public form and communicated to the donor.
– Formal notice of acceptance noted in both the deed of donation and the acceptance instrument.

– **Relevant Statutory Provisions:**
– **Art. 734, 746, and 749 of the Civil Code:** Rules governing the perfection and validity of donations, including the necessity for formal acceptance.
– **Art. 733 and 1320 of the Civil Code:** Differentiate between simple and onerous donations, and the formal requirements for validity.

### Historical Background:
The nation’s policies regarding urban land distribution, such as the “land-for-the-landless” program, contextually influenced this case. The intervention by local governments to manage public land awards aimed to address socio-economic inequalities but entailed strict legal adherence to ownership transfer processes. This case underscores the intersection of administrative actions and judicial oversight in property rights.


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