Republic of the Philippines
SUPREME COURT
ManilaFIRST DIVISION
G.R. No. L-29746 November 26, 1973INTESTATE ESTATE O T!E LATE EMILIO CAMON. CONCEPCION ERE"ETA,
administratrix-appellee !s"
IGNATIUS !ENR# $E%ORE, EL&OO' (NIC(ER$OC(ER, )*+ MAR# IRENE ALLON MCCORMIC(,
claimants-appellants#
MARTINIANO O. 'E LA CRU%,
administrator"
Manuel T. Tonogbanua, Manuel S. Tonogbanua, Jr. and Hilado and Hilado for administratrix-appellee.Martiniano O. de la Cruz for Claimants-appellants.
CASTRO,
J.:
This is a direct appeal from the order of the $ourt of First Instance of Ne%ros Occidental dated &ul' () *+, .hich denied a claim of the appellants I%natius /enr' 0e1ore 2l.ood 3nic4erboc4er and Mar' Irene Fallon Mc$ormic4 filed a%ainst the estate of the late 2milio $amon in Special Proceedin%5,, of the said court"2milio $amon .as the lessee of the
hacienda
Rosario located in Ponte!edra Ne%ros Occidental for the period from crop 'ear *+6)-6* to crop 'ear *+,)-,*" One-half 7*8(9 pro-indi!iso of the said su%ar plantation belon%ed to the abo!e-named claimants-appellants 7as their inheritance from the late Thomas Fallon9 .hile the other half belon%ed to Petronila :lunan !da" de Sta" Romana
:mparo Sta" Romana and :lberta !da" de /opon 7as their inheritance from their mother Rosario Sta" Romana9"
;pon the death of 2milio $amon in *+,< his .ido. $oncepcion 2re=eta filed a petition in the court
a uo
7doc4eted as Special Proceedin% 5,,9 pra'in% for the %rant to her of letters of administration of the estate of the deceased $amon" The petition .as %ranted" Thereafter the court issued an order re>uirin% all persons .ith mone' claims a%ainst the estate to file their claims .ithin the period prescribed in the order" The claimants-appellants 0e1ore et al" thru their ?udicial administrator and counsel Martiniano O" de la $ru1 filed a claim a%ainst the estate in the amounts of P,(),@ as the mone' !alue of su%ar allotments and allo.ances and P(*)) as the mone' !alue of pala' and rentals or a total of P,6*,@ appertainin% to the claimantsA half-share in the
hacienda
"The appellants and the administratrix-appellee are a%reed that the late 2milio $amon appropriated for himself the amounts claimed" The appellants had demanded pa'ment of their claim from 2milio $amon .hen he .as still ali!e but the latter i%nored the demands" :t the trial three documents the authenticit' of each of .hich is not contro!erted b' the appellants .ere submitted in e!idence b' the administratrix-appellee" These areB7*9 :n C:%reement to SellC 7exhibit C*C9 executed on &anuar' ** *+,* .hereb' the claimants 0e1ore et al" a%reed to sell their one-half 7*8(9 share in the
hacienda
Rosario to :mparo Sta" Romana and :lberta !da" de /opon#7(9 : CRelease and ai!er of $laimsC 7exhibit C5C9 executed on &anuar' *( *+,* .hereb' :mparo Sta" Romana and :lberta !da" de /opon for and in consideration of Ctheir %ratitude for the !arious ser!ices financial and personalC extended to them b' 2milio $amon released him from Can' and all claims that ma' ha!e accrued pertainin% to the t.o-fourth 7(869
pro-indi!iso
share in /acienda RosarioC o.ned b' the appellants .ho had bound themsel!es Cto sell their share in the said /acienda RosarioC to :mparo and :lberta Cincludin% ri%hts accrued or accruin%C and .hereb'
:mparo and :lberta bound themsel!es Cto .ai!e in fa!or of Mr" 2milio $amon for his o.n use and benefit said ri%hts accrued or accruin%"C759 : CDeed of SaleC 7exhibit C(C9 executed on :u%ust 6 *+,* .hereb' the claimants 0e1ore et al" for and in consideration of the sum of P<))) to be paid in the manner stated in the instrument sold transferred and con!e'ed Call their ri%hts title interest and participation .hether accrued or accruin% in their t.o-fourth 7(869
pro-indi!iso
shareC in the
hacienda
Rosario Cto%ether .ith all the impro!ements no. existin% thereon includin% its su%ar >uotaC in fa!or of :mparo Sta" Romana and :lberta !da" de /opon"The lo.er court re?ected the appellantsA contention that the su%ar allotments and allo.ances sub?ectof their claim a%ainst the estate of 2milio $amon .ere not included in the sale and held that b' the positi!e and cate%orical terms of the deed of sale all benefits accrued and accruin% to the appellantsbefore of :u%ust 6 *+,* .ere included in the sale" The court then dismissed the claim per its order dated &ul' () *+,"T.o issues are here tendered for resolution to .itB 7*9 .hether the phrase Caccrued or accruin%C 7in the deed of sale9 ha!in% reference to the claimantsA ri%hts title interest and participation in the plantation should be interpreted to exclude the su%ar allotments and allo.ances adherent to the
hacienda
# and 7(9 .hether not.ithstandin% the absence of a .ritten contract of lease for the crop 'ears *+@(-@5 to *+,)-,* 2milio $amonAs continued culti!ation of the
hacienda
created an express trust in fa!or of the claimants"The premises upon .hich the appellants .ould conclude that the allotments and allo.ances .ere not included in the sale areB that on &anuar' *( *+,* there .as then no sale and therefore b' the CRelease and ai!er of $laimsC :mparo Sta" Romana and :lberta !da" de /opon released and .ai!ed nothin% in fa!or of 2milio $amon# that the .ai!er .as made in ad!ance .hich is contrar' to public polic'# that 2milio $amon .as not the !endee in the sale# that the !endees represented to Martiniano O" de la $ru1 that the su%ar >uedans and pala' claimed .ere not included in the sale and that such .as the intention of the parties# that the .ords Caccrued and accruin%C in the deeds are obscure and since the deeds .ere prepared b' Ramon S" 2re=eta .ho is a brother of the administratix $oncepcion 2re=eta .ho in turn is the .ido. of 2milio $amon the obscure .ords should not fa!or the part' .hich caused the obscurit'# that the consideration in the sale .hich is e>ui!alent to P*5)) per hectare is Ccheap#C and that $amonAs silence re%ardin% the demands madeupon him to pa' the claim .as an admission of his debt"The claimants-appellantsA !ie. that at the time of the execution on &anuar' *( *+,* of the deed of CRelease and ai!er of $laimsC :mparo Sta" Romana and :lberta !da" de /opon could not release or .ai!e accrued claims belon%in% the claimants is correct because the ri%ht that :mparo and :lberta then had .as a mere promise b' the claimants to sell their share in the
hacienda
not the ri%ht to the accrued claims" hat .as a%reed to be sold in the future .as different from .hat .as purportedl' .ai!ed# and e!en if the ob?ect in both contracts .ere the same the .ai!er .ould still be in!alid for it is essential that a ri%ht in order that it ma' be !alidl' .ai!ed must be in existence at thetime of the .ai!er"
1
Nonetheless .hate!er defect there .as in the .ai!er .as subse>uentl' cured b' the deed of sale of :u%ust 6 *+,* b' !irtue of .hich the appellants sold not onl' their
pro-indi!iso
half-share in the
hacienda
but also their accrued ri%hts therein" It is immaterial that 2milio $amon .as not the !endee since .hat mattered is that the appellants parted .ith their accrued ri%hts for a !aluable consideration" That the !endees represented to Martiniano O" de la $ru1 that the su%ar >uedans and pala' .ere not included in the sale and that such .as the intention of the parties in!ol!es a >uestion of fact .hich is not re!ie.able in a direct appeal to the Supreme $ourt"
2
The .ords Caccrued or accruin%C thedeed of sale are not obscure and as the lo.er court declared are in fact positi!e and cate%orical enou%h to include accrued allotments and allo.ances" Since the said .ords are not ambi%uous there is no need to interpret them"
:rt" *5<)" If the terms of a contract are clear and lea!e no doubt upon the intention of the contractin% parties the literal meanin% of its stipulations shall control" """ 7$i!il $ode9That the consideration in the sale .as CcheapC is not a %round for the infirmit' of the sale" Inade>uac' of cause in a contract does not of itself in!alidate the contract"
3
The appellantsA stand thatthe silence of $amon .ith respect to the se!eral demand letters sent to him .as an admission of his debtis .ithout support or sanction in our la. of e!idence"
Nor .as there a chan%e in the ?uridical relationship bet.een the
hacienda
o.ners and 2milio $amon.hen after the expiration of their .ritten contract of lease he continued culti!atin% the
hacienda
durin% the crop 'ears *+@(-@5 to *+,)-,*" The continuance in the culti!ation .ith the ac>uiescence of the o.ners did not con!ert the ori%inal relationship into an express trust as contended b' appellants but merel' implied a ne. lease o!er the propert' .ith the same terms andconditions pro!ided in the ori%inal contract except as to the period of the lease" :rt" *,<)" If at the end of the contract the lessee should continue en?o'in% the thin% leased for fifteen da's .ith the ac>uiescence of the lessor and unless a notice to thecontrar' b' either part' has pre!iousl' been %i!en it is understood that there is an implied ne. lease not for the period of the ori%inal contract but for the time established in articles *,( and *,<" The other terms of the ori%inal contract shall be re!i!ed" 7$i!il $ode9There is nothin% in the record that e!idence the creation of a fiduciar' relationship bet.een the lessors and the lessee after the expiration of their .ritten contract of lease .hich fiduciar' relationship is an essential characteristic of trust
4
and no .ritten instrument has been pointed to as establishin% an express trust .hich .ritin% is re>uired in express trusts o!er immo!ables"
There is therefore no basis for the appellantsA claim that an express trust .as created .hen $amon continued to culti!ate the land after the expiration of the .ritten contract of lease"
:$$ORDINEG the order
a uo
of &ul' () *+,, is affirmed at claimants-appellantsA cost"
Ma"alintal, C.J., Teehan"ee, Ma"asiar, #sguerra and Mu$oz %alma, JJ., concur.
oo*oe/
H This famil' name is !ariousl' spelled in the record as CSta" RomanaC and CSantaromana"C* @, :m" &ur" **6# * Tolentino (-(+"( Mi%uel !" $atalino -(5)<( No!" (+ *+, (, S$R: (56# Victorino !" ao -(@(<5 Ma' ( *+<) 55 S$R: @6"5 :rticle *5@@ $i!il $ode# :s4a' !" $osalan 6, Phil" *<+"6 Scott on Trusts Vol" * p" 55 cited in IV Tolentino ,)"@ :rt" *665 $i!il code"