Rule 74
Rule 74
RULE 74
SUMMARY
SETTLEMENT OF
ESTATES
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2. No creditor made his application. The necessary conclusion is that the appointment of
commissioners to hear the claim above referred to was beyond the powers of the court and was
without jurisdiction. The finding of the commissioners had no force or effect. It gave no right against
the estate and none against the so-called administrator. This section creates a statute of limitations
which deprives all debts which are not discovered within the prescribed time of the power of
requiring an administration of the estate.
The partition proceedings are proceedings out of court. Consequently there is no prescribed method of
ascertaining and settling claims. The appointment of commissioners, the publication of notice to creditors,
and all the other proceedings necessary in cases of administration in court are not required in partition out of
court
It was not the intention of the law to pronounce the partition void of no effect simply because not all of the
debts were paid before the partition was made. The fact of non payment cannot, then, because by the
creditor as a reason for attacking the partition directly by asserting that, inasmuch as a payment of all the
debts is a condition precedent to the right of partition, such partition cannot legally and va lidly take place
while a debt is outstanding. The mere fact, therefore, that a creditor was not paid before the partition took
place furnishes no ground for a revocation of the partition. It simply provides a fact which he may urge as a
reason for the appointment of an administrator and the consequent administration of so much of
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FACTS: Franciso Calzado died on the 9th or 10th of December, 1903. The plaintiff alleges that he
was appointed as administrator of the estate of the said Francisco Calzado. Although that fact is
not denied, the record fails to show when he was appointed. At the time of Calzado's death, he was
the owner of certain property, some of which was described in the complaint.
Nearly six years after the death of the said Calzado, the plaintiff, as administrator, commenced the
present action to recover the property described in the complaint. The defendant demurred to the
complaint, alleging that the plaintiff was not the proper party to bring the action; and that at the time
of the death of Calzado, the latter had no relatives, descendants or ascendants, but he had
nephews, who being of lawful age, divided among themselves the property in question and sold the
same to the defendant; Defendant also alleged that the plaintiff is not a creditor of the estate of the
said deceased.
ISSUE: Whether or not Ilustre can intervene in the recovery of the properties of the deceased?
HELD: No. Under the provisions of the Civil Code (Arts. 657 to 661), the rights to the succession of
a person are transmitted from the moment of his death; in other words, the heirs succeeded
immediately to all of the property of the deceased ancestor. The property belongs to the heirs at
the moment of the death of the ancestor as completely as if the ancestor had executed and
delivered to them a deed for the same before his death. In the absence of debts existing against
the estate, the heirs may enter upon the administration of the said property immediately. When
there are no debts existing against the estate, there is certainly no occasion for the intervention of
an administrator in the settlement and partition of the estate among the heirs. When the heirs are
all of lawful age and there are no debts, there is no reason why the estate should be burdened with
the costs and expenses of an administrator. The property belonging absolutely to the heirs, in the
absence of existing debts against the estate, the administrator has no right to intervene in any way
whatever in the division of the estate among the heirs.
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FACTS: Cresencia Hernandez, the plaintiff; and intervenors, Maria and Aquilina Hernandez; and
Pedro and Basilia Hernandez who are not parties here, are siblings. When their father died, they
acquired in common by descent from their father a parcel of land known as lot No. 120073 of the
Batangas cadastral survey. The intervenors sold 1800 square meters of this parcel of land to Andal
and his wife for P860. This portion purports to be the combined shares of the intervenors in the
larger parcel, allotted to them in a verbal partition alleged to have been made among the five
brother and sisters. Cresencia was willing to repurchase the share of her sister for P860.
According to Cresencias counsel, the best evidence to show the partition must be the document of
partition. Counsel for the defendant and intervenors on the other hand averred that parol partition
made among the five brother and sisters is valid as he can produce witnesses to testify. Counsel
for the plaintiff again objected asserting that "under the Rules of Court agreement affecting real
estate may not be proved except by means of writing subscribed by the person against whom the
proof is offered. Upon this objection, the court ruled that under Rules 74 and 123 of the Rules of
Court (Statute of Frauds) as well as under article 1248 of the Civil Code, parol evidence of partition
was inadmissible,.The court then decided that the resale of the land by Andal in favor of Maria
and Aquilina Hernandez was illegal and attended by bad faith.
ISSUE: Whether or not oral evidence for proving a contract of partition among the heirs is
admissible?
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Section 596 of Act No. 190, which is the precursor of section 1 Rule 74, is enlightening and
instructive. The former after stating that heirs may apportion and divide the estate among
themselves as they may see fit by agreement duly executed in writing by all of them, adds the
words "and not otherwise." The Court found these to be expressive of an intention to make the
written formality inherent element of the validity of a parol partition. But what is far more to the point
is that by logical process of deduction the elimination from the new rule of the words "and not
otherwise" imports the casting away from the prescribed public document of its jural character
which the document enjoyed in the former code
The Court said that requirement that a partition be put in a public document and registered has for
its purpose the protection of creditors and at the same time the protection of the heirs themselves
against tardy claims. Note that the last sentence of the section speaks of debts and creditors. The
object of registration is to serve as constructive notice, and this means notice to others.
If a completed oral partition may be enforced, as the defendant and the intervenors contend and as
we opine, their evidence should be allowed, and if allowed and it establishes their allegation, the
plaintiff's cause of action vanishes.
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FACTS: Jacinto Pada died intestate. His estate included a parcel of land of residential and coconut
land located in Leyte with an area of more than 1,300 square meters.
During the lifetime of Jacinto, his half-brother, Feliciano, obtained permission from him to build a
house on the northern portion of the lot. When Feliciano died, his son, Pastor, continued living in
the house together with his eight children. Petitioner Verona Pada-Kilario, one of Pastor's children,
has been living in that house since 1960.
In May 1951, the heirs of Jacinto entered into an extra-judicial partition of his estate. They
executed a private document which they, however, never registered in the Office of the Registrar of
Deeds of Leyte. Juanita Pada sold to Engr. Ernesto Paderes, the right of his father, Ananias, a son
of Jacinto, as co-owner of the lot. Thereafter, it was the turn of Maria to sell the co-ownership right
of his father, Marciano, one of Jacintos children. Private respondent, who is the first cousin of
Maria, was the buyer. Thereafter, private respondent demanded that petitioner spouses vacate the
northern portion of the lost so his family can utilize the said area. In 1995, private respondent filed
a complaint for ejectment against petitioner spouses. Thereafter, the heirs of Amador Pada
executed a Deed of Donation transferring to petitioner Verona Pada-Kilario, their respective shares
as co-owners petitioner spouses filed their Answer averring that the northern portion of the lot had
already been donated to them by the heirs of Amador Pada. They contended that the extra-judicial
partition of the estate of Jacinto Pada executed in 1951 was invalid and ineffectual since no special
power of attorney was executed by either Marciano, Amador or Higino in favor of their respective
children who represented them in the extra-judicial partition. Moreover, it was effectuated only
through a private document that was never registered in the office of the Registrar of Deeds of
Leyte.
ISSUE: Whether or not the extrajudicial partition executed in a private document is valid?
HELD: Yes, the extrajudicial partition of the estate of Jacinto Pada among his heirs made in 1951
is valid, albeit executed in an unregistered private document. No law requires partition among heirs
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The extrajudicial partition which the heirs of Jacinto Pada executed voluntarily and spontaneously
in 1951 has produced a legal status. When they discussed and agreed on the division of the estate
of Jacinto Pada, it is presumed that they did so in furtherance of their mutual interests. As such,
their division is conclusive, unless and until it is shown that there were debts existing against the
estate which had not been paid.
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FACTS: Francisco de Borja was appointed executor and administrator of the estate of his wife:
their son, Jose de Borja, was appointed co-administrator. When Francisco died, Jose became the
sole administrator of the testate estate of his mother, Josefa Tangco. While a widower Francisco de
Borja allegedly took unto himself a second wife, Tasiana Ongsingco. Upon Francisco's death,
Tasiana instituted testate proceedings where she was appointed special administratrix. The testate
estate of Josefa Tangco alone has been unsettled for more than a quarter of a century. In order to
put an end to all these litigations, a compromise agreement was entered into. The same provides
that it is the mutual desire of all the parties to terminate all the controversies between and among
them. And that they agree to sell the Poblacion portion of the Jalajala properties with a segregated
area of approximately 1, 300 hectares.
Tasiana Ongsingco Vda. de Borja opposed the compromise agreement in both Rizal and Nueva
Ecija courts. Rizal Court approved the agreement but Nueva disapproved it. Tasiana refutes the
validity of the agreement claiming that the heirs cannot enter into such kind of agreement without
first probating the will of Francisco de Borja; (2) that the same involves a compromise on the
validity of the marriage between Francisco de Borja and Tasiana Ongsingco. It is argued further by
Tasiana Ongsingco that while the agreement expressed no definite period for its performance, the
same was intended to have a resolutory period of 60 days for its effectiveness. In support of such
contention, it is averred that such a limit was expressly stipulated in an agreement in similar terms
entered into by said Ongsingco with the brothers and sister of Jose de Borja.
ISSUE: Whether or not the compromise agreement is valid?
HELD: Yes. There was here no attempt to settle or distribute the estate of Francisco de Borja
among the heirs thereto before the probate of his will. The clear object of the contract was merely
the conveyance by Tasiana Ongsingco of any and all her individual share and interest, actual or
eventual in the estate of Francisco de Borja and Josefa Tangco. And as a hereditary share in a
decedent's estate is transmitted or vested immediately from the moment of the death of
such causante or predecessor in interest (Civil Code of the Philippines, Art. 777) 3 there is no legal
bar to a successor (with requisite contracting capacity) disposing of her or his hereditary share
immediately after such death, even if the actual extent of such share is not determined until the
subsequent liquidation of the estate. It is likewise worthy of note in this connection that as the
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FACTS: Victorino Guevara executed a will distributing assorted movables and a residential lot
among his children, Rosario and Ernesto Guevara, and his stepchildren. Victorino also executed a
deed of sale in favor of Ernesto Guevara, conveying to the latter the southern half of the 259hectare lot and expressly recognized Ernesto Guevara as owner of the northern half. Because of
this sale, the entire lot was subsequently issued in the name of Ernesto Guevara. The said will was
not filed for probate. About four years later, Rosario Guevara claimed that she was preterited and
was asking for at least 420,000 square meters of the lot in Ernesto's name.
The Court of Appeals decided in Rosario Guevaras favor; the SC reversed the decision in so far as
it awarded relief to Rosario Guevara and the parties were thereafter ordered to present the will to
the proper court for probate without prejudice to such action as the provincial fiscal of Pangasinan
may take against the responsible party or parties under section 4 of Rule 76. Claiming to act
pursuant to the foregoing decision, Rosario Guevara commenced on October 5, 1945 in the Court
of First Instance of Pangasinan for the probate of the will of Victorino Guevara.
Ernesto Guevara, through counsel, filed a motion to dismiss the petition on the grounds that (a) the
petition itself alleged that the will was revoked; (b) that whatever right to probate the parties may
have has already prescribed; and (c) that the purpose of the probate was solely to have Rosario
declared an acknowledged natural child of the deceased.
The petition was dismissed on the ground that Rosario Guevaras petition did not ask for the
probate of the will, contrary to the order of the Supreme Court; and that her right to petition for the
probate of the testament of Victorino L. Guevara had prescribed; and that her action for judicial
declaration of acknowledgment had likewise prescribed as the testator died on September 27,
1933, and that the petition for probate of said will was filed twelve (12) years later.
ISSUE: Whether or not the petition for probate is barred by the statute of limitations?
HELD: No. The provision of Article 756 of the old Civil Code (1042 of the New) and of Rule 76 of
the Rules of Court, reiterating those of the old Code of Civil Procedure (Act 190), point out that the
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FACTS: On October 13, 1962, Saturnina M. Vda. de Lopez, judicial administratrix of the estate of
the deceased filed with the lower court a project of partition adjudicating the whole to herself and
her legitimate children with the deceased. The lower court approved the project of partition and
declared the intestate proceeding "terminated and closed for all legal purposes."
Seventeen days thereafter, the minors Dahlia and Roy, both surnamed Lopez, represented by their
mother, Lolita B. Bachar, filed a motion to reopen the proceeding, together with a petition claiming
that they were illegitimate children of, the deceased Emilio Lopez, born out of his extra-marital
relations with Lolita B. Bachar, and asking that their rights as such be recognized and their shares
in the estate given to them.
The motion was opposed by the judicial administratrix on the ground that the proceeding had
already been ordered terminated and closed and the estate was already in the hands of the
distributees; and that the reopening of the intestate proceeding was not the proper remedy, which
should be an independent action against the individual distributees. The trial court denied the move
to reopen. The movants asked for reconsideration, which was denied, and thereupon appealed
directly to the Supreme Court.
ISSUES: 1. Whether or not the motion to reopen the estate proceeding was filed out of time?
2. Whether or not the motion to prove the status of the children should have been exhausted in
a separate proceeding
HELD: 1. No. The appellants are legal heirs of the deceased and hence entitled to share in his
estate. Having been omitted in the partition presented by the judicial administratrix and
approved by the Court, they were not bound thereby. In a case, the Court held that a judicial
partition in probate proceedings (and the same thing can be said of partition in intestate
proceedings) does not bind the heirs who were not parties thereto. A judicial partition in probate
proceedings is not final and conclusive, and not being of such definitive character to stop all means
of redress for a co-heir who has been deprived of his lawful share, such co-heir may still, within the
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The court's order declaring the intestate proceeding closed did not become final immediately upon
its issuance. It was no different from judgments or orders in ordinary actions. Thus, Section 2 of
Rule 72 provides that "in the absence of special provisions, the rules provided for in ordinary
actions shall be, as far as practicable, applicable in Special Proceedings." And judgments or orders
in ordinary actions become final after thirty (30) days from notice to the party concerned. In this
case appellants' motion to reopen was led only seventeen (17) days from the date of the order of
closure. The remedy was therefore invoked on time.
2. Taking up the question of jurisdiction of the court to entertain the appellants' motion (to annul the
deed of partition and the order approving it), it must be remembered that in Benedicto vs. Javellana
this Court held that an demands and claims filed by any heir, legatee or party in interest to a testate
or intestate succession, shall be acted upon and decided in the same special proceedings, and not
in a separate action, and the judge who has jurisdiction over the administration of the inheritance,
and who, when the time comes, will be called upon to divide and adjudicate it to the interested
parties, shall take cognizance of all such questions.
In the recent case of Uriarte vs. Uriarte, et al., the Court pointed out that there are two alternatives
for an acknowledged natural child to prove his status and interest in the estate of the deceased
parent, to wit: (1) to intervene in the probate proceeding if it is still open; and (2) to ask for its
reopening if it has already been closed.
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FACTS: Eustaquio Tomias died intestate in 1920, leaving 7 children named Leon, Benita, Monica,
Bernabela, Toribia (alleged to known also as Enrica), Agustina, and Josefa, all surnamed Tomias.
Two of these, however later died, Leon in 1931 and Josefa in 1944. It is claimed that the latter was
survived by a daughter named Josefa or Filomena Tomias. Leon, who had married twice, was
survived by 4 children Conrado Magdalena, Dolores, and Anicetas the first two, by the first
marriage, and the other two by the second marriage. It is claimed, however, that he has also had
natural son named Filemon Tomias.
On January 19, 1948, Conrado Tomias and Magdalena Tomias (two of the children of the deceased
Leon Tomias), in conjunction with their cousin Josefa or Filomena Tomias (only daughter of the
deceased Josefa or Filomena Tomias (only daughter of the deceased Josefa Tomias), filed a
complaint(registered as civil case No. 857 of the Court of First Instance of Occidental Negros)
against their aunts Benita, Monica, Bernabela, Enrica, and Agustina, alleging that their deceased
grandfather Eustaquio Tomias was the absolute owner of the 15 parcels of land (in Occidental
Negros) of the total assessed value of P8,290 and that since the death of Leon Tomias the
defendants had continued in possession of said land and had been refusing to divide it among the
heirs and to give plaintiffs their share of the products. Plaintiffs, therefore, prayed for partition and
accounting. For refusing to join as plaintiffs, Dolores Tomias and Anicetas Tomias (the other two
legitimate children of Leon Tomias) were included as defendants. Through their counsel Atty. Jose
M. Millares, the defendants appeared and filed their answer; but as this was merely a general
denial, the plaintiffs moved for a judgment on the pleadings.
The Court held that the petitioners and defendants owned the 15 parcels of land in common. Some
5 months thereafter the defendants, together with Filemon Tomias, an alleged natural son Leon
Tomias, sought to annul it by filing an action for that purpose on the ground (1) that the court did
not have jurisdiction over the case because some of the parcels of land partitioned among the heirs
did not belong to the deceased Eustaquio Tomias but to other persons not made parties to the suit,
and (2) that not all of the heirs were represented in the suit because Filemon Tomias, an alleged
natural child of Leon Tomias, had not been made a party therein.
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HELD: No. The judgment in the partition case may not be voided on the mere allegation that some
of the parcels of land partitioned were the property of persons not made parties to the suit when
none of those persons has come to the court to protest. There is no showing that Toribia Tomias
has been prejudiced by the adjudication of one-seventh of the inheritance to Enrica Tomias, the
court having found that Toribia and Enrica are one and the same person. There is no claim that
Toribia is entitled to more. The claim of Filemon Tomias for a share in the inheritance as an alleged
natural son of Leon Tomias does not call for the annulment of the decision in the partition case.
That claim should be asserted in separate action against the four legitimate children of Leon
Tomias to whom the latter's share in the inheritance was adjudicated in the partition.
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FACTS:
Spouses Rafael Marquez, Sr. and Felicidad Marquez had twelve children. In 1982, Rafael Marque,
Sr. executed an "Affidavit of Adjudication" vesting unto himself sole ownership to the propertya
parcel of land wherein they constructed their conjugal home. Thereafter, Rafael Marquez, Sr.
executed a "Deed of Donation Inter Vivos" covering the land as well as the house constructed
thereon to three of his children to the exclusion of his other children, petitioners herein.
The excluded children filed a complaint in 1991 for "Reconveyance and Partition with Damages"
before the trial court alleging that both the "Affidavit of Adjudication" and "Deed of Donation Inter
Vivos" were fraudulent since the private respondents took advantage of the advanced age of their
father in making him execute the said documents.
Private respondents argued that petitioner's action was already barred by the statute of limitations
since the same should have been filed within four years from the date of discovery of the alleged
fraud. The RTC ruled in favor of the petitioners and held that prescription cannot set in because an
action to set aside a document which is void ab initio does not prescribe. The CA reversed the
RTCs decision and held that the action prescribed four years after the discovery of the fraud. The
petitioners MR having been denied, they now come to the Supreme Court.
ISSUE: Whether the action for reconveyance of the other children had prescribed
HELD:
No. Petitioners asserted that a constructive trust was created and maintained thus that an action
for reconveyance based on implied or constructive trust prescribes in ten (10) years.
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A constructive trust was created under Article 1456 when Rafael Marquez Sr. misrepresented in his
unilateral affidavit that he was the only heir of his wife when in fact their children were still alive. In
this regard, it is settled that an action for reconveyance based on an implied or constructive trust
prescribes in ten years from the issuance of the Torrens title over the property. For the purpose of
this case, the prescriptive period shall start to run when TCT No. 33350 was issued, which was on
June 16, 1982. Thus, considering that the action for reconveyance was filed on May 31, 1991, or
approximately nine years later, it is evident that prescription had not yet barred the action.
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ISSUES: 1. Whether or not the complaint for annulment of the Deed of Extrajudicial Settlement and
Partition had already prescribed?
2. Whether or not said deed is valid?
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FACTS: The Philippine International Life Insurance Company, Inc. was incorporated on July 6,
1956 by Dr. Juvencio P. Ortaez who owned ninety percent (90%) of the subscribed capital stock.
On July 21, 1980, Dr. Ortaez died. He left behind a wife (Juliana Salgado Ortaez), three
legitimate children (Rafael, Jose and Antonio Ortaez) and five illegitimate children by Ligaya
Novicio (herein private respondent Ma. Divina Ortaez-Enderes and her siblings Jose, Romeo,
Enrico Manuel and Cesar, all surnamed Ortaez). Rafael Ortaez filed before the Court of First
Instance of Rizal a petition for letters of administration of the intestate estate of Dr. Ortaez. Ma.
Divina Ortaez-Enderes and her siblings filed an opposition to the petition for letters of
administration prayed that the intestate court appoint a special administrator.
On March 10, 1982, Judge Ernani Cruz Pao appointed Rafael and Jose Ortaez joint special
administrators of their fathers estate. Hearings continued for the appointment of a regular
administrator. Special administrators Rafael and Jose Ortaez submitted an inventory of the estate
of their father.
Decedents wife, Juliana, claiming that she owned 1,014 Philinterlife shares of stock as her
conjugal share in the estate, sold said shares with right to repurchase of Filipino Loan Assistance
Group (FLAG), represented by Jose C. Lee. Juliana Ortaez failed to repurchase the shares of
stock within the stipulated period, thus ownership thereof was consolidated by FLAG in its name.
Special Administrator Jose Ortaez, owned the remaining 1,011. Philinterlife shares of stocks, sold
said shares with right to repurchase also in favor of herein petitioner FLAG. Jose Ortaez failed to
repurchase the same.
It appears that several years. Juliana Ortaez and her two children, Special Administrators Rafael
and Jose Ortaez, entered into a memorandum of agreement dated March 4, 1982 for the
extrajudicial settlement of the estate of Dr. Juvencio Ortaez, partitioning the estate (including the
Philinterlife shares of stock) among themselves. This was the basis of the number of shares
separately sold by Juliana Ortaez on April 15, 1989 (1,014 shares) and by Jose Ortaez on
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ISSUE: Whether or not the appropriation of the property by the administrator without court order is
valid?
HELD: No. An act of the administrator of selling the property without court order is void and passes
no title to the purchaser. Further, any subsequent sale thereof to a 3rd party without court approval
is likewise invalid. It is clear that the heirs of the deceased invalidly entered into a memorandum of
agreement extrajudicially partitioning the intestate estate among themselves, despite their
knowledge that there were other heirs or claimants to the estate and before final settlement of the
estate by the intestate court. Since the appropriation of the estate properties by Juliana Ortaez
and her children as invalid, the subsequent sale thereof by Juliana and Jose to a third party
(FLAG), without court approval, was likewise void.
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FACTS: Southwest Agricultural Marketing Corporation (SAMCO) filed a Civil Case with the Court of
First Instance of Davao against respondents, Carlos and Matias, in their capacities as coadministrators of the estate of Amadeo Matute Olave, for the collection of an alleged indebtedness
in the amount of P19,952. and for attorney's fees.vAmadeo Matute Olave is the owner in fee simple
of a parcel of land containing an area of 293,578 square meters, situated in Sitio Tibambam, barrio
Tibambam, Municipality of Sigaboy province of Davao. Southwest Agricultural Marketing
Corporation (SAMCO) filed against Carlos V. Matute and Matias S. Matute in their capacities as coadministrators of the estate of Amadeo Matute Olave, for the collection of an alleged indebtedness
of P19, 952.11. Carlos V. Matute and Matias S. Matute, questioned the legality of the claim of
SAMCO. Court of First Instance of Manila issued an order directing the administrators to secure
the probate court's approval before entering into any transaction involving the seventeen (17) titles
of the estate. An amicable Settlement signed by the herein respondents was not submitted to and
approved by the then Court of First Instance of Manila, Branch IV, nor notice thereof made to the
beneficiaries and heirs in said special proceedings.
SAMCO contended that the Amicable Settlement need not be approved by the probate court, "the
same having been entered into in another independent action and in another court of co-equal
rank. Article 2032 of the Civil Code applies only to extrajudicial compromise entered into by the
administrators of the estate. In the alternative, lack of approval of the probate court of the Amicable
Settlement does not render it null and void, but at most voidable, which must be the subject matter
of a direct proceeding in the proper Court of First Instance."
ISSUE: Whether or not CFI of Davao can approve the amicable settlement?
HELD: No. The CFI of Manila has the exclusive jurisdiction over the estate of Amadeo Matute
Olave. It was a mistake on the part of respondent court to have given due course to Civil Case No.
4623, much less issue the questioned Order, dated November 10, 1967, approving the Amicable
Settlement. Section 1, Rule 73 of the Rules of Court, expressly provides that "the court first taking
cognizance of the settlement of the estate of a decedent, shall exercise jurisdiction to the exclusion
of all other courts. The law is clear that where the estate of the deceased person is already the
subject of a testate or intestate proceeding, the administrator cannot enter into any transaction
involving it without prior approval of the probate court.
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The probate court issued another order authorizing the Philippine Trust Company as administrator,
to sell the subdivision at the earliest possible time at the best obtainable price. The lessees of
Lucero, including the private respondent, defaulted in their payment of rentals. Separate actions for
ejectment were filed against them However, a compromise agreement was concluded and the
tenants resumed the payment of rentals.
Lucero accordingly awaited the sending by Legarda of the formal contract but as none came, went
to the Philippine Trust Company to make further payments, showing it the receipt evidencing the
down payment but the latter refused either to receive payment or to issue a formal contract
because the Legarda-Tambunting Subdivision was involved in litigation.
The deed of sale was executed by and between petitioner and Philippine Trust Company and the
same was approved by the probate court. Petitioner filed the complaint below for ejectment against
the private respondent Manotoc Reality Corp. On March 11, 1966, summons was served on the
latter. These circumstances, notwithstanding, on May 23, 1966, Lucero executed a deed of
assignment of the lot in question in favor of his lessees, including the private respondent.
ISSUE: whether or not court approval is needed in the case at bar?
HELD: Although the rules of court do not specifically state that the sale of an immovable property
belonging to an estate of the decedent, in a special proceeding should be made with the approval
of the court, this authority is necessarily included in its capacity as a probate court.
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Facts: Carlos Gil, Sr. died testate in Manila on November 28, 1943 instituting as his exclusive heir
his widow Isabel Herreros subject to the condition that should the latter die the estate, if any, would
be inherited by Carlos Gil, Jr., the decedent's adopted son. In due time, the decedent's will was
duly admitted to probate, the widow Isabel having been appointed as the administratrix of the
estate. Isabel and Carlos Jr secured a loan from Cancio a loan, and I payment thereof they agreed
to transfer two lots from the estate. However, Carlos and later Isabel died without transferring the
ownership of the two lots. Hence, Cancio filed a motion to execute the necessary deed of transfer.
But Dolores, Carlos Jr widow and the new co-administrator filed an opposition on the ground that
the late Isabel and Carlos entered into the agreement to sell the property without the authority of
the court.
Issue: Whether an heir can sell is interest to the estate still under administration.
Held: Yes, It is true that the agreement between Isabel H. Vda. de Gil, Sr. and Carlos Gil, Jr. on the
one hand, and Agustin Cancio, on the other, concerning the transfer of the two lots in question in
payment of the loan of P89,000.00 is conditioned upon the final adjudication of said properties to
both or either of them, and here such adjudication has not been made in view of the early death of
the two heirs; but this circumstance is now of no consequence considering that it is beyond dispute
that the properties left by the late Carlos Gil, Sr. were inherited, first, by Isabel and, later, by the
children of Carlos Gil, Jr. who inherited them through their father charged with the commitment in
favor of Cancio. As a matter of fact, Dolores C. Vda. de Gil, Jr., co-administratrix of the estate, is
now estopped from disputing the sale because she herself in her capacity as co-administratrix filed
the petition in court asking for the approval of the same sale which she now disputes for reasons
that do not appear in the record. And there is no doubt that an heir can sell whatever right, interest,
of participation he may have in the property under administration, a matter which comes under the
jurisdiction of the probate court.
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Facts: On January 13, 1919, in consideration of the amount of P1,000 received by the appellant,
Felisa Pagilinan, a document was executed by her giving the appellee, Eusebio A. Godoy, an
option to buy a dredge for the sum of P10,000. It appears from that document that the dredge is
the common property of the vendor and of the brothers Demetrio, Jose, Guillermo, Alfredo, and
Paz, all surnamed Orellano. According to their document agreement, Godoy must pay the entire
P10,000 within 20 days. However, the co-owners did not ratify the said sale. Before the lapse of the
20-day period, Godoy is ready to pay the entire amount but Felisa Pangilinan did not deliver the
said dredge. Godoy filed a case against the Orellanos and Pangilinan.
On the other hand, the Orellanos claimed that the dredge was the property of the intestate estate
of Julio Orellano and that Felisa Pangilinan is the administrator of said estate. They also alleged
that Godoy knows this fact. Furthermore, Jose, Alfredo and Guillermo are all minors and Paz is
married and did not obtained the consent of her husband when they executed the power of
attorney to Pangilinan.
Pangilinan, in her defense, claimed that she believed that it was her obligation to comply with the
deed in favor of Godoy and thus she applied to the probate court permission to sell the dredge for
P10,000. While she was asking the court for permission, the Orellanos opposed claiming that there
were higher bidders and thus the court ruled that the dredge be sold in public auction. The court
authorized Pangilinan to sell the said dredge in public auction. Pangilinan also claimed that she
never refused to deliver the dredge to Godoy rather the court would not give her authority to do so.
Issue: Whether or not Felisa Pangilinan has authority to sell the property?.
Held: No. The appellant was not, in her capacity as judicial administratrix of the intestate estate of
Julio Orellano, legally authorized to sell, or contract to sell, any property belonging to said estate
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In the sale of the property of an intestate estate for the benefit of the heirs, it is necessary to
comply with the provisions of sections 717, 718, and 722 of the Code of Civil Procedure. The said
sections prescribed the proceedings to be had before an administrator of an intestate or testate
estate may sell personal or real property and also the conditions under which the personal or real
property pertaining to an estate may be sold or disposed of by the administrator. Unless
compliance is had with the provisions of these sections, the sale of the aforesaid dredge by the
administratrix, or her promise to sell it is null and void.
Under the law, the court has exclusive jurisdiction to authorize the sale of properties like the one
under consideration and the power of attorney executed by the heirs of Orellano in favor of the
administratrix, without authority of court, has no legal effect, and this is the more so, since two of
the said heirs are under age, and the others did not ratify the option contract.
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