RENE MICHAEL FRENCH, Petitioner

vs.
COURT OF APPEALS, EIGHTEENTH DIVISION, CEBU CITY and MAGDALENA O'DELL,
represented by HECTOR P. TEODOSIO as her Attorney-in-fact, Respondents

DECISION

CARPIO, J.:

The Case

Petitioner assails the 30 January 2015 Decision1 and the 21 July 2015 Resolution2 of the Court of
Appeals Cebu City in CA-G.R. SP No. 07803. The Court of Appeals set aside the 12 October 2012
Decision3 of the Regional Trial Court (RTC) of P. D. Monfort North, Dumangas, Iloilo, Branch 68, and
reinstated the 27 January 2008 Judgment4 of the Municipal Trial Court in Cities (MTCC), City of
Passi, Province of Iloilo in Civil Case No. 437 for Ejectment.

The Antecedent Facts

Magdalena O'dell (Magdalena), an American citizen residing in Houston, Texas, United States of
America (U.S.A.), through her attorney-in-fact Thomas 0' dell (Thomas), filed a complaint for
ejectment against Rene Michael French5(Rene). Magdalena alleged that she is one of the owners of
a parcel of land, Lot No. 6895, covered by TCT No. T-19522 and located in the City of Passi. The lot
has an area of more or less 487,871 square meters. Magdalena alleged that sometime in the 1980s,
Henry French (Henry), Rene's father, sought her permission to cultivate a portion of the land without
paying any rental. According to Magdalena, she and Henry had an agreement that he would pay
some of her loans with the Philippine National Bank (PNB) and would vacate the land once she
needs it. However, Magdalena alleged that upon Henry's death in 1991, Rene took over possession
of the land without her permission. As such, Rene was occupying the land by mere tolerance of the
owner. Magdalena sent a letter, dated 10 January 2008, demanding Rene to vacate the land but he
failed to comply, prompting Magdalena to file a case against him.

Rene countered that his father Henry and French-Solinap Development Corporation (the
corporation) had been in possession and acted as owners of the land since 1985. Rene alleged that
sometime in 1980, Magdalena and Thomas obtained a loan from PNB and used the land as
collateral. Magdalena and Thomas, then living in the U.S.A., defaulted in their payment and asked
Henry to redeem the land. In turn, Henry redeemed the land through the corporation. Upon payment
of the obligation, PNB released the land from mortgage and turned over the original owner's copy of
TCT No. T-19522 to Henry. Rene alleged that upon his parents' death, he succeeded as the
administrator, owner, and President of the corporation. Rene alleged that Magdalena and Thomas
assigned, abandoned, and waived their rights and interests over the land in favor of Henry and his
successors-in- interest who had been in open, continuous, notorious, and public possession of the
land in the concept of an owner for 23 years. Rene further alleged that Henry and his successors-in-
interest had been paying the land's real property taxes from 1976 until 2007.

The Decisions of the Trial Courts

The MTCC ruled that Rene's occupation of the land was by mere tolerance of the owner. The MTCC
found that the special power of attorney to mortgage the property was executed while Magdalena
and Thomas were in the U.S.A. and was made as accommodation to their relatives, Wilson French
and Edward French. The MTCC also found that Henry, another relative, was allowed to cultivate the
land without rentals, on the condition that he would pay the loan of Magdalena and Thomas and the
real property taxes over the land.

Aside from bare allegations made by Rene, the MTCC did not find any written proof of the alleged
assignment of fights between Magdalena and Henry. The MTCC ruled that the payment of the loan
and the real property taxes was not inconsistent with the concept of tolerance of the owner and was
in fact in compliance with the conditions set by Magdalena and Thomas. The MTCC likewise did not
agree with Rene that there was an assignment of credit in favor of Henry due to lack of evidence to
support the claim. The MTCC noted that the alleged partial payment to PNB was made by the
corporation but it did not indicate to which loan it was applied. The MTCC also noted that the
evidence of additional payment presented by Rene was actually a document for transfer of funds. In
addition, the MTCC noted that the payment made by the National Power Corporation for easement
and tower occupancy over a portion of the land shows that Rene's capacity as a signatory to the
contract was as an administrator of the land.

The MTCC reiterated that lands registered under the Torrens System cannot be acquired by
prescription, and possession of the transfer certificate of title does not, in itself, vest title or
ownership. The MTCC held that material possession of the land cannot prevail over the superior
right of the registered owner.

The dispositive portion of the MTCC's decision reads:

WHEREFORE, in the light of the foregoing, judgment is hereby rendered in favor of the plaintiff and
against the defendants as follows:

1) Ordering the defendant RENE MICHAEL FRENCH and all persons claiming rights under him to
vacate Lot 6895 covered by TCT No. T-19522 and turn over the possession thereof to the plaintiff;

2) Ordering said defendant to pay annually the sum of TWO HUNDRED TEN THOUSAND PESOS
(₱210,000.00) starting January 10, 2008, until defendant vacates and turn[s] over the premises in
question to the plaintiff as reasonable compensation for the use and occupation of [L]ot 6895;

3) Ordering the said defendant to pay plaintiff the sum of Twenty Thousand Pesos (₱20,000.00) as
attorney's fees;

4) Ordering said defendant to pay the plaintiff the sum of FIVE THOUSAND PESOS (₱5,000.00) as
litigation expenses; and

5) The cost[s] of the suit.

The [counterclaim] is dismissed for lack of merit.

SO ORDERED.6

Rene filed an appeal before the RTC. In its 12 October 2012 Decision, the RTC set aside the
MTCC's decision.

The RTC sustained the MTCC's finding .that neither Rene nor his predecessor-in-interest was the
owner of the land. According to the RTC, Rene only presented evidence of payment of loan and
discharge of mortgage but not transfer of ownership. The RTC likewise sustained the MTCC in ruling
that Rene's occupation of the land was by mere tolerance of the owner.
However, the RTC sustained Rene that the MTCC had no jurisdiction over the action. The
dispositive portion of the RTC's decision reads:

WHEREFORE, premises considered, for lack of jurisdiction, the questioned decision subject of the
herein appeal is hereby set aside and the instant complaint is hereby dismissed.

No pronouncement as to cost.

SO DECIDED.7

Magdalena filed a petition for review before the Court of Appeals questioning the RTC's decision.

The Decision of the Court of Appeals

In the assailed decision, the Court of Appeals ruled in favor of Magdalena. The Court of Appeals
ruled that the allegations in the complaint comprise a cause of action for unlawful detainer and not
for forcible entry as claimed by Rene. The Court of Appeals ruled that all the requisites for an action
for unlawful detainer are present in the complaint.

The Court of Appeals ruled that Henry's occupation was authorized by Magdalena. Upon Henry's
death in 1991, Rene entered the property. The Court of Appeals noted that it was only in 2008, when
Magdalena wanted to use the land, that she demanded that Rene vacate the same. The Court of
Appeals further noted that both the MTCC and the RTC agreed that Rene's occupation of the land
was by mere tolerance. The Court of Appeals also noted that Rene did not even challenge the
jurisdiction of the MTCC to try the case.

The dispositive portion of the Court of Appeals' decision reads:

WHEREFORE, the Petition for Review is hereby GRANTED. The Decision of the Regional Trial
Court dated October 12, 2012 in Civil Case No. 437 is SET ASIDE. The Decision of the Municipal
Trial Court in Cities of Passi City is AFFIRMED and REINSTATED.

SO ORDERED.8

Rene filed a motion for reconsideration. In its 21 July 2015 Resolution, the Court of Appeals denied
the motion for lack of merit.

Thus, Rene came to this Court for relief.

The Issue

The sole issue in this case is whether the Court of Appeals committed a reversible error in ruling that
the Municipal Trial Court in Cities had jurisdiction over the case filed by Magdalena O'dell against
Rene Michael French.

The Ruling of this Court

We deny the petition.

In forcible entry, one is deprived of physical possession of real property by means of force,
intimidation, strategy, threats, or stealth whereas in unlawful detainer, one illegally withholds
possession after the expiration or termination of his right to hold possession under any contract,
express or implied. The two are distinguished from each other in that in forcible entry, the
possession of the defendant is illegal from the beginning, and that the issue is which party has
prior de facto possession while in unlawful detainer, possession of the defendant is originally legal
but became illegal due to the expiration or termination of the right to possess.10

A complaint for an action for unlawful detainer is sufficient if the following allegations are present:

1. initially, possession of property by the defendant was by contract with or by tolerance of the
plaintiff;

2. eventually, such possession became illegal upon notice by plaintiff to defendant of the termination
of the latter's right of possession;

3. thereafter, the defendant remained in possession of the property and deprived the plaintiff of the
enjoyment thereof; and

4. within one year from the last demand on defendant to vacate the property, the plaintiff instituted
the complaint for ejectment.11

As pointed out by the Court of Appeals, all the allegations in the complaint constitute a cause of
action for unlawful detainer. The complaint clearly indicated that Magdalena allowed Henry to
1âwphi1

occupy the land subject to certain conditions. Among the conditions is that Henry will vacate the land
when the time comes for Magdalena to use it. In 1991, Henry died and Rene took over the property.
On 10 January 2008, Magdalena, through her counsel, sent a demand letter to Rene to vacate the
land but the latter failed to comply. Rene's refusal to vacate the land prompted Magdalena to file the
complaint for unlawful detainer on 13 October 2008, well within the one year period from the demand
to vacate. Thus, all the requirements for an action for unlawful detainer have been sufficiently shown
in the complaint.

The Court, likewise, cannot accept Rene's claim that there was transfer of ownership between
Magdalena and Henry. Rene failed to substantiate this claim. The MTCC found that in the contract
for easement and tower occupancy with the National Power Corporation, Rene was a signatory as
an administrator of the land. As such, Rene's defense of open, continuous, notorious, and public
possession of the land in the concept of an owner must fail. In addition, the Court of Appeals
correctly ruled that in an ejectment case, the issue of ownership is only provisional. The only issue in
an unlawful detainer case is the material or physical possession of the property involved,
independent of any claim of ownership by any of the patties involved.12

WHEREFORE, we DENY the petition. We AFFIRM the 30 January 2015 Decision and the 21 July
2015 Resolution of the Court of Appeals Cebu City in CA-G.R. SP No. 07803.