Hernandez V Hernandez

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CORNELIA M. HERNANDEZ v. CECILIO F.

HERNANDEZ
GR No. 158576, March 9, 2011
PONENTE: PEREZ, J.

FACTS:
The DPWH offered to purchase a portion of a parcel of land with an area of 80,133 square meters,
located at San Rafael, Sto. Tomas, Batangas, for use in the expansion of the South Luzon
Expressway. The land is pro-indiviso owned by petitioner Cornelia, Atty. Jose M. Hernandez,
deceased father of respondent Cecilio, represented by Paciencia Hernandez and Mena
Hernandez, also deceased and represented by her heirs. After a series of negotiations with the
DPWH, the last offer stood at P70.00 per square meter. They still did not accept the offer and
the government was forced to file an expropriation case.The owners of the Hernandez property
executed a letter indicating: (1) Cecilio as the representative of the owners of the land; and (2)
the compensation he gets in doing such job. Cornelia and her other co-owners executed an
irrevocable SPA, appointing Cecilio Hernandez as their true and lawful attorney. The SPA stated
that the authority shall be irrevocable and continue to be binding all throughout the negotiation.
There was no mention of the compensation scheme for Cecilio.The just compensation for the
condemned properties was fixed at P1,500.00 per square meter. With total area of 14,643 square
meters, P21,964,500.00 will be the just compensation.

However, petitioner executed a Revocation of the SPA withdrawing the authority earlier
granted to Cecilio in the SPA. Without the termination of counsel on record, Cornelia, moved for
the withdrawal of her 1/3 share of the just compensation, which is equivalent to
P7,321,500.00.The trial court took cognizance of the irrevocable nature of the SPA. Cecilio,
therefore, was able to get not just 1/3 of, but the entire sum of the compensation. Cornelia
received from Cecilio a BPI Check amounting to P1,123,000.00. The check was however
accompanied by a Receipt and Quitclaim document in favor of Cecilio. The check was received
by Cornelia with a heavy heart. She averred in her ex-parte testimony that she was forced to
receive such amount because she needs the money immediately for medical expenses due to
her frail condition.

ISSUE:
Whether or not the Court of Appeals erred in holding the validity of the receipt and quitclaim
document contrary to law and jurisprudence.
RULING:
As pro-indiviso landowners of the property taken, each one of them ought to receive an equal
share or 1/3 of the total amount which is equivalent to P7,321,500.00. What is on record is that
Cornelia asked for an accounting of the just compensation from Cecilio several times, but the
request remained unheeded. Instead of an accounting, what Cornelia received was a receipt and
quitclaim document that was ready for signing. Based on the attending circumstances, the
receipt and quitclaim document is an act of fraud perpetuated by Cecilio. Very clearly, both the
service contract of 11 November 1993 letter- agreement, and the later receipt and quitclaim
document, the first vitiated by mistake and the second being fraudulent, are void. Hence, the
petition is granted and the decision of the CA is set aside.

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