Arakor Construction and Development Corporation v. Sta. Maria
Arakor Construction and Development Corporation v. Sta. Maria
Arakor Construction and Development Corporation v. Sta. Maria
Petition for Review on Certiorari assailing the Decision and Resolution of the Court of
Appeals, which affirmed the Decision of the Regional Trial Court of Dinalupihan, Bataan, which
granted the Complaint for Annulment of Deeds of Absolute Sale and Transfer Certificates of
Title filed by herein respondents.
FACTS:
The Spouses Fernando Gaddi, Sr. and Felicidad Nicdao Gaddi owned the five contested
parcels of land. Felicidad and Fernando Sr. died in 1985 and 1996, respectively. Atty. Greli
Legaspi, the president of petitioner Arakor Construction and Development Corporation,
informed the heirs of spouses Gaddis that their parents had already sold the contested five
parcels of land to Arakor as evidenced by two undated Deeds of Absolute Sale8 and that the
titles to the properties have already been transferred to Arakor's name.
Thus, the Gaddis filed a Complaint for Annulment of Deeds of Absolute Sale and
Transfer Certificates of Title against Arakor. They alleged that the two contracts of sale were
forged and the conveyance of the properties was fraudulent since Felicidad could not have signed
the documents and given her consent thereon since she has been dead for seven years before the
alleged execution of the said contracts.
The RTC declared the Deeds of Absolute Sale as void for being fictitious because
Felicidad had already passed away when the documents were executed. The CA affirmed the
Decision of the RTC. Arakor maintains that the contract was valid since there was valuable
consideration and the object of the sale was identified. It contends that at the time of the sale on
September 8, 1992 (which happened after Felicidad's death), Fernando Sr. owned the properties
in his own right and through the waivers executed by the Gaddis in his favor. Arakor or Atty.
Legaspi had no participation in the preparation and notarization of the Deeds of Absolute Sale as
they were the exclusive handiwork of Fernando Sr. and Efren. It asserts that the deeds should be
considered as relatively simulated contracts; thus, the transfer of the properties to Arakor's name
should be deemed as valid and binding. On the other hand, respondent posit that since Arakor
failed to authenticate the Deeds of Absolute Sale, these documents did not confer any right upon
it. Finally, they question the validity of the waivers as the said documents were not notarized.
ISSUE:
Whether or not the Deeds of Absolute Sale are null and void for being forged and
fictitious.
RULING:
Case law provides that "forgery cannot be presumed and must be proved by clear, positive and
convincing evidence by the party alleging the same." In this case, the Gaddis satisfactorily
discharged this burden by submitting in evidence the Certificate of Death of Felicidad to prove
that her demise preceded the execution of the contracts of sale. This is in addition to Arakor's
admission that Felicidad's death occurred before the sale transpired. Obviously, she could not
have signed any document which leads to no other conclusion than that her signatures in the
deeds were forged.
More importantly, "[i]f any one party to a supposed contract was already dead at the time
of Its execution, such contract is undoubtedly simulated and false, and, therefore, null and void
by reason of its having been made after the death of the party who appears as one of the
contracting parties therein." Indeed, "no one can give what one does not have; nemo dat quod
non habet. One can sell only what one owns or is authorized to sell, and the buyer can acquire no
more right than what the seller can transfer legally." Considering that Felicidad's signatures were
forged, the Deeds of Absolute Sale are null and void and convey no title to Arakor. Thus, the
TCTs which were issued in favor of Arakor "by virtue of the said spurious and forged document
are also null and void." In fact, "all the transactions subsequent to the alleged sale are likewise
void."