Ortiz vs Kayanan

GR L-32974 , July 30, 1979

Petition for certiorari and Prohibition with Preliinary !n"unction to nullify the #rder
of re$%ondent Jud&e directin& the e'ecution of the (nal "ud&ent fa)orin& the
deci$ion of the *ecretary of +&riculture and ,atural Re$ource$, &i)in& %reference to
the $ale$ a%%lication$ of %ri)ate re$%ondent$ -uirino .ointan and /leuterio
0aora o)er Lot located at 1arrio .abuluan, .alaua&, -ue2on3
4+.5*6
17 5he lot in contro)er$y wa$ forerly the $ub"ect of 8oe$tead +%%lication of
9artin :olorico !! who died on +u&u$t 20, 1931 and naed 9artin :olorico ! hi$
uncle a$ hi$ heir and $ucce$$or in intere$t3
27*ince then it wa$ %lainti; who continued the culti)ation and %o$$e$$ion of the
%ro%erty, without howe)er (lin& any a%%lication to ac<uire title
37 9artin :olorico ! e'ecuted an a=da)it relin<ui$hin& hi$ ri&ht$ o)er the %ro%erty in
fa)or of defendant$ -uirino .ointan and /leuterio 0aora, hi$ &rand$on and $on-
in-law, re$%ecti)ely, and re<ue$ted the :irector of Land$ to cancel the hoe$tead
a%%lication
47 .ointan and 0aora (led their re$%ecti)e $ale$ a%%lication$3
>7 that %lainti; (led hi$ %rote$t on ,o)eber 2?, 19>1 alle&in& that he $hould be
&i)en %reference to %urcha$e the lot ina$uch a$ he i$ the actual occu%ant and ha$
been in continuou$ %o$$e$$ion of the $ae3
?7 @Portion +@ of the %ro%erty wa$ $old at %ublic auction wherein defendant
.ointan wa$ the only bidder3
77 in)e$ti&ation wa$ conducted on %lainti;A$ %rote$t by +$$i$tant Public Land$
!n$%ector and rendered a deci$ion di$i$$in& %lainti;A$ clai and &i)in& due cour$e
to defendant$A $ale$ a%%lication$ on the &round that the relin<ui$hent of the
hoe$tead ri&ht$ of 9artin :olorico ! in fa)or of .ointan and 0aora i$ %ro%er,
the forer ha)in& been de$i&nated a$ $ucce$$or in intere$t of the ori&inal
hoe$tead a%%licant and that becau$e %lainti; failed to %artici%ate in the %ublic
auction, he i$ fore)er barred to clai the %ro%erty
B7 that %lainti; (led a otion for recon$ideration of thi$ deci$ion which wa$ denied
by the :irector of Land$ and then to *ecretary of +&riculture wherein the Re&ional
Land #=cer deci$ion wa$ a=red
975he re$%ondent .ourt rendered "ud&eent in the followin&6
Jud&ent i$ hereby rendered awardin& the lot, one-half %ortion of the
%ro%erty in liti&ation in fa)or of defendant -C!R!,# .#9!,5+,, and hereby &i)in&
due cour$e to the *ale$ +%%lication of defendant /leuterio 0aora o)er the other
half, without %re"udice to the ri&ht of %lainti; 1+R5#L#9/ #R5!0 to %artici%ate in
the %ublic biddin& 3 :efendant$ -uirino .ointan and /leuterio 0aora are ordered
to reibur$e "ointly $aid %lainti; the i%ro)eent$ he ha$ introduced on the whole
%ro%erty the latter ha)in& the ri&ht to retain the %ro%erty until after he ha$ been
fully %aid therefore, without intere$t $ince he en"oy$ the fruit$ of the %ro%erty in
<ue$tion, with %re"udice and with co$t$ a&ain the %lainti;3
107 .ourt a%%ointed re$%ondent Dicente 4erro, .lerE of .ourt, a$ Recei)er to collect
toll$ on a %ortion of the %ro%erty u$ed a$ a di)er$ion road3
117 5he .ourt coanded any lawful o=cer to deli)er to defendant$ .ointan and
0aora the land $ub"ect of the deci$ion in thi$ ca$e but allowin& defendant$ to (le a
bond in $uch aount a$ thi$ 8onorable .ourt ay (', in lieu of the P13,?32300
re<uired to be %aid to %lainti;
127 5he record$ further di$clo$ed that fro 9arch 19?7 to :eceber 31, 19?B,
%iainti; 1artoloe #rti2 collected toll$ on a %ortion of the %ro%ert) in <ue$tion
wherein he ha$ not introduced an) i%ro)eent3 ln )irtue of he (ndin&$ of thi$
.ourt a$ contained in the di$%o$iti)e %ortion of it$ deci$ion, the defendant$ are
"ointly obli&ated to %ay the %lainti; in the aount of P13,?32300 a$ rea$onable
)alue of the i%ro)eent$ he introduced on the whole %ro%erty in <ue$tion, and
that he ha$ the ri&ht of retention until fully %aid3 !t can be &leaned fro the otion
of the defendant$ that if %lainti; $ubit$ an accountin& of the toll$ he collected
durin& the %eriod$ abo)e alluded to, their daa&e$ of about P2>,000300 can ore
than o;$et their obli&ation of P13,3?2300 thereafter the %o$$e$$ion of the land be
deli)ered to the defendant$
137 #rti2 contend$6
F17 the o;er of a bond in lieu of %ayent of P13,?32300 doe$ not, and cannot,
$ati$fy the condition i%o$ed in the deci$ion of thi$ .ourt which wa$ a=red in
totoG
F27 the %ublic $ale of Portion @1@ of the land ha$ $till to taEe %lace a$ ordained
before the deci$ion could be e'ecutedG
F37 that whate)er $u$ %lainti; ay deri)e fro the %ro%erty cannot be $et
o; a&ain$t what i$ due hi for the i%ro)eent$ he ade, for which he ha$ to be
reibur$ed a$ ordered
147 5he otion for e'ecution (led by the defendant wa$ &ranted a$ follow$6
H (ndin& the 9otion for /'ecution (led by the defendant$ to be eritoriou$,
the $ae i$ &rantedG %ro)ided, howe)er, that they %ut u% a bond e<ual the
ad"udicated aount of P13,?32300
H5he reibur$eent to the %lainti; %ertain$ only to the )alue of the
i%ro)eent$, liEe coconut tree$ and other %lant$ which he introduced on the
whole %ro%erty3 5he toll$ collected by the %lainti; on an uni%ro)ed %ortion
naturally belon& to the defendant$, followin& the doctrine on accretion3
H!n$ofar a$ the one-half %ortion @1@ of the %ro%erty, the deci$ion ay be
e'ecuted only after %ublic $ale by the 1ureau of Land$ $hall be acco%li$hed3
1>75he order of e'ecution to the $heri; read a$ follow$6
H1ut $hould there be found any aount collectible after accountin& and
deductin& the aount of P13,?32300, you are hereby ordered that of the &ood$
and chattel$ of 1artoloe #rti2 be cau$ed to be ade any e'ce$$ in the abo)e-
etioned aount to&ether with your lawful fee$ and that you render $ae to
defendant -uirino .ointan
H !f $u=cient %er$onal %ro%erty cannot be found thereof to $ati$fy thi$
e'ecution and lawful fee$ thereon, then you are coanded that of the land$
and buildin&$ of the $aid 1+R5#L#9/ #R5!0 you aEe the $aid e'ce$$ aount in
the anner re<uired by the Rule$ of .ourt, and aEe return of your
%roceedin&$ within thi$ .ourt within $i'ty F?07 day$ fro date of $er)ice3
H Iou are al$o ordered to cau$e 1artoloe #rti2 to )acate the %ro%erty within
(fteen F1>7 day3
1?7 #n #ctober 12, 1970, %etitioner (led a 9otion for Recon$ideration of the
afore$aid #rder and Jrit of /'ecution, alle&in&6
175hat the re$%ondent "ud&e ha$ no authority to %lace re$%ondent$ in
%o$$e$$ion of the %ro%ertyG
275hat the *u%ree .ourt ha$ ne)er a=red any deci$ion of the trial court
that toll$ collected fro the di)er$ionary road on the %ro%erty, which i$ %ublic land,
belon& to $aid re$%ondent$G
375hat to a$$e$$ %etitioner a P2>,000300 liability for daa&e$ i$ %urely
%uniti)e i%o$ition without factual or le&al "u$ti(cation3
1775he otion for recon$ideration wa$ denied and the "ud&e rendered deci$ion a$
follow$6
H+n a%%licant who ha$ co%lied with all the ter$ and condition$ which
entitle hi to a %atent for a %articular tract of %ublic land, ac<uire$ a )e$ted ri&ht
therein and i$ to be re&arded a$ e<uitable owner thereof $o that e)en without
a %atent, a %erfected hoe$tead or $ale$ a%%lication i$ a %ro%erty ri&ht in the
fulle$t $en$e, una;ected by the fact that the %araount title i$ $till in the
Go)ernent and no $ub$e<uent law can de%ri)e hi of that )e$ted ri&ht3
H5hat the e'ecution of the deci$ion with re$%ect to the one-half %ortion @1@
$hall not be conditioned to the %ublic $ale by the 1ureau of Land$3
1B7#rti2 further ar&ue$ that6
Hthat no %ayent for i%ro)eent$ ha$ been ade and, in$tead, a bond
therefor had been (led by defendant$ F%ri)ate re$%ondent$7, which, accordin& to
%etitioner, i$ not the %ayent en)i$a&ed in the deci$ion3
H with re$%ect to %ortion @1@, %etitioner alle&e$ that, under the deci$ion, he
ha$ the ri&ht to retain the $ae until after he ha$ %artici%ated and lo$t in the
%ublic biddin& of the land to be conducted by the 1ureau of Land$3 !t i$ claied
that it i$ only in the e)ent that he lo$e$ in the biddin& that he can be le&ally
di$%o$$e$$ed thereof3
H!t i$ the %o$ition of %etitioner that all the fruit$ of the %ro%erty, includin& the
toll$ collected by hi fro the %a$$in& )ehicle$, which accordin& to the trial court
aount$ to P2>,000300, belon&$ to %etitioner and not to defendantK%ri)ate
re$%ondent -uirino .ointan3
1B7#rti2 thu$ %rayed6
F17 a Jrit of Preliinary !n"unction be i$$ued en"oinin& the enforceent of the
#rder$ and the Jrit of /'ecution i$$ued thereto, or re$torin& to %etitioner the
%o$$e$$ion of the %ro%erty
F27 +nnullin& $aid #rder$ a$ well a$ the Jrit of /'ecution, di$$ol)in& the
recei)er$hi% e$tabli$hed o)er the %ro%ertyG and
F37 orderin& %ri)ate re$%ondent$ to account to %etitioner all the fruit$ they
ay ha)e &athered or collected fro the %ro%erty in <ue$tion fro the tie of
%etitionerA$ ille&al di$%o$$e$$ion thereof
!**C/6
J#, #rti2 can a%%ro%riate for hi$ e'clu$i)e bene(t all the fruit$ which he
ay deri)e fro the %ro%erty, without any obli&ation to a%%ly any %ortion thereof to
the %ayent of the intere$t and the %rinci%al of the debt3
8/L:6
- 5here i$ no <ue$tion that a %o$$e$$or in &ood faith i$ entitled to the fruit$ recei)ed
before the %o$$e$$ion i$ le&ally interru%ted3 Po$$e$$ion in &ood faith cea$e$ or i$
le&ally interru%ted fro the oent defect$ in the title are ade Enown to the
%o$$e$$or Fi3e3 (lin& of $uit73 8ence, all the fruit$ that the %o$$e$$or ay recei)e
fro the tie he i$ $uoned in court u$t be deli)ered and %aid by hi to the
owner or lawful %o$$e$$or3
- 8owe)er, e)en after hi$ &ood faith cea$e$, the %o$$e$$or in fact can $till retain the
%ro%erty until he ha$ been fully reibur$ed for all the nece$$ary and u$eful
e'%en$e$ ade by hi on the %ro%erty3
- the ri&ht of the %o$$e$$or to recei)e the fruit$ terinate$ when hi$ &ood faith
cea$e$3
-5he ri&ht of retention in thi$ ca$e i$ analo&ou$ to a contract of antichre$i$ and it
cati be con$idered a$ a ean$ of e'tin&ui$hin& the obli&ation, ina$uch a$ the ri&ht
to retain the thin& la$t$ only for the %eriod nece$$ary to enable the creditor to be
reibur$ed fro the fruit$ for the nece$$ary and u$eful e'%en$e$3
- +ccordin& to 9anre$a, the ri&ht of retention i$, therefore, analo&ou$ to that of a
%led&e, if the %ro%erty retained i$ a o)able, and to that of antichre$i$, if the
%ro%erty held i$ io)able, in which the creditor i$ able to obtain the %ayent of a
debt3
-5hu$, %etitioner cannot a%%ro%riate for hi$ own e'clu$i)e bene(t the toll$ which he
collected fro the %ro%erty retained by hi, that the di$%uted toll$, after deductin&
%etitionerA$ e'%en$e$ for adini$tration, belon& to -uirino .ointan, owner of the
land3
-5hi$ i$ "u$t and %ro%er under the circu$tance$ and, under the law, co%en$ation
or $et o; ay taEe %lace, either totally or %artially3 .on$iderin& that %etitioner i$ the
creditor with re$%ect to the "ud&ent obli&ation and the debtor with re$%ect to the
toll$ collected the trial courtL$ order for accountin& and co%en$ation i$ correct3
- it a%%ear$ that no %ublic $ale ha$ yet been conducted by the 1ureau of Land$ and,
therefore, %etitioner i$ entitled to reain in %o$$e$$ion thereof3 +fter %ublic $ale i$
had and in the e)ent that #rti2 i$ not declared the $ucce$$ful bidder, then he $hould
be reibur$ed by re$%ondent 0aora in the corre$%ondin& aount for the
i%ro)eent$ on Lot3
-J8/R/4#R/, in )iew hereof, the #rder of re$%ondent .ourt of ,o)eber 1B, 1970
i$ hereby odi(ed to confor to the fore&oin& "ud&ent3 5he Jrit of Preliinary
!n"unction, dated January 29, 1971, i$ hereby di$$ol)ed