ALEJANDRO MILLENA, petitioner, vs CA and FELISA JACOB, represented herein by her

attorney-in-fact JAIME LLAGUNO, respondents.

Facts:
- A 14,282 sq.mtr. land (Lot 1874) is a subject of cadastral proceeding w/ claimants
Gregroria Listana and her sister-in-law Potencia Maramba Listana w/ her 7 children
- Parties reached a compromise agreement w/c was submitted to the Court and
adjudicated accordingly where Gregoria gets 1/4 share (3,934 sq.mtr) and Potencia and
children gets 3/4 share
- Gregoria was sick of TB and death being inevitable executed an SPA authorizing cousin
Antonio Lipato to sell her portion of Lot 1874 for proceeds to be used for her burial
- Lipato sold Gregoria’s portion to Gaudencio Jacob on Oct 23, 1926 and incidentally on
the same day Gregoria died
- Jacob thereafter took possession of land and started harvesting coconuts therein
- Potencia having learned of Jacob’s entry of Gregroia’s lot portion, filed an ejectment
case
- Court dismissed case on Dec 31, 1926 ruling Jacob’s possession of land was authorized
having with him a document of sale as evidence
- Thereafter, Jacob had a continuous, actual and peaceful possession of said lot for 40 yrs
until Apr 4, 1966 when such land was adjudicated to her daughter Felisa Jacob in an
extra-judicial settlement
- Right after acquiring the property, Felisa instructed her nephew Jaime Llaguno to
continue working as caretaker of the land making improvements on it and paid it’s
property taxes
- Sometime in Nov 1981 Felisa discovered that Florencio Listana, son of Potenciana,
acquired from the Bureau of Lands a Free Patent Certificate dated Aug 28, 1980
covering the entire 14,284-square meter area of Lot 1874 which included her portion
- Felisa immediately filed a protest before the Bureau of Lands alleging that she was the
absolute owner of a 1/4 portion of Lot 1874 and that through misrepresentation and
deceit Florencio was able to secure title for the whole lot and prayed that an investigation
be conducted and that the Free Patent issued be annulled and set aside
- Subsequently, Florencio died and despite the protest filed by Felisa, the heirs of
Florencio sold the entire Lot 1874 to Alejandro Millena (nephew of Florencio) on Sep 30,
1986 who was eventually issued TCT covering the whole of Lot 1874
- On Mar 17, 1992 Felisa filed a complaint against Millena for annulment of title and claim
for reconveyance of 1/4 porition of Lot 1874, with preliminary injunction on the
construction of a house on said lot and damages
- RTC ruled in favor of Felisa w/c was affirmed by CA upon appeal
- A Petition for Review on Certiorari under Rule 45 was filed in SC by Millena contending
that lower courts failed to consider the issue of prescription
Issue
Whether or not action for reconveyance is barred by prescription.
Ruling
No. While an action for reconveyance based on fraud prescribes 4 years from the
discovery of the fraud w/c is deemed to take place at the issuance of OCT and 10 years if it
is based on an implied or a constructive trust, from the issuance of the OCT or TCT, there
is an exception to this rule. Prescription cannot be invoked in an action for reconveyance
when the plaintiff is in possession of the land to be reconveyed.
Possession of a certificate of title alone does not necessarily make the holder, the true
owner of all the property described therein since the inclusion of an area which the
registered owner or successful applicant has no claim on and any right of ownership is void
and of no effect.
Petition is denied and petitioner is ordered to reconvey w/in 30 days from the finality of
Decision that portion of Lot 1874 consisting of 3,934 square meters in favor of Felisa Jacob,
represented by her attorney-in-fact Jaime Llaguno.