Spec Pro Class 2020

FACTS:

Herein petitioners, Benny Sampilo and Honorato Salacup each bought from Leoncia de Leon parcels of land which Leoncia allegedly inherited from her late husband Teodoro Tolete by way of intestate succession stating in an affidavit that "the deceased Teodoro Tolete left no children or respondent neither ascendants or acknowledged natural children neither brother, sisters, nephews or nieces, but the, widow Leoncia de Leon, the legitimate wife of the deceased, the one and only person to inherit the above properties" This affidavit was registered in the Office of the Register of Deeds of Pangasinan.

 

One Felisa Sinopera claiming to be a niece of the deceased instituted proceedings for the administration of the estate of Teodoro Tolete and having secured her appointment as administratrix, brought the present action on June 20, 1950. Notice of lis pendens was filed in the Office of the Register of Deeds and said notice was recorded on certificates of title covering the said properties on June 26, 1950. This notice, however, was subsequent to the registration of the deed of sale, in favor of Honorato Salacup, which took place on June 17, 1950.

 

Felisa alleged that the widow Leoncia de Leon had no right to execute the affidavit of adjudication and that Honorato Salacup acquired no rights to the lands sold to him, and that neither had Benny Sampilo acquired any right to the said properties.

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Benny Sampilo and Honorato Salacup have appealed to this Court by certiorari.

 

ISSUE:

Whether or not the cause of action has already prescribed.

 

RULING:

No, Petitioners argued that as the action was instituted almost four years after the affidavit of adjudication, Exhibit "A", was registered in the Office of the Register of Deeds Of Pangasinan, the right of action of the administratrix has prescribed and lapsed because the same was not brought within the period of two years as Prescribed in Section 4 of Rule 74 of the Rules of Court;

 

Section 4 of Rule 74 provides, in part, as follows:

 

SEC. 4. Liability of distributees and estate. — If it shall appear at any time within two years after the settlement and distribution of an estate in accordance with the provisions of either of the first two sections of this rule, that an heir or other has been unduly deprived of his lawful participation of the such heir or such other person may compel the settlement estate in the courts in the manner hereinafter provided for the purpose of satisfying such lawful participation. . . .

 

Section 1, which is mentioned in Section 4, reads as follows:

 

SEC. 1. Extrajudicial settlement by agreement between the heirs. — If the decedent left no debts and the heirs and legatees are all of age, or the minors are represented by their judicial guardians, the parties may, without securing letters of administration, divide the estate among themselves as they see fit by means of a public instrument filed in the office of the register of deeds, and should they disagree, they may do so in an ordinary action of partition. If there is only one heir or one legatee, he may adjudicate to himself the entire estate by means of an affidavit filed in the office of the register of deeds. It shall be presumed that the decedent left no debts if no creditor files a petition for letters of administration within two years after the death of the decedent.

 

It will be noted that the provision next above-quoted contains two parts, the first referring to a case in which there are two or more heirs interested in the estate of a deceased person, and the second in which there is only one heir.

 

We notice two significant provisions in Sections 1 and 4 of Rule 74. In Section 1, it is required that if there are two or more heirs, both or all of them should take part in the extrajudicial settlement. By the title of Section 4, the "distributees and estate" indicates the persons to answer for rights violated by the extrajudicial settlement. On the other hand, it is also significant that no mention is made expressly of the effect of the extrajudicial settlement on persons who did not take part therein nor had no notice or knowledge thereof. There cannot be any doubt that those who took part or had knowledge of the extrajudicial settlement are bound thereby. As to them the law is clear that if they claim to have been in any manner deprived of their lawful right or share in the estate by the extrajudicial settlement, they may demand their rights or interest within the period of two years, and both the distributes and estate would be liable to them for such rights or interest. Evidently, they are the persons in accordance with the provision, may seek to remedy, the prejudice to their rights within the two-year period. But as to those who did not take part in the settlement or had no notice of the death of the decedent or of the settlement, there is no direct or express provision is unreasonable and unjust that they also be required to assert their claims within the period of two years. To extend the effects of the settlement to them, to those who did not take part or had no knowledge thereof, without any express legal provision to that effect, would be violative of the fundamental right to due process of law.

 

The procedure outlined in Section 1 of Rule 74 of extrajudicial settlement, or by affidavit, is an ex parte proceeding. It cannot by any reason or logic be contended that such settlement or distribution would affect third persons who had no knowledge either of the death of the decedent or of the extrajudicial settlement or affidavit, especially as no mention of such effect is made, either directly or by implication.

 

Following the above-quoted decision of this Court in the case of Ramirez vs. Gmur, supra, we are of the opinion and so hold that the provisions of Section 4 of Rule 74, barring distributees or heirs from objecting to an extrajudicial partition after the expiration of two years from such extrajudicial partition, is applicable only (1) to persons who have participated or taken part or had notice of the extrajudicial partition, and, in addition, (2) when the provisions of Section 1 of Rule 74 have been strictly complied with, i.e., that all the persons or heirs of the decedent have taken part in the extrajudicial settlement or are represented by themselves or through guardians. The case at bar fails to comply with both requirements because not all the heirs interested have participated in the extrajudicial settlement, the Court of Appeals having found that the decedent left aside from his widow, nephews and nieces living at the time of his death.