Purita Salvatierra, et al., vs. Court of Appeals, 261 SCRA 45

Facts:

Enrique Salvatierra died without issues and survived by his brothers Tomas, Bartolome, Venancio, Macario and sister Marcela. He left them parcel of land as heirs that was extrajudicially partitioned among them. Anselmo, the son of Macario registered the whole Lot no. 26 with 749 sq. m. land area in his name on May 20, 1980 with a showing of bad faith knowingly that he only owns 405 sq. m. of land portion in Lot 26 as sold by his father to him which the latter inherited from Enrique. Lito Longalong and Paciencia Mariano who bought a portion of land in Lot 26 of 149 sq. m. land area brought an action for reconveyance on the said lot on November 22, 1985. Anselmo contends that such action already prescribed in 4 years as provided in article 1391 (action be brought for annulment within 4 yrs upon discovery of fraud.) However, the CA ruled that the prescription periods in the case at bar is 10 years according to Art. 1144.

Issue:

Whether or not the prescription period runs in 4 years (according to Art. 1391 of the Civil Code) or 10 years (according to Art. 1144 of the Civil Code)?

Ruling:

With the evidence of fraud and the issue involving a real property, the court ruled that Article 1144 of the Civil Code provides that the prescriptive period for the reconveyance of fraudulently registered real property is ten (10) years reckoned from the date of the issuance of the certificate of title and should govern in the case at bar. The action has not prescribed.