Ernesto David et al v Cristito Malay GR No. 132644, November 19, 1999 (318 SCRA 711)

Facts:

Andres Adona, married to Leoncia Abad, applied for a homestead patent over a parcel of agricultural land. When Leoncia died, he cohabited with Ma. Espiritu without the benefit of marriage. When Andres died Ma. Espiritu succeeded in obtaining title over the land in her name. After Maria Espiritu died, her children as well as descendants of Andres Adona by his marriage with Leoncia Abad, continued to be in peaceful and quiet possession of the subject land. The petitioners executed a deed of extrajudicial settlement with sale over the property to Mrs. Ungson. Respondents protested contending they are the true owners of the land. The sale was however rescinded because Mrs. Ungson failed to pay in full the amount agreed upon. Subsequently, the petitioners executed another deed of Extrajudicial Settlement with Sale, dividing equally among themselves the land and sold their respective shares to their co-petitioner Ubago et al. where an Original Cert. of Title was issued in their favor on Nov. 27, 1992. Respondents filed a complaint for annulment of sale with restraining order, injunction and damages against the petitioners contending that the Original Cert. of Title was obtained by Ma. Espiritu by false representation as the widow of Andres Adona.

Lower court ruling: dismissed the complaint for lack of cause of action and on ground of prescription. The action, being an annulment of sale based on fraudulent titling of the property constitutes a cause of action of a collateral attack on the Torrens Title. Even if the action was treated as one of conveyance, the suit will still fail because the action for reconveyance could be brought within 10 years from the date of issuance of certificate of title and the action has already prescribed.