SERNA VS.

CA
G.R. No. 124605
June 18, 1999

FACTS: The petition for review on certiorari before us seeks to review the decision of the CA, which affirmed that of
the RTC declaring respondents as the absolute and lawful owners of the land covered by OCT No. 139 of the
Registry of Deeds of Pangasinan.
Dionisio Fontanilla was the original owner and possessor of a parcel of land located in Alaminos, Pangasinan . He
had 4 children, namely Rosa, Antonio, Jose and Lorenza. In 1921, the property was declared in his name for taxation
purposes. In the same year, Turner Land Surveying Company surveyed the land for Dionisio Fontanilla, with the
agreement that the cost of survey would be paid upon approval of the plan by the Bureau of Lands. On March 1923,
the Bureau of Lands approved the survey plan. In 1938, for failing to pay the survey costs and to prevent
foreclosure, Dionisio Fontanilla sold the land to his daughter, Rosa. In 1939, Rosa began paying the real
estate property tax thereon.

On August 1955, for a consideration of (P1,700.00), Rosa sold the land to her nephew, respondent
Santiago, evidenced by a notarized deed of absolute sale, signed by Rosa. The instrument was not registered. In
1955, respondents constructed their house of strong materials on the lot in question, which was completed in 1957.
On December 16, 1957, Rosas heirs, executed another deed of absolute sale over the same land in favor of
respondent Santiago. In 1978, respondents went to the United States to visit their daughter. They stayed there until
1981. On December 1978, talking advantage of respondents absence from the country, petitioners Enriquito and
Amparo Serna applied to the land registration court of Pangasinan for registration of the said parcel of land in their
name.
In 1979, the land registration court approved the application, and the Register of Deeds of Pangasinan issued OCT.
139 to petitioners.

On May 27, 1981, respondents spouses Santiago Fontanilla filed with the CFI an action for reconveyance with
damages, and sought the annulment of O.C.T. No. 139.
In the trial court, petitioners spouses Serna admitted that Dionisio Fontanilla originally owned the land in dispute.
However, they claimed that in 1978 they bought the property for (P3,000.00) from Lorenza . Lorenza, in turn,
traced her title from her husband, Alberto Rasca. Petitioner Amparo Serna said that when Dionisio failed to pay
the survey costs in 1921, Turner Land Surveying Company took the property in question as payment for
services. Her father, Alberto Rasca, redeemed the property from Turner evidenced by a deed of sale, which,
however, Amparo could not produce in court. When her father died, Santiago borrowed from her mother
Lorenza the deed covering the transfer of the property, which he did not return. She said that the property was first
declared in Albertos name for taxation purposes in 1951. Later, the property was ceded to her.
After due trial and consideration of the evidence presented before the trial court and in the land registration case,
the trial court rendered judgment in favor of the plaintiffs (herein respondents) spouses Santiago Fontanilla (a)
Declaring the plaintiffs as the absolute and legal owners of the land in question and (b) Ordering the defendants to
Transfer and Recover [sic] OCT No. 139 to the plaintiffs.
From the decision of the trial court, both parties appealed to the CA. Respondents questioned the
court a quos failure to grant their claim for moral damages. On the other hand, petitioners claimed that the trial
court committed serious error in the appreciation of facts and application of law and jurisprudence.
On August 1995, the CA rendered decision affirming that of the trial court.
In a resolution dated February 1996, the CA denied petitioners MR
Hence, this petition for review.

ISSUE: (1) Whether or not the appealed CA decision is supported by evidence;

(2) Whether or not the decision is in accordance with law and jurisprudence.
HELD: WHEREFORE, we DENY the petition for review on certiorari for lack of merit. We AFFIRM the decision and
resolution of the CA.
1. The first issue is factual, which the Supreme Court cannot review on appeal As a general rule, findings of fact of
the CA are binding and conclusive upon the court, and will not normally disturb such factual findings. This is
because in an appeal by certiorari to this Court, only questions of law may be raised.
Petitioners spouses Serna claim ownership of the land based on the deed of sale executed by Turner Land
Surveying Co. in favor of Alberto Rasca, which, however, they failed to present in court. The truth or falsity of this
claim is a question of fact, which, as aforesaid, is not reviewable in this appeal.

On the other hand, respondents proved that they were enjoying open, continuous and adverse possession of the
property for more than (60) years tacking in the possession of their predecessors in interest, Dionisio Fontanilla
and Rosa Pajaro. As early as 1921, Dionisio Fontanilla was in adverse possession and paying taxes over the land.
Rosa in turn, paid taxes for the first time in 1939, while respondents began paying taxes in 1967. They had their
residential house built in 1955, which was completed in 1957. In 1980, Santiago executed a tenancy agreement
with a certain Sixto Fontanilla. Until 1984, Santiago paid the taxes together with his tenant Sixto. Though mere tax
declaration does not prove ownership of the property of the declarant, tax declarations and receipts can be strong
evidence of ownership of land when accompanied by possession for a period sufficient for prescription.
2. At the time material hereto, registration of untitled land was pursuant to Act No. 496, as amended. Later, PD
1529, the Property Registration Decree, amended and codified laws relative to registration of property.
Adjudication of land in a registration (or cadastral) case does not become final and incontrovertible until the
expiration of one (1) year after the entry of the final decree. After the lapse of said period, the decree becomes
incontrovertible and no longer subject to reopening or review. However, the right of a person deprived of land or of
any estate or interest therein by adjudication or confirmation of title obtained by actual fraud is recognized by law
as a valid and legal basis for reopening and revising a decree of registration.
In the present case, respondents came to know of the fraud in securing title to the land sometime after its
registration, however, an innocent purchaser for value had not acquired the property. Extrinsic fraud attended the
application for the land registration. It was filed when respondents were out of the country and they had no way of
finding out that petitioners applied for a title under their name.

An action based on implied or constructive trust prescribes in ten (10) years. This means that petitioners should
have enforced the trust within ten (10) years from the time of its creation or upon the alleged fraudulent
registration of the property. Discovery of the fraud must be deemed to have taken place from the issuance of the
certificate of title because registration of real property is considered a constructive notice to all persons and it
shall be counted from the time of such registering, filing or entering.
Fortunately, respondents action for reconveyance was timely, as it was filed within ten (10) years from the
issuance of the Torrens title over the property.

NOTES:
1. Petitioners make an issue of the fact that the judge who penned the decision was not the one who presided over
the proceedings. It was ruled in People vs. Rayray, that the fact that the judge who heard the evidence is not
himself the one who prepared, signed and promulgated the decision constitutes no compelling reason to jettison
his findings and conclusions, and does not per se render his decision void. While it is true that the trial judge who
conducted the hearing would be in a better position to ascertain the truth or falsity of the testimonies of the
witnesses, it does not necessarily follow that a judge who was not present during the trial cannot render a valid and
just decision. For a judge who was not present during the trial can rely on the transcript of stenographic notes
taken during the trial as basis of his decision. Such reliance does not violate substantive and procedural due
process.

2. Distinction between the two types of questions: there is a question of law in a given case when the doubt or
difference arises as to what the law is pertaining to a certain state of facts, and there is a question of fact when the
doubt arises as to the truth or the falsity of alleged facts

3. The fraud contemplated by the law is actual and extrinsic fraud, which includes an intentional omission of a fact
required by law. For fraud to justify a review of a decree, it must be extrinsic or collateral, and the facts upon which
it is based have not been controverted or resolved in the case where the judgment sought to be annulled was
rendered. Persons who were fraudulently deprived of their opportunity to be heard in the original registration case
are entitled to a review of a decree of registration