SALVADOR COMILANG vs. FRANCISCO BURCENA and MARIANO BURCENA

G.R. No. 146853             February 13, 2006


FACTS
Respondents, together with their mother, Dominga, filed a complaint for annulment of document with damages against petitioner. The complaint alleges that: respondents are the owners of a parcel of land located in Ilocos Sur and the house built thereon; respondents acquired the subject property through their earnings while working abroad; the subject property was declared for taxation purposes in Dominga’s name as administrator thereof; petitioner caused the execution of a Deed of Donation over said property by taking advantage of Dominga’s blindness, old age and physical infirmity; the said Deed of Donation is null and void because: (a) Dominga had no right to donate the same since she is not its owner, (b) Dominga did not give her consent and was misled to the execution of such document, (c) granting Dominga had authority to donate, the donation is void because the property donated is the only property declared in her name and therefore she could not have reserved for herself in full ownership sufficient property to support herself; petitioner is in possession of the subject property, depriving respondents of its ownership and enjoyment of its fruits.

ISSUE
Whether or not implied trust arise dove the subject property

RULING
In holding that an implied trust exists between respondents and Dominga in relation to the subject property and therefore Dominga had no right to donate the same to petitioner, the CA merely clarified the RTC’s findings.

Article 1448 of the Civil Code on implied trust provides:
Art. 1448. There is an implied trust when property is sold, and the legal estate is granted to one party but the price is paid by another for the purpose of having the beneficial interest of the property. The former is the trustee, while the latter is the beneficiary. However, if the person to whom the title is conveyed is a child, legitimate or illegitimate, of the one paying the price of the sale, no trust is implied by law, it being disputably presumed that there is a gift in favor of the child.

The trust created under the first sentence of Article 1448 is sometimes referred to as a purchase money resulting trust, the elements of which are: (a) an actual payment of money, property or services, or an equivalent, constituting valuable consideration; and (b) such consideration must be furnished by the alleged beneficiary of a resulting trust. Respondents have shown that the two elements are present in the instant case. Dominga was merely a trustee of the respondents in relation to the subject property. Therefore, Dominga could not have validly donated the subject property to petitioner, as expressly provided in Article 736 of the Civil Code, thus:
Art. 736. Guardians and trustees cannot donate the property entrusted to them.
Truly, nobody can dispose of that which does not belong to him.


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