Republic of the Philippines

Supreme Court
Manila

FIRST DIVISION


FEDERICO JRNTI!!" JR#"
Petitioner,


- versus -


NTONIET JRNTI!!"
$%ENVENT%R
REMOTI&%E" S%$STIT%TED $'
C'NT(I REMOTI&%E" DOROTEO
JRNTI!! an) TOMS
JRNTI!!"
Respondents.
&#R# No# *+,,-.

Present:

CORONA, C.J.,
Chairperson,
LEONARDO-DE CASTRO,
PERALTA,
*
ABAD,
**
and
PEREZ, JJ.

Prom!"ated:

De#em$er %, &'%'
(- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -(


D E C I S I O N


!EONRDO/DE CSTRO" J#0

This petition )or re*ie+ on certiorari
,%-
see.s to modi)/ the
De#ision
,&-
o) the Cort o) Appea!s dated 0!/ 1', &''& in CA-2.R. C3 No.
4'556, +hi#h set aside the De#ision
,1-
dated De#em$er %5, %77& o) the
Re"iona! Tria! Cort 8RTC9 o) :e;on Cit/, Bran#h 75 in Ci*i! Case No. :-
<'4=4.

The pertinent )a#ts are as )o!!o+s:

The sposes Andres 0aranti!!a and >e!isa 0a!e#o +ere sr*i*ed $/
ei"ht #hi!dren: >ederi#o, De!?n, Ben@amin, Con#hita, Rosita, Pa#ita, Ra)ae!
and Antonieta.
,4-
Petitioner >ederi#o 0aranti!!a, 0r. is the "rand#hi!d o) the
!ate 0aranti!!a sposes $/ their son >ederi#o 0aranti!!a, Sr. and his +i)e
Leda 0ami!i.
,<-
Petitioner a!so has t+o other $rothers: Doroteo and Tomas
0aranti!!a.

Petitioner +as one o) the de)endants in the #omp!aint $e)ore the
RTC +hi!e Antonieta 0aranti!!a, his ant, +as the p!aintiA therein. Bis #o-
respondents $e)ore he @oined his ant Antonieta in her #omp!aint, +ere
his !ate ant Con#hita 0aranti!!aCs hs$and Bena*entra Remoti"e, +ho
died drin" the penden#/ o) the #ase, his #osin C/nthia Remoti"e, the
adopted da"hter o) Con#hita 0aranti!!a and Bena*entra Remoti"e,
and his $rothers Doroteo and Tomas 0aranti!!a.
,=-

Dn %745, the 0aranti!!a heirs e(tra@di#ia!!/ partitioned amon"st
themse!*es the rea! properties o) their de#eased parents.
,6-
Eith the
e(#eption o) the rea! propert/ ad@di#ated to Pa#ita 0aranti!!a, the heirs
a!so a"reed to a!!ot the prod#e o) the said rea! properties )or the /ears
%746-%747 )or the stdies o) Ra)ae! and Antonieta 0aranti!!a.
,5-

Dn the same /ear, the sposes Rosita 0aranti!!a and 3i*en#io
Deo#ampo entered into an a"reement +ith the sposes Bena*entra
Remoti"e and Con#hita 0aranti!!a to pro*ide mta! assistan#e to ea#h
other $/ +a/ o) ?nan#ia! spport to an/ #ommer#ia! and a"ri#!tra!
a#ti*it/ on a @oint $siness arran"ement. This $siness re!ationship
pro*ed to $e s##ess)! as the/ +ere a$!e to esta$!ish a man)a#trin"
and tradin" $siness, a#Fire rea! properties, and #onstr#t $i!din"s,
amon" other thin"s.
,7-
This partnership ended in %761 +hen the parties,
in an GA"reement,H
,%'-
*o!ntari!/ a"reed to #omp!ete!/ disso!*e their G@oint
$siness re!ationshipIarran"ement.H
,%%-

On Apri! &7, %7<6, the sposes Bena*entra and Con#hita
Remoti"e e(e#ted a do#ment +herein the/ a#.no+!ed"ed that +hi!e
re"istered on!/ in Bena*entra Remoti"eCs name, the/ +ere not the
on!/ o+ners o) the #apita! o) the $sinesses Jani!a Ath!eti# Spp!/ 86%&
Raon Street, Jani!a9, Remoti"e Tradin" 8Ca!!e Rea!, D!oi!o Cit/9 and
Remoti"e Tradin" 8Cota$ato Cit/9. Dn this same GA#.no+!ed"ement o)
Parti#ipatin" Capita!,H the/ stated the parti#ipatin" #apita! o) their #o-
o+ners as o) the /ear %7<&, +ith Antonieta 0aranti!!aCs stated as ei"ht
thosand pesos 8P5,'''.''9 and >ederi#o 0aranti!!a, 0r.Cs as ?*e thosand
pesos 8P<,'''.''9.
,%&-

The present #ase stems )rom the amended #omp!aint
,%1-
dated Apri!
&&, %756 ?!ed $/ Antonieta 0aranti!!a a"ainst Bena*entra Remoti"e,
C/nthia Remoti"e, >ederi#o 0aranti!!a, 0r., Doroteo 0aranti!!a and Tomas
0aranti!!a, )or the a##ontin" o) the assets and in#ome o) the #o-
o+nership, )or its partition and the de!i*er/ o) her share #orrespondin" to
ei"ht per#ent 85K9, and )or dama"es. Antonieta #!aimed that in %74=, she
had entered into an a"reement +ith Con#hita and Bena*entra
Remoti"e, Ra)ae! 0aranti!!a, and Rosita and 3i*en#io Deo#ampo to
en"a"e in $siness. Antonieta a!!e"ed that the initia! #ontri$tion o)
propert/ and mone/ #ame )rom the heirsC inheritan#e, and her
s$seFent anna! in*estment o) se*en thosand ?*e hndred pesos
8P6,<''.''9 as additiona! #apita! #ame )rom the pro#eeds o) her
)arm. Antonieta a!so a!!e"ed that )rom %74=-%7=7, she had he!ped in the
mana"ement o) the $siness the/ #o-o+ned +ithot re#ei*in" an/
sa!ar/. Ber sa!ar/ +as spposed!/ ro!!ed $a#. into the $siness as
additiona! in*estments in her $eha!). Antonieta )rther #!aimed #o-
o+nership o) #ertain properties
,%4-
8the s$@e#t rea! properties9 in the
name o) the de)endants sin#e the on!/ +a/ the de)endants #o!d ha*e
pr#hased these properties +ere thro"h the partnership as the/ had no
other sor#e o) in#ome.

The respondents, in#!din" petitioner herein, in their Ans+er,
,%<-
denied ha*in" )ormed a partnership +ith Antonieta in %74=. The/
#!aimed that she +as in no position to do so as she +as sti!! in s#hoo! at
that time. Dn )a#t, the pro#eeds o) the !ands the/ partitioned +ere
de*oted to her stdies. The/ a!so a*erred that +hi!e she ma/ ha*e
he!ped in the $sinesses that her o!der sister Con#hita had )ormed +ith
Bena*entra Remoti"e, she +as paid her de sa!ar/. The/ did not den/
the e(isten#e and *a!idit/ o) the GA#.no+!ed"ement o) Parti#ipatin"
Capita!H and in )a#t sed this as e*iden#e to spport their #!aim that
AntonietaCs 5K share +as !imited to the $sinesses enmerated
therein. Eith re"ard to AntonietaCs #!aim in their other #orporations and
$sinesses, the respondents said these sho!d a!so $e !imited to the
nm$er o) her shares as spe#i?ed in the respe#ti*e arti#!es o)
in#orporation. The respondents denied sin" the partnershipCs in#ome to
pr#hase the s$@e#t rea! properties and said that the #erti?#ates o) tit!e
sho!d $e $indin" on her.
,%=-

Drin" the #orse o) the tria! at the RTC, petitioner >ederi#o
0aranti!!a, 0r., +ho +as one o) the ori"ina! de)endants, entered into a
#ompromise a"reement
,%6-
+ith Antonieta 0aranti!!a +herein he spported
AntonietaCs #!aims and asserted that he too +as entit!ed to si( per#ent
8=K9 o) the spposed partnership in the same manner as Antonieta
+as. Be pra/ed )or a )a*ora$!e @d"ment in this +ise:

De)endant >ederi#o 0aranti!!a, 0r., here$/ @oins in
p!aintiACs pra/er )or an a##ontin" )rom the other de)endants,
and the partition o) the properties o) the #o-o+nership and
the de!i*er/ to the p!aintiA and to de)endant >ederi#o
0aranti!!a, 0r. o) their ri"ht)! share o) the assets and properties
in the #o-o+nership.
,%5-


The RTC, in an Order
,%7-
dated Jar#h &<, %77&, appro*ed the 0oint
Jotion to Appro*e Compromise A"reement
,&'-
and on De#em$er %5, %77&,
de#ided in )a*or o) Antonieta, to +it:

EBERE>ORE, premises a$o*e-#onsidered, the Cort
renders @d"ment in )a*or o) the p!aintiA Antonieta 0aranti!!a
and a"ainst de)endants C/nthia Remoti"e, Doroteo 0aranti!!a
and Tomas 0aranti!!a orderin" the !atter:

%. to de!i*er to the p!aintiA her 5K share or its
eFi*a!ent amont on the rea! properties #o*ered $/
TCT Nos. 1<=<<, 115175, 115177 L 11<17<, a!! o)
the Re"istr/ o) Deeds o) :e;on Cit/M TCT Nos.
8%51'19&114%, %4&55& L 47'''684=%<9, a!! o) the
Re"istr/ o) Deeds o) Ri;a!M and TCT No. T-=1'7 o) the
Re"istr/ o) Deeds o) Cota$ato $ased on their present
mar.et *a!eM

&. to de!i*er to the p!aintiA her 5K share or its
eFi*a!ent amont on the Remoti"e A"ro-Dndstria!
Corporation, Jani!a Ath!eti# Spp!/, Dn#., JAS R$$er
Prod#ts, Dn#. and Bendia Re#appin" Corporation
$ased on the shares o) sto#.s present $oo. *a!eM

1. to a##ont )or the assets and in#ome o) the #o-
o+nership and de!i*er to p!aintiA her ri"ht)! share
thereo) eFi*a!ent to 5KM

4. to pa/ p!aintiA, @oint!/ and se*era!!/, the sm
o) P<','''.'' as mora! dama"esM

<. to pa/, @oint!/ and se*era!!/, the sm
o) P<','''.'' as attorne/Cs )eesM and

=. to pa/, @oint!/ and se*era!!/, the #osts o) the sit.
,&%-


Both the petitioner and the respondents appea!ed this de#ision to
the Cort o) Appea!s. The petitioner #!aimed that the RTC Gerred in not
renderin" a #omp!ete @d"ment and orderin" the partition o) the #o-
o+nership and "i*in" to ,him- si( per #entm 8=K9 o) the properties.H
,&&-

Ehi!e the Cort o) Appea!s a"reed to some o) the RTCCs )a#ta!
?ndin"s, it a!so esta$!ished that Antonieta 0aranti!!a +as not part o) the
partnership )ormed in %74=, and that her 5K share +as limite) to the
$sinesses enmerated in the A#.no+!ed"ement o) Parti#ipatin"
Capita!. On 0!/ 1', &''&, the Cort o) Appea!s rendered the herein
#ha!!en"ed de#ision settin" aside the RTCCs de#ision, as )o!!o+s:

WHEREFORE, the de#ision o) the tria! #ort, dated %5
De#em$er %77& is SET ASDDE and a ne+ one is here$/
entered orderin" that:

8%9 a)ter a##ontin", p!aintiA Antonieta 0aranti!!a $e
"i*en her share o) 5K in the assets and pro?ts o)
Jani!a Ath!eti# Spp!/, Remoti"e Tradin" in D!oi!o
Cit/ and Remoti"e Tradin" in Cota$ato Cit/M

8&9 a)ter a##ontin", de)endant >ederi#o 0aranti!!a, 0r.
$e "i*en his share o) =K o) the assets and pro?ts o)
the a$o*e-mentioned enterprisesM and, ho!din" that

819 p!aintiA Antonieta 0aranti!!a is a sto#.ho!der in the
)o!!o+in" #orporations to the e(tent stated in their
Arti#!es o) Dn#orporation:

8a9 Rra! Ban. o) Barota# Ne*o, Dn#.M

8$9 JAS R$$er Prod#ts, Dn#.M

8#9 Jani!a Ath!eti# Spp!/, Dn#.M and

8d9 B. Remoti"e A"ro-Dndstria! De*e!opment Corp.

849 No #osts.
,&1-


The respondents, on A"st &', &''&, ?!ed a Jotion )or Partia!
Re#onsideration $t the Cort o) Appea!s denied this in a
Reso!tion
,&4-
dated Jar#h &%, &''1.

Antonieta 0aranti!!a ?!ed $e)ore this Cort her o+n petition )or
re*ie+ on certiorari
,&<-
dated Septem$er %=, &''&, assai!in" the Cort o)
Appea!sC de#ision on Gsimi!ar "ronds and simi!ar assi"nments o) errors as
this present #aseH
,&=-
$t it +as dismissed on No*em$er &', &''& )or
)ai!re to ?!e the appea! +ithin the re"!ementar/ period o) ?)teen 8%<9
da/s in a##ordan#e +ith Se#tion &, R!e 4< o) the R!es o) Cort.
,&6-

Petitioner ?!ed $e)ore s this petition )or re*ie+ on the so!e "rond
that:

T(E (ONOR$!E CO%RT OF PPE!S SERIO%S!'
ERRED IN NOT R%!IN& T(T PETITIONER FEDERICO
JRNTI!!" JR# IS ENTIT!ED TO SI1 PER CENT%M
2.34 S(RE OF T(E O5NERS(IP OF T(E RE!
PROPERTIES C6%IRED $' T(E OT(ER DEFENDNTS
%SIN& COMMON F%NDS FROM T(E $%SINESSES 5(ERE
(E (D O5NED S%C( S(RE.
,&5-


Petitioner asserts that he +as in a partnership +ith the Remoti"e
sposes, the Deo#ampo sposes, Rosita 0aranti!!a, Ra)ae! 0aranti!!a,
Antonieta 0aranti!!a and :intin 3ismanos, as e*iden#ed $/ the
A#.no+!ed"ement o) Parti#ipatin" Capita! the Remoti"e sposes
e(e#ted in %7<6. Be #ontends that )rom this partnership, se*era! other
#orporations and $sinesses +ere esta$!ished and se*era! rea! properties
+ere a#Fired. Dn this petition, he is essentia!!/ as.in" )or his =K share in
the s$@e#t rea! properties. Be is re!/in" on the A#.no+!ed"ement o)
Parti#ipatin" Capita!, on his o+n testimon/, and Antonieta 0aranti!!aCs
testimon/ to spport this #ontention.

The #ore isse is +hether or not the partnership s$@e#t o) the
A#.no+!ed"ement o) Parti#ipatin" Capita! )nded the s$@e#t rea!
properties. Dn other +ords, +hat is the petitionerCs ri"ht o*er these rea!
propertiesN

Dt is a sett!ed r!e that in a petition )or re*ie+ on certiorari nder
R!e 4< o) the R!es o) Ci*i! Pro#edre, on!/ Festions o) !a+ ma/ $e
raised $/ the parties and passed pon $/ this Cort.
,&7-


A Festion o) !a+ arises +hen there is do$t as to +hat
the !a+ is on a #ertain state o) )a#ts, +hi!e there is a Festion
o) )a#t +hen the do$t arises as to the trth or )a!sit/ o) the
a!!e"ed )a#ts. For a question to be one of law, the same must
not involve an examination of the probative value of the
evidence presented by the litigants or any of them. The
reso!tion o) the isse mst rest so!e!/ on +hat the !a+
pro*ides on the "i*en set o) #ir#mstan#es. On#e it is #!ear
that the isse in*ites a re*ie+ o) the e*iden#e presented, the
Festion posed is one o) )a#t. Ths, the test o) +hether a
Festion is one o) !a+ or o) )a#t is not the appe!!ation "i*en to
s#h Festion $/ the part/ raisin" the sameM rather, it is
+hether the appe!!ate #ort #an determine the isse raised
+ithot re*ie+in" or e*a!atin" the e*iden#e, in +hi#h #ase, it
is a Festion o) !a+M other+ise it is a Festion o) )a#t.
,1'-


Sin#e the Cort o) Appea!s did not )!!/ adopt the )a#ta! ?ndin"s o)
the RTC, this Cort, in reso!*in" the Festions o) !a+ that are no+ in isse,
sha!! !oo. into the )a#ts on!/ in so )ar as the t+o #orts a quo diAered in
their appre#iation thereo).

The RTC )ond that an nre"istered partnership e(isted sin#e %74=
+hi#h +as aOrmed in the %7<6 do#ment, the GA#.no+!ed"ement o)
Parti#ipatin" Capita!.H The RTC sed this as its $asis )or "i*in" Antonieta
0aranti!!a an 5K share in the three $sinesses !isted therein and in the
other $sinesses and rea! properties o) the respondents as the/ had
spposed!/ a#Fired these thro"h )nds )rom the partnership.
,1%-


The Cort o) Appea!s, on the other hand, a"reed +ith the RTC as to
AntonietaCs 5K share in the $siness enmerated in the
A#.no+!ed"ement o) Parti#ipatin" Capita!, $t not as to her share in the
other #orporations and rea! properties. The Cort o) Appea!s r!ed that
AntonietaCs #!aim o) 5K is $ased on the GA#.no+!ed"ement o)
Parti#ipatin" Capita!,H a d!/ notari;ed do#ment +hi#h +as spe#i?# as to
the s$@e#t o) its #o*era"e. Ben#e, there +as no reason to pattern her
share in the other #orporations )rom her share in the partnershipCs
$sinesses. The Cort o) Appea!s a!so said that her #!aim in the
respondentsC rea! properties +as more Gpre#ariosH as these +ere a!!
#o*ered $/ #erti?#ates o) tit!e +hi#h ser*ed as the $est e*iden#e as to a!!
the matters #ontained therein.
,1&-
Sin#e petitionerCs #!aim +as essentia!!/
the same as AntonietaCs, the Cort o) Appea!s a!so r!ed that petitioner $e
"i*en his =K share in the same $sinesses !isted in the A#.no+!ed"ement
o) Parti#ipatin" Capita!.

>a#ta! ?ndin"s o) the tria! #ort, +hen #on?rmed $/ the Cort o)
Appea!s, are ?na! and #on#!si*e e(#ept in the )o!!o+in" #ases: 8%9 +hen
the in)eren#e made is mani)est!/ mista.en, a$srd or impossi$!eM 8&9
+hen there is a "ra*e a$se o) dis#retionM 819 +hen the ?ndin" is
"ronded entire!/ on spe#!ations, srmises or #on@e#tresM 849 +hen the
@d"ment o) the Cort o) Appea!s is $ased on misapprehension o) )a#tsM
8<9 +hen the ?ndin"s o) )a#t are #onPi#tin"M 8=9 +hen the Cort o)
Appea!s, in ma.in" its ?ndin"s, +ent $e/ond the isses o) the #ase and
the same is #ontrar/ to the admissions o) $oth appe!!ant and appe!!eeM 869
+hen the ?ndin"s o) the Cort o) Appea!s are #ontrar/ to those o) the tria!
#ortM 859 +hen the ?ndin"s o) )a#t are #on#!sions +ithot #itation o)
spe#i?# e*iden#e on +hi#h the/ are $asedM 879 +hen the Cort o) Appea!s
mani)est!/ o*er!oo.ed #ertain re!e*ant )a#ts not dispted $/ the parties
and +hi#h, i) proper!/ #onsidered, +o!d @sti)/ a diAerent #on#!sionM and
8%'9 +hen the ?ndin"s o) )a#t o) the Cort o) Appea!s are premised on the
a$sen#e o) e*iden#e and are #ontradi#ted $/ the e*iden#e on re#ord.
,11-

Dn this #ase, +e ?nd no error in the r!in" o) the Cort o) Appea!s.

Both the petitioner and Antonieta 0aranti!!a #hara#teri;e their
re!ationship +ith the respondents as a #o-o+nership, $t in the same
$reath, assert that a *er$a! partnership +as )ormed in %74= and +as
aOrmed in the %7<6 A#.no+!ed"ement o) Parti#ipatin" Capita!.

There is a #o-o+nership +hen an ndi*ided thin" or ri"ht $e!on"s to
diAerent persons.
,14-
Dt is a partnership +hen t+o or more persons $ind
themse!*es to #ontri$te mone/, propert/, or indstr/ to a #ommon )nd,
+ith the intention o) di*idin" the pro?ts amon" themse!*es.
,1<-
The Cort,
in Pascual v. The Commissioner of nternal !evenue,
,1=-
Foted the
#on#rrin" opinion o) Jr. 0sti#e An"e!o Batista in "vangelista v. The
Collector of nternal !evenue
[37]
to )rther e!#idate on the distin#tions
$et+een a #o-o+nership and a partnership, to +it:

D +ish ho+e*er to ma.e the )o!!o+in"
o$ser*ation: Arti#!e %6=7 o) the ne+ Ci*i! Code !a/s do+n the
r!e )or determinin" +hen a transa#tion sho!d $e deemed a
partnership or a #o-o+nership. Said arti#!e para"raphs & and
1, pro*idesM

8&9 Co-o+nership or #o-possession does not itse!)
esta$!ish a partnership, +hether s#h #o-o+ners or #o-
possessors do or do not share an/ pro?ts made $/ the se o)
the propert/M

819 The sharin" o) "ross retrns does not o) itse!)
esta$!ish a partnership, +hether or not the persons sharin"
them ha*e a @oint or #ommon ri"ht or interest in an/ propert/
)rom +hi#h the retrns are deri*edM

From the above it appears that the fact that those who
agree to form a co# ownership share or do not share any
pro$ts made by the use of the property held in common does
not convert their venture into a partnership. %r the sharing of
the gross returns does not of itself establish a partnership
whether or not the persons sharing therein have a &oint or
common right or interest in the property. This only means
that, aside from the circumstance of pro$t, the presence of
other elements constituting partnership is necessary, such as
the clear intent to form a partnership, the existence of a
&uridical personality di'erent from that of the individual
partners, and the freedom to transfer or assign any interest in
the property by one with the consent of the others.

t is evident that an isolated transaction whereby two or
more persons contribute funds to buy certain real estate for
pro$t in the absence of other circumstances showing a
contrary intention cannot be considered a partnership.

Persons +ho #ontri$te propert/ or )nds )or a #ommon
enterprise and a"ree to share the "ross retrns o) that
enterprise in proportion to their #ontri$tion, $t +ho
se*era!!/ retain the tit!e to their respe#ti*e #ontri$tion, are
not there$/ rendered partners. The/ ha*e no #ommon sto#.
or #apita!, and no #ommnit/ o) interest as prin#ipa!
proprietors in the $siness itse!) +hi#h the pro#eeds deri*ed.

A @oint pr#hase o) !and, $/ t+o, does not #onstitte a
#o-partnership in respe#t theretoM nor does an a"reement to
share the pro?ts and !osses on the sa!e o) !and #reate a
partnershipM the parties are on!/ tenants in #ommon.

Ehere p!aintiA, his $rother, and another a"reed to
$e#ome o+ners o) a sin"!e tra#t o) rea!t/, ho!din" as tenants
in #ommon, and to di*ide the pro?ts o) disposin" o) it, the
$rother and the other not $ein" entit!ed to share in p!aintiACs
#ommission, no partnership e(isted as $et+een the three
parties, +hate*er their re!ation ma/ ha*e $een as to third
parties.

n order to constitute a partnership inter sese there
must be( )a* +n intent to form the same, )b* generally
participating in both pro$ts and losses, )c* and such a
community of interest, as far as third persons are concerned
as enables each party to ma-e contract, manage the
business, and dispose of the whole property. x x x.

The #ommon o+nership o) propert/ does not itse!)
#reate a partnership $et+een the o+ners, tho"h the/ ma/
se it )or the prpose o) ma.in" "ainsM and the/ ma/, +ithot
$e#omin" partners, a"ree amon" themse!*es as to the
mana"ement, and se o) s#h propert/ and the app!i#ation o)
the pro#eeds there)rom.
,15-
8Citations omitted.9


Qnder Arti#!e %6=6 o) the Ci*i! Code, there are t+o essentia!
e!ements in a #ontra#t o) partnership: )a* an agreement to contribute
money, property or industry to a common fund, and )b* intent to divide
the pro$ts among the contracting parties. The ?rst e!ement is
ndo$ted!/ present in the #ase at $ar, )or, admitted!/, a!! the parties in
this #ase ha*e a"reed to, and did, #ontri$te mone/ and propert/ to a
#ommon )nd. .ence, the issue narrows down to their intent in acting as
they did.
,17-
Dt is not denied that a!! the parties in this #ase ha*e a"reed to
#ontri$te #apita! to a #ommon )nd to $e a$!e to !ater on share its
pro?ts. The/ ha*e admitted this )a#t, a"reed to its *era#it/, and e*en
s$mitted one #ommon do#mentar/ e*iden#e to pro*e s#h partnership
- the A#.no+!ed"ement o) Parti#ipatin" Capita!.

As this #ase re*o!*es arond the !e"a! eAe#ts o) the
A#.no+!ed"ement o) Parti#ipatin" Capita!, it +o!d $e instr#ti*e to
e(amine the pertinent portions o) this do#ment:

C7NO5!ED&EMENT OF
PRTICIPTIN& CPIT!

RNOE ALL JEN BS TBESE PRESENTS:

That +e, the sposes Bena*entra Remoti"e and
Con#hita 0aranti!!a de Remoti"e, $oth o) !e"a! a"e, >i!ipinos
and residents o) Lo/o!a Bei"hts, :e;on Cit/, P.D. here$/
state:

That the Jani!a Ath!eti# Spp!/ at 6%& Raon, Jani!a,
the Remoti"e Tradin" o) Ca!!e Rea!, D!oi!o Cit/ and the
Remoti"e Tradin", Cota$ato Bran#h, Cota$ato, P.D., a!! dea!in"
in ath!eti# "oods and eFipments, and "enera! mer#handise
are re#orded in their respe#ti*e $oo.s +ith Bena*entra
Remoti"e as the re"istered o+ner and are $ein" operated $/
them as s#h:

That the/ are not the on!/ o+ners o) the #apita! o) the
three esta$!ishments and their parti#ipation in the #apita! o)
the three esta$!ishments to"ether +ith the other #o-o+ners as
o) the /ear %7<& are stated as )o!!o+s:

%. Bena*entra Remoti"e 8TEENTS-
>D3E P&<,'''.''
TBOQSAND9
&. Con#hita 0aranti!!a de Remoti"e 8TEENTS->D3E
TBOQSAND9T &<,'''.''

1. 3i#en#io Deo#ampo 8>D>TEEN TBOQSAND9
TT %<,'''.''
4. Rosita 0. Deo#ampo 8>D>TEEN TBOQSAND9
T.... %<,'''.''
<. Antonieta 0aranti!!a 8ED2BT TBOQSAND9
TTT.. 5,'''.''
=. Ra)ae! 0aranti!!a 8SDU TBOQSAND9
TTTTT.. ... =,'''.''
6. >ederi#o 0aranti!!a, 0r. 8>D3E TBOQSAND9
TTT.. <,'''.''
5. :intin 3ismanos 8TEO TBOQSAND9
TTTT... &,'''.''

That aside )rom the persons mentioned in the ne(t
pre#edin" para"raph, no other person has an/ interest in the
a$o*e-mentioned three esta$!ishments.

DN EDTNESS EBEREO>, the/ si"n this instrment in
the Cit/ o) Jani!a, P.D., this &7
th
da/ o) Apri!, %7<6.


,S"d.-
BQENA3ENTQRA REJOTD2QE

,S"d.-
CONCBDTA 0ARANTDLLA DE
REJOTD2QE
,4'-


The A#.no+!ed"ement o) Parti#ipatin" Capita! is a d!/ notari;ed
do#ment *o!ntari!/ e(e#ted $/ Con#hita 0aranti!!a-Remoti"e and
Bena*entra Remoti"e in %7<6. Petitioner does not dispte its #ontents
and is a#ta!!/ re!/in" on it to pro*e his parti#ipation in the
partnership. Arti#!e %676 o) the Ci*i! Code pro*ides:

rt# *898# The losses an) pro:ts shall be
)istribute) in conformit; <ith the a=reement# D) on!/
the share o) ea#h partner in the pro?ts has $een a"reed pon,
the share o) ea#h in the !osses sha!! $e in the same
proportion.

In the absence of stipulation" the share of each
partner in the pro:ts an) losses shall be in proportion
to <hat he ma; ha>e contribute)" $t the indstria!
partner sha!! not $e !ia$!e )or the !osses. As )or the pro?ts,
the indstria! partner sha!! re#ei*e s#h share as ma/ $e @st
and eFita$!e nder the #ir#mstan#es. D) $esides his
ser*i#es he has #ontri$ted #apita!, he sha!! a!so re#ei*e a
share in the pro?ts in proportion to his #apita!. 8Emphases
spp!ied.9


Dt is #!ear )rom the )ore"oin" that a partner is entit!ed on!/ to his
share as a"reed pon, or in the a$sen#e o) an/ s#h stip!ations, then to
his share in proportion to his #ontri$tion to the partnership. The
petitioner himse!) #!aims his share to $e =K, as stated in the
A#.no+!ed"ement o) Parti#ipatin" Capita!. Bo+e*er, petitioner )ai!s to
rea!i;e that this do#ment spe#i?#a!!/ enmerated the $sinesses
#o*ered $/ the partnership: Jani!a Ath!eti# Spp!/, Remoti"e Tradin" in
D!oi!o Cit/ and Remoti"e Tradin" in Cota$ato Cit/. Sin#e there +as a #!ear
a"reement that the #apita! the partners #ontri$ted +ent to the three
$sinesses, then there is no reason to de*iate )rom s#h a"reement and
"o $e/ond the stip!ations in the do#ment. Therefore" the Court of
ppeals )i) not err in limitin= petitioner?s share to the assets of
the businesses enumerate) in the c@no<le)=ement of
Participatin= Capital#

Dn /illareal v. !amire0,
,4%-
the Cort he!d that sin#e a partnership is a
separate @ridi#a! entit/, the shares to $e paid ot to the partners is
ne#essari!/ !imited on!/ to its tota! resor#es, to +it:

Sin#e it is the partnership, as a separate and distin#t
entit/, that mst re)nd the shares o) the partners, the
amont to $e re)nded is ne#essari!/ !imited to its tota!
resor#es. Dn other +ords, it #an on!/ pa/ ot +hat it has in
its #oAers, +hi#h #onsists o) a!! its assets. Bo+e*er, $e)ore
the partners #an $e paid their shares, the #reditors o) the
partnership mst ?rst $e #ompensated. A)ter a!! the #reditors
ha*e $een paid, +hate*er is !e)t o) the partnership assets
$e#omes a*ai!a$!e )or the pa/ment o) the partnersC shares.
,4&-


There is no e*iden#e that the s$@e#t rea! properties +ere assets o)
the partnership re)erred to in the A#.no+!ed"ement o) Parti#ipatin"
Capita!.

The petitioner )rther asserts that he is entit!ed to respondentsC
properties $ased on the #on#ept o) trst. Be #!aims that sin#e the s$@e#t
rea! properties +ere pr#hased sin" )nds o) the partnership, +herein he
has a =K share, then G!a+ and eFit/ mandates that he sho!d $e
#onsidered as a #o-o+ner o) those properties in s#h
proportion.H
,41-
Dn Pigao v. !abanillo,
,44-
this Cort e(p!ained the #on#ept o)
trsts, to +it:

E(press trsts are #reated $/ the intention o) the trstor or o)
the parties, +hi!e imp!ied trsts #ome into $ein" $/ operation
o) !a+, either thro"h imp!i#ation o) an intention to #reate a
trst as a matter o) !a+ or thro"h the imposition o) the trst
irrespe#ti*e o), and e*en #ontrar/ to, an/ s#h intention. Dn
trn, imp!ied trsts are either res!tin" or #onstr#ti*e trsts.
Res!tin" trsts are $ased on the eFita$!e do#trine that
*a!a$!e #onsideration and not !e"a! tit!e determines the
eFita$!e tit!e or interest and are presmed a!+a/s to ha*e
$een #ontemp!ated $/ the parties. The/ arise )rom the natre
or #ir#mstan#es o) the #onsideration in*o!*ed in a
transa#tion +here$/ one person there$/ $e#omes in*ested
+ith !e"a! tit!e $t is o$!i"ated in eFit/ to ho!d his !e"a! tit!e
)or the $ene?t o) another.
,4<-


On pro*in" the e(isten#e o) a trst, this Cort he!d that:

Respondent has presented on!/ $are assertions that a
trst +as #reated. Notin" the need to pro*e the e(isten#e o)
a trst, this Cort has he!d ths:

GAs a r!e, the $rden o) pro*in" the
e(isten#e o) a trst is on the part/ assertin" its
e(isten#e, and s#h proo) mst $e #!ear and
satis)a#tori!/ sho+ the e(isten#e o) the trst and
its e!ements. Ehi!e imp!ied trsts ma/ $e pro*ed
$/ ora! e*iden#e, the e*iden#e mst $e
trst+orth/ and re#ei*ed $/ the #orts +ith
e(treme #ation, and sho!d not $e made to rest
on !oose, eFi*o#a! or inde?nite de#!arations.
Trst+orth/ e*iden#e is reFired $e#ase ora!
e*iden#e #an easi!/ $e )a$ri#ated.H
,4=-


The petitioner has )ai!ed to pro*e that there e(ists a trst o*er the
s$@e#t rea! properties. Aside )rom his $are a!!e"ations, he has )ai!ed to
sho+ that the respondents sed the partnershipCs mone/ to pr#hase the
said properties. E*en assmin" arguendo that some partnership in#ome
+as sed to a#Fire these properties, the petitioner sho!d ha*e
s##ess)!!/ sho+n that these )nds #ame )rom his share in the
partnership pro?ts. A)ter a!!, $/ his o+n admission, and as stated in the
A#.no+!ed"ement o) Parti#ipatin" Capita!, he o+ned a mere =K eFit/ in
the partnership.

Dn essen#e, the petitioner is #!aimin" his =K share in the s$@e#t
rea! properties, $/ re!/in" on his o+n se!)-ser*in" testimon/ and the
eFa!!/ $iased testimon/ o) Antonieta 0aranti!!a. Petitioner has not
presented e*iden#e, other than these ns$stantiated testimonies, to
pro*e that the respondents did not ha*e the means to )nd their other
$sinesses and rea! properties +ithot the partnershipCs in#ome. On the
other hand, the respondents ha*e not on!/, $/ testimonia! e*iden#e,
pro*en their #ase a"ainst the petitioner, $t ha*e a!so presented
sO#ient do#mentar/ e*iden#e to s$stantiate their #!aims, a!!e"ations
and de)enses. The/ presented preponderant proo) on ho+ the/ a#Fired
and )nded s#h properties in addition to ta( re#eipts and ta(
de#!arations.
,46-
Dt has $een he!d that G+hi!e ta( de#!arations and rea!t/
ta( re#eipts do not #on#!si*e!/ pro*e o+nership, the/ ma/ #onstitte
stron" e*iden#e o) o+nership +hen a##ompanied $/ possession )or a
period sO#ient )or pres#ription.H
,45-
Joreo*er, it is a r!e in this
@risdi#tion that testimonia! e*iden#e #annot pre*ai! o*er do#mentar/
e*iden#e.
,47-
This Cort had on se*era! o##asions, e(pressed or
disappro*a! on sin" mere se!)-ser*in" testimonies to spport oneCs
#!aim. Dn %campo v. %campo,
,<'-
a #ase on partition o) a #o-o+nership, +e
he!d that:

Petitioners assert that their #!aim o) #o-o+nership o) the
propert/ +as sO#ient!/ pro*ed $/ their +itnesses -- Lisa
O#ampo-L!orin and Je!ita O#ampo. Ee disa"ree. Their
testimonies #annot pre*ai! o*er the arra/ o) do#ments
presented $/ Be!en. A #!aim o) o+nership #annot $e $ased
simp!/ on the testimonies o) +itnessesM m#h !ess on those o)
interested parties, se!)-ser*in" as the/ are.
,<%-


Dt is tre that a #erti?#ate o) tit!e is mere!/ an e*iden#e o) o+nership
or tit!e o*er the parti#!ar propert/ des#ri$ed therein. Re"istration in the
Torrens s/stem does not #reate or *est tit!e as re"istration is not a mode
o) a#Firin" o+nershipM hen#e, this #annot depri*e an a""rie*ed part/ o)
a remed/ in !a+.
,<&-
Bo+e*er, petitioner asserts o+nership o*er portions
o) the s$@e#t rea! properties on the stren"th o) his o+n admissions and
on the testimon/ o) Antonieta 0aranti!!a. As he!d $/ this Cort in !epublic
of the Philippines v. %r$nada, 1r.
,<1-
:

Dndeed, a Torrens tit!e is "enera!!/ #on#!si*e e*iden#e
o) o+nership o) the !and re)erred to therein, and a stron"
presmption e(ists that a Torrens tit!e +as re"!ar!/ issed
and *a!id. A Torrens tit!e is in#ontro*erti$!e a"ainst
an/ informacion possessoria, o) other tit!e e(istin" prior to the
issan#e thereo) not annotated on the Torrens tit!e.
Joreo*er, persons dea!in" +ith propert/ #o*ered $/ a Torrens
#erti?#ate o) tit!e are not reFired to "o $e/ond +hat appears
on its )a#e.
,<4-


As +e ha*e sett!ed that this a#tion ne*er rea!!/ +as )or partition o) a
#o-o+nership, to permit petitionerCs #!aim on these properties is to a!!o+ a
#o!!atera!, indire#t atta#. on respondentsC admitted tit!es. Dn the +ords o)
the Cort o) Appea!s, Gs#h e*iden#e #annot o*erpo+er the
#on#!si*eness o) these #erti?#ates o) tit!e, more so sin#e p!aintiACs
,petitionerCs- #!aims amont to a #o!!atera! atta#., +hi#h is prohi$ited
nder Se#tion 45 o) Presidentia! De#ree No. %<&7, the Propert/
Re"istration De#ree.H
,<<-


SEC. 45. Certi$cate not sub&ect to collateral attac-. V A
#erti?#ate o) tit!e sha!! not $e s$@e#t to #o!!atera! atta#.. Dt
#annot $e a!tered, modi?ed, or #an#e!!ed e(#ept in a dire#t
pro#eedin" in a##ordan#e +ith !a+.


This Cort has deemed an a#tion or pro#eedin" to $e Gan atta#. on
a tit!e +hen its o$@e#ti*e is to n!!i)/ the tit!e, there$/ #ha!!en"in" the
@d"ment prsant to +hi#h the tit!e +as de#reed.H
,<=-
Dn +guilar v. +lfaro,
,<6-
this Cort )rther distin"ished $et+een a dire#t and an indire#t or
#o!!atera! atta#., as )o!!o+s:

A #o!!atera! atta#. transpires +hen, in another a#tion to
o$tain a diAerent re!ie) and as an in#ident to the present
a#tion, an atta#. is made a"ainst the @d"ment "rantin" the
tit!e. This manner o) atta#. is to $e distin"ished )rom a dire#t
atta#. a"ainst a @d"ment "rantin" the tit!e, thro"h an a#tion
+hose main o$@e#ti*e is to ann!, set aside, or en@oin the
en)or#ement o) s#h @d"ment i) not /et imp!emented, or to
see. re#o*er/ i) the propert/ tit!ed nder the @d"ment had
$een disposed o). ( ( (.


PetitionerCs on!/ pie#e o) do#mentar/ e*iden#e is the
A#.no+!ed"ement o) Parti#ipatin" Capita!, +hi#h as dis#ssed a$o*e,
)ai!ed to pro*e that the rea! properties he is #!aimin" #o-o+nership o)
+ere a#Fired ot o) the pro#eeds o) the $sinesses #o*ered $/ s#h
do#ment. There)ore, petitionerCs theor/ has no )a#ta! or !e"a! !e" to
stand on.

5(EREFORE" the Petition is here$/ DENIED and the De#ision o)
the Cort o) Appea!s in CA-2.R. C3 No. 4'556, dated 0!/ 1', &''&
is FFIRMED.

SO ORDERED.