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Ernest David et. al vs. Cristito Malay et. al, GR No.

132644, November 19,1999

- Andres Adona and Leoncia Abad were blessed with five children among them being
Carmen Adona.
-Carmen married Filomeno Malay; three children namely: Cristito, Nora and Dionisio
-Following the death of Leoncia, Andres cohabited with Maria Espiritu
- Andres and Maria begot two children, one of them is Esperanza ( represented by her
heirs all surnamed David)
-Maria likewise had a child by her previous marriage- Fulgencio Lemque
-During his lifetime, Andres filed for a homestead patent over a parcel of agricultural
landlocated at Dirita, Iba , Zambales containing an area of 22.5776 hectares
-When Andres died, Maria was able to obtained an OCT over the land in her name
-After Maria had died in 1945, the children, as well as the descendants of of Andres
by his first marriage, continued to be in peaceful and quiet possession of the subject
- Sometime in 1989, petitioners executed a deed of "Extrajudicial Settlement with
Sale" in favor of Ms. Venancia Ungson, however, the sale was rescinded for failure on
the part of the latter to pay in full the consideration.
-Private respondents contested the sale claiming that they were the true owners of the
-Subsequently, petitioners executed another Extrajudicial Settlement with Sale dated
December 15,1990.
- Petitioners divided the land among themselves and sold their respective shares to
their co petitioners, Antonio de Ubago Jr, Milagros de Ubago-Umali, Felisa Guballo
De Ubago, Vanessa De Ubago-Umali, and Marietta De Ubago-Tan ang Joseph
Guballa De Ubago.
-TCT was issued in favor the De Ubagos
-On December 7,1192, private respondents filed a complaint for Annulment of Sale
with Restraining Order, Injunction and Damages against petitioners. They averred that
the disputed land sold by the heirs of Maria was the subject of a homestead patent and
the OCT was fraudulently issued to Maria upon her false representation that she was
the widow of Andres
- In 25 July 1995, the TC dismissed the complaint for lack of cause of action and on
ground of prescription
-On appeal, the CA directed the cancellation of TCT No. T-42320 in the name of de
Ubagos and the reconveyance of the property to the estate of Andres Adona
-hence, the petitioners appeal to the SC.
Issue:Whether or not the complaint for reconveyance was timely filed in accordance
with Section 4, Rule 74 of the Rules of Court?
Held: YES. Section 4, Rule 74 states that: "Liability of distributees and estate. If it
shall appear at any time within (2) years after settlement and distribution of an estate
in accordance with the provisions of either of the first two sections of this rule, that an
heir or other person has been unduly deprived of his lawful participation in the estate,
such heir or such other person may compel the settlement of the estate i the courts in
the manner hereinafter provided for the purpose of satisfying such lawful

- The record shows that the Extrajudicial Settlement of Estate with Sale was executed
on December 15,1990 and plaintiff's complaint was filed on December 7,1990.
Hence, the two year period has not yet elapsed.