Baluyut v.

Pano (1976)

Facts:
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Sotero Baluyut died, leaving an estate allegedly valued at not less than P2M. A few weeks
later, his nephew, Alfredo,f i l e d i n C F I Q u e z o n C i t y a v e r i f i e d p e t i t i o n f o r l e t t e r s
o f administration, alleging that his widow, Encarnacion, was m e n t a l l y i n c a p a b l e o f
a c t i n g a s a d m i n i s t r a t r i x . H e h a d surmised that Sotero had executed a will, and prayed that
heb e appointed regular administrator but in the meantime, s p e c i a l
a d m i n i s t r a t o r . C F I a p p o i n t e d h i s s p e c i a l administrator with P100k bond.
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Encarnacion alleged, in her verified opposition, that she wasunaware that Sotero executed a will. She
said the allegationt h a t s h e w a s m e n t a l l y i n c a p a c i t a t e d w a s l i b e l o u s , a n d w a n t e d t o
b e a p p o i n t e d a d m i n i s t r a t r i x . C F I c a n c e l l e d Alfredo’s appointment, and after asking a
series of questionsto Encarnacion while she was on the witness stand, found her “healthy and
mentally qualified.”
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Alfredo filed a motion for reconsideration, and the CFIappointed him and Jose Espino as special
administrators.E s p i n o w a s f o r m e r g o v e r n o r o f N u e v a Vi z c a y a a n d a n alleged
acknowledged natural child of Sotero.
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Encarnacion wanted Espino to be appointed administrator should she not be appointed
administratrix, but she filed anurgent motion to be appointed administratrix. She said that Alfredo had
no more interest in the estate because as amere collateral relative, he was excluded by Espino
andother supposed descendants. Alfredo opposed, saying thatE s p i n o h a d o t h e r p a r e n t s ,
and that Encarnacion wasdeclared incompetent by the Juvenile and
DomesticR e l a t i o n s Court of QC in a special proceeding
f o r guardianship.
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At the hearing of Encarnacion’s urgent motion, no oral andd o c u m e n t a r y e v i d e n c e w a s
p r e s e n t e d . S h e w a s m e r e l y asked questions, which she was able to answer. She
wasappointed regular administratrix, the court convinced of her capacity and that her “sufficient
understanding” justified her appointment. She was issued letters of administration.
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Alfredo filed a certiorari case, and the court issued ar e s t r a i n i n g o r d e r e n j o i n i n g
Encarnacion and the Espinospouses and Jude Pano from enforcing the order
a n d disposing of the funds or assets of the estate. Encarnacions a i d t h a t A l f r e d o o n l y
i n s t i t u t e d t h e a d m i n i s t r a t i o n proceeding after he had failed to get from her a
check for P500k belonging to Sotero’s estate, and that he grossly m i s r e p r e s e n t e d t h a t
s h e w a s m e n t a l l y i n c o m p e t e n t ; t h e findings of the Juvenile and Domestic Relations Court
wereissued in a blitzkrieg manner because it was based on thereport of a Dr. Lapuz, filed
one day before the order was i s s u e d ; a n d b e s i d e s , i t ’s n o t t h e J u v e n i l e a n d
D o m e s t i c Relations Court which should decide her competency to actas administratrix.

Issue:
Wa s E n c a r n a c i o n ’s a p p o i n t m e n t a s a d m i n i s t r a t r i x proper? NO.

Held:
While the lower court was correct in assuming that she, as thesurviving spouse, enjoyed preference in
the granting of lettersof administration, it does not follow that she should be namedadministratrix
without conducting a full-dress hearing on her competency to discharge that trust. A hearing has
to be held in order to ascertain fitness to acta s e x e c u t o r, e v e n i f a p e r s o n h a s b e e n
d e s i g n a t e d a s t h e executor in a will. Such designation is not binding on the courtand does not
automatically entitle him to the issuance of letterstestamentary. He might have been fit to act as
executor whenthe will was executed but supervening circumstances might have rendered him
unfit for that position.In this case, the court merely interrogated her in order tosatisfy itself
on her mental capacity. It did not give Alfredo a chance to contest her qualifications. He was the
one who hadraised the issue as to her competency. The probate court hadwrongly assumed that he
had no interest in the estate as, it has now turned out, he is one of the legatees named in the
will.The proceeding in the lower court must be converted into atestamentary proceeding. After the
will is probated, the prior letters of administration should be revoked and proceedings for the
issuance of letters testamentary or of administration under the will should be conducted. It is imperative
that a hearing beheld to determine Encarnacion’s fitness to act as executrix or administratrix.
Persons questioning her capacity should be g i v e n a n a d e q u a t e o p p o r t u n i t y t o b e
h e a r d a n d t o p r e s e n t evidence.The lower court departed from the usual course of
probatep r o c e d u r e in summarily appointing Mrs. Baluyut
a s a d m i n i s t r a t r i x o n t h e a s s u m p t i o n t h a t A l f r e d o w a s n o t a n interested
party.D o c t r i n e / s : B e i n g n a m e d e x e c u t o r i n a w i l l d o e s n o t automatically grant
letters testamentary or of administrationt o s u c h p e r s o n s a s s u c h i s n o t b i n d i n g o n t h e
court. A hearing must be held to determine the competence of
theadministrator/administratrix or executor/executrix to performt h e i r d u t i e s , a n d t h o s e w h o
oppose such must be givenadequate opportunity to be heard and to present
t h e i r evidence. Other courts’ findings on persons’ competence isalso not binding on the probate
court.Dispositive: Order appointing Encarnacion as administratrixis SET ASIDE, letters of
administration issued to her are CANCELLED, and the probate court is directed to
conductfurther proceedings.
Digested by: Feliciano