B2022 REPORTS ANNOTATED
Mindanao Development Authority v CA
I. Recit-ready summary
Ang Bansing owns a tract of land, which he sold to Juan Cruz. In
their Deed of Sale, it stated that “I hereby agree to work for the titling of
the entire area of my land under my own expense, and the expenses for
the titling of the portion sold to me shall be under the expenses of the said
Juan Cruz Yap Chuy.”
After a cadastral survey of the land was done, Cruz sold it to the
Commonwealth of the Philippines. He also executed a surety with 2
others in order to guarantee Cruz’ absolute title over the land. After the
cadastral survey was approved, the Original Certificate Title was then
given to Bansing, who kept selling the properties to other people. He also
had the TCTs issued in the name of the people he sold the land to. At this
time, Juan Cruz sold Lot 1846-C even though Bansing wasn’t able to
obtain the title for such lot yet so the title remained with Bansing when it
was issued.
President of the Philippines issued Proclamation No. 459,
transferring ownership of certain parcels of land situated in Sasa, Davao
City, to the Mindanao Development Authority now Southern Philippines
Development Administration (MDA). Lot 1846-C was among the parcels
of land transferred to Mindanao Development Authority. MDA was
insisting that Bansing was the trustee of Juan Cruz, based on their Deed of
Sale and MDA wanted Bansing to surrender the OCT, but Bansing
refused.
WON Bansing was a trustee. SC held that no, he wasn’t. MDA
cannot rely on the stipulation (stated above) as the basis for their claim
that Bansing was the trustee of Cruz. The stipulation is nothing but a
condition that Bansing will pay the expenses for registering the land while
Cruz will be the one to pay for the registration of the land sold to him.
There is no obligation created that Bansing will hold the property in trust
for Cruz. Thus, no express trust was created.
II. Facts of the case
Ang Bansing, owner of a 300,000 sq. m. tract of land in Davao. He
sold a portion of it, with an area of 5 hectares to Juan Cruz Yap Chuy (Juan
G.R. NO: L-49087
ARTICLE; TOPIC OF CASE: Express Trusts ; essential elements
April 5, 1982
Mindanao Development Authority v CA
Cruz). In the deed of sale, it states that “I hereby agree to work for the
titling of the entire area of my land under my own expense, and the
expenses for the titling of the portion sold to me shall be under the expenses
of the said Juan Cruz Yap Chuy.”
After the survey of the land which was designated as Lot 664-B, Psd-
1638, it was subdivided into 5 more lots, a portion of which is sold to Juan
Cruz. This lot was designated as was designated as Lot 664B-3.
Later on, a cadastral survey was made, and Lot 664B-3 was designated
as Lot 1846 of the Davao Cadastre. Thus, Juan Cruz sold lot 1846-C to the
Commonwealth of the Philippines for around P6,347.50. On the same day,
Cruz and sureties, C.B. Cam and Miguel Lansona, executed a surety bond
in favour of the Commonwealth to guarantee Cruz’ absolute title over the
land. At this time, Juan Cruz sold Lot 1846-C even though Bansing wasn’t
able to obtain the title for such lot yet so the title remained with Bansing
when it was issued.
On July 10, 1940, the cadastral survey was approved. On March 7,
1941, the Original Certificate of Title No. 26 was issued to Bansing. On the
same day, Ang Bansing sold lot 1846-A (Lot 664-B-1) to Juan Cruz and
TCT No. 1784 was issued to him. TCT No. 1785 was issued in the name of
Ang Bansing for the remaining lots (Lots 1846-B, 1846-C, 1846-D, and
1846-E).
On March 31, 1941, Bansing sold Lot 1846-A to Juan Cruz and TCT
1783 was cancelled. Ang Bansing sold two subdivision lots of Lot 1846-B
(namely Lot 1846-B-2-C and Lot 1846-B-1) to Vedasto Corcuera
(Corcuera). Furthermore, the following lots were also sold by Ang Bansing
to Juan Cruz (Lot 1848-A, Lot 1846-B-A,Lot 1848-B-2-B and 1848-B-2-D,
which were all subdivided portions of lot 1846-B).
Thus, at this point, the only lots that remained in Bansing’s name were
Lot 1846-C, Lot 1846-D, and Lot 1846-E under TCT No. 2601. But since
Bansing sold Lot 1846-D to Corcuera, thus TCT 2601 was cancelled.
On February 25, 1965, the President of the Philippines issued
Proclamation No. 459, transferring ownership of certain parcels of land
situated in Sasa, Davao City, to the Mindanao Development Authority now
Southern Philippines Development Administration (MDA) subject to
PONENTE: Concepcion, Jr.
DIGEST MAKER: Alec
 B2022 REPORTS ANNOTATED April 5, 1982
Mindanao Development Authority v CA Mindanao Development Authority v CA

private rights, if any. Lot 1846-C was among the parcels of land transferred
to Mindanao Development Authority.
Atty. Bisnar, the counsel for MDA, wrote Ang Bansing to request the
him to surrender the Owner’s duplicate copy for TCT No. 2601 so that Lot-
1846-C can be formally transferred already to MDA. Bansing refused.
registering the land while Cruz will be the one to pay for the registration of
the land sold to him. There is no obligation created that Bansing will hold
the property in trust for Cruz.
Thus, there is no express trust created. A trust must be clear, satisfactory
and convicing. It shouln’t be based on vague and uncertain evidence, or on
loose, equivocal or indefinite declarations.

III. Issue/s SC held that even if an express trust was created, Bansing has repudiated
the trust and MDA didn’t take any action until after 23 years. The demand
WON there was an express trust between Ang Bansing and Juan Cruz was made before July 4, 1946 when the Commonwealth Government was
NO dismantled and the Republic was created. This is because the demand was
made for the Commonwealth Government.
IV. Ratio/Legal Basis
V. Disposition
EXPRESS TRUST
Express trusts are either expressed or implied. The former is created by the WHEREFORE, the petition should be, as it is hereby, DENIED. No
intention of the trustor or of the parties. While the latter comes into being costs.
through the operation of the law. The following are its requirement:
1. A competent trustor (one who executes the instrument creating VI. Notes
the trust) and trustee (person who is expressly designated to carry
out the trust)
2. An ascertainable trust res (consists of duly identified and definite
real properties)
3. Sufficiently certain beneficiaries

There must also be a present and complete disposition of the trust property,
even if enjoyment of the property will only take place in the future. Another
requisite is that there must be a declaration of terms and that these must be
stated with reasonable certainty so that the trustee may administer and that
the court can enforce the trust, if need be.

APPLICATION TO THE CASE

MDA relies mainly upon the stipulation in the deed of sale executed by
Bansing for Juan Cruz: “That I hereby agree to work for the titling of the
entire area of my land under my own expenses and the expenses for the
titling of the portion sold to me shall be under the expenses of the said Juan
Cruz Yap Chuy.” Through this, MDA claims that Bansing became the
trustor and trustee and Juan Cruz as the beneficiary. However, SC holds that
this is nothing but a condition that Bansing will pay the expenses for

G.R. NO: L-49087 PONENTE: Concepcion, Jr.

ARTICLE; TOPIC OF CASE: Express Trusts ; essential elements DIGEST MAKER: Alec