CABACUNGAN vs.

LAIGO
G.R. No. 175073. August 15, 2011

FACTS:
Margarita Cabacungan owned three parcels of unregistered land in La Union which are
covered by tax declaration all in her name. Sometime in 1968, Margarita’s son, Roberto Laigo,
Jr. applied for a non-immigrant visa to the United States, and to support his application, he
allegedly asked Margarita to transfer the tax declarations of the properties in his name. For said
purpose, Margarita, unknown to her other children, executed an Affidavit of Transfer of Real
Property whereby the subject properties were transferred by donation to Roberto.
Roberto adopted respondents Pedro Laigo and MarilouLaigo. In July 1990, Roberto sold
the aforementioned three parcel of land. One parcel of land was sold to spouses Mario and Julia
Campos and the rest were sold to Pedro Laigo and MarilouLaigo. These sales were not known to
Margarita and her other children.
Spouses Campos advanced that they were innocent purchasers for value and in good
faith. Further, they noted that Margarita’s claim was already barred by prescription and laches
owing to her long inaction in recovering the subject properties.
Marilou and Pedro contends to be buyers in good faith and for value. They also believed
that Margarita’s cause of action had already been barred by laches, and that even assuming the
contrary, the cause of action was nevertheless barred by prescription as the same had accrued
way back in 1968 upon the execution of the affidavit of transfer by virtue of which an implied
trust had been created. In this regard, they emphasized that the law allowed only a period of ten
(10) years within which an action to recover ownership of real property or to enforce an implied
trust thereon may be brought, but Margarita merely let it pass.
On February 8, 1999, the trial court rendered a Partial Decision approving the
compromise agreement and dismissing the complaint against the Spouses Campos. Trial on the
merits ensued with respect to Pedro and Marilou.