SICAD VS.

CA - Donation Mortis Causa

The real nature of a deed is to be ascertained by both its language and the intention of the parties as demonstrated by the
circumstances attendant upon its execution.
A donation which purports to be inter vivos but withholds from the donee the right to dispose of the donated property during the donor’s
lifetime is in truth one mortis causa. In usch donation, the right of disposition is not transferred to the done while the donor is still alive.

FACTS:
In Dec 1979: Aurora Montinola, executed a Deed in favor of her grandchildren, Catalino, Judy and Jesus- all of them Valderramas. The
deed bore the title ―Deed of Donation Intervivos. It provided that that the donation shall be effective only 10 years after Montinola’s
death

Thereafter, Aurora’s secretary presented the Deed to the Registrar for the purpose of canceling the original title and obtaining a transfer
certificate of title in favor of the three donees.

In 1980, the original title of the parcel of land subject of the donation was cancelled and a new title was given to the Valderramas.
Montinola however retained the original title and she continued to perform acts of ownership over the parcel of land.

In 1987, Montinola revoked the donation because of acts of ingratitude committed against her by the Valderramas; that the
Valderramas defamed her; that she overheard the Valderramas plotting against her life. In 1990, she petitioned to have her title be
reinstated and her grandchildren’s title be cancelled. She said that the donation is actually a donation mortis causa and that the same is
void because the formalities of a will were not complied with. In the same year, she sold her property to spouses Ernesto and Evelyn
Sicad.

The Valderramas opposed the petition. In 1993, while the case was still pending, Montinola died. The petition was continued by the
spouses Sicad.

ISSUE: Whether or not the Donation took the nature of one inter vivos

HELD: No. The donation is mortis causa.

The court found circumstances signifying that Aurora never intended the donation to take effect within her lifetime.
First, she expressed that the donation take effect 10 years after her death.
Second, she inserted a prohibition on the sale of the property during the 10 year period.
Third, she continued to possess the property as well as the fruits and authorized such enjoyment in the deed of donation.
Fourth, she retained the certificate of title and subsequently alienated it in favor of the Sicads. All these are indisputable acts of
ownership.

The court then concluded that the real nature of a deed is to be ascertained by both its language and the intention of the parties as
demonstrated by the circumstances attendant upon its execution.

The deed subject of litigation is one mortis causa because it stipulated ―that all rents, proceeds, fruits, of the donated properties shall
remain for the exclusive benefit and disposal of the donor, during her lifetime; and that, without the knowledge and consent of the
donor, the donated properties could not be disposed of in any way, whether by sale, mortgage, barter, or in any other way possible.

A donation which pretends to be one inter vivos but withholds form the donee that right to dispose of the donated property
during the donor’s lifetime is in truth one mortis causa. In a donation mortis causa ― the right of disposition is not
transferred to the donee while the donor is still alive.

Because of Aurora’s actions, nothing was transferred by the deed of donation in question to her grandchildren. They did not get
possession of the property donated. They did not acquire the right to the fruits thereof, or any other right of dominion over the property.
More importantly, they did not acquire the right to dispose of the property – this would accrue to them only after ten years from Aurora’s
death. Moreover, they never saw what the certificate of title looked like.

These circumstances ultimately lead to the conclusion that the donation in question was a donation mortis causa, envisioning a transfer
of ownership only after the donor death.