343. Layos v. Fil-Estate Golf and Development, Inc., GR 150470, Aug.

6, 2008, 561
SCRA 75

FACTS

Petitioner Fil-Estate Golf & Development, Inc. (FEGDI) is the developer of the Manila
Southwoods golf course and residential subdivision project which partly covers lands
located in Laguna. Its partner in the joint venture, La Paz Housing and Development
Corporation (La Paz), provided the aforementioned properties which are registered in its
name. Felipe Layos filed a complaint for Injunction and Damages with Application for
Preliminary Injunction against Fil-Estate Realty Corporation, (FERC) et al. with the
Regional Trial Court of Laguna and docketed as Civil Case No. B-3973. The Spouses
Layos themselves filed a petition for reconstitution of their alleged OCT No. 239.

ISSUE

Whether or not the Spouses Layos are entitled to reconstitution?

RULING

No. Reconstitution or reconstruction of a certificate of title literally and within the

meaning of Republic Act No. 26 denotes restoration of the instrument which is
supposed to have been lost or destroyed in its original form and condition. For an order
of reconstitution to issue, the following elements must be present: 1) the certificate of
title has been lost or destroyed; 2) the petitioner is the registered owner or has an
interest therein; and 3) the certificate of title is in force at the time it was lost or
destroyed.

While G.R. No. 120958 does not bar the institution of LRC Case No. B-1758, the
pronouncement of invalidity of OCT No. 239 by this Court in G.R. No. 120958 is
conclusive upon the San Pedro RTC in LRC Case No. B-1758, precluding it from re-
litigating the same issue and ending up with a contrary ruling. Since the Court already
settled in G.R. No. 120958 that OCT No. 239 is fake and a forgery, it would have been a
senseless and futile endeavor for the San Pedro RTC to continue with the reconstitution
proceedings in LRC Case No. B-1758, for there is actually no valid certificate to
reconstitute. The court cannot, and should not, reconstitute a spurious certificate of title
and allow the continuous illegal proliferation and perpetuation thereof. Republic Act No.
26 provides for a special procedure for the reconstitution of Torrens certificates of title
that are missing but not fictitious titles or titles, which are existing.