Short Title: Reyes vs. Mosqueda GR No.

45262 July 23, 1990

Ponente: Hon. Justice Hugo E. Guiterrez, Jr.
Topic: Effects of Donations and Limitations
Brief background:
The nature of the disposition made is the determinative factor which makes the
donation ― inter vivos or ― mortis causa and not the title given to a deed of donation.

Facts:

Dr. Emilio Pascual died intestate and was survived by his sister Ursula Pascual
and the children of his late sisters, herein petitioners Ruperto Reyes et. al. The heirs of
Dr. Pascual filed Special Proceedings No. 73-30-M in the Court of First Instance for
the administration of Pascual’s estate. Ursula then filed a motion to exclude some
properties included alleging that these were donated to her in a donation mortis causa
in 1966. This was granted by the Court of First Instance without prejudice to its final
determination in a separate action. An appeal was made to the Supreme Court. The
Supreme Court then issued a TRO enjoining the Court of First Instance from enforcing
the order.

Among the properties donated to Ursula is lot 24 which was also donated in
1969 in a deed of donation inter vivos in favor of Ofelia Parungao who was then a
minor at the time of the donation. When she reached the age of majority, she had the
donation registered but found out that the certificate of title was missing so she filed a
petition for reconstitution of title which was granted, and she registered the donation
and was issued a new TCT in her name.

Ursula then sold the lot in favor of the Reyes. Benjamin Reyes filed a complaint
for declaration of nullity of Ofelia’s TCT which prompted Ofelia to file a petition for
recovery of possession against Benjamin Reyes. The CFI issued a joint decision for the
2 cases ruling that Ofelia’s TCT was null and void. The IAC affirmed thus an appeal to
the SC.

Lower Court:

The two cases were consolidated. On June 3, 1982, the then Court of First Instance,
Branch 8 rendered a joint decision, the dispositive portion of which reads:

WHEREFORE, judgment is hereby rendered: In Civil Case No. 115164 —

1) Declaring TCT No. 129092 in the name of Ofelia Parungao null and void; and
ordering the Register of Deeds of Manila to cancel said title and to restore, in lieu
thereof, TCT No. 17854 in the name of Emilio D. Pascual;

2) Ordering Ofelia D. Parungao to pay plaintiff Benjamin P. Reyes the sum of Two
Thousand (P2,000.00) Pesos, as and for attorney's fees; and to pay the costs of suit
including all fees which the Register of Deeds may prescribe for the full
implementation of this decision. For lack of merit, the counterclaim is dismissed.

In Civil Case No. 119359 —

1) Dismissing the complaint for want of merit; and

2) On the counterclaim, ordering Ofelia Parungao to pay defendant defendants the

sum of Two Thousand (P2,000.00) Pesos as and for attorney's fees.'

Parungao appealed the decision to the then Intermediate Appellate Court. The decision
was, however, affirmed, with costs against the appellant.

The Intermediate Appellate Court decision is now the subject matter in G.R. Nos.
73241-42.

The IAC affirmed thus an appeal to the SC.

Issues:

(1) Whether or not the probate has jurisdiction to exclude properties donated to Ursula
(2) Whether or not the donation executed in favor of Ursula was a donation inter vivos

Ruling:

(1) YES

It was stressed in the order of the probate court that it was without prejudice to the
final determination in a separate action. It is well-settled that although a probate court
cannot adjudicate or determine title to properties, it can determine whether or not the
properties should be included in the inventory to be administered. Such determination
is not conclusive and is subject to the final decision in a separate action.

(2) YES
Although the donation was entitled ―donations mortis causa it has been held that
dispositions in a deed of donation do not depend on the title or term used in the deed
of donation. It is the body of the document which should be considered in ascertaining
the intention of the donor.

For a donation to be a donation mortis causa, the following characteristics should be

present:
1. It conveys no title before the death of the transferor or the transferor retains
ownership over the property
2. Before his death, the transfer should be revocable by the transferor at will
3. The transfer is void should the transferor survive the transferee

The following are not present in the case. The transfer of ownership was immediate
and independent of the death of the donor. The provision stating that the donor has
reserved sufficient properties for himself to maintain him for life confirms the intention
of the donor to give naked ownership immediately after execution of the deed of
donation.