Central Philippine University v. CA

CENTRAL PHILIPPINE UNIVERSITY v. COURT OF APPEALS

July 17, 1995 | Bellosillo, J. | Resolutory Condition or Condition Subsequent PETITIONER: Central Philippine University RESPONDENT: Court of Appeals and Heirs of Don Ramon Lopez, Sr. SUMMARY: Don Ramon Lopez executed a deed of donation of a parcel of land in favor of CPU, on the condition that the land shall be utilized by the CPU for the establishment and use of a medical college. Fifty years have passed and the condition still has not been complied with. Because of this, the heirs of Don Ramon want the donation annulled and the land reconveyed to them for non-compliance with the condition. The Court held that more than a reasonable period of 50 years has already been allowed CPU to avail of the opportunity to comply with the condition to make the donation in its favor forever valid but it still failed to do so. CPU is ordered to reconvey the land to the heirs of Lopez. DOCTRINE: An onerous donation is one executed for a valuable consideration which is considered the equivalent of the donation itself. // When in an obligation with a resolutory condition, more than a reasonable period has been allowed to comply with the condition and the donee still failed to do so, there is no more need to fix the duration of the term. FACTS: 1.

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In 1939, Don Ramon Lopez, Sr. who was then a member of the Board of Trustees of the Central Philippine College, executed a deed of donation in favor of the latter of a parcel of land. Conditions: - The land shall be utilized by the CPU for the establishment and use of a medical college - The college shall not sell, transfer or convey to any third party nor in any way encumber said land - The land shall be called Ramon Lopez Campus. In 1989, the heirs of Don Ramon Lopez filed an action for annulment of donation and reconveyance against CPU, alleging that since 1939 up to the time the action was filed, CPU had not complied with the conditions of the donation. CPU had even negotiated with NHA to exchange the donated property with another land owned by Lopez. Trial Court: CPU failed to comply with the conditions of the donation, therefore it is null and void. CA: reversed. - The annotations at the back of the CPU’s certificate of tite were resolutory conditions breach of which should terminate the rights of the donee this making the donation revocable. - The donor did not fix a period within which the condition must be fulfilled. The case should be remanded to court of origin for the determination of period.

ISSUE: WON the donation should be revoked  YES, the donation should be revoked for noncompliance with the conditions imposed for the donation to be forever valid. RATIO: 1.

The donation was onerous – one executed for a

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valuable consideration which is considered the equivalent of the donation itself. When Don Ramon Lopez donated the parcel of land to CPU but imposed an obligation upon the latter to establish a medical college thereon, the donation must be for an onerous consideration. When a person donates land to another on the condition that the latter would build upon the land a school, the condition imposed was not a condition precedent but a resolutory one. GR: When the obligation does not fix a period but from its nature and circumstances it can be inferred that a period was intended, the courts may fix the duration thereof. However, in this case, the GR cannot be applied. More than a reasonable period of 50 years has already been allowed CPU to avail of the opportunity to comply with the condition to make the donation in its favor forever valid. Unfortunately, it failed to do so. Hence, there is no more need to fix the duration of a term of the obligation when such procedure would be a mere technicality and formality. Since the questioned deed of donation is basically a gratuitous one, doubts referring to incidental circumstances of a gratuitous contract should be resolved in favor of the least transmission of rights and interests.

RULING: Judgment of the CA MODIFIED. CPU is directed to reconvey to heirs of Lopez the parcel of land. DISSENTING OPINION, Davide: The “conditions” in this case do not refer to uncertain events on which the birth or extinguishment of a juridical relation depends, but to obligations and charges imposed by the donor on the donee. It is a modal donation. The establishment of the medical college as the condition of the donation is one such prestation.