TRUST Cases

The “Equity” “Equ ity” Essence of Implied Trusts G.R. No. 108121 May 10, 1994 HERMINIA L. RAMOS and HEIRS OF HERMINIO RAMOS, vs.

HON. COURT OF APPEALS, SPOUSES HILARIO CELESTINO and LYIA LYIA CELESTINO, CELESTIN O, The !"#a$ %o&"!'(  decision is premised on the following findings and conclusion:

T)* Co&"!, &+on !)* *#d*n%* add&%*d, -#nd( !)a! an #+$#*d o" "*(&$!#n/ !"&(! a( %"*a!*d y o+*"a!#on o- $a )*n !)* (&*%! +"o+*"!y a( (o$d y !)* PHHC, #!) !)* $*/a$ !#!$* *#n/ *(!*d #n H*"#n#o a( !)* %o""*(+ond#n/ TCT a( #((&*d #n )#( na*, &! #!) !)* *n*-#%#a$ !#!$*, )o**", *#n/ *(!*d #n Lyd#a a( ()* a( !)* on* )o +a#d !)* +&"%)a(* +"#%* o- !)* +"o+*"!y o&! o)*" -&nd( a-!*" H*"#n#o )ad *a"$#*" (o$d and !"an(-*""*d !o )*" )#( "#/)!( !o &y !)* +"o+*"!y and ()* )ad -&$$y +a#d )# !)* +&"%)a(* +"#%* -o" (a#d "#/)!(3 a%%o"d#n/$y, #! a++*a"#n/ !)a! #n(!*ad o- "*%o/n##n/ and a#d#n/ y (a#d !"&(!, H*"#n#a and !)* o!)*" d*-*ndan!( 5)o a( H*"#n#o'( (&%%*((o"6#n6#n!*"*(! *"*$y (!*++*d #n!o )#( ()o*( &+on )#( d*a!)7 )a* "*+&d#a!*d !)* !"&(! y %$a##n/ !)* +"o+*"!y -o" !)*(*$*( (oon a-!*" H*"#n#o'( d*a!) #n 198, Lyd#a and )*" (+o&(* H#$a"#o *"* -&$$y a""an!*d #n "#n/#n/ !)*#" (a#d %o+$#an! )*"*#n, (**#n/ a( #! do*(, !)* *n-o"%**n! o- !)* !"&(! !)"& d*-*ndan!(' *:*%&!#on o- !)* %o""*(+ond#n/ %on*yan%* d**d !o !)* *nd !)a! !)* !"&* *n*-#%#a$ !#!$* ay * "*-$*%!*d #n !)* %o""*(+ond#n/ !#!$* %*"!#-#%a!*3 and, a/a#n, a/a#n, (#n%* #! a( *%a&(* o- d*-*ndan!'( d*-*ndan!'( &na""an!*d "*+&d#a!#on o- !)* !"&(! !)a! +$a#n!#--( *"* %o+*$$*d !o "#n/ !)*#" %o+$a#n! #n C##$ Ca(* No. ;6492 I! *a"( (!"*((#n/ !)a! +*!#!#on*" )a( !)* &"d*n o- +"o#n/ )*" %a&(* o- a%!#on #n !)* #n(!an! %a(* and ()* ay no! "*$y on !)* *an*(( o- !)* d*-*n(* o- "*(+ond*n! (+o&(*( Rao(. ::: T)*"*-o"*, !)* +a"!y, )*!)*" +$a#n!#-- o" d*-*ndan!, )o a((*"!( !)* a--#"a!#* o- !)* #((&* )a( !)* &"d*n o- +"oo- !o o!a#n a -ao"a$* &d/*n!. Fo" !)* +$a#n!#--, !)* &"d*n o- +"oo- n**" +a"!(. Fo" !)* d*-*ndan!, an a--#"a!#* d*-*n(* #( on* )#%) #( no! a d*n#a$ o- an *((*n!#a$ #n/"*d#*n! #n !)* +$a#n!#--J( %a&(* oa%!#on, &! on* )#%), #- *(!a$#()*d, #$$ * a /ood d*-*n(* #.*., an ao#dan%* o- !)* %$a#.40 F"o !)* a$$*/a!#on( o- !)* +*!#!#on*"J( Co+$a#n! #n C##$ Ca(* No. >,94>.1> a( a!!"#&!*d !o !)* +&"%)a(* o- !)* ?on#-a%#o +"o+*"!y y !)* "*(+ond*n! (+o&(*( Rao( &(#n/ !)* +"o-#!( -"o !)* (a$*( o- !)* (!o"*. A %a"*-&$ +*"&(a$ o- !)* "*%o"d( o- !)* %a(* "**a$( !)a! "*(+ond*n! (+o&(*( Rao( d#d #nd**d -a#$ !o #n!*"+o(* !)*#" o*%!#on( "*/a"d#n/ !)* ad#((##$#!y o- !)* a-o"*6*n!#on*d !*(!#on#*( )*n !)* (a* *"* o--*"*d !o +"o* !)* a$$*/*d *"a$ !"&(! a/"***n! *!**n !)* and +*!#!#on*". Con(*=&*n!$y, !)*(* !*(!#on#*( *"* "*nd*"*d ad#((#$* #n *#d*n%*. N**"!)*$*((, )#$* ad#((##$#!y o- *#d*n%* #( an a--a#" o- $o/#% and $a, d*!*"#n*d a( #! #( y #!( "*$*an%* and %o+*!*n%*, !)* *#/)! !o * /#*n !o (&%) *#d*n%*, on%* ad#!!*d, (!#$$ d*+*nd( on &d#%#a$ *a$&a!#on.4< T)&(, d*(+#!* !)* ad#((##$#!y o- !)* (a#d !*(!#on#*(, !)* Co&"! )o$d( !)a! !)* (a* %a""#*d $#!!$* *#/)! #n +"o#n/ !)* a$$*/*d *"a$ !"&(! a/"***n! *!**n +*!#!#on*" and "*(+ond*n! (+o&(*(. P*!#!#on*"J( a$$*/a!#on( a( !o !)* *:#(!*n%* o- an *:+"*(( !"&(! a/"***n! #!) "*(+ond*n! (+o&(*( Rao(, (&++o"!*d on$y y )*" on and )*" (on o)n(onJ( !*(!#on#*(, do no! )o$d a!*". A( %o""*%!$y "&$*d y !)* Co&"! o- A++*a$(, a "*(&$!#n/ d#--*"*n%* oP11>,94>.1 #n !)* */#nn#n/ #n*n!o"y o- !)* (!o%( o- !)*

)a"da"* (!o"* 5*-o"* ana/**n! a( !"an(-*""*d !o "*(+ond*n! (+o&(*( Rao(7 and !)* (*%ond #n*n!o"y !)*"*o5a-!*" ana/**n! a( "*!&"n*d !o +*!#!#on*"7, y #!(*$-, #( no! %on%$&(#* +"oo- !)a! !)* (a#d ao&n! a( &(*d !o +ay !)* +&"%)a(* +"#%* o- !)* ?on#-a%#o +"o+*"!y, (&%) a( o&$d a* #! !)* +"o+*"!y o- +*!#!#on*" )*$d *"*$y #n !"&(! y "*(+ond*n! (+o&(*( Rao(. S&%) a %on%$&(#on ado+!*d y !)* RTC #( +&"*$y (+*%&$a!#* and non (*=&#!&". T)* "*(&$!#n/ d#--*"*n%* #n !)* !o #n*n!o"#*( #/)! )a* **n %a&(*d y o!)*" -a%!o"( and !)* (a* #( %a+a$* o- o!)*" #n!*"+"*!a!#on( 5*. /., !)a! !)* ao&n! !)*"*o- ay )a* **n "#!!*n o-- a( &(#n*(( $o((*( d&* !o a ad *%ono#% %ond#!#on, o" !)a! !)* (!o%( o- !)* (!o"* #/)! )a* **n daa/*d o" o!)*"#(* !)*#" +&"%)a(* +"#%*( )a* #n%"*a(*d d"aa!#%a$$y, *!%.7, !)* *:%$&(#on o- )#%) "*(!*d &+on !)* ()o&$d*"( o- +*!#!#on*" a$on* )o )a( !)* &"d*n o- +"oo- #n !)* #n(!an! %a(*. T)#( +*!#!#on*" #(*"a$y -a#$*d !o do. T)* -a%! !)a! "*(+ond*n! (+o&(*( Rao( n**" d*n#*d !)* P11>,94>.1 d#--*"*n%*, o" !)a! !)*y -a#$*d !o +"*(*n! +"oo- !)a! !)*y #nd**d &(*d !)* (a#d ao&n! !o +ay !)* o!)*" o$#/a!#on( and $#a#$#!#*( o- +*!#!#on*" #( no! (&--#%#*n! !o d#(%)a"/* +*!#!#on*"J( &"d*n !o +"o* !)* *:#(!*n%* o- !)* a$$*/*d *:+"*(( !"&(! a/"***n!.

FACTS 6 Man&*$ Sa$ao and a$*n!#na I/na%#o */o! 4 %)#$d"*n, Pa!"#%#o, A$*and"a, &an5?an$#7 and A"o(#a. Man&*$ d#*d #n 188. Pa!"#%#o d#*d #n 188> and a( (&"#*dy )#( (on a$*n!#n. 6 )*n a$*n!#na d#*d, )*" *(!a!* a( ad#n#(!*"*d y A"o(#a. I! a( +a"!#!#on*d *:!"a6&d#%#a$$y !o A$*and"a, &an, A"o(#a and a$*n!#n. a$*n!#n a( /#*n $and )#%) )a( an a++"a#(*d a$&* o- 1,01 )#%) *:%**d*d a$*n!#n'( d#(!"#&!#* ()a"*. So #n !)* d**d o- +a"!#!#on )* a( d#"*%!*d !o +ay !o )#( %o6)*#"( !)* (& o- P,>.1 a( a(#( -o" !)*#" a"/&*n!. II. ECISION OF THE COURTS R*/#ona$ T"#a$ Co&"! T)* RTC d#(#((*d !)* %o+$a#n! (!a!#n/ !)a! !)* %a(* -a$$( &nd*"  A"!#%$* 2142 #n(!*ad o- A"!#%$* 14>. T)*y "&$*d !)a! !)* !"&(! %od* do*( no! a++$y #n !)#( %a(* y &(#n/ !)* !*%)n#%a$ d*-#n#!#on o- !"&(! !)a! #( a "#/)! o- +"o+*"!y, "*a$ o" +*"(ona$, )*$d y on* +a"!y -o" !)* *n*-#! o- ano!)*", !)a! !)*"* #( a -#d&%#a"y "*$a!#on *!**n a !"&(!** and a %*(!&# =&* !"&(! a( "*/a"d( %*"!a#n +"o+*"!y, "*a$, +*"(ona$, on*y o" %)oo(*( #n a%!#on. Co&"! o- A++*a$( PN? *$*a!*d !)* %a(* !o !)* Co&"! o- A++*a$( )*"*#n (a#d %o&"! a--#"*d !)* d*%#(#on o- !)* $o*" %o&"!. T)* a++*$$a!* %o&"! a$(o add*d !)a! !)* %a(* o&$d no! +"o(+*" d&* !o !)* +"*(%"#+!#on +"o#d*d #n A"!#%$* 114 !)a! (!a!*(K A"!. 114. T)* -o$$o#n/ a%!#on( &(! * %o*n%*d #!)#n (#: y*a"(K 517 U+on an o"a$ %on!"a%!3 527 U+on a =&a(#6%on!"a%!. 5n7 S&+"** Co&"! T)* S&+"** Co&"! a++$#*d o!) A"!. 14> )#%) #( on %on(!"&%!#* !"&(! and A"!. 214 )#%) #( on (o$&!#o #nd*#!# !o !)* %a(*. T)*y d*!*"#n*d !)a! !)*"* #( %on(!"&%!#* !"&(! #no$*d *n-o"%#n/ A"!. 14>. A %on(!"&%!#* !"&(! #( a -o" o- #+$#*d !"&(!. I+$#*d !"&(!( a"* !)o(* )#%), #!)o&! *#n/ *:+"*((*d, a"* d*d&%#$* -"o !)* na!&"* o- !)* !"an(a%!#on a( a!!*"( o- !)* #n!*n! o" )#%) a"* (&+*"#nd&%*d on !)* !"an(a%!#on y o+*"a!#on o- !)* $a a( a!!*"( o- *=&#!y, #nd*+*nd*n!$y o- !)* +a"!#%&$a" #n!*n!#on o- !)* +a"!#*(. Con(!"&%!#* !"&(!( o%%&" )*n !)*"* #( n*#!)*" a +"o#(* no" any -#d&%#a"y "*$a!#on !o (+*a o- and !)*

(o6%a$$*d !"&(!** n*#!)*" a%%*+!( any !"&(! no" #n!*nd( )o$d#n/ !)* +"o+*"!y -o" !)* *n*-#%#a"y. Fo$$o#n/ !)* a-o"**n!#on*d d*-#n#!#on(, !)*"* #( !"&(! #no$*d. T)*"* a( no *:+"*((#on o" %on!"a%! (!#+&$a!#n/ !)a! Ma!a and PN? )a* a -#d&%#a"y "*$a!#on()#+, )o**", !)* +o#n! !)a! !)*"* a( a !"an(a%!#on !)a! o&$d #n-*" (&%) an a""an/**n! 5+ay*n!7, %on(!"&%!#* !"&(! )a( **n *(!a$#()*d. T)* S&+"** Co&"! a$(o ada+!*d A"!. 214 -o" !)* %a(* %$*a"$y -a$$( #n !)#( a"!#%$*. Ma!a "*%*#*d on*y, )#%) )ad no! "#/)! !o d*and #!, and !)*"* a( a$(o a #(!a* o- d*$#*"y. . Ho**", d&* !o !)* +"*(%"#+!#on o- A"!. 214, =&a(#6%on!"a%! %an no $on/*" * an a$!*"na!#* $*a#n/ %on(!"&%!#* !"&(! a( !)* a++$#%a$* o+!#on. A( -o" !)* #((&* )*!)*" o" no! PN? %an (!#$$ %$a# !)*  14,000, !)* S&+"** Co&"! "&$*d !)a! #! %o&$dnJ! * +o((#$*. E*n !)o&/) !)* %a(* #( (!#$$ #!)#n !)* +"*(%"#+!#on +*"#od, !)* +*!#!#on*" %anno! do (o *%a&(* !)*y *"* +"o*d !o * n*/$#/*n! #n *:*"%#(#n/ !)*#" $*/a$ "#/)!. I! !oo !)* (**n y*a"( !o "*a$#* !)*#" *""o" and -o" a #/ an (&%) a( PN?, !)a! #( *"y "*a"a$*. ?an( a"* (&*%! !o a&d#!( and an *""o" (&%) a( !)a! ()o&$d )a* **n (+o!!*d #!)#n !)* y*a". T)* an ()o&$d, !)*"*-o"*, *a" !)* %o(! o- !)*#" on n*/$#/*n%*. In P)#$#++#n* Na!#ona$ ?an . Co&"! o- A++*a$(, 21< SCRA 4< 51997, !)* Co&"! d*(%"#*d a !y+#%a$ !"&(! 5a( d#(!#n/&#()*d -"o a %on(!"&%!#* !"&(! &nd*" A"!#%$* 14> o- !)* C##$ Cod*7 a( on* )*"*#n %on-#d*n%* #( "*+o(*d #n on* +*"(on )o #( na*d a !"&(!** -o" !)* *n*-#! o- ano!)*" )o #( %a$$*d !)* %*(!&# =&* !"&(!, "*(+*%!#n/ +"o+*"!y )#%) #( )*$d y !)* !"&(!** -o" !)* *n*-#! o- !)* %*(!&# =&* !"&(!. A %on(!"&%!#* !"&(!, &n$#* an *:+"*(( !"&(!, do*( no! *ana!* -"o, o" /*n*"a!* a -#d&%#a"y "*$a!#on. )#$* #n an *:+"*(( !"&(!, a *n*-#%#a"y and a !"&(!** a"* $#n*d y %on-#d*n!#a$ o" -#d&%#a"y "*$a!#on(3 #n a %on(!"&%!#* !"&(!, !)*"* #( n*#!)*" a +"o#(* no" any -#d&%#a"y "*$a!#on !o (+*a o- and !)* (o6%a$$*d !"&(!** n*#!)*" a%%*+!( any !"&(! o" #n!*nd( )o$d#n/ !)* +"o+*"!y -o" !)* *n*-#%#a"y. In add#!#on, PN? d#(!#n/&#()*d *!**n !)* o$#/a!#on( o- !)* !"&(!** #n an *:+"*(( !"&(! -"o !)a! #n a %on(!"&%!#* !"&(!K Und*" A*"#%an La, a %o&"! o- *=&#!y do*( no! %on(#d*" a %on(!"&%!#* !"&(!** -o" a$$ +&"+o(*( a( !)o&/) )* *"* #n "*a$#!y a !"&(!**3 a$!)o&/) #! #$$ -o"%* )# !o "*!&"n !)* +"o+*"!y, #! #$$ no! #+o(* &+on )# !)* n&*"o&( -#d&%#a"y o$#/a!#on( o"d#na"#$y d*and*d -"o a !"&(!** o- an *:+"*(( !"&(!. I! &(! * o"n* #n #nd !)a! #n an *:+"*(( !"&(!, !)* !"&(!** )a( a%!#* d&!#*( o- ana/**n! )#$* #n a %on(!"&%!#* !"&(!, !)* d&!y #( *"*$y !o (&""*nd*" !)* +"o+*"!y.

Ton/oy . CA G.R. No. L64>4 &n* 28, 198

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