Hemedes vs CA

G.R. No. 107132 and G.R. No. 108472. October 8, 1999

Facts:
Jose Hemedes executed a Donation Inter Vivos With Resolutory Conditions
whereby he conveyed ownership over a parcel of land, together wiith
improvements, in favor of his third wife, Justa Kauapin, subject to the
following resolutory conditions:
(a) Upon the death or remarriage of the DONEE, the title to the property
donated shall revert to any of the children, or their heirs, of the DONOR
expressly designated by the DONEE in a public document; or
(b) In absence of such an express designation made by the DONEE before
her death or remarriage, the title to the property shall automatically revert
to the legal heirs of the DONOR in common.
Pursuant to the first condition, Justa Kausapin executed a Deed of
Conveyance of Unregistered Real Property by Reversion, conveying to
Maxima Hemedes the subject property. Maxima registered the subject land
with the annotation that Justa Kausapin shall have the usufructuary rights
over the parcel of land herein described during her lifetime or widowhood.
R & B Insurance claimed that Maxima and her husband constituted a real
estate mortgage over the subject property. Maxima failed to pay and the
land was foreclosed, it was then acquired by the same insurance company
at a public auction. The subject land was registered by R & B Insurance
after Maxima failed to redeem the property.
Despite the earlier conveyance of the subject land in favor of Maxima, Justa
Kausapin executed a Kasunduan whereby she transferred the same land to
her stepson Enrique D. Hemedes, who in turn sold the property to
Dominium Realty and Construction Corporation. Said corporation leased the
property to Asia Brewery.
Issue:
Which of the two conveyances by Justa Kausapin, the first in favor of
Maxima Hemedes and the second in favor of Enrique D. Hemedes,
effectively transferred ownership over the subject land.
Held:
The Cort upheld the deed of conveyance in favor of Maxima Hemedes and
ruled that Enrique D. Hemedes and his transferee, Dominium, did not
acquire any rights over the subject property. Justa Kausapin sought to
transfer to her stepson exactly what she had earlier transferred to Maxima
Hemedes the ownership of the subject property pursuant to the first
condition stipulated in the deed of donation executed by her husband. Thus,
the donation in favor of Enrique D. Hemedes is null and void for the
purported object thereof did not exist at the time of the transfer, having
already been transferred to his sister. Similarly, the sale of the subject
property by Enrique D. Hemedes to Dominium is also a nullity for the latter

cannot acquire more rights than its predecessor-in-interest and is definitely

not an innocent purchaser for value since Enrique D. Hemedes did not
present any certificate of title upon which it relied. The Court also sustained
petitioner R & B Insurances claim that it is entitled to the protection of a
mortgagee in good faith and that it validly acquired ownership over the
property.