Oblicon - Prescription
Oblicon - Prescription
Oblicon - Prescription
In the same way, rights and actions are lost (c) Convenience in procedural matters (in certain
by prescrip- tion. instances, juridical proof is dispensed with).
HELD: A party who had filed immediately a case FACTS: Respondent deposited her savings with
as soon as he discovered that the land in petitioner- bank. She did not withdraw her
question was covered by a transfer certificate in deposit even after maturity date
the name of another person is not guilty of
laches. (St. Peter Memorial Park, Inc. v. Cleofas,
7
92 SCRA 389 [1979]). An action to recover
possession of a registered land never prescribe
in view of the provision of Sec. 44 of Act 496 Art. 1106 CIVIL CODE OF THE PHILIPPINES
(now
of the certificates of deposit (CDs) precisely
6 because she wanted to set it aside for her
retirement, relying on the banks assur- ance, as
reflected on the face of the instruments
CIVIL CODE OF THE PHILIPPINES Art. 1106
themselves, that interest would accrue or
accumulate annually even after their maturity.
Sec. 47 of PD 1529) to the effect that no title to
Petitioner-bank failed to prove that it had already when it pays deposits evidenced by a CD,
paid re- spondent, bearer and lawful holder of without its production and surrender after proper
subject CDs, i.e., petitioner failed to prove that indorsement. (Clark v. Young, 21 So. 2d 331
the CDs had been paid out of its funds, since [1994]).
evidence by respondent stands unrebutted that
subject CDs until now remain unindorsed, The equitable principle of laches is not sufficient
undelivered, and unwithdrawn by her. to defeat the rights of respondent over the
subject CDs. Laches is the failure or neglect, for
ISSUE: Would it be unjust to allow the doctrine of an unreasonable length of time, to do that
laches to defeat the right of respondent to which, by exercising due diligence, could or
recover her savings which she deposited with should have been done earlier. It is negligence or
the petitioner? omission to assert a right within a reasonable
time, warranting a presumption that the party
HELD: Yes, it would be unjust not to allow entitled to assert it either has abandoned it or
respondent to recover her savings which she declined to assert it. (Felizardo v. Fernandez, GR
deposited with petitioner-bank. For one, 137509, Aug. 15, 2001).
Petitioner failed to exercise that degree of
diligence required by the nature of its business. There is no absolute rule as to what constitutes
(Art. 1173). Because the business of banks is laches or staleness of demand; each case is to
impressed with public interest, the degree of be determined accord- ing to its particular
diligence required of banks is more than that of circumstances. The question of laches is
a good father of the family or of an ordinary addressed to the sound discretion of the court
business firm. and, being an equitable doctrine, its application
is controlled by equitable considerations. It
The fiduciary nature of their relationship with cannot be used to defeat justice or perpetrate
their deposi- tors requires banks to treat fraud and injustice. Courts will not be guided or
accounts of their clients with the highest degree bound strictly by the Statute of Limitations or
of care. (Canlas v. CA, 326 SCRA 415 [2000]). A the doctrine of laches when to do so manifest
bank is under obligation to treat accounts of its wrong or injustice would result. (Rosales v. CA,
depositors with meticulous care whether such GR 137566, Feb. 28, 2001).
accounts consist only of a few hundred pesos or
of millions of pesos. Responsibility arising from Respondent is entitled to moral damages
negligence in the performance of every kind of because of the mental anguish and humiliation
obligation is demandable. (Prudential Bank v. she suffered as a result of the wrongly refusal of
CA, 328 SCRA 264 [2000]). Petitioner failed to petitioner to pay her even after she had de-
prove payment of the subject CDs issued to livered the CDs. (Arts. 2217 and 2219). In
respondent and, therefore, remains liable for the addition, petitioner should pay respondent
value of the dollar deposits indicated thereon exemplary damages which the trial court
with accrued interest. imposed by way of example or correction for the
public good (Art. 2229). Finally, respondent is
A certificate of deposit is defined as a written entitled to attorneys fees since petitioners act
acknowledg- ment by a bank or banker of the or omission compelled her to incur expenses to
receipt of a sum of money on deposit which the
bank or banker promises to pay to the deposi- 9
tor, to the order of the depositor, or to some
other person or his order, whereby the relation Art. 1106 CIVIL CODE OF THE PHILIPPINES
of debtor and creditor between the bank and the protect her interest making such award just and
depositor is created. Principles governing other equitable. (Art.
8 2208).
CIVIL CODE OF THE PHILIPPINES Art. 1106 Development Bank of the Phils. v. CA &
Carlos Cajes GR 129471, Apr. 28, 2000
types of bank deposits are applicable to CDs (10
AM Juri 2d Sec. 455), as are the rules governing FACTS: Petitioner filed an ejectment suit against
promissory notes when they contain an private respondent, claiming ownership of a
unconditional promise to pay a sum certain of parcel of land covered by a TCT, which included
money absolutely. (Ibid., Sec. 457). the 19.4 hectares being occupied by the latter.
The trial court declared petitioner to be the
The principle that payment, in order to discharge owner of the land, but the Court of Appeals (CA)
a debt, must be made to someone authorized to reversed the trial court. On appeal, petitioner
receive it is applicable to the payment of CDs. claimed that its predecessor-in-interest had
Thus, a bank will be protected in mak- ing become the owner of the land by virtue of the
payment to the holder a certificate indorsed by decree of registra- tion in his name. The
the payee, unless it has notice of the invalidity of Supreme Court affirmed the CA.
the indorsement or the holders want of title. (10
Am Jur 2d Sec. 461). A bank acts at its peril
HELD: Taking into consideration the possession (a) those who can make use of the other modes
of his predecessor-in-interest, private respondent of acquiring ownership.
had been in uninter- rupted adverse possession
of the land for more than 30 years prior to the (b) even minors and other incapacitated
decree of registration issued in favor of persons (like the insane).
petitioners predecessor-in-interest. Such
possession ripened into ownership of the land
(2) Reason for Par. 1 (Those Capable of
thru acquisitive prescription, a mode of acquiring
Acquiring Property or Rights Thru the
ownership and other real rights over immovable
Other Modes)
property. A decree of registration cut off or
extinguished a right acquired by a person only
when such right refers to a lien or encumbrance Since prescription is also a mode of acquiring
on the land which was not annotated on the ownership, it follows that if a person is capable
certificate of title issued thereon, but not to the of becoming an owner by the other legal modes,
right of ownership thereof. Regis- tration of land he should also be capable of acquiring the same
does not create a title nor vest one. Accordingly, property by prescription. Thus, if a person can
the 19.4 hectares of land being occupied by become an owner by donation, he can also
private respondent must be reconveyed in his become an owner by prescription.
favor.
(3) Query (Re Donation by Paramour)
(11) Presumptive Period re Ill-Gotten
Wealth or Behest Loans A husband cannot validly receive a donation
from a para- mour. Now then, can he acquire by
Presidential Ad Hoc Fact-Finding prescription the property donated to him by the
Committee on Behest Loans v. Aniano A. paramour?
Desierto (Recovery of Ill-Gotten Wealth)GR
130340, Oct. 25, 1999114 SCAD 707 11
Behest loans, which are part of the ill-gotten Art. 1108 CIVIL CODE OF THE PHILIPPINES
wealth which former President Ferdinand E.
Marcos and his cronies accumulated and which ANS.: Yes, but only by extraordinary prescription
the Government thru the Presidential (not ordinary prescription) since he would be
lacking the element of just title. There would
10 be no just title because under the law, they
are incapacitated to donate to each other. (See
CIVIL CODE OF THE PHILIPPINES Art. 1107 Art. 739, Civil Code). Note that even if a
donation is VOID, it may constitute the legal
basis for adverse possession. (See Tagalgal v.
Commission on Good Government (PCGG) seeks
Luega, CA-GR 19651-R, Feb. 19, 1959).
to recover, have a prescriptive period to be
counted from the discovery of the crimes
charged, and not from the date of their (4) Reason Why Minors May Acquire
commission. If the commission of the crime is Personally
known, the prescriptive period shall commence
to run on the day it was committed. This is because only juridical capacity is required
for pos- session, not capacity to act. Thus, even
The prosecution of offenses arising from, relating discernment of intent to possess is not required
or inci- dent to, or involving ill-gotten wealth for such personal acquisition. This is so because
contemplated in Sec. 15, Art. XI of the Philippine the law makes no distinction.
Constitution of 1987 may be barred by
prescription. Said provision applies only in civil Art. 1108. Prescription, both acquisitive
actions for recovery of ill-gotten wealth, and not and extinctive, runs against:
to criminal cases.
(1) Minors and other incapacitated persons
Art. 1107. Persons who are capable of who have parents, guardians or other legal
acquiring property or rights by the other representatives;
legal modes may acquire the same by
means of prescription. (2) Absentees who have administrators,
either appoint- ed by them before their
Minors and other incapacitated persons disappearance, or appointed by the courts;
may acquire property or rights by
prescription, either personally or through (3) Persons living abroad, who have
their parents, guardians or legal managers or ad- ministrators;
representatives.
(4) Juridical persons, except the State and
COMMENT:(1) Who May Acquire Property or its subdivi- sions.
Rights by Prescription
Persons who are disqualified from between husband and wife, even though
administering their property have a right there be a separation of property agreed
to claim damages from their legal rep- upon in the marriage settlements or by
resentatives whose negligence has been judicial decree.
the cause of prescrip- tion.
Neither does prescription run between
COMMENT:(1) Persons Against Whom parents and children, during the minority
Prescription May Run or insanity of the latter, and between
guardian and ward during the continuance
. (a) The Article enumerates four such groups. of the guardianship.
. (b) 2 years in other civil actions 1) the prescriptive period for legal separation
suits (Art. 120, Civil Code);
These saving clauses are in line with some
saving clauses provided for minors and the 2) alienations made by the husband, without
incapacitated under the New Civil Code. (See, for
the wifes consent. (Art. 173, Civil Code).
example, Art. 285 with respect to the right of a
natural child to compel recognition after the
parents death, if the parent dies while the child (2) Between Parents and Children
was still a minor).
(a) No prescription shall run between them
If the minor has a guardian, there is NO DOUBT during the MI- NORITY or INSANITY of the latter.
that pre- scription runs against him even during A sensu contrario prescription runs if the legal
minority. (See Wenzel, et al. v. Surigao disability does not exist any- more.
Consolidated Mining Co., L-10843, May 31,
1960). (b) As a general rule, even if the child is neither
insane nor incapacitated, an adverse possession
(3) State and Its Subdivisions cannot be predicated on the possession of the
parent as against the child, or in the possession
of the child as against its parent. Thus, where a
No prescription can run against them, except father became insane, and one of his sons
with refer- ence to patrimonial property. (See
managed the
Art. 1113, Civil Code).
14
Art. 1109. Prescription does not run
CIVIL CODE OF THE PHILIPPINES Arts. 1110-1111 Prescription is deemed to have been tacitly
renounced when the renunciation results
farm during the rest of his fathers lifetime and from acts which imply the abandonment of
remained in possession of it for the statutory the right acquired.
period, it was held that these facts alone did not
warrant the presumption of a conveyance to the COMMENT:
son by the father or of a release to him by the
other heirs subsequent to their fathers death. (1 (1) Requisites for Renunciation of Property
Am. Jur. 807 and Director of Lands v. Abiertas, Acquired by Prescription
44 O.G. 923).
(a) Renouncer must have capacity to alienate
(3) Between Guardian and Ward property (be- cause renunciation is an exercise
to the jus disponendi).
No prescription runs between them during the
continuance of the guardianship. This is so even (b) The property acquired must have already
if the guardian expressly repudiates the been obtained (hence, the right to prescription in
guardianship (without court approval); the future cannot be renounced, since
otherwise, the trust relationship would be manifestly, this would be contrary to public
rendered nugatory. policy).
Art. 1110. Prescription, acquisitive and (c) The renouncing must be made by the owner
extinctive, runs in favor of, or against a of the right (not by a mere administrator or
married woman. guardian, for he does not own the property).
COMMENT:Prescription in the Case of a (d) The renouncing must not prejudice the rights
Married Woman This Article refers to a married of others, such as creditors. (Arts. 6, 1114, Civil
woman and a stranger. Code).
Reason:
(c) requires no solemnities or formalities
15 Example:
Art. 1112 CIVIL CODE OF THE PHILIPPINES Sonia formerly owed Esperanza but the debt has
already prescribed.
(2) Limitation
(a)
The prescription obtained by a co-owner must IfSonia,knowingthatthedebthasprescribed,never
have refer- ence to the property held in theless still acknowledges the existence of the
common, naturally; otherwise the Article does debt and promises to pay for it, there is an
not apply. implied renunciation of the prescrip- tion. She
still has a civil obligation.
Art. 1112. Persons with capacity to
alienate property may renounce (b) If Sonia, knowing that the debt has
prescription already obtained, but not the prescribed, neverthe- less voluntarily pays the
right to prescribe in the future. debt, she cannot recover what she had paid. This
would be a natural obligation.
. (c) If Sonia, not knowing that the debt has However, the rule just stated cannot be
prescribed pays it, there is no renunciation of the altogether inflex- ible, as witnessed, for
prescription; and she can still recover on the example, by the presence of Rep. Act 1942
basis of solutio indebiti. ILLUSTRATIVE CASE: If a (approved June 22, 1957), amending Sec. 48(b)
taxpayer, complaining re- of the Public Land Act (Com. Act 141). Thus, as
amended by RA 1952, Sec. 48 of CA 141 now
peatedly against a tax assessment, makes reads as follows:
several requests for a reinvestigation thereof, he
may be said to have WAIVED the defense of Section 48. The following described citizens of
prescription. (Yutivo & Sons Hardware Co. v. Ct. the Philip- pines occupying lands of the public
of Tax Appeals & Collector of Int. Rev., L-13203, domain or claiming to own any such land or an
Jan. 28, 1961). interest therein, but whose titles have not been
perfected or completed, may apply to the Court
Art. 1113. All things which are within the of First In- stance of the province where the land
commerce of men are susceptible of is located for confirmation of their claims and
prescription, unless otherwise pro- vided. the issuance of a certificate of title therefor,
Property of the State or any of its under the Land Registration Act, to wit:
subdivisions not pat- rimonial in character
shall not be the object of prescription. xx x
COMMENT:(1) Things That May Be Acquired b) Those who by themselves or through their
by Prescription predeces- sors in interest have been in open,
continuous, exclusive and notorious possession
Generally all things within the commerce of and occupation of agricultural lands of the public
man. domain, under a bona fide claim of acquisition of
ownership, for at least thirty years immediately
preceding the filing of the application for
(2) Patrimonial Property
confirmation of the title except when prevented
by war or force majeure. These shall be
. (a) By implication under this Article, patrimonial conclusively presumed to have performed all the
property of the State or any of its subdivisions conditions essential to a Government grant, and
may be acquired by prescription. shall be entitled to a certificate of title
over an implication (Art. 1113, Civil Code), still (4) Some Doctrines
when we consider the intent of Congress in
inserting the phrase not patrimonial in (a)
character in the original draft submitted by the
AfishpondconstructedintheBambangRivercanbe
Code Commission, it is clear that patrimonial ordered removed by the government, regardless
property may indeed be the subject of
of the number of years that have elapsed since
prescription. This is so because patrimonial the construction of said fishpond, inasmuch as a
properties are really in the same category as
river, or a portion thereof, is property of public
private properties. dominion, and cannot therefore be acquired by
acquisitive prescription. (Meneses v. Com-
(3) No Prescription With Respect to Public monwealth, 69 Phil. 647).
Property
(b) Similarly, a tract of land, formerly low and
Public property, however, cannot be the subject swampy, but gradually raised by the action of
of prescrip- tion. This rule applies even to the sea, is not susceptible of prescription, and
privately owned unregistered lands which, may therefore be recovered by the gov- ernment
unless the contrary is shown, are presumed to despite the construction thereon of warehouses
be public lands, under the principle that all and a wharf. The land is part of the public
lands belong to the Crown unless they had been domain. (Insular Government v. Aldecoa and Co.,
granted by the King (State) or in his name, or by 19 Phil. 505).
the Kings who preceded him. (Valenton v.
Murciano, 3 Phil. 53).
(c) A plaza intended for public use is likewise
not subject to prescription. (Harty v. Mun. of issue of prescription. Moreover, the Court said
Victoria, 13 Phil. 152). that a prescribed debt may be the subject of
novation. (Estrada v. Villaroel, 40 O.G. Supp. No.
(5) Things or Properties That Cannot Be 5, 9, p. 201).
Acquired by Pre- scription
Art. 1115. The provisions of the present
. (a) those protected by a Torrens Title. (Sec. 46, Title are un- derstood to be without
Act No. 496) (Francisco v. Cruz, 43 O.G. 5103). prejudice to what in this Code or in special
laws is established with respect to specific
cases of prescription.
. (b) movables acquired thru a crime. (Art. 1133,
Civil Code).
COMMENT:(1) Specific Provisions on
Prescription
. (c) those outside the commerce of men. (Art.
1113, Civil Code).
Specific provisions on prescription found
elsewhere in the Code, or in special laws, prevail
. (d) properties of spouses, parents and children, over the provisions of this
wards and guardians, under the restrictions
imposed by law. (Art. 1109, Civil Code).
20
Art. 1114. Creditors and all other persons
interested in making the prescription CIVIL CODE OF THE PHILIPPINES Art. 1115
effective may avail themselves thereof
notwithstanding the express or tacit Chapter. This is particularly true in the instances
renunciation by the debtor or proprietor. when specific periods of prescription are
provided for.
19
(2) Examples
Art. 1115 CIVIL CODE OF THE PHILIPPINES
(a) A legitimate child may bring an action to
COMMENT:(1) Right of Creditors to Make claim legitimacy as long as he is alive
Use of Prescription (generally). (Art. 173, Family Code).
Reason for the law: (b) An illegitimate child may bring an action to
establish il- legitimate filiation during his lifetime
(generally). (Art. 175, Family Code).
While rights may be waived, third persons with a
right rec- ognized by law should not be
prejudiced. (Art. 6, Civil Code). (c) The real right of possession of real property
is lost at the end of 10 years.
(2) Example
(d) The proceeding for the probate of a will
never prescribes. (Guevara v. Guevara, et al., L-
Tom who is indebted to Nicole acquired a parcel
5405, Jan. 31, 1956).
of land by prescription. If Tom renounces the
prescription, may Nicole make use of said land?
(e) The proceeding for the deportation of an
alien must be brought within five years from the
ANS.: Yes, to the extent of her credit, if Tom is date the cause for de- portation arose. (Sec. 37,
not able to pay his debt. Tom is not allowed to
Immigration Act). [Thus, where an alien entered
prejudice Nicole. the Philippines illegally in 1998, but he violated
the Immigration Law in 2004 by bringing in his
Sambrano v. Court of Tax Appeals, et al. wife who was not lawfully entitled to enter or
101 Phil. 1 reside in the Philippines, the deportation
proceeding commenced in 2005 had not
FACTS: Although the right of the State to collect prescribed. This is because the cause accrued in
the taxes had already been extinguished by 1999. (See Porta Perez v. Board, L-9236, May 29,
prescription, taxpayer Sam- brano nevertheless 1957).]
executed a chattel mortgage on his proper- ties
to guarantee the payment of the same. As a (f) An action to annul a sale of shares of stock in
matter of fact, he actually paid part of the debt. a corpora- tion is violation of the Securities Act
Issue: Can Sambrano later on raise the issue of because there was no permit for the same, and
prescription? for the recovery of the purchase price must be
instituted within a period of two years from the
HELD: No more, for his actuations amount to a date of the sale. Hence, if the sale is made on
renewal (renovacion) of the obligation or to a Oct. 23, 2003, but the action is brought on Nov.
waiver of the benefit granted by the law to him. 2, 2005, the action is 10 days late, and can no
He is, therefore, now estopped from raising the longer be entertained. (See Benedicto v. Phil.
American Finance and Development Co., L-8695, counted from Aug. 30, 1950.
May 31, 1957). However, if by this method a
longer period would be
. (g) In order to confer jurisdiction on the Court of needed, a
Tax Appeals, the suit for refund of taxes
erroneously or illegally assessed must be 22
brought within the statutory period of two years,
and the requirements provided in the National CIVIL CODE OF THE PHILIPPINES Art. 1116
Internal
period that is even longer than that provided
21 under the OLD law, said OLD law applies).
CIVIL CODE OF THE PHILIPPINES Paz Ongsiaco and the Heirs of theLate
Augusto Ongsiaco v. Roman D. Dallo, et al.
(h) L-27451, Feb. 28, 1969
Revenue Code must be complied with. (Collector FACTS: A complaint was filed in 1966 against the
of Internal Revenue v. Court of Tax Appeals, et family of Paz Ongsiaco for recovery of the
al., L-11494, Jan. 28, 1961). ownership of a parcel of land in Cuyapo, Nueva
Ecija. It was admitted by claimants that since
An action for accounting or reliquidation of 1924 (42 years before the basic complaint was
agricultural crops under par. 3, Sec. 17 of Rep. filed in 1966), said family had been in
Act 1199 should be brought within 3 years from possession of the land and that said posses- sion
the threshing of the crops in question. (Agaton was really adverse or in the concept of owner.
Mateo v. Gregorio Duran, et al., L-14314, Feb. However, it was alleged that the possession was
22, 1961). in BAD FAITH. Issue: May recovery of the
property be allowed?
Art. 1116. Prescription already running
before the ef- fectivity of this Code shall be HELD: Recovery cannot be allowed for the cause
governed by laws previously in force; but if of action has already prescribed. Under Art.
since the time this Code took effect the 1116, in a case like this, the law in force before
entire period herein required for the New Civil Code should apply. It is clear that
prescription should elapse, the present under such old law, the Code of Civil Procedure,
Code shall be applicable, even though by good or bad faith was immaterial for purposes of
the former laws a longer period might be acquisitive prescrip- tion. (Sec. 41). Moreover,
required. even the thirty-year period fixed in the New Civil
Code for the acquisition in bad faith by
prescription of real property had already expired
COMMENT:(1) Transitional Rules for when this case was filed in 1966.
Prescription
(a) InEstayov.DeGuzman,L- 25
10902,Dec.29,1958,the Supreme Court held that
when the action to enforce the mortgage Art. 1116
presented as an appeal bond in a court action
be- came effective by the entry of the judgment CIVIL CODE OF THE PHILIPPINES
of the Supreme Court on Aug. 6, 1940, the
encumbrance may be cancelled after Aug. 6,
case is governed not by Art. 1155 of the Civil
1950.
Code, but by Sec. 50 of the Code of Civil
Procedure (which section does not state that
24 such written extrajudicial demands interrupt the
prescriptive period). The old law applies because
CIVIL CODE OF THE PHILIPPINES Art. 1116 Art. 1116 says prescription already running
before the effec- tivity of this Code shall be
. (b) InOngsiako,etal.v.Ongsiako,etal.,L- governed by laws previously in force . . .
7510,Mar.30,1957, the Supreme Court held that
Art. 1116 (Civil Code) prevails over the general 26
transitory rule in Art. 2258 (Civil Code) which
provides that actions and rights which came into CIVIL CODE OF THE PHILIPPINES
being but which were not exercised before the
effectivity of the Code, shall remain in full force
Chapter 2
in conformity with the old legislation, but the
exercise, duration, and procedure to enforce
them shall be regulated by the Rules of Court. PRESCRIPTION OF OWNERSHIP AND OTHER
REAL RIGHTS
. (c) In Borromeo v. Zaballero, L-14357, Aug. 31,
Art. 1117. Acquisitive prescription of (b) for EXTRAORDINARY prescription (no other
dominion and other real rights may be requisites except those mentioned in Comment
ordinary or extraordinary. No. 1 under this Ar- ticle are required).
COMMENT: COMMENT:
. (a) capacity of acquirer to acquire by See this Article. See also the comments in the
prescription preceding Article.
. (b) capacity of loser to lose by prescription (2) Possessor in the Concept of Holder
. (c) object must be susceptible of prescription A possessor in the concept of holder cannot
acquire property by prescription because his
. (d) lapse of required period of time possession is not adverse. Thus, the possession
of land in the capacity of administrator (mere
holder) cannot ripen into ownership. (Ranjo v.
. (e) the possession must be: Payoma, L-1866, May 30, 1951). Neither is the
possession by a mortgagee adverse. (Garcia v.
1 1) in concepto de dueo Arjona, L-7279, Oct. 29, 1955).
(concept of owner)
(3) Owner-Administrator
2 2) public (not clandestine or
non-apparent) The mere fact that the person who claims
ownership of the property also administers the
3 3) peaceful (not thru force, same does not militate against its acquisition of
violence, or intimidation) the property by prescription. The fact that he
4 4) continuous or uninterrupted 28
[NOTE: Under the old law
the Code of Civil Procedure
CIVIL CODE OF THE PHILIPPINES Arts. 1119-1120
whether the possession was in
good faith or in bad faith did
not matter. The period for im- stated that he administered the properties in
movables was always 10 question does not necessarily imply that he is
years. Also, the possession not the owner thereof for certainly an owner of a
need not be peaceful. (See property can be its own administrator. (Guarin,
Arboso v. Andrade, 87 Phil. et al. v. De Vera, L-9577, Feb. 28, 1957).
782). However, the possession,
even under the old law Art. 1119. Acts of possessory character
executed in vir- tue of license or by mere
27 tolerance of the owner shall not be
available for the purposes of possession.
Art. 1118 CIVIL CODE OF THE PHILIPPINES
COMMENT:Possession by License or
Tolerance of Owner
had to be uninterrupted, actual, exclusive, and
not merely tolerated. (See Pascual v. Mina, 20
Phil. 202 and Villanueva v. Protacio, CA-GR In possession by license or tolerance, there is
7591-R, Mar. 22, 1955).] implied rec- ognition of ownership residing in
ANOTHER. (See Macaltao v. Castro, CA-GR
22408-R, Aug. 12, 1963).
(2) Additional Requisites
(a) naturally. (Arts. 1121, 1122, Civil Code). (b) Art. 1123. Civil interruption is produced by
civilly. (Arts. 1123, 1124, Civil Code). judicial sum- mons to the possessor.
If prescription is interrupted, the old possession The definition is implicit in the Article. 30
will gener- ally not be counted; the period must
begin all over again. CIVIL CODE OF THE PHILIPPINES Arts. 1124-1125
CIVIL CODE OF THE PHILIPPINES Art. 1126 Jocson, et al. v. Silos L-12998, Jul. 25, 1960
ANS.: Yes, after all, Arcadio is not protected by a FACTS: A widower sold conjugal property,
Torrens Title. He certainly is not the third person registered under his name under the Torrens
referred to in the Article. (See Sison v. Ramos, system, to an innocent purchaser for value, who
13 Phil. 54). Thus, as between Arcadio and was subsequently given or issued a new transfer
Artemio, Artemio becomes the owner at the end certificate of title, under his (the buyers) name.
of 10 years. Twenty-two years later, the heirs of the
deceased spouse (the wife) sued for annulment
of the sale with respect to one-half of the land. period.
HELD: The suit for annulment and recovery has (TS, Jan. 25, 1945).
already prescribed. The claim of
imprescriptibility would have been cor- rect if the (3) Good Faith Changing to Bad Faith
land had been registered in the name of the
husband and wife, not in the name of the
It is, however, possible that the good faith may
husband alone.
later change to bad faith. In such a case, how
many more years of possession would be
Art. 1127. The good faith of the possessor required?
consists in the reasonable belief that the
person from whom he received the thing
ANS.:
was the owner thereof, and could transmit
his owner- ship.
(a) For real property, three years of possession
in bad faith would be equivalent to one year of
COMMENT:Good Faith of Possessor
possession in good faith. (Reason: 30 years
Defined
would be required for extraordinary prescription,
but only 10 years are needed for ordinary
Note that the definition here of good faith prescription).
applies in con- nection with prescription.
(b) For personal property, two years of
Art. 1128. The conditions of good faith possession in bad faith would be equivalent to
required for possession in Articles 526, one year in good faith.
527, 528, and 529 of this Code are likewise
necessary for the determination of good
35
faith in the prescription of ownership and
other real rights.
Arts. 1129-1130 CIVIL CODE OF THE PHILIPPINES
COMMENT:(1) Other Requisites for Good
Faith (Reason: Extraordinary prescription needs 8
years; ordinary prescription, 4 years).
The requisites in the Articles mentioned must
ALL be present otherwise there is no good Art. 1129. For the purposes of prescription,
faith. there is just title when the adverse
claimant came into possession of the
property through one of the modes
34
recognized by law for the acquisition of
ownership or other real rights, but the
CIVIL CODE OF THE PHILIPPINES Art. 1128 grantor was not the owner or could not
transmit any right.
. (a) Art. 526. He is deemed a possessor in good
faith who is not aware that there exists in his COMMENT:Just Title Defined(a) The
title or mode of acquisition any flaw which definition is implied in the Article. (b) See
invalidates it. He is deemed a possessor in bad Comments under the next Article.
faith who possesses in any case contrary to the
foregoing. Mistake upon a doubtful or difficult
Art. 1130. The title for prescription must
question of law may be the basis of good faith.
be true and valid.
This Article states the rules for MOVABLES: Note the word offender. By implication,
subsequent acquirers from the offender may
. (a) ordinary prescription 4 years acquire the property by pre- scription.
. (a) ordinary prescription 10 years Art. 1137. Ownership and other real rights
over immova- bles also prescribe through
uninterrupted adverse posses- sion thereof
. (b) extraordinary prescription 30 years. (Art.
for thirty years, without need of title or of
1137, Civil Code). good faith.
. (a) The term possesses here refers to both (b) other real rights over immovables
actual and con- structive possession, since
possession in the eyes of the law does not mean (2) Period Required
that a man has to have his feet on every square
meter of land. (Ramos v. Dir. of Lands, 39 Phil. Note the period 30 years. 40
175).
CIVIL CODE OF THE PHILIPPINES Art. 1138
. (b) Notice that possession here prevails over
the title. Necessarily, if there is NO title, the
(3) What Are Not Needed
Article cannot apply.
. (a) The Article does not apply when the civil Prescription has a retroactive effect, that is, the
courts are open. In Rio y Compania v. Datu acquirer, as soon as the necessary period has
Jolkipli, L-12301, April 13, 1959, the Supreme lapsed, is considered the owner from the
Court held that the statute of limitations is BEGINNING of the possession. Thus, any encum-
suspended if during wartime, courts are not or brances made by him during said period should
cannot be kept open. However, to invoke this be considered as valid, while those of the
rule, a party must first show that the court was original owner are not binding on the acquirer by
closed or could not be opened for business as a prescription. The acquirer is also entitled to all
the fruits during said period in view of his 42
retroactive ownership. (2 Castan 254-255).
CIVIL CODE OF THE PHILIPPINES
Art. 1138. In the computation of time
necessary for pre- scription, the following Chapter 3 PRESCRIPTION OF ACTION
rules shall be observed:
Art. 1139. Actions prescribe by the mere
(1) The present possessor may complete lapse of time fixed by law.
the period necessary for prescription by
tacking his possession to that of his
COMMENT:(1) How Actions Prescribe
grantor or predecessor in interest;
Tacking is allowed only if there be privity of Art. 1139 CIVIL CODE OF THE PHILIPPINES Court
relationship between the predecessor and the may dismiss the complaint on the ground of
successor, as in the case of succession, prescription.
donation, sale, barter, etc. Thus, a mere intruder
or usurper cannot tack. (See Razote v. Razote, (Bambao, et al. v. Lednicky, et al., L-15495, Jan.
14 Phil. 182; Lacson v. Govt., 39 Phil. 63). 28, 1961).
(5) Conflict of Laws Variance of Foreign This refers to extraordinary prescription for
and Local Law Re Prescription movables. Art. 1141. Real action over
immovables prescribe after
In the case of DAlmeida v. Hagedorn (L-10804,
May 22, 1957), an action was brought in 1954 in thirty years.
the Philippines on two demand notes executed in
1942 and 1943 in Hong Kong where both debtor
This provision is without prejudice to what
and creditor were residing until liberation. The
is established for the acquisition of
Court, in applying the rule that the moratorium
ownership and other real rights by pre-
law suspended the running of the prescriptive
scription.
period and that therefore the ac- tion had not
prescribed, ruled that prescription is governed
by the law of the forum. It would seem from this 45
ruling that even if the cause of action accrued in
Hong Kong and has already prescribed under Art. 1142 CIVIL CODE OF THE PHILIPPINES
Hong Kong law, it has not yet prescribed under
Philippine law. This seems to lose sight of a COMMENT:
section of Act 190 (Code of Civil Procedure)
which states that if, by the laws of the State or
country where the cause of action arose, the Recovery of Immovables
action is barred, it is also barred in the
Philippines. In the instant case, however, there (a) This refers to extraordinary prescription for
was no proof that the claim was barred under immovables.
Hong Kong law, and it is well-settled that in the
absence of proof of the foreign law, it is (b) The possession de jure of an immovable is
presumed to be the same as Philippine law. lost, however, at the end of 10 years. (No. 4, Art.
555, Civil Code). De Jesus, et al. v. CA, et al.
44 GR 57092, Jan. 21, 1993 Prescription running
even after the effectivity of the New
CIVIL CODE OF THE PHILIPPINES Arts. 1140-1141
Civil Code on August 30, 1950, continued to be
(NOTE: The presumption has been referred to as governed by Sec. 41 of the Old Civil Code.
a proces- sual presumption).
Under the present Civil Code, the prescriptive
(6) How Long Is a Month? period re- quired for the acquisition of
immovable property is 10 years if the possession
is in good faith, and 30 years if in bad faith. Such
Quizon v. Baltazar 76 SCRA 560 open, continuous, exclusive and notorious
occupation of the dis- puted property for 30
The term month as used in a law (such as Art. years must be conclusively established.
90 of the Revised Penal Code) is understood to
refer to a 30-day month and not to a calendar Reckoned from the time she executed the
month. affidavit of ad- judication in 1961, eleven years
after the New Civil Code had taken effect,
(7) Query private respondents possession of the contested
lot is far too short of the prescriptive period of
Does a property deemed part of the public forest 30 years, consider- ing that her possession is in
pre- scribe? bad faith. The filing of the petition for recovery
of ownership and possession and quieting of title
by petitioners on Apr. 27, 1973 was well below
ANS.: An action for reversion filed by the State to
the acquisitive prescriptive period for private
recover property registered in favor of any party
respondent, which is 30 years under Art. 1141 of
which is part of the public forest or of a forest
the present Civil Code. In this case, the statutory
reservation never prescribes. (Heirs of the Late
period of prescription is deemed to have
Spouses Pedro S. Palanca and Soteranea Rafols
commenced when petitioners were made aware
Vda. De Palanca v. Republic, 500 SCRA 209
of a claim adverse to them, i.e., when the
[2006]).
affidavit of adjudication was duly registered with
the Registry of Deeds which, at the earliest may would seem to cover
be considered to be in 1974, when private
respondent was able to secure a tax declaration 47
in her name.
Art. 1143 CIVIL CODE OF THE PHILIPPINES also
Art. 1142. A mortgage action prescribes the right to demand a compulsory or legal
after ten years. easement
. (2) To bring an action to abate a public or CIVIL CODE OF THE PHILIPPINES Art. 1144
private nui-
(g) An action to compel reconveyance of
sance. property with a Tor- rens Title does NOT
prescribe if the registered owner had obtained
COMMENT:(1) Rights Not Extinguished by registration in bad faith, and the property is still
Prescription in the latters name. The reason is that the
registration is in the nature of a continuing and
subsisting trust. (Cala- diao v. Vda. de Blas, L-
(a) Two rights are indicated in the Article. [The 19063, Apr. 29, 1964). However, if the property
first right, the demanding of the right of way,
has already passed to an innocent purchaser for The liability of an employer for compensation
value, the principle of imprescriptibility does not cases un- der the Workmens Compensation Law
apply. (Ibid.). NOTE: In Gerona, et al. v. Carmen prescribes in ten (10) years.
de Guzman, et al., L-19060, May 29, 1964,
however, the Supreme Court stated that Negre v. Workmens Compensation
although there are some decisions to the con- Commission GR 43795, Apr. 15, 1985
trary, it is already settled that an action for
reconveyance of real property based upon a
A workmens compensation claim filed 8 years
constructive or implied trust, resulting from
after the employees death is well within the
fraud, may be barred by prescription. The period
statutory period to file a compensation claim,
is 4 years from the discovery of the fraud.
which is 10 years.
In 1947, Villarin executed a formal deed of sale the cause of action of private respondents had
in favor of Gabar, who immediately built a house prescribed and they are guilty of laches;
on half of the lot. Bucton took possession of the
other half, and built improvements ther- eon. it had denied private respondents claim in a
When Bucton asked for a separate title, she was letter dated Mar. 12, 1982 on the ground of
refused, and so, in 1968, she filed a complaint to concealment on the part of the decreased
compel Gabar to execute a formal deed of sale insured Faustino when he asserted in his
in her favor. The Court of Appeals ruled that the application for insurance coverage that he had
action had already prescribed because this was not been treated for indication of chest pain,
an ac- tion to enforce a written contract, and palpitation, high blood pressure, rheumatic
should have been brought within 10 years from fever, heart murmur, heart attack or other
1946, under Art. 1144 of the Civil Code. Issue: disorder of the heart or blood vessel when, in
Has the action really prescribed? fact, he was a known hypertensive since 1974;
HELD: No, the action has not really prescribed. private respondents sent a letter dated May 25,
The error of the Court of Appeals is that it 1983 re- questing for reconsideration of the
considered the execution of the receipt (in 1946) denial; and
as the basis of the action. The real basis of the
action is Buctons ownership (and possession of
the property). No enforcement of the contract of in a letter dated July 11, 1983, it reiterated its
sale is needed, because the property has already decision to deny the claim for payment of the
been delivered to Bucton, and ownership thereof proceeds more than 10 years later, or on Dec. 1,
has already been transferred by operation of law 1994, it received a letter from Jose
under Art. 1434, referring to property sold by a
person (Gabar) who subsequently becomes the 55
owner thereof. The action here there- fore is one
to quiet title, and as Bucton is in possession, the
Art. 1144 CIVIL CODE OF THE PHILIPPINES
action is imprescriptible.
ISSUE: Whether or not the complaint filed by (3) Actions Where Periods Are Not Fixed
private respondents for payment of life
insurance is already barred by prescription of Any other action whose period has not been
action. fixed in the Civil Code or in other laws, to be
counted from the time the right of action
HELD: The RTCs ruling that the cause of action accrues. (Art. 1149, Civil Code).
of pri- vate respondents had not prescribed, is
arbitrary and patently erroneous for not being Art. 1146. The following actions must be
founded on evidence on record, and, therefore, instituted within four years:
the same is void. Consequently, while the CA did
not err in upholding the Jun. 7, 1996 Order of the (1) Upon an injury to the rights of the
RTC, it committed a reversible error when it plaintiff;
declared that the RTC did not commit any grave
abuse of discretion in issuing the Order dated
Dec. 12, 1997. The CA should have granted the (2) Upon a quasi-delict.
petition for certiorari assailing said Order of Dec.
12, 1997. Said Order was issued with grave 57
abuse of discretion for being patently erroneous
and arbitrary, thus, depriving petitioner of due Art. 1146 CIVIL CODE OF THE PHILIPPINES
process.
COMMENT:(1) Actions That Prescribe in 4
The petition is partly granted. The assailed CA Years
decision dated Apr. 30, 1999 insofar only as it
upheld the Order dated Dec. 12, 1997 is
The Article enumerates two kinds.
reversed and set aside. A new judgment is en-
tered reversing and setting aside the Order
dated Dec. 12, 1997 Other actions include:
. (2) Upon a quasi-contract. (d) Action for rescission of contracts. (Art. 1389,
par. 1, Civil Code). [NOTE: In case of persons
COMMENT:(1) Actions That Prescribe in 6 under guardianship and in the case of
Years absentees, the period of prescription shall not
begin until the termination of the formers case was brought against the defendants driver
incapacity, or until the domicile of the latter is in the Justice of the Peace Court (now
known. (Art. 1389, par. 2, Civil Code).] Municipal/Metropoli- tan Trial Court) on Dec. 13,
1949. The case was, however,
. (e) Action for the annulment of a contract. (Art.
1391, par. 1, Civil Code). [NOTE: In cases of 59
intimidation, violence, or undue influence, the
period is counted from the time the vitiation Art. 1146
ceases (Art. 1391, par. 3, Civil Code); in case of
mistake or fraud, from the time of discovery of
CIVIL CODE OF THE PHILIPPINES
the same (Art. 1391, par. 4, Civil Code); and in
cases of contracts entered into by minors or
other incapacitated persons, from the time the eventually dismissed, without prejudice, by the
guardianship ceases. (Art. 1391, par. 5, Civil Court of First Instance, on Feb. 16, 1954. Having
Code).] failed to have the criminal case reinstated thru
the fiscals office, the plaintiff filed a civil action
for damages against the defendants employer.
(2) Example of Injury to the Rights of the
Plaintiff
HELD: The civil action did not prescribe, it
appear- ing that the plaintiff neither expressly
In Valencia v. Cebu Portland Cement Co., et al.,
waived the civil action nor reserved his right to
L-13715, Dec. 23, 1959, a case involving a
file a separate civil action. Because the civil
plaintiff separated from his employment for
aspect remained with the criminal case, the
alleged unjustifiable causes, the Supreme Court
period of prescription was suspended from Dec.
13, 1949 up to Feb. 16, 1954 (the period when
58 the criminal case was pending).
CIVIL CODE OF THE PHILIPPINES Art. 1146 [NOTE: The ruling stated above is correct if the
civil action is based on the CRIME. If the civil
held that the action is one for injury to the action is based on a QUASI-DELICT (which is
rights of the plaintiff, and must be brought within considered an independent civil action), the
4 years. institution of the criminal action cannot have the
effect of interrupting the civil action based on
(3) Rules for Quasi-Delicts such quasi-delict. (Paulan, et al. v. Sarabia, et
al., L-10542, Jul. 31, 1958).]
. (a) In a quasi-delict, the period begins from the
day the quasi- delict was committed. Paulan, et (4) Rule Under the Code of Civil Procedure
al. v. Sarabia, et al. L-10542, Jul. 31, 1958
FACTS: Basco was riding on a bus owned by Under the Code of Civil Procedure, an action to
defend- ant Sarabia when it collided with recover personal property, and an action for the
another truck owned by third-party defendant recovery of damages for taking, retaining, or
Lim. Basco died on Jul. 25, 1951. On Apr. 19, injuring personal property, can only be brought
1955, a complaint against Sarabia and his driver within 4 years after the right of action accrues.
was filed by the widow and heirs. On Jul. 11,
1955 (after more than 4 years from the date of Lapuz v. Sy Uy L-10079, May 17, 1957
the collision), Sarabia in turn filed a third-party
complaint against Lim and her driver. Issue:
FACTS: In a civil case between the defendant
From what time must the 4-year period be
and his wife, certain jewelries belonging to the
counted for the filing of the third-party complaint
plaintiff were alleged to have been wrongfully
from the day of the collision or from the filing
attached on Aug. 24, 1943. Unfortunately,
of the principal complaint? HELD: The period
during the liberation, the jewels were looted
begins from the day of the collision, since the
from the safe of the sheriff. On Apr. 27, 1952,
action is based on a quasi-delict. The third-party
the plaintiff filed an action for the recovery of
complaint was therefore dismissed.
the jewelries or of their value. Issue: Has the
action already prescribed?
. (b) An action for damages arising from physical
injuries be- cause of a tort must be filed within 4
HELD: The action has prescribed. Whether the
years. (See Escueta v. Fandialan, L-39675, Nov.
case is considered as one for the recovery of
29, 1974). However, when a criminal action for
personal property or one for damages based on
the same physical injuries is instituted, the civil
a tort, the plaintiff had only four years
action for recovery of civil liability arising from
the offense charged is impliedly instituted with
the criminal action, unless the offended party 60
expressly waives the civil action or reserves his
right to institute it separately. Degollacion v. Li CIVIL CODE OF THE PHILIPPINES Art. 1147
Chui L-11640, May 22, 1956 FACTS: A traffic
accident occurred on Sept. 29, 1949. A criminal from Aug. 24, 1943 or up to Aug. 24, 1947,
within which to file the action against Sy Uy. In forcible entry, the period is counted from date
of unlawful deprivation (Sec. 1, Rule 70, 1997
Art. 1147. The following actions must be Rules of Civil Procedure); in case of fraud or
filed within one year: stealth, counted from discovery of the same. In
unlawful detainer, the period is to be counted
from the date of last demand. (Sarona, et al. v.
. (1) For forcible entry and detainer;
Villegas, L-22984, Mar. 2, 1968; DBP v. Canonoy,
L-29422, Sept. 30, 1970; and Calipayan v.
. (2) For defamation. Pascual, L-22645, Sep. 18, 1967).
. (b) Action to impugn the legitimacy of a child, (4) Actions That Prescribe in Six (6) Months
the period to be counted from the recording of
the birth in the Local Civil Registry, if the (a) Action for the reduction of the price or for
husband should be in the same place, or in a rescission of a sale of real estate (by the unit
proper case, any of his heirs. (Art. 263, par. 1, area) if the vendor is unable to deliver on
Civil Code). [NOTE: If the husband or his heirs demand all that is stated in the contract. (Art.
are absent, the period shall be 18 months if they 1543, in re Art. 1539, Civil Code).
should reside in the Philippines; 2 years if
abroad; if the birth of the child is concealed, the
(b) Action for reduction of the price or for
period is to be counted from the discovery of the rescission of a sale (a cuerpo cierto) of real
fraud. (Art. 263, par. 2, Civil Code).]
estate (made with mention of bounda- ries) if the
vendor is unable to deliver all that is included
. (c) Action for the revocation of a donation on within said boundaries. (Art. 1543, in re Art.
the ground of ingratitude, the period to be 1542, Civil Code).
counted from the time the donor had knowledge
of the fact, and it was possible for him to bring
62
the action. (Art. 169, Civil Code).
Baliwag Transit, Inc. v. CA GR 57493, Jan. 7, All actions, unless an exception is provided, have
1987 a prescrip- tive period. Unless the law makes an
action imprescriptible, it is subject to bar by
prescription and the period of prescription is 5
An action upon an obligation created by law,
years from the time the right of action accrues
such as a petition filed by an employee to
when no other period is prescribed by law. The
compel the employer to remit his SSS
Civil Code provides for some rights which are not
contributions to the SSS prescribes after 10
extinguished by prescription, but an action
years from the time the right of action accrues.
against a woman who has been legally divorced
from her husband, brought by the latters
63 present wife, seeking to enjoin the former wife
from using the surname of her former husband,
Art. 1149 CIVIL CODE OF THE PHILIPPINES is not one of them. Neither is there a special law
providing for imprescriptibility.
(2) Rules in Case of Fraud
The mere fact that the supposed violation of the
. (a) The action for relief on the ground of fraud petitioners right may be a continuous one does
may be brought within 4 years from the not change the principle that the moment the
discovery of the fraud. (Art. 1391, Civil Code; breach of right or duty occurs, the right of action
and Sec. 43[3], Act 190). Thus, where the plain- accrues and the action from that moment can be
tiffs filed an action in 1953 to annul a contract of legally instituted. It is the legal possibility of
sale on the ground that they had been bringing the action which determines the
fraudulently induced to sign the same in the starting point for the computation of the period
belief that it was a mortgage, although they of prescription. The petitioner should have
discovered the fraud in 1945, the same is brought legal action immediately against the
barred. (Raymundo v. Afable, L-7651, Feb. 28, private respondent after she gained knowledge
1955). A subsequent action by the same of the use by the private respondent of the
plaintiffs against the same defendants for the surname of her former husband.
recovery of title and possession of the real
property, subject matter of the aforementioned (2) Examples
contract of sale is likewise barred. While it may
be true that the recovery of the title and (a) Action to impugn the recognition of a natural
possession of the lot were ultimate objectives of child. (Art. 296, Civil Code).
the plaintiffs, still to attain that goal, they must
first travel over the road of relief on the ground
(b) Action to impugn the legitimation of a child.
of fraud. (Rone v. Claro and Baquiring, 91 Phil.
(Art. 275, Civil Code).
250). Indeed, the plain- tiffs cannot be declared
as still the owners of the property, entitled to its
possession, without annulling the contract of (c) Action to reduce inofficious donations (to be
sale. Said contract cannot be annulled without counted from the death of the donor). (See Art.
declar- ing it fraudulent, and annulment on this 772, Civil Code). [NOTE: Castan believes,
ground cannot be done anymore in view of the however, that the period for this is 4 years, not 5
prescription. (Raymundo v. De Guzman, L- years, applying the rule for rescissi- ble
109020, Dec. 29, 1959). contracts under Art. 1389 of the Civil Code. (4
Castan 194).]
. (b) An action for reconveyance of land, for
which a patent had been issued to the defendant (3) Query (Re Validity of Stipulation
by reason of fraudulent statements, is one based Concerning Period)
on fraud, and must be instituted within 4 years
from the discovery of the fraudulent state- May the parties stipulate when action for court
ments made in the application. (Rosario v. Aud. enforcement may be brought?
Gen., L-11817, April 30, 1958; Jean v. Agregado,
L-7921, Sept. 28, 1955).
65 one thing; right to have is another. It was only
from the time of denial of registration that the
Art. 1150 cause of action ac- crued. (Lee E. Won v. Wack
Wack Golf and Country Club, L-10122, Aug. 30,
1958).
CIVIL CODE OF THE PHILIPPINES
Art. 1150. The time for prescription for all FACTS: A promise to pay within one year was
kinds of actions, when there is no special
made. At the option of the creditor, the period
provision which ordains otherwise, shall be could be extended for one year. The debtor
counted from the day they may be brought.
failed to pay, and the creditor failed to demand.
Issue: From what time will the prescriptive period
COMMENT:(1) From What Time Period Is to run?
Be Counted
HELD: Mere delay by the debtors and failure to
Note that the period shall be counted from the demand by the creditor does not mean that the
day the ac- tion may be brought, except if there extension of one year had been granted.
is a special provision that ordains otherwise. Therefore, since the debt became due at the end
of the original year, the prescriptive period
(2) Reason for the Law should commence from said end of the first year.
One cannot be said to begin sleeping on his Varela v. Marajas, et al. L-19215, Apr. 30,
rights, if such rights have not yet accrued. Thus, 1958
the starting point is the legal possibility. (TS,
May 8, 1903). FACTS: The heirs of a deceased person settled
the estate in a written agreement dated Feb. 14,
(3) Examples 1941, providing that one of them would pay an
absent heir, upon the reappearance of the latter.
. (a) In an action based on a quasi-delict because Said absent heir returned to the Philippines from
of a traffic collision from the day of the the United States in November, 1945. He
collision. (Paulan, et al. v. Sarabia, et al., L- immediately asked
10542, Jul. 3, 1958).
67
. (b) In a promissory note with a maturity date,
from the date of such maturity. (See Varela v. Art. 1150 CIVIL CODE OF THE PHILIPPINES
Marajas, et al., L-10215, Apr. 30, 1958).
for his share, but was not paid. He then filed the
. (c) In a collection for the unpaid balance of complaint for payment of his share on Dec. 6,
subscribed corpora- tion shares, from the date of 1954. Issue: From what time should the
demand or call by the Board of Directors. (Garcia prescriptive period be counted?
v. Suarez, 67 Phil. 441).
HELD: The prescriptive period should be counted
66 from November, 1945, when he presented
himself for payment but was not paid. Hence,
CIVIL CODE OF THE PHILIPPINES Art. 1150 the action has not yet prescribed. It is unfair to
begin computing from 1941 when the agreement
was made. This is so, because the agreement
. (d) In an action to compel the registration of an provided for payment upon his appearance, and
assigned mem- bership certificate in a non-stock no period was fixed for said purposes. The
corporation, the period runs not from the date of situation is similar to that of a debt evidenced by
assignment, but from the date of denial of a written document payable within a stated
registration. Reason: The existence of a right is period, where the cause of action would accrue
only upon the expiration of the stipulated period COMMENT:Obligations to Pay Principal With
in case payment is not made certainly, not Interest or Annuity
from the date of the agreement.
Example: If a matured debt is recognized later
Intestate Estate of Francisco Ubat, et al. v. by the pay- ment of interest, the prescriptive
Atanasia Ubat de Montes, PNB, et al. L- period begins, not from the date of maturity, but
11633, Jan. 31, 1961 from the last payment of said interest. (See
Obras Pias v. Devera Ignacio, 17 Phil. 45).
FACTS: Eduardo Ubat borrowed P460 from the
Philippine National Bank in 1936, payable on or Art. 1152. The period for prescription of
before the 7th day of October, 1946. The actions to de- mand the fulfillment of
contract further provided that the payment obligations declared by a judgment
shall be made in 10 equal yearly installments. commences from the time the judgment
Suit for the whole amount was brought in 1954 became final.
since not a single install- ment had been paid.
Issue: Has the debt prescribed? COMMENT:Obligations Declared by a
Judgment
HELD: Under Art. 1150 of the new Civil Code, the
prescrip- tive period starts from the time creditor The Article explains itself. 69
may file an action, not from the time he wishes
to do so. The payment of yearly install- ments
Art. 1152 CIVIL CODE OF THE PHILIPPINES
was mandatory because of the phrase shall be
made. Therefore, the prescriptive period for
EACH installment should start from the time it Luzon Surety Co. v. IAC GR 72645, Jun. 30,
became due. However, considering the 1987
suspensive effect of the Moratorium Law, only
the first five in- stallments have prescribed. The It is now settled that the ten-year period within
others may still be recovered. which an action for revival of a judgment should
be brought, commences to run from the date of
Castrillo v. Court L-18046, Mar. 31, 1964 finality of the judgment, and not from the
expiration of the five-year period within which
the judgment may be enforced by mere motion.
The prescriptive period within which to ask for a
declara- tion of co-ownership in a parcel of land
covered by a Torrens Three (3) reasons were advanced, to wit:
(a) If the debtor was a WAR DAMAGE claimant, Dole Phils., Inc. v. Maritime Co. of the
the period of prescription was suspended from Phils. GR 61352, Feb. 27, 1987
Mar. 10, 1945 (Ex. Order No. 32) to May 18,
1953 (when the decision in Rutter v. Esteban, 49 In a case governed by the Carriage of Goods by
O.G. 1807, holding unconstitutional the further Sea Act, the general provisions of the Code of
operation of Rep. Act 342 became operative). Civil Procedure on Prescrip-
[Note that in said Rutter case, the Moratorium
Law was not declared void ab initio; the Court
74
only held that its continued operation and
enforcement had already become unreasonable
and oppressive. Said law therefore suspended CIVIL CODE OF THE PHILIPPINES Art. 1155
the Statute of
tion should not be made to apply. Similarly, in
73 such a case, Art. 1155 cannot be made to apply,
as such application would have the effect of
extending the one-year period of prescription
Art. 1155
fixed in the law. It is desirable that matters
affecting transportation of goods by sea be
CIVIL CODE OF THE PHILIPPINES decided in as short a time as possible. Thus, the
application of Art. 1155 would unnecessarily
(b) extend the period and permit delays in the
settlement of question affecting transportation,
Limitations, and no action for collection could be contrary to the clear intent and purpose of the
main- tained during the period when it was still law.
in effect. (Vda. de Quiambao v. Manila Motor Co.,
Inc., L-17384, Jan. 30, 1962).] Whether or not the (8) Rule in Taxation Cases
creditor actually brought his suit before or after
the Rutter decision, the period for the The motion for reconsideration of a decision of
enforcement of the credit was tolled or the Collector of Internal Revenue suspends the
suspended. (Ibid.). The presumption is that the running of the prescriptive period within which
creditor was a war damage claimant. (Rio y the taxpayer may appeal to the Court of Tax
Compania v. Court of Appeals, L-15666, Jun. 30, Appeals; and the period resumes its running the
1962). day following the receipt by the taxpayer of the
Collectors denial of said mo- tion. (Collector of the cause of action for the fixing of the period of
Internal Revenue v. Convention of Philippine lease accrued. This is as it should be because
Baptist Churches, L-11807, Jan. 28, 1961). prior to that, the validity of the second contract
of lease was being challenged. The case for
(9) Effect of a Motion for Reconsideration unlawful detainer filed by the plaintiff-appellee
became in fact a case questioning the validity of
the second contract on the grounds that the said
A motion for reconsideration on the ground that contract was simulated and that there was no
the decision is completely against the evidence
consideration. The plaintiff-appellee could not
and the law, without pointing out the finding and have been expected to file an action for the
pronouncement made in the judgment that were
fixing of the period of the lease before the Court
allegedly contrary to the evidence and the law is of Appeals promulgated its decision because she
pro forma and does not stop the running of the
was not yet aware that the said paragraph of the
period within which to ap- peal (Valdez v. Jugo, second contract was a provision that called for
74 Phil. 49 and Villalon v. Ysip, 53 O.G. 1094);
an indefinite period. For the reason that the very
and the fact that before entry of the order existence, and subsequently, the interpretation
denying the motion for reconsideration, the
of the second contract of lease, particularly par.
movants filed a pleading where they pointed out 3 thereof, were put in issue in the unlawful
the fraud allegedly committed, does not cure the
detainer case, the court trying the case was
defect of such motion. (Garganta, et al. v. Court required to interpret the provisions of, and
of Appeals, et al., L-12104, Mar. 31, 1959).
consequently, rule on the validity of, the said
contract.
(10) Some Cases
PDCP v. IACGR 73198, Sept. 2, 1992
Buccat v. Dispo L-44338, Apr. 15, 1988
As to petitioners contention that the cause of
In order to resolve whether or not the present action of respondent is barred by prescription
action has prescribed, it is necessary to first and that there is a pending case before the
determine when the right of action for the fixing Davao RTC with the same cause of action, be it
of the period of lease accrued. Should it be noted that litis pendentia cannot apply in an
instance where there is no identity of parties.
75
In the case at bar, records show and as admitted
Art. 1155 CIVIL CODE OF THE PHILIPPINES by pe- titioner, the action filed in the Manila RTC
was against the respondent while the case filed
reckoned from the time when the parties entered in the Davao RTC was against DATICOR, the
into the second contract of lease which was on president of which is the respondent. The first
Aug. 1959 as the defendants-ap- pellants claim, case is against a natural person, while the
or at the time when the decision of the Court of second, is against a juridical person.
Appeals upholding the validity of the second
contract of lease was promulgated which was on 76
Nov. 1972 as the plaintiff-ap- pellee claims?