G.R. No. 127745. April 22, 2003.

* Same; Testimonial Evidence; Hearsay Rule; Exception; Dead

Man’s Statute; The Dead Man’s Statute renders incompetent
FELICITO G. SANSON, CELEDONIA SANSON-SAQUIN, certain persons from testifying.—As for the administratrix’s
ANGELES A. MONTINOLA, EDUARDO A. MONTINOLA, invocation of the Dead Man’s Stat-
JR., petitioners-appellants, vs. HONORABLE COURT OF
APPEALS, FOURTH DIVISION and MELECIA T. SY, As _______________
Administratrix of the Intestate Estate of the Late Juan Bon Fing
Sy, respondents-appellees. *
THIRD DIVISION.
Evidence; Witnesses; Relationship; Relationship to a party has
350
never been recognized as an adverse factor in determining
either the credibility of the witness or the admissibility of the
testimony.—Relationship to a party has never been recognized 350 SUPREME COURT REPORTS ANNOTATED
as an adverse factor in determining either the credibility of the Sanson vs. Court of Appeals
witness or—subject only to well recognized exceptions none of
which is here present—the admissibility of the testimony. At ute, the same does not likewise lie. The rule renders
most, closeness of relationship to a party, or bias, may indicate incompetent: 1) parties to a case; 2) their assignors; or 3)
the need for a little more caution in the assessment of a persons in whose behalf a case is prosecuted. x x x The rule is
witness’ testimony but is not necessarily a negative element exclusive and cannot be construed to extend its scope by
which should be taken as diminishing the credit otherwise implication so as to disqualify persons not mentioned therein.
accorded to it. Mere witnesses who are not included in the above enumeration
are not prohibited from testifying as to a conversation or
Same; Documentary Evidence; Genuineness of Signature; transaction between the deceased and a third person, if he took
Deceased presumed to be a party to the check for value by no active part therein. x x x
proof of the genuineness of the deceased’s signature.—The
genuineness of the deceased’s signature having been shown, he Same; Same; Same; Same; Same; What the Dead Man’s
is prima facie presumed to have become a party to the check Statute proscribes is the admission of testimonial evidence
for value, following Section 24 of the Negotiable Instruments upon a claim which arose before the death of the deceased.—
Law which reads: Section 24. Presumption of Consideration.— In any event, what the Dead Man’s Statute proscribes is the
Every negotiable instrument is deemed prima facie to have admission of testimonial evidence upon a claim which arose
been issued for a valuable consideration; and every person before the death of the deceased. The incompetency is confined
whose signature appears thereon to have become a party to the giving of testimony. Since the separate claims of Sanson
thereto for value. and Celedonia are supported by checks-documentary evidence,
their claims can be prosecuted on the bases of said checks.
PETITION for review on certiorari of the decision and 351
resolution of the Court of Appeals.
VOL. 401, APRIL 22, 2003 351
The facts are stated in the opinion of the Court. Sanson vs. Court of Appeals
Jerry P. Trenas and Efrain B. Trenas for petitioners.
estate, alleging that the deceased owed them P50,000.00 and
P150,000.00, respectively.2
Tirol and Tirol for private respondent.
By Order of February 12, 1991, Branch 28 of the Iloilo RTC to
CARPIO-MORALES, J.:
which the petition was raffled, appointed Melecia T. Sy,
surviving spouse of the deceased, as administratrix of his
Before this Court is a petition for review on certiorari under
estate, following which she was issued letters of
Rule 45 of the Rules of Court assailing the Court of Appeals
administration.3
Decision of May 31, 1996 and Resolution of December 9,
1996.
During the hearing of the claims against the estate, Sanson,
Celedonia, and Jade Montinola, wife of claimant Eduardo
On February 7, 1990, herein petitioner-appellant Felicito G.
Montinola, Jr., testified on the transactions that gave rise
Sanson (Sanson), in his capacity as creditor, filed before the
thereto, over the objection of the administratrix who invoked
Regional Trial Court (RTC) of Iloilo City a petition, docketed
Section 23, Rule 130 of the Revised Rules of Court otherwise
as Special Proceedings No. 4497, for the settlement of the
known as the Dead Man’s Statute which reads:
estate of Juan Bon Fing Sy (the deceased) who died on January
10, 1990. Sanson claimed that the deceased was indebted to
SEC. 23. Disqualification by reason of death or insanity of
him in the amount of P603,000.00 and to his sister Celedonia
adverse party.—Parties or assignors of parties to a case, or
Sanson-Saquin (Celedonia) in the amount of P360,000.00.1
persons in whose behalf a case is prosecuted, against an
executor or administrator or other representative of a deceased
Petitioners-appellants Eduardo Montinola, Jr. and his mother
person, or against a person of unsound mind, upon a claim or
Angeles Montinola (Angeles) later filed separate claims against
demand against the estate of such deceased person or against
the
such person of unsound mind, cannot testify as to any matter of
fact occurring before the death of such deceased person or
_______________
before such person became of unsound mind. (Emphasis
1 supplied)
Rollo at pp. 7-8.
Sanson, in support of the claim of his sister Celedonia, testified Sanson vs. Court of Appeals
that she had a transaction with the deceased which is evidenced
by six checks4 issued by him before his death; before the presented the checks to the bank for payment but were returned
deceased died, Celedonia tried to enforce settlement of the due to the closure of his account.8
checks from his (the deceased’s) son Jeny who told her that his
father would settle them once he got well but he never did; and Jade, in support of the claims of her husband Eduardo
after the death of the deceased, Celedonia presented the checks Montinola, Jr. and mother-in-law Angeles, testified that on
to the bank for payment but were dishonored5 due to the separate occasions, the deceased borrowed P50,000 and
closure of his account.6 P150,000 from her husband and mother-in-law, respectively, as
shown by three checks issued by the deceased,9 two to Angeles
Celedonia, in support of the claim of her brother Sanson, and the other10 to Eduardo Montinola, Jr.; before the deceased
testified that she knew that the deceased issued five checks7 to died or sometime in August 1989, they advised him that they
Sanson in settlement of a debt; and after the death of the would be depositing the checks, but he told them not to as he
deceased, Sanson would pay them cash, but he never did; and after the deceased
died on January 10, 1990, they deposited the checks but were
_______________ dishonored as the account against which they were drawn was
2
closed,11 hence, their legal counsel sent a demand letter12 dated
Id., at pp. 8, 33. February 6, 1990 addressed to the deceased’s heirs Melicia,
James, Mini and Jerry Sy, and Symmels I & II but the checks
3
Id., at p. 34. have remained unsettled.13
4
Exhibits “A”-“G”—Saquin. The administratrix, denying having any knowledge or
information sufficient to form a belief as to the truth of the
5
Transcript of Stenographic Notes (TSN), September 16, 1992 claims, nevertheless alleged that if they ever existed, they had
at pp. 4-5. been paid and extinguished, are usurious and illegal and are, in
any event, barred by prescription.14 And she objected to the
6
Exhibits “A-1”-“G-1”. admission of the checks and check return slips-exhibits offered
in evidence by the claimants upon the ground that the witnesses
7
Exhibits “A”-“E”—Sanson. who testified thereon are disqualified under the Dead Man’s
Statute.
352
Specifically with respect to the checks-exhibits identified by
352 SUPREME COURT REPORTS ANNOTATED Jade, the administratrix asserted that they are inadmissible
because Jade is the daughter-in-law of claimant Angeles and At all events, the administratrix denied that the checks-exhibits
wife of claimant Eduardo Montinola, Jr., hence, she is covered were issued by the deceased and that the return slips were
by the above-said rule on disqualification. issued by the depository/clearing bank.15

_______________ After the claimants rested their case, the administratrix filed
four separate manifestations informing the trial court that she
8
TSN, October 1, 1992 at pp. 2-5. was dispensing with the presentation of evidence against their
claims.16
9
Exhibits “A” and “B”—Angeles Montinola.
Finding that the Dead Man’s Statute does not apply to the
10
Exhibit “A”—Eduardo Montinola. witnesses who testified in support of the subject claims against
the estate, the trial court issued an Order of December 8,
11
Exhibits “A-1” and “B-1”—Angeles Montinola; Exhibit 1993,17 the dispositive portion of which reads:
“C”—Eduardo Montinola.
“WHEREFORE, Judicial Administratrix Melecia T. Sy, is
Exhibit “D”—Angeles Montinola; Exhibit “B”—Eduardo
12 hereby ordered, to pay, in due course of administration,
Montinola. creditors-claimants Felicito G. Sanson, in the amount of
P603,500.00; Celedonia S. Saquin, in the amount of
13
TSN, September 18, 1992 at pp. 4-9. P315,000.00;18 Angeles A. Montinola, in the amount of
P150,000.00 and Eduardo Montinola, Jr., in the amount of
14 P50,000.00, from the assets and/or properties of the above-
Joint Record on Appeal Against the Order Granting the
Claims of Angeles A. Montinola and Eduardo A. Montinola, Jr. entitled intestate estate.”
at pp. 15 and 21; Joint Record on Appeal Against the Order
Granting the Claims of Felicito Sanson and Celedonia Sanson- On appeal by the administratrix upon the following assignment
Saquin at pp. 15 and 23. of errors:

353 I.

VOL. 401, APRIL 22, 2003 353 THE LOWER COURT ERRED IN NOT DISMISSING THE
CLAIM[S] FOR FAILURE TO PAY THE FILING FEES
Sanson vs. Court of Appeals
THEREON

II.
THE LOWER COURT ERRED IN NOT DISMISSING THE IV.
CLAIM[S] BECAUSE [THEY ARE] ALREADY BARRED
BY THE LAW OF LIMITATIONS OR STATUTE OF NON- THE ALLEGED CHECKS ARE INADMISSIBLE AS
CLAIMS PRIVATE DOCUMENTS,19

III. the Court of Appeals set aside the December 8, 1993 Order of
the trial court, by Decision of May 31, 1996, disposing as
THE LOWER COURT ERRED IN NOT HOLDING THAT follows:
CLAIMANT[S’] EVIDENCE OF THE CLAIM IS
INCOMPETENT UNDER THE DEAD MAN’S STATUTE, “WHEREFORE, the order appealed from is hereby set aside
AND INADMISSIBLE and another order is entered dismissing the claims of:

_______________ 1. 1. Felicito G. Sanson, in the amount of P603,500.00;

2. 2. Celdonia S. Saquin, in the amount of P315,000.00;20
15
Joint Record on Appeal Against the Order Granting the 3. 3. Angeles A. Montinola, in the amount of
Claims of Angeles A. Montinola and Eduardo A. Montinola, Jr. P150,000.00; and
at 16-17; Joint Record on Appeal Against the Order Granting 4. 4. Eduardo Montinola, Jr., in the amount of P50,000.00
the Claims of Felicito Sanson and Celedonia Sanson-Saquin at against the estate of the deceased JUAN BON FING
pp. 18 and 24. SY.
16
Rollo at p. 43. No pronouncement as to costs.
17
Id., at pp. 32-47. SO ORDERED.” (Italics supplied)
18
It is noted that the total amount of checks-exhibits of The claimants’ Motion for Reconsideration21 of the Court of
Celedonia Sanson-Saquin is P360,000.00. She did not, Appeals decision having been denied by Resolution of
however, move to reconsider the amount of P315,000.00 December 9, 1996,22 they filed the present petition anchored on
ordered to be paid to her. the following assigned errors:

354 FIRST ASSIGNED ERROR

354 SUPREME COURT REPORTS ANNOTATED RESPONDENT COURT OF APPEALS, 4TH DIVISION,
Sanson vs. Court of Appeals ERRED IN FINDING THAT THE TESTIMONY OF JADE
MONTINOLA IS INSUFFICIENT TO PROVE THE CLAIMS deceased (as well as the check return slips issued by the
OF CLAIMANTS ANGELES A. MONTINOLA AND clearing bank), it was error for the Court of Appeals to find the
EDUARDO A. MONTINOLA, JR. evidence of the Montinolas insufficient to prove their claims.

SECOND ASSIGNED ERROR The administratrix counters that the due execution and
authenticity of the checks-exhibits of the Montinolas were not
RESPONDENT COURT OF APPEALS, 4TH DIVISION, duly proven since Jade did not categorically state that she saw
ERRED IN FINDING THAT CLAIMANT FELICITO G. the filling up and signing of the checks by the deceased, hence,
SANSON IS DISQUALIFIED TO TESTIFY [ON] THE her testimony is self-serving; besides, as Jade had identical and
CLAIM OF CELEDONIA SANSON-SA[Q]UIN AND VI[C]E unitary interest with her husband and mother-in-law, her
VERSA. (Italics in the original)23 testimony was a circumvention of the Dead Man’s Statute.24

_______________ The administratrix’s counter-argument does not lie.

Relationship to a party has never been recognized as an adverse
19
Court of Appeals (CA) Rollo at pp. 40-41, 100-101. factor in determining either the credibility of the witness or—
subject only to well recognized exceptions none of which is
20 here present—the admissibility of the testimony. At most,
Vide footnote 18.
closeness of relationship to a party, or bias, may indicate the
21
Rollo at pp. 72-96. need for a little more caution in the assessment of a witness’
testimony but is not necessarily a negative element which
22 should be taken as diminishing the credit otherwise accorded to
Id., at p. 99.
it.25
23
Id., at p. 12.
Jade’s testimony on the genuineness of the deceased’s
355 signature on the checks-exhibits of the Montinolas is clear:

VOL. 401, APRIL 22, 2003 355 xxx

Sanson vs. Court of Appeals Q: Showing to you this check dated July 16, 1989, Far East
Bank and Trust Company Check No. 84262, in the amount
With respect to the first assigned error, petitioners argue that of P100,000.00, is this the check you are referring to?
since the administratrix did not deny the testimony of Jade nor A: Yes, sir.
present any evidence to controvert it, and neither did she deny
the execution and genuineness of the checks issued by the
Q: There appears a signature in the face of the check. Whose Q: Whose signature is this appearing on the face of this
signature is this? check?
A: That is the signature of Mr. Sy. A: Mr. Sy’s signature.
Q: Why do you know that this is the signature of Mr. Sy? Q: Why do you know that it is his signature?
A: Because he signed this check I was . . . I was present when A: I was there when he signed the same.
he signed this check. x x x26 (Emphasis supplied)
xxx
The genuineness of the deceased’s signature having been
_______________ shown, he is prima facie presumed to have become a party to
the check for value, following Section 24 of the Negotiable
24
Id., at pp. 127-129. Instruments Law which reads:
25
People v. Bandoquillo, 167 SCRA 549 (1988). Section 24. Presumption of Consideration.—Every negotiable
instrument is deemed prima facie to have been issued for a
356 valuable consideration; and every person whose signature
appears thereon to have become a party thereto for value.
356 SUPREME COURT REPORTS ANNOTATED (Underscoring and italics in the original; emphasis supplied),
Sanson vs. Court of Appeals
Since, with respect to the checks issued to the Montinolas, the
Q: Showing to you this check dated September 8, 1989, is prima facie presumption was not rebutted or contradicted by
this the check you are referring to? the administratrix who expressly manifested that she was
A: Yes, sir. dispensing with the presentation of evidence against their
Q: Why do you know that this is his signature? claims, it has become conclusive.
A: I was there when he signed the same.
As for the administratrix’s invocation of the Dead Man’s
xxx
Statute, the same does not likewise lie. The rule renders
Q: Showing to you this Far East Bank and Trust Company incompetent: 1) parties to a case; 2) their assignors; or 3)
Check No. 84262 dated July 6, 1989, in the amount of persons in whose behalf a case is prosecuted.
P50,000.00, in the name of Eduardo Montinola, are you
referring to this check? _______________
A: Yes, sir.
26
TSN, September 18, 1992 at pp. 2-7.
357 The administratrix, on the other hand, cites the ruling of the
Court of Appeals in its decision on review, the pertinent
VOL. 401, APRIL 22, 2003 357 portion of which reads:
Sanson vs. Court of Appeals
The more logical interpretation is to prohibit parties to a case,
with like interest, from testifying in each other’s favor as to
xxx
acts occurring prior to the death of the deceased.
The rule is exclusive and cannot be construed to extend its
Since the law disqualifies parties to a case or assignors to a
scope by implication so as to disqualify persons not mentioned
case without distinguishing between testimony in his own
therein. Mere witnesses who are not included in the above
behalf and that in behalf of others, he should be disqualified
enumeration are not prohibited from testifying as to a
from testifying for his co-parties. The law speaks of “parties or
conversation or transaction between the deceased and a third
assignors of parties to a case.” Apparently, the testimonies of
person, if he took no active part therein.
Sanson and Saquin on each other’s behalf, as co-parties to the
same case, falls under the prohibition. (Citation omitted; italics
x x x27 (Italics supplied) in the original and emphasis supplied)
Jade is not a party to the case. Neither is she an assignor nor a _______________
person in whose behalf the case is being prosecuted. She
testified as a witness to the transaction. In transactions similar 27
Jovito R. Salonga, PHILIPPINE LAW ON EVIDENCE, 3rd
to those involved in the case at bar, the witnesses are
Edition, 1964 at p. 194.
commonly family members or relatives of the parties. Should
their testimonies be excluded due to their apparent interest as a 28
Rollo at p. 17.
result of their relationship to the parties, there would be a
dearth of evidence to prove the transactions. In any event, as
358
will be discussed later, independently of the testimony of Jade,
the claims of the Montinolas would still prosper on the basis of
their documentary evidence—the checks. 358 SUPREME COURT REPORTS ANNOTATED
Sanson vs. Court of Appeals
As to the second assigned error, petitioners argue that the But Sanson’s and Celedonia’s claims against the same estate
testimonies of Sanson and Celedonia as witnesses to each arosefrom separate transactions. Sanson is a third party with
other’s claim against the deceased are not covered by the Dead respect toCeledonia’s claim. And Celedonia is a third party
Man’s Statute;28 besides, the administratrix waived the with respect toSanson’s claim. One is not thus disqualified to
application of the law when she cross-examined them. testify on the other’stransaction.
In any event, what the Dead Man’s Statute proscribes is the are the checks that you said was (sic) issued by the late
admission of testimonial evidence upon a claim which arose Juan Bon Fing Sy in favor of your sister?
before the death of the deceased. The incompetency is confined A: Yes, these are the same che[c]ks.
to the giving of testimony.29 Since the separate claims of
Sanson and Celedonia are supported by checks-documentary
_______________
evidence, their claims can be prosecuted on the bases of said
checks. 29
Vide Martin’s Rules of Court in the Philippines, Vol. 5, p.
158 (1996).
This brings this Court to the matter of the authenticity of the
signature of the deceased appearing on the checks issued to 30
TSN, October 1, 1992 at p. 3.
Sanson and Celedonia. By Celedonia’s account, she “knows”
the signature of the deceased.
359
xxx
VOL. 401, APRIL 359
Q: Showing to you these checks already marked as Exhibit 22, 2003
“A” to “E”, please go over these checks if you know the
Sanson vs. Court of Appeals
signatures of the late Juan Bon Fing Sy on these checks?
Q: Do you know the signature of the late
A: Yes, sir.
Juan Bon Fing Sy?
Q: Insofar as the amount that he borrowed from you, he also
A: Yes, sir.
issued checks?
Q: And these signatures are the same
A: Yes, sir.
signatures that you know?
Q: And therefore, you know his signature?
A: Yes, sir.
A: Yes, sir.
x x x31
x x x30
While the foregoing testimonies of the Sanson siblings have
Sanson testified too that he “knows” the signature of the not faithfully discharged the quantum of proof under Section
deceased: 22, Rule 132 of the Revised Rules on Evidence which reads:

xxx Section 22. How genuineness of handwriting proved.—The

Q: I show you now checks which were already marked as handwriting of a person may be proved by any witness who
Exhibit “A” to “G-1”—Saquin, please go over this if these believes it to be the handwriting of such person because he has
seen the person write, or has seen writing purporting to be his admitted or treated as genuine by the party against whom the
upon which the witness has acted or been charged and has thus evidence is offered, or proved to be genuine to the satisfaction
acquired knowledge of the handwriting of such person. x x x of the judge.

not only did the administratrix fail to controvert the same; from xxx
a comparison32 with the naked eye of the deceased’s signature
appearing on each of the checks-exhibits of the Montinolas 360
with that of the checks-exhibits of the Sanson siblings all of
which checks were drawn from the same account, they appear 360 SUPREME COURT REPORTS ANNOTATED
to have been affixed by one and the same hand. Arbolario vs. Court of Appeals
In fine, as the claimants-herein petitioners have, by their
evidence, substantiated their claims against the estate of the 1. 1) Felicito G. Sanson, the amount of P603,500.00;
deceased, the burden of evidence had shifted to the 2. 2) Celedonia S. Saquin, the amount of P315,000.00;33
administratrix who, however, expressly opted not to discharge 3. 3) Angeles Montinola, the amount of P150,000.00; and
the same when she manifested that she was dispensing with the 4. 4) Eduardo Montinola, Jr., the amount of P50,000.00.
presentation of evidence against the claims. representing unsettled checks issued by the deceased.

WHEREFORE, the impugned May 31, 1996 Decision of the SO ORDERED.

Court of Appeals is hereby SET ASIDE and another rendered
ordering the intestate estate of the late Juan Bon Fing Sy,
through Administratrix Melecia T. Sy, to pay:

_______________
31
TSN, September 16, 1992 at p. 4.
32
Sec. 22 of Rule 132 provides:

xxx

Evidence respecting the handwriting may also be given by a

comparison, made by the witness or the court, with writings