Marquez Vs Espejo
Marquez Vs Espejo
Marquez Vs Espejo
ESPEJO
Facts: Respondent Espejos were the original owners of 2 parcels of land Lantap Property and
Murong Property. The former (LP) was tenanted by respondent Nemi Fernandez, husband of
respondent Elenita Espejo, while the latter (MP) is tenanted by petitioners Marquez and dela
Cruz.
The respondents mortgaged both properties to Rural Bank of Bayombong, Inc (RBBI). Upon
failure to pay the loans, the said properties were foreclosed and sold to RBBI. Transfer certificate
titles were issued in the name of the said bank.
TCT No. T62096 for Murong Property
TCT No. T 62836 for the Lantap Property
After a month, Respondent Espejos bought back one of their lots from RBBI. The lot that they
want to repurchase is the Lantap Property, which was still tenanted by respondent Nemi
Fernandez. However, the Deed of Sale mentioned TCT No. 62096 as the subject property which
refers to the Murong Property, which was still tenanted by the petitioners.
Meanwhile, pursuant to RA 6657, RBBI executed separate Deed of Voluntary Land Transfer
(VLT) in favor of petitioners Marquez and dela Cruz. Both the VLTs mentioned an agricultural
land located in Brgy. Murong as the subject property but the TCT No. Or the the title mentioned
therein refers to the Lantap Property. Certificate of Land Ownership Awards (CLOAs) were
issued.
After more than 10 years, respondents filed a complaint before the Regional Agrarian reform
Adjudicator (RARAD) for the cancellation of petitioners’ CLOAs. Petitioners answered,
insisting, that they bought the Murong property as farmerbeneficiaries and that the property that
was repurchased by the respondents was actually the Lantap property as evidenced by the
continued occupation of respondent Nemi Fernandez therein. RBBI, also, answered that it was,
indeed, the Lantap Property which was subject of the buyback transaction with the respondents.
The OIC RARAD gave precedence to the TCT numbers which appeared on the Deed of Sale,
VLTs and CLOAs. Since TCT no. T 62096 appeared on respondents’ deed of sale, which refers
to Murong Property, the subject of sale is, indeed, the Murong Property. On the other hand, since
TCT No. T62836 appeared on petitioners’ VLTs and CLOAs, which refers to Lantap Property,
the subject of sale is, indeed, the Lantap property.
Upon appeal, DARAB reversed the decision of the OIC RARAD. It ruled that the presumption
of regular performance of duty prevails. Therefore, since petitioners are the actual tillers of the
Murong Property, which was admitted by the respondents, hence, the petitioners are the qualified
beneficiaries thereof.
However, the CA did not agree with the RARAD’s decision. It ruled that, using the Best
Evidence Rule Rule 130, Sec. 3, the Deed of Sale is the best evidence as to its contents,
particularly the description of the land which was the object of the sale. Since the Deed of Sale
expressed that its subject is the land covered by TCT No. T62096 the Murong property then that
is the property that the respondents repurchased. As for petitioners VLTs, the same refer to the
property with TCT No. T62836; thus, the subject of their CLOAs is the Lantap property. The
additional description in the VLTs that the subject thereof is located in Barangay Murong was
considered to be a mere typographical error. The CA ruled that the technical description
contained in the TCT is more accurate in identifying the subject property since the same
particularly describes the properties metes and bounds. Hence, the appeal to the SC.
Petitioners argue that the CA erred in using the best evidence rule to determine the subject of the
Deed of Sale, VLTs and CLOAs. They maintain that the issue in the case is not the contents of
the contracts but the intention of the parties that was not adequately expressed in their
contracts. Moreover, they argue that it is the Parol Evidence Rule that should be applied in order
to adequately resolve the dispute.
Issue: Whether or not the CA erred in applying the Best Evidence Rule in the case.
Held. Yes. The CA erred in its application of the Best Evidence Rule. The Best Evidence Rule
states that when the subject of inquiry is the contents of a document, the best evidence is
the original document itself and no other evidence (such as a reproduction, photocopy or oral
evidence) is admissible as a general rule. The original is preferred because it reduces the chance
of undetected tampering with the document.
In the instant case, there is no room for the application of the Best Evidence Rule because there is
no dispute regarding the contents of the documents. It is admitted by the parties that the
respondents Deed of Sale referred to TCT No. T62096 as its subject; while the petitioners Deeds
of Voluntary Land Transfer referred to TCT No. T62836 as its subject, which is further
described as located in Barangay Murong.
The real issue is whether the admitted contents of these documents adequately and correctly
express the true intention of the parties. As to the Deed of Sale, petitioners (and RBBI) maintain
that while it refers to TCT No. T62096, the parties actually intended the sale of the Lantap
property (covered by TCT No. T62836).
As to the VLTs, respondents contend that the reference to TCT No. T62836 (corresponding to
the Lantap property) reflects the true intention of RBBI and the petitioners, and the reference to
Barangay Murong was a typographical error. On the other hand, petitioners claim that the
reference to Barangay Murong reflects their true intention, while the reference to TCT No. T
62836 was a mere error. This dispute reflects an intrinsic ambiguity in the contracts, arising from
an apparent failure of the instruments to adequately express the true intention of the parties. To
resolve the ambiguity, resort must be had to evidence outside of the instruments.
The CA rejected any other evidence that could shed light on the actual intention of the contracting
parties. Though the CA cited the Best Evidence Rule, it appears that what it actually applied was
the Parol Evidence Rule instead.
The Parol Evidence Rule excludes parol or extrinsic evidence by which a party seeks to
contradict, vary, add to or subtract from the terms of a valid agreement or instrument. Thus, it
appears that what the CA actually applied in its assailed Decision when it refused to look beyond
the words of the contracts was the Parol Evidence Rule, not the Best Evidence Rule. The CA
gave primacy to the literal terms of the two contracts and refused to admit any other evidence that
would contradict such terms.
However, even the application of the Parol Evidence Rule is improper in the case at bar. In the
first place, respondents are not parties to the VLTs executed between RBBI and petitioners; they
are strangers to the written contracts. Rule 130, Section 9 specifically provides that parol
evidence rule is exclusive only as between the parties and their successorsininterest. The parol
evidence rule may not be invoked where at least one of the parties to the suit is not a party or a
privy of a party to the written document in question, and does not base his claim on the
instrument or assert a right originating in the instrument.
But, the instant case falls under the exceptions to the Parol Evidence Rule, as provided in the
second paragraph of Rule 130, Section 9:
However, a party may present evidence to modify, explain or add to the terms of the written
agreement if he puts in issue in his pleading:
(1) An intrinsic ambiguity, mistake or imperfection in the written agreement;
(2) The failure of the written agreement to express the true intent and agreement of
the parties thereto;
x x x x (Emphasis supplied)
Here, the petitioners VLTs suffer from intrinsic ambiguity. The VLTs described the subject
property as covered by TCT No. T62836 (Lantap property), but they also describe the subject
property as being located in Barangay Murong. Even the respondents Deed of Sale falls under the
exception to the Parol Evidence Rule. It refers to TCT No. T62096 (Murong property), but RBBI
contended that the true intent was to sell the Lantap property. In short, it was squarely put in issue
that the written agreement failed to express the true intent of the parties.
Based on the foregoing, the resolution of the instant case necessitates an examination of the
parties respective parol evidence, in order to determine the true intent of the parties. Wellsettled
is the rule that in case of doubt, it is the intention of the contracting parties that prevails, for the
intention is the soul of a contract,[45] not its wording which is prone to mistakes, inadequacies, or
ambiguities. To hold otherwise would give life, validity, and precedence to mere typographical
errors and defeat the very purpose of agreements.