EN BANC

[G.R. No. L-17818. January 20, 1967.]

TIRSO T. REYES , as guardian of the minors , Azucena , Flordelis and

Tirso , Jr. all surnamed Reyes y Barretto , plaintiff-appellant, vs . LUCILA
MILAGROS BARRETTO DATU , defendant-appellant.

Recto Law Offices for plaintiff-appellant.

Deogracias T. Reyes and Associates for defendant-appellee.

SYLLABUS

1. CIVIL LAW; ARTICLE 1081 OF THE CIVIL CODE OF 1889 (then in force)
CONSTRUED. — Article 1081 of the Civil Code of 1889 (then in force) provided that "a
partition in which a person was believed to be an heir without being so, has been
included, shall be null and void." Based on this Article, the lower court declared the
project of partition submitted in the proceedings for the settlement of the estate of
B.B. to be null and void ab initio because the distributee, S.B., was not a daughter of the
decedent. HELD: Article 1081 of the old Civil Code has been misapplied to the present
case by the lower court. S.B. had been instituted heir in the late decedent's last will and
testament together with M.B., decedent's daughter; hence, the partition had between
them could not be one such had with a party who was believed to be an heir without
really being one, and was not null and void under said article. The legal precept (Article
1081) does not speak of children, or descendants, but of heirs (without distinction
between forced, voluntary or intestate ones), and the fact that Salud happened not to
be a daughter of the testator does not preclude her being one of the heirs expressly
named in his testament, for B.B. was at a liberty to assign the free portion of his estate
to whomsoever he chose.
2. ID.; LEGITIME; ALLOTMENT OF SMALLER SHARE THAN LEGITIME DOES
NOT INVALIDATE INSTITUTION OF HEIR. — While the share (1/2) assigned to S.B.
impinged on the legitime of M.B., S. B. did not for that reason cease to be a
testamentary heir of B.B. Nor does the fact that M.B. was allotted in her father's will a
share smaller than her legitime invalidate the institution of S.B. as heir, since there was
here no preterition, or total omission of a forced heir.
3. ID.; COMPROMISE ON CIVIL STATUS PRESUPPOSES SETTLEMENT OF
CONTROVERSY THROUGH MUTUAL CONCESSION OF PARTIES. — Appellee contends
that the partition in question was void as a compromise on the civil status of S.B. This
view is erroneous, since a compromise presupposes the settlement of a controversy
through mutual concessions of the parties, and the condition of S.B. as daughter of the
testator, while untrue, was at no time disputed during the settlement of the estate of
the testator. There can be no compromise over issues not in dispute. And while a
compromise over civil status is prohibited, the law nowhere forbids a settlement by the
parties over the share that should correspond to a claimant to the estate.
4. ID.; PARTITION; JUDICIAL DECREE OF DISTRIBUTION; ITS EFFECT. —
Independently of a project of partition which is merely a proposal for distribution of the
estate, that the court may accept or reject, it is the court alone that makes the
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 distribution of the estate and determines the persons entitled thereto and the parts to
which each is entitled; and it is that judicial decree of distribution, once nal, that vests
title in the distributees. If the decree was erroneous or not in conformity with law or the
testament, the same should have been corrected by opportune appeal; but once it had
become nal, its binding effect is like that of any other judgment in rem, unless properly
set aside for lack of jurisdiction or fraud. Where a court has validly issued a decree of
distribution of the estate, and the same has become nal, the validity or invalidity of the
project of partition becomes irrelevant.
5. ID.; ID. — Even without the (questioned) project of partition the distribution
could stand since it was in conformity with the probated will of the deceased, against
the provisions whereof no objection had been made.
6. ID.; JUDICIAL DECREE OF DISTRIBUTION; MINORITY OF HEIR DOES NOT
IMPLY THAT COURT WAS WITHOUT JURISDICTION TO ENTER DECREE OF
DISTRIBUTION. — That M. B. was a minor at the time the probate court distributed the
estate of her father in 1939 does not imply that the said court was without jurisdiction
to enter the decree of distribution.
7. ID.; ID.; PROBATE PROCEEDING; NATURE OF. — The proceeding for
probate is one in rem and the court acquires jurisdiction over all persons interested,
through the publication of the notice and any order that may be entered therein is
binding against all of them. A nal order of distribution of the estate of a deceased
person vests the title to the land of the estate in the distributees.
8. ID.; ID.; ID.; GROUNDS FOR SETTING ASIDE. — The only instance in which a
party interested in a probate proceeding may have a nal liquidation set aside is when
he is left out by reason of circumstances beyond his control or through mistake or
inadvertence not imputable to negligence. Even then, the better practice to secure relief
is reopening of the same case by proper motion within the reglementary period, instead
of an independent action the effect of which, if successful, would be for another court
or judge to throw out a decision or order already nal and executed and reshu e
properties long ago distributed and disposed of.
9. ID.; STATUTE OF LIMITATIONS; SUIT BASED ON FRAUD SHOULD BE
BROUGHT WITHIN 4 YEARS FROM ITS DISCOVERY. — Granting that there was fraud,
relief therefrom can only be obtained within 4 years from its discovery, and the record
shows that this period had elapsed long ago.
10. ID.; GUARDIAN; WAIVER OF RIGHTS BY GUARDIAN DOES NOT BIND HIS
WARDS. — An abdicative waiver of rights by a guardian, being an act of disposition and
not of administration, cannot bind his wards, being null and void as to them unless duly
authorized by the proper court.

DECISION

REYES, J.B.L., J : p

Direct appeal from a judgment of the Court of First instance of Bulacan, in its Civil
Case No. 1084, dismissing the complaint of appellant Tirso T. Reyes and ordering the
same to deliver to the defendant-appellee, Lucia Milagros Barretto Datu, the properties
received by his deceased wife under the terms of the will of the late Bibiano Barretto,
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 consisting of lots in Manila, Rizal, Pampanga and Bulacan, valued at more than
P200,000.
The decision appealed from sets the antecedents of the case to be as follows:
" 'This is an action to recover one-half share in the shpond, located
in the barrio of San Roque, Hagonoy, Bulacan, covered by Transfer
Certi cate of Title No. T-13734 of the Land Records of this Province, being
the share of plaintiff's wards as minor heirs of the deceased Salud Barretto,
widow of plaintiff Tirso Reyes, guardian of said minors.
It appears that Bibiano Barretto was married to Maria Gerardo. During
their lifetime they acquired a vast estate, consisting of real properties in
Manila, Pampanga, and Bulacan, covered by Transfer Certi cates of Title
Nos. 41423, 22443, 8858, 32989, 31046, 27285, 6277, 6500, 2057, 6501,
2991, 57403 and 12507/T-337.

When Bibiano Barretto died on February 18, 1936, in the City of

Manila, he left his share of these properties in a will to Salud Barretto,
mother of plaintiff's wards, and Lucia Milagros Barretto and a small portion
as legacies to his two sisters Rosa Barretto and Felisa Barretto and his
nephew and nieces. The usufruct of the shpond situated in barrio San
Roque, Hagonoy, Bulacan, abovementioned, however, was reserved for his
widow, Maria Gerardo. In the meantime, Maria Gerardo was appointed
administratrix. By virtue thereof, she prepared a project of partition, which
was signed by her in her own behalf and as guardian of the minor Milagros
Barretto. Said project of Partition was approved by the Court of First
Instance of Manila on November 22, 1939. The distribution of the estate and
the delivery of the shares of the heirs followed forthwith. As a consequence,
Salud Barretto took immediate possession of her share and secured the
cancellation of the original certi cates of title and the issuance of new titles
in her own name.

Everything went well since then. Nobody was heard to complain of

any irregularity in the distribution of the said estate until the widow, Maria
Gerardo died on March 5, 1948. Upon her death, it was discovered that she
had executed two wills, in the rst of which, she instituted Salud and
Milagros, both surnamed Barretto, as her heirs, and, in the second, she
revoked the same and left all her properties in favor of Milagros Barretto
alone. Thus, the later will was allowed and the rst rejected. In rejecting the
rst will presented by Tirso Reyes, as guardian of the children of Salud
Barretto, the lower court held that Salud was not the daughter of the
decedent Maria Gerardo by her husband Bibiano Barretto. This ruling was
appealed to the Supreme Court, which affirmed the same. 1
Having thus lost this ght for a share in the estate of Maria Gerardo,
as a legitimate heir of Maria Gerardo, plaintiff now falls back upon the
remnant of the estate of the deceased Bibiano Barretto, which was given in
usufruct to his widow Maria Gerardo. Hence, this action for the recovery of
one-half portion thereof.

This action afforded the defendant an opportunity to set up her right

of ownership, not only of the shpond under litigation, but of all the other
properties willed and delivered to Salud Barretto, for being a spurious heir,
and not entitled to any share in the estate of Bibiano Barretto, thereby
directly attacking the validity, not only of the project of partition but of the
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 decision of the court based thereon as well.
The defendant contends that the Project of Partition from which
Salud acquired the shpond in question is void ab initio and Salud Barretto
did not acquire any valid title thereto, and that the court did not acquire any
jurisdiction of the person of the defendant, who was then a minor.' "

Finding for the defendant (now appellee), Milagros Barretto, the lower court
declared the project of partition submitted in the proceedings for the settlement of the
estate of Bibiano Barretto (Civil Case No. 49629 of the Court of First Instance of
Manila) to be null and void ab initio (not merely voidable) because the distributee, Salud
Barretto, predecessor of plaintiffs (now appellants), was not a daughter of the spouses
Bibiano Barretto and Maria Gerardo. The nullity of the project of partition was decreed
on the basis of Article 1081 of the Civil Code of 1889 (then in force) providing as
follows:
"A partition in which a person was believed to be an heir, without
being so, has been included, shall be null and void."

The Court a quo further rejected the contention advanced by plaintiffs that since
Bibiano Barretto was free to dispose of one- third (1/3) of his estate under the old Civil
Code, his will was valid in favor of Salud Barretto (nee Lim Boco) to the extent, at least,
of such free part. And it concluded that, as defendant Milagros was the only true heir of
Bibiano Barretto, she was entitled to recover from Salud, and from the latter's children
and successors, all the properties received by her from Bibiano's estate, in view of the
provisions of Article 1456 of the new Civil Code of the Philippines establishing that
property acquired by fraud or mistake is held by its acquirer in implied trust for the real
owner. Hence, as stated at the beginning of this opinion, the Court a quo not only
dismissed the plaintiffs' complaint but ordered them to return the properties received
under the project of partition previously mentioned as prayed for in defendant Milagros
Barretto's counterclaim. However, it denied defendant's prayer for damages. Hence,
this appeal interposed by both plaintiffs and defendant.
Plaintiffs-appellants correctly point out that Article 1081 of the old Civil Code has
been misapplied to the present case by the court below. The reason is obvious: Salud
Barretto admittedly had been instituted heir in the late Bibiano Barretto's last will and
testament together with defendant Milagros; hence, the partition had between them
could not be one such had with a party who was believed to be an heir without really
being one, and was not null and void under said article. The legal precept (Article 1081)
does not speak of children, or descendants, but of heirs (without distinction between
forced, voluntary or intestate ones), and the fact that Salud happened not to be a
daughter of the testator does not preclude her being one of the heirs expressly named
in his testament; for Bibiano Barretto was at liberty to assign the free portion of his
estate to whomsoever he chose. While the share (1/2) assigned to Salud impinged on
the legitime of Milagros, Salud did not for that reason cease to be a testamentary heir
of Bibiano Barretto.
Nor does the fact that Milagros was allotted in her father's will a share smaller
than her legitime invalidate the institution of Salud as heir, since there was here no
preterition, or total omission, of a forced heir. For this reason, Neri vs. Akutin, 72 Phil.
322, invoked by appellee, is not at all applicable, that case involving an instance of
preterition or omission of children of the testator's former marriage.
Appellee contends that the partition in question was void as a compromise on
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 the civil status of Salud in violation of Article 1814 of the old Civil Code. This view is
erroneous, since a compromise presupposes the settlement of a controversy through
mutual concessions of the parties (Civil Code of 1889, Article 1809; Civil Code of the
Philippines, Art. 2028); and the condition of Salud as daughter of the testator Bibiano
Barretto, while untrue, was at no time disputed during the settlement of the estate of
the testator. There can be no compromise over issues not in dispute. And while a
compromise over civil status is prohibited, the law nowhere forbids a settlement by the
parties over the share that should correspond to a claimant to the estate.
At any rate, independently of a project of partition which, as its own name
implies, is merely a proposal for distribution of the estate that the court may accept or
reject, it is the court alone that makes the distribution of the estate and determines the
persons entitled thereto and the parts to which each is entitled (Comia vs. Reyes, 63
Phil. 629, 643; Act 190, Section 750; Rule 90, Rules of 1940 ; Rule 91, Revised Rules of
Court), and it is that judicial decree of distribution, once nal, that vests title in the
distributees. If the decree was erroneous or not in conformity with law or the
testament, the same should have been corrected by opportune appeal; but once it had
become nal, its binding effect is like that of any other judgment in rem, unless properly
set aside for lack of jurisdiction or fraud.
It is thus apparent that where a court has validly issued a decree of distribution
of the estate, and the same has become nal, the validity or invalidity of the project of
partition becomes irrelevant.
It is, however, argued for the appellee that since the court's distribution of the
estate of the late Bibiano Barretto was predicated on the project of partition executed
by Salud Barretto and the widow, Maria Gerardo (who signed for herself and as
guardian of the minor Milagros Barretto), and since no evidence was taken of the
liation of the heirs, nor were any ndings of fact or law made, the decree of
distribution can have no greater validity than that of the basic partition, and must stand
or fall with it, being in the nature of a judgment by consent, based on a compromise.
Saminiada vs. Mata, 92 Phil. 426, is invoked in support of the proposition. That case is
authority for the proposition that a judgment by compromise may be set aside on the
ground of mistake or fraud, upon petition led in due time, where petition for "relief was
led before the compromise agreement, a proceeding, was consummated" (cas. cit. at
p. 436). In the case before us, however, the agreement of partition was not only rati ed
by the court's decree of distribution, but actually consummated, so much so that the
titles in the name of the deceased were cancelled, and new certi cates issued in favor
of the heirs, long before the decree was attacked. Hence, Saminiada vs. Mata does not
apply.
Moreover, the defendant-appellee's argument would be plausible if it were shown
that the sole basis for the decree of distribution was the project of partition. But, in fact,
even without it, the distribution could stand, since it was in conformity with the
probated will of Bibiano Barretto, against the provisions whereof no objection had been
made. In fact, it was the court's duty to do so. Act 190, section 640, in force in 1939,
provided:
Sec. 640. Estate, How Administered. — When a will is thus
allowed, the court shall grant letters testamentary, or letters of
administration with the will annexed, and such letters testamentary or of
administration, shall extend to all the estate of the testator in the Philippine
Islands. Such estate, after the payment of just debts and expenses of
administration, shall be disposed of according to such will, so far as such
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 will may operate upon it; and the residue, if any, shall be disposed of as is
provided by law in cases of estates in these Islands belonging to persons
who are inhabitants of another state or country." (Italics supplied)

That defendant Milagros Barretto was a minor at the time the probate court
distributed the estate of her father in 1939 does not imply that the said court was
without jurisdiction to enter the decree of distribution. Passing upon a like issue, this
Court ruled in Ramos vs. Ortuzar, 89 Phil. Reports, pp. 741 and 742:
"If we are to assume that Richard Hill and Marvin Hill did not formally
intervene, still they would be concluded by the result of the proceedings, not
only as to their civil status but as the distribution of the estate as well. As
this court has held in Manolo vs. Paredes, 47 Phil. 938, "The proceeding for
probate is one in rem (40 Cyc., 1265) and the court acquires jurisdiction over
all persons interested, through the publication of the notice prescribed by
Section 630 C.P.C.; and any order that may be entered therein is binding
against all of them.' (See also in re Estate of Johnson, 39 Phil. 156.) 'A nal
order of distribution of the estate of a deceased person vests the title to the
land of the estate in the distributees.' (Santos vs. Roman Catholic Bishop of
Nueva Caceres, 45 Phil. 895.) There is no reason why, by analogy, these
salutary doctrines should not apply to intestate proceedings.
The only instance that we can think of in which a party interested in a
probate proceedings may have a nal liquidation set aside is when he is left
out by reason of circumstances beyond his control or through mistake or
inadvertence not imputable to negligence. Even then, the better practice to
secure relief is reopening of the same case by proper motion within the
reglementary period, instead of an independent action the effect of which, if
successful, would be, as in the instant case, for another court or judge to
throw out a decision or order already nal and executed and reshu e
properties long ago distributed and disposed of."

It is well to observe, at this juncture, as this Court expressly declared in Reyes vs.
Barretto Datu, 94 Phil. 446 (Am'd. Rec. Appeal, pp. 156, 157), that:
". . . It is argued that Lucia Milagros Barretto was a minor when she
signed the partition, and that Maria Gerardo was not her judicially appointed
guardian. The claim is not true. Maria Gerardo signed as guardian of the
minor. (Secs. 3 and 5, Rule 97, Rules of Court.) The mere statement in the
project of partition that the guardianship proceedings of the minor Lucia
Milagros Barretto are pending in the court, does not mean that the guardian
had not yet been appointed; it meant that the guardianship proceedings, had
not yet been terminated and as a guardianship proceedings begin with the
appointment of a guardian, Maria Gerardo must have been already
appointed when she signed the project of partition. There is, therefore, no
irregularity or defect or error in the project of partition, apparent on the record
of the testate proceedings, which shows that Maria Gerardo had no power or
authority to sign the project of partition as guardian of the minor Lucia
Milagros Barretto, and, consequently, no ground for the contention that the
order approving the project of partition is absolutely null and void and may
be attacked collaterally in these proceedings."

So that it is now incontestable that appellee Milagros Barretto was not only
made a party by publication but actually appeared and participated in the proceedings
through her guardian: she, therefore, can not escape the jurisdiction of the Manila Court
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 of First Instance which settled her father's estate.
Defendant-appellee further pleads that as her mother and guardian (Maria
Gerardo) could not have ignored that the distributee Salud was not her child, the act of
said widow in agreeing to the oft-cited partition and distribution was a fraud on
appellee's rights and entitles her to relief. In the rst place, there is no evidence that
when the estate of Bibiano Barretto was judicially settled and distributed appellants'
predecessor, Salud Lim Boco Barretto, knew that she was not Bibiano's child; so that if
fraud was committed, it was the widow, Maria Gerardo, who was solely responsible,
and neither Salud nor her minor children, appellants herein, can be held liable therefor. In
the second place, granting that there was such fraud, relief therefrom can only be
obtained within 4 years from its discovery, and the record shows that this period had
elapsed long ago.
Because at the time of the distribution Milagros Barretto was only 16 years old
(Exhibit 24), she became of age ve years later, in 1944. On that year, her cause of
action accrued to contest on the ground of fraud the court decree distributing her
father's estate and the four-year period of limitation started to run, to expire in 1948
(Section 43, Act 190). In fact, conceding that Milagros only became aware of the true
facts in 1946 (Appellee's Brief, p. 27), her action still became extinct in 1950. Clearly,
therefore, the action was already barred when in August 31, 1956 she led her
counterclaim in this case contesting the decree of distribution of Bibiano Barretto's
estate.
In order to evade the statute of limitations, Milagros Barretto introduced
evidence that appellant Tirso Reyes had induced her to delay ling action by verbally
promising to reconvey the properties received by his deceased wife, Salud. There is no
reliable evidence of the alleged promise, which rests exclusively on the oral assertions
of Milagros herself and her counsel. In fact, the trial court made no mention of such
promise in the decision under appeal. Even more: granting arguendo that the promise
was made, the same can not bind the wards, the minor children of Salud, who are the
real parties in interest. An abdicative waiver of rights by a guardian, being an act of
disposition, and not of administration, can not bind his wards, being null and void as to
them unless duly authorized by the proper court (Ledesma Hermanos vs. Castro, 55
Phil. 136, 142).
In resume, we hold (1) that the partition had between Salud and Milagros
Barretto in the proceedings for the settlement of the estate of Bibiano Barretto, duly
approved by the Court of First Instance of Manila in 1939, in its Civil Case No. 49629, is
not void for being contrary to either articles 1081 or 1814 of the Civil Code of 1889; (2)
that Milagros Barretto's action to contest said partition and decree of distribution is
barred by the statute of limitations; and (3) that her claim that plaintiff-appellant
guardian is a possessor in bad faith and should account for the fruits received from the
properties inherited by Salud Barretto (nee Lim Boco) is legally untenable. It follows
that the plaintiffs' action for partition of the shpond described in the complaint should
have been given due course.
Wherefore, the decision of the Court of First Instance of Bulacan now under
appeal is reversed and set aside in so far as it orders plaintiff-appellant to reconvey to
appellee Milagros Barretto Datu the properties enumerated in said decision, and the
same is a rmed in so far as it denies any right of said appellee to accounting. Let the
records be returned to the court of origin, with instructions to proceed with the action
for partition of the shpond (Lot No. 4, Plan Psu-4709), covered by TCT No. T-13734 of
the O ce of the Register of Deeds of Bulacan, and for the accounting of the fruits
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 thereof, as prayed for in the complaint. No costs.
Concepcion, C. J., Dizon, Regala, Makalintal, Bengzon, J. P., Zaldivar, Sanchez and
Ruiz Castro, JJ., concur.

Footnotes

1. Reyes vs. Barretto, G. R. No. L-5831, Jan. 31, 1956.

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