Millarosa Vs Carmel Dev't, Inc.

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As a general rule, a law declared as unconstitutional produces no effect whatsoever and confers no right

on any person.

Millarosa vs Carmen Development, Inc. GR No. 194538

Facts
Respondent Carmen Development was the owner of Pangarap Village in Caloocan. In 1973, President
Marcos issued PD 293 wihich invalidated the titles of the respondent and declared it open for disposition
to the members of malacanang homeowners association inc. Pelagio Juan, petitioner’s predecessor-in-
interest occupied lot 32 thereafter. However, in 1988, the Court promulgated the case of Tuason vs
Tuason declaring the PD 293 unconstitutional and void ab inito. Thus, the Court ordered for the
cancellation of the inscription in the titles.

In 1995, petitioner took over lot no. 32 by virtue of affidavit from Pelagio Juan in his favor. Respondent
invoked the ruling in Tuason and demanded that the property be vacated by the petitioner. Petitionetr
refused, thus prompted respondent to file a complaint of unlawful detainer. MTC ruled in favor of
respondent herein, but RTC reversed.

Issue
WON Tuason case would apply to herein petitioner’s case when he invoked the doctrine of operative fact.

Held
As a general rule, a law declared as unconstitutional produces no effect whatsoever and confers no right
on any person. It matters not whether the person is a party to the original case, because “[n]ot only the
parties but all persons are bound by the declaration of unconstitutionality, which means that no one may
thereafter invoke it nor may the courts be permitted to apply it in subsequent cases. It is, in other words,
a total nullity.” We have categorically stated that the doctrine does not apply when the party concerned
is a “successor in interest by title subsequent to the commencement of the action, or the action or
proceeding is in rem, the judgment in which is binding against him.” While petitioner may not have been
a party to Tuason, still, the judgment is binding on him because the declaration of P.D. 293 as a nullity
partakes of the nature of an in rem proceeding.

Neither may petitioner avail himself of the operative fact doctrine, which recognizes the interim effects
of a law prior to its declaration of unconstitutionality. The operative fact doctrine is a rule of equity. As
such, it must be applied as an exception to the general rule that an unconstitutional law produces no
effects. The doctrine is applicable when a declaration of unconstitutionality will impose an undue burden
on those who have relied on the invalid law, but it can never be invoked to validate as constitutional an
unconstitutional act.
In this case, petitioner could not be said to have been unduly burdened by reliance on an invalid law.
Petitioner merely anchored his right over the property to an Affidavit allegedly issued by Pelagio M. Juan,
a member of the MHIA, authorizing petitioner to occupy the same. However, this Affidavit was executed
only sometime in 1995, or approximately seven years after the Tuason case was promulgated. At the time
petitioner built the structures on the premises, he ought to have been aware of the binding effects of the
Tuason case and the subsequent unconstitutionality of P.D. 293. These circumstances necessarily remove
him from the ambit of the operative fact doctrine.

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