Ada v. Baylon
GR No. 182435
August 13, 2012
Facts
Florentino and Maximina Baylon died in 1961 and 1974, respectively. They were survived by their children Rita, Victoria, Dolores, Panfila, Ramon, and Lilia. Victoria died in 1981, survived by a daughter, Luz Adanza, one of the petitioners. Ramon, on the other hand, was survived by respondent Florante Baylon when he died in 1989.
The petitioners allege that Florentino and Maximina Baylon owned 43 parcels of land in their lifetime and that Rita took possession of the said parcels of land, appropriating for herself the income from the same. They further allege that Rita used the income to buy two parcels of land. Because of this, the petitioners wanted to include those two parcels of land in the partition by filing a civil case.
During the pendency of the case, Rita executed a Deed of Donation dated July 6, 1997, in favor of her nephew Florante Baylon. The petitioners now seek to rescind the Deed of Donation.
Issue
Should rescission be granted?
Ruling
Yes. Pursuant to Article 1381 (4) of the Civil Code, contracts which “refer to things under litigation, if they have been entered into by the defendant without the knowledge and approval of the litigants or of competent judicial authority, are rescissible.” The rescission of such a contract requires the concurrence of the following:
1. The defendant, during the pendency of the case, enters into a contract which refers to the thing subject of litigation
2. The said contract was entered into without the knowledge and approval of the litigants or of a competent judicial authority
The purpose of Article 1381 (4) is to secure the possible effectivity of the impending judgment by a court with respect to the thing subject of litigation. The rescission not preconditioned upon the judicial determination as to the ownership of the thing subject of litigation. Rita’s failure to inform and seek the approval of the petitioners or the RTC regarding the conveyance gave the petitioners the right to rescind the said donation.
It's a Ping Thing 