Saltiga v. Romero Digest

Saltiga v. Romero

G.R. No. 109307 November 25, 1999

Ponente: Gonzaga-Reyes, J.:

Trusts

Facts:

1. The petitioners filed an action against Lutero Romero and DBP (bank) for the reconveyance of a parcel of land alleging that the said property was conveyed to Romero by their father by virtue of a trust.

2. In 1939, Eugenio (father)of petitioners obtained the rights and interest to the then public land from the Jaug spouses but since he had already applied for a homestead previously, he could no longer apply for this said land. As a result he caused the application to be under the name of his eldest son Eustaquio. When the father died, the said land was portioned to the children who subsequently possessed each share.

3. Romero alleged that he was subsequently forced to sign three affidavits which purportedly sold the shares to his other siblings. He repudiated the said affidavits which made his sisters file estafa charges against him.

Issue:Whether or not a trust was created between their father and Romero for the benefit of the heirs of the former

RULING: No, and even if there was it would be void for being contrary to law. Eugenio Romero was never the owner of the subject land because all he obtained from the Jaug spouses were the rights and interests to the land. He could not have owned it as his application for homestead patent was disapproved.

More importantly, there was no evidence of the supposed trust. A trust is a legal relationship between a person having an equitable ownership in property and another owning a legal title to such property. The equitable ownership of the former entitles him to perform certain duties and powers by the latter. Trust relations can therefore be express or implied. Express being those created by direct and positive acts of the parties, by a writing or a deed, or will or by words that evidence an intention to create a trust. Implied trusts refer to those that are deducible from the nature of the transaction as matters of intent or which are superinduced on the transaction by operation of law as a matter of equity, independently of the particular intention of the parties. Implied trust can either be resulting  or constructive trusts, both coming by operation of law. 

resulting trusts arise from the equitable doctrine that valuable consideration and not legal title determines the equitable title or interest are presumed always to have been contemplated by the parties. While cosntructive trusts are created by construction of equity to satisfy the demands of justice and prevent enrichment.