Agtarap v. Agtarap

NACHURA, J.:

Before us are the consolidated petitions for review on certiorari of petitioners Sebastian G. Agtarap (Sebastian)1 and Eduardo G. Agtarap (Eduardo),2 assailing the Decision dated November 21, 20063 and the Resolution dated March 27, 20074 of the Court of Appeals (CA) in CA-G.R. CV No. 73916. The antecedent facts and proceedings- On September 15, 1994, Eduardo filed with the Regional Trial Court (RTC), Branch 114, Pasay City, a verified petition for the judicial settlement of the estate of his deceased father Joaquin Agtarap (Joaquin). It was docketed as Special Proceedings No. 94-4055.

The petition alleged that Joaquin died intestate on November 21, 1964 in Pasay City without any known debts or obligations. During his lifetime, Joaquin contracted two marriages, first with Lucia Garcia (Lucia),5 and second with Caridad Garcia (Caridad). Lucia died on April 24, 1924.

Joaquin and Lucia had three children-Jesus (died without issue), Milagros, and Jose (survived by three children, namely, Gloria,6 Joseph, and Teresa7). Joaquin married Caridad on February 9, 1926. They also had three children-Eduardo, Sebastian, and Mercedes (survived by her daughter Cecile).

At the time of his death, Joaquin left two parcels of land with improvements in Pasay City, covered by Transfer Certificates of Title (TCT) Nos. 873-(38254) and 874-(38255). Joseph, a grandson of Joaquin, had been leasing and improving the said realties and had been appropriating for himself ₱26,000.00 per month since April 1994. Eduardo further alleged that there was an imperative need to appoint him as special administrator to take possession and charge of the estate assets and their civil fruits, pending the appointment of a regular administrator.

In addition, he prayed that an order be issued (a) confirming and declaring the named compulsory heirs of Joaquin who would be entitled to participate in the estate; (b) apportioning and allocating unto the named heirs their aliquot shares in the estate in accordance with law; and (c) entitling the distributees the right to receive and enter into possession those parts of the estate individually awarded to them. On September 26, 1994, the RTC issued an order setting the petition for initial hearing and directing Eduardo to cause its publication. On December 28, 1994, Sebastian filed his comment, generally admitting the allegations in the petition, and conceding to the appointment of Eduardo as special administrator.

Joseph, Gloria, and Teresa filed their answer/opposition. They alleged that the two subject lots belong to the conjugal partnership of Joaquin with Lucia, and that, upon Lucia's death in April 1924, they became the pro indiviso owners of the subject properties. They said that their residence was built with the exclusive money of their late father Jose, and the expenses of the extensions to the house were shouldered by Gloria and Teresa, while the restaurant (Manong's Restaurant) was built with the exclusive money of Joseph and his business partner.

They opposed the appointment of Eduardo as administrator on the following grounds: (1) he is not physically and mentally fit to do so; (2) his interest in the lots is minimal; and (3) he does not possess the desire to earn. They claimed that the best interests of the estate dictate that Joseph be appointed as special or regular administrator. On February 16, 1995, the RTC issued a resolution appointing Eduardo as regular administrator of Joaquin's estate.

Consequently, it issued him letters of administration.

On September 16, 1995, Abelardo Dagoro filed an answer in intervention, alleging that Mercedes is survived not only by her daughter Cecile, but also by him as her husband. He also averred that there is a need to appoint a special administrator to the estate, but claimed that Eduardo is not the person best qualified for the task. After the parties were given the opportunity to be heard and to submit their respective proposed projects of partition, the RTC, on October 23, 2000, issued an Order of Partition,8 with the following disposition- In the light of the filing by the heirs of their respective proposed projects of partition and the payment of inheritance taxes due the estate as early as 1965, and there being no claim in Court against the estate of the deceased, the estate of JOAQUIN AGTARAP is now consequently - ripe - for distribution among the heirs minus the surviving spouse Caridad Garcia who died on August 25, 1999.

Considering that the bulk of the estate property were acquired during the existence of the second marriage as shown by TCT No. (38254) and TCT No. (38255) which showed on its face that decedent was married to Caridad Garcia, which fact oppositors failed to contradict by evidence other than their negative allegations, the greater part of the estate is perforce accounted by the second marriage and the compulsory heirs thereunder. The Administrator, Eduardo Agtarap rendered a true and just accounting of his administration from his date of assumption up to the year ending December 31, 1996 per Financial and Accounting Report dated June 2, 1997 which was approved by the Court. The accounting report included the income earned and received for the period and the expenses incurred in the administration, sustenance and allowance of the widow.

In accordance with said Financial and Accounting Report which was duly approved by this Court in its Resolution dated July 28, 1998 - the deceased JOAQUIN AGTARAP left real properties consisting of the following: I LAND: Two lots and two buildings with one garage quarter located at #3030 Agtarap St., Pasay City, covered by Transfer Certificate of Title Nos. 38254 and 38255 and registered with the Registry of Deeds of Pasay City, Metro Manila, described as follows: TCT NO. LOT NO. AREA/SQ.M. ZONAL VALUE AMOUNT 38254 745-B-1 1,335 sq.

m. ₱5,000.00 ₱6,675,000.00 38255 745-B-2 1,331 sq. m.

₱5,000.00 ₱6,655,000.00