Case Digest: Vda. de Mapa vs. CA, G.R. No. L-38972, September 28, 1987

Succession 

Ponente:
Fernan, J.:

Facts:

Paz Garcia Vda. de Mapa, et al. filed a civil case before CFI-Manila to recover from the estate of the late Ludovico Hidrosollo, the properties left by the late Concepcion Mapa de Hidrosollo.

Concepcion Mapa de Hidrosollo instituted Ludovico Hidrosollo as universal heir to the residue of her estate, with the obligation as trustee for the petitioners and repondents. Ludovico, however, died without fulfilling the obligation so that the estate of Concepcion formed part his estate. 

Petitioners, who are nephews and nieces of Concepcion, prayed for declaration of a trust in their favor and co-beneficiaries over Concepcion's estate and the delivery of 6/13 of the properties from administrators of Ludovico's estate.

Respondents, who are nephews and nieces of Ludovico, denied the existence of trust and claimed that as Concepcion's surviving spouse, Hidrosollo became her universal heir when she died without any descendants or ascendants.

CFI-Manila: Ruled that a trust was created over the properties of petitioners' claim and ordered to reconvey the same.

CA: Reversed the decision of the lower court and ruled instead that no trust nor fideicommissary substitution was created and that petitioners' claim was barred by a final judgment.

Issue:

WoN the will of Concepcion Mapa de Hidrosollo created a trust in their favor, not a fideicommissary substitution. YES

Held:

A careful perusal and scrutiny of the pertinent provisions of Concepcion Mapa de Hidrosollo's Will reveal that she intended to create a trust in favor of both petitioners and private respondents. These provisions read:

OCTAVA: Del resto de todos mis bienes parafernales y ganaciales, instituyo por mi unico y universal heredero, a mis esposo Ludovico Hidrosollo, a quien, al mismo tiempo, nombro como mi Abacea (sic) testamentario con relvacin (sic) de fianza.

NOVENA: Encargo a mi esposo que en el caso de que me abreviva (sic), disponga de los bienes que le queden a favor de nuestros sobrinos, todos en partes iguales, a saber:

1. Jose Agustin Mapa

2. Segundo Mapa

3. Priscilla Mapa

4. Teresa Mapa

5. Ignacio Salazar

6. Jose Salazar

7. Teodoro Hidrosollo

8. Victorina Hidrosollo

9. Corazon Hidrosollo

10. Luis Hidrosollo

11. Violeta Hidrosollo

12. Rosario Hidrosollo

13. Magdalena Hidrosollo

 

DECIMA: Los beneficiarios nombrados en la clausula que antecede tendran la obligacion de entregar, cada ano a Salvador Genova, centras esta viva, doce cavanes de palay, con la condicion de que dicho Salvador ayude a Luis Hidrosollo en la recoleccion de cada cosecha. Dichos beneficiarios tendran iqualmente la obligacion de permitir al menciado Salvador Genova a tener su casa en nuestro solar en I laud, dentro de la poblacion de Dumarao, sin pago alguno.

UNDECIMA: Encargo igualmente a mi esposo, como heredero universal mio que, si a su muerte, hubiese alguna dueda contraida por el durante su supervivencia sobre mi dicha deuda sea cargada a la parte que corresponda a sus sobrinos por consagunidad todos appellidados Hidrosollo, y no debera en mio alguno afectar la participacion de mis sobrinos, cuatro de ellos appellidados Mapa y dos appellidados Salazar.

xxx xxx xxx

DECIMA TERCERA: Es tambien mi voluntad la desque los bienes permanezcan en todo tiempo en comunidad, y que los beneficiarios se abstengan an absoluto de venderos o gravarlos en cualquier forma, en respeto a la memoria de sus tios que solo miran el proprio bien de sus dichos sobrinos.

xxx xxx xxx

DECIMA QUINTO: Encargo a mis sobrinos nombrados en esta testamento que la administracion de los bienes de la comunidad sea encomendada a Ignacio Salazar y a Luis Hidrosollo conjuntamente, y en el caso de que ambos o cualquiera de ellos no pudiere por cualquier motive, complier con el cometido, que dicha administracion se ponga en manos de los sobrinos, uno del groupo Mapa o Salazar y el otro del grupo Hidrosollo. (pp. 58-59, Rollo).

Translation:

EIGHTH: The rest of all my separate and marital property, I institute as my sole and universal heir, my spouse Ludovico Hidrosollo, whom I, at the same time, appoint as my Testamentary Executor without the requirement of posting a bond.

NINTH: I entrust to my spouse that in the event of my passing, he shall dispose of the remaining assets in favor of our nephews, all in equal parts, namely:

1. Jose Agustin Mapa

2. Segundo Mapa

3. Priscilla Mapa

4. Teresa Mapa

5. Ignacio Salazar

6. Jose Salazar

7. Teodoro Hidrosollo

8. Victorina Hidrosollo

9. Corazon Hidrosollo

10. Luis Hidrosollo

11. Violeta Hidrosollo

12. Rosario Hidrosollo

13. Magdalena Hidrosollo

TENTH: The beneficiaries named in the preceding clause shall have the obligation to annually deliver, as long as Salvador Genova is alive, twelve cavanes of rice, on the condition that said Salvador assists Luis Hidrosollo in the harvesting of each crop. These beneficiaries shall also be obligated to allow the mentioned Salvador Genova to have his residence on our land in Ilaud, within the town of Dumarao, without any payment.

ELEVENTH: I also entrust my spouse, as my universal heir, that if at his death, there is any debt incurred by him during his lifetime, said debt shall be charged to the portion corresponding to his nephews by consanguinity, all bearing the surname Hidrosollo, and shall in no way affect the share of my nephews, four of them bearing the surname Mapa and two bearing the surname Salazar.

xxx xxx xxx

THIRTEENTH: It is also my wish that the properties remain at all times as community property, and that the beneficiaries refrain absolutely from selling or encumbering them in any form, in respect to the memory of their uncles who only seek the welfare of their said nephews.

xxx xxx xxx

FIFTEENTH: I entrust to my nephews named in this will that the administration of the community properties be entrusted jointly to Ignacio Salazar and Luis Hidrosollo, and in the event that both or either of them cannot, for any reason, fulfill this duty, the administration shall be handed over to the nephews, one from the Mapa or Salazar group and the other from the Hidrosollo group.

Thus, under paragraph 8 of the Will, Ludovico Hidrosollo was instituted as sole and universal heir to the rest of the properties not covered by the legacies in the preceding paragraphs. Under paragraph 9, however, said Ludovico Hidrosollo was charged (encargo) with the obligation to deliver the rest of the estate in equal parts to the Mapa, Salazar and Hidrosollo nephews and nieces, who, as beneficiaries, were directed to deliver annually to one Salvador Genova, during his lifetime, 12 cavans of palay on the condition that the latter assist Luis Hidrosollo in each harvest. Said beneficiaries were likewise required to allow said Salvador Genova to maintain his house on a parcel of land situated at Ilaud, Municipality of Dumarao, without payment of any compensation (Par. 10 of the Will).

In paragraph 11 of the same Will, the testatrix expressly provided that any obligations which her husband might incur after her death, shall be charged against the share corresponding to the Hidrosollo nephews and nieces and in no case shall the participation of her own nephews and nieces be charged with said obligations. She likewise expressed the wish that all her properties should always remain in co-ownership among her beneficiaries, who should abstain from selling or encumbering the same in any manner whatsoever (par. 13) and that the same be administered jointly by Ignacio Salazar and Luis Hidrosollo, or in case of their inability, by a nephew or niece from each of the two groups (par. 15).

Although the word "trust" itself does not appear in the Will, the testatrix's intent to create one is nonetheless clearly demonstrated by the stipulations in her Will. In designating her husband Ludovico Hidrosollo as universal and sole heir with the obligation to deliver the properties to petitioners and private respondents, she intended that the legal title should vest in him, and in significantly referring to petitioners and private respondents as "beneficiarios," she intended that the beneficial or equitable interest to these properties should repose in them. To our mind, these designations, coupled with the other provisions for co-ownership and joint administration of the properties, as well as the other conditions imposed by the testatrix effectively created a trust in favor of the parties over the properties adverted to in the Will. "No particular words are required for the creation of an express trust, it being sufficient that a trust is clearly intended. " (Art. 1443, Civil Code of the Philippines).

However, we must not lose sight of the fact that as the surviving spouse of the testatrix, Ludovico Hidrosollo was entitled to a legitime of one-half (1/2) of her hereditary estate. As that portion is reserved by law for the compulsory heirs, no burden, encumbrance, condition or substitution of any kind whatsoever may be imposed upon the legitime by the testator. (Art. 904, second paragraph, Ibid) The trust created by Concepcion Mapa should therefore be, as it is hereby declared to be effective only on the free portion of her estate, i.e., that portion not covered by Ludovico Hidrosollo's legitime.

Anent the issue of res judicata, We rule that the order denying petitioners' motion for intervention in Special Proceedings No. 52229 did not constitute an adjudication on the merits and therefore could not operate as a bar to Civil Case No. 59566.

The reason given by the probate court for denying petitioners 'motion for intervention is as follows:

... that there is no fideicommissary substitution because the testatrix did not impose upon her spouse the absolute obligation to deliver the property to said petitioners. When the testatrix provided in her will that her husband dispose of in favor of the petitioners his remaining properties it only shows that he was not absolutely obligated to preserve and transmit to the petitioners the properties by him acquired under the will of his deceased wife. If the testatrix intended to entrust the property to her husband with the obligation to preserve and to transmit the remaining properties to the petitioners, she could have said so in an express manner. However, even assuming that Clause could be interpreted to he a fideicommissary substitution, such substitution can not be given effect in the face of an opposition and in view of Art, 863 of the Civil Code of the Philippines, requiring that substitution must not go beyond one degree from the heir originally instituted. It will be noticed that the second heirs instituted are merely "sobrinos" of the fiduciary or first heir (surviving spouse). Upon these facts, the Court is of the opinion that the movants for intervention do not have a legal interest in the estate under the present administration. (pp. 50-51, Record on Appeal, p. 101, Rollo).

Since the denial order was anchored primarily on the nonexistence of, or the ineffectivity of a fideicommissary substitution, and did not resolve the issue of trust alleged by petitioners, said order cannot be considered an adjudication on the merits of petitioners' claim against the estate.

WHEREFORE, the decision of the Court of Appeals in CA G.R. No. 40448-A is hereby reversed. Private respondents Luis and Teodoro Hidrosollo or their successors as administrators of the estate of Ludovico Hidrosollo are hereby ordered to deliver to petitioners their lawful shares in the trust constituted over the free portion of the estate of Concepcion Mapa. Said Luis and Teodoro Hidrosollo or their successors are further ordered to render an accounting of the income of the properties pertaining to petitioners and to deliver to the latter the net proceeds of such income.