Herminia L. Ramos v. Hon. Court of Appeals

Summary

This Supreme Court case involved a property dispute over a PHHC lot where Lydia Celestino, a disqualified Central Bank employee who already owned property in Quezon City, attempted to acquire a lot through a backdoor transaction with qualified awardee Herminio Ramos. Despite paying the full purchase price while title remained with Ramos, the Supreme Court ruled that no enforceable resulting trust was created because the transaction violated public policy. The Court applied the clean hands doctrine, finding that Celestino knowingly circumvented PHHC qualification requirements. While dismissing the reconveyance action, the Court ordered refund of all payments with interest, balancing legal principles with equity. The decision reinforces that courts will not enforce trusts created to evade legal restrictions, even when technical trust requirements are met.