Campo v. Court of Appeals

Summary

This case involves a property dispute over Lot 162 originally co-owned by eight Bornales siblings. Salome Bornales sold a specific portion of her share to Soledad Daynolo in 1940, who later mortgaged it to Jose Regalado Sr. After redemption, Soledad's heirs sold the portion to the Del Campo spouses in 1951. However, Regalado subsequently registered the entire subdivided lot including the Del Campos' portion under his name in 1977. The Supreme Court reversed lower court decisions, ruling that the original sale was valid under co-ownership principles and that Regalado committed fraud in the registration. The Court ordered reconveyance, holding that a co-owner can validly sell his pro-indiviso share, and that fraudulent registration creates an implied trust favoring the true owner. The decision emphasizes that undisturbed possession for an extended period strengthens ownership claims even against Torrens titles obtained through fraud.