William Alain Miailhe v. Court of Appeals

Summary

Supreme Court case involving prescription of action for contract annulment. Petitioner sought to annul 1977 sale of Manila properties to government, claiming coercion during martial law. Court held that action prescribed as complaint was filed more than four years after intimidation ceased when Marcos left in February 1986. Court ruled extrajudicial demands cannot interrupt prescription in contract annulment cases since no creditor-debtor relationship exists until contract is annulled. Case establishes that prescription period for annulment based on intimidation runs from when defect ceases, and voidable contracts remain binding until properly annulled in court. Petition denied, affirming dismissal on prescription grounds.