David Ines v. Court of Appeals

Summary

Spouses David and Hortencia Ines filed an action to annul a deed of sale of their conjugal property to the Geronimo spouses, claiming the husband's signature was forged. The trial court declared the sale void as to the husband's half due to forgery and treated the wife's half as equitable mortgage, ordering reconveyance upon return of P150,000.00 without interest. Only the Ines spouses appealed. The Court of Appeals declared the entire deed void and awarded legal interest on the consideration from the date of sale. The Supreme Court affirmed but modified the interest to commence from the trial court's decision date, holding that legal interest was properly awarded under Article 2210 of the Civil Code as a necessary consequence of the void contract, even without cross-appeal by the Geronimo spouses.