Simon Lacorte v. The Honorable Court of Appeals

Summary

This Supreme Court case involved a family property dispute among siblings who were heirs of Maria Lacorte. The petitioners sought annulment of a Deed of Reconveyance executed by their brother and sister-in-law without their knowledge, despite existing agreements giving all heirs the right to collectively repurchase foreclosed family land. The Court found that the original agreements between Jose Icaca and Simon Lacorte (representing all heirs) constituted an equitable mortgage, not a sale, based on continued possession by the original owners and other circumstances. The Court ruled that petitioners were prejudiced by their fraudulent exclusion from the reconveyance deed and had standing to seek both annulment and reformation. The decision emphasized that Adela Lacorte's misrepresentation to Icaca that she was acting for all heirs, combined with her request for petitioners to contribute to the payment, demonstrated the true intention was collective ownership. The Court ordered reformation of the deed to include all heirs with pro rata contribution requirements.