- Petitioner
- Spouses Ernesto
- Respondent
- Court of Appeals
- Citation
- G.R. No. 125888
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Per Lantin, J.
- Decided
- August 13, 1998
Summary
The Supreme Court reversed lower court decisions in this property dispute involving a donation from Aurora Montinola to her grandchildren. Despite being titled 'Deed of Donation Inter Vivos,' the Court held it was actually mortis causa because the donor retained all ownership rights during her lifetime and prohibited the donees from disposing of the property until 10 years after her death. The donees never acquired possession, fruits, or disposal rights, making them merely 'paper owners.' Applying precedents and Article 1378 of the Civil Code requiring the least transmission of rights in doubtful gratuitous contracts, the Court declared the donation void for failing to comply with testamentary formalities. The decision restored the donor's original title and rejected the validity of the subsequent transfer to the Sicad spouses.