Heirs of Ramon Durano, Sr. v. Spouses Angeles Sepulveda Uy

Summary

This case involves a property dispute over 128 hectares in Danao City originally owned by Cebu Portland Cement Company. Multiple respondents who had possessed and cultivated portions of the land for generations filed counterclaims for damages after petitioners bulldozed their improvements in 1970. Petitioners claimed ownership through purchase from Cepoc to Durano & Co. to Ramon Durano III, obtaining TCT Nos. T-103 and T-104. The Supreme Court found respondents acquired ownership by acquisitive prescription, having satisfied the 10-year requirement under the Civil Code through good faith possession. The Court found petitioners' title defective due to unregistrable deed of sale and non-production of Cepoc's alleged source titles. Petitioners were held as builders in bad faith, liable for damages under Civil Code Articles 449-451. The decision affirmed awards of actual damages, litigation expenses, and attorney's fees, and ordered return of all properties to respective respondents. The Court applied the doctrine of piercing corporate veil against Durano & Co. This case demonstrates the protection accorded to long-standing possessors in good faith against defective titles.