Estrella Pigao v. Samuel Rabanillo

Summary

This Supreme Court case involved a property dispute over a residential lot in Quezon City originally owned by the People's Homesite and Housing Corporation (PHHC). Eusebio Pigao, the original applicant-purchaser, assigned rights to half the property to Samuel Rabanillo in 1959. After Eusebio's death, his heirs sought to quiet title over the entire lot, challenging the validity of the assignment. While the Court of Appeals found the assignment valid and recognized Rabanillo's rights under an implied trust theory, the Supreme Court reversed this decision. The Court held that the deed of assignment was null and void for violating public policy, reasoning that PHHC's housing program was designed for qualified bona fide occupants and that the right to purchase was personal and non-transferable without PHHC consent. The Court rejected the implied trust argument, emphasizing that enforcement would contravene established public policy despite Rabanillo's financial contributions.