Delfina Vda. de Rigonan v. Zoroaster Derecho Representing the Heirs of Ruben Derecho

Summary

This case involves a property dispute over land originally owned by Hilarion Derecho who died intestate, leaving eight children as co-owners. In 1921, five heirs sold the property under a pacto de retro sale to Francisco Lacambra with a five-year redemption period. When the period expired unredeemed in 1926, one heir (Dolores) and her husband repurchased the land in 1928 and possessed it continuously thereafter. After over 65 years, the other heirs filed suit in 1993 to recover the property and annul subsequent conveyances. The Supreme Court reversed lower court decisions favoring the heirs, ruling that acquisitive prescription and laches barred recovery. The Court held that the failed redemption ended co-ownership, the 1928 purchase created a new independent contract, and while an implied trust initially existed for non-selling heirs, continuous adverse possession since 1928 vested ownership in petitioners through prescription. The decision emphasizes that prescription protects the diligent and vigilant, not those who sleep on their rights.