Heirs of Maximo Labanon v. Heirs of Constancio Labanon

Summary

This case involved a property dispute between the heirs of two brothers, Maximo and Constancio Labanon, over a 5-hectare agricultural land in Cotabato. While the title was in Maximo's name through a homestead application, he had executed written documents acknowledging that his brother Constancio owned the eastern 2.5-hectare portion based on their original agreement and Constancio's actual cultivation and improvements. The Supreme Court affirmed the Court of Appeals' decision recognizing an express trust relationship between the brothers, ruling that such trusts are imprescriptible when unrepudiated. The Court ordered the subdivision of the original title to reflect both parties' rightful ownership, emphasizing that the indefeasibility of Torrens titles does not preclude reconveyance actions to correct fraudulent or erroneous registrations. This decision reinforces the principle that legal title holders cannot deny equitable ownership established through express trust agreements.