Heirs of Tranquilino Labiste (Also Known As Tranquilino Laviste) Represented By: (1) Gerardo Labiste v. Heirs of Jose Labiste

Summary

This property dispute between two sets of heirs involved competing claims over Lot No. 1054 in Guadalupe, Cebu City. The Supreme Court resolved the case by recognizing an express trust relationship based on a 1923 affidavit, ruling that prescription and laches do not apply until trust repudiation occurs. While the trial court favored petitioners completely and the Court of Appeals dismissed on prescription grounds, the Supreme Court took a middle approach, granting petitioners ownership of half the property (Lot 1054-A) based on the express trust but finding that their claim to the other half had prescribed under the Old Code of Civil Procedure. The decision demonstrates the application of trust law principles in property disputes and the importance of proper legal timing in asserting claims. The case establishes that trustees cannot repudiate trusts merely by obtaining Torrens titles and that clear repudiation must be communicated to beneficiaries.