Eugenio Cagaoan v. Felix Cagaoan

Summary

Two brothers disputed ownership of the same parcel of land donated by their father through separate authentic deeds of gift. Felix Cagaoan received his deed first and recorded it with the registry, while Eugenio Cagaoan received his deed later but took immediate possession without recording due to description variance. The Supreme Court applied Article 1473 of the Civil Code by analogy, treating this as a double sale situation. The Court held that since Felix had full notice of Eugenio's claim before recording his deed, Felix was not a third person in good faith under the Mortgage Law. Eugenio's prior possession in good faith gave him superior right. The Court reversed the trial court's judgment favoring Felix and declared Eugenio the rightful owner, ordering cancellation of Felix's registration.