Manuel L. Bautista v. Margarito L. Bautista

Summary

This case involves a property ownership dispute among the Bautista siblings over a 25,518-square-meter property in San Pablo City. The siblings had established a lending business using inherited funds and acquired several properties through this business. When borrower Amelia Mendoza defaulted on loans secured by the Sta. Monica property, it was allegedly sold to Margarito alone, who obtained title in his name. The other siblings claimed co-ownership based on their business practice and use of common funds. The RTC initially ruled for partition, but the CA reversed, holding the title was indefeasible. The Supreme Court ultimately ruled that an implied resulting trust existed, finding that despite the title being in Margarito's name alone, the evidence showed the property was acquired using the siblings' common business funds with intent for beneficial co-ownership. The Court applied purchase money resulting trust principles and reinstated the RTC's partition order, emphasizing that a certificate of title does not foreclose the possibility of co-ownership or trust arrangements.