City of Tanauan v. Gloria A. Millonte

Summary

The Supreme Court declared null and void a 1970 Deed of Absolute Sale whereby the City of Tanauan allegedly purchased property from the Gonzaga siblings for P30,000.00. Gloria Millonte, granddaughter of one of the original owners, successfully proved that all the Gonzaga siblings had died before the deed's execution date - one as early as 1938 and the last in 1959. The Court ruled that contracts executed after the death of contracting parties are simulated and void ab initio, producing no legal effect. Since the action to declare nullity of inexistent contracts is imprescriptible under Article 1410 of the Civil Code, Millonte could challenge the deed decades after its execution. The Court ordered cancellation of the city's title and reinstatement of the original certificate of title in the Gonzagas' names, emphasizing that allowing the city to retain ownership would result in unjust enrichment despite the property being occupied by the Tanauan Water District.