Manila Railroad Company v. Asuncion Mitchel Viuda de Sy Quia

Summary

Manila Railroad Company expropriated land in 1918 and obtained title in February 1927. A dispute arose over who should pay property taxes - the original owners (Sy Quia heirs) or the railroad company. The heirs paid taxes from 1918-1926 but refused to pay for 1927. When the City of Manila obtained judgment for the 1927 tax, the railroad company paid under protest and sued the heirs for reimbursement. The Supreme Court held that since the railroad company became owner before the 1927 tax payment deadline expired, it was obligated to pay that tax and could not recover from the heirs. However, the heirs could not recover the 1918-1926 taxes they paid since the property belonged to the intestate estate during that period and legal interest on the indemnity already compensated for their loss of possession.